Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
2014-053
August 2014
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. Chapter 1 Important Notice, Contents, and Definitions
The Board of Directors, the Board of Supervisors, the directors, the supervisors, and the senior executives guarantee that the content of this semi-annual report is authentic, accurate, and complete, and that it has no false records, misleading statements or major omissions, and they will assume the individual and joint legal liabilities.
In addition to all the directors, other directors have personally attended this board meeting reviewing the semi-annual report.
|||||
|-|-|-|-|
|Name of director notpersonally attended|Post of director notpersonally attended|Cause for not personalattendance|Name of attorney|
|Zhang Guangliu|Director|Travel on business|Wang Li|
|Ye Jun|Director|Travel on business|Zhu Longqing|

Shenzhen SEG Co., Ltd. plans not to distribute cash dividends and bonus shares or convert the capital reserves into share capital.
Wangli, the person in charge of the Company, Liu Zhijun, the person in charge of the accounting work, and Ying Huadong, the person in charge of the accounting institution (the persons in charge of accounting) state that they guarantee authenticity, accuracy, and completeness of the financial statements in this semi-annual report.
The financial reports in this report have not been audited.
This report is prepared in two languages, i.e. Chinese language and English language. In case any different meanings arise from understanding these two versions, the version in Chinese
language will prevail.
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. CONTENTS
Chapter 1 Important Notice, Contents and Definitions ............................................................................................................................2 Chapter 2 Company Profile .....................................................................................................................................................................5 Chapter 3 Summary of Accounting Data and Financial Indexes .............................................................................................................6 Chapter 4 Report of The Board of Directors ............................................................................................................................................9 Chapter 5 Important Matters .................................................................................................................................................................. 26 Chapter 6 Changes in Share Capital and Information of Shareholders .................................................................................................. 38 Chapter 7 Relative Information of the Preferred Shares ........................................................................................................................ 42 Chapter 8 Information of Directors, Supervisors, and Senior Executives.............................................................................................. 43 Chapter 9 Financial Reports .................................................................................................................................................................. 44 Chapter 10 Reference Document List .................................................................................................................................................... 44
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. Definitions
||||
|-|-|-|
|Definition|Refers to|Description|
|This Company, the Company|Refers to|Shenzhen SEG Co., Ltd.|
|SEG Group|Refers to|Shenzhen SEG Group Co., Ltd.|
|Huakong SEG|Refers to|Shenzhen Huakong SEG Co., Ltd.|
|SEG Baohua|Refers to|Shenzhen SEG Baohua Enterprise Development Co., Ltd.|
|Xi'an SEG|Refers to|Xi’an SEG Electronics market Co., Ltd.|
|Suzhou SEG|Refers to|Suzhou SEG Electronics market Management Co., Ltd.|
|Xi'an Hairong SEG|Refers to|Xi’an Hairong SEG Electronics market Co., Ltd.|
|Nanjing SEG|Refers to|Shenzhen SEG Electronics Market Management Co., Ltd.|
|Shanghai SEG|Refers to|Shanghai SEG Electronics market Operation Management Co., Ltd.|
|Nantong SEG|Refers to|Nantong SEG Times Square Management Co., Ltd.|
|Changsha SEG|Refers to|Changsha SEG Development Co., Ltd.|
|Mellow Orange Hotel|Refers to|Shenzhen Mellow Orange Business Hotel Management Co., Ltd|
|Longgang SEG|Refers to|Shenzhen SEG Electronics Market Management Co., Ltd.|
|SEG Industry|Refers to|Shenzhen SEG Industrial Investment Co., Ltd.|
|SEG E-Commerce|Refers to|Shenzhen SEG E-Commerce Co., Ltd.|
|SEG Credit|Refers to|Shenzhen SEG Credit Co., Ltd.|
|SEG Navigations|Refers to|Shenzhen SEG GPS Scientific Navigations Co., Ltd.|
|Wujiang SEG|Refers to|Wujiang SEG Electronics market Management Co., Ltd.|
|Shunde SEG|Refers to|Fushan Shunde SEG Electronics Market Management Co., Ltd|
|Wuxi SEG|Refers to|Wuxi SEG Electronics Market Co., Ltd|
|Yantai SEG|Refers to|Yantai SEG Times Square Development Co., Ltd.|
|Zhengzhou SEG|Refers to|Zhengzhou SEG Digital Plaza Management Co., Ltd.|
|Nantong SEG Operation Company|Refers to|Nantong SEG Commercial Operation Management Co., Ltd.|
|SEG Hi-tech|Refers to|Shenzhen SEG Hi-tech Investment Co., Ltd.|
|SEG Logistics|Refers to|Shenzhen SEG Logistics Co., Ltd.|
|||An integrated information platform for market management with the|
|SEG Universal|Refers to|functions of access control management, micro-payment, query system|
|||and information distribution and so on.|
|Youhao Group|Refers to||

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Definition|Refers to|Description|
|||Xinjiang Youhao (Group) Co., Ltd.|
|||State-owned Assets Supervision and Administration Commission of|
|Shenzhen SASAC|Refers to||
|||Shenzhen Municipality|
|CSRC|Refers to|China Securities Regulatory Commission|
|||Shenzhen Securities Regulatory Bureau of China Securities Regulatory|
|Shenzhen Securities Regulatory Bureau|Refers to||
|||Commission|
|The Articles of Association|Refers to|The Articles of Association of Shenzhen SEG Co., Ltd.|
|Unless otherwise specified, the amount referred|||
||Refers to|Amount in CNY|
|to in this report|||

Chapter 2 Company Profile
I. Company Profile
|||||
|-|-|-|-|
|Stock abbreviation|Shenzhen SEG, Shenzhen SEG B|Stock code|000058, and 200058|
|Listed on|Shenzhen Stock Exchange|||
|Company name in Chinese|深圳赛格股份有限公司|||
|Company name in English (if||||
||SHENZHEN SEG CO,.LTD.|||
|any)||||
|Legal representative|Wang Li|||

II. Contact Information
||||
|-|-|-|
||Secretary of the Board of Directors|Securities affairs representative|
|Name|Zheng Dan|Zhang Xin|
||31F, Block A, Qunxing Square, Huaqiang|31F, Block A, Qunxing Square, Huaqiang|
|Contact address|||
||Road (N), Futian District, Shenzhen|Road (N), Futian District, Shenzhen|
|Phone|0755-83747939|0755-83747939|
|Fax|0755-83975237|0755-83975237|
|E-mail|segcl@segcl.com.cn|segcl@segcl.com.cn|

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. III. Other Information
1. Contact information of the Company
Whether the registered address, office address and its zip code, website, and e-mail address of the Company are changed in the report period
□ Applicable√ Not applicable
No changes of the registered address, office address and its zip code, website, and e-mail address of the Company in the report period, please refer to the annual report 2013 happen.
2. The place where the information is disclosed and prepared
Whether the place where the information is disclosed and prepared is changed in the report period
□ Applicable√ Not applicable
In the report period, the name of the newspaper designated by the Company to disclose information, the URL of the website designated by China Securities Regulatory Commission to publish the semi-annual report, and the place where the semi-annual report of the Company is prepared are not changed. For details, please refer to the annual report 2013.
3. Change of the registration information
Whether the registration information is changed in the report period
□ Applicable√ Not applicable
The time and place of registration, the registration number of the Business License for Enterprises as Legal Person, the tax
registration number, and the organization code are not changed in the report period. For details, please refer to the annual report 2013.
Chapter 3 Summary of Accounting Data and Financial Indexes I. Major Accounting Data and Financial Indexes
Are retrospective adjustments made by the Company to previous financial statements due to accounting policy changes or accounting errors?
□ Yes√ No
|||||
|-|-|-|-|
|||The same period of the|Year-on-year|
||This report period|||
|||previous year|increase/decrease|
|Operating revenue (CNY)|316,141,381.01|279,848,108.59|12.97%|
|Net profit attributable to shareholders of|37,645,842.28|39,674,066.28||
||||-5.11%|
|the listed company (CNY)||||
|Net profit attributable to shareholders of||||
|the listed company after deduction of|36,738,936.70|38,889,949.37|-5.53%|
|non-recurring gains and losses (CNY)||||

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
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|-|-|-|-|
|||The same period of the|Year-on-year|
||This report period|||
|||previous year|increase/decrease|
|Net cash flow arising from operating|-104,382,196.59|-60,697,293.78||
||||-71.97%|
|activities (CNY)||||
|Basic EPS (CNY/Share)|0.0480|0.0506|-5.14%|
|Diluted EPS (CNY/Share)|0.0480|0.0506|-5.14%|
|Weighted average ROE|2.97%|3.26%|-0.29%|
||Amount at end of the report|Amount at end of the|Year-on-year|
||period|previous year|increase/decrease|
|Total assets (CNY)|2,486,156,634.68|2,134,940,597.85|16.45%|
|Net assets attributable to shareholders of|1,287,821,734.07|1,250,224,375.08||
||||3.01%|
|the listed company (CNY)||||

II. Differences in Accounting Data under Chinese and Overseas Accounting Standards
1. Differences in net profit and net assets reported in the financial reports disclosed under international accounting standards and Chinese accounting standards
□ Applicable√ Not applicable
In the report period, theCompany’s net profits and net assets have no differences in the financial reports disclosed based on both the international and the Chinese accounting standards.
2. Differences in net profits and net assets reported in the financial reports disclosed under overseas accounting standards and Chinese accounting standards
□ Applicable√ Not applicable
In the report period, theCompany’s net profits and net assets have no differences in the financial reports disclosed based on both the overseas and the Chinese accounting standards.
III. Items and amount of non-recurring gains and losses:
√ Applicable□ Not applicable
Unit: CNY
||||
|-|-|-|
|Item|Amount|Remarks|
|Gains and losses on disposal of non-current assets|15,288.75|Gains on disposal of fixed assets|
|(including the write-off of assets depreciation reserves)|||
||693,467.78|The service industry development fund from theBureau of Finance of Nantong, the Economy,and the special funds for setting up online SEGelectronics market and SEG E-Commerceplatform from the Trade and Information|
|Government subsidies recorded into current gains and|||
|losses (except those closely related with corporate|||
|business and enjoyed according to national standards or|||
|certain quota)|||

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
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|-|-|-|
|Item|Amount|Remarks|
|||Commission of Shenzhen were acquired.|
|Transferred-back impairment provision for accounts|11,420.00||
|receivable, for which separate impairment tests are|||
|carried out|||
|Other non-operating income and expenses except the|401,613.38|Liquidated damages from defaulting tenantswere collected.|
|above-mentioned items|||
|Less: Amount of income tax affected|52,102.04||
|Amount of influence of minority shareholders’|162,782.29||
|equity (after tax)|||
|Total|906,905.58|--|

Please explain the reasons why 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.
□ 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.
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. Chapter 4 Report of the Board of Directors
I. Overview
In the context of declining macro-economic growth in China, the Company in the report period adhered to the operation concept of―stabilizing the foundation, focusing on priorities, and changing developmentpaths‖, continued pushing transformation and upgrade of strategic business, constantly intensified independent innovation, and proactively explored a wide range of business such as electronics markets, e-commerce, small loans, retail terminals, and etc.
Facing shrinking electronics market industry, the Company actively adjusted and added new business and introduced different types of business. With commercialization of the Internet, the Company enthusiastically explored the right way to achieve Online To Offline (O2O) between the electronics market industry and e-commerce. In the report period, the Company developed the project―SEG FactoryStore‖, trying to create a compound business model of―physical store+ e-commerce+channel‖ through establishment of an e-commerce platform, extension of wholesale channels and sale in physical stores. In the second half year of 2013, the Company redefined its e-commerce as cross-border e-commerce, supply chain business and developed a SEG network operation platform. By using the resources of physical SEG electronics markets, this platform can provide tenants with all-around, one-stop supply chain service. In the report period, SEG Credit actively explored the financing channels and achieved stable growth of business and loan quality. The retail terminal business of the Company tends towards being diversified and differentiated. The self-built Nantong SEG Times Square will open its sales office to the public on June 28, 2014, and the investment attraction and sales of this project are now in full swing.
In the report period, the Company achieved an operating income of RMB 316.14 million, with a year-on-year increase of12.97%, its total profits reached RMB 70.45 million, with a year-on-year increase of7.51%, and its net profits achieved RMB 37.65 million, with a year-on-year decrease of5.11%.
II. Analysis of Main Business
Overview
Main business of the Company includes development and operation of specialized electronics market and
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. supporting projects, property lease service, IT product retail terminal service, e-commerce and value-added service of small loans.
(1) Electronics market business
In 2014, the new technical means and the new commercial models focused on the Internet and the mobile Internet are reconstructing the traditional commercial rules of the industry of electronics markets, which changes consumers and the whole traditional retailing industry. Facing the deteriorating industry environment and intense competition, the Company strategically invested more on the research of a new model for the electronics market business and fully exerted the advantage of resources sharing in the chain markets across the country. At the same time, the Company strived to further explore new business growth models while ensuring stable market operation. In the report period, the Company focused on site investigation of the feasibility of promoting electronics market business in third- and fourth-tier cities. Wuxi SEG Electronics Market was officially opened in March 2014 and Zhengzhou SEG Digital Plaza has been approved by the Board of Directors and stepped into the stage of preparation.
In the first half year of 2014, on the premise of stable operation and―zeroaccident‖ in safety, the Company kept improving its market operation and management innovation capability and achieved good outcomes despite of the gloomy industry environment and fierce channel competition.
Various electronics markets became more and more competent in capturing the market hot spots and carrying out operation innovation and value-added service. Through dauntless and persistent efforts, the Company developed new business models, like―SEG FactoryStore‖ and so on.
In the report period, the Company achieved an operation income of RMB 159.24 million from the electronics market business, with a year-on-year increase of8.4%. Its total profits reached RMB 50.72 million, with a year-on-year decrease of6.59%, which was mainly caused by shrinking of the profits from the fee of entrusted management over electronics markets and from the brand use fee.
(2) Property lease
In the first half year of 2014, the property operation of the Company's subsidiary SEG Baohua was relatively stable. Despite of the depressing property lease environment in Huaqiangbei district and the vacancy rate rise and dramatic rent drop of the office buildings around, the Company kept the occupancy rate to99% and above, and
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. maintained the highest rent among the office buildings in Huaqiangbei district by improving the service quality and taking effective measures.
In the report period, the Company's property lease service yielded a total operation income of RMB 34.94 million, with a year-on-year increase of0.26%, and a total profit of RMB 5.96 million, with a year-on-year increase of12.03%, the important cause of increase is the Company strengthened the control of costs and expenses in this report period.
(3) Retail terminal business of IT products
SEG Industry, a wholly-owned subsidiary of the Company, is mainly engaged in the retail terminal business of IT products. In the report period, the Company achieved an operating income of RMB 35.84 million from the channel service, with a-year-on-year increase of184.22%. This increase was mainly caused by the new mobile phone distribution and telecommunication distribution services.
(4) E-Commerce
In the second half year of 2013, the Company re-positioned its e-commerce business and developed an e-commerce platform which can provide tenants with all-around, one-stop supply chain services by using the resources of physical SEG electronics markets. At present the main business of SEG e-Commerce is the supply chain business and the SEG network operation platform. In the report period, the Company's e-commerce business yielded a total operation income of RMB 23.37 million, with a year-on-year increase of11028.57%, and a total profit of RMB 0.65 million, turning losses into profits compared with the same period of last year.
(5) Small credit
In the report period, facing capital shortage, SEG Credit invested its capital mainly on the projects with low risks and high benefits and achieved stable growth of business and improvement of loan quality. In the report period, the Company's small microcredit business yielded a total operation income of RMB 21.08 million, with a year-on-year increase of56.61%, and a total profit of RMB 12.86 million, with a year-on-year increase of59.75%. The important cause of increase is both the scale of loan and income of loan interests rose in this report period. Year-on-year changes of the main financial data
Unit: CNY
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
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|-|-|-|-|-|
||Amount of the|The same period of|Year-on-year||
|||||Reason for change|
||report period|the previous year|increase/decrease||
|Operating income|316,141,381.01|279,848,108.59|12.97%||
|Operating cost|248,349,208.37|212,671,918.66|16.78%||
||1,002,320.62|1,290,509.28||Development of the channel business of the|
|||||investment enterprise SEG Industry grows slower|
|Sale expenses|||-22.33%|than the same period of the previous year. The|
|||||labor cost paid to the third party and the fees for|
|||||storage and transportation decrease.|
|Management|15,637,568.42|17,031,998.58|||
||||-8.19%||
|expenses|||||
||388,862.46|-5,163,964.97||In the report period, the Company issues|
|Financing cost|||-107.53%|short-term financing bills. The expense on loan|
|||||interest for the increasing bank loan accrues.|
||18,633,100.05|17,245,618.33||In the report period, Wujiang SEG and Changsha|
|Income tax|||8.05%|SEG remedy the previous annual losses. The|
|||||corporate income tax is levied from this period.|
|Investment in|||||
|research and|759,513.21|756,251.66|0.43%||
|development|||||
|Net cash flow|-104,382,196.59|-60,697,293.78|||
|||||In the report period, the expense on construction|
|arising from|||-71.97%||
|||||of Nantong SEG Times Square increases.|
|operating activities|||||
|Net cash flow|-30,287,254.56|37,126,713.65||In the report period, the investment for bank|
|arising from|||-181.58%|financing increases, compared with the same|
|investing activities||||period of the previous year.|
|Net cash flow|428,415,242.53|-7,672,883.90||In the report period, the Company issues|
|arising from||||short-term financing bills. The bank loan|
|financing activities||||increases.|
||293,745,798.77|-31,243,764.41||In the report period, the cash flow|
|Net increase in cash||||comprehensively influenced by the operation|
||||1,040.17%||
|and cash equivalents||||activities, the investment activities, and the|
|||||financing activities increases.|

In the report period, the profit composition or profit source of the Company has great changes.
□ Applicable√ Not applicable
In the report period, the profit composition or profit source of the Company has not changed.
The situation that the future development and planning disclosed in the publicly disclosed documents such as the prospectus, the
collection instruction and the assets reorganization report continues into the report period.
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.□ Applicable√ Not applicable
The Company reviews and summarizes how the previously disclosed operation plan is progressed in the report period. In the first half year of 2014, the Company adheres to the operation concept of―stabilizing the foundation, focusing on priorities, and changing developmentpaths‖, and focuses on the following three aspects while sticking to the planned operating policy:
(I) Making great efforts in intensifying basic management, the Company continues with its innovation management, benchmarking management, and internal control management. By exerting the constant incentive mechanism on the holding companies, the Company enhances talent introduction and cultivation.
(II) Constructing, pushing, and implementing the key projects:
1. In the report period, Wuxi SEG Electronics Market opened formally in March while the project in Zhengzhou has been approved by the Board of Directors and has stepped into the stage of preparation.
2. The Company continues extending the projects of commercial properties, proceeds site investigations in multiple candidate plots, and participates the open tendering for investor of a plot maturation project in Yantai. In order to accelerate development and sale of Nantong SEG Times Square, in the first half year, the Company invests in and establishes Nantong SEG Commercial Operation Management Co., Ltd. The marketing center of Nantong SEG Times Square has been opened formally on June 28.
3. On May 14, 2014, the Company successfully issued the first stage of short-term financing bills in 2014 to collect capital and offer good capital guaranty for development of the businesses.
(III) Shifting the development of electronics market business to tier-3 and tier-4 cities: The Company focused on site investigation of the feasibility of promoting electronics market business in third- and fourth-tier cities. The Company proactively explores new business growth models and develops the new operation model of―SEG FactoryStore‖. In the second half year of 2013, the businesses of e-commerce re-position the original platform. This platform is backed up with resources of the physical SEG electronics markets and provides the merchants with all-around and one-stop service of supply chain. Then, by improving the network platform of―online SEG electronicsmarkets‖, the website is transformed from the information platform into the trading platform. In the first half year of 2014, the businesses of e-commerce are operated based on the transformed operation model. Currently, the Company is normally operated and has turned losses into gains, making some profits compared
with the same period of the previous year.
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. III. Constitutes of Main Business
Unit: CNY
||||||||
|-|-|-|-|-|-|-|
|||||Year-on-year|Year-on-year|Year-on-year|
||Total operating|||increase/decrease|increase/decrease|increase/decrease|
|||Operating cost|Gross profit rate||||
||income|||of the operating|of the operation|of the gross profit|
|||||income|cost|rate|
|Classified by industry|||||||
|Electronics|||||||
|markets and|||||||
||194,173,058.54|131,625,355.81|32.21%|6.84%|13.35%|-3.89%|
|property lease|||||||
|businesses|||||||
|Trade|88,254,558.24|86,955,143.45|1.47%|0.58%|1.46%|-0.86%|
|Finance|21,075,367.00|2,008,653.30|90.47%|56.58%|72.67%|-0.89%|
|Classified by product|||||||
|Not applicable|||||||
|Region|||||||
|Shenzhen|237,334,729.44|166,166,279.18|29.99%|11.65%|14.77%|-1.90%|
|Xi’an|27,278,719.61|19,328,367.98|29.14%|10.21%|6.61%|2.38%|
|Suzhou|27,611,202.83|22,521,217.57|18.43%|19.91%|19.49%|0.28%|
|Changsha|14,735,844.58|12,332,514.63|16.31%|1.89%|2.77%|-0.71%|
|Nanjing|21,910,967.04|20,467,953.95|6.59%|28.19%|28.12%|0.05%|
|Foshan|1,123,559.89|1,032,615.18|8.09%|7.72%|-57.73%|142.32%|
|Wuxi|1,684,201.54|2,055,411.11|-22.04%||||
|Nanning|5,537,523.08|4,444,848.77|19.73%||||
|Nantong|||0.00%||||

IV. Analysis of the Core Competitiveness
Currently, the main businesses of the Company are development, operation, and value-added service of the electronics markets and their supporting projects, and property lease service, IT product retail terminal, e-commerce and small credit.
Up to June 30, 2014, the Company has opened 25 physical SEG electronics markets (SEG digital plazas) in the whole country, forming a profession electronics market chain system which covers the regions of Pearl River
Delta and Yangtze River Delta and radiates into the whole country. After 26 years of development,―SEG
electronicsmarket‖ has combined self-built IT complex with leasing and entrusted management, market service
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. with financial value-added service, professional market with boutique store, business super retails, SEG factory store, and channel distribution.―SEG electronicsmarket‖ has become the largest comprehensive professional electronics market in China and even Asia which covers the electronic components and device, digital IT products, and telecommunication products, enjoying rather high brand influence both at home and abroad.
In the report period, Shenzhen SEG Electronics Market is awarded again the title of―Top Ten Flagship Markets ofChina’s Professional ElectronicsMarket‖ in―The
14th
Annual Meeting ofChina’s Professional ElectronicsMarket‖ which is instructed by Operation Monitoring and Coordination Bureau of Ministry of Industry and Information Technology of thePeople’s Republic of China and hosted by China Electronics Chamber of Commerce. Meanwhile, Liu Zhijun, the general manager of the Company, is awarded the title of―Operation Master ofChina’s Professional Electronics Market in2013‖.
V. Analysis of the Investment Situation
1. External equity investment
(1) External investment
√ Applicable□ Not applicable
||||
|-|-|-|
|External Investment of the Company|||
|Investment amount in the report period|Investment amount in the same period of||
|||Increase/decrease (%)|
|(CNY)|the previous year (CNY)||
|83,185,191.97|60,776,000.00|136.87%|
|Information about the invested companies|||
|||Equity percentage of the listed company|
|Company name|Main business||
|||out of the invested company|
||Development and operation of real estate,||
|Nantong SEG Times Square Development|leasing and sale of self-owned houses,||
|||100.00%|
|Co., Ltd.|property management, sale of electronic||
||products||

Additional remarks:
1. According to the decision made in the
7th
special meeting of the
6th
Board, the Company plans to invest RMB 5 million as the capital base for registration to set up―Nantong SEG Commercial Operation Management Co.,Ltd.‖
with sole proprietorship, which mainly dials in commercial operation and property management of Nantong SEG
Times Square. Since this company is registered under the subscribed registration system, until the end of the
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. report period, this investment item has not happened yet.
2. According to the decision made in the
10th
special meeting of the
6th
Board and the
1st
shareholder special meeting in 2014, the Company plans to invest in the plot maturation and project construction of Nantong SEG Times Square. Together with Shandong Huanghai Pearl Group Co., Ltd., the investment will go to RMB 100 million as the registration capital for establishment of―Yantai SEG Times Square Development Co.,Ltd.‖ in Yantai city. The Company will invest RMB 90 million and hold90% of the shares. On April 28, 2014, the Company participated the open tendering for investor of the plot maturation project but failed. The failure to win the qualification of investor for the plot maturation project yields quite large impact on production and operation of the Company. In the report period, the Company has invested RMB 45 million as deposit for registration. However, due to the failure, this investment item has been taken back within the report period.
3. According to the decision made in the
12th
special meeting of the
6th
Board, the Company invests with Henan Guanlian Engineering Co., Ltd. and Zhengzhou Coal Research Institute Co., Ltd. to set up the joint venture―Zhengzhou SEG Digital Plaza Management Co.,Ltd.‖ and jointly invest in the project of Zhengzhou SEG Digital Plaza. The Company invests RMB 3.06 million out of RMB 6 million registration capital and holds51% of the shares. Up till the end of the report period, this project is still at the stage of preparation, so this investment item has not happened yet.
(2) Equity of the financing enterprises held by the Company
□ Applicable√ Not applicable
In the report period, the Company does not hold any equities of the financing enterprises.
(3) Security investment
√ Applicable□ Not applicable
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||||Shares held|||||Gains and|||
|||Short form|The initial||Initial|Shares held|Final|||||
|Stock|Stock|||at period||||Ending book|losses in the|Accountin|Source|
|||of the|investment cost||shareholding|at period|shareholding|||||
|type|code|||beginning||||value (CNY)|report period|g item|of shares|
|||security|(CNY)||percentage|end (Share)|percentage|||||
|||||(Share)|||||(CNY)|||
|||||||||||Financial||
|Share|600778|Youhao|90,405.00|60,683|0.04%|60,683|0.04%|465,438.61|0.00|assets|Initial|
|||Group||||||||available|share|
|||||||||||for sale||
|||||||||||Long-term||
|||Huakong|||||||||Initial|
|Share|000068||279,307,046.38|201,345,033|22.45%|201,345,033|22.45%|101,039,586.02|-1,808,722.02|equity||
|||SEG|||||||||share|
|||||||||||investment||
|Total|||279,397,451.38|201,405,716|--|201,405,716|--|101,505,024.63|-1,808,722.02|--|--|

 Equity of other listed companies held by the Company
□ Applicable√ Not applicable
In the report period, the Company does not hold any equities of other listed companies.
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. 2. Entrusted financing, investment of derived products, and entrusted loaning
(1) Entrusted financing
√ Applicable□ Not applicable
Unit: CNY ten thousand
|||||||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||eetsurtfoemaN||pihsnoitalerdetaicossA||tonronoitcasnartdetcennoC||epyTtcudorP|detsurtnefotnuomA|gnicnanif||etaDtratS||etaDdnE||noitamrifnocnoitarenumeR|dohtem||nidenrutertnuomalapicnirP|doireptropereht|fi(noisivorptnemriapmI|)yna||emocnidetcejorP|tnuomaniagdnassollautcA|doireptroperehtni|
|Bank of China||N/A||No||AMZYJZT-LP13159||600||27.08.13||10.01.14||Float income|||600|||0||10.95||10.95||
|Bank of China||N/A||No||AMZYJF||4,000||05.11.13||16.01.14||Float income|||4,000|||0||39.45||39.45||
|Agricultural Bank||||||||||||||||||||||||||
|||N/A||No||FP7215663600||800||24.12.13||24.01.14||Constant return|||800|||0||4.21||4.21||
|of China||||||||||||||||||||||||||
|Bank of China||N/A||No||AMZYPW (185 days)||1,300||26.07.13||27.01.14||Float income|||1,300|||0||32.95||32.95||
|Industrial and||||||||||||||||||||||||||
|Commercial Bank||N/A||No||QER13112||300||17.10.13||28.01.14||Float income|||300|||0||4.23||4.23||
|of China||||||||||||||||||||||||||
|Bank of China||N/A||No||AMJFZX||1,500||31.01.13||31.01.14||Float income|||1,500|||0||70.5||70.5||
|Bank of China||N/A||No||AMZYJZT-LP13229||5,000||01.11.13||07.02.14||Float income|||5,000|||0||66.45||66.45||
|Bank of China||N/A||No||AMZYJZT-LP13242||7,000||15.11.13||07.02.14||Float income|||7,000|||0||82.96||82.96||
|China Merchants||||||||||||||||||||||||||
|||N/A||No||51385||100||27.12.13||10.02.14||Float income|||100|||0||0.74||0.74||
|Bank||||||||||||||||||||||||||
|Industrial and||||||||||||||||||||||||||
|Commercial Bank||N/A||No||3059BBX||2,000||20.12.13||17.02.14||Float income|||2,000|||0||19.4||19.4||
|of China||||||||||||||||||||||||||
|Bank of China||N/A||No||AMZYJZT-LP13224||8,000||24.10.13||21.02.14||Float income|||8,000|||0||134.1||134.1||
|Bank of China||N/A||No||AMZYPW||1,500||15.03.13||14.03.14||Float income|||1,500|||0||65.82||65.82||
|Bank of China||N/A||No||ZYJF||1,000||24.12.13||20.03.14||Float income|||1,000|||0||13.19||13.19||
|Bank of China||N/A||No||AMZYZH14164||400||18.11.13||15.05.14||Float income|||400|||0||10.24||10.24||
|Bank of China||N/A||No||AMZYZH14129||1,000||17.10.13||29.06.14||Float income|||1,000|||0||36.33||36.33||
|Bank of China||N/A||No||AMZYJF||1,000||05.11.13||08.07.14||Float income||||||0||0||0||
|Ping An Bank||N/A||No||AGS131754-001||3,000||15.11.13||15.01.14||Float income|||3,000|||0||17.9||17.9||
|Industrial and||||||||||||||Rolling type||||||||||||
|Commercial Bank||N/A||No||1001RSYH||30||11.06.14||31.12.14||product, without||||||0||||||
|of China||||||||||||||fixed end date||||||||||||
|Industrial and||||||||||||||Rolling type||||||||||||
|Commercial Bank||N/A||No||1001RSYH||30||11.06.14||31.12.14||product, without||||||0||||||
|of China||||||||||||||fixed end date||||||||||||

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
|||||||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||eetsurtfoemaN||pihsnoitalerdetaicossA||tonronoitcasnartdetcennoC||epyTtcudorP|detsurtnefotnuomA|gnicnanif||etaDtratS||etaDdnE||noitamrifnocnoitarenumeR|dohtem||nidenrutertnuomalapicnirP|doireptropereht|fi(noisivorptnemriapmI|)yna||emocnidetcejorP|tnuomaniagdnassollautcA|doireptroperehtni|
|Industrial and||||||||||||||Rolling type||||||||||||
|Commercial Bank||N/A||No||1001RSYH||30||11.06.14||31.12.14||product, without||||||0||||||
|of China||||||||||||||fixed end date||||||||||||
|Industrial and||||||||||||||Rolling type||||||||||||
|Commercial Bank||N/A||No||1001RSYH||30||11.06.14||31.12.14||product, without||||||0||||||
|of China||||||||||||||fixed end date||||||||||||
|Industrial and||||||||||||||Rolling type||||||||||||
|Commercial Bank||N/A||No||1001RSYH||30||11.06.14||31.12.14||product, without||||||0||||||
|of China||||||||||||||fixed end date||||||||||||
|Industrial and||||||||||||||Rolling type||||||||||||
|Commercial Bank||N/A||No||1001RSYH||30||11.06.14||31.12.14||product, without||||||0||||||
|of China||||||||||||||fixed end date||||||||||||
|Industrial and||||||||||||||Rolling type||||||||||||
|Commercial Bank||N/A||No||1001RSYH||30||11.06.14||31.12.14||product, without||||||0||||||
|of China||||||||||||||fixed end date||||||||||||
|Industrial and||||||||||||||||||||||||||
|Commercial Bank||N/A||No||3059BBX||1,500||02.01.14||24.03.14||Float income|||1,500|||0||20.21||20.21||
|of China||||||||||||||||||||||||||
|Industrial and||||||||||||||||||||||||||
|Commercial Bank||N/A||No||3059BBX||2,000||05.03.14||19.05.14||Float income|||2,000|||0||23.32||23.32||
|of China||||||||||||||||||||||||||
|Industrial and||||||||||||||||||||||||||
|Commercial Bank||N/A||No||3059BBX||3,000||28.05.14||10.12.14||Float income||||||0||0||0||
|of China||||||||||||||||||||||||||
|Industrial and||||||||||||||||||||||||||
|Commercial Bank||N/A||No||3059BBX||5,000||11.06.14||22.12.14||Float income||||||0||0||0||
|of China||||||||||||||||||||||||||
|Industrial and||||||||||||||||||||||||||
|Commercial Bank||N/A||No||QER14006||800||24.01.14||03.04.14||Float income|||800|||0||8.77||8.77||
|of China||||||||||||||||||||||||||
|||||||2014041||||||||||||||||||||
|Bank of China||N/A||No||||1,300||27.01.14||31.12.14||Float income||||||0||0||0||
|||||||FP7218406200||||||||||||||||||||
|||||||Win-win 2014 with||||||||||||||||||||
|Industrial and||||||||||||||||||||||||||
|||||||ICBC Financial||||||||||||||||||||
|Commercial Bank||N/A||No||||2,000||29.01.14||06.03.14||Float income|||2,000|||0||11.24||11.24||
|||||||Management Services||||||||||||||||||||
|of China||||||||||||||||||||||||||
|||||||QER14009 (36 days)||||||||||||||||||||
|Industrial and||N/A||No||4009ZSTC||2,000||12.03.14||22.09.14||Float income||||||0||0||0||

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
|||||||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||eetsurtfoemaN||pihsnoitalerdetaicossA||tonronoitcasnartdetcennoC||epyTtcudorP|detsurtnefotnuomA|gnicnanif||etaDtratS||etaDdnE||noitamrifnocnoitarenumeR|dohtem||nidenrutertnuomalapicnirP|doireptropereht|fi(noisivorptnemriapmI|)yna||emocnidetcejorP|tnuomaniagdnassollautcA|doireptroperehtni|
|Commercial Bank||||||||||||||||||||||||||
|of China||||||||||||||||||||||||||
|Bank of China||N/A||No||AMZYPW||1,500||20.03.14||16.03.15||Float income||||||0||0||0||
|Industrial and||||||||||||||||||||||||||
|Commercial Bank||N/A||No||4003ZSTA||1,200||08.04.14||27.05.14||Float income|||1,200|||0||8.22||8.22||
|of China||||||||||||||||||||||||||
|Industrial and||||||||||||||||||||||||||
|Commercial Bank||N/A||No||FP7213670900||1,200||30.05.14||12.06.14||Float income|||1,200|||0||1.52||1.52||
|of China||||||||||||||||||||||||||
|Bank of China||N/A||No||AMZYPW||1,100||01.07.14||29.06.15||Float income||||||0||0||0||
|Bank of China||N/A||No||AMZYJF||600||23.01.14||30.06.14||Float income|||600|||0||14.8||14.8||
|Bank of China||N/A||No||AMZYJZT||400||20.05.14||10.10.14||Float income||||||0||0||0||
|Bank of China||N/A||No||CNYAQKF||1,000||19.02.14||28.02.14||Float income|||1,000|||0||0.91||0.91||
|Industrial and||||||||||||||||||||||||||
|Commercial Bank||N/A||No||ZQL180||77.9||24.06.14||24.12.14||Float income||||||0||0||0||
|of China||||||||||||||||||||||||||
|Industrial and||||||||||||||||||||||||||
|Commercial Bank||N/A||No||3059BBX||500||17.03.14||28.04.14||Float income|||500|||0||2.24||2.24||
|of China||||||||||||||||||||||||||
|Industrial and||||||||||||||||||||||||||
|Commercial Bank||N/A||No||FP7218438200||500||06.05.14||16.06.14||Float income|||500|||0||2.07||2.07||
|of China||||||||||||||||||||||||||
|Industrial and||||||||||||||||||||||||||
|Commercial Bank||N/A||No||4024BBXA||500||25.06.14||04.08.14||Float income||||||0||0||0||
|of China||||||||||||||||||||||||||
|China||||||||||||||||||||||||||
|||N/A||No||Qianyuan||120||16.05.14||20.06.14||Float income|||120|||0||0.48||0.48||
|Construction Bank||||||||||||||||||||||||||
|China Merchants||||||||||||||||||||||||||
|||N/A||No||LJSY54031||590||10.01.14||11.03.14||Float income|||590|||0||5.14||5.14||
|Bank||||||||||||||||||||||||||
|China Merchants||||||||||||||||||||||||||
|||N/A||No||LJSY51392||100||14.02.14||15.04.14||Float income|||100|||0||0.82||0.82||
|Bank||||||||||||||||||||||||||
|China Merchants||||||||||||||||||||||||||
|||N/A||No||52072||80||13.03.14||17.06.14||Guaranteed|||80|||0||1.12||1.12||
|Bank||||||||||||||||||||||||||
|||||||||||||||minimum income||||||||||||
|China Merchants||||||||||||||Guaranteed||||||||||||
|||N/A||No||52078||1,000||27.03.14||23.06.14|||||1,000|||0||11.3||11.3||
|Bank||||||||||||||minimum income||||||||||||

