Full text of 2014 Q1 Report of Shenzhen SEG Co., Ltd. Shenzhen SEG Co., Ltd.
2014 Q1 Report
2014-028
April 2014
Full text of 2014 Q1 Report of Shenzhen SEG Co., Ltd. Chapter 1 Important Notes
The Board of Directors and Board of Supervisors of the Company, its directors, supervisors, and senior executives hereby guarantee the authenticity, accuracy, and completeness of the quarterly report and no existence of false records, misleading statements or major omissions, and will assume individual and joint and several liabilities.
All the directors have attended this board meeting reviewing the quarterly report.
The person in charge of the Company Wang Li, the Chief Financial Officer Liu Zhijun, and the person in charge of the accounting institution (chief accountant) Ying Huadong hereby declare that the financial statements enclosed in this quarterly report are authentic, accurate, and complete.
Full text of 2014 Q1 Report of Shenzhen SEG Co., Ltd. Chapter 2 Change of Major Financial Data and Shareholders I. Major Accounting Data and Financial Indexes
Are retrospective adjustments made to previous financial statements due to accounting policy changes or accounting error corrections?
□ Yes√ No
|||||||
|-|-|-|-|-|-|
|||||Same period of the|Year-on-year|
|Item||Current report period||||
|||||previous year|increase/decrease (%)|
|Operating revenue (RMB Yuan)|145,841,677.48||126,976,198.11||14.86%|
|Net profit attributable to shareholders of|22,449,590.92||20,488,550.91|||
||||||9.57%|
|the listed company (RMB Yuan)||||||
|Net profit attributable to shareholders of||||||
|the listed company after deduction of||||||
|||22,292,348.81||20,099,360.71|10.91%|
|non-recurring gains and losses (RMB||||||
|Yuan)||||||
|Net cash flow arising from operating|103,593.07||-79,128,683.42|||
|activities (RMB Yuan)||||||
|Basic earnings per share (Yuan/Share)|0.0286||0.0261||9.58%|
|Diluted earnings per share (RMB|0.0286||0.0261|||
||||||9.58%|
|Yuan/Share)||||||
|Weighted average ROE (%)||1.8%||1.7%|0.1%|
||||||Increase/decrease of the end|
|||End of the current report|||of the current report period|
|Item||||End of the previous year||
|||period|||as compared to the end of|
||||||the previous year (%)|
|Total assets (RMB Yuan)|2,056,401,971.56||2,134,940,597.85||-3.68%|
|Net assets attributable to shareholders of|1,272,653,966.65||1,250,224,375.08|||
||||||1.79%|
|the listed company (RMB Yuan)||||||

Items of non-recurring gains and losses and related amounts
√ Applicable□ Not applicable
Unit: RMB Yuan
||||
|-|-|-|
||Amount from the beginning||
|Item|of this year to the end of the|Remarks|
||report period||
|Government subsidies recorded into current gains and losses||Special fund for Shenzhen|
|(except those closely related to the Company's business, which|173,009.10|biology, Internet, and new energy|
|are enjoyed by the unified national standard quota or certain||industry development as well as|

Full text of 2014 Q1 Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
||Amount from the beginning||
|Item|of this year to the end of the|Remarks|
||report period||
|quantity)||Special fund for Shenzhen|
|||strategic emerging industry|
|||development|
|Other non-operating revenue and expenses except the|||
||101,364.84||
|above-mentioned items|||
|Less: Influenced amount of income tax|3,105.53||
|Amount of influence of minority shareholders' equity (after|||
||114,026.30||
|tax)|||
|Total|157,242.11|--|

An explanation shall be provided with regard to the Company's considerations for defining non-recurring gains and losses according to the Explanatory Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public— Non-recurring Gains and Losses and the reason of classifying non-recurring gains and losses listed in this announcement as recurring ones.
□ Applicable√ Not applicable
II. Total Number of Shareholders and Shareholding Information of Top Ten Shareholders by the End of the Report Period
Unit: share
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||Total number of shareholders by the|||||||||||
||||||64,214|||||||
||end of the report period|||||||||||
||Particulars about shares held by the top ten shareholders|||||||||||
||||||||||Quantity of|Information about pledged or||
||Name of||Nature of||Shareholding||Quantity of|||||
||||||||||restricted|frozen shares||
||shareholder||shareholder||proportion (%)||shares held|||||
||||||||||shares held|Share status|Quantity|
|Shenzhen SEGGroup Co., Ltd.||State-ownedlegal person||30.24%||237,359,666||0||||
|||||||||||Frozen|83,679,833|
|Zeng Ying||Domesticnatural person||1.04%||8,140,826||0||||
|Ma Bo||Domesticnatural person||0.85%||6,690,600||0||||
|Gong Qianhua||Overseasnatural person||0.68%||5,311,520||0||||
|Huaxia Bank —HuashangLarge-sized StocksQuantitative||Other||0.39%||3,028,821||0||||

Full text of 2014 Q1 Report of Shenzhen SEG Co., Ltd.
||||||||||
|-|-|-|-|-|-|-|-|-|
|Selection andFlexibleConfigurationHybrid SecuritiesInvestment Fund|||||||||
|Liu Guocheng||Overseasnatural person|0.37%||2,910,160|0|||
|Xu Yihong||Domesticnatural person|0.25%||1,952,480|0|||
|NORGES BANK||Overseas legalperson|0.24%||1,890,226|0|||
|ZhongrongInternational TrustCo., Ltd. —Ruihua No. 3||Other|0.23%||1,838,888|0|||
|Liu Liaoyuan||Domesticnatural person|0.22%||1,704,825|0|||
||Particulars about shares held by top ten shareholders of unrestricted shares||||||||
||||||||Type of share||
||Name of shareholder|||Quantity of unrestricted shares held|||||
||||||||Type of share|Quantity|
|Shenzhen SEG Group Co., Ltd.|||237,359,666||||RMB ordinary||
|||||||||237,359,666|
||||||||shares||
|Zeng Ying|||8,140,826||||Domestically||
||||||||listed foreign|8,140,826|
||||||||shares||
|Ma Bo|||6,690,600||||RMB ordinary||
|||||||||6,690,600|
||||||||shares||
|Gong Qianhua|||5,311,520||||Domestically||
||||||||listed foreign|5,311,520|
||||||||shares||
|Huaxia Bank — HuashangLarge-sized Stocks QuantitativeSelection and Flexible ConfigurationHybrid Securities Investment Fund|||3,028,821||||||
||||||||RMB ordinary||
|||||||||3,028,821|
||||||||shares||
|Liu Guocheng|||2,910,160||||Domestically||
||||||||listed foreign|2,910,160|
||||||||shares||
|Xu Yihong|||1,952,480||||RMB ordinary||
|||||||||1,952,480|
||||||||shares||
|NORGES BANK|||1,890,226||||Domestically||
|||||||||1,890,226|
||||||||listed foreign||

