Main Body of Q3 2017 Report of Shenzhen SEG Co., Ltd. Stock Code: 000058, 200058 Stock Name: Shen SEG, Shen SEG B Announcement No.:2017-070 Main Body of Q3 2017 Report of Shenzhen SEG Co., Ltd.
Main Body of Q3 2017 Report of Shenzhen SEG Co., Ltd. Chapter 1 Important Notice
The Board of Directors, the Board of Supervisors, the directors, the supervisors, and the senior executives guarantee that the quarterly report is authentic, accurate and complete and that it has no false records, misleading statements or major omissions and they undertake joint and several legal liabilities.
All of the directors have attended this board meeting reviewing the quarterly report. Chairman of the Board Wang Bao, the Chief Financial Officer Liu Zhijun and the responsible person of the accounting institution (accountant in charge) Ying Huadong hereby declare that the Financial Statements enclosed in this quarterly report are true, accurate and complete.
Main Body of Q3 2017 Report of Shenzhen SEG Co., Ltd. Chapter 2 Company Profile
I. Major Accounting Data and Financial Indexes
Are retrospective adjustments required to previous financial statements?
√ Yes□ No
Reason for retrospective adjustments or restatement
Merger of enterprises under common control
||||||
|-|-|-|-|-|
|||||Year-on-year|
|||Year-end amount|||
||Closing amount|||increase/decrease|
|||Before adjustment|After adjustment|After adjustment|
|Total assets (Yuan)|7,397,829,303.20|2,548,276,265.32|6,923,273,093.64|6.85%|
|Net assets attributable to shareholders|1,775,988,200.30||2,412,301,070.04||
|||1,548,200,647.55||-26.38%|
|of the listed company (Yuan)|||||
||||From the beginning||
||Current reporting|Year-on-year|of the year to the|Year-on-year|
||period|increase/decrease|end of the reporting|increase/decrease|
||||period||
|Operating revenue (Yuan)|264,775,121.17|-12.70%|857,121,747.39|-16.58%|
|Net profit attributable to shareholders|||||
||19,184,279.34|-50.36%|69,193,064.76|-51.80%|
|of the listed company (Yuan)|||||
|Net profit attributable to shareholders|||||
|of the listed company after deduction|19,569,428.60|-9.51%|50,348,311.87|3.15%|
|of non-recurring profit or loss (Yuan)|||||
|Net cash flow arising from operating|--||280,162,722.60||
|||--||-4.58%|
|activities (Yuan)|||||
|Basic EPS (Yuan/Share)|0.0155|-50.48%|0.0560|-51.81%|
|Diluted EPS (Yuan/Share)|0.0155|-50.48%|0.0560|-51.81%|
|Weighted average ROE|1.07%|-35.14%|3.31%|-2.99%|

 Note: 1. The Company has issued shares and purchased underlying assets for major assets restructuring in Q1 2017. Four target companies, that is, SEG Real Estate, SEG Kangle, SegMaker, and SEG Property Development, have completed asset transfer on January 19, 2017. The Company has included these underlying assets in the consolidated statements since February 2017. In addition, the financial statements are retrospectively adjusted.
2. The net profit attributable to the parent company accumulated from the beginning of the year to the end of the reporting period decreased by51.8% year on year. The main reasons are the Huizhou Qunxing Real Estate project of SEG Real Estate had a large amount of loss or gain brought forward. In the reporting period, this project entered into the late stage to sell the remaining buildings, so the amount of loss or gain brought forward was smaller; the New Urban Plaza project of SEG Real Estate has pre-sold 1.431 billion Yuan in the reporting period, but has not yet satisfied the requirement of confirmation, and it is estimated that the project will start to carry over the income from Q4 2017 and increase theCompany’s profit considerably.
Items and amount of non-recurring profit or loss:
√ Applicable□ Not applicable
Unit: Yuan
||||
|-|-|-|
|Item|Amount|Remarks|
|Profit or loss on disposal of non-current assets (including the write-off of assets|-127,406.01||
|depreciation reserves)|||
|Government subsidies included in current profit or loss (except those closely|4,167,250.10||
|related with corporate business and enjoyed according to national standards or|||
|certain quota)|||
|Capital occupation fee collected from non-financial enterprises recognized in|1,676,532.33||
|current profit or loss|||
|Current net profit or loss of subsidiaries arising from merger of enterprises under|10,632,970.72||
|common control from the beginning of the period to the date of merger|||
|Trustee fee income from entrusted operation|68,759.04||
|Other non-recurring profit or loss items|10,467,166.60||
|Less: Amount of affected income tax|4,063,075.52||
|Amount of influence of minority shareholders' equity (after tax)|3,977,444.37||