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
|||||||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||eetsurtfoemaN||pihsnoitalerdetaicossA||tonronoitcasnartdetcennoC||epyTtcudorP|detsurtnefotnuomA|gnicnanif||etaDtratS||etaDdnE||noitamrifnocnoitarenumeR|dohtem||nidenrutertnuomalapicnirP|doireptropereht|fi(noisivorptnemriapmI|)yna||emocnidetcejorP|tnuomaniagdnassollautcA|doireptroperehtni|
|China Merchants||||||||||||||Guaranteed||||||||||||
|||N/A||No||52093||350||17.04.14||02.07.14||||||||0||0||0||
|Bank||||||||||||||minimum income||||||||||||
|China||||||||||||||||||||||||||
|||N/A||No||Qianyuan||100||11.03.14||12.05.14||Float income|||100|||0||0.82||0.82||
|Construction Bank||||||||||||||||||||||||||
|Bank of China||N/A||No||AMZYJZT-LP||500||07.03.14||06.05.14||Float income|||500|||0||4.23||4.23||
|Bank of China||N/A||No||AMZYJZT-LPA14126||500||09.05.14||02.09.14||Float income||||||0||0||0||
|Bank of China||N/A||No||AMZYJZT-LPA14165||1,200||06.06.14||08.08.14||Float income||||||0||0||0||
|Bank of China||N/A||No||AMZYJZT-LPA14173||100||13.06.14||15.07.14||Float income||||||0||0||||
|Bank of China||N/A||No||AMZYJZT-LP||500||11.04.14||04.07.14||Float income||||||0||0||||
|Bank of China||N/A||No||AMZYPWHQ||300||09.06.14||09.09.14||Float income||||||0||0||||
|Bank of China||N/A||No||AMZYJZT-LP||300||27.06.14||23.09.14||Float income||||||0||0||||
|Bank of China||N/A||No||CNYAQKF||100||11.03.14||10.04.14||Float income|||100|||0||0.28||0.28||
|Bank of China||N/A||No||AMZYPWHQ||1,800||13.01.14||10.03.14||Float income|||1,800|||0||14.64||14.64||
|Bank of China||N/A||No||AMZYPWHQ||4,000||20.01.14||20.03.14||Float income|||4,000|||0||34.27||34.27||
|Bank of China||N/A||No||AMZYPWHQ||2,000||23.01.14||20.03.14||Float income|||2,000|||0||16.26||16.26||
|Bank of China||N/A||No||AMZYPWHQ||1,000||27.01.14||03.03.14||Float income|||1,000|||0||5.03||5.03||
|Bank of China||N/A||No||AMZYPWHQ||12,000||17.02.14||24.03.14||Float income|||12,000|||0||57.53||57.53||
|Bank of China||N/A||No||AMZYPWHQ||8,000||25.02.14||04.04.14||Float income|||8,000|||0||43.31||43.31||
|Bank of China||N/A||No||CNYAQKF||12,000||25.03.14||15.04.14||Float income|||12,000|||0||23.2||23.2||
|Bank of China||N/A||No||CNYAQKF||6,000||03.04.14||30.04.14||Float income|||6,000|||0||17.04||17.04||
|Bank of China||N/A||No||GSRJYL01||4,500||04.04.14||21.04.14||Float income|||4,500|||0||5.87||5.87||
|Bank of China||N/A||No||GSRJYL01||1,500||04.04.14||25.04.14||Float income|||1,500|||0||2.42||2.42||
|Bank of China||N/A||No||GSRJYL01||8,000||04.04.14||05.05.14||Float income|||8,000|||0||18.41||18.41||
|Bank of China||N/A||No||CNYAQKF||12,000||16.04.14||30.04.14||Float income|||12,000|||0||13.62||13.62||
|Bank of China||N/A||No||GSRJYL01||13,500||30.04.14||05.05.14||Float income|||13,500|||0||5.18||5.18||
|Bank of China||N/A||No||AMZYJZT||21,000||05.05.14||10.06.14||Float income|||21,000|||0||86.59||86.59||
|Bank of China||N/A||No||GSRJYL01||16,800||21.05.14||30.06.14||Float income|||16,800|||0||50.26||50.26||
|Bank of China||N/A||No||GSRJYL01||2,800||23.05.14||30.06.14||Float income|||2,800|||0||8.16||8.16||
|Bank of||||||||||||||||||||||||||
|||N/A||No||Win to Fortune||500||26.05.14||09.06.14||Float income|||500|||0||0.48||0.48||
|Communications||||||||||||||||||||||||||
|||||||||||||||Rolling type||||||||||||
|Bank of||||||||||||||||||||||||||
|||N/A||No||Win to Fortune||2,000||26.05.14||31.12.14||product, no fixed||||||0||||||
|Communications||||||||||||||||||||||||||
|||||||||||||||end date||||||||||||

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
|||||||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||eetsurtfoemaN||pihsnoitalerdetaicossA||tonronoitcasnartdetcennoC||epyTtcudorP|detsurtnefotnuomA|gnicnanif||etaDtratS||etaDdnE||noitamrifnocnoitarenumeR|dohtem||nidenrutertnuomalapicnirP|doireptropereht|fi(noisivorptnemriapmI|)yna||emocnidetcejorP|tnuomaniagdnassollautcA|doireptroperehtni|
|Shanghai Pudong||||||||||||||||||||||||||
|||||||LI DUO DUO, Phase||||||||||||||||||||
|Development||N/A||No||||8,000||12.06.14||17.07.14||Float income||||||0||0||0||
|||||||111||||||||||||||||||||
|Bank||||||||||||||||||||||||||
|Bank of China||N/A||No||GSRJYL01||6,500||12.06.14||30.06.14||Float income|||6,500|||0||23.93||23.93||
|Bank of Beijing||N/A||No||GUB1408003||13,000||12.06.14||12.12.14||Float income||||||0||0||0||
|The Agricultural||||||||||||||||||||||||||
|||N/A||No||BFDG||5,000||13.06.14||30.06.14||Float income|||5,000|||0||11.18||11.18||
|Bank of China||||||||||||||||||||||||||
|The Agricultural||||||||||||||||||||||||||
|||N/A||No||BFDG||3,100||18.06.14||30.06.14||Float income|||3,100|||0||4.89||4.89||
|Bank of China||||||||||||||||||||||||||
|Bank of China||N/A||No||GSRJYL01||2,400||25.06.14||30.06.14||Float income|||2,400|||0||0.92||0.92||
|Total||||||||238,127.9||--||--||--|||195,790|||||1,170.1||1,170.1||
|Capital sources of entrusted financing||||||||Self-owned capital||||||||||||||||||
|Accumulated amount of overdue principal and income||||||||0||||||||||||||||||
|The date when the approval of the entrusted financing is||||||||||||||||||||||||||
|||||||||01.03.14||||||||||||||||||
|disclosed in notice from the Board of Directors (if any)||||||||||||||||||||||||||
|The date when the approval of the entrusted financing is||||||||||||||||||||||||||
|||||||||12.04.14||||||||||||||||||
|disclosed in notice from the Board of Shareholders (if any)||||||||||||||||||||||||||

(2) Investment of derived products
□ Applicable√ Not applicable
In the report period, the Company does not invest in the derived products.
(3) Entrusted loaning
□ Applicable√ Not applicable
In the report period, the Company has no entrusted loaning.
3. Use of the collected capital
(1) General information of the use of the collected capital
Applicable□√ Not applicable
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. (2) Promise of collecting capital for certain projects
□ Applicable√ Not applicable
(3) Collect capital to change projects
□ Applicable√ Not applicable
In the report period, the Company does not collect capital to change projects.
(4) Collect capital to invest in projects
□ Applicable√ Not applicable
In the report period, the Company does not collect capital to the invest in projects.
4. Analysis of the main subsidiaries and joint stock companies
√ Applicable□ Not applicable
List of major subsidiaries and shareholding companies
Unit: CNY
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Company|Ownership||Major products or|Registered||||||
|||Industry|||Total assets|Net assets|Total operating|Operating profit|Net profit|
|name|Type||services|Capital||||||
||||||||income|||
||||Operation and|||||||
|||Electronics|management of|||||||
|Wujiang SEG|Subsidiary||professional|3,000,000.00|21,590,515.21|3,505,379.71|7,221,322.15|925,309.04|398,635.72|
|||market||||||||
||||electronics|||||||
||||market|||||||
||||Operation and|||||||
|||Electronics|management of|||||||
|Wuxi SEG|Subsidiary||professional|3,000,000.00|16,644,161.32|2,675,003.58|1,684,201.54|-173,429.96|-165,439.82|
|||market||||||||
||||electronics|||||||
||||market|||||||
|||Development|Development and|||||||
|Nantong SEG|Subsidiary|and operation|operation of real|30,000,000.00|218,187,919.37|27,412,907.07|0.00|-472,720.72|26,026.13|
|||of real estate|estate|||||||
|||Development|Development and|||||||
|Yantai SEG|Subsidiary|and operation|operation of real|45,000,000.00|0.00|0.00|0.00|0.00|0.00|
|||of real estate|estate|||||||
||||Operation and|||||||
|||Electronics|management of|||||||
|Nanning SEG|Subsidiary||professional|8,000,000.00|15,260,858.56|7,987,877.03|5,537,523.08|963,788.11|971,028.46|
|||market||||||||
||||electronics|||||||
||||market|||||||
||||Operation and|||||||
|||Electronics|management of|||||||
|Shunde SEG|Subsidiary||professional|6,000,000.00|6,030,952.32|3,107,847.59|1,123,559.89|47,759.94|60,941.67|
|||market||||||||
||||electronics|||||||
||||market|||||||
|SEG||||||||||
||Subsidiary|E-commerce|E-commerce|48,000,000.00|229,131,206.12|7,596,943.10|24,003,114.88|1,088,961.31|1,276,429.09|
|E-Commerce||||||||||
|SEG Credit|Subsidiary|Finance|Small credit|150,000,000.00|249,039,732.73|161,452,742.49|21,129,338.87|12,552,263.57|9,420,497.68|
|||Property|Property operation|||||||
|SEG Baohua|Subsidiary|||30,808,800.00|150,598,376.70|84,425,454.86|37,623,155.78|17,139,510.90|12,988,755.20|
|||management|and management|||||||

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Company|Ownership||Major products or|Registered||||||
|||Industry|||Total assets|Net assets|Total operating|Operating profit|Net profit|
|name|Type||services|Capital||||||
||||||||income|||
||||and hotel business|||||||
||||Channel retail|||||||
||||terminal of|||||||
|||Electronic|electronic|||||||
|SEG Industry|Subsidiary|product|products and|25,500,000.00|67,278,672.38|31,550,295.42|88,726,789.28|3,077,930.77|3,087,878.26|
|||channel service|property|||||||
||||operation and|||||||
||||management|||||||
||||Operation and|||||||
|||Electronics|management of|||||||
|Xi'an SEG|Subsidiary||professional|3,000,000.00|48,888,713.21|18,455,942.87|18,600,484.98|5,760,532.13|5,973,833.80|
|||market||||||||
||||electronics|||||||
||||market|||||||
||||Operation and|||||||
|Longgang||Electronics|management of|||||||
||Subsidiary||professional|3,000,000.00|23,389,508.94|6,649,904.87|6,177,310.21|1,397,471.62|1,052,259.12|
|SEG||market||||||||
||||electronics|||||||
||||market|||||||
||||Operation and|||||||
|||Electronics|management of|||||||
|Suzhou SEG|Subsidiary||professional|3,000,000.00|42,229,905.86|8,024,621.99|20,389,880.68|4,478,032.47|3,079,423.27|
|||market||||||||
||||electronics|||||||
||||market|||||||
||||Operation and|||||||
|Changsha||Electronics|management of|||||||
||Subsidiary||professional|35,000,000.00|77,458,350.81|56,423,509.45|10,653,751.12|2,732,379.95|1,970,376.13|
|SEG||market||||||||
||||electronics|||||||
||||market|||||||
||||Operation and|||||||
|Xi'an Hairong||Electronics|management of|||||||
||Subsidiary||professional|3,000,000.00|24,045,055.29|2,872,967.13|8,678,234.63|783,368.63|836,581.41|
|SEG||market||||||||
||||electronics|||||||
||||market|||||||
||||Operation and|||||||
|||Electronics|management of|||||||
|Nanjing SEG|Subsidiary||professional|20,000,000.00|30,730,615.58|10,427,238.02|21,910,967.04|413,176.38|590,563.79|
|||market||||||||
||||electronics|||||||
||||market|||||||
||||Business|||||||
|Nantong SEG||||||||||
|Operation|Subsidiary|Service|operation and|5,000,000.00|0|0|0|0|0|
|||industry|property|||||||
|Company|||management|||||||
||||Manufacturing|||||||
||||and operation of|||||||
|Huakong|Shareholding|Manufacturing|color picture tube|||||||
|||of electronic|(CPT), CPT|896,671,464.00|584,306,216.15|167,208,851.24|24,122,428.29|-29,200,748.36|-29,196,676.72|
|SEG|company|||||||||
|||components|materials, and|||||||
||||glass apparatus|||||||
||||and so on|||||||
||||Operation and|||||||
|Shanghai|Shareholding|Electronics|management of|||||||
||||professional|5,000,000.00|32,833,388.87|9,499,978.89|17,207,347.90|71,134.90|177,979.17|
|SEG|company|market||||||||
||||electronics|||||||
||||market|||||||
||||Production and|||||||
|SEG|Shareholding|Information|operation network|60,000,000.00|398,869,725.01|190,328,881.37|119,002,578.69|-4,417,054.01|399,247.37|
|Navigations|company|industry|service of China|||||||
||||GPS|||||||

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. 5. Major projects that are not invested by the collected capital
□ Applicable√ Not applicable
In the report period, the Company has no major projects that are not invested by the collected capital.
VI. Prediction of the operation performance from January to September 2014
Warning and reasons for forecasts on loss of the accumulated net profit from the year-beginning to the end of next period or sharp year-on-year changes in net profit
□ Applicable√ Not applicable
VII. Explanations of the Board of Directors and the Board of Supervisors to the “Non-standardAuditor’s Report” made by the accounting firm in the report period
□ Applicable√ Not applicable
VIII. Explanations of the Board of Directors to the relative information of the “Non-standardAuditor’s Report” of the previous year
□ Applicable√ Not applicable
IX. Implementation of profit distribution of the Company in the report period
Implementation or adjustment of the profit distribution scheme, especially the cash dividend scheme and the scheme of transferring the capital reserve to share capital in the report period
□ Applicable√ Not applicable
In the previous year, the profit distribution scheme of the Company was not to distribute cash dividend, bonus shares, ot transfer of the capital reserve to share capital.
X. Plan of profit distribution and transferring the capital reserve to share capital in the report period
□ Applicable√ Not applicable
In the first half year, the Company plans not to distribute cash dividend or shares, nor to transfer the capital reserve to share capital. XI. Registration form for investigations, communication and interviews in the report period√ Applicable□ Not applicable
|||||||
|-|-|-|-|-|-|
|Time|Place|Means|Type|Object|Main content of discussion and the materials provided|
||||||Inquired about loss or gain of the Company in 2013 and why|
|January|At the||||the shares did not rise? The Company provided no|
|||Phone call|Individual|Investor||
|10, 2014|Company||||documents. The investors can read the annual report 2013|
||||||disclosed on March 20, 2014.|

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
|||||||
|-|-|-|-|-|-|
|Time|Place|Means|Type|Object|Main content of discussion and the materials provided|
||||||Inquired about situation of China GPS whose 12.5% shares|
|January|At the||||are held by the Company and what are the main businesses|
|||Phone call|Individual|Investor||
|14, 2014|Company||||of the Company? The Company provided basic documents|
||||||of China GPS and the Company.|
||||||Inquired about profit situation of the Company in 2013. The|
|February|At the|||||
|||Phone call|Individual|Investor|Company provided no documents. The investors can read|
|10, 2014|Company|||||
||||||the annual report 2013 disclosed on March 20, 2014.|
||||||Inquired about why the share of the Company is not|
|February|At the|||||
|||Phone call|Individual|Investor|appreciated? The Company provided the basic information|
|11, 2014|Company|||||
||||||and regularly disclosed reports of the Company.|
||||||Inquired about the main businesses of the Company. The|
|February|At the|||||
|||Phone call|Individual|Investor|Company provided the basic introduction to the Company|
|17, 2014|Company|||||
||||||and the latest regular report.|
||||||Inquired about whether the Company is operated normally.|
|February|At the|||||
|||Phone call|Individual|Investor|The Company provided the basic introduction to the|
|20, 2014|Company|||||
||||||Company and the latest regular report.|
||||||Inquired about when the annual report of the Company is|
|February|At the|||||
|||Phone call|Individual|Investor|disclosed. The Company informed that the annual report was|
|21, 2014|Company|||||
||||||disclosed on March 20, 2014.|
||||||Inquired about the reasons for the temporary suspension of|
|March 10,|At the|||||
|||Phone call|Individual|Investor|the Company. The Company informed of resumption on that|
|2014|Company|||||
||||||very day and reminded of attention to the resumption notice.|
||||||Inquired about why the Company gave up the control power|
|March 10,|At the|||||
|||Phone call|Individual|Investor|over Huakong SEG. The Company replied based on the|
|2014|Company|||||
||||||notice contents.|
||||||Inquired about why the Company gave up the control power|
|March 11,|At the|||||
|||Phone call|Individual|Investor|over Huakong SEG. The Company replied based on the|
|2014|Company|||||
||||||notice contents.|
||||||Inquired about why the Company gave up the control power|
|March 12,|At the|||||
|||Phone call|Individual|Investor|over Huakong SEG. The Company replied based on the|
|2014|Company|||||
||||||notice contents.|
||||||Inquired about the detail operation situation of the Company|
|March 19,|At the|||||
|||Phone call|Individual|Investor|in the first quarter. The Company reminded the investors of|
|2014|Company|||||
||||||attention to the to-be-disclosed first quarter report 2014.|
||||||Inquired about information of the Yantai project invested by|
|April 21,|At the|||||
|||Phone call|Individual|Investor|the Company. The Company reminded the investors of|
|2014|Company|||||
||||||reference to the disclosed relative notices.|
|April 22,|At the||||Inquired about the detail company address and planned to|
|||Phone call|Individual|Investor||
|2014|Company||||participate in the shareholder meeting. The Company|

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
|||||||
|-|-|-|-|-|-|
|Time|Place|Means|Type|Object|Main content of discussion and the materials provided|
||||||informed of the detail address and route.|
||||||Inquired about the detail operation information of the|
|June 27,|At the||||Company in the second quarter. The Company reminded the|
|||Phone call|Individual|Investor||
|2014|Company||||investors of attention to the semi-annual report 2014 to be|
||||||disclosed.|

Chapter 5 Important Matters
I. Governance of the Company
In the report period, the Company strictly adheres to stipulations of laws and regulations such as Law of Corporations, Law of Securities, Stock Listing Rules as well as requirements of China Securities Regulatory Commission, and keeps completing and improving the governing structure and internal control system of the corporation, strengthening the governing activities, and improving the governing quality of the corporation. However, the following issues still exist:
1. The controlling shareholders exert the―Property Right Representatives ReportSystem‖ for managing the Company. Our controlling shareholder SEG Group is the state-holding enterprise affiliated to Shenzhen Municipality. Shenzhen MunicipalPeople’s Government State-owned Assets Supervision and Administration Commission is the controlling shareholder of SEG Group. According to the method of managing state-owned asset in Shenzhen, the Company must implement the―Property Right Representatives ReportSystem‖.
2. In the respect of personnel rating, our controlling shareholder SEG Group evaluates the annual operation performance of the general manager based on the accomplishment of indexes of its annual operation plan and other indexes.
3. The Company reports the non-public information to the major shareholders and the actual controllers.
The Company reports the non-public information to the major shareholders and the actual controls based on the property right representative reporting system and requirements of the national statistical departments. At present, according to the requirement of state-owned assets supervision administration, the Company submits to the controlling shareholder and actual controller the monthly financial bulletin and report important matters before it
is disclosed. The Company has submitted the Non-public Information Form Provided by the Listed Company to
the Major Shareholders and the Actual Controllers and the Letter of Promise to Shenzhen Bureau of China
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. Securities Regulatory Commission on October 18, 2007. SEG Group issues the Letter of Promise to Enhance Management of the Non-public Information to Shenzhen Bureau of China Securities Regulatory Commission. Meanwhile, the Company has established and implemented the Inside Information Insiders Reporting System of Shenzhen SEG Co., Ltd. and the Confidentiality System for Insiders of the Non-public Information of Shenzhen SEG Co., Ltd. The Company will monthly report the non-public information to Shenzhen Bureau of China Securities Regulatory Commission for record. On July 15, 2009, the executives of the Company and the whole staff of the headquarters signed―ConfidentialityAgreement‖ with the Company staffs one by one to define their confidential responsibilities for the business secrets and the non-public information of the Company.
In the report period, the non-public information provided by the Company to the major shareholders and the actual controllers is as follows:
|||||||||
|-|-|-|-|-|-|-|-|
|S/N|Organization|Relationship|Type of|Procedure of report|Time or|Basis of report|Procedure of|
||to which|between the|information||period of||approval|
||information is|organization|||report|||
||reported|and the||||||
|||Company||||||
|1|SEG Group|Controllingshareholder(30.24%)|The flash reportof main financialindicators of theCompanyregistered inShenzhen|The invested corporation of theCompany and the financial staffat the Headquarters prepare thereport and consolidate thestatements, which are reviewedby the leadership of theFinancial Department andreported through theState-owned Asset ManagementInformation System.|monthly|The document Notice aboutFormulation of the MonthlyFlash Report of EnterprisesSupervised by Stated-ownedAssets Supervision andAdministration Commission ofthe State Council (SASAC[2003]23)|Approved bythe Board ofDirectors|
|2|SEG Group|Controllingshareholder(30.24%)|Summary sheet ofimplementation ofmonthly expensebudget|The invested corporation of theCompany and the financial staffat the Headquarters prepare thesheet and consolidate thestatements, which are reportedthrough the State-owned AssetManagement InformationSystem.|monthly|The document Notice aboutFormulation of the MonthlyFlash Report of EnterprisesSupervised by Stated-ownedAssets Supervision andAdministration Commission ofthe State Council (SASAC[2003]23)|Approved bythe Board ofDirectors|
|3|SEG Group|Controllingshareholder(30.24%)|Summary sheet ofmonthly cashflow|The invested corporation of theCompany and the financial staffat the Headquarters prepare thesheet and consolidate thestatements, which are reported|monthly|The document Notice aboutFormulation of the MonthlyFlash Report of EnterprisesSupervised by Stated-ownedAssets Supervision and|Approved bythe Board ofDirectors|

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
|||||||||
|-|-|-|-|-|-|-|-|
|S/N|Organization|Relationship|Type of|Procedure of report|Time or|Basis of report|Procedure of|
||to which|between the|information||period of||approval|
||information is|organization|||report|||
||reported|and the||||||
|||Company||||||
|||||through the State-owned AssetManagement InformationSystem.||Administration Commission ofthe State Council (SASAC[2003]23)||
|4|SEG Group|Controllingshareholder(30.24%)|Deposits of homeoffice andFinancing LoansSummary Sheet|The financial personnel at theHeadquarters prepare the sheetthat is reported through theState-owned Asset ManagementInformation System.|Quarterly|The document Notice aboutFormulation of the MonthlyFlash Report of EnterprisesSupervised by Stated-ownedAssets Supervision andAdministration Commission ofthe State Council (SASAC[2003]23)|Approved bythe Board ofDirectors|
|5|SEG Group|Controllingshareholder(30.24%)|Summary sheet ofquarterlynon-operatinggains and lossesof the Companyregistered inShenzhen|The invested corporation of theCompany and the financial staffat the Headquarters prepare thesheet and consolidate thestatements, which are reportedthrough the State-owned AssetManagement InformationSystem.|Quarterly|The document Notice aboutFormulation of the MonthlyFlash Report of EnterprisesSupervised by Stated-ownedAssets Supervision andAdministration Commission ofthe State Council (SASAC[2003]23)|Approved bythe Board ofDirectors|
|6|SEG Group|Controllingshareholder(30.24%)|Summary sheet ofquarterlyinformation oninvestmentproperties of theCompanyregistered inShenzhen|Reported since June 2009.The invested corporation of theCompany and the financial staffat the Headquarters prepare thesheet and consolidate thestatements, which are reportedthrough the State-owned AssetManagement InformationSystem.|Quarterly|The document Notice aboutFormulation of the MonthlyFlash Report of EnterprisesSupervised by Stated-ownedAssets Supervision andAdministration Commission ofthe State Council (SASAC[2003]23)|Approved bythe Board ofDirectors|
|7|SEG Group|Controllingshareholder(30.24%)|Monthlyconsolidatedstatements(including theBalance Sheet,the ProfitStatement, theCash FlowStatement, theNotes toPreparation of the|Reported monthly after printing,signing, and stamping eachmonth. Reported quarterlythrough the State-owned AssetManagement InformationSystem. Reported online directlysince July 2008.|monthly|The Notice of Shenzhen SEGCo., Ltd on Submitting ofMonthly Statements ofShenzhen SEG Group Co., Ltd.|Approved bythe Board ofDirectors|

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
|||||||||
|-|-|-|-|-|-|-|-|
|S/N|Organization|Relationship|Type of|Procedure of report|Time or|Basis of report|Procedure of|
||to which|between the|information||period of||approval|
||information is|organization|||report|||
||reported|and the||||||
|||Company||||||
||||Statements andthe FinancialStatements)|||||
|8|SEG Group|Controllingshareholder(30.24%)|Statisticalstatement/Monthly report or annualreport ofproduction of theelectronicinformationindustry|Sealed by the Company|monthlyandannually|It was provided by Article Threeof the Statistics Law of thePeople’s Republic of China thatstate organs, socialorganizations, corporations,public institutions and privatelyor individually ownedbusinesses, on which statisticalsurvey is implemented, mustcomply with the Statistics Lawand the regulations of the stateand provide statistical datafaithfully but not make a falsereport, conceal data, refuse toreport, delay the report, orfabricate or falsify data.Self-governing massorganizations at the grass rootslevel and citizens have theobligation to provide truthfullythe information required by thestatistical survey of the state.|Approved bythe Board ofDirectors|
||ShenzhenStatisticsBureau|Governmentbranch||||||
|9|SEG Group|Controllingshareholder(30.24%)|Summary sheet ofquarterly financialassets|Sealed by the Company|Quarterly|The document Notice aboutFormulation of the MonthlyFlash Report of EnterprisesSupervised by Stated-ownedAssets Supervision andAdministration Commission ofthe State Council (SASAC[2003]23)|Approved bythe Board ofDirectors|
|10|ShenzhenSASAC|Actualcontroller|Investmentanalysis of thefirst and secondquarters in 2014|Formulated based on the top 100shareholder list and the quarterlytrading situation provided byChina Securities Depository andClearing Co., Ltd. at the end ofeach quarter.|Quarterly|Requirements of CapitalOperation Meeting of MunicipalState-owned Enterprises 2013|Approved bythe Board ofDirectors|

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. II. Major Litigation and Arbitration Issues
□ Applicable√ Not applicable
In the report period, the Company has no major litigation and arbitration issues.
III. Media Query Issues
□ Applicable√ Not applicable
In the report period, the Company has no common media queries.
IV. Bankruptcy and Reorganization Issues
□ Applicable√ Not applicable
In the report period, the Company has no bankruptcy and reorganization issues.
V. Asset Transactions
(1)Asset acquisition issues
□ Applicable√ Not applicable
In the report period, the Company has no asset acquisition issues.
(2) Asset sale issues
□ Applicable√ Not applicable
In the report period, the Company has no asset sale issues.
(3) Enterprise merger issues
√ Applicable□ Not applicable
|||||
|-|-|-|-|
|Company name|Purpose of acquisition and|Mode of acquisition and|Impact on the overall production|
||disposal of subsidiaries in the|disposal of subsidiaries in|and performance|
||report period|the report period||
|Yantai SEG Times Square|Focus on major business according|Investment, new|No influence arising on the net|
|Development Co., Ltd.|to strategies of the Company|establishment|profit in the report period|
|Nantong SEG Commercial|Focus on major business according|Investment, new|No influence arising on the net|
|Operation Management Co., Ltd.|to strategies of the Company|establishment|profit in the report period|

 VI. Implementation and Influence of Equity Incentive Mechanism
□ Applicable√ Not applicable
In the report period, the Company has no equity incentive plan or its implementation.
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. VII. Major Related Transaction
(1) Related transaction relative to daily operation
√ Applicable□ Not applicable
|||||||||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||ytrapnoitcasnartdetaleR||pihsnoitalerdetaicossA||epytnoitcasnartdetaleR||tnetnocnoitcasnartdetaleR||detalerfolapicnirpgnicirP|noitcasnart||ecirpnoitcasnartdetaleR||tnuomanoitcasnartdetaleR|)dnasuohtnetYNC(|emasehtfotuoegatnecreP|noitcasnartfodnik||fodohtemtnemeltteS|noitcasnartdetaler||emasehtfoecirptekraM|noitcasnartelbaniattafodnik||etaderusolcsiD||xednierusolcsiD|
|||||||||||||||||||||||||||Notice about||
|||||||||||||||||||||||||||Expected Matters of||
|||||||the Company||||||||||||||||||||||
|||||||||||||||||||||||||||Daily Operative||
|||||||rents the||||||||||||||||||||||
|Shenzhen||||||||||||||||||||||||||Related Transaction||
|||||||property of||Based on||||||||||Based on||||||||||
|SEG||Controlling||Property||||||||||||||||||||||2014 disclosed in||
|||||||SEG Plaza||market|||54.45||54.45|||0.22%||the||||||20.03.14||||
|Group Co.,||shareholder||leasing||||||||||||||||||||||China Securities||
|||||||owned by the||price||||||||||agreement||||||||||
|Ltd.||||||||||||||||||||||||||Journal, Securities||
|||||||controlling||||||||||||||||||||||
|||||||||||||||||||||||||||Times, Hong Kong||
|||||||shareholder||||||||||||||||||||||
|||||||||||||||||||||||||||Commercial Daily,||
|||||||||||||||||||||||||||and CNINF.||
|Total||||||||--|||--||54.45|||--||--|||--|||--||--||
|Details of major sales return||||||||N/A||||||||||||||||||||
|Actual implementation of the classified and||||||||||||||||||||||||||||
|||||||||It is the continuous business of the daily operation and is proceeding based on the plan in the||||||||||||||||||||
|predicted amount of daily related transaction that||||||||||||||||||||||||||||
|||||||||report period.||||||||||||||||||||
|will happen in the report period (if any)||||||||||||||||||||||||||||
|Reasons for the great differences between the||||||||||||||||||||||||||||
|transaction price and the market price (if||||||||Not applicable||||||||||||||||||||
|applicable)||||||||||||||||||||||||||||

(2) Related transaction about asset acquisition and sale
□ Applicable√ Not applicable
In the report period, the Company has no related transaction about asset acquisition and sale.
(3) Related transaction about common foreign investment
□ Applicable√ Not applicable
In the report period, the Company has no related transaction about joint external investment.
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. (4) Related transaction oncreditor’s rights or debt
□ Applicable√ Not applicable
In the report period, the Company has no related transaction oncreditor’s rights or debt.
(5) Other major related transactions
□ Applicable√ Not applicable
In the report period, the Company has no other major related transactions.
VIII. The controlling shareholder and its related party occupy capital of the listed company not for the purpose of operation.
□ Applicable√ Not applicable
In the report period, it does not exist that the controlling shareholder and its related party occupy capital of the listed company not for the purpose of operation.
IX. Important contracts and their implementation
1. Trusteeship, contracting, and leasing issues
(1) Trusteeship issues
√ Applicable□ Not applicable
Explanations to trusteeship
The controlling shareholder Shenzhen SEG Group Co., Ltd. entrusts the Company to manage SEG
telecommunication market.
Projects which bring the losses and gains that take up10% of the profit amount of the Company in the report period.
□ Applicable√ Not applicable
In the report period, the Company has no entrusted projects which bring the losses and gains that take up10% of the profit amount of the Company in the report period.
(2) Contracting issues
□ Applicable√ Not applicable
In the report period, the Company has no contracting issues.
(3) Leasing issues
□ Applicable√ Not applicable
In the report period, the Company has no leasing issues.
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. 2. Guarantee issues
√ Applicable□ Not applicable
Unit: CNY (ten thousand)
||||||||||
|-|-|-|-|-|-|-|-|-|
|Guarantee of the Company to its subsidiaries|||||||||
||Disclosure||||||||
||date of||Actual||||Whether|Is it|
||relative||guarantee date|Actual|||the|guarantee|
|Name of the||Guarantee|||Type of|Term of|||
||notice||(the date|guarantee|||performan|for the|
|guaranteed||amount|||guarantee|guarantee|||
||about the||signing the|amount|||ce is|related|
||guarantee||agreement)||||completed|party|
||amount||||||||
|SEG Credit|March 2,|7,500|March 20, 2013|7,500|Joint liability|2 years|Yes|No|
||2013||||guarantee||||
|SEG Credit|April 14,|3,000|June 24, 2013|3,000|Joint liability|2 years|No|No|
||2013||||guarantee||||
|Total approved guarantee amount||0||Total amount of the actual||0|||
|to the subsidiaries in the report||||guarantee to the subsidiaries|||||
|period (B1)||||in the report period (B2)|||||
|Total approved guarantee amount||10,500||Total amount of the guarantee||3,000|||
|to the subsidiaries at the end of||||balance to the subsidiaries at|||||
|the report period (B3)||||the end of the report period|||||
|||||(B4)|||||
|Total guarantee amount of the Company (namely summing up the previous two items)|||||||||
|Total approved guarantee amount||0||Total actual guarantee amount||0|||
|in the report period (A1+B1)||||in the report period (A2+B2)|||||
|Total approved guarantee amount||10,500||Total actual guarantee balance||3,000|||
|at the end of the report period||||at the end of the report period|||||
|(A3+B3)||||(A4+B4)|||||
|Percentage of the actual guarantee amount (namely A4+B4) out|||||||||
|||||2.33%|||||
|of the net assets of the Company|||||||||

(1) Violating external guarantee issues
□ Applicable√ Not applicable
In the report period, the Company has no violating external guarantee issues.
3. Other important contracts
√ Applicable□ Not applicable
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
|||||||
|-|-|-|-|-|-|
||||Transaction|||
|||||Connected||
|||Pricing|price in|||
|Lender|Borrower|||transaction|Execution by the end of the report period|
|||principle|CNY (ten|||
|||||or not||
||||thousand)|||
||||||On April 18, 2014, the 32nd special meeting of the 5th Board of|
||||||Directors of the Company discussed and approved the Proposal about|
||||||Shenzhen SEG Co., Ltd. Providing Shenzhen SEG Industrial Investment|
||||||Co., Ltd. with the Working Capital Loan of RMB 32,000,000. The|
||Shenzhen||||Company provides the 100% share controlled Shenzhen SEG Industrial|
|Shenzhen|SEG||||Investment Co., Ltd. with the working capital loan of totally RMB|
|SEG Co.,|Industrial|Fair price|3,200|No|32,000,000. Out of RMB 32,000,000, RMB 22,000,000 is offered|
|Ltd.|Investment||||based on the decision made in the 7th meeting of the 5th Board of|
||Co., Ltd.||||Directors and is provided by the Company to SEG Industrial|
||||||Investment in 2011 as the one-year loan; the remaining RMB|
||||||10,000,000 is the newly added working capital loan to satisfy demands|
||||||for business development of SEG Industrial Investment. The both loans|
||||||exclude interests.|
||||||On October 25, 2013, the 6th special meeting of the 6th Board of|
||||||Directors discussed and approved the Proposal about Offering the|
||||||Continuing Loan of RMB 7,000,000 to Changsha SEG Development|
||||||Co., Ltd. The Company offers the 46% share controlled Changsha SEG|
||Changsha|||||
|Shenzhen|||||with the Continuing Loan of RMB 7,000,000 for one year (from|
||SEG|||||
|SEG Co.,||Fair price|700|No|September 25, 2013 to September 24, 2014) at the interest of 6.00%|
||Development|||||
|Ltd.|||||(the same loan interest rate as the bank in the same period). Changsha|
||Co., Ltd.|||||
||||||SEG pledges its property Changsha Xinxing Hotel to the Company.|
||||||Up till the end of the report period, Changsha SEG has returned all the|
||||||principal of the loans to the Company while the current of RMB|
||||||4,791,302 has not been returned.|
||||||On October 14, 2013, the 3rd special meeting of the 6th Board of|
||||||Directors discussed and approved the Proposal about Offering|
||||||Shenzhen SEG E-Commerce Co., Ltd. with Financial Assistance. The|
||||||Company offers the 51% share controlled Changsha SEG with the|
||Shenzhen|||||
|Shenzhen|||||financial assistance of RMB 60,000,000 for one year (from September|
||SEG|||||
|SEG Co.,||Fair price|6,000|No|15, 2013 to September 14, 2014) and pays based on the requirements of|
||E-Commerce|||||
|Ltd.|||||the e-commerce businesses. SEG E-Commerce pays expenses for using|
||Co., Ltd.|||||
||||||the funds to the Company based on its actual loan amount and period.|
||||||The expenses for using the funds is charged with the benchmarking|
||||||interest rate of the one-year bank loan in the same period and should be|
||||||repaid on due date.|

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. 4. Other important transactions
□ Applicable√ Not applicable
In the report period, the Company has no other important transactions.
X. Matters promised by the Company or the5% share controlled shareholders in the report period or in the previous period but continuing to the report period
√ Applicable□ Not applicable
|||||||
|-|-|-|-|-|-|
||||Commitment|Commitment||
|Commitments|Promisor|Content|||Fulfillment|
||||date|term||
|Commitment for share reform|Not applicable|||||
|Commitments in the Acquisition||||||
|Report and the Report of Changes|Not applicable|||||
|on Equity||||||
|Commitments made at the time of||||||
||Not applicable|||||
|restructuring of major assets||||||
|||In accordance with Article 5 of||||
|||Equity Transfer Agreement||||
|||signed between the Company||||
|||and SEG Group, SEG group||||
|||agrees: the Company and its||||
|||affiliates and joint ventures can||||
|||use the eight trademarks of||||
|||SEG Group registered in China|||Commitments|
|Commitment made at the time of||||||
||Shenzhen SEG|Trademark Office; the|||were fulfilled in|
|initial public offerings or|||01.07.96|Long-term||
||Group Co., Ltd.|Company can use the|||the report|
|refinancing||||||
|||above-mentioned trademark|||period.|
|||and similar marks as the||||
|||Company's mark and can use||||
|||them in operating activities; the||||
|||Company does not need to pay||||
|||SEG Group for use of the||||
|||above-mentioned trademarks||||
|||or marks.||||
||||14.09.07|Long-term|Commitments|
|||According to the problem||||
||||||were fulfilled in|
|||pointed out by Shenzhen||||
|||Securities Regulatory Bureau|||the report|
||Shenzhen SEG|||||
|Other commitments||in the field inspection in 2007,|||period.|
||Group Co., Ltd.|||||
|||i.e. ―There is horizontal||||
|||competition between your||||
|||company and Shenzhen SEG||||

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
|||||||
|-|-|-|-|-|-|
||||Commitment|Commitment||
|Commitments|Promisor|Content|||Fulfillment|
||||date|term||
|||Group‖, the Company received||||
|||the Letter of Promise in writing||||
|||from SEG Group on 14||||
|||September 2007, therein, the||||
|||content is as follows: ―We, the||||
|||SEG Group, deals in the||||
|||business to that of Shenzhen||||
|||SEG Co., Ltd. (hereinafter||||
|||referred to as SHEN SEG)||||
|||because of the historical cause||||
|||and objective market||||
|||background. We, the Group||||
|||Company promise hereby that||||
|||we will not independently||||
|||operate any market with the||||
|||business similar to that of||||
|||Shenzhen SEG Co., Ltd. in the||||
|||same city.‖||||
|||On 26 January 2011, the|26.01.11|Five years in|Commitments|
|||Company convened the 6th||total from 1|were fulfilled in|
|||interim meeting of the 5th||Feb. 2011 to|the report|
|||Board of Directors, and passed||31 Jan. 2015|period.|
|||the resolution on the Proposal||||
|||of Solving Horizontal||||
|||Competition between the||||
|||Company and the Controlling||||
|||Shareholder. Through amicable||||
|||negociation between both||||
|||parties, SEG Group agrees to||||
|||entrust the Company to operate||||
|||and manage SEG||||
|||Communicatios Market which||||
|||was directly operated and||||
|||managed by SEG Group||||
|||originally. So, both parties||||
|||signed the contract of||||
|||entrustment management,||||
|||specifying that SEG Group will||||
|||pay the Company for RMB||||
|||200,000 as fees of entrustment||||
|||management on annual basis.||||

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
|||||||
|-|-|-|-|-|-|
||||Commitment|Commitment||
|Commitments|Promisor|Content|||Fulfillment|
||||date|term||
|Other commitments made to the||||||
|medium and small shareholders of|Not applicable|||||
|the Company||||||
|Whether commitments were||||||
||Yes|||||
|fulfilled on time||||||
|Detail reasons for failure of||||||
|implementation and the further|N/A|||||
|plan (if any)||||||