Full text of 2014 Q1 Report of Shenzhen SEG Co., Ltd.
|||||||
|-|-|-|-|-|-|
|||||shares||
|Zhongrong International Trust Co.,Ltd. — Ruihua No. 3||1,838,888||RMB ordinary||
||||||1,838,888|
|||||shares||
|Liu Liaoyuan||1,704,825||Domestically||
|||||listed foreign|1,704,825|
|||||shares||
||||There existed no associated relationship between Shenzhen SEG Group Co., Ltd.|||
||Explanations on the associated|||||
||||(hereinafter referred to as "SEG Group") and other shareholders, and they were not|||
||relationship or concerted action|||||
||||consistent actionists stipulated in the Management Regulation of Information Disclosure|||
||among the above-mentioned|||||
||||on Change of Shareholding Status of Shareholders of Listed Companies. It is unknown|||
||shareholders|||||
||||whether other shareholders are concerted action units.|||
||||Among the top ten shareholders, Ma Bo holds 0 shares of the Company through the|||
||Top ten shareholders involved in the|||||
||||ordinary account and 6,690,600 shares through the credit account of investors engaged in|||
||securities margin trading (if any)|||||
||||securities margin trading, totaling 6,690,600 shares of the Company.|||

Did the shareholders of the Company conduct agreed repurchase transactions in the report period?
□ Yes√ No
Full text of 2014 Q1 Report of Shenzhen SEG Co., Ltd. Chapter 3 Important Matters
I. Particulars and Explanations of Material Changes in Major Items of Accounting
Statements and Financial Indexes in the Report Period
Unit: RMB Yuan
(1) Items in the Balance Sheet
||||||
|-|-|-|-|-|
|Item|Period-end balance|Period-beginningbalance|Difference|Year-on-yearincrease/decrease(%)|
|Accounts receivable|115,866,760.21|204,086,309.32|-88,219,549.11|-43.23%|
|Accounts payable|96,552,910.78|181,751,142.48|-85,198,231.70|-46.88%|
|Wages payable|9,041,583.98|17,065,382.28|-8,023,798.30|-47.02%|
|Retained profits|-19,630,903.72|-42,080,494.64|22,449,590.92|53.35%|

 1. The accounts receivable decreased by RMB 88.22 million Yuan as compared to the period-beginning amount, with a decrease of43.23%. The major causes for the decrease were that the supply chain businesses of Shenzhen SEG E-Commerce Co., Ltd. (hereinafter referred to as "SEG E-Commerce"), a subsidiary of the Company, decreased due to reduced exports during the Chinese Spring Festival and a large sum of exported goods payment receivable in 2013 was retrieved in the report period.
2. The accounts payable decreased by RMB 85.20 million Yuan as compared to the period-beginning amount, with a decrease of46.88%.The major causes for the decrease were that SEG E-Commerce, a subsidiary of the Company, decreased its procurement quantity with the reduction of the export quantity in the report period, and accounts payable to suppliers decreased accordingly.
3. The wages payable decreased by RMB 8.02 million Yuan as compared to the period-beginning amount, with a decrease of47.02%. The major cause for the decrease was that some wages and bonuses accrued in the previous year were paid in the report period.
4. The retained profits increased by RMB 22.45 million Yuan as compared to the period-beginning amount, with an increase of53.35%. The major cause for the increase was that the net profit attributable to the parent company increased.
(2) Items in the Income Statement
|||||
|-|-|-|-|
|Amount of the currentperiod|Amount of theprevious period|Difference|Year-on-yearincrease/decrease (%)|
|10,437,899.17|6,303,044.92|4,134,854.25|65.60%|

Full text of 2014 Q1 Report of Shenzhen SEG Co., Ltd.
|||||
|-|-|-|-|
|Amount of the currentperiod|Amount of theprevious period|Difference|Year-on-yearincrease/decrease (%)|
|16,833.81|238,726.27|-221,892.46|-92.95%|
|912,972.23|-|912,972.23|100.00%|
|381,151.00|586,727.58|-205,576.58|-35.04%|
|-|115,179.85|-115,179.85|-100.00%|
|378,109.51|919,996.92|-541,887.41|-58.90%|
|103,735.57|719.94|103,015.63|14,308.92%|
|7,179,638.19|3,826,404.92|3,353,233.27|87.63%|
|7,169,599.46|3,802,524.92|3,367,074.54|88.55%|