Main Body of Q3 2017 Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Total|18,844,752.89|--|

 An explanation shall be made with regard to the Company's considerations for defining non-recurring profit and loss according to the Explanatory Announcement No.1 on Information Disclosure for Companies Offering Their Securities to thePublic—Non-recurring Profit and Loss and the reason of classifying the non-recurring profit and loss listed in this announcement as recurring.
□ Applicable√ Not applicable
In the reporting period, 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 Profit or Loss as recurring profit and loss items.
II. Total number of shareholders and shares held by top 10 shareholders at the end of the reporting period
1. Total number of ordinary shareholders and preferred shareholders restored with voting rights and shares held by top 10 shareholders
Unit: Share
|||||||||
|-|-|-|-|-|-|-|-|
|Total number of ordinary||||Total number of preferred||||
|shareholders at the end of the||72,389||shareholders restored with||0||
|reporting period||||the voting rights (if any)||||
|Shares held by top 10 shareholders||||||||
||||||Quantity of|Information on pledged or frozen||
|Name of|Nature of|Proportion of||||||
||||Shares held||restricted shares|shares||
|shareholder|shareholder|shareholding||||||
||||||held|Share status|Quantity|
|Shenzhen SEGGroup Co., Ltd.|State-ownedlegal person|55.70%|688,216,905||450,857,239|||
|Liu Guocheng(Share B)|Domesticnatural person|0.56%|6,891,302||0|||
|Zhang Jiao|Domesticnatural person|0.33%|4,046,989||0|||
|ZhuhaiHuisheng AssetManagementCo., Ltd. –Huisheng No. 1private equityfund|Others|0.29%|3,522,000||0|||
|Liu Guohong(Share B)|Domesticnatural person|0.25%|3,045,839||0|||
|Han Wenji|Domesticnatural person|0.24%|2,980,000||0|||
|Gong Qianhua(Share B)|Overseas naturalperson|0.24%|2,940,000||0|||
|China SecuritiesFinanceCorporationLimited|Domesticnon-state-ownedlegal person|0.18%|2,271,900||0|||
|Liu Liang|Domesticnatural person|0.18%|2,206,600||0|||
|Guangfa Funds- GuangzhouRuralCommercialBank -ShenzhenRongtongCapitalManagement|Others|0.17%|2,090,400||0|||

Main Body of Q3 2017 Report of Shenzhen SEG Co., Ltd.
|||||
|-|-|-|-|
|Co., Ltd.||||
|Information on top 10 shareholders of non-restricted shares||||
|||Type of share||
|Name of shareholder|Quantity of unrestricted ordinary shares held|||
|||Type of share|Quantity|
|Shenzhen SEG Group Co., Ltd.|237,359,666|RMB ordinary||
||||237,359,666|
|||shares||
|Liu Guocheng (Share B)|6,891,302|Domestically||
|||listed foreign|6,891,302|
|||shares||
|Zhang Jiao|4,046,989|RMB ordinary||
||||4,046,989|
|||shares||
|Zhuhai Huisheng AssetManagement Co., Ltd. –Huisheng No. 1 private equityfund|3,522,000|||
|||RMB ordinary||
||||3,522,000|
|||shares||
|Liu Guohong (Share B)|3,045,839|Domestically||
|||listed foreign|3,045,839|
|||shares||
|Han Wenji|2,980,000|RMB ordinary||
||||2,980,000|
|||shares||
|Gong Qianhua (Share B)|2,940,000|Domestically||
|||listed foreign|2,940,000|
|||shares||
|China Securities FinanceCorporation Limited|2,271,900|RMB ordinary||
||||2,271,900|
|||shares||
|Liu Liang|2,206,600|RMB ordinary||
||||2,206,600|
|||shares||
|Guangfa Funds - GuangzhouRural Commercial Bank -Shenzhen Rongtong CapitalManagement Co., Ltd.|2,090,400|||
|||RMB ordinary||
||||2,090,400|
|||shares||
||Shenzhen SEG Group Co., Ltd. has no association relationship with other|||
|Explanations on the association||||
||shareholders and is not a person acting in concert with other shareholders as specified|||
|relationship or concerted action||||
||in the Management Methods for Disclosure of Information on Changes of|||
|among the above-mentioned||||
||Shareholding Status of Shareholders of Listed Companies. It is unclear whether other|||
|shareholders||||
||shareholders are persons acting in concert.|||
|Information on top 10 ordinary|In the foregoing top 10 shareholders, Zhang Jiao holds 0 share of the Company in the|||
|shareholders participating in|ordinary account and 4,046,989 shares in the margin trading investor credit account,|||
|securities margin trading (if any)|which are 4,046,989 shares in total.|||