XI. Appointment, Dismissal Issues of the Accounting Firm
Whether the semi-annual financial report has been audited?
□Yes√No
XII. Penalty and Rectification Issues
□ Applicable√ Not applicable
In the report period, the Company has no penalty and rectification issues.
XIII. Revelation of the Risks of Delisting for Violating Laws and Regulations
□ Applicable√ Not applicable
In the report period, the Company has no risks of delisting for violating laws and regulations.
XIV. Explanations to other important matters
√ Applicable□ Not applicable
||||
|-|-|-|
|Overview of important events|Disclosure date|Inquiry index for the websites disclosing the temporary|
|||reports|
|1. About the temporary suspension of stocks of theCompanySince the Company has relative undisclosedinformation, it may impact the stock price of theCompany. To prevent the abnormal stock price changeand protect benefits of the investors, based on relativestipulations of Shenzhen Stock Exchange, the Companyapplied for temporary suspension since opening onMarch 10, 2014.|March 10, 2014|Refer to the Notice of the Temporary Suspension|
|||disclosed in China Securities Journal, Securities Times,|
|||Securities Daily, Hong Kong Commercial Daily, and|
|||CNINF.|
|2. About stock resumption of the CompanyOn March 10, 2014, the 9th special meeting of the 6th|March 12, 2014|Refer to the Stock Resumption Notice, the Notice about|
|||Decisions of the 9th Temporary Meeting of the 6th|

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Overview of important events|Disclosure date|Inquiry index for the websites disclosing the temporary|
|||reports|
|Board of Directors was held by means ofcommunication voting. The meeting discussed andapproved the Proposal about Signing the Agreementabout Arrangement of Control Power of ShenzhenHuakong SEG Co., Ltd.After application, stocks of the Company were resumedsince opening the market on March 12.||Board of Directors, and the Notice about Giving up the|
|||Control Power of Shenzhen Huakong SEG Co., Ltd.|
|||disclosed in China Securities Journal, Securities Times,|
|||Securities Daily, Hong Kong Commercial Daily, and|
|||CNINF.|
|3. Progress of the short-term financing bills issued bythe CompanyIn the report period, the Company receives theNotification of Accepted Registration (【2013】CP499)issued by National Association of Financial MarketInstitutional Investors.On May 14, 2014, the Company successfully issued thefirst-session short-term financing bills of 2014.|January 3, 2014|Refer to the Notice about Accepted Registration of the|
|||Short-term Financing Bills disclosed in China|
|||Securities Journal, Securities Times, Securities Daily,|
|||Hong Kong Commercial Daily, and CNINF.|
||May 16, 2014|Refer to the Notice about Issuance of the First|
|||Short-term Financing Bills 2014 disclosed in China|
|||Securities Journal, Securities Times, Securities Daily,|
|||Hong Kong Commercial Daily, and CNINF.|
|||Refer to the websites of China-money and Shanghai|
|||Clearing House for the relative documents about|
|||issuance of the financing bills.|
|4. About the short-term financing bills of the maximumRMB 300,000,000 issued by the share controlledsubsidiary SEG Credit and recorded in Qianhai EquityExchange or Shenzhen Qianhai Financial AssetsExchange and the matter that the Company plans tosubscribe all the financing bills.|June 11, 2014|Refer to the Notice about Decisions Made in the 13th|
|||Special Meeting of the 6th Board of Directors, the|
|||Notice about the Short-term Financing Bills Issued by|
|||the Share Controlled Subsidiary, and the Notice about|
|||Subscribe the Short-term Financing Bills Issued by the|
|||Share Controlled Subsidiary disclosed in China|
|||Securities Journal, Securities Times, Securities Daily,|
|||Hong Kong Commercial Daily, and CNINF.|

Chapter 6 Changes in Share Capital and Information On
Shareholders
I. Information on changes in share capital
Unit: Share
||||||||||
|-|-|-|-|-|-|-|-|-|
|Before the change||Increase/decrease by (+)|||||After the change||
|||||Capitalizat|||||
|||New share|Bonus||||||
|Quantity|Percentage|||ion of|Others|Subtotal|Quantity|Percentage|
|||issuing|share||||||
|||||public|||||

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||||reserve|||||
|I. Restricted shares|35,464|0.00%|0|0|0|-8,775|-8,775|26,689|0.00%|
|1. State-owned shares|0|0.00%|0|0|0|0|0|0|0.00%|
|2. State-owned legal||||||||||
||0|0.00%|0|0|0|0|0|0|0.00%|
|person’s shares||||||||||
|3. Other domestic shares|35,464|0.00%|0|0|0|-8,775|-8,775|26,689|0.00%|
|Including: Shares held by||||||||||
||0|0.00%|0|0|0|0|0|0|0.00%|
|overseas legal persons||||||||||
|Shares held by domestic||||||||||
||35,464|0.00%|0|0|0|-8,775|-8,775|26,689|0.00%|
|natural persons||||||||||
|4. Foreign shareholding|0|0.00%|0|0|0|0|0|0|0.00%|
|Including: Shares held by||||||||||
||0|0.00%|0|0|0|0|0|0|0.00%|
|overseas legal persons||||||||||
|Shares held by foreign||||||||||
||0|0.00%|0|0|0|0|0|0|0.00%|
|natural persons||||||||||
|II. Unrestricted shares|784,763,546|100.00%|0|0|0|8,775|8,775|784,772,321|100.00%|
|1. RMB ordinary shares|538,311,228|68.59%|0|0|0|0|0|538,311,003|68.59%|
|2. Domestically listed||||||||||
||246,461,318|31.40%|0|0|0|0|0|246,461,318|31.40%|
|foreign shares||||||||||
|3. Overseas listed foreign||||||||||
||0|0.00%|0|0|0|0|0|0|0.00%|
|shares||||||||||
|4. Others|0|0.00%|0|0|0|0|0|0|0.00%|
|III. Total shares|784,799,010|100.00%|0|0|0|0|0|784,799,010|100.00%|

 Causes for change
√ Applicable□ Not applicable
Six months after the independent directors of the previous Board of Directors left, the restricted stocks are lifted and the shares are reduced.
Approval of changes in share capital
□ Applicable√ Not applicable
Share transfer
□ Applicable√ Not applicable
Impact of changes in share capital on such financial indicators as basic EPS, diluted EPS, and net asset per share attributable to common shareholders of the Company in the last year and previous report period
□ Applicable√ Not applicable
Other contents as deemed necessary by the Company or required by the securities regulatory authority to be disclosed
□ Applicable√ Not applicable
Explanations to changes of the sum of shares and the shareholder structure as well as the changes of the asset and debt structure of
the Company.
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.□ Applicable√ Not applicable
II. Quantity of the Shareholders and Shareholding Information
Unit: Share
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||||||Total number of the preferred|||0|||
|Total amount of the ordinary|||||||||||
||||||shareholders resumed by voting||||||
|shareholders at the end of the report||64,220|||||||||
||||||power at the end of the report||||||
|period|||||||||||
||||||period (if any) (refer to Note 8)||||||
|Shareholding situation of the holders with 5% and above shares or the top 10 holders|||||||||||
||||||||||Information on||
|||||||Share|||||
|||||Shares held by|||Quantity of|Quantity of|pledged or frozen||
||Nature of||Shareholding|||increase/decr|||||
|Name of shareholder||||the end of|||restricted|unrestricted|shares||
||shareholder||percentage|||ease in the|||||
|||||report period|||shares held|shares held|Share||
|||||||report period||||Quantity|
||||||||||status||
|Shenzhen SEG GroupCo., Ltd.|Legal person ofstate-ownedenterprise||30.24%|237,359,666||Unchanged||237,359,666|||
||||||||||Frozen|83,679,833|
|Zeng Ying|Domestic naturalperson||1.04%|8,140,826||Unchanged||8,140,826|||
|Gong Qianhua|Overseas naturalperson||0.68%|5,311,520||Unchanged||5,311,520|||
|Liu Guocheng|Overseas naturalperson||0.43%|3,398,453||Increasing||3,398,453|||
|ZhongrongInternational Trust Co.,Ltd. --- Ruihua No.3|Others||0.24%|1,918,888||Increasing||1,918,888|||
|NORGES BANK|Overseas legalperson||0.24%|1,890,226||Unchanged||1,890,226|||
|Wang Weili|Domestic naturalperson||0.23%|1,837,966||Increasing||1,837,966|||
|Ju Yongmei|Domestic naturalperson||0.21%|1,654,725||Increasing||1,654,725|||
|Zou Shengzhu|Domestic naturalperson||0.17%|1,316,670||Increasing||1,316,670|||
|Li Mei|Overseas naturalperson||0.16%|1,289,362||Unchanged||1,289,362|||
|The strategic investors or the general|||||||||||
||||Not applicable||||||||
|corporations which become the top 10|||||||||||

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
|||||
|-|-|-|-|
|shareholders due to the placed new shares (if||||
|any) (refer to Note 3)||||
||Shenzhen SEG Group Co., Ltd. has no associated relationship with other shareholders, nor is aconcerted action unit as described by the Administrative Measures for the Information Disclosure ofShareholding Changes in Listed Companies. It is unknown whether other shareholders have theassociated relationship with one another or are persons acting in concert.|||
|Explanations on the associated relationship||||
|or concerted action among the||||
|above-mentioned shareholders||||
|Information on top ten shareholders of unrestricted shares||||
|||Type of share||
|Name of shareholder|Quantity of the unrestricted shares at the end of the report|||
|||Type of share|Quantity|
||period|||
|Shenzhen SEG Group Co., Ltd.|237,359,666|RMB ordinary||
||||237,359,666|
|||shares||
|Zeng Ying|8,140,826|Domestically listed||
||||8,140,826|
|||foreign shares||
|Gong Qianhua|5,311,520|Domestically listed||
||||5,311,520|
|||foreign shares||
|Liu Guocheng|3,398,453|Domestically listed||
||||3,398,453|
|||foreign shares||
|Zhongrong International Trust Co., Ltd. ---Ruihua No.3|1,918,888|RMB ordinary||
||||1,918,888|
|||shares||
|NORGES BANK|1,890,226|Domestically listed||
||||1,890,226|
|||foreign shares||
|Wang Weili|1,837,966|RMB ordinary||
||||1,837,966|
|||shares||
|Ju Yongmei|1,654,725|RMB ordinary||
||||1,654,725|
|||shares||
|Zou Shengzhu|1,316,670|RMB ordinary||
||||1,316,670|
|||shares||
|Li Mei|1,289,362|Domestically listed||
||||1,289,362|
|||foreign shares||
|Explanations to the associated relationship||||
||Shenzhen SEG Group Co., Ltd has no associated relationship with other shareholders, nor is a|||
|or concerted action among the top 10||||
||concerted action unit as described by the Management Methods for Disclosure of Information on|||
|unrestricted circulating shareholders and||||
||Changes of Shareholding Status of Shareholders of Listed Companies. It is unknown whether other|||
|between the top 10 unrestricted circulating||||
||shareholders have an associated relationship or are concerted action units or not.|||
|shareholders and the top 10 shareholders.||||
|Explanations to the top 10 shareholders||||
||Among the above-mentioned top 10 shareholders, Zou Shengzhu holds 16,670 shares of the Company|||
|participating in financing business (if any)||||
||by the ordinary account and 1,300,000 shares by the credit account of the financing bill investor,|||
|(refer to Note 4)||||
||totaling 1,316,670 shares of the Company.|||

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. Whether the shareholders perform the agreed repurchase transactions in the report period
□ Yes√ No
In the report period, the shareholders do not perform the agreed repurchase transactions in the report period.
III. Changes of the Controlling Shareholders or Actual Controllers
Changes of the controlling shareholders in the report period
□ Applicable√ Not applicable
In the report period, the controlling shareholders of the Company are not changed.
Changes of the actual controllers in the report period
□ Applicable√ Not applicable
In the report period, the actual controllers of the Company are not changed.
IV. The shareholders and the persons acting in concert propose or implement the share increasing plan in the report period
□ Applicable√ Not applicable
In the report period, no shareholders or the persons acting in concert propose or implement the share increasing plan in the report period.
Chapter 7 Relative Information of the Preferred Shares
I. Issuance and listing Situations of the Preferred Shares in the Report Period
□ Applicable√ Not applicable
II. Quantity and Shareholding of the Preferred Shareholders
□ Applicable√ Not applicable
III. Repurchase or Transform of the Preferred Shares
1. Repurchase of the preferred shares
□ Applicable√ Not applicable
2. Transform of the preferred shares
□ Applicable√ Not applicable
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. IV. Resumption and Implementation of the Voting Power of the Preferred Shares
□ Applicable√ Not applicable
V. Accounting Policies and Reasons for the Preferred Shares
□ Applicable√ Not applicable
Chapter 8 Information of Directors, Supervisors, and Senior Executives
I. Changes in Shares Held by Directors, Supervisors and Senior Executives
√ Applicable□ Not applicable
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|||||Increase|Decrease|||Quantity of|Quantity of the|
||||Shares||||Quantity of|||
|||||of shares|of shares|Shares||the restricted|restricted|
||||held at||||restricted|||
|||Employment||held in the|held in the|held at||shares|shares vested at|
|Name|Title||period||||shares vested|||
|||status||report|report|period end||vested in the|the end of the|
||||beginning||||initially|||
|||||period|period|(Share)||report period|report period|
||||(Share)||||(Share)|||
|||||(Share)|(Share)|||(Share)|(Share)|
|Jiang|Independe|||||||||
||||11,700|0|11,700|0|0|0|0|
|Yigang|nt Director|Left||||||||
|Total|--|--|11,700|0|11,700|0|0|0|0|

 The shareholding information of other directors, supervisors and senior executives is not changed in the report period. For details, please refer to the annual report 2013.
II. Changes of Directors, Supervisors, and Senior Executives
□ Applicable√ Not applicable
Directors, supervisors and senior executives are not changed in the report period. For details, please refer to the annual report 2013.
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. Chapter 9 Financial Reports
I． Auditor's Report
Has the semi-annual report been audited?
□ Yes√ No
The semi-annual financial report of the Company has not been audited.
II． Financial Statements
The monetary unit used in the Notes to Financial Statements is CNY.
1. Consolidated Balance Sheet
Prepared by: Shenzhen SEG Co., Ltd.
Unit: CNY
||||
|-|-|-|
|Item|Period-End balance|Period-beginning balance|
|Current assets:|||
|Monetary funds|630,339,292.58|336,593,493.81|
|Deposit reservation for balance|0.00|0.00|
|Lending|0.00|0.00|
|Trading financial assets|0.00|0.00|
|Notes receivable|10,000.00|0.00|
|Accounts receivable|104,371,063.56|204,086,309.32|
|Prepaid accounts|74,237,738.43|74,002,910.35|
|Premiums receivable|0.00|0.00|
|Reinsurance accounts receivable|0.00|0.00|
|Reinsurance contract deposit receivable|0.00|0.00|
|Interest receivable|0.00|0.00|
|Dividends receivable|0.00|0.00|
|Other receivables|38,677,457.98|25,033,354.72|
|Redemptory financial assets for sale|0.00|0.00|
|Inventory|174,236,781.17|98,000,921.50|
|Non-current assets due within one year|0.00|0.00|
|Other current assets|518,201,673.36|419,925,176.02|
|Total current assets|1,540,074,007.08|1,157,642,165.72|

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Item|Period-End balance|Period-beginning balance|
|Non-current assets:|||
|Entrusted loans and advances issued|228,165,521.01|243,871,438.72|
|Financial assets available for sale|465,438.61|562,531.41|
|Held-to-maturity investment|0.00|0.00|
|Long-term accounts receivable|0.00|0.00|
|Long-term equity investment|144,151,773.55|145,898,202.86|
|Investment real estate|472,193,789.48|481,517,481.83|
|Fixed assets|40,119,560.45|41,876,654.83|
|Construction in progress|0.00|0.00|
|Engineering materials|0.00|0.00|
|Disposal of fixed assets|0.00|0.00|
|Productive biological assets|0.00|0.00|
|Oil and gas assets|0.00|0.00|
|Intangible assets|1,042,427.68|886,901.46|
|Development expenses|0.00|0.00|
|Goodwill|10,328,927.82|10,328,927.82|
|Long-term deferred expenses|41,440,554.84|44,178,804.04|
|Deferred income tax assets|8,174,634.16|8,177,489.16|
|Other non-current assets|0.00|0.00|
|Total non-current assets|946,082,627.60|977,298,432.13|
|Total assets|2,486,156,634.68|2,134,940,597.85|
|Current liabilities:|||
|Short-term loans|189,950,719.04|70,000,000.00|
|Loans from the Central Bank|0.00|0.00|
|Deposits attracted and accounts due to|||
||0.00|0.00|
|banks and other financial institutions|||
|Borrowing|0.00|0.00|
|Trading financial liabilities|0.00|0.00|
|Notes payable|0.00|0.00|
|Accounts payable|78,448,214.22|181,751,142.48|
|Accounts received in advance|169,395,206.37|208,684,489.90|
|Financial assets sold for repurchase|0.00|0.00|
|Commissions payable|0.00|0.00|

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Item|Period-End balance|Period-beginning balance|
|Payroll payable|6,688,315.61|17,065,382.28|
|Taxes and dues payable|29,056,941.36|37,164,892.21|
|Interest payable|325,333.32|0.00|
|Dividends payable|11,008,435.72|1,317,296.42|
|Other payables|188,577,101.82|164,189,818.81|
|Reinsurance accounts payable|0.00|0.00|
|Insurance contract deposits|0.00|0.00|
|Acting trading securities|0.00|0.00|
|Acting underwriting securities|0.00|0.00|
|Non-current liabilities due within one year|0.00|0.00|
|Other current liabilities|252,056,250.66|0.00|
|Total current liabilities|925,506,518.12|680,173,022.10|
|Non-current liabilities:|||
|Long-term loans|72,000,000.00|0.00|
|Bonds payable|0.00|0.00|
|Long-term accounts payable|0.00|0.00|
|Special payables|0.00|0.00|
|Estimated liabilities|0.00|0.00|
|Deferred income tax liabilities|17,617,705.80|18,196,441.90|
|Other non-current liabilities|579,055.83|762,246.19|
|Total non-current liabilities|90,196,761.63|18,958,688.09|
|Total liabilities|1,015,703,279.75|699,131,710.19|
|Owners' equity (or shareholders' equity):|||
|Paid-up capital (or share capital)|784,799,010.00|784,799,010.00|
|Capital reserve|404,544,540.76|404,593,024.05|
|Less: treasury shares|0.00|0.00|
|Special reserve|0.00|0.00|
|Surplus reserve|102,912,835.67|102,912,835.67|
|General risk provision|0.00|0.00|
|Retained profits|-4,434,652.36|-42,080,494.64|
|Translation difference of foreign currency|||
||0.00|0.00|
|financial statements|||
|Total owners' equity attributable to the parent|||
||1,287,821,734.07|1,250,224,375.08|
|company|||

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Item|Period-End balance|Period-beginning balance|
|Minority shareholders' equity|182,631,620.86|185,584,512.58|
|Total owners' equity (or shareholders' equity)|1,470,453,354.93|1,435,808,887.66|
|Total liabilities and owner's equity (or|||
||2,486,156,634.68|2,134,940,597.85|
|shareholders' equity)|||

Legal representative: Wang Li Person in charge of accounting work: Liu Zhijun Person responsible for accounting institution: Ying Huadong 2. Balance Sheet of the Parent Company
Prepared by: Shenzhen SEG Co., Ltd.
Unit: CNY
||||
|-|-|-|
|Item|Period-End balance|Period-beginning balance|
|Current assets:|||
|Monetary funds|475,260,525.84|173,141,378.64|
|Trading financial assets|0.00|0.00|
|Notes receivable|0.00|0.00|
|Accounts receivable|0.00|0.00|
|Prepaid accounts|196,221.80|142,310.00|
|Interest receivable|0.00|0.00|
|Dividends receivable|16,840,873.17|0.00|
|Other receivables|292,284,837.28|200,493,973.07|
|Inventory|0.00|0.00|
|Non-current assets due within one year|0.00|0.00|
|Other current assets|340,147,945.21|301,248,167.86|
|Total current assets|1,124,730,403.30|675,025,829.57|
|Non-current assets:|||
|Financial assets available for sale|0.00|0.00|
|Held-to-maturity investment|0.00|0.00|
|Long-term accounts receivable|0.00|0.00|
|Long-term equity investment|405,855,299.79|407,601,729.10|
|Investment real estate|300,478,702.81|305,731,220.77|
|Fixed assets|19,645,519.96|19,959,818.75|
|Construction in progress|||
|Engineering materials|||
|Disposal of fixed assets|||

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Item|Period-End balance|Period-beginning balance|
|Productive biological assets|||
|Oil and gas assets|||
|Intangible assets|616,440.12|401,813.18|
|Development expenses|||
|Goodwill|||
|Long-term deferred expenses|4,141,736.32|4,025,337.44|
|Deferred income tax assets|5,989,161.37|5,992,016.37|
|Other non-current assets|||
|Total non-current assets|736,726,860.37|743,711,935.61|
|Total assets|1,861,457,263.67|1,418,737,765.18|
|Current liabilities:|||
|Short-term loans|100,000,000.00|0.00|
|Trading financial liabilities|||
|Notes payable|||
|Accounts payable|0.00|375,000.00|
|Accounts received in advance|52,625,100.84|76,806,434.67|
|Payroll payable|2,073,527.00|7,727,646.55|
|Taxes and dues payable|19,981,806.48|24,258,147.48|
|Interest payable|325,333.32|0.00|
|Dividends payable|119,803.29|119,803.29|
|Other payables|81,137,965.93|71,183,956.83|
|Non-current liabilities due within one year|||
|Other current liabilities|252,056,250.66|0.00|
|Total current liabilities|508,319,787.52|180,470,988.82|
|Non-current liabilities:|||
|Long-term loans|72,000,000.00|0.00|
|Bonds payable|0.00|0.00|
|Long-term accounts payable|0.00|0.00|
|Special payables|0.00|0.00|
|Estimated liabilities|0.00|0.00|
|Deferred income tax liabilities|0.00|0.00|
|Other non-current liabilities|0.00|0.00|
|Total non-current liabilities|72,000,000.00|0.00|

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Item|Period-End balance|Period-beginning balance|
|Total liabilities|580,319,787.52|180,470,988.82|
|Owners' equity (or shareholders' equity):|||
|Paid-up capital (or share capital)|784,799,010.00|784,799,010.00|
|Capital reserve|405,652,893.32|405,652,893.32|
|Less: treasury shares|0.00|0.00|
|Special reserve|0.00|0.00|
|Surplus reserve|102,912,835.67|102,912,835.67|
|General risk provision|0.00|0.00|
|Retained profits|-12,227,262.84|-55,097,962.63|
|Translation difference of foreign currency|||
||0.00||
|financial statements|||
|Total owners' equity (or shareholders' equity)|1,281,137,476.15|1,238,266,776.36|
|Total liabilities and owner's equity (or|||
||1,861,457,263.67|1,418,737,765.18|
|shareholders' equity)|||

Legal representative: Wang Li Person in charge of accounting work: Liu Zhijun Person responsible for accounting institution: Ying Huadong 3. Consolidated Profit Statement
Prepared by: Shenzhen SEG Co., Ltd.
Unit: CNY
||||
|-|-|-|
|Item|Amount of the current period|Amount of the previous period|
|I. Total operating income|337,216,748.01|292,942,040.76|
|Therein: Operating income|316,141,381.01|279,848,108.59|
|Interest income|21,039,537.00|13,093,932.17|
|Earned premiums|0.00|0.00|
|Commissions income|35,830.00|0.00|
|II. Total operating costs|279,600,778.34|237,597,954.70|
|Therein: Operating costs|248,349,208.37|212,671,918.66|
|Interest expenses|1,693,472.23|0.00|
|Commissions|||
|Surrender value|||
|Net compensation pay-outs|||
|Net insurance deposit accrued|||
|Policy dividend expenditures|||

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Item|Amount of the current period|Amount of the previous period|
|Reinsurance expenses|||
|Business taxes and surcharges|12,817,853.52|11,497,251.64|
|Sale expenses|1,002,320.62|1,290,509.28|
|Management expenses|15,637,568.42|17,031,998.58|
|Financing expenses|388,862.46|-5,163,964.97|
|Loss from asset impairment|-288,507.28|270,241.51|
|Plus: Income from changes in fair value|||
||0.00|0.00|
|(Fill in ―–‖ for loss)|||
|Income from investment (Fill in|||
||11,731,540.84|8,694,554.98|
|―–‖ for loss)|||
|Therein: Income from investment|||
||0.00|0.00|
|in joint ventures and associates|||
|Income from exchange (Fill in ―–‖|||
||0.00|0.00|
|for loss)|||
|III. Operating profits (Fill in ―–‖ for loss)|69,347,510.51|64,038,641.04|
|Plus: Non-operating income|1,242,335.04|1,501,958.68|
|Less: Non-operating expenses|131,965.13|14,743.04|
|Therein: Loss from disposal of|||
|non-current assets|||
|IV. Total profit (Fill in ―–‖ for total loss)|70,457,880.42|65,525,856.68|
|Less: income tax expenses|18,633,100.05|17,245,618.33|
|V. Net profit (Fill in ―–‖ for net loss)|51,824,780.37|48,280,238.35|
|Therein: Net profit of the purchased party|||
|realized before the merger|||
|Net profit attributable to shareholders of|||
||37,645,842.28|39,674,066.28|
|the parent company|||
|Gains and losses of the minority|||
||14,178,938.09|8,606,172.07|
|shareholders|||
|VI. Earnings per share|--|--|
|i. Basic earnings per share|0.0480|0.0506|
|ii. Diluted earnings per share|0.0480|0.0506|
|VII. Other comprehensive income|-72,819.60|-171,581.18|
|VIII. Total comprehensive income|51,751,960.77|48,108,657.17|
|Total comprehensive income attributable to|||
||37,597,358.99|39,559,827.53|
|shareholders of the parent company|||

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Item|Amount of the current period|Amount of the previous period|
|Total comprehensive income attributable to|||
||14,154,601.78|8,548,829.64|
|minority shareholders|||

Legal representative: Wang Li Person in charge of accounting work: Liu Zhijun Person responsible for accounting institution: Ying Huadong 4. Profit Statement of the Parent Company
Prepared by: Shenzhen SEG Co., Ltd.
Unit: CNY
||||
|-|-|-|
|Item|Amount in the current period|Amount in the previous period|
|I. Operating income|67,615,859.10|74,311,894.64|
|Less: Operating costs|40,521,511.25|37,003,105.13|
|Business taxes and surcharges|3,815,819.15|4,146,889.84|
|Sale expenses|0.00|0.00|
|Management expenses|5,818,692.93|6,954,194.92|
|Financing expenses|-6,964,476.32|-3,407,472.49|
|Loss from asset impairment|-11,420.00|0.00|
|Plus: Income from changes in fair value|||
||0.00|0.00|
|(Fill in ―–‖ for loss)|||
|Income from investment (Fill in ―–‖|||
||27,365,616.55|22,686,402.75|
|for loss)|||
|Therein: Income from investment in|||
||0.00|0.00|
|joint ventures and associates|||
|II. Operating profits (Fill in ―–‖ for loss)|51,801,348.64|52,301,579.99|
|Plus: Non-operating income|7,799.80|114,182.00|
|Less: Non-operating expenses|31,030.00|0.00|
|Therein: Loss from disposal of|||
|non-current assets|||
|III. Total profits (Fill in ―–‖ for total loss)|51,778,118.44|52,415,761.99|
|Less: Income tax expenses|8,907,418.65|9,300,320.14|
|IV. Net profits (Fill in ―–‖ for net loss)|42,870,699.79|43,115,441.85|
|V. Earnings per share|--|--|
|i. Basic earnings per share|||
|ii. Diluted earnings per share|||
|VI. Other comprehensive income|||
|VII. Total comprehensive income|42,870,699.79|43,115,441.85|

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. Legal representative: Wang Li Person in charge of accounting work: Liu Zhijun Person responsible for accounting institution: Ying Huadong 5. Consolidated Cash Flow Statement
Prepared by: Shenzhen SEG Co., Ltd.
Unit: CNY
||||
|-|-|-|
|Item|Amount of the current period|Amount of the previous period|
|I. Cash flow arising from operating activities:|||
|Cash received from selling of goods and|||
||935,596,634.26|268,071,995.15|
|provision of labor service|||
|Net increase of customers' deposits and|||
|accounts due to banks and other financial|0.00||
|institutions|||
|Net increase of loans from the Central|||
||0.00||
|Bank|||
|Net increase of loans from other financial|||
||0.00||
|institutions|||
|Cash received from premiums of original|||
||0.00||
|insurance contracts|||
|Net cash received from reinsurance|||
||0.00||
|business|||
|Net increase of deposit of the insured and|||
||0.00||
|investment|||
|Net increase of income from disposal of|||
||0.00|0.00|
|trading financial assets|||
|Cash received from interest and|||
||23,827,215.54|16,317,409.74|
|commissions|||
|Net increase of loans from banks and other|||
||0.00|0.00|
|financial institutions|||
|Net increase of redemption capital|0.00|0.00|
|Tax refunds|14,612,922.49|0.00|
|Other cash received concerning operating|||
||207,915,740.34|330,693,093.98|
|activities|||
|Subtotal of cash inflow from operating|||
||1,181,952,512.63|615,082,498.87|
|activities|||
|Cash paid for purchase of goods and|||
||946,283,803.58|229,190,665.11|
|acceptance of labor service|||
|Net increase of loans to customers and|||
||-15,979,866.00|28,502,745.66|
|advances|||

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Item|Amount of the current period|Amount of the previous period|
|Net increase of accounts due to the Central|||
||0.00|0.00|
|Bank and other financial institutions|||
|Cash paid for compensation pay-outs of|||
||0.00|0.00|
|original insurance contracts|||
|Cash paid for interest and commissions|423,331.00|0.00|
|Cash paid as policy dividends|0.00|0.00|
|Cash paid to and on behalf of employees|44,575,412.97|40,403,312.20|
|Taxes and dues paid|98,500,207.88|64,518,837.71|
|Other cash paid concerning operating|||
||212,531,819.79|313,164,231.97|
|activities|||
|Subtotal of cash outflow for operating activities|1,286,334,709.22|675,779,792.65|
|Net cash flow arising from operating activities|-104,382,196.59|-60,697,293.78|
|II. Cash flow arising from operating activities:|||
|Cash received from withdrawal of|||
||2,008,400,000.00|1,075,100,402.78|
|investment|||
|Cash received from acquisition of|||
||13,477,970.15|9,518,204.61|
|investment income|||
|Net cash received from disposal of fixed|||
|assets, intangible assets and other long-term|20,100.00|0.00|
|assets|||
|Net cash received from disposal of|||
||0.00|0.00|
|subsidiaries and other operating units|||
|Other cash received concerning investment|||
||0.00|0.00|
|activities|||
|Subtotal of cash inflow from investment|||
||2,021,898,070.15|1,084,618,607.39|
|activities|||
|Cash paid for purchase and construction of|||
|fixed assets, intangible assets and other|7,506,324.71|8,041,823.48|
|long-term assets|||
|Cash paid for investment|2,044,679,000.00|1,039,450,070.26|
|Net increase of mortgage loans|0.00|0.00|
|Net cash paid for acquisition of|||
||0.00|0.00|
|subsidiaries and other operating units|||
|Other cash paid concerning investment|||
||0.00|0.00|
|activities|||
|Subtotal of cash outflow for investment|||
||2,052,185,324.71|1,047,491,893.74|
|activities|||

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Item|Amount of the current period|Amount of the previous period|
|Net cash flow arising from investment activities|-30,287,254.56|37,126,713.65|
|III. Cash flow arising from financing activities:|||
|Cash received from investment absorption|0.00|0.00|
|Therein: Cash received by subsidiaries|||
|from investment absorption of the minority|0.00|0.00|
|shareholders|||
|Cash received from obtainment of loans|266,000,000.00|40,000,000.00|
|Cash received from issuance of bonds|0.00|0.00|
|Other cash received concerning financing|||
||250,000,000.00|0.00|
|activities|||
|Subtotal of cash inflow from financing|||
||516,000,000.00|40,000,000.00|
|activities|||
|Cash paid for repayment of debts|78,049,280.96|40,000,000.00|
|Cash paid for distribution of dividends and|||
||9,295,476.51|7,672,883.90|
|profit or for repayment of interest|||
|Therein: Dividends and profit paid by|||
||0.00|0.00|
|subsidiaries to minority shareholders|||
|Other cash paid concerning financing|||
||240,000.00|0.00|
|activities|||
|Subtotal of cash outflow for financing activities|87,584,757.47|47,672,883.90|
|Net cash flow arising from financing activities|428,415,242.53|-7,672,883.90|
|IV. Influence of exchange rate fluctuations on|||
||7.39|-300.38|
|cash and cash equivalents|||
|V. Net increase in cash and cash equivalents|293,745,798.77|-31,243,764.41|
|Plus: Period-beginning balance of cash and|||
||335,593,493.81|453,132,467.18|
|cash equivalents|||
|VI. Period-End balance of cash and cash|||
||629,339,292.58|421,888,702.77|
|equivalents|||

Legal representative: Wang Li Person in charge of accounting work: Liu Zhijun Person responsible for accounting institution: Ying Huadong 6. Cash Flow Statement of the Parent Company
Prepared by: Shenzhen SEG Co., Ltd.
Unit: CNY
||||
|-|-|-|
|Item|Amount of the current period|Amount of the previous period|
|I. Cash flow arising from operating activities:|||

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Item|Amount of the current period|Amount of the previous period|
|Cash received from selling of goods and|||
||56,440,164.28|58,022,193.08|
|provision of labor service|||
|Tax refunds|0.00|0.00|
|Other cash received concerning operating|||
||380,734,537.10|197,795,988.43|
|activities|||
|Subtotal of cash inflow from operating|||
||437,174,701.38|255,818,181.51|
|activities|||
|Cash paid for purchase of goods and|||
||13,854,524.96|14,683,864.44|
|acceptance of labor service|||
|Cash paid to and on behalf of employees|16,227,816.49|17,576,097.99|
|Taxes and dues paid|72,620,128.50|46,776,395.61|
|Other cash paid concerning operating|||
||424,319,316.44|248,655,830.62|
|activities|||
|Subtotal of cash outflow for operating activities|527,021,786.39|327,692,188.66|
|Net cash flow arising from operating activities|-89,847,085.01|-71,874,007.15|
|II. Cash flow arising from operating activities:|||
|Cash received from withdrawal of|||
||1,824,000,000.00|855,840,000.00|
|investment|||
|Cash received from acquisition of|||
||12,123,227.48|14,480,921.32|
|investment income|||
|Net cash received from disposal of fixed|||
|assets, intangible assets and other long-term|0.00|0.00|
|assets|||
|Net cash received from disposal of|||
||0.00|0.00|
|subsidiaries and other operating units|||
|Other cash received concerning investment|||
||0.00|0.00|
|activities|||
|Subtotal of cash inflow from investment|||
||1,836,123,227.48|870,320,921.32|
|activities|||
|Cash paid for purchase and construction of|||
|fixed assets, intangible assets and other|689,269.32|807,911.00|
|long-term assets|||
|Cash paid for investment|1,864,000,000.00|821,965,751.44|
|Net cash paid for acquisition of|||
||0.00|0.00|
|subsidiaries and other operating units|||
|Other cash paid concerning investment|||
||0.00|0.00|
|activities|||

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Item|Amount of the current period|Amount of the previous period|
|Subtotal of cash outflow for investment|||
||1,864,689,269.32|822,773,662.44|
|activities|||
|Net cash flow arising from investment activities|-28,566,041.84|47,547,258.88|
|III. Cash flow arising from financing activities:|||
|Cash received from investment absorption|0.00|0.00|
|Cash received from obtainment of loans|180,000,000.00|0.00|
|Cash received from issuance of bonds|0.00|0.00|
|Other cash received concerning financing|||
||250,000,000.00|0.00|
|activities|||
|Subtotal of cash inflow from financing|||
||430,000,000.00|0.00|
|activities|||
|Cash paid for repayment of debts|8,000,000.00|0.00|
|Cash paid for distribution of dividends and|||
||1,467,733.34|0.00|
|profit or for repayment of interest|||
|Other cash paid concerning financing|||
||0.00|0.00|
|activities|||
|Subtotal of cash outflow for financing activities|9,467,733.34|0.00|
|Net cash flow arising from financing activities|420,532,266.66|0.00|
|IV. Influence of exchange rate fluctuations on|||
||7.39|-300.38|
|cash and cash equivalents|||
|V. Net increase in cash and cash equivalents|302,119,147.20|-24,327,048.65|
|Plus: Period-beginning balance of cash and|||
||173,141,378.64|296,491,241.42|
|cash equivalents|||
|VI. Period-end balance of cash and cash|||
||475,260,525.84|272,164,192.77|
|equivalents|||

Legal representative: Wang Li Person in charge of accounting work: Liu Zhijun Person responsible for accounting institution: Ying Huadong 7. Consolidated Statement of Changes in Owners' Equity
Prepared by: Shenzhen SEG Co., Ltd.
Amount of the current period
Unit: CNY
|||||
|-|-|-|-|
||Amount of the current period|||
|Item||||
||Owners' equity attributable to the parent company|Minority|Total|

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||latipacpu-diaP|)latipacerahsro(||latipaclanoitiddA|evreser|yrusaert:sseL|serahs|evreserlaicepS||evresersulpruS|ksirlareneG|noisivorp||stiforpdeniateR|srehtO|sharehold|owners'|
||||||||||||||||||ers' equity|equity|
|I. Balance of the previous|784,799|||404,593,||||||102,912||||-42,080,|||185,584,5|1,435,808,|
|year-end|,010.00|||024.05||||||,835.67||||494.64|||12.58|887.66|
|Plus: Changes due to|||||||||||||||||||
|alteration of accounting|||||||||||||||||||
|policies|||||||||||||||||||
|Correction to errors|||||||||||||||||||
|of the previous period|||||||||||||||||||
|Others|||||||||||||||||||
|II. Opening balance of the|784,799|||404,593,||||||102,912||||-42,080,|||185,584,5|1,435,808,|
|current year|,010.00|||024.05||||||,835.67||||494.64|||12.58|887.66|
|III. Increase and decrease of the|||||||||||||||||||
|||||-48,483.||||||||||37,645,8|||-2,952,89|34,644,467|
|current period (Fill in ―–‖ for|||||||||||||||||||
|||||29||||||||||42.28|||1.72|.27|
|decrease)|||||||||||||||||||
|||||||||||||||37,645,8|||14,178,93|51,824,780|
|i. Net profits|||||||||||||||||||
|||||||||||||||42.28|||8.09|.37|
|||||-48,483.|||||||||||||-24,336.3||
|ii. Other comprehensive income||||||||||||||||||-72,819.60|
|||||29|||||||||||||1||
|Subtotal of the||||-48,483.||||||||||37,645,8|||14,154,60|51,751,960|
|above-mentioned items i and ii||||29||||||||||42.28|||1.78|.77|
|iii. Capital invested or|||||||||||||||||||
|decreased by owners|||||||||||||||||||
|1. Capital invested by owners|||||||||||||||||||
|2. Amount of share-based|||||||||||||||||||
|payment recorded into owners'|||||||||||||||||||
|equity|||||||||||||||||||
|3. Others|||||||||||||||||||
||||||||||||||||||-17,107,4|-17,107,49|
|iv. Profit distribution|||||||||||||||||||
||||||||||||||||||93.50|3.50|
|1. Accrual of earned surplus|||||||||||||||||||
|2. Accrual of general risk|||||||||||||||||||
|provision|||||||||||||||||||
|3. Amount distributed to|||||||||||||||||-17,107,4|-17,107,49|
|owners (or shareholders)|||||||||||||||||93.50|3.50|
|4. Others|||||||||||||||||||