1. The interest income increased by RMB 4.13 million Yuan as compared to the same period of last year, with an increase of65.60%. The major causes for the increase were that Shenzhen SEG Credit Co., Ltd. (hereinafter referred to as "SEG Credit"), a subsidiary of the Company, underwent a sharp growth in the small loan business and the gained loan interest income increased accordingly.
2. The handling charge and commission income decreased by RMB 220,000 Yuan as compared to the same period of last year, with a decrease of92.95%. The major cause for the decrease was that the loan handling charge and commission income of SEG Credit, a subsidiary of Company, decreased.
3. The interest expenses are the bank loan interest paid for SEG Credit, a subsidiary of the Company. The interest expenses increased by RMB 910,000 Yuan as compare to the same period of last year, with an increase of100.00%. The major causes for the increase were that the bank loans increased and the loan interest charges increased accordingly.
4. The operating expenses decreased by RMB 210,000 Yuan as compared to the same period of last year, with a decrease of35.04%. The major cause for the decrease was the reduced marketing expense of the channel store business of Shenzhen SEG Industrial Investment Co., Ltd. (hereinafter referred to as "SEG Industry"), a subsidiary of the Company, in the report period.
5. The asset impairment loss decreased by RMB 120,000 Yuan as compared to the same period of last year, with a decrease of100.00%. The major cause for the decrease was that the accrued general loan loss provisions of SEG Credit, a subsidiary of the Company, decreased in the report period.
6. The non-operating revenue decreased by RMB 540,000 Yuan as compared to the same period of last year, with
a decrease of58.90%. The major cause for the decrease was that the definite government subsidies of SEG
E-Commerce, a subsidiary of the Company, decreased in the report period.
Full text of 2014 Q1 Report of Shenzhen SEG Co., Ltd. 7. The non-operating expenses increased by RMB 100,000 Yuan as compared to the same period of last year, with an increase of14,308.92%. The major cause for the increase was that Shenzhen SEG Nanjing Electronics Market Management Co., Ltd. (hereinafter referred to as "Nanjing SEG") withheld business tenants' compensation expenses due to business adjustment in the report period.
8. The gains and losses of minority shareholders increased by RMB 3.35 million Yuan as compared to the same period of last year, with an increase of87.63%. The major causes for the increase were that the profits of SEG Credit, a subsidiary of the Company, increased year-on-year and SEG E-Commerce turned loss into profit in the report period.
9. The total comprehensive income attributable to minority shareholders increased by RMB 3.37 million Yuan as compared to the same period of last year, with an increase of88.55%. The major causes for the increase were the same as that in above Item 8.
(3) Items in the Cash Flow Statement
||||||
|-|-|-|-|-|
|Item|Amount of thecurrent period|Amount of theprevious period|Difference|Year-on-yearincrease/decrease(%)|
|Cash received from sales of goods andrendering of services|469,413,208.88|116,765,324.27|352,647,884.61|302.01%|
|Cash received from interest, handlingcharges, and commissions|13,197,482.98|8,241,020.99|4,956,461.99|60.14%|
|Tax rebates received|3,563,641.53|0.00|3,563,641.53|100.00%|
|Cash paid for goods purchased andservices received|463,260,003.61|141,753,366.39|321,506,637.22|226.81%|
|Net increase in loans and advances tocustomers|-29,550,762.00|5,698,024.66|-35,248,786.66|-618.61%|
|Cash paid for interest, handlingcharges, and commissions|237,331.00|0.00|237,331.00|100.00%|
|Cash paid for taxes and surcharges|38,018,451.62|27,602,715.62|10,415,736.00|37.73%|
|Cash received from borrowings|31,000,000.00|20,000,000.00|11,000,000.00|55.00%|
|Cash paid for repayment of debt|45,000,000.00|19,000,000.00|26,000,000.00|136.84%|
|Cash paid for distribution of dividendsand profits or payment of interest|1,324,064.01|306,208.89|1,017,855.12|332.41%|