Did top 10 ordinary shareholders of the Company or top 10 ordinary shareholders of non-restricted shares conduct agreed repurchase transactions in the reporting period?
□ Yes√ No
The top 10 ordinary shareholders of the Company or top 10 ordinary shareholders of non-restricted shares did not conduct agreed repurchase transactions in the reporting period.
2. Total number of preferred shareholders and shares held by top 10 preferred shareholders
□ Applicable√ Not applicable
Main Body of Q3 2017 Report of Shenzhen SEG Co., Ltd. Chapter 3 Important Matters
I. Changes in main financial data and financial indicators of the reporting period and reasons√ Applicable□ Not applicable
(I) Balance Sheet Statement
||||||
|-|-|-|-|-|
|Item|Closing balance|Opening balance|Difference|Increase or decrease|
|||||over the previous year|
|||||(%)|
|Lending funds|-|40,000,000.00|-40,000,000.00|-100.00%|
|Notes receivable|-|100,792.00|-100,792.00|-100.00%|
|Accounts receivable|91,439,683.76|58,949,389.88|32,490,293.88|55.12%|
|Interest receivable|-|287,698.63|-287,698.63|-100.00%|
|Construction in progress|48,706,112.19|37,092,227.51|11,613,884.68|31.31%|
|Intangible assets|32,405,659.95|2,681,527.40|29,724,132.55|1108.48%|
|Other non-current assets|88,000,000.00|13,804,660.46|74,195,339.54|537.47%|
|Short-term borrowing|545,000,000.00|355,000,000.00|190,000,000.00|53.52%|
|Advance receipts|1,353,034,003.68|923,965,168.05|429,068,835.63|46.44%|
|Payroll payable|21,235,179.84|35,464,329.86|-14,229,150.02|-40.12%|
|Interest payable|5,047,883.93|3,357,745.13|1,690,138.80|50.34%|
|Dividends payable|3,743,038.52|15,132,970.78|-11,389,932.26|-75.27%|
|Other payables|1,422,081,936.83|800,746,883.93|621,335,052.90|77.59%|
|Non-current liabilities due withinone year|781,074,765.50|491,561,661.33|289,513,104.17|58.90%|
|Long-term loan|584,500,000.00|1,030,000,000.00|-445,500,000.00|-43.25%|
|Estimated liabilities|146,250.00|232,500.00|-86,250.00|-37.10%|
|Paid-up capital (share capital)|1,235,656,249.00|784,799,010.00|450,857,239.00|57.45%|
|Capital reserve|175,086,543.13|1,294,371,135.89|-1,119,284,592.76|-86.47%|
|Other comprehensive income|190,982.67|296,235.62|-105,252.95|-35.53%|