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
|||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Amount of the current period|||||||||||||||||
||Owners' equity attributable to the parent company|||||||||||||||||
|||latipacpu-diaP|)latipacerahsro(|latipaclanoitiddA|evreser|yrusaert:sseL|serahs|evreserlaicepS||evresersulpruS|ksirlareneG|noisivorp||stiforpdeniateR|srehtO|Minority|Total|
|Item||||||||||||||||||
|||||||||||||||||sharehold|owners'|
|||||||||||||||||ers' equity|equity|
|v. Internal carrying forward of||||||||||||||||||
|owners' equity||||||||||||||||||
|1. Capital reserve transferred to||||||||||||||||||
|increase capital (or share||||||||||||||||||
|capital)||||||||||||||||||
|2. Surplus reserve transferred to||||||||||||||||||
|increase capital (or share||||||||||||||||||
|capital)||||||||||||||||||
|3. Surplus reserve||||||||||||||||||
|compensating losses||||||||||||||||||
|4. Others||||||||||||||||||
|vi. Special reserve||||||||||||||||||
|1. Accrual of the current period||||||||||||||||||
|2. Amount utilized in the||||||||||||||||||
|current period||||||||||||||||||
|vii. Others||||||||||||||||||
|IV. Balance of the current|784,799|||404,544,|||||102,912||||-4,434,6|||182,631,6|1,470,453,354.93|
|period-end|,010.00|||540.76|||||,835.67||||52.36|||20.86||

 Amount of the previous year
Unit: CNY
|||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Amount of the previous year|||||||||||||||||
||Owners' equity attributable to the parent company|||||||||||||||||
|||latipacpu-diaP|)latipacerahsro(||evreserlatipaC|yrusaert:sseL|serahs|evreserlaicepS||evresersulpruS|ksirlareneG|noisivorp||stiforpdeniateR|srehtO|Minority|Total|
|Item||||||||||||||||||
|||||||||||||||||sharehold|owners'|
|||||||||||||||||ers' equity|equity|
|I. Balance of the previous|784,79|||9404,380,|||||102,912||||-96,419,|||176,705,7|1,372,378,|
|year-end|,010.0|||0 330.57|||||,835.67||||229.99|||83.81|730.06|
|Plus: Retroactive adjustment||||||||||||||||||
|due to merger of enterprises under||||||||||||||||||
|the control of the same entity||||||||||||||||||

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
|||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Amount of the previous year|||||||||||||||||
||Owners' equity attributable to the parent company|||||||||||||||||
|||latipacpu-diaP|)latipacerahsro(||evreserlatipaC|yrusaert:sseL|serahs|evreserlaicepS||evresersulpruS|ksirlareneG|noisivorp||stiforpdeniateR|srehtO|Minority|Total|
|Item||||||||||||||||||
|||||||||||||||||sharehold|owners'|
|||||||||||||||||ers' equity|equity|
|Plus: Changes due to||||||||||||||||||
|alteration of accounting policies||||||||||||||||||
|Correction to errors of||||||||||||||||||
|the previous period||||||||||||||||||
|Others||||||||||||||||||
|II. Opening balance of the current|784,799|||404,380,|||||102,912||||-96,419,|||176,705,7|1,372,378,|
|year|,010.00|||330.57|||||,835.67||||229.99|||83.81|730.06|
|III. Increase and decrease of the||||||||||||||||||
|||||-114,23|||||||||39,674,0|||-1,312,26|38,247,560|
|current period (Fill in ―–‖ for||||||||||||||||||
|||||8.75|||||||||66.28|||7.26|.27|
|decrease)||||||||||||||||||
||||||||||||||39,674,0|||8,606,172|48,280,238|
|i. Net profits||||||||||||||||||
||||||||||||||66.28|||.07|.35|
|||||-114,23||||||||||||-57,342.4|-171,581.1|
|ii. Other comprehensive income||||||||||||||||||
|||||8.75||||||||||||3|8|
|Subtotal of the above-mentioned||||-114,23|||||||||39,674,0|||8,548,829|48,108,657|
|items i and ii||||8.75|||||||||66.28|||.64|.17|
|iii. Capital invested or decreased||||||||||||||||-791,696.|-791,696.9|
|by owners||||||||||||||||90|0|
|||||||||||||||||-791,696.|-791,696.9|
|1. Capital invested by owners||||||||||||||||||
|||||||||||||||||90|0|
|2. Amount of share-based||||||||||||||||||
|payment recorded into owners'||||||||||||||||||
|equity||||||||||||||||||
|3. Others||||||||||||||||||
|||||||||||||||||-9,069,40|-9,069,400.|
|iv. Profit distribution||||||||||||||||||
|||||||||||||||||0.00|00|
|1. Accrual of surplus reserve||||||||||||||||||
|2. Accrual of general risk||||||||||||||||||
|provision||||||||||||||||||
|3. Amount distributed to owners||||||||||||||||-9,069,40|-9,069,400.|
|(or shareholders)||||||||||||||||0.00|00|
|4. Others||||||||||||||||||

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
|||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Amount of the previous year|||||||||||||||||
||Owners' equity attributable to the parent company|||||||||||||||||
|||latipacpu-diaP|)latipacerahsro(||evreserlatipaC|yrusaert:sseL|serahs|evreserlaicepS||evresersulpruS|ksirlareneG|noisivorp||stiforpdeniateR|srehtO|Minority|Total|
|Item||||||||||||||||||
|||||||||||||||||sharehold|owners'|
|||||||||||||||||ers' equity|equity|
|v. Internal carrying forward of||||||||||||||||||
|owners' equity||||||||||||||||||
|1. Capital reserve transferred to||||||||||||||||||
|increase capital (or share capital)||||||||||||||||||
|2. Surplus reserve transferred to||||||||||||||||||
|increase capital (or share capital)||||||||||||||||||
|3. Surplus reserve compensating||||||||||||||||||
|losses||||||||||||||||||
|4. Others||||||||||||||||||
|vi. Special reserve||||||||||||||||||
|1. Accrual of the current period||||||||||||||||||
|2. Amount utilized in the current||||||||||||||||||
|period||||||||||||||||||
|vii. Others||||||||||||||||||
|IV. Balance of the current|784,799|||404,266,|||||102,912||||-56,745,|||175,393,5|1,410,626,|
|period-end|,010.00|||091.82|||||,835.67||||163.71|||16.55|290.33|

 Legal representative: Wang Li Person in charge of accounting work: Liu Zhijun Person responsible for accounting institution: Ying Huadong 8. Statement on Changes of Owners' Equity of the Parent Company
Prepared by: Shenzhen SEG Co., Ltd.
Amount of the current period
Unit: CNY
||||||||||
|-|-|-|-|-|-|-|-|-|
||Amount of the current period||||||||
||Paid-up|||||Generalriskprovision|||
||||Less:|||||Total|
|Item|capital (or|Capital||Special|Surplus||Retained||
||||treasury|||||owners'|
||share|reserve||reserve|reserve||profits||
||||shares|||||equity|
||capital)||||||||
|I. Ending balance of the previous|784,799,01|405,652,89|||102,912,83||-55,097,96|1,238,266,|
|year|0.00|3.32|||5.67||2.63|776.36|
|Plus: Changes due toalteration of accounting policies|||||||||

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
||||||||||
|-|-|-|-|-|-|-|-|-|
||Amount of the current period||||||||
||Paid-up||||||||
||||Less:|||General||Total|
|Item|capital (or|Capital||Special|Surplus||Retained||
||||treasury|||risk||owners'|
||share|reserve||reserve|reserve||profits||
||||shares|||provision||equity|
||capital)||||||||
|Correction to errors of|||||||||
|the previous period|||||||||
|Others|||||||||
|II. Opening balance of the|784,799,01|405,652,89|||102,912,83||-55,097,96|1,238,266,|
|current year|0.00|3.32|||5.67||2.63|776.36|
|III. Increase and decrease of the|||||||||
||||||||42,870,699|42,870,699|
|current period (Fill in ―–‖ for|||||||||
||||||||.79|.79|
|decrease)|||||||||
||||||||42,870,699|42,870,699|
|i. Net profits|||||||||
||||||||.79|.79|
|ii. Other comprehensive income|||||||||
|Subtotal of the above-mentioned|||||||42,870,699|42,870,699|
|items i and ii|||||||.79|.79|
|iii. Capital invested or decreased|||||||||
|by owners|||||||||
|1. Capital invested by owners|||||||||
|2. Amount of share-based|||||||||
|payment recorded into owners'|||||||||
|equity|||||||||
|3. Others|||||||||
|iv. Profit distribution|||||||||
|1. Accrual of earned surplus|||||||||
|2. Accrual of general risk|||||||||
|provision|||||||||
|3. Amount distributed to owners|||||||||
|(or shareholders)|||||||||
|4. Others|||||||||
|v. Internal carrying forward of|||||||||
|owners' equity|||||||||
|1. Capital reserve transferred to|||||||||
|increase capital (or share capital)|||||||||
|2. Surplus reserve transferred to|||||||||
|increase capital (or share capital)|||||||||

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
||||||||||
|-|-|-|-|-|-|-|-|-|
||Amount of the current period||||||||
||Paid-up||||||||
||||Less:|||General||Total|
|Item|capital (or|Capital||Special|Surplus||Retained||
||||treasury|||risk||owners'|
||share|reserve||reserve|reserve||profits||
||||shares|||provision||equity|
||capital)||||||||
|3. Surplus reserve compensating|||||||||
|losses|||||||||
|4. Others|||||||||
|vi. Special reserve|||||||||
|1. Accrual of the current period|||||||||
|2. Amount utilized in the current|||||||||
|period|||||||||
|vii. Others|||||||||
|IV. Balance of the current|784,799,01|405,652,89|||102,912,83||-12,227,26|1,281,137,476.15|
|period-end|0.00|3.32|||5.67||2.84||

 Amount of the previous year
Unit: CNY
||||||||||
|-|-|-|-|-|-|-|-|-|
||Amount of the previous year||||||||
||Paid-up||||||||
||||Less:|||General||Total|
|Item|capital (or|Capital||Special|Surplus||Retained||
||||treasury|||risk||owners'|
||share|reserve||reserve|reserve||profits||
||||shares|||provision||equity|
||capital)||||||||
|I. Ending balance of the previous|784,799,01|405,652,89|||102,912,83||-106,113,0|1,187,251,|
|year|0.00|3.32|||5.67||41.79|697.20|
|Plus: Changes due to|||||||||
|alteration of accounting policies|||||||||
|Correction to errors of|||||||||
|the previous period|||||||||
|Others|||||||||
|II. Opening balance of the current|784,799,01|405,652,89|||102,912,83||-106,113,0|1,187,251,|
|year|0.00|3.32|||5.67||41.79|697.20|
|III. Increase and decrease of the|||||||||
||||||||43,115,441|43,115,441|
|current period (Fill in ―–‖ for|||||||||
||||||||.85|.85|
|decrease)|||||||||
||||||||43,115,441|43,115,441|
|i. Net profits|||||||||
||||||||.85|.85|
|ii. Other comprehensive income|||||||||
|Subtotal of the above-mentioned|||||||43,115,441|43,115,441|

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
||||||||||
|-|-|-|-|-|-|-|-|-|
||Amount of the previous year||||||||
||Paid-up||||||||
||||Less:|||General||Total|
|Item|capital (or|Capital||Special|Surplus||Retained||
||||treasury|||risk||owners'|
||share|reserve||reserve|reserve||profits||
||||shares|||provision||equity|
||capital)||||||||
|items i and ii|||||||.85|.85|
|iii. Capital invested or decreased|||||||||
|by owners|||||||||
|1. Capital invested by owners|||||||||
|2. Amount of share-based|||||||||
|payment recorded into owners'|||||||||
|equity|||||||||
|3. Others|||||||||
|iv. Profit distribution|||||||||
|1. Accrual of earned surplus|||||||||
|2. Accrual of general risk|||||||||
|provision|||||||||
|3. Amount distributed to owners|||||||||
|(or shareholders)|||||||||
|4. Others|||||||||
|v. Internal carrying forward of|||||||||
|owners' equity|||||||||
|1. Capital reserve transferred to|||||||||
|increase capital (or share capital)|||||||||
|2. Surplus reserve transferred to|||||||||
|increase capital (or share capital)|||||||||
|3. Surplus reserve compensating|||||||||
|losses|||||||||
|4. Others|||||||||
|vi. Special reserve|||||||||
|1. Accrual of the current period|||||||||
|2. Amount utilized in the current|||||||||
|period|||||||||
|vii. Others|||||||||
|IV. Balance of the current|784,799,01|405,652,89|||102,912,83||-62,997,59|1,230,367,|
|period-end|0.00|3.32|||5.67||9.94|139.05|

Legal representative: Wang Li Person in charge of accounting work: Liu Zhijun Person responsible for accounting institution: Ying Huadong
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.III． Company Profile
1. Company History
Shenzhen SEG Co., Ltd. (hereinafter referred to as "the Company" or "This Company") was incorporated on July 16th, 1996 through public offering with Shenzhen SEG Group Co., Ltd. as the sole initiator upon the approval of relevant state and local authorities of Shenzhen in accordance with relevant provisions in the Company Law of the People's Republic of China, acquiring a Business License for Enterprises as Legal Person (SHEN SI ZI N16886) with the registration number of 440301103573251. Upon the approval from the departments for state and local securities administration of Shenzhen, the Company's B share and A share were first listed and traded on Shenzhen Stock Exchange in July and December 1996, respectively.
A resolution on June 7th, 2006 was approved at a general meeting of shareholders on the share merger reform of the Company. According to the plan on the fixed conversion of capital public reserve into increase of share capital, the Company distributed such converted and increased capital share to shareholders of the tradable A-share. Such shareholders obtained 4.6445 shares of converted and increased capital share for each 10 shares, which totaled 40,233,322 shares of converted and increased capital share. As a result, the relevant non-tradable A shares were also authorized to be listed and circulated. Among the converted and increased share capital obtained by shareholders of the tradable A-share, 6,997,054 shares were received due to the Company's share capital expansion and the remaining 33,236,268 shares were the consideration paid to the tradable A-share shareholders by non-tradable A-share shareholders under fixed arrangements.
Up to June 30th, 2010, the total share capital of the Company had amounted to 784,799,010 shares, including 35,464 restricted shares and 784,763,546 unrestricted shares.
2. Nature of Business
The Company belongs to the business services industry.
3. Business Scope
Business scope: domestic commerce, supplies and sales of goods and materials (excluding commodities under special operation, control and sale), engaging in other industries as may be applied for with specific projects, economic information consultancy, property leasing, real estate brokerage, and operation of SEG professional electronics markets (licenses for special markets shall be specially applied for). Location of registration: Floor 31 Tower A, Qunxing Plaza, Huaqiang Road (N), Futian district, Shenzhen.
4. Major Products and Services
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. The Company provides primarily leasing service and other services in the tertiary industry, as well as operation and management of the specialized electronics market.
5. Organizational Structure of the Company
The Company exercises the general manager responsibility system under the leadership of the board of directors, with the general meeting of shareholders being the supreme authority. In line with the business development, the Company has set up departments for strategic operation, investment development, customer relationships, enterprise operation and management, risk control, project development, human resources, finance and auditing, and the general office.
IV. Significant Accounting Policies, Accounting Estimates and Errors of the Previous Period 1. Basis for Preparing the Financial Statements
On the basis of going concern and the transactions and events that have actually occurred, the Company has conducted confirmation and measurement in accordance with the Accounting Standards for Business Enterprises (ASBE)— Basic Standard and 38 specific standards enacted on February 15, 2006, the ensuing application guidance, interpretation and other relevant regulations of ASBE (hereinafter collectively called "the ASBE"), and the Rules for Information Disclosure and Report Preparation by Companies Offering Securities to the Public No. 15— General Regulations on Financial Reports (Revision 2010) formulated by China Securities Regulatory Commission (CSRC). The financial statements have been prepared on such a basis.
2. Statement on Compliance with the ASBE
The financial statements prepared by the Company comply with the requirements of the ASBE and truthfully and completely reflect the financial position, operating results, and cash flows of the Company.
3. Accounting Period
A fiscal year begins on January 1st and ends on December 31st in the Gregorian calendar.
4. Accounting Currency
CNY is the accounting currency of the financial statements of the Company.
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. 5. Accounting Methods for Mergers of Enterprises under the Control of the Same Entity and Those not the Under Control of the Same Entity
(1 ) Mergers of the Enterprises Under the Control of the Same Entity
① Separate financial statements
In a merger of the enterprises under the control of the same entity, if the Company pays cash, transfers non-cash assets or bears debts, and issues equity securities as consideration of the merger, the book value of the shares of the owners' equity obtained from a target company on the merger date is taken as the initial investment cost of the long-term equity investment. Capital public reserve is adjusted for the difference between the initial investment cost of the long-term equity investment and the merger consideration paid. In case where the capital public reserve is not sufficient for off-setting, retained profits are adjusted.
All direct relevant expenses incurred during the merger, including fees paid for auditing, evaluation and legal service for the merger, are recorded into current gains and losses at the time when the fees occur. If the target company has consolidated financial statements, the initial investment cost of the long-term equity investment shall be determined based on the owners' equity in the target's consolidated financial statements on the merger date.② Consolidated financial statements
The assets and liabilities acquired by the merging party in the merger are calculated according to the book value of the target company on the merger date. When accounting policies of each target company are not consistent with those of the Company, the Company makes adjustments in accordance with its own accounting policies on the merger date and then confirms in accordance with the ASBE.
(2) Mergers of the Enterprises Not Under the Control of the Same Entity
For a merger of enterprises not under the control of the same entity, the merger costs are assets paid, liabilities incurred or assumed, and fair value of the equity securities issued by the Company for acquiring control of the target company on the day of acquisition. In case where future events that are likely to influence the merger cost are agreed in a merger contract, a future event is also recorded into costs for the merger if it is likely to occur on the date of acquisition and its influence on the merger costs can be measured reliably in amount.
The auditing, legal, appraisal and consulting, and other management expenses paid by the Company during the merger shall be recorded in gains and losses of the current period when they are incurred. The transaction expenses paid by the Company as the acquirer for equity securities or debt securities issued as consideration for
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. the merger shall be recorded in the initially recognized amount of equity or debt securities.
Where the merger costs outnumber the fair value of the identifiable net assets acquired from the target company in the merger, the difference is recognized as goodwill. Where the merger costs are lower than the fair value of the identifiable net assets acquired from the target company in the merger and a review confirms the same situation, the difference is recorded into current gains and losses.
For a merger of enterprises not under the same control that is implemented through multiple transactions, the separate and consolidated financial statements shall be treated with different accounting methods:
①In separate financial statements, initial investment costs of the merger are identified as the sum of the book value of equity held of the target before the date of acquisition and the newly increased investment cost on the date of acquisition. If the equity held of the target before the date of acquisition involves any other comprehensive income, the involved other comprehensive income (for example, the profits arising from changes in fair value of the financial assets available for sale and recorded into capital public reserve) shall be recorded in investment income of the current period.
② In consolidated financial statements, the equity held of the target before the date of acquisition shall be re-measured at fair value of the equity on the date of acquisition, and differences between fair value and book value of the equity shall be counted into the current investment income. If the equity held of the target before the date of acquisition involves other comprehensive income, the involved income shall be converted into investment income of the current period to which the date of acquisition belongs.
6. Methods of Preparing Consolidated Financial Statements
(1) Methods of Preparing Consolidated Financial Statements
The scope of the consolidated financial statements of the Company is determined by using the control-based model, and all subsidiaries are consolidated.
The accounting policies and accounting period adopted by all subsidiaries included in the consolidation scope must be consistent with those of the Company. Otherwise, the Company makes necessary adjustments according to its own accounting policies and accounting period when preparing the consolidated financial statements. The consolidated financial statements are prepared by the Company based on individual financial statements of the Company and its subsidiaries as well as other relevant materials after the long-term equity investment in the subsidiaries have been adjusted by the equity method.
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. During the consolidation, the influence on the consolidated balance sheet, the consolidated profit statement, the consolidated cash flow statement and the consolidated statement of changes in owners' equity, by internal transactions between the Company and its subsidiaries and among the subsidiaries, is offset.
When the current losses undertaken by minority shareholders of a subsidiary exceed the proportion enjoyed by the minority shareholders in the owners' equity of the subsidiary at the period beginning, the balance should still be offset against the minority shareholders' equity.
In the report period, the period-beginning amount in the consolidated balance sheet is adjusted if a subsidiary is increased through mergers of enterprises under the control of the same entity. The income, expenses and profits of the subsidiary from the beginning of the current period when it was merged to the end of the report period are included in the consolidated profit statement. The cash flow of the subsidiary from the beginning of the current period when it was merged to the end of the report period is included in the consolidated cash flow statement. During the report period, the period-beginning amount in the consolidated balance sheet is not adjusted if a subsidiary is increased through mergers of enterprises not under the control of the same entity. The income, expenses and profits of the subsidiary from the acquisition date to the end of the report period are included in the consolidated profit statement. The cash flow of the subsidiary from the acquisition date to the end of the report period is included in the consolidated cash flow statement.
If the Company disposes a subsidiary during the report period, the income, expenses and profits of the subsidiary from the period beginning to the disposal date are included in the consolidated profit statement and the cash flow of the subsidiary in the same period is included in the consolidated cash flow statement.
If the Company losses control of a subsidiary due to disposal of part of the equity investment or other reasons, the remaining equity shall be re-measured at fair value on the day when the Company losses control of the subsidiary. (Consideration received in connection with equity disposal+ Fair value of the remaining equity– Net assets that are calculated based on the original shareholding percentage since the day of acquisition) shall be recorded in investment income of the current period when the Company losses control of the subsidiary. Other comprehensive income in connection with the subsidiary's equity investment shall be translated to the current investment income when the Company losses control of the subsidiary.
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. (2) Accounting Methods on Relevant Disclosure for the Same Subsidiary's Equity Having Being Bought and Sold or Sold and Bought in Two Consecutive Fiscal Years
7. Standards for Determining Cash and Cash Equivalents
In the preparation of the cash flow statement, the Company's cash on hand and bank deposits available for payment at any time are recognized as cash. Investment that meets the four conditions of short term (to be mature within 3 months from the date of purchase), strong liquidity, ease of being converted into known cash, small risks of value fluctuations are recognized as cash equivalents.
8. Foreign Currency Business and Translation of Foreign Currency Financial Statements
(1) Foreign Currency Business
Foreign currency business is recorded in accounts after relevant amounts are translated into CNY according to the spot rate on the transaction date as the exchange rate for translation.
Balance of the monetary items in foreign currency is translated according to the spot rate on the balance sheet date while the resulted translation differences are all recorded into current gains and losses except the difference from the special foreign currency loans related to the assets whose purchase and construction meet the conditions for capitalization, which is dealt with according to the principles for capitalization of loan expenses. The non-monetary items in foreign currency measured by the historical cost method are still translated according to the spot rate on the transaction date and the amount in the accounting currency is not changed. The non-monetary items in foreign currency measured by fair value are translated according to the spot rate on the date of determining the fair value while the resulted translation difference is recorded into current gains and losses or into capital public reserve.
(2) Translation of Foreign Currency Financial Statements
The assets and liabilities items in the balance sheet are translated according to the spot rate on the balance sheet date. The owners' equity items other than the "retained profits" are translated according to the spot rate at the time they incurred. The income and expense items in the profit statement are translated according to the spot rate on the transaction date. Translation differences of foreign currency financial statements caused by the above-mentioned methods are listed separately under the owners' equity items in the balance sheet.
When an overseas operation is disposed, the translation difference of foreign currency financial statements related
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. to the overseas operation, which is listed under the owners' equity items in the balance sheet, is transferred from the owners' equity items to current gains and losses of the current period when the disposal is carried out. When an overseas operation is partly disposed, the translation difference is calculated according to the percentage of the disposal and is transferred to current gains and losses of the period when the disposal is carried out.
9. Financial Instruments
Financial instruments include financial assets, financial liabilities and equity instruments.
(1) Classification of Financial Instruments
According to purposes of acquiring the held financial assets and assuming financial debts, the management classifies them as follows: financial assets and liabilities measured according to fair value and whose changes are recorded into current gains and losses, including the trading financial assets or liabilities (and the financial assets or liabilities that can be directly assigned to be measured according to fair value and whose changes are recorded into current gains and losses); held-to-maturity investment; accounts receivable; financial assets available for sale; and other financial liabilities.
(2) Confirmation Basis for and Measurement Method for Financial Instruments
A. Financial assets (liabilities) measured by fair value and whose changes are recorded into current gains and losses
The fair value (after deducting the cash dividends declared but not yet distributed or bond interest that has its payment period due but not yet been received) is taken as the initial recognized amount at the time of obtainment. The interest or cash dividends expenses acquired during the time of holding are recognized as investment income and changes in fair value are recorded into current gains and losses at the end of the holding period.
At the time of disposal, the difference between fair value and the initial amount recorded in the account is recognized as investment income while the gains and losses from changes in fair value are adjusted at the same time.
B. Held-to-maturity investment
At the time of acquisition, the sum of fair value (after deducting the bond interest that has its payment period due but not yet been received) and relevant transaction expenses are taken as the initial recognized amount.
During the holding period, the interest income is calculated and recognized in accordance with the amortized cost
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. and the actual interest rate, which is recorded into investment income. The actual interest rate is determined at the time of acquisition and remains unchanged during the anticipated existence period or a shorter period applicable. At the time of disposal, the difference between the price of acquisition and book value of such investment is recorded into investment income.
C. Accounts receivable
For accounts receivable formed from selling of goods or provision of labor service by the Company and for the creditor's rights (including accounts receivable and other receivables) of other enterprises held by the Company other than the priced debt instruments in the active market, the price money in contracts or agreements receivable from the purchaser is taken as the initial recognized amount. For those of financing nature, their current value is taken as the initial recognized amount.
At the time of withdrawal or disposal, the difference between the price of acquisition and book value of such accounts receivable is recorded into current gains and losses.
D. Financial assets available for sale
The sum of fair value (after deducting the cash dividends declared but not yet distributed or bond interest that has its payment period due but not yet been received) and relevant transaction expenses are taken as the initial recognized amount at the time of obtainment.
The interest or cash dividends obtained during the time of holding are recognized as investment income. Such assets are measured at fair value by the end of the holding period and changes in fair value are recorded into capital public reserve (other capital public reserve).
At the time of disposal, the difference between the price of acquisition and book value of such financial assets is recorded into gains and losses of investment. Meanwhile, the amount of the disposed part of the assets originally recorded in the accumulative amount of changes in fair value of owners' equity is transferred out and recorded into gains and losses of investment.
E. Other financial liabilities
The sum of fair value of such assets and relevant transaction expenses is taken as the initial recognized amount. The amortized costs are adopted in the subsequent measurement.
(3) Confirmation Basis and Measurement Methods of Transfers of Financial Assets
In cases where the Company has financial assets transfers, if almost all risks and returns in the ownership of the financial assets are transferred to a transferee, the confirmation of such financial assets is terminated, and if almost all risks and returns in the ownership of such financial assets are retained, the confirmation of such financial assets
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. is not terminated.
In judging whether a financial asset transfer meets the above conditions for termination of its confirmation, the substance over form principle is adopted. The Company divides financial assets transfers into complete and partial transfers. Where a complete transfer of financial assets meets the conditions for termination of confirmation, the difference of the following two amounts is recorded into current gains and losses.
① Book value of the transferred financial assets;
② The sum of the consideration received due to transfers and the accumulated amount of the changes in fair value originally recorded in owners' equity (involving the situation when the transferred financial assets are financial assets available for sale).
If a partial transfer of financial assets meets conditions for termination of confirmation, the total book value of the transferred financial assets is apportioned between the part with its confirmation terminated and that with its confirmation not terminated according to their relevant fair value while the difference between the following two amounts is recorded into current gains and losses:
①Book value of the part with its confirmation terminated;
② The sum of consideration of the part with its confirmation terminated and the part of the accumulated amount of the changes in fair value originally recorded in owners' equity corresponding to the part with its confirmation terminated (involving the situation when the transferred financial assets are financial assets available for sale). Where a financial assets transfer does not meet conditions for termination of confirmation, the confirmation of such financial assets is continued. The received consideration is confirmed as a financial liability.
(4) Conditions for Confirming the Termination of Financial Liabilities
If all or a part of current obligations of a financial liability are discharged, the confirmation of the financial liability or the part of it is terminated. If the Company signs an agreement with a creditor to substitute an existing financial liability by assuming a new financial liability and the contract terms for the new liability and the existing one are not consistent materially, confirmation of the existing financial liability is terminated and the new financial liability is confirmed in the meantime.
If material alteration has been made to all or a part of the contract terms of the existing financial liability, confirmation of the existing liability or the part of it is terminated and, in the meantime, the liability after the alteration is made is confirmed as a new financial liability.
If confirmation of all or a part of a financial liability is terminated, the difference between book value of the
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. liability with its confirmation terminated and the paid consideration (including non-cash assets transferred or new liabilities assumed) is recorded into current gains and losses.
If the Company buys back a part of a financial liability, the total book value of the liability is allocated on the buyback date according to the relative fair value of the part with its confirmation continued and that with its confirmation terminated. The difference between the book value allocated to the part with its confirmation terminated and the paid consideration (including non-cash assets or new liabilities assumed) is recorded into current gains and losses.
(5) Methods for Determining Fair Value of the Financial Assets and Liabilities
For financial assets and financial liabilities measured at fair value that exist in an active market, the Company determines their fair value based on the quotation in the active market. For those that do not exist in an active market, the Company estimates their fair value by using valuation techniques, such as referring to the prices applied in recent transactions which are conducted by well-informed and willing parties or the current fair value of other financial instruments of the same nature, or adopting the discounted cash flow (DCF) technique and the option pricing model. For those initially acquired or raw financial assets or the assumed financial liabilities, the Company determines their fair value based on the market price.
(6) Methods for Tests and Provisions for Impairment of Financial Assets (Excluding Accounts Receivable) The Company shall check on the balance sheet date the book value of financial assets excluding those measured at fair value and whose changes are recorded in current gains and losses. If there is any objective evidence indicating that these financial assets have impairment, impairment provisions shall be accrued.
The objective proof evidencing impairment of the financial assets includes but it not limited to the following: A. An issuer or debtor confronts serious financial difficulties;
B. A debtor breaches contract terms, such as default or delay in repaying interest or principals;
C. A creditor makes a concession to the debtor having financial difficulties for economic or legal causes; D. A debtor is likely to go bankrupt or make other financial reconstruction;
E. The financial assets can no longer be traded in an active market due to serious financial difficulties occurred to the issuer;
F. It cannot be identified whether there is impairment in the cash flow of a certain asset in a portfolio of financial assets. Its overall evaluation, however, based on the public data indicates that the estimated future cash
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. flow of the portfolio from its initial recognized amount has decreased and that the impairment is measurable. For instance, the portfolio debtor's affordability gradually deteriorates, the unemployment rate in the debtor's country or region goes up, prices of collateral in the debtor's region dive, or the industry the debtor engages in struggles. G. Material undesirable changes take place in the technical, market, economic or legal environments where issuers of the equity instruments lies their places of business, which results in investors of the equity instruments cannot recover their investment costs.
Specific methods for the impairment of financial assets are as follows:
(1). Impairment provisions for financial assets available for sale:
Available-for-sale financial assets are individually assessed for impairment. Objective evidence indicating that available-for-sale equity instruments have been impaired includes significant or non-temporary falls in fair value of investment on the equity instruments. Specific quantifying standards for this are as follows: The Company on the balance sheet date checks individually the investment on available-for-sale equity instruments. If fair value of the checked investment is less than50% (including50%) of its initial investment costs, then the investment is impaired.
In case of an impaired financial asset available for sale, even if confirmation of the asset is not terminated, the accumulated losses that were caused by falls in fair value and originally recorded directly into owners' equity are transferred out and recorded in current gains and losses. These out transferred accumulated losses equal to the balance of (Initial acquisition costs of financial assets available for sale– Recovered principals– Amortized amounts– Current fair value– Impairment losses originally recorded into gains and losses).
Regarding the available-for-sale debt instruments that have been confirmed to have impairment losses, the originally confirmed impairment losses are reversed to current gains and losses if fair value in the ensuing accounting period goes up and is objectively related to events occurred after the original impairment losses. As to the impaired investment on available-for-sale equity instruments, the instruments are reversed through equity when their value rises again. Whereas, investment on equity instruments cannot be reversed if the instruments are not quoted in an active market and their fair value cannot be reliably measured or if impairment losses occurred in the derivative financial assets that are pegged to the instruments and have to be settled through delivery of the instruments.
(2) Impairment provisions for held-to-maturity investment:
If there is any objective evidence indicating that a loss has occurred to the held-to-maturity investments, calculate
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. and confirm the impairment loss based on the difference between book value of these investments and current value of the expected future cash flow. If there is any evidence indicating that the investment value has recovered after provision, the originally confirmed impairment loss can be reversed and recorded in the current gains and losses. However, the reversed book value should not exceed amortized costs of the financial assets on the reversal date if impairment provision has not been made.
(7) Criteria of Specifying Changes in Holding Purposes or Power for Reclassifying Unmetered Held-to-maturity Investment into Financial Assets Available for Sale
10. Confirmation Criteria and Provision Method for Bad Debts of Accounts Receivable
(1) Provisions for Bad Debts of Accounts Receivable with a Significant Amount Individually
|||
|-|-|
|Criteria of determining whether an individual amount is||
||Top five accounts receivable|
|significant||
||Carry out an individual impairment test. If current value of the|
||expected future cash flow is less than its book value, a provision shall|
|Provision method for accounts receivable with a significant||
||be made for bad debts and be recorded in current gains and losses. The|
|amount individually and with individual provisions for bad||
||accounts receivable which has no impairment found in an individual|
|debts||
||test shall be recorded in bad debts provisions for the corresponding|
||portfolio.|

(2) Accounts Receivable for Which Bad Debt Provisions are Accrued by Portfolios:
||||
|-|-|-|
||Accounts receivable for||
|Name of portfolios|which bad debt provisions|Criteria for determining portfolios|
||are accrued by portfolios||
|||Accounts receivable that are found through analysis having no|
|||risk in recovery, such as deposits, shall be identified separately as|
||Age analysis of accounts||
|Credit exposure portfolios||a portfolio for which no provision is made for bad debts. The|
||receivable||
|||other accounts receivable shall be classified by account age into|
|||different portfolios based on credit risks.|

In the portfolios, is the method of accounts receivable age analysis applicable to provisions for bad debts?
√ Applicable□ Not applicable
||||
|-|-|-|
||Accrual percentage of accounts||
|Account receivable age||Accrual percentage of other accounts receivable|
||receivable||
|1-2 years|5.00%|5.00%|
|2-3 years|10.00%|10.00%|
|Over 3 years|20.00%|20.00%|

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. In the portfolios, is the percentage-of-receivables approach applicable to provisions for bad debts?
□ Applicable√ Not applicable
In the portfolios, are other approaches applicable to provisions for bad debts?
□ Applicable√ Not applicable
(3) Accounts Receivable with an Insignificant Amount Individually but with Individual Provisions for Bad Debts
|||
|-|-|
|Reasons for individual provisions for bad|Accounts receivable with an insignificant amount individually shall be tested|
|debts|individually if there is objective evidence indicating impairment in the accounts.|
||Bad debt provisions are accrued according to the difference between current value of|
|Approaches of provisions for bad debts||
||its expected future cash flow and its book value.|