1. The cash received from sales of goods and rendering of services increased by RMB 352.65 million Yuan as
compared to the same period of last year, with an increase of302.01%. The major causes for the increase were
that the supply chain business of SEG E-Commerce, a subsidiary of the Company, sharply increased in the report
period and the received payment of goods increased accordingly.
Full text of 2014 Q1 Report of Shenzhen SEG Co., Ltd. 2. The cash received from interest, handling charges, and commissions increased by RMB 4.96 million Yuan as compared to the same period of last year, with an increase of60.14%. The major causes for the increase were that the loan scale of SEG Credit, a subsidiary of the Company, expanded and the interests from the small loan increased in the report period.
3. The tax rebates received increased by RMB 3.56 million Yuan as compared to the same period, with an increase of100.00%. The major cause for the increase was the increased export rebates from the supply chain business of SEG E-Commerce, a subsidiary of the Company, in the report period.
4. The cash paid for goods purchased and services received increased by RMB 321.51 million Yuan as compared to the same period of last year, with an increase of226.81%. The major causes for the increase were that the supply chain business of SEG E-Commerce, a subsidiary of the Company, sharply increased in the report period and the payment for the purchased goods increased accordingly.
5. The net increase in loans and advances to customers decreased by RMB 35.25 million Yuan as compared to the same period of last year, with a decrease of618.61%. The major causes for the decrease were that the loan scale of SEG Credit, a subsidiary of the Company, reached the maximum loan limit in the report period and the capital available for granting loans decreased.
6. The cash paid for interest, handling charges, and commissions increased by RMB 240,000 Yuan as compared to the same period of last year, with an increase of100.00%. The major causes for the increase were that SEG Credit, a subsidiary of the Company, increased the bank loan and the incurred interest expenses increased accordingly. 7. The cash paid for taxes and surcharges increased by RMB 10.42 million Yuan as compared to the same period of last year, with an increase of37.73%. The major causes for the increase were that the taxes paid for the previous year by the Company and its subsidiaries increased, and the taxes and surcharges of the newly founded electronics market also increased.
8. The cash received from borrowings increased by RMB 11 million Yuan as compared to the same period of last year, with an increase of55.00%. The major causes for the increase were that SEG E-Commerce, a subsidiary of the Company, expanded its business and gained more bank loans in the report period.
9. The cash paid for repayment of debt increased by RMB 26 million Yuan as compared to the same period of last year, with an increase of136.84%. The major cause for the increase was the increased loan principal paid to banks by SEG Credit, a subsidiary of the Company, in the report period.
10. The cash paid for distribution of dividends and profits or payment of interest increased by RMB 1.02 million Yuan as compared to the same period of last year, with an increase of332.41%. The major cause for the increase was the increased loan interest paid to banks by SEG Credit, a subsidiary of the Company, in the report period. II. Progress of Important Matters, Relevant Influence, and Analysis of Solutions
(1) Related transactions concerning daily operation
Full text of 2014 Q1 Report of Shenzhen SEG Co., Ltd. The 3rd Meeting of the 6th Board of Directors of the Company held on March 18, 2014 deliberated and approved that, in 2014, in order to meet the needs of developing businesses in the electronics market, the Company should lease a part of the 8th floor of SEG Plaza estate from its controlling shareholder, SEG Group, as the warehouse for the Company's electronics market business tenants. During the lease term, the Company should pay rent and property management fee to SEG Group. With related directors avoided in the voting, the Board of Directors agreed that, for 2014, the Company could have intercompany transactions on the estate lease with SEG Group based on the market fair value within the limit of RMB 1.2 million Yuan.(This matter can be referred to in the Public Notice on the Resolutions of the 3rd Meeting of the 6th Board of Directors of Shenzhen SEG Co., Ltd. and the Public Notice of Shenzhen SEG Co., Ltd. on Estimated Matters Related to Daily Related Transactions Concerning Operating Activities in 2014 disclosed on the China Securities Journal, the Securities Times, the Securities Daily, the Hong Kong Commercial Daily and the Cninfo Website on March 20, 2014).
Within the report period, the Company shall pay a total of RMB 146,550 Yuan as the rent and property management fee to SEG Group.
(2) Progress of the issuance of short-term commercial papers by the Company
The 2nd Provisional General Meeting of the Company in 2012 held on September 24, 2012 deliberated and adopted the Company's Proposal on Applying for Issuance of Short-term Commercial Papers or Mid-term Notes from National Association of Financial Market Institutional Investors and approved that the Company could issue short-term commercial papers or mid-term notes valuing no more than RMB 500 million Yuan within the validity period of registration with the National Association of Financial Market Institutional Investors (hereinafter referred to as "Association of Investors") based on the actual capital requirements. (This matter can be referred to in the Public Notice on the Resolutions of the 2nd Provisional Meeting of Shareholders of Shenzhen SEG Co., Ltd. in 2012 disclosed on the China Securities Journal, the Securities Times, the Securities Daily, the Hong Kong Commercial Daily, and the Cninfo Website on September 25, 2012.) The Company had submitted a registration report to the Association of Investors according to the resolutions of the general meeting of shareholders.
The Company had received the Registration Acceptance Notification([2013] CP No. 499) from the Association of Investors in the report period. (This matter can be referred to in the Public Notice of Shenzhen SEG Co., Ltd. on Registration Approval of Short-term Commercial Papers disclosed on the China Securities Journal, the Securities Times, the Securities Daily, the Hong Kong Commercial Daily, and the Cninfo Website on January 3, 2014.) Up to the date of disclosing this report, the Company has not issued any short-term commercial paper. The Company will issue short-term commercial papers within the registration validity period based on capital requirements and market interest rate fluctuations and will, as stipulated, disclose relevant information accurately, completely, and on a timely basis.
(3) Internal control implementation in the first quarter in 2014
Full text of 2014 Q1 Report of Shenzhen SEG Co., Ltd. In the report period, the Company carried out the 2013 internal control self-evaluation. The Self-evaluation Report of Shenzhen SEG Co., Ltd. on the Internal Control in 2013, which was filed, deliberated, and adopted at the 3rd Meeting of the 6th Board of Directors, was disclosed at the Cninfo Website on March 20, 2014. BDO Dahua CPA Co., Ltd. (Special General Partnership) hired by the Company conducted the 2013 internal control audit, and issued the Audit Report of Shenzhen SEG Co., Ltd. on the Internal Control (DA HUA NEI ZI[2014] 000045). The report holds that the Company has maintained effective internal financial control over every major aspect in accordance with the Basic Standard for Enterprise Internal Control and relevant rules and regulations on December 31, 2013. The audit report was disclosed at the Cninfo Website on March 20, 2014.
(4) Matters concerning the Company's investment and participation in the ripening of the land for building Yantai SEG Times Square Project
According to the development strategy of centering around the operation of professional electronics markets and developing SEG IT malls with estates owned by the Company, which was formulated in the 12th Five-Year Plan, the Company planned to invest and set up Yantai SEG Times Square Development Co., Ltd. (hereinafter referred to as "Yantai SEG" or "Project Company", the name verified by the industry& commerce department shall prevail) in Yantai, Shandong, to build the Yantai SEG Times Square Project (hereinafter referred to as "the Project"), so as to enhance the influence of SEG electronics market in Shandong and even North China. Yantai SEG is jointly founded by the Company and Shandong Huanghai Mingzhu Group Co., Ltd. (hereinafter referred to as "Shandong Huanghai Mingzhu") with the registered capital totaling RMB 100 million Yuan, where the Company invests RMB 90 million Yuan, accounting for90% of the registered capital and Shandong Huanghai Mingzhu invests RMB 10 million Yuan, accounting for10% of the registered capital.
The Land and Resources Bureau of Yantai formally released the Public Notice on Public Collection of Investor Qualifications for Land Ripening of State-Owned Operational Construction Land (hereinafter referred to as "Public Notice") on Yantai Daily on March 28, 2014 to publicly collect investor qualifications for land ripening of the (A) plot seated in the east of Qingnian Road and north of West Street in Yantai. The plot needs to be ripened before its land use rights are transferred. The plot is the land of Yantai SEG Times Square Project planned to be invested in Zhifu District, Yantai by the Company. Land bidders shall be qualified as land ripening investors before participating in the early ripening of the plot according to the Public Notice and the Notes and Requirements. Land bidders who are disqualified as land ripening investors are not allowed to bid for the land use rights transfer. Therefore, the Project Company planned to participate in the early ripening of the plot. It was estimated that RMB 890 million Yuan is required for the land ripening, including the land ripening fee of RMB 830 million Yuan, ripening bond of RMB 50 million Yuan, and project start-up capital of RMB 10 million Yuan. The land ripening capital is sourced from the registration capital of the Project Company and the capital borrowed from shareholders of the Project Company in the same proportion as the equity proportion of shareholders of the Project Company. The Company lent RMB 711 million Yuan to Yantai SEG based on the90% equity owned by the Company.
Full text of 2014 Q1 Report of Shenzhen SEG Co., Ltd. The 10th Provisional Meeting of the 6th Board of Directors held on April 4, 2014 and the 1st Provisional General Meeting of the Company in 2014 held on April 23, 2014 deliberated and approved that the Company invested RMB 801 million Yuan, with RMB 90 million Yuan for founding the Project Company and RMB 711 million Yuan lent to the Project Company for bidding for the land ripening investor qualification. The preceding capital is financed through the capital self-owned by the Company and bank loans. The investment does not constitute a major asset reorganization matter specified in the Administrative Measures for the Material Asset Reorganizations of Listed Companies or a related transaction.
(This matter can be referred to in the Public Notice on Resolutions of the 10th Provisional Meeting of the 6th Board of Directors of Shenzhen SEG Co., Ltd., and the Public Notice of Shenzhen SEG Co., Ltd. on Investment and Participation in Land Ripening of Yantai SEG Times Square Project disclosed on April 8, 2014, and the Public Notice on the Resolutions of the 1st Provisional General Meeting of Shenzhen SEG Co., Ltd. in 2014 disclosed on April 24, 2014 on the China Securities Journal, the Securities Times, the Securities Daily, the Hong Kong Commercial Daily, and the Cninfo Website.)
On April 28, 2014, the Company participated in the open auction for the qualification of the investor in the above land ripening, but failed to acquire such a qualification. This failure in auction for the qualification of the investor in the ripening of this plot will not impact the production and operation of the Company.
|||||
|-|-|-|-|
||||Inquiry index for the websites disclosing the|
||Overview of important matters|Disclosure date||
||||temporary reports|
|1. Relevant information that is not disclosed bythe Company may affect the share price of theCompany. In order to prevent share pricefluctuation of the Company and protectinvestors' interest, the Company, according torelevant regulations of Shenzhen StockExchange, temporarily suspended trading of theCompany's shares at the start of stock marketopening on March 10, 2014 after application.||||
||||Public Notice on Temporary Suspension of Shenzhen|
||||SEG Co., Ltd. disclosed on the China Securities|
|||March 10, 2014|Journal, the Securities Times, the Securities Daily, the|
||||Hong Kong Commercial Daily, and the Cninfo|
||||Website|
|2. The 9th Provisional Meeting of the 6th Boardof Directors of the Company was held onMarch 10, 2014 in a way of communicationvoting. The Proposal on Signing the ControlRight Arrangement Agreement of ShenzhenHuakong SEG Co., Ltd. was deliberated andadopted in the meeting. After application, thetrading of the Company's shares was resumed atthe start of stock market opening on March 12.||||
||||Resumption Public Notice, Public Notice on the|
||||Resolutions of the 9th Provisional Meeting of the 6th|
||||Board of Directors of Shenzhen SEG Co., Ltd., and|
||||Public Notice on Abandonment of the Control Right|
|||March 12, 2014||
||||Over Shenzhen Huakong SEG Co., Ltd. disclosed on|
||||the China Securities Journal, the Securities Times, the|
||||Securities Daily, the Hong Kong Commercial Daily,|
||||and the Cninfo Website|