 1. Lending funds decreased by RMB 40 million or100% year on year, mainly because SEG Credit, a holding subsidiary of the Company, withdrew lending funds in the reporting period.
2. Notes receivable decreased by RMB 100,000 or100% year on year, mainly because the rents of Wujiang SEG, a holding subsidiary of the Company, settled by notes decreased.
3. Accounts receivable increased by RMB 32.49 million or55.12% year on year, mainly because the property management fees receivable of SEG Real Estate Property on an accrual basis increased by RMB 25.7 million. Accounts receivable of SEG Industry was
involved in proceedings and increased by RMB 9.49 million.
4. Interest receivable decreased by RMB 290,000 or100% year on year, mainly because all interests on bank financing were
recovered in the reporting period.
Main Body of Q3 2017 Report of Shenzhen SEG Co., Ltd. 5. Construction in progress increased by RMB 11.61 million or31.31% year on year, mainly due to an increase of RMB 7.46 million arising from the construction project of SEG Longyan Industrial Park and an increase of RMB 6.86 million arising from investment in decoration and renovation of SEG Kangle Building of the Company in the reporting period.
6. Intangible Assets increased by RMB 29.72 million or1,108.48% year on year, mainly because SEG acquired the land use right in Shenzhen-Shanwei Cooperation Zone in the reporting period.
7. Other non-current assets increased by RMB 74.2 million or537.47% year on year, mainly because SEG Longyan's advance payment for key equipment in CdTe film PV cell module production line, RMB 88 million, was included in this item.
8. Short-term borrowings increased by RMB 190 million or53.52% year on year, mainly because the Company incurred bank short-term loans in the reporting period.
9. Advance receipts increased by RMB 429.07 million or46.44% year on year, mainly due to an increase of RMB 642.63 million arising from advance payment for house received by SEG New Urban in the reporting period.
10. Payroll payable decreased by RMB 14.23 million or40.12% year on year, mainly because wages and bonuses accrued in the previous year were granted in the reporting period.
11. Interest payable increased by RMB 1.69 million or50.34% year on year, mainly due to increase in loans of the Company and increase in interests on bank loans on a monthly basis in the reporting period.
12. Dividends payable decreased by RMB 11.39 million or75.27% year on year, mainly because SEG Credit paid dividends of RMB 11.97 million to minority shareholders in the reporting period.
13. Other payables increased by RMB 621.34 million or77.59% year on year, mainly because the Company incurred the cash consideration payable for issuing shares to and purchasing assets from the controlling shareholder SEG Group RMB 675.63 million due to major assets restructuring in the reporting period.
14. Non-current liabilities due within one year increased by RMB 289.51 million or58.9% year on year, mainly because long-term borrowings of SEG Real Estate will be due within one year and be carried forward to this item.
15. Long-term borrowings decreased by RMB 445.5 million or43.25% year on year, mainly because some long-term borrowings of SEG Real Estate will be due within one year and carried forward to current liabilities.
16. Estimated liabilities decreased by RMB 90,000, or37.1% year on year, mainly because Beijing SEG returned the liquidated damages to the suppliers in the reporting period.
17. Paid-up capital (share capital) increased by RMB 450.86 million or57.45% year on year, mainly because the Company issued 450.85 million shares to SEG Group to purchase underlying assets due to major assets restructuring in the reporting period. 18. Capital reserve decreased by RMB 1119.28 million or86.47% year on year, mainly because the Company issued shares to SEG Group to purchase equities of four targeted companies (business combination under common control) due to major assets restructuring in the reporting period. (1) According to the Accounting Standards for Business Enterprises, the Company shall take the carrying amount of owners' equity share of targeted companies as the initial cost of long-term equity investment, and offset the capital reserve against the difference between long-term equity investment and the sum of the book value and consideration. (2) The company's statements are subject to retroactive adjustment, while the capital reserve at the beginning of the period includes the share capital and consideration not subject to retroactive adjustment. At the end of the reporting period, the share capital for private placement and consideration have been recognized based on the actual amount, so this item decreased after adjustment.
19. Other comprehensive income decreased by RMB 110,000 or35.53% year on year mainly due to slump in the stock of Youhao Group (available-for-sale financial assets of the Company) recognized at the fair value in the reporting period.
(II) Profit Statement
Main Body of Q3 2017 Report of Shenzhen SEG Co., Ltd.
||||||
|-|-|-|-|-|
|Item|Amount incurred in|Amount of the previous|Difference|Increase or decrease|
||the current period|period||over the previous|
|||||year (%)|
|Commission charge and commissionincome|888,016.65|4,309,315.96|-3,421,299.31|-79.39%|
|Interest expenses|0.00|465,888.89|-465,888.89|-100.00%|
|Tax and surcharge|14,043,362.00|46,889,775.45|-32,846,413.45|-70.05%|
|Financial costs|16,196,131.68|9,000,226.00|7,195,905.68|79.95%|
|Loss from asset impairment|4,189,148.15|-4,106,540.24|8,295,688.39||
|Investment income|4,144,939.36|7,773,264.55|-3,628,325.19|-46.68%|
|Non-operating income|11,513,024.15|74,032,605.23|-62,519,581.08|-84.45%|
|Non-operating expenses|1,583,510.27|4,957,287.90|-3,373,777.63|-68.06%|
|Other comprehensive income|-158,032.32|-82,762.10|-75,270.22|90.95%|