11. Inventory
(1) Classification of Inventory
Inventory refers to the finished products or commercial products owned by the Company in daily activities for sale, the products in process, and the materials and supplies consumed in the process of manufacturing or provision of labor service. It mainly includes raw materials, working materials, materials for consigned processing, packaging materials, products in process, self-manufactured semi-finished products, finished products (goods on hand).
(2) Pricing Method for the Delivered Inventory
Pricing method: weighted average cost.
At the time of obtainment, inventory is measured at its initial costs, including costs of purchase, processing, and others. Its pricing is determined according to the weighted average method at the time of delivery.
(3) Basis for Determining the Net Realizable Value of Inventory and Accrual Methods of Provisions for Inventory Price Decline
After a complete counting and examination of the inventory at the end of the period, provisions for inventory price decline is accrued or adjusted according to lower of the inventory cost or the net realizable value. The net realizable value of the goods inventory directly for sale, such as finished products, goods on hand and materials
for sale, is recognized in regular production and operation according to the balance of (Estimated sale price of
such inventory– Estimated sale expenses– Relevant taxes and dues). That of the material inventory to be
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. processed is recognized in regular production and operation according to the balance of (Estimated sale price of the finished products produced– Estimated sale expenses– Relevant taxes and dues). That of the inventory held for the performing sale or service contracts is calculated on the basis of the contract price. Where quantities of the inventory exceed those ordered in the sale contract, net realizable value of the surplus of such inventory is calculated on the basis of the general sale price.
At the end of the period, provisions for inventory price decline are accrued according to individual inventory items. However, the decline provisions for inventory of larger quantities and lower unit price are accrued according to the type of the inventory. For the inventory involving the product series produced and sold in the same region, having identical or similar final uses or purposes, and being difficult to be measured separately from other items, the relevant decline provisions are accrued in a combined manner.
Where factors previously impacting recording of the reduction of inventory value are absent, the reduced amount is restored and reversed from amounts of the originally accrued provisions for inventory price decline. The reversed amount is recorded into current gains and losses.
(4) Stock-Taking System
Permanent stock-taking
(5) Amortization Methods For Low Value Consumables and Packaging Materials
Low-cost consumables:
One-off amortization
Packaging materials:
One-off amortization
12. Long-term Equity Investment
(1) Determination of Investment Costs
① For long-term equity investment formed through a merger of enterprises, its specific accounting policies can be referred to Note 2 to "5. Accounting Methods for Mergers of Enterprises under the Control of the Same Entity and Those not the Under Control of the Same Entity" (2) As to long-term equity investment acquired through other approaches and by cash payment, its actual paid purchase prices is taken as the initial investment cost. Fair
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. value of the issued equity securities is taken as the initial investment cost of long-term equity investment obtained from the issuance of equity securities. The value agreed in investment contracts or agreements (after deducting the cash dividends declared but not yet distributed or profits) is taken as the initial investment cost for long-term equity investment given by investors, unless the value agreed in investment contracts or agreements is not fair. Under premises that the non-monetary assets exchange is of commercial nature and that fair value of the assets received and given out in the exchange can be measured reliably, the initial investment cost of the long-term equity investment received in non-monetary assets exchange is determined on the basis of the fair value of the assets given out, unless there is concrete evidence indicating fair value of the received assets is more reliable. For the non-monetary assets exchange that does not meet the above premises, book value of the received assets and relevant taxes payable is taken as the initial investment cost of the long-term equity investment. The initial investment cost of the long-term equity investment obtained through debt restructuring is determined according to its fair value.
(2) Subsequent Measurement and Income Confirmation
① Subsequent measurement of the Company's long-term equity investment in its subsidiaries is conducted according to the cost accounting method. Such investment is adjusted according to the equity method in preparing consolidated financial statements. The cost accounting method is also applied to long-term equity investment that does not involve common control over or significant influence on the invested companies has no offer in an active market, and whose fair value cannot be reliably measured. The equity accounting method is adopted for long-term equity investment that involves common control over or significant influence on the invested companies. If the initial investment cost is greater than the investment, the Company should enjoy the difference with due shares of the fair value of the invested companies' discernible net assets and the initial investment cost of the long-term equity investment should not be adjusted. If the initial investment cost is smaller than the investment, the Company should enjoy the difference with the due shares of the fair value of the invested companies' discernible net assets and such difference is recorded into current gains and losses. Accounting of the changes in owners' equity other than net gains and losses of the invested companies is as follows: Regarding changes in owners' equity other than net gains and losses of the invested companies, under the circumstance that the percentages of shareholding remain unchanged, book value of the long-term equity investment is adjusted and capital public reserve (other capital public reserve) is increased or decreased with respect to the part enjoyed or assumed by the Company according to its percentage of shareholding. If a investee can provide consolidated financial statements
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. during the holding period, the accounting basis shall be the consolidated financial statements, net profits and other investment changes. B. Under equity method, the Company confirms investment income according to the cash dividends or profits enjoyed by the Company that the invested companies declare to distribute, except the actual amount paid when investment is acquired or the cash dividends and profits included in the consideration and declared but yet to be distributed. Under the equity method, when an investor recognizes its due share of the net profits or net losses of the investee, the investment gains and losses are confirmed on the following basis: A. Based on fair value of various recognizable assets of the investee at the time of acquiring investment; B. Confirm after the investee's net profits are adjusted; C. Offset the part calculated according to the shareholding percentage and belonging to the investor when there are gains and losses arising from internal transactions between the investor and the joint venture and between joint ventures. The Company shall abide by the following order when recognizing its share of the investee's losses: First, offset book value of the long-term equity investment. Second, if book value of the long-term equity investment is not sufficient for the offsetting, continue to confirm investment losses within the limit of the book value of other long-term equity that materially constitutes net investment into the invested companies and offset book value of long-term accounts receivable and others. Finally, if the enterprise still bears additional obligations as agreed in the investment contract or agreement after the above processing, expected liabilities are confirmed according to the anticipated obligations to be borne and recorded into current investment losses. Where the invested companies realize profits in later periods, the Company should make accounting in the reversed sequence against the above after deducting the shared losses not yet confirmed, reduce book balance of the confirmed expected liabilities, restore other long-term equity that materially constitutes net investment into the invested companies and book value of the long-term equity investment, and confirm investment income at the same time. 3. If the Company disposes its equity investment into subsidiaries step by step through multiple transactions and the terms, conditions and economic influences of the disposed meet one or more of the following conditions, the multiple transactions are treated as a package deal in accounting: (1) The transactions are entered into with simultaneous or just consideration of each other's influences; (2) Only the entirety of all transactions can achieve a complete business result. (3) An occurrence of a transaction depends on the occurrence of at least one another transaction. (4) A transaction is uneconomical when being viewed independently but becomes economical when being considered together with other transactions. If an enterprise losses control of a subsidiary due to disposal of a part of the equity investment or other reasons and the disposal transactions are not a package deal, the separate and the consolidated financial statements shall be differentiated to
conduct relevant accounting: (1) In spate financial statements, accounting of the disposed equity shall be
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. conducted according to stipulations in Accounting Standard for Business Enterprises No. 2— Long-term Equity Investments. Meanwhile, the remaining equity shall be recognized as long-term equity investment or other relevant financial assets according to its book value. Accounting of the remaining equity after disposal shall be conducted according to relevant stipulations on the conversion from cost method to equity method if such equity can still be used to exert common control over or significant influences on the original subsidiary. In consolidated financial statements, the remaining equity shall be re-measured based on fair value of the date when the enterprise losses the right of control. The balance of (Consideration received in connection with equity disposal+ Fair value of the remaining equity– Net assets that are calculated based on the original shareholding percentage since the day of acquisition) shall be recorded in investment income of the current period when the enterprise losses control of the subsidiary. Other comprehensive income in connection with the subsidiary's equity investment shall be translated to the current investment income when the enterprise losses control of the subsidiary. The enterprises shall in the Notes disclose fair value of the remaining equity on the date when losses the right of control and relevant profits gained or amounts lost because of re-measurement based on fair value. If various transactions related to disposal of the equity investment and through to loss of the control right are a package deal, the separate and the consolidated financial statements shall be differentiated to conduct relevant accounting: (1) In separate financial statements, all transactions are deemed as a transaction designed to dispose the subsidiary and loss the control right to conduct accounting. Investment into the subsidiary by the enterprise and the difference between the disposal price and the book value of disposal investment shall be recognized as current investment income in separate financial statements of the parent company. (2) In consolidated financial statements, the difference between each disposal price before loss of the control right and shares of the subsidiary's net assets corresponding to the disposal investment and enjoyed by the enterprise shall be recognized as other comprehensive income and simultaneously transferred to gains and losses of the current period when the control right is lost.
(3) Basis of Determining Whether the Invested Companies are Under Common Control or Significant Influences
As agreed in a contract, if the common control over a certain economic activity exists only with the unanimous agreement of the investors who need to share the control right in the important financial and operating decisions related to such economic activity, such investors are deemed as exercising joint control with other parities over the invested unit. If an investor has the power to participate in the decision making of the financial and operating matters of an enterprise but cannot control or jointly control with other parties the formation of such policies, then
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. such investor is deemed as being able to exercise significant influences over the invested companies.
(4) Methods for Tests of and Provisions for Impairment
On the balance sheet date, if there is any sign of impairment in long-term equity investment due to market price falls or deterioration of the investee's operating status, the recoverable amount of long-term equity investment shall be determined according to the higher of the net amount of (Fair value of the single long-term equity investment– Disposal expenses) or current value of the expected future cash flow of the long-term equity investment. Where the recoverable amount of the long-term equity investment is lower than its book value, book value of such assets may be reduced and booked in the recoverable amount. The reduced and booked amount is recognized as assets impairment losses and recorded in current gains and losses while the corresponding provisions are raised against the impaired assets. For long-term equity investment that is under significant influences, does not have offer in an active market and whose fair value cannot be reliably measured, its impairment losses are determined by the difference between its book value and the current value determined through discounting the future cash flow according to the current market return rate of similar financial assets. For other long-term equity investments facing impairment except the goodwill formed due to enterprise mergers, if measurement results of the recoverable amount indicate that such recoverable amount of the long-term equity investment is lower than its book value, the difference is recognized as impairment losses. For the long-term equity investment accounted through the cost method, consider whether there is impairment in long-term equity investment after the cash dividends or profit declared to be distributed by the investee are confirmed to be investment income. Once impairment losses of the long term equity investment are recognized, such losses will not be transferred back.
13. Investment Real Estate
Investment real estate refers to properties held to earn rent or increasing value of the capital or both and includes rights to use the land rented out and the land held for transfer after value increases, and buildings rented out. The Company takes costs of the investment real estate as entry value. Costs of the purchased investment real estate include purchase price, relevant taxes and dues, and other expenditures directly related to the asset. Costs of the self-built investment real estate consist of the necessary expenditures for building the asset to the expected condition for use.
The Company adopts the method of subsequent measurement at cost for the investment real estate, accrues
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. depreciation of or amortizes the buildings and land use rights based on their service lives and residual value rates. The following table lists the expected service life, residual value rate, and annual depreciation (amortization) rate of the investment real estate:
||||
|-|-|-|
|Category|Estimated service life (years)|Estimated rate of net residualvalue|
|Houses and buildings|20-40|5%|

 When use of the investment real estate is changed to self-use, the Company shall convert the investment real estate to fixed or intangible assets since the day of change. When use of the self-use real estate is changed to generate rent or capital appreciation, the Company shall convert the fixed or intangible asset to investment real estate since the day of change. Book value of the real estate prior to the conversion shall be entry value after the conversion.
For investment real estate facing impairment, the Company evaluates their recoverable amount and confirms relevant impairment losses if the recoverable amount is less than the book value.
Once impairment losses of the investment real estate are recognized, such losses will not be transferred back. If investment real estate is disposed of, or if it is withdrawn permanently from use and no economic benefit will be obtained from the disposal, the confirmation of the investment real estate shall be terminated. Income from the selling, transfer, abandonment or damage disposal of the investment real estate is recorded in current gains and losses after the book value and relevant taxes and dues of the investment real estate are deducted.
14. Fixed Assets
(1) Conditions for Confirming Fixed Assets
Fixed assets refer to tangible assets held for purposes of manufacturing goods, provision of labor services, leasing or operation and management and with a service life exceeding one fiscal year. A fix asset is confirmed when meeting the followingconditions:① Economic benefits arising from the fixed asset are likely to circulate into an enterprise; and② Costs of the fixed asset can be measured reliably.
(2) Confirmation Basis and Pricing Method for Fixed Assets Rented Through Financing
If a fixed asset rented by the Company meets one or more of the following standards, it is confirmed as a fix asset
rented through financing:① Ownership of a leasing asset is transferred to the Company when the lease term is
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. due.② The Company has the option to buy the leasing asset at a price which is expected to be far lower than fair value of the leasing asset on the date when the option becomes exercisable. Therefore, it can be reasonably determined that the option will be exercised on the lease beginningdate.③ Even if ownership of the leasing asset is not transferred, the lease term covers most of the service life of the leasing asset.④ Current value of the minimum lease payment paid by the Company on the lease beginning date almost amounts to all of the fair value of the leasing asset on the lease beginning date.⑤ The leasing asset is of special nature and only the Company can use it without major revamp. For the fix asset rented through financing, its entry value is the lower of the fair value of the leasing asset or the current value of the minimum lease payments on the lease beginning date. The amount of the minimum lease payments is taken as entry value of a long-term account payable, and their difference is taken as unrecognized financing expenses. The direct initial costs, such as commissions, attorneys' fees, travelling expenses and stamp duties attributable to a leasing item incurred during the process of lease negotiating and lease contract signing shall be recorded in value of the rented asset. The unrecognized financing expenses shall be amortized to each period during the lease term. In depreciation of the rented asset through financing, the Company adopts a depreciation policy consistent with that for the owned fixed assets. If it is reasonably certain that the Company will obtain ownership of the leasing asset when the lease term is due, the leasing asset shall be fully depreciated through its service life. If it is not reasonably certain that the Company will obtain ownership of the leasing asset when the lease term is due, the leasing asset shall be fully depreciated through the shorter of the lease term or its service life.
(3) Depreciation Methods for Various Fixed Assets
Except for fixed assets that have been fully depreciated but are still in use, classified provisions shall be made for fixed assets depreciation using the composite method, and the depreciation rate shall be determined according to the category, expected service life and residual value of the fixed assets.
For the fixed assets rented through finance lease, if it can be reasonably determined that the Company will obtain ownership of the leasing asset upon expiry of the lease term, it is depreciated within the remaining service life of the leasing asset. If it cannot be reasonably determined so, the leasing asset depreciated during the shorter of the lease term or its remaining service life.
For the fixed assets formed by special reserve expenditures, costs of the fixed assets shall be written off against special reserve and the accumulated depreciation of the same amount shall be determined. In later periods, such fixed assets shall not be depreciated any more.
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. The Company determines the service life and residual value of the fixed assets based on their nature and use,. and rechecks the service life, estimated residual value, and depreciation method of the fixed assets at the year end. In case of any discrepancy between recheck results and estimated values, the Company will adjust correspondingly. The depreciation life and annual depreciation rate of various fixed assets are as follows:
|||||
|-|-|-|-|
|Category|Depreciation life (year)|Residual value rate|Annual depreciation rate|
|Houses and buildings|20-40|5.00%|4.75-2.38|
|Machinery equipment|5-10|5.00%|19.00-9.50|
|Electronic equipment|5-10|5.00%|19.00-9.50|
|Transportation equipment|5-10|5.00%|19.00-9.50|
|Other equipment|10|5.00%|9.50|

(4) Methods for Tests of and Provisions for Impairment of Fixed Assets
The Company judges at the end of every period whether there are indications of impairment in its fixed assets. Where there are indications, the Company estimates the corresponding recoverable amount. The recoverable amount may be determined according to the higher of the net value of (Fair value of the fixed assets– Disposal expenses) or the current value of the expected future cash flow of the fixed assets.
Where the recoverable amount of the fixed assets is lower than their book value, book value of such assets is reduced and recorded into the recoverable amount. The reduced and recorded amount is confirmed as impairment losses of the fixed assets and recorded into current gains and losses while the corresponding provisions are raised against the impaired fixed assets.
After confirmation of the assets impairment losses, corresponding adjustments are made in the future periods on depreciation of the impaired fixed assets so that the adjusted book value (with the anticipated net residual value deducted) of the fixed assets can be amortized systematically within the remaining service life.
Once impairment losses of the fixed assets are confirmed, the losses will not be transferred back in later accounting periods.
Where there are indications of impairment in a certain fixed asset, an enterprise estimates the recoverable amount of the asset based on the individual fixed asset. If it is hard for the enterprise to estimate the recoverable amount of the individual fixed asset, the enterprise determines the recoverable amount of a portfolio of assets based on the
portfolio to which the asset belongs.
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. (5) Other Remarks
15. Construction in Progress
(1) Types of Construction in Progress
The construction in progress self-built by the Company shall be valued at its actual costs which consist of all necessary expenditures incurred to bring the asset to an expected condition of use and include material costs, labor costs, relevant taxes, and dues paid, borrowings eligible for capitalization, and indirect expenses eligible for amortization. Cost accounting for the construction in progress of the Company shall be made based on projects. (2) Standards and Time Points for Construction in Progress Being Carried Forward to Fixed Assets For projects of the construction in progress, all expenses incurred during the construction before the desired usable status of the assets is reached are taken as entry value of the fixed asset. If construction in progress has reached the desired usable status but its completion settlement has not yet been conducted, it is transferred into fixed assets since the day it reaches the desired usable status and according to the estimated value based on the construction budgets, costs or actual costs while depreciation is accrued at the same time according to the Company's depreciation policies for fixed assets. When the completion settlement is conducted, the originally temporary estimated value is adjusted according to the actual costs while the accrued depreciation amount is not adjusted.
(3) Methods for Tests of and Provisions for Impairment of Construction in Progress
The Company judges at the end of every period whether there are indications of impairment in construction in progress.
Where there are such indications, the Company estimates its recoverable amount of such assets. The recoverable amount may be determined according to the higher of the net value of the net value of (Fair value of the construction in progress– Disposal expenses) or the current value of the expected future cash flow of the construction in progress.
Where the recoverable amount of the construction in progress is lower than its book value, book value of the construction in progress is reduced and recorded into the recoverable amount. The reduced and recorded amount is confirmed as impairment losses of the construction in progress and recorded into current gains and losses. Once impairment losses of construction in progress are confirmed, they will not be transferred back in later
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. accounting periods.
Where there are indications of impairment in certain construction in progress, the enterprise estimates the recoverable amount based on the individual construction. If it is hard for the enterprise to estimate the recoverable amount of the individual construction, the enterprise determines the recoverable amount of a portfolio of assets based on the portfolio to which the construction belongs.
16. Borrowing Costs
(1) Principle of Confirming Capitalization of Borrowing Costs
Where borrowing costs incurred by the Company can be directly attributable to the purchase, construction or manufacture of the assets eligible for capitalization, such assets shall be capitalized and recorded into relevant assets cost. Other borrowing costs are confirmed as expenses based on the incurred amount at the time of occurrence and recorded into current gains and losses.
Assets eligible for capitalization refer to assets, such as fixed assets, investment real estate and inventory, that can achieve the anticipated usable or salable status only after a considerable long period of purchase, construction or manufacture activities.
Borrowing costs may be capitalized when they meet all of the following conditions:
① Asset expenditures have already incurred, including those incurred in the form of cash payment, transfers of non-cash assets or assumption of debts with interest for purposes of purchasing, constructing or manufacturing assets eligible for capitalization.
② Borrowing costs have already incurred.
③ Constructing or manufacturing activities necessary for bringing the assets into a usable or salable status have already started.
(2) Capitalization Term of the Borrowing Costs
The capitalization term refers to the period between the start time point and the end time port of the capitalization of the borrowing costs, excluding the period in which the capitalization is suspended.
When the assets purchased, constructed or manufactured that are eligible for capitalization have achieved the anticipated usable or salable status, capitalization of the borrowing costs is stopped.
Where a part of the projects in the assets purchased, constructed or manufactured that are eligible for
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. capitalization have been completed and reached the anticipated usable or salable status, capitalization of the borrowing costs of such a part is stopped.
Where different parts of the assets purchased, constructed or produced have been completed but cannot be used or sold until the whole assets have been completed, capitalization of the borrowing costs is stopped when the whole assets are completed.
(3) Suspension Period of Capitalization
Where abnormal discontinuation has occurred in the purchase, construction or manufacture of the assets eligible for capitalization and the time of discontinuation exceeds three consecutive months, capitalization of the borrowing costs is suspended. If the discontinuation is a necessary procedure to bring the assets purchased, constructed or manufactured and eligible for capitalization into a usable or salable status, capitalization of the borrowing costs continues. Borrowing costs occurred in the suspension period are confirmed as current gains and losses and the capitalization continues until the purchasing building and manufacturing activities of the assets are restarted.
(4) Calculation Method for the Amount of Borrowing Costs Capitalization
Interest expenses of special loans (after deducting interest income of the unused borrowed funds deposited in a bank or investment income obtained from temporary investment) and relevant auxiliary expenses are capitalized before the assets eligible for capitalization that are purchased, constructed or manufactured with such loans, reach the anticipated usable or salable status.
Amount of the interest for common loans that shall be capitalized is calculated and determined according the formula, i.e.―Weighted average of the accumulative parts of the assets expenditures exceeding special loans x Capitalization rate of commonloans‖. The capitalization rate is determined according to the weighted average interest rate of the common loans.
Where the loans involve discounts or premiums, the amount of discounts or premiums to be amortized in each accounting period is determined in accordance with the actual interest rate method while the amount of interests of each period should also be adjusted.
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. 17. Intangible Assets
(1) Pricing Method of Intangible Assets
① The Company carries out initial measurement by cost method when acquiring intangible assets;
Costs of the intangible assets purchased from the outside include purchase price, relevant taxes and dues, and other incurred expenditures directly attributable to bringing such assets to the anticipated use. Where the price for purchasing intangible assets is paid on a deferred basis within a term exceeding regular credit conditions and is actually of financing nature, costs of such intangible assets are determined on the basis of the current value of the purchase price.
For intangible assets acquired though debt restructuring and mortgaged by a debtor, its entry value is determined on the basis of it fair value, while the difference between book value of the restructured debts and fair value of the mortgaged intangible assets is recorded into current gains and losses.
Under the premise that the non-monetary assets exchange is of commercial nature and that fair value of the assets received or given out in the exchange can be measured reliably, entry value of the received non-monetary assets is determined on the basis of the fair value of the assets given out, unless there is concrete evidence telling that fair value of the received assets is more reliable. For non-monetary assets exchange that does not meet the above premise, book value of the received assets given out and the relevant taxes and dues payable are taken as costs of the received non-monetary assets while no relevant gains and losses are confirmed.
As to intangible assets obtained through mergers of enterprises under the control of the same entity, their entry value is determined according to book value of the target party. For those obtained through mergers of enterprises not under the control of the same entity, their entry value is determined according to fair value of the intangible assets obtained.
Regarding intangible assets developed internally, their costs include: i) the materials, labor costs and registration fees consumed in the development of such intangible assets; ii) the amortization of other patent rights and franchises used in the development process and the interest expenses that meet conditions of capitalization; and iii) other direct expenses incurred due to bringing such intangible assets into the anticipated use.
② Subsequent measurement
The Company judges the service life when acquiring intangible assets.
With regard to intangible assets with a limited service life, they are amortized according to the straight-line method within the period when they bring economic benefits to the enterprise. Where the period of economic
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. benefits brought by the intangible assets cannot be foreseen, such intangible assets are deemed to have uncertain service lives and shall not be amortized.
(2) Conditions of the Estimation on Service Lives of Intangible Assets with a Limited Service Life
At the end of each period, the Company reviews the service life and amortization method of the intangible assets with limited service life.
The review has found that the service life and amortization method of the intangible assets at the end of this period are consistent with the previous estimation.
||||
|-|-|-|
|Item|Estimated service life|Basis|
|Outsourcing software|5|Benefit period|
|Land use right|50|Benefit period|

(3) Basis of Judging Intangible Assets Having a Service Life Uncertain
(4) Accrual of Impairment Provisions for Intangible Assets
For intangible assets with a certain service life, if there are obvious indications of impairment in intangible assets, an impairment test is carried out at the end of the period.
For intangible assets whose service life is not certain, an impairment test is carried out at the end of each period. Conduct impairment tests on intangible assets and estimate their recoverable amount. The recoverable amount may be determined according to the higher one of the net value of (Fair value of the intangible assets– Disposal expenses) or the current value of the expected future cash flow of the intangible assets.
Where the recoverable amount of the intangible assets is lower than their book value, book value of such assets is reduced and recorded into the recoverable amount. The reduced and recorded amount is confirmed as impairment losses of the intangible assets and recorded into current gains and losses while the corresponding provisions are raised against the impaired intangible assets.
After impairment losses of the intangible assets are confirmed, corresponding adjustments are made in the future periods on the depreciation or amortized expenses of the impaired assets so that the adjusted book value of such assets (after deducting the anticipated net residual value) can be amortized systematically within the remaining
service life.
Once the impairment losses are confirmed, they will not be transferred back in later accounting periods.
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. Where there are indications of impairment in an intangible asset, the Company estimates the recoverable amount based on the individual intangible asset. If it is hard for the Company to estimate the recoverable amount of the individual asset, the Company determines the recoverable amount of a portfolio of intangible assets based on the portfolio to which the asset belongs.
(5) Classification Standards for Research and Development Phases ofR&D Projects Inside the Company Research phase: when creative and planned investigation and research activities are carried out to obtain and understand new science or technological knowledge.
Development phase: when research results or other knowledge, before being produced or used for commercial purposes, are applied in a certain plan or design to produce materials, equipment and products that are new or feature substantial improvement.
Expenditures for the internalR&D projects during the research phase are recorded into current gains and losses when the expenditures occur.
(6) Accounting of Expenditures for InternalR&D Projects
Expenditures in the development stage of theR&D project can be confirmed as intangible assets only when all the following conditions are met:
① The completion of such intangible assets makes them usable or their sale technically feasible.
② There is an intention to complete such intangible assets and use or sell them.
③ Approaches that the intangible assets generate economic benefits, including proving there are markets for products manufactured by using such intangible assets or for the intangible assets themselves. If the intangible assets are to be used internally, and those will be used internally can evidence their usefulness.
④ There are sufficient technical, financial and other resources to support the completion of the development of such intangible assets and the capabilities to use or sell such intangible assets.
⑤ Expenditures attributed to the development stage of such intangible assets can be reliably measured.
18. Long-term Deferred Expenses
Long-term deferred expenses are averaged and amortized in the benefit period.
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. 19. Estimated Liabilities
(1) Confirmation Standards
Obligations related to contingencies, when they meet all the following conditions, are confirmed by the Company as anticipated liabilities.
The obligation is a current obligation undertaken by the Company;
Fulfillment of the obligation is very likely to cause an outflow of economic benefits from the Company;
The amount of the obligation can be measured reliably.
(2) Measurement Methods
For anticipated liabilities of the Company, their initial measurement is carried out according to the optimum estimation amount of the required expense when relevant obligations are fulfilled.
When determining the optimum estimation amount, the Company considers in a comprehensive way the factors related to the contingencies, such as risks, uncertainties and time value of currency. Where there are great influences of the time value of currency, the optimum estimation amount is determined after the relevant future cash flow is discounted.
The optimum estimation amount is handled differently according to the following situations:
Where there is a continuous range (or interval) of the required expenditures and different results in the range share the same possibility of occurrence, the optimum estimation amount is determined according to the intermediate value of the range, i.e. the average of the maximal and the minimum amounts.
Where there is no continuous range (or interval) or there is a continuous range but different results feature different possibilities of occurrence, the optimum estimation amount: i) is the amount most likely to occur if contingencies involve individual proceedings; and ii) is determined according to various possible results and the calculation of relevant probabilities if contingencies involve several proceedings.
If expenditures, which are used by the Company to pay off anticipated liabilities, are anticipated to be compensated by a third party in full or partial amount, the compensation amount which is basically sure to be received shall be recognized as an individual asset while the recognized compensation amount should not exceed book value of the anticipated liabilities.
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. 20. Share Payment and Equity Instruments
(1) Types of Share Payment
The Company divides payment of its shares into the equity-settled and the cash-settled.
(2) Methods for Determining Fair Value of Equity Instruments
For granted equity instruments that have an active market, their fair value is recognized according to their offer in the active market. For those equity instruments granted but having no active market, their fair value is recognized by using the option pricing model and the following factors shall be considered in selecting a model: 1). the strike price of an option; 2). validity of the option; 3). the current price of the underlying stock; 4). the predicted fluctuation rate of the stock price; 5). the estimated dividends of the stock; 6). the risk free rate within validity of the option.
When determining fair value of equity instruments on the grant date, the Company shall take into account influences of the market conditions among vesting conditions and the non-vesting conditions stipulated in the share-based payment agreement. Where a share-based payment has a non-vesting condition, the Company shall recognize receipt of the corresponding service costs if employees or other parties satisfy all the non-market conditions (for example, service duration) in vesting conditions.
(3) Basis for Confirming the Best Estimation of the Exercisable Equity Instruments
On each balance sheet date in the vesting period, the Company shall make the best available estimate of the number of equity instruments expected to vest, and shall revise quantities of the vesting equity instruments. On the vesting date, quantities of the final estimated vesting equity instruments shall be to equal those of the actual vesting equity instruments.
(4) Accounting for Implementing, Modifying and Terminating Share-based Payment Plans
The Company shall measure the equity-settled share-based payment at fair value of the equity instruments granted to employees. If the equity instruments granted can be vested immediately, the Company shall include the grant-date fair value of equity instruments into related cost or expenses, with a corresponding increase in capital public reserve. If the equity instruments granted cannot be vested until services within the vesting period are completed or the stipulated performance is achieved, the Company, on each of the balance sheet date during the vesting period, shall record the service obtained the current period into related costs or expenses and capital public reserve by reference to the grant-date fair value of the equity instruments and based on the best estimate of the
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. quantities of the equity instruments. The Company shall not adjust the recognized costs or expenses and the total equity amount after the vesting date.
The cash-settled share-based payment shall be measured by reference to fair value of the Company's assumed liabilities which is calculated based on shares or other equity instruments. If the equity instruments can be vest immediately after the grant, the Company shall include fair value of the assumed liabilities into related costs or expenses on the vesting date, with a corresponding increase in liabilities. For the cash-settled share-based payment where the granted options are not exercised until services are completed or certain performance is achieved within the vesting period, the Company, on each balance sheet date during the vesting period, shall include the service obtained in the current period into related costs or expenses and the corresponding liabilities by reference to the grant-date fair value of liabilities and based on the best estimate of the vesting conditions. The Company shall re-measure fair value of its liabilities on each the balance sheet date and the settlement date before settling related liabilities, and include changes in fair value into current gains and losses.
(5) Modifications to and Relevant Accounting of the Current Period Where There are Modifications on Terms and Conditions
If a grant of an equity instrument is cancelled during the vesting period, the Company shall treat the cancellation as an acceleration of vesting, and therefore, shall include immediately the amount, which shall be recognized in the remaining vesting period, into current gains and losses, and recognize the capital public reserve at the same time. If employees or other parties can choose but fail to satisfy non-vesting conditions in the vesting period, the Company shall treat the failure as a cancellation of the grant of the equity instrument.
21. Buyback of the Company's Shares
22. Revenue
(1) Standards for Determining the Confirmation Time of Sales Income
Income from sales of goods is certain to be realized when: 1) The Company has transferred the main risks and rewards in ownership of the commodities to a purchaser; 2) The Company has neither retained any further management right connected to the ownership, nor implemented effective control over the sold commodities; 3) The revenue amount can be measured reliably; 4) Relevant economic benefits are likely to flow into the enterprise; and 5) Relevant costs incurred or to be incurred can be measured reliably.
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. (2) Basis for Confirming Income from Transfers of Asset Use Right
For economic benefits related to transactions, which are very likely to flow into the Company, and when the revenue amount can be reliably measured, determine the amount of the income from transfers of asset use right according to the following conditions:
The amount of interest income is determined according to the time and actual interest rate of other people using the monetary fund of the enterprise.
The amount of the income from use fee is determined in accordance with the time and method of charges as agreed in relevant contract or agreement.
(3) Basis for Confirming Provision of Labor Service
(4) Basis and Method for Determining Contract Completion Progress When Confirming Income from Provision of Labor Service and Construction Contracts by the Percentage-of-Completion Method
Where results of the provision of labor service, on the balance sheet date, can be estimated reliably, the income from provision of labor service is confirmed by using the completion percentage method. The completion progress of a labor service transaction is determined by measuring the work completed.
Total amount of the income from provision of labor service is determined according to an agreed contract or agreement price received or receivable, unless the price is not fair. Labor service income of the current period is confirmed on the balance sheet date according to the formula of (Resulted amount of the total amount of income from provision of labor service x Completion percentage– Accumulative amount of the confirmed income from provision of labor services in previous accounting periods). Meanwhile, labor costs of the current period are carried forward according to the formula of (Estimated total cost of the provision of labor services x Completion percentage– Accumulative amount of the confirmed labor cost in previous accounting periods).
Where the results of the provision of labor services on the balance sheet date cannot be estimated reliably, such results are processed respectively according to the following conditions:
A. Where it is estimated that the labor service costs incurred can be compensated, the income from provision of labor service is confirmed according to the amount of the labor service costs incurred while the same amount is transferred into the labor costs.
B. Where it is estimated that the labor services cost incurred cannot be compensated, the labor service costs
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. incurred is recorded into current gains and losses and no income is confirmed.
When the contracts or agreements signed between the Company and other companies include sales of goods and provision of labor service and where these two parts can be differentiated from each other and measured separately, they shall be handled separately. If they cannot be differentiated from each other or they can be differentiated from each other but cannot be measured separately, they shall be handled as sales of goods.
23. Government Subsidies
(1) Types
A government subsidy means the monetary or non-monetary assets obtained free by an enterprise from the government, excluding capital invested by the government as an owner of the enterprise. For subsidized objects stipulated pursuant to relevant government documents, government subsidies are classified as government subsidies related to assets and those related to earnings. Government subsidies related to assets refer to government subsidies obtained by the enterprise, used for purchase and construction to form long-term assets through other means. Government subsidies related to earnings refer to government subsidies excluding those related to assets.
(2) Accounting Policies
A. Confirmation of Government Subsidies
Government subsidies of monetary asset nature are measured at the amount received or receivable. Government subsidies not of monetary asset nature are measured at fair value. If fair value cannot be obtained reliably, such subsidies are measured at their nominal amount (CNY 1). Government subsidies measured at nominal amount are directly recorded into current gains and losses.
B. Accounting methods
Government subsidies related to assets are recognized as deferred income and recorded in installment into the non-operating income according to service lives of the constructed or purchased assets.
Government subsidies related to earnings, which are used to compensate relevant expenses or losses in later periods, are recognized as deferred income and recorded into the current non-operating income during the period of confirming relevant expenses; and the subsidies, which are used to compensate relevant expenses or losses of
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. having occurred, are directly recorded into the current non-operating income when they are obtained.
For the recognized government subsidies that have to repay, the relevant deferred income balance, if there is any, is used to offset book balance of the relevant deferred income and the surplus is recorded into current gains and losses. If there is no relevant deferred income balance, such subsidies are directly recorded into current gains and losses.
24. Deferred Income Tax Assets and Liabilities
(1) Basis for Confirming Deferred Income Tax Assets
The Company confirms the deferred incomes tax assets generated from the deductible temporary difference within the limit of the taxable income amount that is likely to obtain to deduct the deductible temporary difference. (2) Basis for Confirming Deferred Income Tax Liabilities
The temporary difference between the tax payable unpaid of the current period and that of previous periods is confirmed by the Company as deferred income tax liabilities, excluding a transaction formed through goodwill and not by enterprise mergers and the temporary difference generated from the transaction that, at the time it occurs, does not influence accounting profits or the amount of the tax payable. If the following conditions are met simultaneously, an enterprise shall list the net amount after offsetting deferred income tax assets and liabilities: (1). The enterprise has the legal right to settle current income tax assets and liabilities with the net amount; and (2) The deferred income tax assets and liabilities are related to the income tax imposed on the same taxpayer or different taxpayers by the same taxing authority, but during the future back transfer period of each deferred income tax asset and liability of importance, the involved taxpayer intend to settle current income tax assets and liabilities with the net amount or to acquire assets and liquidate liabilities at the same time. Generally, in separate financial statements, the current income tax assets and liabilities and the deferred income tax assets and liabilities can be presented in the amount after offsetting. In consolidated financial statements, however, among consolidated enterprises the current or deferred income tax assets of one party generally cannot be offset against the current or deferred income tax liabilities of another party unless the involved party has the legal right and the intention to settle with the net amount.
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. 25. Operating Lease and Finance Lease
(1) Accounting of Operating Lease
① The rent paid by the Company for the rented assets is apportioned by the straight-line method in the whole lease term without deduction of the rent-free period and is recorded into current expenses. The direct initial expenses related to lease transactions, paid by the Company, are recorded into current expenses.
In case that a leasing party undertakes the lease-related expenses that should be undertaken by the Company, the Company deducts the expenses from the total rent and the deducted rent is apportioned in the lease term and is recorded into current expenses.
② The rent received by the Company from renting out assets is apportioned by the straight-line method in the whole lease term without deducting the rent-free period and is recorded into the lease income. The direct initial expenses related to lease transactions, paid by the Company, are recorded into current expenses. Those with significant amounts are capitalized and recorded by periods into current profits in the whole lease term according to the same basis for confirmation of the lease income.
In case that the Company undertakes the lease-related expenses which should be undertaken by the tenant, the Company deducts the expenses from the total lease income and the lease expenses after deduction are allocated in the lease term.
(2) Accounting of Finance Lease
① Rented assets through financing: Between fair value of the rented assets and the minimum lease payment, the Company adopts the lower as entry value of the rented assets, while the minimum lease payment is taken as the entry value of long-term accounts payable, and the difference between the two is taken as financing expenses yet to be confirmed.
The financing expenses yet to be confirmed are apportioned by the Company by the actual interest rate method in the lease term of the assets and recorded into accounting expenses.
② Assets rented out through financing: The difference between the total residual value, without a pledge, of the finance lease payment receivable and the current value is confirmed by the Company on the lease-beginning date as financing profits yet to be realized and as the lease income in future periods of receiving rent. The direct initial expenses related to lease transactions are recorded into the initial measurement of the finance lease payment
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. receivable while the amount of profits confirmed in the lease term is reduced.
26. Changes of Significant Accounting Policies and Estimates
Are there any changes in the significant accounting policies and estimates during the report period?
□ Yes√ No
(1) Changes of Accounting Policies
Are there any changes in the significant accounting policies during the report period?
□ Yes√ No
(2) Changes of Accounting Estimates
Are there any changes in the significant accounting estimates during the report period?
□ Yes√ No
27. Correction to Accounting Errors of the Previous Period
Are there any accounting errors of the previous period found in the report period?
□ Yes√ No
(1) Retrospective Restatement
Are there any accounting errors of the previous period that were adjusted by the retrospective restatement method found in the report period?
□ Yes√ No
(2) Prospective Application
Are there any accounting errors of the previous period that were adjusted by the prospective application method found in the report period?
□ Yes√ No
V. Taxes
1. Main tax types and tax rates imposed on the Company
||||
|-|-|-|
|Tax Category|Basis|Tax Rate|
|Value-added tax|Revenue from commodity sales|17%|
||Revenue from rental and interest on||
|Consumption tax||5%|
||loans||

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
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|-|-|-|
|Business tax|Turnover tax payable|7%|
|Urban maintenance and construction tax|Turnover tax payable|3%|
|Enterprise income tax|Enterprise income tax payable|15%, 25%|

Income tax rates imposed on the Company's subsidiaries and branches
Xi'an Hairong SEG, a subsidiary of the Company, has applied the enterprise income tax rate of15% from 2013 after being authorized and archived by the local tax bureau because it benefited from the preferential policy of China Western Development Program as specified in the Industrial Policy Confirmation Letter[2014] (No.060) issued by Shanxi Development and Reform Commission.
Xi'an SEG, a subsidiary of the Company, has applied the enterprise income tax rate of15% from 2013 to 2020 after being authorized and archived by the local tax bureau because it benefited from the preferential policy of China Western Development Program as specified in the Industrial Policy Confirmation Letter[2014] (No.134) issued by Shanxi Development and Reform Commission.
Other subsidiaries or branches of the Company apply the enterprise income tax rate of25%.
2. Tax preference and official documents
Xi'an Hairong SEG, a subsidiary of the Company, has applied the enterprise income tax rate of15% from 2013 after being authorized and archived by the local tax bureau because it benefited from the preferential policy of China Western Development Program as specified in the Industrial Policy Confirmation Letter[2014] (No.060) issued by Shanxi Development and Reform Commission.
Xi'an SEG, a subsidiary of the Company, has applied the enterprise income tax rate of15% from 2013 to 2020 after being authorized and archived by the local tax bureau because it benefited from the preferential policy of China Western Development Program as specified in the Industrial Policy Confirmation Letter[2014] (No.134) issued by Shanxi Development and Reform Commission.
VI. Business Combination and Consolidated Financial Statements
1. Subsidiary Profiles
(1) Subsidiaries acquired through establishment or investment
Unit: CNY (ten thousand)
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
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||yraidisbusfoemanlluF||yraidisbusfoepyT||noitartsigerfoecalP||ssenisubfoerutaN||latipaCderetsigeR||epocSssenisuB||doirepehtfodneehttatnemtsevnilautcA|seiraidisbusnitnemtsevnilautcatenehtfoecnalaB||noitroporpgnidloherahS||noitroporpthgirgnitoV|tonrodetadilosnocstnemetatslaicnaniF||ytiuqe'sredloherahsytironiM|ytironimgnittesffoytiuqe’sredloherahsytironimfotnuomaehT|sessoldnasniag’sredloherahs|doirepehtfosessolehtneewtebecnereffidehtretfaecnalaB|serahsgninnigeb-doirepehtdnasredloherahsytironimotdetacolla|ehtnahteromsiremrofehtesacni,sredloherahsytironimybdeyojne|ynapmoctnerapehtfoytiuqe’srenwoehttsniagatesffosi,rettal|
|Xi’an SEG||||||||||Electronics||||||||||||||||||
|||Holding||||Service||||||||||||||||||||||
|Electronics||||Xi’an||||300||market lease||195.00|||65.00%||65.00%||Yes|645.95||||||||
|||subsidiary||||industry||||||||||||||||||||||
|Market Co., Ltd.||||||||||management||||||||||||||||||
|Shenzhen SEG||||||||||||||||||||||||||||
|Electronics||||||||||Electronics||||||||||||||||||
|||Holding||||Service||||||||||||||||||||||
|Market||||Shenzhen||||300||market lease||210.00|||70.00%||70.00%||Yes|199.50||||||||
|||subsidiary||||industry||||||||||||||||||||||
|Management||||||||||management||||||||||||||||||
|Co., Ltd.||||||||||||||||||||||||||||
|Suzhou SEG||||||||||Electronics||||||||||||||||||
|||Holding||||Service||||||||||||||||||||||
|Electronics||||Su Zhou||||300||market lease||135.00|||45.00%||45.00%||Yes|441.36||||||||
|||subsidiary||||industry||||||||||||||||||||||
|Market Co., Ltd.||||||||||management||||||||||||||||||
|Shenzhen||||||||||Hotel||||||||||||||||||
|||Subsidiar||||||||||||||||||||||||||
|Mellow Orange||||||||||management,||||||||||||||||||
|||y of||||Service||||||||||||||||||||||
|Hotel||||Shenzhen||||1,000||consultancy and||1,000.00|||||66.58%||Yes|||||||||
|||holding||||industry||||||||||||||||||||||
|Management||||||||||property||||||||||||||||||
|||subsidiary||||||||||||||||||||||||||
|Co., Ltd.||||||||||management||||||||||||||||||
|||||||||||Petty loan||||||||||||||||||
|||||||||||business||||||||||||||||||
|||||||||||(pooling public||||||||||||||||||
|||||||||||deposits is||||||||||||||||||
|Shenzhen SEG||Holding||||||||||||||||||||||||||
|||||Shenzhen||Finance||15,000||prohibited)||8,100.00|||53.02%||53.02%||Yes|7,455.66||||||||
|Credit Co., Ltd.||subsidiary||||||||||||||||||||||||||
|||||||||||within the||||||||||||||||||
|||||||||||administrative||||||||||||||||||
|||||||||||region of||||||||||||||||||
|||||||||||Shenzhen.||||||||||||||||||
|Shenzhen SEG||||||||||||||||||||||||||||
|||Holding||||E-com||||||||||||||||||||||
|E-Commerce||||Shenzhen||||4,800||E-commerce||1,530.00|||51.00%||51.00%||Yes|372.26||||||||
|||subsidiary||||merce||||||||||||||||||||||
|Co., Ltd.||||||||||||||||||||||||||||
|Shenzhen SEG||Wholly-o||||||||Market facilities||||||||||||||||||
|||||||Service||||||||||||||||||||||
|Electronics||wned||Nanjing||||2,000||leasing,|||||100.00%||100.00%||Yes|||||||||
|||||||industry||||||||||||||||||||||
|Market||subsidiary||||||||property||||||||||||||||||