Full text of 2014 Q1 Report of Shenzhen SEG Co., Ltd. III. Commitments Made by the Company or the Shareholders Holding More Than5% Shares, Which Were Made in or Lasted into the Report period
|||||||
|-|-|-|-|-|-|
||||Commitment|Commitment||
|Commitment|Promisor|Content|||Fulfillment|
||||date|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|||||
|||According to Article||||
|||Five of the Equity||||
|||Transfer Agreement||||
|||signed by the||||
|||Company with SEG||||
|||Group when the||||
|||Company was listed,||||
|||SEG Group agreed the||||
|||Company and its||||
|||subsidiaries, and||||
|||associated companies||||
|||to use the eight||||
|||trademarks registered|||Commitmen|
||Shenzhen|by SEG Group at the|||ts were|
|Commitment made at the time of initial||||Effective in||
||SEG Group|National Trademark|July 1, 1996||fulfilled in|
|public offerings or refinancing||||the long run||
||Co., Ltd.|Bureau; SEG Group|||the report|
|||agreed that the|||period.|
|||Company used the||||
|||aforesaid trademarks||||
|||or similar signs as the||||
|||Company’s logo and||||
|||used the trademarks||||
|||and signs during its||||
|||operation; the||||
|||Company did not need||||
|||to pay any fees to||||
|||SEG Group for using||||
|||the aforesaid||||
|||trademarks or signs.||||
|Other commitments made to the medium|Not|||||
|and small shareholders of the Company|applicable|||||
|Whether commitments were fulfilled on||||||
||Yes|||||
|time||||||

Full text of 2014 Q1 Report of Shenzhen SEG Co., Ltd.
||||||||
|-|-|-|-|-|-|-|
|||Content|Commitmentdate|Commitmenterm|t||
|Commitment|Promisor|Content||||Fulfillment|
|Reason for un-fulfillment and next-step|||||||
||None||||||
|plan (if any)|||||||

IV. Estimation of the Business Performance from January to June in 2014
Warning and reasons for forecasts on losses of the accumulated net profit from the beginning of the year to the end of the next report period or sharp year-on-year changes in the net profit
□ Applicable√ Not applicable
V. Investment in Securities
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||||||Shareholding|||||||
|||Short|||||Shareholding|||||
||||Initialinvestment cost(RMB Yuan)|Shares held|proportion at|Shares heldat periodend||Ending bookvalue (RMBYuan)|Gains andlosses in thereport period||Source|
|Stock|Stockcode|form of|||||proportion at|||Accounting||
|||||at period|period||||||of|
|type||the|||||period end|||item||
|||||beginning|beginning||||||shares|
|||security|||||(%)|||||
||||||(%)|||||||
|||||||||||Financial||
|||Friendship||||||||assets|Initial|
|Share|600778||90,405.00|60,683|0.04%|60,683|0.04%|522,480.63|0.00|||
|||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%|100,168,556.18|-2,679,751.86|equity||
|||SEG|||||||||share|
|||||||||||investments||
|Total|||279,397,451.38|201,405,716|--|201,405,716|--|100,691,036.81|-2,679,751.86|--|--|