 1. Commission charge and commission income decreased by RMB 3.42 million or79.39% year on year, mainly because SEG Credit gained commission income from financing services in the same period of last year, but did not provide similar services this year, resulting in decrease in this item.
2. Interest expenses decreased by RMB 470,000 or100% year on year, mainly because SEG Credit obtained external financing and thus had interest expense in the same period of last year, while SEG Credit had no external financing in the reporting period. 3. Tax and surcharge decreased by RMB 32.85 million or70.05% year on year. As the program of replacing business tax with value-added tax (VAT) has been carried out since May 1, 2016, the Company's business tax for property operation and electronics market from January to April 2016 were included in this item, while the Company paid VAT this year, which was not included in this item.
4. Financial expenses increased by RMB 7.2 million or79.95% year on year, mainly because the Company loaned for Nantong SEG Times Plaza and incurred interest capitalization of RMB 6.58 million in the same period last year, while Nantong SEG has been opened for business in the reporting period, interest expenses were no longer capitalized and included in financial expenses in full, resulting in increase in this item.
5. Loss from asset impairment increased by RMB 8.3 million year on year, mainly because SEG Credit, a holding subsidiary of the Company, conducted a depreciation test according to the five-category classification policy and accrued loan loss reserves of RMB 3.55 million in the reporting period, while SEG Credit conducted a depreciation test according to the five-category classification policy and reversed loan loss reserves of RMB 4.48 million.
6. Investment income increased by RMB 3.63 million or46.68% year on year, mainly because CEEC and SEG Wisdom incurred losses with the equity method in the reporting period, the investment income of the Company decreased by RMB 2.95 million year on year, and the Company's fund for financial management decreased, resulting in decrease in income from financial management.
7. Non-operating income decreased by RMB 62.52 million or84.45% year on year, mainly because SEG Real Estate transferred 48 houses involved in property ownership disputes to guarantee the progress of major assets restructuring and gained non-operating
income of RMB 60.59 million in the same period of last year, while such income was not incurred in the reporting period.
8. Non-operating expenses decreased by RMB 3.37 million or68.06% year on year, mainly because the Company paid the
Main Body of Q3 2017 Report of Shenzhen SEG Co., Ltd. compensation of RMB 3.7 million for the lawsuit involving Nanning SEG in the same period of last year.
9. Other comprehensive income decreased by RMB 80,000 or90.95% year on year, mainly due to a slump in the stock of Youhao Group held by SEG Baohua, a holding subsidiary of the Company, in the reporting period.
(III) Cash Flow Statement
||||||
|-|-|-|-|-|
|Item|Amount incurred in|Amount of the previous|Difference|Increase or|
||the current period|period||decrease over the|
|||||previous year (%)|
|Tax refunds|749,351.94|82,932,677.81|-82,183,325.87|-99.10%|
|Cash paid for goods and services|685,380,979.09|1,089,557,549.61|-404,176,570.52|-37.10%|
|Net increase in customer loans andadvances|-29,325,104.19|-44,885,258.00|15,560,153.81|-34.67%|
|Taxes paid|249,526,081.87|164,892,262.56|84,633,819.31|51.33%|
|Net cash received from disposal of fixedassets, intangible assets and otherlong-term assets|2,320.00|69,137.75|-66,817.75|-96.64%|
|Cash paid for purchase and constructionof fixed assets, intangible assets andother long-term assets|122,826,868.88|78,818,108.80|44,008,760.08|55.84%|
|Cash paid for investment|1,477,819,502.86|1,030,804,260.00|447,015,242.86|43.37%|
|Net cash received from subsidiaries andother entities|0.00|17,500,000.00|-17,500,000.00|-100.00%|
|Cash received from borrowing|650,000,000.00|1,403,420,000.00|-753,420,000.00|-53.68%|
|Cash paid for debt repayment|681,901,725.48|1,036,325,984.18|-354,424,258.70|-34.20%|