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
|||||||||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||yraidisbusfoemanlluF||yraidisbusfoepyT||noitartsigerfoecalP||ssenisubfoerutaN||latipaCderetsigeR||epocSssenisuB||doirepehtfodneehttatnemtsevnilautcA|seiraidisbusnitnemtsevnilautcatenehtfoecnalaB||noitroporpgnidloherahS||noitroporpthgirgnitoV|tonrodetadilosnocstnemetatslaicnaniF||ytiuqe'sredloherahsytironiM|ytironimgnittesffoytiuqe’sredloherahsytironimfotnuomaehT|sessoldnasniag’sredloherahs|doirepehtfosessolehtneewtebecnereffidehtretfaecnalaB|serahsgninnigeb-doirepehtdnasredloherahsytironimotdetacolla|ehtnahteromsiremrofehtesacni,sredloherahsytironimybdeyojne|ynapmoctnerapehtfoytiuqe’srenwoehttsniagatesffosi,rettal|
|Management||||||||||management,||||||||||||||||||
|Co., Ltd.||||||||||sales of||||||||||||||||||
|||||||||||electronic||||||||||||||||||
|||||||||||products and||||||||||||||||||
|||||||||||advertisement||||||||||||||||||
|||||||||||Property||||||||||||||||||
|Xi’an Hairong||||||||||leasing, sales of||||||||||||||||||
|||Holding||||Service||||||||||||||||||||||
|SEG Electronics||||Xi’an||||300||electronic||2,000.00|||51.00%||51.00%||Yes|140.77||||||||
|||subsidiary||||industry||||||||||||||||||||||
|Market Co., Ltd.||||||||||products and||||||||||||||||||
|||||||||||advertisement||||||||||||||||||
|Wujiang SEG||||||||||Electronics||||||||||||||||||
|||Holding||||Service||||||||||||||||||||||
|Electronics||||Wujiang||||300||market lease||153.00|||51.00%||51.00%||Yes|171.76||||||||
|||subsidiary||||industry||||||||||||||||||||||
|Market Co., Ltd.||||||||||management||||||||||||||||||
|Wuxi SEG||||||||||Electronics||||||||||||||||||
|||Holding||||Service||||||||||||||||||||||
|Electronics||||Wuxi||||300||market lease||153.00|||51.00%||51.00%||Yes|131.07||||||||
|||subsidiary||||industry||||||||||||||||||||||
|Market Co., Ltd.||||||||||management||||||||||||||||||
|Shunde SEG||||||||||||||||||||||||||||
|Electronics||Wholly-o||||||||Electronics||||||||||||||||||
|||||||Service||||||||||||||||||||||
|Market||wned||Foshan||||600||market lease||153.00|||100.00%||100.00%||Yes|||||||||
|||||||industry||||||||||||||||||||||
|Management||subsidiary||||||||management||||||||||||||||||
|Co., Ltd.||||||||||||||||||||||||||||
|Nanning SEG||||||||||||||||||||||||||||
|Electronics||Wholly-o||||||||Electronics||||||||||||||||||
|||||||Service||||||||||||||||||||||
|Market||wned||Nanning||||800||market lease||600.00|||100.00%||100.00%||Yes|||||||||
|||||||industry||||||||||||||||||||||
|Management||subsidiary||||||||management||||||||||||||||||
|Co., Ltd.||||||||||||||||||||||||||||
|Nantong SEG||||||||||||||||||||||||||||
|||Wholly-o||||Real||||||||||||||||||||||
|Times Square||||||||||Real estate||||||||||||||||||
|||wned||Nantong||estate||3,000||||800.00|||100.00%||100.00%||Yes|||||||||
|Development||||||||||development||||||||||||||||||
|||subsidiary||||industry||||||||||||||||||||||
|Co., Ltd.||||||||||||||||||||||||||||
|Yantai SEG||Holding||Yantai||Real||10,000||real estate||3,000.00|||90.00%||90.00%||Yes|||||||||

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
||||||||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||yraidisbusfoemanlluF||yraidisbusfoepyT||noitartsigerfoecalP||ssenisubfoerutaN||latipaCderetsigeR||epocSssenisuB||doirepehtfodneehttatnemtsevnilautcA|seiraidisbusnitnemtsevnilautcatenehtfoecnalaB||noitroporpgnidloherahS||noitroporpthgirgnitoV|tonrodetadilosnocstnemetatslaicnaniF|ytiuqe'sredloherahsytironiM|ytironimgnittesffoytiuqe’sredloherahsytironimfotnuomaehT|sessoldnasniag’sredloherahs|doirepehtfosessolehtneewtebecnereffidehtretfaecnalaB|serahsgninnigeb-doirepehtdnasredloherahsytironimotdetacolla|ehtnahteromsiremrofehtesacni,sredloherahsytironimybdeyojne|ynapmoctnerapehtfoytiuqe’srenwoehttsniagatesffosi,rettal|
|Times Square||subsidiary||||estate||||development|||||||||||||||||
|Development||||||industry|||||||||||||||||||||
|Co., Ltd.|||||||||||||||||||||||||||
|Nantong SEG|||||||||||||||||||||||||||
|||||||||||Business|||||||||||||||||
|Business||Wholly-o|||||||||||||||||||||||||
|||||||Service||||operation and|||||||||||||||||
|Operation||wned||Nantong||||500||||0|||100.00%||100.00%||Yes||||||||
|||||||industry||||property|||||||||||||||||
|Management||subsidiary|||||||||||||||||||||||||
|||||||||||management|||||||||||||||||
|Co., Ltd.|||||||||||||||||||||||||||

Additional notes on the subsidiaries acquired through establishment or investment
Half of the directors, the Chairman of the Board, the General Manager, the Chief Financial Officer and the management team of Suzhou SEG Electronics Market Management Co., Ltd are all dispatched by the Company that actually controls the operation of Suzhou SEG, so Suzhou SEG was included into the consolidation scope. Note 1: Shenzhen SEG E-commerce Co., Ltd. has the registered capital of RMB 48 million with the initial contribution of RMB 30 million, in which the Company made a contribution of RMB 15.3 million and enjoyed51% of its shares.
(2) Subsidiaries acquired through business combination under common control
Unit: CNY（tenthousand）
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
|||||||||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||yraidisbusfoemanlluF||yraidisbusfoepyT||noitartsigerfoecalP||ssenisubfoerutaN||latipaCderetsigeR||epocSssenisuB||doirepehtfodneehttatnemtsevnilautcA|seiraidisbusnitnemtsevnilautcatenehtfoecnalaB||noitroporpgnidloherahS||noitroporpthgirgnitoV|tonrodetadilosnocstnemetatslaicnaniF||ytiuqe'sredloherahsytironiM|ytironimgnittesffoytiuqe’sredloherahsytironimfotnuomaehT|sessoldnasniag’sredloherahs|detacolladoirepehtfosessolehtneewtebecnereffidehtretfaecnalaB|ybdeyojneserahsgninnigeb-doirepehtdnasredloherahsytironimot|si,rettalehtnahteromsiremrofehtesacni,sredloherahsytironim|ynapmoctnerapehtfoytiuqe’srenwoehttsniagatesffo|
|Shenzhen||||||||||||||||||||||||||||
|SEG Baohua||||||||||Property lease||||||||||||||||||
|||Holding||||Service||||||||||||||||||||||
|Enterprise||||Shenzhen||||3,080.88||and||2,051.25|||66.58%||66.58%||Yes|2,819.08||||||||
|||subsidiary||||industry||||||||||||||||||||||
|Development||||||||||management||||||||||||||||||
|Co., Ltd.||||||||||||||||||||||||||||
|Shenzhen||||||||||||||||||||||||||||
|||||||||||Investment on||||||||||||||||||
|SEG||Wholly-o||||||||||||||||||||||||||
|||||||||||industry and||||||||||||||||||
|Industrial||wned||Shenzhen||Investment||2,550.00||||2,378.00|||100.00%||100.00%||Yes|||||||||
|||||||||||domestic||||||||||||||||||
|Investment||subsidiary||||||||||||||||||||||||||
|||||||||||commerce||||||||||||||||||
|Co., Ltd.||||||||||||||||||||||||||||

(3) Subsidiaries acquired through business combination not under common control
Unit: CNY ten thousand
||||||||||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||yraidisbusfoemanlluF||yraidisbusfoepyT||noitartsigerfoecalP||ssenisubfoerutaN||latipaCderetsigeR||epocSssenisuB||doirepehtfodneehttatnemtsevnilautcA|seiraidisbusnitnemtsevnilautcatenehtfoecnalaB||noitroporpgnidloherahS||noitroporpthgirgnitoV||tonrodetadilosnocstnemetatslaicnaniF||ytiuqe'sredloherahsytironiM|ytironimgnittesffoytiuqe’sredloherahsytironimfotnuomaehT|sessoldnasniag’sredloherahs|detacolladoirepehtfosessolehtneewtebecnereffidehtretfaecnalaB|ybdeyojneserahsgninnigeb-doirepehtdnasredloherahsytironimot|si,rettalehtnahteromsiremrofehtesacni,sredloherahsytironim|ynapmoctnerapehtfoytiuqe’srenwoehttsniagatesffo|
|Changsha SEG||Holding||Changsha||Service||3,500.00||Property||6,900.00|||46.00%||51.00%||Yes||5,885.75||||||||

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
||||||
|-|-|-|-|-|
|Development Co.,|subsidiary|industry|l|ease|
|Ltd.|||||

Additional notes on the subsidiaries acquired through business combination not under common control
The capital structure of Changsha SEG Development Co., Ltd. at present is as follows: the Company is the first majority shareholder, holding46% shares of Changsha SEG, Jinhong Group Co., Ltd. holds40% shares and Huaya Management Co., Ltd. holds14% shares, among which, Jinhong Group Co., Ltd. and Huaya Management Co., Ltd. have no associated relationship with each other. Half of the directors, the Chairman of the Board, the General Manager, the Chief Financial Officer and the management team of Changsha SEG Development Co., Ltd. are all dispatched by the Company that actually controls the operation of Changsha SEG, so Changsha SEG was included into the consolidation scope.
3. Description of changes in the combination scope
Changes to the scope of consolidated statements
Yantai SEG Times Square Development Co., Ltd. and Nantong SEG Business Operation Management Co., Ltd. are newly included in the consolidation scope.
√ Applicable Not applicable
Compared with the same period last year, two entities are added in the consolidation scope.
One of the entities is a holding subsidiary and the other is a wholly-owned subsidiary.
4. Entities newly included in the consolidation scope and entities not included in the consolidation scope in the report period
Subsidiaries, special-purpose entities and operating entities whose share-controlling right is formed through trustee operation or lessee, which are included in the consolidation scope in the current year
Unit: CNY
||||
|-|-|-|
|Name|Period-end net assets|Net profits of current period|
|Yantai SEG Times Square Development Co., Ltd.|0.00|0.00|
|Nantong SEG Business Operation Management Co.,|||
||0.00|0.00|
|Ltd.|||

VII． Notes on the Main Items of Consolidated Financial Statements
1. Monetary capital
Unit: CNY
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
||||||||
|-|-|-|-|-|-|-|
||Period-end amount|||Period-beginning amount|||
|Item|Amount in|Discount||Amount in|Discount||
||||Amount in CNY|||Amount in CNY|
||foreign currency|rate||foreign currency|rate||
|Cash:|--|--|496,088.31|--|--|496,319.50|
|CNY|--|--|495,283.19|--|--|495,521.77|
|USD|100.00|6.1528|615.28|100.00|6.0969|609.69|
|HK$|239.17|0.793745|189.84|240.00|0.7862|188.04|
|Bank deposit:|--|--|629,843,204.27|--|--|335,064,832.27|
|CNY|--|--|629,842,956.97|--|--|335,064,442.13|
|USD|40.19|6.1528|247.30|63.99|6.0969|390.14|
|Other monetary capitals:|--|--||--|--|1,032,342.04|
|CNY|--|--||--|--|1,032,342.04|
|Total|--|--|630,339,292.58|--|--|336,593,493.81|

 An amount of CNY 1 million in other monetary capitals is the bond paid by subsidiaries on credit cards.
2. Notes receivable
(1) Types of notes receivable
Unit: CNY
||||
|-|-|-|
|Type|Period-end amount|Period-beginning amount|
|Bank's acceptance bill|10,000.00|0.00|
|Total|10,000.00|0.00|

 4. Accounts receivable（中文没有“3”）
(1) Accounts receivable disclosed by type
Unit: CNY
||||||||||
|-|-|-|-|-|-|-|-|-|
||Period-end amount||||Period-beginning amount||||
|Type|Book balance||Bad debt provision||Book balance||Bad debt provision||
||Amount|Proportion|Amount|Proportion|Amount|Proportion|Amount|Proportion|
|Accounts receivable for which bad debt provision is accrued according to different portfolios|||||||||
||104,372,09||||204,090,4||||
|Portfolio 1||89.92%|1,035.20|||94.58%|4,140.80||
||8.76||||50.12||||
||104,372,09||||204,090,4||||
|Subtotal of portfolios||89.92%|1,035.20|||94.58%|4,140.80||
||8.76||||50.12||||

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
||||||||||
|-|-|-|-|-|-|-|-|-|
|Accounts receivable with|||||||||
|an insignificant amount|||||||||
||11,699,138.||11,699,138.||11,699,13||11,699,138.1||
|individually, for which||10.08%||100.00%||5.42%||100.00%|
||18||18||8.18||8||
|bad debt provision is|||||||||
|separately accrued|||||||||
||116,071,23||11,700,173.||215,789,5||11,703,278.9||
|Total||--||--||--||--|
||6.94||38||88.30||8||

Accounts receivable with individually significant amount, for which bad debt provision is separately accrued at the end of the period: Applicable√ Not applicable
Among the portfolios, accounts receivable for which bad debt provision is computed by adopting the aging method:
√ Applicable Not applicable
Unit: CNY
||||||||
|-|-|-|-|-|-|-|
||Period-end amount|||Period-beginning amount|||
|Age of account|Book balance|||Book balance|||
||||Bad debt provision|||Bad debt provision|
||Amount|Proportion||Amount|Proportion||
|Less than one year|||||||
|Therein,|--|--|--|--|--|--|
|Less than one year|104,351,394.76|99.98%||204,007,634.12|99.96%||
|Subtotal of the|||||||
|accounts aged under 1|104,351,394.76|99.98%||204,007,634.12|99.96%||
|year|||||||
|1-2 years|20,704.00|0.02%|1,035.20|82,816.00|0.04%|4,140.80|
|Total|104,372,098.76|--|1,035.20|204,090,450.12|--|4,140.80|

 Among the portfolios, accounts receivable for which bad debt provision is computed by adopting the percentage method:
 Applicable√ Not applicable
Among the portfolios, accounts receivable for which bad debt provision is computed by adopting other methods:
 Applicable√ Not applicable
Period-end accounts receivable with individually insignificant amount but for which bad debt provision is separately accrued√ Applicable Not applicable
Unit: CNY
||||||
|-|-|-|-|-|
|Content of accounts|Book balance||||
|||Bad debt provision|Accrual proportion|Reason for accrual|
|receivable|||||
|||||The accounts receivable are|
|Jiangsu Unicom|3,092,011.09|3,092,011.09|100.00%|uncollectible because they have been|
|||||outstanding for more than five years.|
|Shenzhen||||The accounts receivable are|
|Shuangxionghui|2,160,725.63|2,160,725.63|100.00%|uncollectible because they have been|
|Industrial Co., Ltd||||outstanding for more than five years.|

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
||||||
|-|-|-|-|-|
|Shenzhen||||The accounts receivable are|
|Liyuanshun|1,906,865.35|1,906,865.35|100.00%|uncollectible because they have been|
|Industrial Co., Ltd||||outstanding for more than five years.|
|||||The accounts receivable are|
|Zhejiang Financial|||||
||786,000.00|786,000.00|100.00%|uncollectible because they have been|
|Information Co., Ltd|||||
|||||outstanding for more than five years.|
|||||The accounts receivable are|
|Shanghai Tianci|||||
||899,000.00|899,000.00|100.00%|uncollectible because they have been|
|Industrial Co., Ltd|||||
|||||outstanding for more than five years.|
|||||The accounts receivable are|
|Other units|2,854,536.11|2,854,536.11|100.00%|uncollectible because they have been|
|||||outstanding too long.|
|Total|11,699,138.18|11,699,138.18|--|--|

(2) List of top five debtors sorted by the amount of accounts receivable
Unit: CNY
||||||
|-|-|-|-|-|
||Relationship with the||||
|Name of company||Amount|Age|Percentage of total|
||Company||||
|TOP STAR|||||
|COMMUNICATION|Clients|46,678,941.70|Less than one year|40.22%|
|LIMITED|||||
|TOP VICTORY|||||
||Clients|13,596,524.73|Less than one year|11.71%|
|INVESTMENTS LIMITED|||||
|Shenzhen Runneng Digital|||||
|||10,448,592.24|Less than one year|9.00%|
|Technology Co., Ltd.|||||
|Dalian Dier Computer Co.,|||||
||Clients|5,235,479.50|Less than one year|4.51%|
|Ltd.|||||
|Dalian Anlianchuangcheng|||||
|Information Technology|Clients|5,169,282.50|Less than one year|4.45%|
|Co., Ltd.|||||
|Total|--|81,128,820.67|--|69.89%|

 5. Other receivables
(1) Other accounts receivable disclosed by type
Unit: CNY
||||||
|-|-|-|-|-|
||Period-end amount||Period-beginning amount||
|Type|||||
||Book balance|Bad debt provision|Book balance|Bad debt provision|

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
||||||||||
|-|-|-|-|-|-|-|-|-|
|||||||||Proportio|
||Amount|Proportion|Amount|Proportion|Amount|Proportion|Amount||
|||||||||n|
|Other receivables with|||||||||
|a significant amount|||||||||
|individually, for which|20,131,835.38|28.38%|20,131,835.38|100.00%|20,131,835.38|35.13%|20,131,835.38|100.00%|
|bad debt provision is|||||||||
|separately accrued|||||||||
|Other receivables for which bad debt provision is accrued according to different portfolios|||||||||
|Portfolio 1|26,917,398.49|37.95%|3,952.88|0.01%|13,439,818.01|23.45%|3,986.27|0.03%|
|Portfolio 2|11,764,012.36|16.58%||0.00%|11,597,522.98|20.24%||0.00%|
|Subtotal of portfolios|38,681,410.85|54.53%|3,952.88|0.01%|25,037,340.99|43.69%|3,986.27|0.02%|
|Other receivables with|||||||||
|an insignificant|||||||||
|amount individually,|||||||||
||12,123,004.93|17.09%|12,123,004.92|100.00%|12,134,424.93|21.18%|12,134,424.93|100.00%|
|for which bad debt|||||||||
|provision is separately|||||||||
|accrued|||||||||
|Total|70,936,251.16|--|32,258,793.18|--|57,303,601.30|--|32,270,246.58|--|

 Notes on types of other receivables
Other accounts receivable in portfolio 2 include premium for lease and due from related parties.
Other receivables with a significant amount individually, for which bad debt provision is separately accrued at the end of the period:√ Applicable Not applicable
Unit: CNY
||||||
|-|-|-|-|-|
|Content of other|||||
||Book balance|Bad debt amount|Accrual proportion|Reason|
|receivables|||||
|||||The accounts receivableare uncollectible becausehey have beenoutstanding for morehan five years.|
|Yangjiang Yuntong|||||
||8,530,276.35|8,530,276.35|100.00% t||
|Grease Co., Ltd|||||
||||t||
|||||The accounts receivableare uncollectible becausehey have beenoutstanding for morehan five years.|
|Creditor’s right|||||
|transferred in by SEG|5,904,271.52|5,904,271.52|100.00% t||
|Communications|||t||
|||||The accounts receivableare uncollectible becausehey have beenoutstanding for morehan five years.|
|Shenzhen Lianjing Trade|||||
||5,697,287.51|5,697,287.51|100.00% t||
|Co., Ltd.|||||
||||t||

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
||||||
|-|-|-|-|-|
|Total|20,131,835.38|20,131,835.38|--|--|

Among the portfolios, other accounts receivable for which bad debt provision is computed by adopting the aging method:
√ Applicable Not applicable
Unit: CNY
||||||||
|-|-|-|-|-|-|-|
||Period-end amount|||Period-beginning amount|||
||Book balance|||Book balance|||
|Age of account|||||||
|||Proporti|Bad debt provision||Proporti|Bad debt provision|
||Amount|||Amount|||
|||on|||on||
|Less than one year|||||||
|Therein,|||||||
|Less than one year|26,876,200.99|99.85%||13,392,134.92|99.65%||
|Subtotal of the accounts aged|||||||
||26,876,200.99|99.85%||13,392,134.92|99.65%||
|under 1 year|||||||
|1-2 years|20,575.00|0.08%|1,028.75|30,140.00|0.22%|1,507.00|
|2-3 years|12,003.75|0.04%|1,200.38|10,400.40|0.08%|1,050.73|
|Over 3 years|8,618.75|0.03%|1,723.75|7,142.69|0.05%|1,428.54|
|Total|26,917,398.49|--|3,952.88|13,439,818.01|--|3,986.27|

 Among the portfolios, other accounts receivable for which bad debt provision is computed by adopting the percentage method: Applicable√ Not applicable
Among the portfolios, other accounts receivable for which bad debt provision is computed by adopting other methods:
 Applicable√ Not applicable
Other accounts receivable with an insignificant amount individually but for which bad debt provision is separately accrued: Applicable√ Not applicable
(3) Shareholder that holds5% or more voting shares of the Company in other accounts receivable in the report period（中文没有“(2)”）
Unit: CNY
||||||
|-|-|-|-|-|
||Period-end amount||Period-beginning amount||
|Name of company||Bad debt provision||Bad debt provisionaccrued|
||Book balance||Book balance||
|||accrued|||
|Shenzhen SEG Group Co., Ltd.|214,491.60||214,491.60||
|Total|214,491.60||214,491.60||

(4) List of top five debtors sorted by the amount of other accounts receivable
Unit: CNY
||||||
|-|-|-|-|-|
|Name of company|Relationship with the|Amount|Age|Percentage of total|

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
||||||
|-|-|-|-|-|
||Company||||
|Shenzhen San Miki|||||
||Client|10,000,000.00|Less than one year|14.10%|
|Electronics Limited|||||
|No.1: Yangjiang Yuntong|Business related||||
|||8,530,276.35|Over 5 years|12.03%|
|Grease Co., Ltd|organization||||
|Nantong Construction|||||
||Government regulatory||||
|Engineering||6,200,000.00|Less than one year|8.74%|
||agency||||
|Administration|||||
|Creditor’s right|||||
||Business related||||
|transferred in by SEG||5,904,271.52|Over 5 years|8.32%|
||organization||||
|Communications|||||
|Shenzhen Lianjing Trade|Business related||||
|||5,697,287.51|Over 5 years|8.03%|
|Co., Ltd.|organization||||
|Total|--|36,331,835.38|--|51.22%|

 (5) Other accounts receivable from related parties
Unit: CNY
|||||
|-|-|-|-|
|Name of company|Relationship with the Company|Amount|Percentage of total|
|Shenzhen SEG Property||||
||Subsidiary of shareholders|12,325.00|0.03%|
|Development Co., Ltd.||||
|Shenzhen SEG Group Co.,||||
||Controlling shareholder|214,491.60|0.55%|
|Ltd.||||
|Total|--|226,816.60|0.58%|

 7. Advances
(1) Advances listed by age
Unit: CNY
||||||
|-|-|-|-|-|
||Period-end amount||Period-beginning amount||
|Age of account|||||
||Amount|Proportion|Amount|Proportion|
|Less than one|||||
||74,237,738.43|100.00%|74,002,910.35|100.00%|
|year|||||
|Total|74,237,738.43|--|74,002,910.35|--|

 Notes on the age of advance payment:
(2) List of top five debtors sorted by the amount of advances
Unit: CNY
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
||||||
|-|-|-|-|-|
||Relationship with the|||Reason for|
|Name of company||Amount|Age of account||
||Company|||non-settlement|
|Tonmac International|Cooperation partner of||||
|Electronics (Suzhou)|Suzhou SEG Electronics|19,700,000.00|Less than one year|Advance rental payment|
|Co., Ltd|Market||||
|Shenzhen Unitone||||Advance payment for|
||Supplier|12,046,432.00|Less than one year||
|Electronics Co.,Ltd.||||goods|
|Xi'an Gaoke (Group)|||||
||Cooperation partner of||||
|New West China|||||
||Xi'an SEG Electronics|10,000,000.00|Less than one year|Advance rental payment|
|Industrial Development|||||
||Market||||
|Co., Ltd|||||
|Shenzhen Yixinzhongtian||||Advance payment for|
||Supplier|9,628,938.02|Less than one year||
|Technology Co., Ltd.||||goods|
|Dongguan Repai||||Advance payment for|
||Supplier|2,913,736.43|Less than one year||
|Electronics Co., Ltd.||||goods|
|Total|--|54,289,106.45|--|--|

8. Inventory
(1) Classification of inventory
Unit: CNY
||||||||
|-|-|-|-|-|-|-|
||Period-end amount|||Period-beginning amount|||
|||Provision for|||Provision for||
|Item|||||||
||Book balance|inventory price|Net book value|Book balance|inventory price|Net book value|
|||drop|||drop||
|Raw materials||||90,392.46||90,392.46|
|Stock|651,500.87||651,500.87|1,188,478.68||1,188,478.68|
|Low-cost|||||||
||361,643.77||361,643.77|178,788.28||178,788.28|
|consumables|||||||
|Development cost|173,223,636.53||173,223,636.53|96,543,262.08||96,543,262.08|
|Total|174,236,781.17||174,236,781.17|98,000,921.50||98,000,921.50|

 Notes on inventory:
Therein, the stocks not used for surety and the stocks without ownership limitations at the end of the period
Development cost:
||||||
|-|-|-|-|-|
|Project name|Commencementtime|Expected completiontime|Expected investmentamount|Closing balance|
|Nantong SEG Times Square|2013.5|2014.11|600,000,000.00|173,223,636.53|

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
|||
|-|-|
|Total|173,223,636.53|

 9. Other current assets
Unit: CNY
||||
|-|-|-|
|Item|Period-end amount|Period-beginning amount|
|Financial products|423,379,000.00|385,000,000.00|
|Tax to be deducted and withheld|94,822,673.36|34,925,176.02|
|Total|518,201,673.36|419,925,176.02|

 10. Available-for-sale financial assets
(1) Information on the available-for-sale financial assets
Unit: CNY
||||
|-|-|-|
|Item|Period-end sound value|Period-beginning sound value|
|Available-for-sale equity instruments|465,438.61|562,531.41|
|Total|465,438.61|562,531.41|

 The held-to-maturity investments is reclassified as available-for-sale financial assets in the current period, and the amount of reclassified investments is RMB 0.00, accounting for0.00% of the total amount of held-to-maturity investments before
reclassification.
Notes on the available-for-sale financial assets:
The sound value of available-for-sale financial assets is calculated based on the closing price on June 30, 2014.
11. Investment in joint ventures and associates
Unit: CNY
|||||||||
|-|-|-|-|-|-|-|-|
|Name of the|Shareholding|Voting right|Total assets atthe period end|Total liabilities|Total net assets|Total operating|Net profits of|
|invested|proportion of|proportion of||at the period|at the period|income of the|the current|
|company|the Company|the Company||end|end|current period|period|
|Associates||||||||
|Shanghai SEG||||||||
|Electronics||||||||
||35.00%|35.00%|32,833,388.87|23,333,409.98|9,499,978.89|17,207,347.90|177,979.17|
|Market Co.,||||||||
|Ltd.||||||||

12. Long-term equity investment
(1) Details of long-term equity investment
Unit: CNY
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
||||||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||noitazinagrodetsevnI||dohtemgnitnuoccA||tsoctnemtsevnI||ecnalabgninnigeB||esaercedroesaercnI||ecnalabgnisolC||noitroporpgnidloherahS||noitroporpthgirgnitoV|ehterehwnoisaccoehtnosetoN|detsevniehtfoserahsehtfonoitroporp|tonsi,ynapmoCehtybdleh,noitazinagro|thgirgnitovehthtiwtnetsisnoc||noisivorptnemriapmI|tnerrucehtfotnemriapmirofnoisivorP|doirep|doireptnerrucehtfosdnedividhsaC|
|Shanghai|||||||||||||||||||||||||
|SEG|||||||||||||||||||||||||
|||Equity|||||||||||||||||||||||
|Electronic||||1,750,000.00||9,254,501.99||62,292.71||9,316,794.70||35.00%||35.00%||---|||||||||
|||method|||||||||||||||||||||||
|s Market|||||||||||||||||||||||||
|Co., Ltd.|||||||||||||||||||||||||
|Shenzhen|||||||||||||||||||||||||
|Huakong||Equity|||||||||||||||||||||||
|||||215,645,740.56||102,848,308.04||-1,808,722.02||101,039,586.02||22.45%||22.45%||---|||||||||
|SEG Co.,||method|||||||||||||||||||||||
|Ltd.|||||||||||||||||||||||||
|Nanjing|||||||||||||||||||||||||
|||Cost|||||||||||||||||||||||
|Shangsha||||280,000.00||280,000.00||||280,000.00||0.68%||0.68%||---|||||||||
|||method|||||||||||||||||||||||
|Co., Ltd|||||||||||||||||||||||||
|Anshan|||||||||||||||||||||||||
|||Cost||||||||||||||||||15,000|||||
|Yibai Co.,||||15,000.00||15,000.00||||15,000.00||||||---|||||||||
|||method||||||||||||||||||.00|||||
|Ltd|||||||||||||||||||||||||
|Shenzhen|||||||||||||||||||||||||
|SEG GPS|||||||||||||||||||||||||
|Scientific||Cost|||||||||||||||||||||||
|||||8,275,321.43||13,515,392.83||||13,515,392.83||12.50%||12.50%||---|||||||||
|Navigatio||method|||||||||||||||||||||||
|ns Co.,|||||||||||||||||||||||||
|Ltd.|||||||||||||||||||||||||
|Kashgar|||||||||||||||||||||||||
|Shenzhen||Cost|||||||||||||||||||||||
|||||20,000,000.00||20,000,000.00||||20,000,000.00||3.03%||3.03%||---|||||||||
|City Co.,||method|||||||||||||||||||||||
|Ltd.|||||||||||||||||||||||||
|||||||||||||||||||||15,000|||||
|Total||--||245,966,061.99||145,913,202.86||-1,746,429.31||144,166,773.55||--||--||--|||||||||
|||||||||||||||||||||.00|||||

The Company has had no significant impact on Shenzhen Huakong SEG Co., Ltd. since it relinquished its right to
the latter in March 2014, and therefore the accounting method is changed to cost method. In the table above, the
amount incurred in the current period is the investment income of Shenzhen Huakong SEG Co., Ltd. from January
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. to February 2014 determined by using the equity method.
13. Investment real estate
(1) Investment real estate by the cost method
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. Unit: CNY
||||||
|-|-|-|-|-|
||Period-end book|||Period-end book|
|Item||Current period increase|Current period decrease||
||balance|||balance|
|1. Total original book value|710,910,814.25|||710,910,814.25|
|(1) Houses and buildings|705,673,301.76|||705,673,301.76|
|(2) Land use right|5,237,512.49|||5,237,512.49|
|2. Total accumulated|||||
|depreciation and accumulated|229,393,332.42|9,323,692.35||238,717,024.77|
|amortization|||||
|(1) Houses and buildings|227,661,739.56|9,263,375.51||236,925,115.07|
|(2) Land use right|1,731,592.86|60,316.84||1,791,909.70|
|3. Total net book value of|||||
||481,517,481.83|-9,323,692.35||472,193,789.48|
|investment real estate|||||
|(1) Houses and buildings|478,011,562.20|-9,263,375.51||468,748,186.69|
|(2) Land use right|3,505,919.63|-60,316.84||3,445,602.79|
|5. Total book value of|||||
||481,517,481.83|-9,323,692.35||472,193,789.48|
|investment real estate|||||
|(1) Houses and buildings|478,011,562.20|-9,263,375.51||468,748,186.69|
|(2) Land use right|3,505,919.63|-60,316.84||3,445,602.79|

 Unit: CNY
|||
|-|-|
||Amount incurred in the report period|
|Depreciation and amortization of the current period|9,323,692.35|

 14. Fixed assets
(1) Information on fixed assets
Unit: CNY
||||||
|-|-|-|-|-|
||Period-end book||Current period|Period-end book|
|Item||Current period increase|||
||balance||decrease|balance|
|1. Total original book value|116,753,585.91|762,932.70|993,966.39|116,522,552.22|
|Therein, houses and|||||
||48,303,175.02||48,303,175.02|48,303,175.02|
|buildings|||||
|Machinery|||||
||29,758,716.85||520,077.14|29,238,639.71|
|equipment|||||
|Transportation|||||
||5,706,211.24|445,507.00|43,200.00|6,108,518.24|
|vehicles|||||

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
|||||||
|-|-|-|-|-|-|
||Period-end book|||Current period|Period-end book|
|Item||Current period increase||||
||balance|||decrease|balance|
|Electronic equipment|30,747,005.64|229,980.00||422,619.34|30,554,366.30|
|Other equipment|2,238,477.16|87,445.70||8,069.91|2,317,852.95|
||Period-end book|Current period|Provision of the|Current period|Ending balance of|
|--||||||
||balance|increase|current period|decrease|the current period|
|2. Total accumulated||||||
||74,876,931.08||2,405,681.89|879,621.20|76,402,991.77|
|depreciation:||||||
|Therein, houses and||||||
||25,771,055.49||599,722.44||26,370,777.93|
|buildings||||||
|Machinery||||||
||26,884,848.57||613,687.71|520,077.14|26,978,459.14|
|equipment||||||
|Transportation||||||
||2,564,323.82||305,813.89||2,870,137.71|
|vehicles||||||
|Electronic equipment|18,174,975.70||535,170.78|341,460.05|18,368,686.43|
|Other equipment|1,481,727.50||351,287.07|18,084.01|1,814,930.56|
||Period-end book||||Ending balance of|
|--||--||||
||balance||||the current period|
|3. Total net book value of||||||
||41,876,654.83|--|||40,119,560.45|
|fixed assets||||||
|Therein, houses and||||||
||22,532,119.53|--|||21,932,397.09|
|buildings||||||
|Machinery||||||
||2,873,868.28|--|||2,260,180.57|
|equipment||||||
|Transportation||||||
||3,141,887.42|--|||3,238,380.53|
|vehicles||||||
|Electronic equipment|12,572,029.94|--|||12,185,679.87|
|Other equipment|756,749.66|--|||502,922.39|
|Electronic equipment||--||||
|Other equipment||--||||
|5. Total book value of fixed|41,876,654.83||||40,119,560.45|
|||--||||
|assets||||||
|Therein, houses and||||||
||22,532,119.53|--|||21,932,397.09|
|buildings||||||
|Machinery||||||
||2,873,868.28|--|||2,260,180.57|
|equipment||||||
|Transportation||||||
||3,141,887.42|--|||3,238,380.53|
|vehicles||||||

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
||||||
|-|-|-|-|-|
|Item|Period-end book||Current period|Period-end book|
|||Current period increase|||
||balance||decrease|balance|
|Electronic equipment|12,572,029.94|--||12,185,679.87|
|Other equipment|756,749.66|--||502,922.39|

 The current period depreciation amount is RMB 2,405,681.89. The original value of the construction in progress reclassified as fixed assets in the current period is RMB 0.00.
(2) Information on the fixed assets without certificates of title
||||
|-|-|-|
|Item|Amount|Reason for lack of certificates of title|
|Houses and buildings|1,268,617.37|Qualification procedures not complete|

 15. Intangible assets
(1) Information on intangible assets
Unit: CNY
||||||
|-|-|-|-|-|
||Period-end book|||Period-end book|
|Item||Current period increase|Current period decrease||
||balance|||balance|
|1. Total original book value|2,424,612.24|280,000.00||2,704,612.24|
|(1) Land use right|159,759.24|||159,759.24|
|(2) Outsourced software|2,264,853.00|280,000.00||2,544,853.00|
|2. Total accumulated|||||
||1,537,710.78|124,473.78||1,662,184.56|
|amortization|||||
|(1) Land use right|51,995.03|1,379.88||53,374.91|
|(2) Outsourced software|1,485,715.75|123,094.04||1,608,809.79|
|3. Total net book value of|||||
||886,901.46|155,526.22||1,042,427.68|
|intangible assets|||||
|(1) Land use right|107,764.21|-1,379.88||106,384.33|
|(2) Outsourced software|779,137.25|156,906.10||936,043.35|
|(1) Land use right|||||
|(2) Outsourced software|||||
|4. Total book value of|886,901.46|||1,042,427.68|
|||155,526.22|||
|intangible assets|||||
|(1) Land use right|107,764.21|-1,379.88||106,384.33|
|(2) Outsourced software|779,137.25|156,906.10||936,043.35|

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. The current period amortization amount is RMB 124,473.92.
16. Goodwill
Unit: CNY
|||||||
|-|-|-|-|-|-|
|Name of the invested|||||Period-end|
|||Current period|Current period|||
|organization or the item|Beginning balance|||Closing balance|impairment|
|||increase|decrease|||
|contributing to a goodwill|||||provision|
|Changsha SEG Development Co.,||||||
||10,328,927.82|||10,328,927.82||
|Ltd.||||||
|Total|10,328,927.82|||10,328,927.82||

Notes on the testing and provision methods for goodwill impairment:
1. The Company's goodwill is the difference between the cost of business combination not under common control and the sound value of acquiree's recognizable net assets acquired through business combination.
2. The goodwill calculation process is as follows:
|||
|-|-|
|Item|Amount|
|Investment cost|69,000,000.00|
|Book value of the net assets of the invested organization|57,508,384.14|
|Estimated increment of net assets|93,383,233.24|
|Deferred income tax liabilities incurred by the estimated increment of net assets|23,345,808.30|
|Sound value of the net assets of the invested organization|127,545,809.08|
|Shareholding proportion in the invested organization|46.00%|
|The difference caused when the investment cost is more than the recognizable net assets of theinvested organization, which should be enjoyed at the time of acquisition|10,328,927.82|