 Equity of other listed companies held by the Company
□ Applicable√ Not applicable
VI. Registration Form of Receiving Investigations, Communication and Interviews in the Report Period
||||||||
|-|-|-|-|-|-|-|
|||||Object||Main content of discussion|
|Time|Place|Means|Type||Object||
|||||||and the materials provided|
|||||Investor||Inquired whether the|
|||||||Company made profits or|
|||||||losses in 2013 and why the|
|||||||shares of the Company were|
|Jan. 10, 2014|At the Company|Phone call|Individual||Investor|not appreciated. The Company|
|||||||did not provide any|
|||||||documents. Investors were|
|||||||requested to read the 2013|
|||||||annual report of the Company|

Full text of 2014 Q1 Report of Shenzhen SEG Co., Ltd.
|||||||
|-|-|-|-|-|-|
||||||Main content of discussion|
|Time|Place|Means|Type|Object||
||||||and the materials provided|
||||||disclosed on March 20th,|
||||||2014.|
||||||Asked about information|
||||||about SEG GPS (12.5% equity|
||||||held by the Company) and|
||||||what the main business of the|
|Jan. 14, 2014|At the Company|Phone call|Individual|Investor||
||||||Company was. The Company|
||||||provided basic information|
||||||about SEG GPS and the|
||||||Company.|
||||||Asked about the profit|
||||||condition of the Company in|
||||||2013. The Company did not|
||||||provide any documents.|
|Feb. 10, 2013|At the Company|Phone call|Individual|Investor||
||||||Investors were requested to|
||||||read the 2013 annual report of|
||||||the Company disclosed on|
||||||March 20th, 2014.|
||||||Inquired why the shares of the|
||||||Company were not|
||||||appreciated. The Company|
|Feb. 11, 2014|At the Company|Phone call|Individual|Investor||
||||||provided the basic information|
||||||and disclosed periodical|
||||||reports of the Company.|
||||||Inquired what the main|
||||||business of the Company was.|
|Feb. 17, 2014|At the Company|Phone call|Individual|Investor|The Company provided the|
||||||basic information and the|
||||||latest periodical report.|
||||||Inquired whether the operation|
||||||of the Company was normal.|
|Feb. 20, 2014|At the Company|Phone call|Individual|Investor|The Company provided the|
||||||basic information and the|
||||||latest periodical report.|
||||||Asked about the disclosure|
||||||time of the annual report of|
||||||the Company. The Company|
|Feb. 21, 2014|At the Company|Phone call|Individual|Investor||
||||||told that the disclosure time of|
||||||the annual report was March|
||||||20, 2014.|
||||||Asked about the reason for the|
|Mar. 10, 2014|At the Company|Phone call|Individual|Investor||
||||||Company's temporary|

Full text of 2014 Q1 Report of Shenzhen SEG Co., Ltd.
|||||||
|-|-|-|-|-|-|
||||||Main content of discussion|
|Time|Place|Means|Type|Object||
||||||and the materials provided|
||||||suspension. The Company told|
||||||that the trading of the|
||||||Company's shares was|
||||||assumed on that day and|
||||||investors could pay attention|
||||||to the resumption public|
||||||notice.|
||||||Inquired why the Company|
||||||gave up the control right over|
||||||Huakong SEG. The Company|
|Mar. 10, 2014|At the Company|Phone call|Individual|Investor||
||||||gave replies according to|
||||||contents disclosed in the|
||||||public notice.|
||||||Inquired why the Company|
||||||gave up the control right over|
||||||Huakong SEG. The Company|
|Mar. 11, 2014|At the Company|Phone call|Individual|Investor||
||||||gave replies according to|
||||||contents disclosed in the|
||||||public notice.|
||||||Inquired why the Company|
||||||gave up the control right over|
||||||Huakong SEG. The Company|
|Mar. 12, 2014|At the Company|Phone call|Individual|Investor||
||||||gave replies according to|
||||||contents disclosed in the|
||||||public notice.|
||||||Asked about the operation|
||||||condition of the Company in|
||||||the first quarter. The Company|
|Mar. 19, 2014|At the Company|Phone call|Individual|Investor|requested investors to focus on|
||||||the 2014 Q1 report of the|
||||||Company to be disclosed|
||||||soon.|

Full text of 2014 Q1 Report of Shenzhen SEG Co., Ltd. Chapter 4 Financial Statements
I. Financial Statements
1. Consolidated Balance Sheet
Prepared by: Shenzhen SEG Co., Ltd
Unit: RMB Yuan
||||
|-|-|-|
|Item|Period-end balance|Period-beginning balance|
|Current assets:|||
|Monetary capital|381,284,711.27|336,593,493.81|
|Deposit reservation for balance|||
|Loans to banks and other financial institutions|||
|Trading financial assets|||
|Notes receivable|||
|Accounts receivable|115,866,760.21|204,086,309.32|
|Prepayments|76,726,729.04|74,002,910.35|
|Premiums receivable|||
|Reinsurance accounts receivable|||
|Reinsurance deposit receivable|||
|Interest receivable|||
|Dividends receivable|||
|Other receivables|25,397,347.88|25,033,354.72|
|Redemptory financial assets for sale|||
|Inventory|119,457,250.39|98,000,921.50|
|Non-current assets due within one year|||
|Other current assets|399,085,832.80|419,925,176.02|
|Total current assets|1,117,818,631.59|1,157,642,165.72|
|Non-current assets:|||
|Disbursement of entrusted loans and advances|214,320,676.72|243,871,438.72|
|Financial assets available for sale|522,480.63|562,531.41|
|Held-to-maturity investment|||
|Long-term accounts receivable|||
|Long-term equity investments|143,659,386.76|145,898,202.86|
|Investment properties|476,862,945.39|481,517,481.83|