 1. Tax refunds decreased by RMB 82.18 million or99.1% year on year, mainly because SEG E-commerce gained the tax refund of RMB 82.93 for the supply chain business in the same period of last year. The Company completed equity transfer of SEG E-commerce in November 2016, and the cash flow statement of SEG E-commerce was no longer consolidated in the reporting period. 2. Cash paid for goods and services decreased by RMB 404.18 million or37.1% year on year, mainly because (1) SEG E-commerce received the payment for goods of RMB 227.11 million for domestic trade in the same period of last year. The Company completed equity transfer of SEG E-commerce in November 2016, and the cash flow statement of SEG E-commerce was no longer consolidated in the reporting period. (2) Business shrinkage of SEG Industry resulted in decrease in the payment for goods and decrease in this item by RMB 84.51 million. (3) Nantong SEG and SEG Real Estate reduced investment due to completion of projects and decrease in this item by RMB 111.38 million.
3. Net increase in customer loans and advances increased by RMB 15.56 million or-34.67% year on year, mainly due to decrease in the size of loans issued by SEG Credit in the reporting period.
4. Taxes paid increased by RMB 84.63 million or51.33% year on year, mainly because increase in pre-sold houses resulted in increase in prepaid taxes in the reporting period.
5. Net cash received from disposal of fixed assets, intangible assets and other long-term assets increased by RMB 44.01 million
or55.84% year on year, mainly because SEG Longyan, a new subsidiary of the Company, incurred RMB 95.32 million for its new
industrial park.
6. Cash paid for investment increased by RMB 447.02 million or43.37% year on year, mainly because the Company's financial
Main Body of Q3 2017 Report of Shenzhen SEG Co., Ltd. funds were accumulated at a faster pace and the principal paid for financial management in the bank increased.
7. Net cash received from subsidiaries and other entities decreased by RMB 17.5 million or100% year on year, mainly because SEG Real Estate and SEG Property paid the investment of RMB 17.5 million for29.75% of the equity of Shenzhen Zhonghai SEG Intelligent Parking Development Co., Ltd. in the same period of last year.
8. Cash received from borrowing decreased by RMB 753.42 million or53.68% year on year, mainly due to decrease in bank loans obtained by the Company in the reporting period.
9. Cash paid for debt repayment decreased by RMB 354.42 million or34.2% year on year, mainly due to decrease in bank loans due for repayment of the Company in the reporting period
II. Progress and impacts of significant events and analysis of solutions
√ Applicable□ Not applicable
None
||||
|-|-|-|
|||Inquiry Index for the Websites Disclosing|
|Overview of Important Events|Disclosure Date||
|||the Temporary Reports|
|1. Annual equity distribution in 2016The Company passed the Proposal on ProfitDistribution and Transfer of CapitalReserves to Share Capital in 2016 at the 4thextraordinary general meeting ofshareholders in 2017. In accordance withthe aforesaid proposal and theAnnouncement of Shenzhen SEG Co., Ltd.on Annual Equity Distribution in 2016issued on August 11, 2017, the annualequity distribution plan of the Company in2016 was as follows: based on the totalexisting total share capital of 1,235,656,249shares, the Company distributed RMB 0.3by cash (tax included) for every 10 shares toall shareholders. As of August 21, theCompany's equity distribution has beencompleted.||Announcement of Shenzhen SEG Co., Ltd.|
|||on Proposal on Profit Distribution and|
||July 6, 2017|Transfer of Capital Reserves to Share|
|||Capital in 2016 disclosed on|
|||http://www.cninfo.com.cn/|
|||Announcement of Shenzhen SEG Co., Ltd.|
||August 11, 2017|on Annual Equity Distribution of 2016|
|||disclosed on http://www.cninfo.com.cn/|
|2. Adjustment of the price and numberof stocks issued for raising supporting fundsConsidering the Company completed annualequity distribution of 2016, according to theReorganization Report and agreementsconcerning this transaction, the Companyadjusted the price and number of stocksissued for raising supporting funds asfollows: (1) The price of stocks issued forraising supporting funds was changed from|||
|||Announcement of Shenzhen SEG Co., Ltd.|
|||on Adjustment of the Price and Number of|
|||Stocks Issued for Raising Supporting Funds|
|||Involved in Share Issuance and Cash|
||August 22, 2017||
|||Payment to Acquire Assets and Raise|
|||Supporting Funds after Annual Equity|
|||Distribution in 2016 disclosed on|
|||http://www.cninfo.com.cn/|