The Company purchased46% of the equity of Changsha SEG Development Co., Ltd with the price of RMB 69,000,000 in March 2009. The book value of net assets of Changsha SEG Development Co., Ltd was RMB 57,508,384.14 in that March while the sound value of net assets of Changsha SEG Development Co., Ltd was RMB 127,545,809.08 after value-added assessment, thus forming goodwill of RMB 10,328,927.82.
The goodwill impairment testing was conducted at the end of the period and there was no sign of impairment, so no provision was accrued for impairment.
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. 17. Long-term deferred expenses
Unit: CNY
||||||||
|-|-|-|-|-|-|-|
||||Current period||||
||Period-beginning|Current period|||Period-end|Reason for other|
|Item|||amortization|Other decrease|||
||amount|increase|||amount|decrease|
||||amount||||
|Decoration|||||||
||43,122,826.78|2,754,988.62|5,979,056.44||39,898,758.96||
|charges|||||||
|Firefighting|||||||
||280,819.11|630,032.00|782,419.89||128,431.22||
|renovation|||||||
|Land price of|||||||
|Block B and|||||||
||775,158.15|659,062.81|20,856.30||1,413,364.66||
|infrastructure|||||||
|expense|||||||
|Total|44,178,804.04|4,044,083.43|6,782,332.63||41,440,554.84|--|

 18. Deferred income tax assets and deferred income tax liabilities
(1) Deferred income tax assets and deferred income tax liabilities that are not listed in the form of net values after offset
Deferred income tax assets and liabilities that have been confirmed
Unit: CNY
||||
|-|-|-|
|Item|Period-end amount|Period-beginning amount|
|Deferred income tax assets|||
|Asset impairment provision|8,174,634.16|8,177,489.16|
|Subtotal|8,174,634.16|8,177,489.16|
|Deferred income tax liabilities|||
|Changes on the sound value of financial assets|||
|available for sale, which is accrued as capital|93,758.41|118,031.61|
|public reserve|||
|Change of the sound value of houses and|||
|buildings due to mergers (by evaluating the|17,523,947.39|18,078,410.29|
|increase in value)|||
|Subtotal|17,617,705.80|18,196,441.90|

 Details of the deferred income tax assets that are not confirmed
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. Unit: CNY
||||
|-|-|-|
|Item|Period-end amount|Period-beginning amount|
|Deductible temporary difference||11,278,568.98|
|Deductible losses||43,425,688.98|
|Total||54,704,257.96|

 The deductible losses of deferred income tax assets that are not confirmed will come due in the following years:
Unit: CNY
|||||
|-|-|-|-|
|Year|Period-end amount|Period-beginning amount|Remarks|
|2013||366,612.59||
|2014|6,621,227.68|10,534,872.67||
|2015||||
|2016|16,667,858.70|19,695,459.23||
|2017|7,431,196.64|8,597,843.20||
|2018|12,705,405.96|||
|Total|43,425,688.98|39,194,787.69|--|

Details of the taxable differences and deductible differences
Unit: CNY
||||
|-|-|-|
||Amount of temporary differencesPeriod end Period beginning||
|Item|||
|||Period beginning|
|Taxable differences|||
|Changes in fair value|70,470,823.09||
|Subtotal|70,470,823.09||
|Deductible differences|||
|Asset impairment provision|32,698,536.58||
|Subtotal|32,698,536.58||

19. Provision for asset impairment
Unit: CNY
|||||||
|-|-|-|-|-|-|
||Period-end book|Current period|Current period decrease||Period-end book|
|Item||||||
||balance|increase|Write back|Write off|balance|
|1. Bad debt provision|43,973,525.56||14,558.99||43,958,966.57|
|5. Long-term equity investment|||||15,000.00|
||15,000.00|||||
|impairment provision||||||
|14. Others|3,387,042.58||273,948.29||3,113,094.29|
|Total|47,375,568.14||288,507.28||47,087,060.86|

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. 20. Short-term loans
(1) Classification of short-term loans
Unit: CNY
||||
|-|-|-|
|Item|Period-end amount|Period-beginning amount|
|Pledge loans|59,950,719.04||
|Mortgage loans|100,000,000.00||
|Guaranteed loans|30,000,000.00|70,000,000.00|
|Total|189,950,719.04|70,000,000.00|

 Notes on the classification of short-term loans:
21. Accounts payable
(1) Information on the accounts payable
Unit: CNY
||||
|-|-|-|
|Item|Period-end amount|Period-beginning amount|
|Less than one year|78,301,522.25|181,630,365.52|
|1-2 years|88,418.14|67,437.95|
|2-3 years|35,678.60|30,743.38|
|Over 3 years|22,595.23|22,595.63|
|Total|78,448,214.22|181,751,142.48|

 22. Accounts received in advance
(1) Information on the accounts received in advance
Unit: CNY
||||
|-|-|-|
|Item|Period-end amount|Period-beginning amount|
|Less than one year|168,017,206.37|206,891,690.41|
|1-2 years|1,378,000.00|1,792,799.49|
|2-3 years|||
|Over 3 years|||
|Total|169,395,206.37|208,684,489.90|

23. Wages payable
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. Unit: CNY
||||||
|-|-|-|-|-|
|Item|Period-end book balance|Current period increase|Current period decrease|Period-end book balance|
|1. Wages, bonuses,|||||
|allowances and|14,095,932.51|19,972,210.99|30,443,021.06|3,625,122.44|
|subsidies|||||
|2. Benefits of|||||
|||200,184.79|210,384.79|-10,200.00|
|employees|||||
|3. Social insurance|||||
||462,874.57|1,668,504.46|1,584,724.37|546,654.66|
|premiums|||||
|4. Housing fund|1,266,226.48|673,597.06|683,811.54|1,256,012.00|
|5. Dismissal benefits|695,916.72|374,527.58|381,479.79|688,964.51|
|6. Others|544,432.00|607,828.12|570,498.12|581,762.00|
|(1) Compensations|||||
|for termination of||43,376.12|43,376.12||
|employment|||||
|Total|17,065,382.28|23,496,853.00|33,873,919.67|6,688,315.61|

 The wages payable in arrears amounted to RMB 0.00.
The non-monetary benefits amounted to RMB 0.00 and the compensations for termination of employment amounted to RMB 0.00. 24. Taxes payable
Unit: CNY
||||
|-|-|-|
|Item|Period-end amount|Period-beginning amount|
|Value-added tax|6,734,248.73|1,888,195.42|
|Business tax|-1,165,387.42|1,531,012.70|
|Enterprise income tax|17,143,622.05|28,888,087.03|
|Individual income tax|1,905,936.47|1,039,647.28|
|Urban maintenance and construction tax|538,710.99|1,142,327.32|
|Education surtax|348,357.95|783,608.53|
|Housing property tax|987,138.52|1,597,968.75|
|Stamp tax and water fund|77,209.95|211,126.00|
|Others|2,487,104.12|82,919.18|
|Total|29,056,941.36|37,164,892.21|

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. 25. Interest payable
Unit: CNY
||||
|-|-|-|
|Item|Period-end amount|Period-beginning amount|
|Interest payable on short-term loans|325,333.32|0.00|
|Total|325,333.32|0.00|

 26. Dividend payable
Unit: CNY
|||||
|-|-|-|-|
||||Reason for not making payment for|
|Name of company|Period-end amount|Period-beginning amount||
||||over one year|
|Shenzhen Weixingda Industrial||||
||594,000.00|||
|Corporation||||
|Hangzhou Shenzhou Real Estate||||
||198,000.00|||
|Company||||
|Shenzhen SEG Bonded Trade Co.,||||
||99,000.00|||
|Ltd.||||
|Shenzhen SEG Group Co., Ltd.|6,950,277.24|||
|Shenzhen SEG Property||||
||1,463,216.26|||
|Development Co., Ltd.||||
|China Electronic Appliance||||
||356,400.00|158,400.00||
|(Shenzhen) Co., Ltd||||
|Shenzhen SEG Computers Co., Ltd|543,510.00|444,510.00||
|Nanjing Shangsha Co., Ltd|522,720.00|423,720.00||
|Individual shares|161,509.00|170,863.13||
|Others|70,223.20|70,223.27||
|A shares|3,881.48|3,881.48||
|B shares|45,698.54|45,698.54||
|Total|11,008,435.72|1,317,296.42|--|

27. Other accounts payable
(1) Information on other accounts payable
Unit: CNY
||||
|-|-|-|
|Item|Period-end amount|Period-beginning amount|
|Less than one year|122,486,986.11|78,803,817.91|

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Item|Period-end amount|Period-beginning amount|
|1-2 years|30,805,409.52|25,208,410.78|
|2-3 years|8,762,766.12|19,173,617.63|
|Over 3 years|26,521,940.07|41,003,972.49|
|Total|188,577,101.82|164,189,818.81|

 (2) Shareholder that holds5% or more voting shares of the Company in other accounts payable in the report period
Unit: CNY
||||
|-|-|-|
|Name of company|Period-end amount|Period-beginning amount|
|Shenzhen SEG Group Co., Ltd.|200,000.00|200,000.00|
|Total|200,000.00|200,000.00|

 (3) Information on other large amount accounts payable
|||||
|-|-|-|-|
|Name of company|Amount|Nature or content|Remarks|
|Rental deposit from various electronicsmarket|39,933,280.34|Rental deposit||
|The comprehensive deposit of SEG Plaza|29,370,655.36|Rental deposit||
|Deposit from cooperation partners ofelectronics market|10,910,000.00|Deposit||
|Rental deposit of Baohua Electronics Market|7,480,751.38|Rental deposit||
|Maintenance fee for central air conditioningsystem (ACS) of Baohua Electronics Market|7,722,903.24|Maintenance fee for central ACS||

28. Other current liabilities
Unit: CNY
||||
|-|-|-|
|Item|Period-end book balance|Period-end book balance|
|Principal and interest of the Company's|||
||252,056,250.66|0.00|
|short-term financing bonds|||
|Total|252,056,250.66|0.00|

 Notes on other current liabilities:
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. 29. Long-term loans
(1) Classification of long-term loans
Unit: CNY
||||
|-|-|-|
|Item|Period-end amount|Period-beginning amount|
|Guaranteed loans|72,000,000.00|0.00|
|Total|72,000,000.00|0.00|

 30. Other non-current liabilities
Unit: CNY
||||
|-|-|-|
|Item|Period-end book balance|Period-end book balance|
|Government subsidies|579,055.83|762,246.19|
|Total|579,055.83|762,246.19|

 31. Share capital
Unit: CNY
|||||||||
|-|-|-|-|-|-|-|-|
|||Increase/Decrease by (±)||||||
||Period-beginning|||Capitalization|||Period-end|
|||New share||||||
||amount||Bonus share|of public|Others|Subtotal|amount|
|||offering||||||
|||||reserve||||
|Sum of shares|784,799,010.00||||||784,799,010.00|

 32. Capital public reserve
Unit: CNY
||||||
|-|-|-|-|-|
||Period-beginning||Current period||
|Item||Current period increase||Period-end amount|
||amount||decrease||
|Capital premium (capital share|||||
||322,272,354.94|||322,272,354.94|
|premium)|||||
|(1) Other changes on owners’ equity|||||
|of the invested organization except|82,069,461.20|||82,069,461.20|
|net gains and losses|||||
|(2) Gain or loss from change of the|||||
|sound value of financial assets|235,756.32||48,483.29|187,273.03|
|available for sale|||||
|(3) Others|15,451.59|||15,451.59|
|Total|404,593,024.05||48,483.29|404,544,540.76|

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. Notes on capital public reserve
The capital public reserve increased due to the sound value change of available-for-sale financial assets was the sound value change of Xinjiang Youhao (Group) Co., Ltd. (stock code: 600778) shares held by Shenzhen SEG Baohua Enterprise Development Co., Ltd. 33. Surplus public reserve
Unit: CNY
||||||
|-|-|-|-|-|
||Period-beginning||Current period||
|Item||Current period increase||Period-end amount|
||amount||decrease||
|Statutory surplus reserve|102,912,835.67|||102,912,835.67|
|Total|102,912,835.67|||102,912,835.67|

 34. Retained profits
Unit: CNY
||||
|-|-|-|
|Item|Amount|Accrual/Distribution Rate|
|Retained profits at the end of the previous year|||
||-42,080,494.64|--|
|before adjustment|||
|Year-beginning retained profits after adjustment|-42,080,494.64|--|
|Add: Net profits attributable to the parent|||
||37,645,842.28|--|
|company owner in the current period|||
|Year-end retained profits|-4,434,652.36|--|

Details of the adjustment of year-beginning retained profits:
1) The year-beginning retained profits of RMB 0.00 was affected by the retroactive adjustment as specified in the Accounting Criteria for Enterprises and related new regulations.
2) The year-beginning retained profits of RMB 0.00 was affected by the change of accounting policies.
3) The year-beginning retained profits of RMB 0.00 was affected by the correction of significant accounting errors.
4) The year-beginning retained profits of RMB 0.00 was affected by the combination scope change because businesses are under common control.
5) The year-beginning retained profits of RMB 0.00 was affected by other adjustments.
35. Total operating income and operating cost
(1) Total operating income and operating cost
Unit: CNY
||||
|-|-|-|
|Item|Amount incurred in the report period|Amount incurred in the previous period|
|Total operating income|337,216,748.01|292,942,040.76|
|Operating cost|248,349,208.37|212,671,918.66|

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. (2) Main business (by industry)
Unit: CNY
||||||
|-|-|-|-|-|
||Amount incurred in the report period||Amount incurred in the previous period||
|Name of industry|||||
||Total operating income|Operating cost|Total operating income|Operating cost|
|Electronics market and property|||||
||194,173,058.54|131,625,355.81|181,741,183.28|116,124,886.47|
|operation|||||
|Trade|88,254,558.24|86,955,143.45|87,744,338.43|85,699,912.97|
|Hotel|10,341,849.35|7,533,850.43|9,785,721.14|7,111,851.56|
|E-commerce|23,371,914.88|20,226,205.38|210,938.39|2,571,957.86|
|Finance|21,075,367.00|2,008,653.30|13,459,859.52|1,163,309.80|
|Total|337,216,748.01|248,349,208.37|292,942,040.76|212,671,918.66|

 (3) Main business (by region)
Unit: CNY
||||||
|-|-|-|-|-|
||Amount incurred in the report period||Amount incurred in the previous period||
|Name of region|||||
||Total operating income|Operating cost|Total operating income|Operating cost|
|Shenzhen|||212,564,655.73|144,778,340.20|
||237,334,729.44|166,166,279.18|||
|Xi’an|27,278,719.61|19,328,367.98|24,752,116.45|18,129,611.48|
|Su Zhou|27,611,202.83|22,521,217.57|23,027,258.40|18,848,356.52|
|Changsha|14,735,844.58|12,332,514.63|14,462,011.42|12,000,241.29|
|Nanjing|21,910,967.04|20,467,953.95|17,092,962.69|15,975,591.28|
|Foshan|1,123,559.89|1,032,615.18|1,043,036.07|2,443,053.42|
|Wuxi|1,684,201.54|2,055,411.11|||
|Nanning|5,537,523.08|4,444,848.77||496,724.47|
|Nantong|||||
|Total|337,216,748.01|248,349,208.37|292,942,040.76|212,671,918.66|

 (4) List of top five clients sorted by the amount of operating income
Unit: CNY
||||
|-|-|-|
|Client Name|Main operating income|Percentage of total|
|Shenzhen Runneng Digital Co., Ltd.|46,918,421.02|13.91%|
|Shenzhen Wodewo Industry Co., Ltd.|14,791,077.67|4.39%|
|Shenzhen Nanfang Yunhe Technology Co., Ltd.|8,714,738.17|2.58%|

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Client Name|Main operating income|Percentage of total|
|Shenzhen Comnet Technology Co., Ltd.|5,568,131.73|1.65%|
|Dalian Dier Computer Co., Ltd.|4,474,768.80|1.33%|
|Total|80,467,137.39|23.86%|

 Notes on operating income:
36. Business taxes and surcharges
Unit: CNY
|||||
|-|-|-|-|
||Amount incurred in the|Amount incurred in the||
|Item|||Taxation standards|
||report period|previous period||
|Business tax|11,276,141.66|10,202,386.91||
|Urban maintenance and construction||||
||852,218.58|739,138.76||
|tax||||
|Education surtax|542,120.27|499,494.49||
|Others|147,373.01|56,231.48||
|Total|12,817,853.52|11,497,251.64|--|

37. Administrative expenses
Unit: CNY
||||
|-|-|-|
|Item|Amount incurred in the report period|Amount incurred in the previous period|
|Total|15,637,568.42|17,031,998.58|

 38. Financing expenses
Unit: CNY
||||
|-|-|-|
|Item|Amount incurred in the report period|Amount incurred in the previous period|
|Interest expenses|7,784,610.29|522,278.65|
|Less: Interest income|6,615,020.39|5,844,766.44|
|Loss on exchange|-957,622.03|5,550.18|
|Commission|176,894.59|152,972.64|
|Total|388,862.46|-5,163,964.97|

 39. Investment income
(1) Details of investment income
Unit: CNY
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Item|Amount incurred in the report period|Amount incurred in the previous period|
|Long-term equity investment income by the equity|||
||-1,746,429.31|-2,549,638.57|
|method|||
|Income from disposal of long-term equity|||
|||1,725,988.94|
|investments|||
|Others|13,477,970.15|9,518,204.61|
|Total|11,731,540.84|8,694,554.98|

 (2) Long-term equity investment income by the equity method
Unit: CNY
|||||
|-|-|-|-|
||Amount incurred in the|Amount incurred in||
|Invested organization|||Reason for change|
||report period|the previous period||
|Shenzhen Huakong SEG Co., Ltd.|-1,808,722.02|-3,979,819.79||
|Shanghai SEG Electronics Market Co.,||||
||62,292.71|706,435.77||
|Ltd.||||
|Shenzhen SEG New Urban||||
||0.00|723,745.45||
|Construction Development Co., Ltd.||||
|Total|-1,746,429.31|-2,549,638.57|--|

The Company has had no significant impact on Shenzhen Huakong SEG Co., Ltd. since it relinquished its right to the latter in March 2014, and therefore the accounting method is changed to cost method. In the table above, the amount incurred in the current period is the investment income of Shenzhen Huakong SEG Co., Ltd. from January to February 2014 determined by using the equity method.
40. Assets impairment losses
Unit: CNY
||||
|-|-|-|
||Amount incurred in the report|Amount incurred in the previous|
|Item|||
||period|period|
|1. Loss on bad debt|-14,558.99||
|2. Others|-273,948.29|270,241.51|
|Total|-288,507.28|270,241.51|

 41. Non-operating income
(1) Details of non-operating income
Unit: CNY
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
|||||
|-|-|-|-|
||||Amount recorded into|
||Amount incurred in the|Amount incurred in the||
|Item|||current non-recurring gains|
||report period|previous period||
||||and losses|
|Total gains on disposal of non-current assets|20,120.00|44,307.25|20,120.00|
|Therein, gain on disposal of fixed assets|20,120.00|44,307.25|20,120.00|
|Government subsidies|693,467.78|1,088,917.36|693,467.78|
|Liquidated damages|221,182.08|112,126.00|221,182.08|
|Others|307,565.63|256,608.07|307,565.63|
|Total|1,242,335.04|1,501,958.68|1,242,335.49|

 42. Non-operating expenses
Unit: CNY
||||
|-|-|-|
|Item|Amount incurred in the report period|Amount incurred in the previous period|
|Therein, loss on disposal of fixed assets|4,831.25|4,864.51|
|Abnormal loss|32,400.00||
|Others|94,733.88|9,878.53|
|Total|131,965.13|14,743.04|

 43. Income tax expenses
Unit: CNY
||||
|-|-|-|
||Amount incurred in the report|Amount incurred in the|
|Item|||
||period|previous period|
|Income tax of the current period calculated according to tax|||
||19,139,709.37|17,857,275.00|
|laws and relevant regulations|||
|Deferred income tax|-506,609.32|-611,656.67|
|Total|18,633,100.05|17,245,618.33|

 44. Calculation of basic earnings per share (basic EPS) and diluted earnings per share (diluted EPS) The following table lists the Company's EPS calculated according to the requirements of Rule 9 on Information Disclosure by Companies Publicly Issuing Securities— Calculation and Disclosure of Return on Equity and Earnings per Share (2010 Amendment) (CSRC Announcement[2010] No. 2) and the Interpretive Bulletin No. 1 on Information Disclosure by Companies Publicly Issuing Securities— Non-recurring Gains and Losses (2008)
(CSRC Announcement[2008] No. 43).
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. 1. Calculation results
||||||
|-|-|-|-|-|
|Profit in report period|Amount incurred in the report period||Amount incurred in the previous period||
||Basic EPS|Diluted EPS|Basic EPS|Diluted EPS|
|Net profit attributable to the commonshareholders of the Company (I)|0.0480|0.0480|0.0506|0.0506|
|Net profit attributable to the commonshareholders of the Company after deduction ofnon-recurring gains and losses (II)|0.0468|0.0468|0.0496|0.0496|

2. EPS calculation process
|||||
|-|-|-|-|
|Item|No.|Amount incurred in thereport period|Amount incurred in theprevious period|
|Net profit attributable to common shareholders of theCompany|1|37,645,842.28|39,674,066.28|
|Net profit attributable to common shareholders of theparent company after deduction of non-recurringlosses and gains (The impact of business income taxneeds to be considered)|2|906,905.58|784,116.91|
|Net profit attributable to common shareholders of theCompany after deduction of non-recurring losses andgains|3=1-2|36,738,936.70|38,889,949.37|
|Period-beginning shares in total (S0)|4|784,799,010.00|784,799,010.00|
|Shares increased because the capital reserve istransferred as share capital or share dividends aredistributed (S1)|5|||
|Shares increased because new shares are issued orliabilities are transferred as shares (Si)|6|||
|Shares increased because new shares are issued orliabilities are transferred as shares from the nextmonth to the end of the report period|7|||
|Shares decreased because shares are repurchased.|8|||
|Shares decreased from the next month to the end ofthe report period|9|||
|Number of compressed shares in the reporting period|10|||
|Number of months in the report period (M0)|11|||
|Weighted-average number of shares outstanding (II)|12=4+5+6×7÷11-8×9÷11-10|784,799,010.00|784,799,010.00|

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
|||||
|-|-|-|-|
|Item|No.|Amount incurred in thereport period|Amount incurred in theprevious period|
|Weighted-average number of shares outstandingadjusted because of business combination undercommon control (I)|13|||
|Basic EPS (I)|14=1÷12|0.0480|0.0506|
|Basic EPS (II)|15=3÷12|0.0468|0.0496|
|Interests of dilutive potential ordinary sharesdetermined to be expenses and other factors|16|||
|Income tax rate|17|||
|Exchange fee|18|||
|Number of shares increased because convertiblecorporate bonds, share warrants, and share optionsare converted or exercised.|19|||
|Diluted EPS (I)|20=[1+(16-18)×(100%-17)]÷(13+19)|0.0480|0.0506|
|Diluted EPS (II)|21=[3+(16-18)×(100%-17)]÷(12+19)|0.0468|0.0496|

(1) Basic EPS
BasicEPS=P0÷S
S= S0+ S1+ Si× Mi÷ M0 - Sj× Mj÷ M0 - Sk
Therein, P0 is the net profit attributable to the Company's common shareholders or the net profit attributable to the Company's common shareholders after deduction of non-recurring gains and losses; S0 is the total number of shares at the beginning of the period; S1 is the number of shares increased due to capitalization from capital public reserve or distribution of stock dividends in the report period; Si is the number of shares increased due to issuance of new shares or debt-for-equity swap in the report period; Sj is the number of shares decreased due to share repurchase in the report period; Sk is the number of compressed shares in the report period; M0 is the number of months in the report period; Mi is the number of months from the next month after share increase to the
end of the report period; Mj is the accumulated number of months from the next month after share decrease to the
end of the report period.
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. (2) Diluted EPS
DilutedEPS=P1/(S0+ S1+ Si× Mi÷ M0– Sj× Mj÷ M0– Sk+ Weighted-average number of shares that are increased through warrant, share option and convertible bonds)
Therein, P1 is the net profit attributable to the Company's common shareholders or the net profit attributable to the Company's common shareholders after deduction of non-recurring gains and losses, and P1 will be adjusted considering the effects of dilutive potential ordinary shares in accordance with the Accounting Standards for Enterprises and related regulations. While the diluted EPS is calculated, the impact of dilutive potential ordinary shares on the net profit attributable to common shareholders of the Company or the net profit attributable to common shareholders of the Company after deduction of non-recurring losses and gains is taken into account. The dilutive potential ordinary shares are charged to the diluted EPS in descending order of the extent of dilution until the diluted EPS reaches the minimum value.
45. Other comprehensive income
Unit: CNY
||||
|-|-|-|
||Amount incurred in the report|Amount incurred in the|
|Item|||
||period|previous period|
|1. Gains (losses) from financial assets available for sale|-97,092.80|-228,774.91|
|Less: Influence of income tax incurred from financial assets|||
||-24,273.20|-57,193.73|
|available for sale|||
|Subtotal|-72,819.60|-171,581.18|
|Total|-72,819.60|-171,581.18|

 46. Notes to the cash flow statement
(1) Cash received relating to other operating activities
Unit: CNY
|||
|-|-|
|Item|Amount|
|Incomings and outgoings|78,123,582.27|
|Goods payment collected from tenants|122,433,972.66|
|Interest income|6,615,020.39|
|Non-operating income|743,165.02|
|Total|207,915,740.34|

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. (2) Cash paid relating to other operating activities
Unit: CNY
|||
|-|-|
|Item|Amount|
|Incomings and outgoings|55,893,256.02|
|Goods payment paid for tenants|122,556,255.62|
|Cash expenses|33,987,297.20|
|Non-operating expenses|95,010.95|
|Total|212,531,819.79|

 (3) Cash received relating to other financing activities
Unit: CNY
|||
|-|-|
|Item|Amount|
|Issuance of the Company's short-term financing bonds|250,000,000.00|
|Total|250,000,000.00|

 (4) Cash paid relating to other financing activities
Unit: CNY
|||
|-|-|
|Item|Amount|
|Payment for issuance of short-term financing bonds|240,000.00|
|Total|240,000.00|

 47. Supplementary information to cash flow statement
(1) Supplementary information to cash flow statement
Unit: CNY
||||
|-|-|-|
|Supplementary Materials|Amount of the current period|Amount of the previous period|
|1. Reconciliation of net income to cash flow from operating|||
||--|--|
|activities|||
|Net income|51,824,780.37|48,280,238.35|
|Add: Asset impairment provision|-288,507.28|270,241.51|
|Depreciation of fixed assets, oil & gas assets and|||
||11,729,374.25|12,058,927.20|
|consumable biological assets|||
|Amortization of intangible assets|124,473.92|124,334.16|
|Amortization of long-term expenses to be apportioned|6,782,332.63|6,546,672.01|

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Supplementary Materials|Amount of the current period|Amount of the previous period|
|Losses on the disposal of fixed assets, intangible assets and|||
||-15,288.75|-39,442.74|
|long-term assets (Fill in ―–‖ for gains)|||
|Financial expenses (Fill in ―–‖ for gains)|7,784,610.29|-5,163,964.97|
|Investment loss (Fill in ―–‖ for gains)|-11,731,540.84|-8,694,554.98|
|Decrease in deferred tax assets (Fill in ―–‖ for increase)|2,855.00||
|Increase in deferred tax liabilities (Fill in ―–‖ for decrease)|-578,736.10|-611,656.65|
|Inventory decrease (Fill in ―–‖ for increase)|-76,235,859.67|-86,684,560.34|
|Decrease in accounts receivable relating to operating|||
||-12,125,065.56|-36,544,249.27|
|activities (Fill in ―–‖ for increase)|||
|Increase in accounts payable relating to operating activities|||
||-81,655,624.85|9,760,721.94|
|(Fill in ―–‖ for decrease)|||
|Net cash flow arising from operating activities|-104,382,196.59|-60,697,293.78|
|2. Major investing and financing activities that involve no|||
||--|--|
|cash payments and receipts:|||
|3. Change in cash and cash equivalents:|--|--|
|Closing balance|629,339,292.58|421,888,702.77|
|Less: cash at the beginning of the period|335,593,493.81|453,132,467.18|
|Net increase in cash and cash equivalents|293,745,798.77|-31,243,764.41|

 (2) Composition of cash and cash equivalents
Unit: CNY
||||
|-|-|-|
|Item|Period-end amount|Period-beginning amount|
|I. Cash|629,339,292.58|335,593,493.81|
|Including: Cash on hand|496,088.31|496,319.50|
|Bank deposits available for payment at any time|628,843,204.27|335,064,832.27|
|Other monetary capital available for payment at any|||
|||32,342.04|
|time|||
|III. Period-end balance of cash and cash equivalents|629,339,292.58|335,593,493.81|

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.VIII． Related Parties and Related Party Transactions
1. Information on theCompany’s parent company
|||||||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||ynapmoctnerapfoemaN||pihsnoitaleRnoitaicossA||esirpretnefoepyT||noitartsigerfoecalP||evitatneserpeRlageL||ssenisubfoerutaN||:tinU(latipacderetsigeR|)YNC|s'ynapmoCehtfoegatnecreP|tnerapehtybdlehserahs|ynapmoc||s'ynapmoCehtfoegatnecreP|ehtybdlehserahsgnitov|ynapmoctnerap||ytrapgnillortnocetamitlU||edocnoitazinagrO|
|Shenzhen||||||||||||||||||||||ShenzhenSASAC||||
|||||Limited||||||||||||||||||||||
|SEG||Controlling||||||Sun||||||||||||||||||
|||||liability||Shenzhen||||State-owned||135,542.00|||30.24%|||30.24%||||||19218093-0||
|Group Co.,||shareholder||||||Shengdian||||||||||||||||||
|||||company||||||||||||||||||||||
|Ltd.||||||||||||||||||||||||||

2. Information on theCompany’s subsidiaries
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|||||||Registered||||
||||||Nature|||Voting||
|Full name of|Type of|Type of|Place of|Legal||capital|Shareholding||Organization|
||||||of|||share||
|subsidiary|subsidiary|enterprise|registration|Representative||(Unit:|percentage||code|
||||||business|||percentage||
|||||||CNY)||||
|Xi’an SEG||||||||||
||Share-contr|Limited||||||||
|Electronics|||||Service|||||
||olled|liability|Xi’an|Liu Zhijun||3,000,000|65.00%|65.00%|74283072-4|
|Market Co.,|||||industry|||||
||subsidiary|company||||||||
|Ltd.||||||||||
|Shenzhen||||||||||
|SEG||||||||||
||Share-contr|Limited||||||||
|Electronics|||||Service|||||
||olled|liability|Shenzhen|Liu Zhijun||3,000,000|70.00%|70.00%|77413117-8|
|Market|||||industry|||||
||subsidiary|company||||||||
|Management||||||||||
|Co., Ltd.||||||||||
|Suzhou SEG||||||||||
||Share-contr|Limited||||||||
|Electronics|||||Service|||||
||olled|liability|Su Zhou|Zheng Dan||3,000,000|45.00%|45.00%|78205845X|
|Market Co.,|||||industry|||||
||subsidiary|company||||||||
|Ltd.||||||||||
|Shenzhen||||||||||
|SEG Baohua|Share-contr|Company||||||||
||||||Service|||||
|Enterprise|olled|limited by|Shenzhen|Zheng Dan||30,808,800|66.58%|66.58%|19219334-4|
||||||industry|||||
|Development|subsidiary|shares||||||||
|Co., Ltd.||||||||||

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|||||||Registered||||
||||||Nature|||Voting||
|Full name of|Type of|Type of|Place of|Legal||capital|Shareholding||Organization|
||||||of|||share||
|subsidiary|subsidiary|enterprise|registration|Representative||(Unit:|percentage||code|
||||||business|||percentage||
|||||||CNY)||||
|Shenzhen||||||||||
|SEG|Share-contr|Limited||||||||
||||||Service|||||
|Industrial|olled|liability|Shenzhen|Zhu Longqing||25,500,000|100.00%|100.00%|19219150-9|
||||||industry|||||
|Investment|subsidiary|company||||||||
|Co., Ltd.||||||||||
|Changsha||||||||||
||Share-contr|Limited||||||||
|SEG|||||Service|||||
||olled|liability|Changsha|Zhu Longqing||35,000,000|46.00%|51.00%|616600581|
|Development|||||industry|||||
||subsidiary|company||||||||
|Co., Ltd.||||||||||
|Shenzhen||||||||||
|Mellow|Share-contr|Limited||||||||
||||||Service|||||
|Orange Hotel|olled|liability|Shenzhen|Bo Hongxi||10,000,000|66.58%|66.58%|69556368-5|
||||||industry|||||
|Management|subsidiary|company||||||||
|Co., Ltd||||||||||
|Shenzhen|Share-contr|Limited||||||||
|SEG Credit|olled|liability|Shenzhen|Wang Li|Finance|150,000,000|53.02%|53.02%|58792690-1|
|Co., Ltd.|subsidiary|company||||||||
|Shenzhen||||||||||
||Share-contr|Limited||||||||
|SEG|||||E-comm|||||
||olled|liability|Shenzhen|Liu Zhijun||48,000,000|51.00%|51.00%|56854637-2|
|E-Commerce|||||erce|||||
||subsidiary|company||||||||
|Co., Ltd.||||||||||
|Shenzhen||||||||||
|SEG||||||||||
||Share-contr|Limited||||||||
|Electronics|||||Service|||||
||olled|liability|Nanjing|Zhu Longqing||20,000,000|100.00%|100.00%|57158102-1|
|Market|||||industry|||||
||subsidiary|company||||||||
|Management||||||||||
|Co., Ltd.||||||||||
|Xi’an||||||||||
|Hairong SEG|Share-contr|Limited||||||||
||||||Service|||||
|Electronics|olled|liability|Xi’an|Liu Zhijun||3,000,000|51.00%|51.00%|57843107-7|
||||||industry|||||
|Market Co.,|subsidiary|company||||||||
|Ltd.||||||||||
|Wujiang||||||||||
|SEG|Share-contr|Limited||||||||
||||||Service|||||
|Electronics|olled|liability|Wujiang|Zheng Dan||3,000,000|51.00%|51.00%|05353484-X|
||||||industry|||||
|Market Co.,|subsidiary|company||||||||
|Ltd.||||||||||

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|||||||Registered||||
||||||Nature|||Voting||
|Full name of|Type of|Type of|Place of|Legal||capital|Shareholding||Organization|
||||||of|||share||
|subsidiary|subsidiary|enterprise|registration|Representative||(Unit:|percentage||code|
||||||business|||percentage||
|||||||CNY)||||
|Wuxi SEG||||||||||
||Share-contr|Limited||||||||
|Electronics|||||Service|||||
||olled|liability|Wuxi|Zhu Longqing||3,000,000|51.00%|51.00%|05662319-4|
|Market Co.,|||||industry|||||
||subsidiary|company||||||||
|Ltd||||||||||
|Shunde SEG||||||||||
|Electronics|Share-contr|Limited||||||||
||||||Service|||||
|Market|olled|liability|Foshan|Liu Dong||6,000,000|100.00%|100.00%|05856554-9|
||||||industry|||||
|Management|subsidiary|company||||||||
|Co., Ltd||||||||||
|Nantong||||||||||
|SEG Times|Share-contr|Limited||||||||
||||||Service|||||
|Square|olled|liability|Nantong|Liu Zhijun||30,000,000|100.00%|100.00%|06320635-6|
||||||industry|||||
|Development|subsidiary|company||||||||
|Co., Ltd.||||||||||
|Nanning||||||||||
|SEG||||||||||
||Share-contr|Limited||||||||
|Electronics|||||Service|||||
||olled|liability|Nanning|Zhu Longqing||8,000,000|100.00%|100.00%|06885667-3|
|Market|||||industry|||||
||subsidiary|company||||||||
|Management||||||||||
|Co., Ltd.||||||||||
|Yantai SEG||||||||||
||Share-contr|Limited||||||||
|Times Square|||||Service|||||
||olled|liability|Yantai|Liu Zhijun||100,000,000|90.00%|90.00%|49356154-2|
|Development|||||industry|||||
||subsidiary|company||||||||
|Co., Ltd.||||||||||
|Nantong||||||||||
|SEG||||||||||
||Wholly-ow|Limited||||||||
|Business|||||Service|||||
||ned|liability|Nantong|Bo Hongxi||5,000,000|100.00%|100.00%|30210412-0|
|Operation|||||industry|||||
||subsidiary|company||||||||
|Management||||||||||
|Co., Ltd.||||||||||

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. 3. Information on theCompany’s joint ventures and associates
|||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||ynapmocdetsevniehtfoemaN||esirpretnefoepyT||noitartsigerfoecalP||evitatneserpeRlageL||ssenisubfoerutaN||)YNC(latipacderetsigeR||ehtfoegatnecrepgnidloherahS|ynapmoC|ehtfoegatnecreperahsgnitoV|detsevniehtniynapmoC|ynapmoc||pihsnoitalerdetaicossA||edocnoitazinagrO|
|2. Associates||||||||||||||||||||||
|Shanghai SEG||||||||||||||||||||||
|||Limited||||||||||||||||||||
|Electronics||||||||Service||5,000,000.0||||||||||||
|||liability||Shanghai||Song Xun||||||35.00%|||35.00%|||Associate||72937044-4||
|Market Co.,||||||||industry||0||||||||||||
|||company||||||||||||||||||||
|Ltd||||||||||||||||||||||

4. Information on theCompany’s other related parties
||||
|-|-|-|
|Name of related party|Relationship with the Company|Organization code|
|Shenzhen SEG Property Development Co.,|||
||Subsidiary of the first majority shareholder|19227219x|
|Ltd.|||
|Shenzhen SEG Group Service Co., Ltd|Subsidiary of the first majority shareholder||
|Shenzhen SEG Computers Co., Ltd|Subsidiary of the first majority shareholder||
|Shenzhen SEG Hi-tech Industrial Co., Ltd.|Subsidiary of the first majority shareholder|19226803-5|
|Shenzhen SEG Real Estate Investment|||
||Subsidiary of the first majority shareholder|19217633-3|
|Co., Ltd.|||
|Shenzhen SEG Business Operation Co.,|||
||Subsidiary of the controlling shareholder||
|Ltd.|||

5. Related party transactions
(1) Information on entrusted management
Information on theCompany’s entrusted management
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. Unit: CNY
||||||||
|-|-|-|-|-|-|-|
|||||||Income from|
||||||Pricing basis for||
|||||||entrusted|
|Name of|Name of|Type of|||income from||
|||||||management/contr|
|entrusting/contract|entrusted|entrusted/contract|Starting date|Ending date|entrusted||
|||||||acting confirmed|
|issuing party|party/contractor|ed assets|||management/contr||
|||||||in the report|
||||||acting||
|||||||period|
|||SEG|||Entrusted||
|Shenzhen SEG|Shenzhen SEG||||||
|||Communications|February 1, 2011|January 31, 2015|management|0.00|
|Group Co., Ltd.|Co., Ltd.||||||
|||Market|||contract||