Full text of 2014 Q1 Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Item|Period-end balance|Period-beginning balance|
|Fixed assets|40,978,496.38|41,876,654.83|
|Under-construction projects|||
|Engineering materials|||
|Disposal of fixed assets|||
|Productive biological assets|||
|Oil & gas assets|||
|Intangible assets|707,161.02|886,901.46|
|Development expenses|||
|Goodwill|10,328,927.82|10,328,927.82|
|Long-term expenses to be apportioned|42,930,864.85|44,178,804.04|
|Deferred income tax assets|8,272,400.40|8,177,489.16|
|Other non-current assets|||
|Total non-current assets|938,583,339.97|977,298,432.13|
|Total assets|2,056,401,971.56|2,134,940,597.85|
|Current liabilities:|||
|Short-term loans|51,000,000.00|70,000,000.00|
|Loans from the Central Bank|||
|Deposits attracted and accounts due to banks and|||
|other financial institutions|||
|Loans from banks and other financial institutions|||
|Transactional financial liabilities|||
|Notes payable|||
|Accounts payable|96,552,910.78|181,751,142.48|
|Advances from customers|181,846,072.48|208,684,489.90|
|Financial assets sold for repurchase|||
|Handling charges and commissions payable|||
|Wages payable|9,041,583.98|17,065,382.28|
|Taxes payable|33,470,718.22|37,164,892.21|
|Interest payable|||
|Dividends payable|1,317,296.42|1,317,296.42|
|Other accounts payable|199,262,598.71|164,189,818.81|
|Reinsurance accounts payable|||
|Insurance deposit|||
|Acting trading securities|||

Full text of 2014 Q1 Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Item|Period-end balance|Period-beginning balance|
|Acting underwriting securities|||
|Non-current liabilities due within one year|||
|Other current liabilities|||
|Total current liabilities|572,491,180.59|680,173,022.10|
|Non-current liabilities:|||
|Long-term loans|||
|Bonds payable|||
|Long-term accounts payable|||
|Special payables|||
|Estimated liabilities|||
|Deferred income tax liabilities|17,909,197.77|18,196,441.90|
|Other non-current liabilities|593,514.51|762,246.19|
|Total non-current liabilities|18,502,712.28|18,958,688.09|
|Total liabilities|590,993,892.87|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|404,573,024.70|404,593,024.05|
|Less: Treasury shares|||
|Special reserve|||
|Surplus public reserve|102,912,835.67|102,912,835.67|
|General risk provision|||
|Retained profits|-19,630,903.72|-42,080,494.64|
|Translation difference of the financial statements in|||
|foreign currency|||
|Total owners' equity attributable to the parent company|1,272,653,966.65|1,250,224,375.08|
|Minority shareholders' equity|192,754,112.04|185,584,512.58|
|Total owners' equity (or shareholders' equity)|1,465,408,078.69|1,435,808,887.66|
|Total liabilities and owner's equity (or shareholders'|||
||2,056,401,971.56|2,134,940,597.85|
|equity)|||

Legal representative: Wang Li Chief financial officer: Liu Zhijun Person in charge of the accounting institution: Ying Huadong
Full text of 2014 Q1 Report of Shenzhen SEG Co., Ltd. 2. Balance Sheet of the Parent Company
Prepared by: Shenzhen SEG Co., Ltd.
Unit: RMB Yuan
||||
|-|-|-|
|Item|Period-end balance|Period-beginning balance|
|Current assets:|||
|Monetary capital|233,002,896.48|173,141,378.64|
|Trading financial assets|||
|Notes receivable|||
|Accounts receivable|80,000.00||
|Prepayments|42,431.80|142,310.00|
|Interest receivable|||
|Dividends receivable|||
|Other receivables|215,862,748.34|200,493,973.07|
|Inventory|||
|Non-current assets due within one year|||
|Other current assets|220,000,000.00|301,248,167.86|
|Total current assets|668,988,076.62|675,025,829.57|
|Non-current assets:|||
|Financial assets available for sale|||
|Held-to-maturity investment|||
|Long-term accounts receivable|||
|Long-term equity investments|405,362,913.00|407,601,729.10|
|Investment properties|303,104,961.79|305,731,220.77|
|Fixed assets|19,858,732.66|19,959,818.75|
|Under-construction projects|||
|Engineering materials|||
|Disposal of fixed assets|||
|Productive biological assets|||
|Oil & gas assets|||
|Intangible assets|369,126.65|401,813.18|
|Development expenses|||
|Goodwill|||
|Long-term expenses to be apportioned|4,492,464.37|4,025,337.44|
|Deferred income tax assets|5,911,941.36|5,992,016.37|
|Other non-current assets|||

Full text of 2014 Q1 Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Item|Period-end balance|Period-beginning balance|
|Total non-current assets|739,100,139.83|743,711,935.61|
|Total assets|1,408,088,216.45|1,418,737,765.18|
|Current liabilities:|||
|Short-term loans|||
|Transactional financial liabilities|||
|Notes payable|||
|Accounts payable|90,000.00|375,000.00|
|Advances from customers|53,384,507.16|76,806,434.67|
|Wages payable|2,686,509.31|7,727,646.55|
|Taxes payable|21,554,787.87|24,258,147.48|
|Interest payable|||
|Dividends payable|119,803.29|119,803.29|
|Other accounts payable|78,831,714.93|71,183,956.83|
|Non-current liabilities due within one year|||
|Other current liabilities|||
|Total current liabilities|156,667,322.56|180,470,988.82|
|Non-current liabilities:|||
|Long-term loans|||
|Bonds payable|||
|Long-term accounts payable|||
|Special payables|||
|Estimated liabilities|||
|Deferred income tax liabilities|||
|Other non-current liabilities|||
|Total non-current liabilities|||
|Total liabilities|156,667,322.56|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|||
|Special reserve|||
|Surplus public reserve|102,912,835.67|102,912,835.67|
|General risk provision|||
|Retained profits|-41,943,845.10|-55,097,962.63|

Full text of 2014 Q1 Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Item|Period-end balance|Period-beginning balance|
|Translation difference of the financial statements in|||
|foreign currency|||
|Total owners' equity (or shareholders' equity)|1,251,420,893.89|1,238,266,776.36|
|Total liabilities and owner's equity (or shareholders'|||
||1,408,088,216.45|1,418,737,765.18|
|equity)|||