Main Body of Q3 2017 Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|a minimum of RMB 9.94 per share to aminimum of RMB 9.91 share; (2) Thenumber of stocks issued for raisingsupporting funds was changed from amaximum of 201,207,243 shares to amaximum of 201,816,347 shares.|||
|3. Change of chairman of the CompanyMr. Wang Li, chairman & director of theCompany, applied for resignation to theBoard of Directors on August 30, 2017. TheCompany re-elected a director according torelevant laws, regulations and provisionsand procedures stipulated in the Articles ofAssociation. Mr. Wang Bao was elected asdirector of the 7th Session of the Board ofDirectors at the 5th extraordinary generalmeeting of shareholders in 2017, andchairman of the 7th Session of the Board ofDirectors at the 25th interim meeting of the7th Session of the Board of Directors.||Announcement of Shenzhen SEG Co., Ltd.|
||August 31, 2017|on Resignation of the Chairman disclosed|
|||on http://www.cninfo.com.cn/|
|||Announcement of Shenzhen SEG Co., Ltd.|
|||on Resolutions of the 5th Extraordinary|
|||General Meeting of Shareholders in 2017|
|||and Announcement of Shenzhen SEG Co.,|
||September 26, 2017||
|||Ltd. on Resolutions of the 25th Interim|
|||Meeting of the 7th Session of the Resolution|
|||of the Board of Directors disclosed on|
|||http://www.cninfo.com.cn/|
|4. Reduction of share holdings ofHuakong SEGIn order to maximize the efficiency of stockassets of the Company, improve the assetand business structure of the Company, theCompany intended to reduce all shareholdings of Huakong SEG. The Companywill sell no more than 20,133,429 shares ofHuakong SEG (accounting for no more than2% of shares of Huakong SEG) bycentralized trading of securities atcompeting prices depending on the stockmarket quotation within the six months, andauthorize the management to havepersonnel take charge of specific operationwithin the scope of authority of the generalmeeting. Reduction of share holdings hasstarted since October 9, 2017.||Announcement of Shenzhen SEG Co., Ltd.|
|||on Proposed Reduction of Share Holdings|
||September 9, 2017||
|||of Shenzhen Huakong SEG Co., Ltd.|
|||disclosed on http://www.cninfo.com.cn/|
|||Announcement of Shenzhen SEG Co., Ltd.|
|||on Resolutions of the 4th Extraordinary|
||September 26, 2017||
|||General Meeting of Shareholders in 2017|
|||disclosed on http://www.cninfo.com.cn/|
|5. Plan to increase share holdings of theCompanyDue to confidence in the prospect of theCompany and recognition of the value ofthe Company, some directors, supervisors,||Announcement of Shenzhen SEG Co., Ltd.|
|||on the Plan of Some Directors, Supervisors,|
||September 21, 2017|Senior Executives and Middle Management|
|||of the Controlling Shareholder to Increase|
|||Share Holdings of the Company disclosed|

Main Body of Q3 2017 Report of Shenzhen SEG Co., Ltd.
|||
|-|-|
|senior executives and middle managementof Shenzhen SEG Group, the controllingshareholder of the Company, and Somedirectors, supervisors, senior executives andmiddle management of the Company plan toincrease share holdings of the Company bycentralized trading of securities atcompeting prices within the next sixmonths, which are expected to be no lessthan RMB 5 million in total.|on http://www.cninfo.com.cn/|

III. Commitments not fulfilled in the reporting period by the actual controller of the Company, shareholders, buyers, or other related parties
□ Applicable√ Not applicable
There are no commitments that are not fulfilled in the reporting period by the actual controller of the Company, shareholders, buyers, or other related parties.
IV. Estimation of operating results of Year 2017
Warning of negative estimated accumulated net profit from the beginning of the year to the end of the next reporting period or large fluctuation over the same period of the previous year and causes
√ Applicable□ Not applicable
Performance forecast: sharp rise towards same direction compared with the same period of last year (before adjustment)
Type of data filled in the performance forecast: exact number
||||||
|-|-|-|-|-|
|||Same period|||
||From the beginning of the||||
|||last year|||
||year to the end of next||Decrease or increase||
|||(before|||
||period||||
|||adjustment)|||
|Estimated accumulated net|||||
||21,000|10,756|Increase|95.24%|
|profit (RMB 10,000)|||||
|Basic earnings per share|||||
||0.170|0.137|Increase|24.00%|
|(Yuan/share)|||||
||1. The Company has issued shares and purchased underlying assets for major assets||||
||restructuring in Q1 2017. The Company has purchased 100% of the equity of||||
||SegMaker, 55% of the equity of SEG Kangle, 100% of the equity of SEG Property||||
||Development and 79.02% of the equity of SEG Real Estate held by SEG Group by||||
|Notes to earnings forecast|means of issuing shares and paying cashes to acquire assets. The four target||||
||companies have completed asset transfer on January 19, 2017. As the Company||||
||includes these underlying assets in the consolidated statements in 2017, the profit||||
||or loss of the four target companies is included in earnings forecasts of 2017.||||
||2. Financial data in the foregoing earnings forecasts is not audited yet, and the||||