(2) Information on associated lease
List of theCompany’s leases
Unit: CNY
||||||||
|-|-|-|-|-|-|-|
||||||Basis for|Lease expense|
|||Type of leased|Lease beginning||||
|Name of lessor|Name of tenant|||Lease ending date|determining|confirmed in the|
|||assets|date||||
||||||rental rate|report period|
|||The warehouse|||||
|||with its area of|||||
|Shenzhen SEG|Shenzhen SEG|809.26 square|||||
||||April 1, 2013|March 31, 2014|Lease Contract|293,100.00|
|Group Co., Ltd.|Co., Ltd.|meters on the 8th|||||
|||floor of SEG|||||
|||Plaza|||||
|||The warehouse|||||
|||with its area of|||||
|Shenzhen SEG|Shenzhen SEG|809.26 square|||||
||||April 1, 2014|March 31, 2015|Lease Contract||
|Group Co., Ltd.|Co., Ltd.|meters on the 8th|||||
|||floor of SEG|||||
|||Plaza|||||
|Shenzhen SEG||The 15th floor of|||||
||Shenzhen SEG||||||
|Business||SEG Plaza, with||December 31,|||
||E-Commerce Co.,||January 1, 2014||Lease Contract|251,445.60|
|Operation Co.,||an area of 687.01||2018|||
||Ltd.||||||
|Ltd.||square meters|||||

(3) Information on associated guarantee
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. Unit: CNY
|||||||
|-|-|-|-|-|-|
||||||Has the guarantee|
|Warrantor|Warrantee|Amount of guarantee|Starting date|Ending date||
||||||been fulfilled?|
|Shenzhen SEG Co.,|Shenzhen SEG|||||
|||75,000,000.00|March 20, 2013|March 19, 2015|Yes|
|Ltd.|Credit Co., Ltd.|||||
|Shenzhen SEG Co.,|Shenzhen SEG|||||
|||30,000,000.00|June 24, 2013|June 23, 2015|No|
|Ltd.|Credit Co., Ltd.|||||

(4) Lending/Borrowing of related parties
Unit: CNY
||||||
|-|-|-|-|-|
||Lending/Borrowing||||
|Related party||Starting date|Due Date|Remarks|
||amount||||
|Borrowing|||||
|Shenzhen SEG Property|||||
||5,000,000.00|January 1, 2014|March 31, 2014|Paid on March 31, 2014|
|Development Co., Ltd.|||||
|Shenzhen SEG Property|||||
||5,000,000.00|January 20, 2014|April 19, 2014|Paid on April 19, 2014|
|Development Co., Ltd.|||||
|Shenzhen SEG Property|||||
||5,000,000.00|April 1, 2014|September 30, 2014|Paid on June 11, 2014|
|Development Co., Ltd.|||||
|Shenzhen SEG Property|||||
||5,000,000.00|April 20, 2014|October 19, 2014|Paid on June 11, 2014|
|Development Co., Ltd.|||||
|Lending|||||

6. Accounts receivable and payable by related parties
Accounts receivable due from related parties
Unit: CNY
|||||||
|-|-|-|-|-|-|
||Related party|Period end||Period beginning||
|Project name||||||
|||Book balance|Bad debt provision|Book balance|Bad debt provision|
||Shenzhen SEGPropertyDevelopment Co.,Ltd.|||||
|Other receivables||12,325.00||52,000.00||
||Shenzhen SEG GroupCo., Ltd.|||||
|Other receivables||214,491.60||214,491.60||

Accounts receivable due to related parties
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. Unit: CNY
|||||
|-|-|-|-|
|Project name|Related party|Period-end amount|Period-beginning amount|
||Shenzhen SEG Group Co.,|||
|Dividends payable||6,950,277.24||
||Ltd.|||
||Shenzhen SEG Property|||
|Dividends payable||1,463,216.26||
||Development Co., Ltd.|||
||Shenzhen SEG Computers|||
|Dividends payable||543,510.00|444,510.00|
||Co., Ltd|||
||Shenzhen SEG Group Co.,|||
|Other payables||200,000.00|200,000.00|
||Ltd.|||

IX． Share-based payment
□ Applicable√ Not applicable
X． Contingencies
□ Applicable√ Not applicable
XI． Commitments
□ Applicable√ Not applicable
|||||||
|-|-|-|-|-|-|
||||Commitment|Commitm||
|Commitments|Promisor|Content|||Fulfillment|
||||date|ent term||
||Not|||||
|Commitment for share reform||||||
||applicable|||||
|Commitments in the Acquisition Report|Not|||||
|and the Report of Changes on Equity|applicable|||||
|Commitments made at the time of|Not|||||
|restructuring of major assets|applicable|||||
|||In accordance with the Article||||
|||5 of Equity Transfer||||
|||Agreement signed between the||||
|||Company and SEG Group,||||
||||||Commitments|
||Shenzhen|SEG group agrees: the||||
|Commitment made at the time of initial|||||were fulfilled|
||SEG Group|Company and its affiliates and|July 1, 1996|Long-term||
|public offerings or refinancing|||||in the reporting|
||Co., Ltd.|joint ventures can use the||||
||||||period.|
|||eight trademarks of SEG||||
|||Group registered with China||||
|||Trademark Office; the||||
|||Company can use the||||

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
|||||||
|-|-|-|-|-|-|
||||Commitment|Commitm||
|Commitments|Promisor|Content|||Fulfillment|
||||date|ent term||
|||above-mentioned trademark||||
|||and similar marks as the||||
|||Company's mark and can use||||
|||them in operating activities;||||
|||the Company does not need to||||
|||pay SEG Group for use of the||||
|||above-mentioned trademarks||||
|||or marks.||||
|Other commitments made to the medium|Not|||||
|and small shareholders of the Company|applicable|||||
|Whether commitments were fulfilled on||||||
||Yes|||||
|time||||||
|Reason for not fulfilling the commitments||||||
||N/A|||||
|and future plan (if applicable)||||||

XII. Events after the Balance Sheet date
1. List of other events after the Balance Sheet date
|||||
|-|-|-|-|
|Item|Content|Influence on financialposition and operatingresults|Reason for failure to predict theinfluence|
|Setting up asubsidiary|The 14th provisional meeting of the 6th Board ofDirectors of the Company reviewed and approvedthe proposal for SEG Baohua investing RMB 7million to purchase the business assets ofChangsha Hengxi Hotel and to open the Xingshastore of Mellow Orange Hotel|Unpredictable|The subsidiary has not beenestablished yet.|
|Setting up asubsidiary|The 15th provisional meeting of the 6th Board ofDirectors of the Company approved the proposalfor investing own fund of RMB 8 million to set upSuzhou SEG Digital Life Plaza Management Co.,Ltd.|Unpredictable|The subsidiary has not beenestablished yet.|

XIII. Other significant matters
□ Applicable√ Not applicable
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. XIV. Notes to the Parent Company Financial Statements
1. Accounts receivable
(1) Accounts receivable
Unit: CNY
||||||||||
|-|-|-|-|-|-|-|-|-|
||Period-end amount||||Period-beginning amount||||
|Type|Book balance||Bad debt provision||Book balance||Bad debt provision||
||Amount|Proportion|Amount|Proportion|Amount|Proportion|Amount|Proportion|
|Accounts receivable|||||||||
|with a significant|||||||||
|amount individually,|||||||||
||7,163,876.44|77.29%|7,163,876.44|100.00%|7,163,876.44|77.29%|7,163,876.44|100.00%|
|for which bad debt|||||||||
|provision is separately|||||||||
|accrued|||||||||
|Accounts receivable for which bad debt provision is accrued according to different portfolios|||||||||
|Portfolio 1|||||||||
|Accounts receivable|||||||||
|with an insignificant|||||||||
|amount individually,|||||||||
||2,105,306.44|22.71%|2,105,306.44|100.00%|2,105,306.44|22.71%|2,105,306.44|100.00%|
|for which bad debt|||||||||
|provision is separately|||||||||
|accrued|||||||||
|Total|9,269,182.88|--|9,269,182.88|--|9,269,182.88|--|9,269,182.88|--|

Accounts receivable with a significant amount individually, for which bad debt provision is separately accrued at the end of period: Applicable Not applicable
Unit: CNY
||||||
|-|-|-|-|-|
|Name of debtor|Book balance|Bad debt provision|Percentage|Reason for provision|
|||||The accounts receivable are|
|Jiangsu Unicom|3,092,011.09|3,092,011.09|100.00%|uncollectible because they have|
|||||been outstanding too long.|
|||||The accounts receivable are|
|Shenzhen Liyuanshun Industrial|||||
||1,906,865.35|1,906,865.35|100.00%|uncollectible because they have|
|Co., Ltd.|||||
|||||been outstanding too long.|
|||||The accounts receivable are|
|Shanghai Tianci Industrial Co.,|||||
||899,000.00|899,000.00|100.00%|uncollectible because they have|
|Ltd.|||||
|||||been outstanding too long.|
|Zhejiang Finance Information||||The accounts receivable are|
||786,000.00|786,000.00|100.00%||
|Paging Center||||uncollectible because they have|

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
||||||
|-|-|-|-|-|
|Name of debtor|Book balance|Bad debt provision|Percentage|Reason for provision|
|||||been outstanding too long.|
|||||The accounts receivable are|
|Sichuan Huiyuan Electronics|||||
||480,000.00|480,000.00|100.00%|uncollectible because they have|
|Co., Ltd.|||||
|||||been outstanding too long.|
|Total|7,163,876.44|7,163,876.44|--|--|

Among the portfolios, accounts receivable for which bad debt provision is computed by adopting the aging method:
□ Applicable√ Not applicable
Among the portfolios, accounts receivable for which bad debt provision is computed by adopting the percentage method:
□ Applicable√ Not applicable
Among the portfolios, accounts receivable for which bad debt provision is computed by adopting other methods:
□ Applicable√ Not applicable
Accounts receivable with an insignificant amount individually, for which bad debt provision is separately accrued
□ Applicable√ Not applicable
(2) List of top five debtors sorted by the amount of accounts receivable in arrears
Unit: CNY
||||||
|-|-|-|-|-|
||Relationship with the||||
|Name of debtor||Amount of arrears|Age|Percent of total|
||Company||||
|Jiangsu Unicom|Client|3,092,011.09|Over 5 years|33.36%|
|Shenzhen Liyuanshun|||||
||Client|1,906,865.35|Over 5 years|20.57%|
|Industrial Co., Ltd.|||||
|Shanghai Tianci|||||
||Client|899,000.00|Over 5 years|9.70%|
|Industrial Co., Ltd.|||||
|Zhejiang Finance|||||
|Information Paging|Client|786,000.00|Over 5 years|8.48%|
|Center|||||
|Sichuan Huiyuan|||||
||Client|480,000.00|Over 5 years|5.18%|
|Electronics Co., Ltd.|||||
|Total|--|7,163,876.44|--|77.29%|

 2. Other accounts receivable
(1) Other accounts receivable
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. Unit: CNY
||||||||||
|-|-|-|-|-|-|-|-|-|
||Period-end amount||||Period-beginning amount||||
||Book balance||Bad debt provision||Book balance||Bad debt provision||
|Type|||||||||
|||||||||Proporti|
||Amount|Proportion|Amount|Proportion|Amount|Proportion|Amount||
|||||||||on|
|Other receivables with a|||||||||
|significant amount|||||||||
|individually, for which bad|8,530,276.35|2.68%|8,530,276.35|100.00%|8,530,276.35|3.77%|8,530,276.35|100.00%|
|debt provision is separately|||||||||
|accrued|||||||||
|Other receivables for which bad debt provision is accrued according to different portfolios|||||||||
|Portfolio 1|1,184,432.58|0.37%|600.00|0.05%|1,011,510.14|0.45%|600.00|0.06%|
|Portfolio 2|290,716,570.76|91.43%|||199,483,062.93|88.19%|||
|Subtotal of portfolios|291,901,003.34|91.80%|600.00|0.05%|200,494,573.07|88.64%|600.00||
|Other receivables with an|||||||||
|insignificant amount|||||||||
|individually, for which bad|17,543,822.43|5.52%|17,159,388.49|97.81%|17,170,808.49|7.59%|17,170,808.49|100.00%|
|debt provision is separately|||||||||
|accrued|||||||||
|Total|317,975,102.12|--|25,690,264.84|--|226,195,657.91|--|25,701,684.84|--|

 Description of other types of accounts receivable
Other accounts receivable in portfolio 2 are accounts receivable by related party and deposit.
Other receivables with a significant amount individually, for which bad debt provision is separately accrued
√ Applicable□ Not applicable
Unit: CNY
||||||
|-|-|-|-|-|
|Content of other|||||
||Book balance|Amount of bad debt|Percentage|Reason|
|receivables|||||
|||||The accounts receivable|
|No.1: Yangjiang Yuntong||||are uncollectible because|
||8,530,276.35|8,530,276.35|100.00%||
|Grease Co., Ltd||||they have been|
|||||outstanding too long.|
|Total|8,530,276.35|8,530,276.35|--|--|

Among the portfolios, accounts receivable for which bad debt provision is computed by adopting the aging method:
√ Applicable□ Not applicable
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. Unit: CNY
||||||||
|-|-|-|-|-|-|-|
||Period-end amount|||Period-beginning amount|||
||Book balance|||Book balance|||
|Account|||||||
|receivable age|||Bad debt provision||Percent|Bad debt provision|
||Amount|Percent||Amount|||
||||||age||
|||age|||||
|Less than one year|||||||
|Therein,|--|--|--|--|--|--|
|Less than one|||||||
||1,178,432.58|99.49%||1,005,510.14|99.41%||
|year|||||||
|Subtotal of|||||||
|accounts aged|1,178,432.58|99.49%||1,005,510.14|99.41%||
|under 1 year|||||||
|2-3 years|6,000.00|0.51%|600.00|6,000.00|0.59%|600.00|
|Total|1,184,432.58|--|600.00|1,011,510.14|--|600.00|

 Among the portfolios, accounts receivable for which bad debt provision is computed by adopting the percentage method:
□ Applicable√ Not applicable
Among the portfolios, accounts receivable for which bad debt provision is computed by adopting other methods:
□ Applicable√ Not applicable
Accounts receivable with an insignificant amount individually, for which bad debt provision is separately accrued
□ Applicable√ Not applicable
(2) Shareholder that holds5% or more voting shares of the Company in other accounts receivable in the report period
Unit: CNY
||||||
|-|-|-|-|-|
||Period-end amount||Period-beginning amount||
|Name of debtor||Bad debt provision||Bad debt provision|
||Book balance||Book balance||
|||accrued||accrued|
|Shenzhen SEG Group Co., Ltd.|97,700.00||97,700.00||
|Total|97,700.00||97,700.00||

(3) List of top five debtors sorted by the amount of other accounts receivable in arrears
Unit: CNY
||||||
|-|-|-|-|-|
||Relationship with the|Amount|||
|Name of debtor|||Age|Percent of total|
||Company||||
|Nantong SEG Times|||||
||Subsidiary|189,979,342.32|Less than one year|59.75%|
|Square Development|||||

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
||||||
|-|-|-|-|-|
||Relationship with the||||
|Name of debtor||Amount|Age|Percent of total|
||Company||||
|Co., Ltd.|||||
|Shenzhen SEG|||||
||Subsidiary|60,098,630.14|Less than one year|18.90%|
|E-Commerce Co., Ltd.|||||
|Shenzhen SEG|||||
|Industrial Investment|Subsidiary|34,088,490.03|Less than one year|10.72%|
|Co., Ltd.|||||
|Yangjiang Yuntong|Business related||||
|||8,530,276.35|More than 5 years|2.68%|
|Grease Co., Ltd.|organization||||
|Shenzhen Lianjing Trade|Business related||||
|||5,697,287.51|More than 5 years|1.79%|
|Co., Ltd.|organization||||
|Total|--|298,394,026.35|--|93.84%|

 (4) Other accounts receivable from related parties
Unit: CNY
|||||
|-|-|-|-|
|Name of debtor|Relationship with the Company|Amount|Percent of total|
|Nantong SEG Times Square||||
||Wholly-owned subsidiary|189,979,342.32|59.75%|
|Development Co., Ltd.||||
|Shenzhen SEG E-Commerce||||
||Share-controlled subsidiary|60,098,630.14|18.90%|
|Co., Ltd.||||
|Shenzhen SEG Industrial||||
||Wholly-owned subsidiary|34,088,490.04|10.72%|
|Investment Co., Ltd.||||
|Changsha SEG Development||||
||Share-controlled subsidiary|5,277,247.34|1.66%|
|Co., Ltd.||||
|Shenzhen SEG Baohua||||
|Enterprise Development Co.,|Share-controlled subsidiary|250,000.00|0.08%|
|Ltd.||||
|Shenzhen SEG Credit Co.,||||
||Share-controlled subsidiary|640,397.26|0.20%|
|Ltd.||||
|Shenzhen SEG Property||||
||Subsidiary of shareholders|2,000.00||
|Development Co., Ltd.||||
|Total|--|290,336,107.10|91.31%|

 3. Long-term equity investment
Unit: CNY
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
||||||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||noitazinagrodetsevnI||dohtemgnitnuoccA||tsoctnemtsevnI||ecnalabgninnigeB||esaercedroesaercnI||ecnalabgnisolC||noitroporpgnidloherahS||noitroporpthgirgnitoV||ehterehwnoisaccoehtnosetoN|detsevniehtfoserahsehtfonoitroporp|si,ynapmoCehtybdleh,noitazinagro|thgirgnitovehthtiwtnetsisnocton|noisivorptnemriapmI|ehtfotnemriapmirofnoisivorP|doireptnerruc|doireptnerrucehtfosdnedividhsaC|
|Shanghai|||||||||||||||||||||||||
|SEG|||||||||||||||||||||||||
|||Equity|||||||||||||||||||||||
|Electroni||||1,750,000.00||9,254,501.99||62,292.71||9,316,794.70||35.00%||35.00%||---|||||||||
|||method|||||||||||||||||||||||
|cs Market|||||||||||||||||||||||||
|Co., Ltd.|||||||||||||||||||||||||
|Shenzhen|||||||||||||||||||||||||
|SEG|||||||||||||||||||||||||
|Baohua|||||||||||||||||||||||||
|Enterpris||Cost||||20,512,499.0||||20,512,499.0|||||||||||||||
|||||18,742,808.93||||||||66.58%||66.58%||---|||||||||
|e||method||||4||||4|||||||||||||||
|Develop|||||||||||||||||||||||||
|ment Co.,|||||||||||||||||||||||||
|Ltd.|||||||||||||||||||||||||
|Shenzhen|||||||||||||||||||||||||
|SEG|||||||||||||||||||||||||
|Industrial||Cost||||29,181,027.2||||29,181,027.2||||100.00|||||||||||
|||||23,780,000.00||||||||100.00%||||---|||||||||
|Investme||method||||0||||0||||%|||||||||||
|nt Co.,|||||||||||||||||||||||||
|Ltd.|||||||||||||||||||||||||
|Shenzhen|||||||||||||||||||||||||
|SEG GPS|||||||||||||||||||||||||
|Scientific||Cost||||13,515,392.8||||13,515,392.8|||||||||||||||
|||||8,275,321.43||||||||12.50%||12.50%||---|||||||||
|Navigatio||method||||3||||3|||||||||||||||
|ns Co.,|||||||||||||||||||||||||
|Ltd.|||||||||||||||||||||||||
|Changsha|||||||||||||||||||||||||
|SEG|||||||||||||||||||||||||
|||Cost||||69,000,000.0||||69,000,000.0|||||||||||||||
|Develop||||69,000,000.00||||||||46.00%||51.00%||---|||||||||
|||method||||0||||0|||||||||||||||
|ment Co.,|||||||||||||||||||||||||
|Ltd.|||||||||||||||||||||||||
|Shenzhen|||||||||||||||||||||||||
|||Cost|||||||||||||||||||||||
|SEG||||2,100,000.00||2,100,000.00||||2,100,000.00||70.00%||70.00%||---|||||||||
|||method|||||||||||||||||||||||
|Electroni|||||||||||||||||||||||||

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
|||||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||noitazinagrodetsevnI||dohtemgnitnuoccA||tsoctnemtsevnI||ecnalabgninnigeB|esaercedroesaercnI||ecnalabgnisolC||noitroporpgnidloherahS||noitroporpthgirgnitoV||ehterehwnoisaccoehtnosetoN|detsevniehtfoserahsehtfonoitroporp|si,ynapmoCehtybdleh,noitazinagro|thgirgnitovehthtiwtnetsisnocton|noisivorptnemriapmI|ehtfotnemriapmirofnoisivorP|doireptnerruc|doireptnerrucehtfosdnedividhsaC|
|cs Market||||||||||||||||||||||||
|Managem||||||||||||||||||||||||
|ent Co.,||||||||||||||||||||||||
|Ltd.||||||||||||||||||||||||
|Suzhou||||||||||||||||||||||||
|SEG||||||||||||||||||||||||
|||Cost||||||||||||||||||||||
|Electroni||||1,350,000.00||1,350,000.00|||1,350,000.00||45.00%||45.00%||---|||||||||
|||method||||||||||||||||||||||
|cs Market||||||||||||||||||||||||
|Co., Ltd.||||||||||||||||||||||||
|Xi’an||||||||||||||||||||||||
|SEG||||||||||||||||||||||||
|||Cost||||||||||||||||||||||
|Electroni||||1,950,000.00||1,950,000.00|||1,950,000.00||65.00%||65.00%||---|||||||||
|||method||||||||||||||||||||||
|cs Market||||||||||||||||||||||||
|Co., Ltd.||||||||||||||||||||||||
|Shenzhen||||||||||||||||||||||||
|SEG||Cost||||54,000,000.0|||54,000,000.0|||||||||||||||
|||||54,000,000.00|||||||36.00%||36.00%||---|||||||||
|Credit||method||||0|||0|||||||||||||||
|Co., Ltd.||||||||||||||||||||||||
|Shenzhen||||||||||||||||||||||||
|SEG||||||||||||||||||||||||
|||Cost||||15,300,000.0|||15,300,000.0|||||||||||||||
|E-Comm||||15,300,000.00|||||||51.00%||51.00%||---|||||||||
|||method||||0|||0|||||||||||||||
|erce Co.,||||||||||||||||||||||||
|Ltd.||||||||||||||||||||||||
|Shenzhen||||||||||||||||||||||||
|SEG||||||||||||||||||||||||
|Electroni||||||||||||||||||||||||
|||Cost||||20,000,000.0|||20,000,000.0||||100.00|||||||||||
|cs Market||||20,000,000.00|||||||100.00%||||---|||||||||
|||method||||0|||0||||%|||||||||||
|Managem||||||||||||||||||||||||
|ent Co.,||||||||||||||||||||||||
|Ltd.||||||||||||||||||||||||
|Xi’an||Cost||||||||||||||||||||||
|||||1,530,000.00||1,530,000.00|||1,530,000.00||51.00%||51.00%||---|||||||||
|Hairong||method||||||||||||||||||||||

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
|||||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||noitazinagrodetsevnI||dohtemgnitnuoccA||tsoctnemtsevnI||ecnalabgninnigeB|esaercedroesaercnI||ecnalabgnisolC||noitroporpgnidloherahS||noitroporpthgirgnitoV||ehterehwnoisaccoehtnosetoN|detsevniehtfoserahsehtfonoitroporp|si,ynapmoCehtybdleh,noitazinagro|thgirgnitovehthtiwtnetsisnocton|noisivorptnemriapmI|ehtfotnemriapmirofnoisivorP|doireptnerruc|doireptnerrucehtfosdnedividhsaC|
|SEG||||||||||||||||||||||||
|Electroni||||||||||||||||||||||||
|cs Market||||||||||||||||||||||||
|Co., Ltd.||||||||||||||||||||||||
|Wujiang||||||||||||||||||||||||
|SEG||||||||||||||||||||||||
|||Cost||||||||||||||||||||||
|Electroni||||1,530,000.00||1,530,000.00|||1,530,000.00||51.00%||51.00%||---|||||||||
|||method||||||||||||||||||||||
|cs Market||||||||||||||||||||||||
|Co., Ltd.||||||||||||||||||||||||
|Wuxi||||||||||||||||||||||||
|SEG||||||||||||||||||||||||
|||Cost||||||||||||||||||||||
|Electroni||||1,530,000.00||1,530,000.00|||1,530,000.00||51.00%||51.00%||---|||||||||
|||method||||||||||||||||||||||
|cs Market||||||||||||||||||||||||
|Co., Ltd||||||||||||||||||||||||
|Shunde||||||||||||||||||||||||
|SEG||||||||||||||||||||||||
|Electroni||||||||||||||||||||||||
|||Cost|||||||||||100.00|||||||||||
|cs Market||||6,000,000.00||6,000,000.00|||6,000,000.00||100.00%||||---|||||||||
|||method|||||||||||%|||||||||||
|Managem||||||||||||||||||||||||
|ent Co.,||||||||||||||||||||||||
|Ltd||||||||||||||||||||||||
|Nanning||||||||||||||||||||||||
|SEG||||||||||||||||||||||||
|Electroni||||||||||||||||||||||||
|||Cost|||||||||||100.00|||||||||||
|cs Market||||8,000,000.00||8,000,000.00|||8,000,000.00||100.00%||||---|||||||||
|||method|||||||||||%|||||||||||
|Managem||||||||||||||||||||||||
|ent Co.,||||||||||||||||||||||||
|Ltd.||||||||||||||||||||||||
|Nantong||||||||||||||||||||||||
|SEG||||||||||||||||||||||||
|||Cost||||30,000,000.0|||30,000,000.0||||100.00|||||||||||
|Times||||30,000,000.00|||||||100.00%||||---|||||||||
|||method||||0|||0||||%|||||||||||
|Square||||||||||||||||||||||||
|Develop||||||||||||||||||||||||

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
||||||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||noitazinagrodetsevnI||dohtemgnitnuoccA||tsoctnemtsevnI||ecnalabgninnigeB||esaercedroesaercnI||ecnalabgnisolC||noitroporpgnidloherahS||noitroporpthgirgnitoV||ehterehwnoisaccoehtnosetoN|detsevniehtfoserahsehtfonoitroporp|si,ynapmoCehtybdleh,noitazinagro|thgirgnitovehthtiwtnetsisnocton|noisivorptnemriapmI|ehtfotnemriapmirofnoisivorP|doireptnerruc|doireptnerrucehtfosdnedividhsaC|
|ment Co.,|||||||||||||||||||||||||
|Ltd.|||||||||||||||||||||||||
|Yantai|||||||||||||||||||||||||
|SEG|||||||||||||||||||||||||
|Times|||||||||||||||||||||||||
|||Cost|||||||||||||||||||||||
|Square||||45,000,000.00||||||||90.00%||90.00%|||||||||||
|||method|||||||||||||||||||||||
|Develop|||||||||||||||||||||||||
|ment Co.,|||||||||||||||||||||||||
|Ltd.|||||||||||||||||||||||||
|Shenzhen|||||||||||||||||||||||||
|Huakong||Cost||215,645,740.5||102,848,308.||-1,808,72||101,039,586.|||||||||||||||
|||||||||||||22.45%||22.45%||---|||||||||
|SEG Co.,||method||6||04||2.02||02|||||||||||||||
|Ltd.|||||||||||||||||||||||||
|Kashgar|||||||||||||||||||||||||
|Shenzhen||Cost||||20,000,000.0||||20,000,000.0|||||||||||||||
|||||20,000,000.00||||||||3.03%||3.03%||---|||||||||
|City Co.,||method||||0||||0|||||||||||||||
|Ltd.|||||||||||||||||||||||||
|Nantong|||||||||||||||||||||||||
|SEG|||||||||||||||||||||||||
|Business|||||||||||||||||||||||||
|||Cost||||||||||||100.00|||||||||||
|Operation||||5,000,000.00||||||||100.00%|||||||||||||
|||method||||||||||||%|||||||||||
|Managem|||||||||||||||||||||||||
|ent Co.,|||||||||||||||||||||||||
|Ltd.|||||||||||||||||||||||||
|||||550,483,870.9||407,601,729.||-1,746,42||405,855,299.|||||||||||||||
|Total||--||||||||||--||--||--|||||||||
|||||2||10||9.31||79|||||||||||||||

Description of long-term equity investment
4. Operating income and operating cost
(1) Operating income
Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. Unit: CNY
||||
|-|-|-|
|Item|Amount incurred in the report period|Amount incurred in the previous period|
|Main operating income|67,615,859.10|74,311,894.64|
|Total|67,615,859.10|74,311,894.64|
|Operating cost|40,521,511.25|37,003,105.13|

 (2) Main business (by industry)
Unit: CNY
||||||
|-|-|-|-|-|
||Amount incurred in the report period||Amount incurred in the previous period||
|Name of company|||||
||Operating income|Operating cost|Operating income|Operating cost|
|Electronics Market and|||||
||67,615,859.10|40,521,511.25|74,311,894.64|37,003,105.13|
|property lease|||||
|Total|67,615,859.10|40,521,511.25|74,311,894.64|37,003,105.13|

 5. Investment income
(1) Details of investment income
Unit: CNY
||||
|-|-|-|
||Amount incurred in the report|Amount incurred in the previous|
|Item|||
||period|period|
|Long-term equity investment income by the cost method|20,694,873.17|15,214,120.00|
|Long-term equity investment income by the equity method|-1,746,429.31|-2,549,638.57|
|Income from disposal of long-term equity investments||2,550,000.00|
|Others|8,417,172.69|7,471,921.32|
|Total|27,365,616.55|22,686,402.75|

 (2) Long-term equity investment income by the cost method
Unit: CNY
|||||
|-|-|-|-|
||Amount incurred in|Amount incurred in||
|Invested organization|||Cause of year-on-year change|
||the report period|the previous period||
|Xi’an SEG Electronics Market Co., Ltd.||3,744,000.00|Profits have not been distributed.|
|Shenzhen SEG Baohua Enterprise||||
||10,256,400.00|8,205,120.00||
|Development Co., Ltd.||||
|Suzhou SEG Electronics Market Co., Ltd.|2,250,000.00|1,935,000.00||
|Shenzhen SEG Electronics Market|1,400,000.00|1,330,000.00||

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
|||||
|-|-|-|-|
|Management Co., Ltd.||||
|Shenzhen SEG Credit Co., Ltd.|6,584,473.17|||
|Wujiang SEG Electronics Market Co., Ltd.|204,000.00|||
|Total|20,694,873.17|15,214,120.00|--|

(3) Long-term equity investment income by the equity method
Unit: CNY
|||||
|-|-|-|-|
||Amount incurred in|Amount incurred in||
|Invested organization|||Cause of year-on-year change|
||the report period|the previous period||
|Shenzhen Huakong SEG Co., Ltd.|-1,808,722.02|-3,979,819.79||
|Shanghai SEG Electronics Market Co., Ltd.|62,292.71|706,435.77||
|Shenzhen SEG New Urban||||
|||723,745.45||
|Construction Development Co., Ltd.||||
|Total|-1,746,429.31|-2,549,638.57|--|

Description of investment income
The Company has had no significant impact on Shenzhen Huakong SEG Co., Ltd. since it relinquished its right to the latter in March 2014, and therefore the accounting method is changed to cost method. In the table above, the amount incurred in the current period is the investment income of Shenzhen Huakong SEG Co., Ltd. from January to February 2014 determined by using the equity method.
6. Supplementary information to cash flow statement
Unit: CNY
||||
|-|-|-|
|||Amount of the previous|
|Supplementary Materials|Amount of the current period||
|||period|
|1. Reconciliation of net income to cash flow from operating|||
||--|--|
|activities|||
|Net income|42,870,699.79|43,115,441.85|
|Add: Provision for asset impairment|-11,420.00|0.00|
|Depreciation of fixed assets, oil & gas assets and consumable|||
||5,755,512.75|5,818,174.63|
|biological assets|||
|Amortization of intangible assets|65,373.06|96,444.00|
|Amortization of long-term expenses to be apportioned|702,085.44|458,276.75|
|Financial expenses (Fill in ―–‖ for income)|3,849,317.32|-3,407,472.49|
|Investment loss (Fill in ―–‖ for income)|-27,365,616.55|-22,686,402.75|

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|||Amount of the previous|
|Supplementary Materials|Amount of the current period||
|||period|
|Decrease in deferred tax assets (Fill in ―–‖ for increase)|2,855.00|637,500.00|
|Increase in deferred tax liabilities (Fill in ―–‖ for decrease)||0.00|
|Inventory decrease (Fill in ―–‖ for increase)||0.00|
|Decrease in accounts receivable relating to operating activities (Fill|||
||-115,310,529.07|-85,004,889.24|
|in ―–‖ for increase)|||
|Increase in accounts payable relating to operating activities (Fill in|||
||-405,362.75|-10,901,079.90|
|―–‖ for decrease)|||
|Others||0.00|
|Net cash flow arising from operating activities|-89,847,085.01|-71,874,007.15|
|2. Major investing and financing activities that involve no cash|||
||--|--|
|payments and receipts:|||
|3. Change in cash and cash equivalents:|--|--|
|Closing balance|475,260,525.84|272,164,192.77|
|Less: cash at the beginning of the period|173,141,378.64|296,491,241.42|
|Net increase in cash and cash equivalents|302,119,147.20|-24,327,048.65|

 XVI. SupplementalInformation（中文没有“十五”,应改为“十五”，即“XV.”）
1. List of non-recurring gains and losses
Unit: CNY
||||
|-|-|-|
|Item|Amount|Remarks|
|Gains and losses on disposal of non-current assets|||
||15,288.75|Gains on disposal of fixed assets|
|(including the write-off of assets depreciation reserves)|||
|||The service industry development fund from the|
|Government subsidies recorded into current gains and||Bureau of Finance of Nantong, the Economy, and the|
|losses (except those closely related with corporate||special funds for setting up online SEG Electronics|
||693,467.78||
|business and enjoyed according to national standards or||Market and SEG E-Commerce platform from the|
|certain quota)||Trade and Information Commission of Shenzhen were|
|||acquired.|
|Transferred-back impairment provision for accounts|||
|receivable, for which separate impairment tests are|11,420.00||
|carried out|||
|Other non-operating income and expenses except the||Liquidated damages from defaulting tenants were|
||401,613.38||
|above-mentioned items||collected.|
|Less: Amount of affected income tax|52,102.04||

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Item|Amount|Remarks|
|Amount of influence of minority shareholders’|162,782.29||
|equity (after tax)|||
|Total|906,905.58|--|

Government subsidies recorded into current gains and losses are recurring in nature, and the reasons for separate disclosure must be given.
□ Applicable√ Not applicable
2. Differences in Accounting Data under Chinese and Overseas Accounting Standards
(1) Differences in net profit and net assets reported in the financial statements disclosed under international accounting standards and Chinese accounting standards
Unit: CNY
||||||
|-|-|-|-|-|
||Net profit attributable to shareholders of the listed||Net assets attributable to shareholders of the||
||company||listed company||
||Amount incurred in the|Amount incurred in the||Period-beginning|
||||Period-end amount||
||report period|previous period||amount|
|Based on Chinese accounting|37,645,842.28|39,674,066.28|1,287,821,734.07|1,250,224,375.08|
|standards|||||
|Adjusted items and amounts based on international accounting standards:|||||
|Based on international|||||
||37,645,842.28|39,674,066.28|1,287,821,734.07|1,250,224,375.08|
|accounting standards|||||

(2) Differences in net profits and net assets reported in the financial statements disclosed under overseas accounting standards and Chinese accounting standards
Unit: CNY
||||||
|-|-|-|-|-|
||Net profit attributable to shareholders of the listed||Net assets attributable to shareholders of the||
||company||listed company||
||Amount incurred in the|Amount incurred in the||Period-beginning|
||||Period-end amount||
||report period|previous period||amount|
|Based on Chinese accounting|37,645,842.28|39,674,066.28|1,287,821,734.07|1,250,224,375.08|
|standards|||||
|Adjusted items and amounts based on overseas accounting standards:|||||
|Based on overseas accounting|||||
||37,645,842.28|39,674,066.28|1,287,821,734.07|1,250,224,375.08|
|standards|||||

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd. 3. Return on equity and earnings per share
Unit: CNY
|||||
|-|-|-|-|
|||Earnings per share||
|Profit in report period|Weighted average ROE|||
|||Basic EPS|Diluted EPS|
|Net profit attributable to common shareholders||||
||2.97%|0.0480|0.0480|
|of the Company||||
|Net profit attributable to common shareholders||||
|of the Company after deduction of -recurring|2.90%|0.0468|0.0468|
|losses and gains||||

4. Description of major extraordinary items and reasons for change
||||||
|-|-|-|-|-|
|Item|Balance at period-end|Balance at beginning of|Percentage|Reason for change|
||(or amount at current|period (or amount at|change (%)||
||period)|prior period)|||
|Monetary funds|630,339,292.58|336,593,493.81|87.27%|The Company raised loans with banks andissued short-term commercial paper atcurrent period.|
|Notes receivable|10,000.00|-|100.00%|The Company received the rent paid withbankers’ acceptance at current period.|
|Accounts receivable||204,086,309.32|- 48.86%|The subsidiary—SEG E-Commerce settledbeginning-of-year accounts receivable withcustomers at current period, resulting indramatic decrease in accounts receivable.|
||104,371,063.56||||
|Other receivables|38,677,457.98|25,033,354.72|54.50%|The security deposits paid by SEGE-Commerce and Nantong SEG increased atcurrent period.|
|Inventory|174,236,781.17|98,000,921.50|77.79%|The construction expenditure on real estateprojects of Nantong SEG led to an increasein inventory at current period.|
|Short-term borrowing|189,950,719.04|70,000,000.00|171.36%|The Company raised loans with banks atcurrent period.|
|Accounts payable|78,448,214.22|181,751,142.48|-56.84%|The subsidiary—SEG E-Commerce settledbeginning-of-year accounts payable withcustomers at current period, resulting indramatic decrease in accounts receivable.|
|Payroll payable|6,688,315.61|17,065,382.28|-60.81%|Prior year’s acrrued payroll was paid atcurrent period.|

Full text of 2014 Semi-annual Report of Shenzhen SEG Co., Ltd.
||||||
|-|-|-|-|-|
|Item|Balance at period-end|Balance at beginning of|Percentage|Reason for change|
||(or amount at current|period (or amount at|change (%)||
||period)|prior period)|||
|Interest payable|325,333.32|-|100.00%|The parent company secured loans withbanks and the accrued interests on the loansincreased at current period.|
|Dividends payable|11,008,435.72|1,317,296.42|735.68%|The dividends not paid by SEG Baohua andSEG Credit to minority shareholdersincreased at current period.|
|Other current|252,056,250.66|-|100.00%|The Company issued short-term commercialpaper, and the principal of the short-termcommercial paper and accrued interests onloans increased at current period.|
|liabilities|||||
|Long-term borrowing|72,000,000.00|-|100.00%|The long-term loans secured by the parentcompany increased at current period.|
|Retained profits|-4,434,652.36|-42,080,494.64|-89.46%|The net earnings attributed to the parentcompany increased at current period.|
|Interest income|21,039,537.00|13,093,932.17|60.68%|The subsidiary - SEG Credit extended loansthis year.|
|Interest expenses|1,693,472.23|||The subsidiary - SEG Credit raised its loanswith banks at current period.|
|Financing expenses|388,862.46|-5,163,964.97|-107.53%|The Company issued short-termcommercial paper, and raised loans withbanks, and the accrued interests on loansincreased at current period.|
|Loss from asset|-288,507.28|270,241.51|-206.76%|The subsidiary - SEG Credit’s loan growthslowed this year.|
|impairment|||||
|Investment income|11,731,540.84|8,694,554.98|34.93%|The investment of the Company scaled up atcurrent period.|

Chapter 10 Reference Document List
(I) The Financial Statements with signatures and seals of the legal representative, the responsible person of accounting work and the responsible person of the accounting institution;
(II) The original copy of all the Company documents and notices publicly disclosed in the newspapers designated
by China Securities Regulatory Commission in the report period.