Main Body of Q3 2017 Report of Shenzhen SEG Co., Ltd.
||
|-|
|disclosed data in 2017 report shall prevail.|

V. Securities investment
□ Applicable√ Not applicable
No securities investment is involved in the reporting period.
VI. Derivative investment
□ Applicable√ Not applicable
No derivative investment is involved in the reporting period.
VII. Registration form for investigations, communication and interviews in the reporting period
√ Applicable□ Not applicable
|||||
|-|-|-|-|
|Time|Means|Type|Investigation Index|
||||Inquire about the number of|
||||shareholders as of June 30. The|
||||Company has given a reply|
|July 5, 2017|Phone call|Individual|according to the register of|
||||shareholders released by the|
||||Securities Depository and Clearing|
||||Corporation.|
||||Inquire about the operation of the|
||||Company in the first half of 2017.|
|July 10, 2017|Phone call|Individual|The Company suggests looking|
||||forward to the Semi-Annual|
||||Report 2017 to the disclosed.|
||||Inquire about the progress of|
||||raising supporting funds. The|
|August 15, 2017|Phone call|Individual||
||||Company has given a reply|
||||according to the actual progress.|
||||Inquire about the number of|
||||shareholders as of August 15.The|
||||Company has given a reply|
|August 17, 2017|Phone call|Individual|according to the register of|
||||shareholders released by the|
||||Securities Depository and Clearing|
||||Corporation.|
||||Inquire about when to elect a new|
||||director. The Company replied that|
|September 1, 2017|Phone call|Organization||
||||a new director would be re-elected|
||||according to the Articles of|

Main Body of Q3 2017 Report of Shenzhen SEG Co., Ltd.
|||||
|-|-|-|-|
||||Association and relevant|
||||provisions as soon as possible.|
||||Inquire about the main business,|
||||transformation, and private|
||||placement of the Company. The|
|September 10, 2017|Phone call|Individual||
||||Company has given a reply|
||||according to the actual progress|
||||disclosed.|
||||Inquire about the number of|
||||shareholders as of September 15.|
||||The Company has given a reply|
|September 18, 2017|Phone call|Individual|according to the register of|
||||shareholders released by the|
||||Securities Depository and Clearing|
||||Corporation.|

VIII. Illegal external guarantee
□ Applicable√ Not applicable
No illegal external guarantee is involved in the reporting period.
IX. Non-operating capital occupation on the listed company by the controlling shareholders and related parties
□ Applicable√ Not applicable
No non-operating capital occupation on the listed company by the controlling shareholders and related parties is involved in the reporting period.
X. Fulfillment of the social responsibility for targeted poverty alleviation
1. Overview of targeted poverty alleviation in Q3
According to the national decision to fight against poverty and the work arrangements of the CPC (the Communist Party of China) Committee of Guangdong Province, People's Government of Guangdong Province, CPC Committee of Shenzhen, People's Government of Shenzhen, State-owned Assets Supervision and Administration Commission of Shenzhen, and SEG Group on three-year targeted poverty alleviation, SEG Group was designated to provide poverty alleviation aid for Zishi Village, Zishi Town, Longchuan County, Heyuan. After receiving the task, the CPC Committee and leaders of the Company attached great importance to it, and fully realized the importance, arduousness and urgency of poverty alleviation and development in the new period. Our thoughts and actions followed the spirits conveyed by important talks of Xi Jinping, CPC General Secretary, and decisions and arrangements on targeted poverty alleviation of government at all levels and the upper CPC committee. SEG Group promptly appointed the leader of the work team and arranged for special personnel to stay at the village for poverty
alleviation. According to unified arrangements of SEG Group, the Company and its controlling subsidiaries aided
20 low-income families and 46 impoverished persons.
Main Body of Q3 2017 Report of Shenzhen SEG Co., Ltd. In the first three quarters of 2017, the Company organized "targeted poverty alleviation on campus and study assistance". In March, the Company donated caring materials to the Central Primary School of Zishi Town, Heyuan and brought STEAM creative programs to students. In May, the Company arranged for merchants to visit Zishi Village and consoled low-income families.
2. Planning for subsequent targeted poverty alleviation
1. The Company will increase efforts on industrial projects for targeted poverty alleviation, and promote the pigeon eco-breeding program in the form of enterprises+ farmers according to the uniform arrangement of Longchuan CPC Committee; 2. The Company will promote infrastructure construction and complete the villager cultural activity plaza, road hardening project, and drinking water purification transformation.