Legal representative: Wang Li Chief financial officer: Liu Zhijun Person in charge of the accounting institution: Ying Huadong 3. Consolidated Income Statement
Prepared by: Shenzhen SEG Co., Ltd.
Unit: RMB Yuan
||||
|-|-|-|
|Item|Amount of the current period|Amount of the previous period|
|1. Total operating revenue|156,296,410.46|133,517,969.30|
|Include: Operating revenue|145,841,677.48|126,976,198.11|
|Interest income|||
|Earned premiums|10,437,899.17|6,303,044.92|
|Handling charge and commission income|16,833.81|238,726.27|
|2. Total operating cost|121,162,948.72|106,781,707.55|
|Include: Operating cost|107,920,992.72|93,553,445.30|
|Interest expenses|912,972.23||
|Handling charge and commission expenses|||
|Surrenders|||
|Net compensation pay-outs|||
|Net insurance deposit accrued|||
|Insurance dividends|||
|Reinsurance expenses|||
|Operating taxes and surcharges|6,288,053.02|5,495,128.07|
|Sales expenses|381,151.00|586,727.58|
|Administrative expenses|7,616,967.07|9,223,655.27|
|Financial expenses|-1,957,187.32|-2,192,428.52|
|Asset impairment loss||115,179.85|
|Add: Income from changes in fair value (Loss is|||
|marked with "-")|||
|Investment income (Loss is marked with "-")|5,202,783.84|5,769,732.16|

Full text of 2014 Q1 Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Item|Amount of the current period|Amount of the previous period|
|Include: Income from investment in associates|||
||-2,238,816.10|-1,014,925.94|
|and joint ventures|||
|Income from exchange (Loss is marked with "-")|||
|3. Operating profit (Loss is marked with "-")|40,336,245.58|32,505,993.91|
|Add: Non-operating revenue|378,109.51|919,996.92|
|Less: Non-operating expenses|103,735.57|719.94|
|Include: Loss from disposal of non-current assets|||
|4. Total profit (Total loss is marked with "-")|40,610,619.52|33,425,270.89|
|Less: Income tax expenses|10,981,390.41|9,110,315.06|
|5. Net profit (Net loss is marked with "-")|29,629,229.11|24,314,955.83|
|Include: Net profit of the purchased party realized|||
|before the merger|||
|Net profit attributable to shareholders of the parent|||
||22,449,590.92|20,488,550.91|
|company|||
|Gains and losses of minority shareholders|7,179,638.19|3,826,404.92|
|6. Earnings per share|--|--|
|(1) Basic earnings per share|0.0286|0.0261|
|(2) Diluted earnings per share|0.0286|0.0261|
|7. Other comprehensive income|-30,038.08|-71,454.23|
|8. Total comprehensive income|29,599,191.03|24,243,501.60|
|Total comprehensive income attributable to|||
||22,429,591.57|20,440,976.68|
|shareholders of the parent company|||
|Total comprehensive income attributable to minority|||
||7,169,599.46|3,802,524.92|
|shareholders|||

Legal representative: Wang Li Chief financial officer: Liu Zhijun Person in charge of the accounting institution: Ying Huadong 4. Income Statement of the Parent Company
Prepared by: Shenzhen SEG Co., Ltd.
Unit: RMB Yuan
||||
|-|-|-|
|Item|Amount of the current period|Amount of the previous period|
|1. Operating revenue|34,948,805.08|36,761,658.79|
|Less: Operating cost|19,328,224.88|15,708,552.12|
|Operating taxes and surcharges|1,949,533.93|2,063,583.85|
|Sales expenses|||
|Administrative expenses|2,911,191.34|4,495,185.27|

Full text of 2014 Q1 Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Item|Amount of the current period|Amount of the previous period|
|Financial expenses|-4,467,780.55|-1,480,250.41|
|Asset impairment loss|||
|Add: Income from changes in fair value (Loss is|||
|marked with "-")|||
|Investment income (Loss is marked with "-")|3,062,605.83|4,064,498.55|
|Include: Income from investment in associates|||
||-2,238,816.10|-1,014,925.94|
|and joint ventures|||
|2. Operating profit (Loss is marked with "-")|18,290,241.31|20,039,086.51|
|Add: Non-operating income|5,124.10|83,320.00|
|Less: Non-operating expenses|10,270.00||
|Include: Loss from disposal of non-current|||
|assets|||
|3. Total profit (Total loss is marked with "-")|18,285,095.41|20,122,406.51|
|Less: Income tax expenses|5,130,977.88|5,284,333.11|
|4. Net profit (Net loss is marked with "-")|13,154,117.53|14,838,073.40|
|5. Earnings per share:|--|--|
|(1) Basic earnings per share||0|
|(2) Diluted earnings per share||0|
|6. Other comprehensive income||0.00|
|7. Total comprehensive income|13,154,117.53|14,838,073.40|

 Legal representative: Wang Li Chief financial officer: Liu Zhijun Person in charge of the accounting institution: Ying Huadong 5. Consolidated Cash Flow Statement
Prepared by: Shenzhen SEG Co., Ltd.
Unit: RMB Yuan
||||
|-|-|-|
|Item|Amount of the current period|Amount of the previous period|
|1. Cash flow from operating activities|||
|Cash received from sales of goods and rendering of|||
||469,413,208.88|116,765,324.27|
|services|||
|Net increase of customers' deposits and accounts due|||
|||0.00|
|to banks and other financial institutions|||
|Net increase of loans from the Central Bank||0.00|
|Net increase of loans from other financial|||
|||0.00|
|institutions|||
|Cash received from premiums of original insurance|||
|||0.00|
|contracts|||

Full text of 2014 Q1 Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Item|Amount of the current period|Amount of the previous period|
|Net cash received from reinsurance business||0.00|
|Net increase of deposit of the insured and investment||0.00|
|Net increase of income from disposal of transaction|||
|||0.00|
|financial assets|||
|Cash received from interest, handling charges, and|||
||13,197,482.98|8,241,020.99|
|commissions|||
|Net increase of loans from banks and other financial|||
|||0.00|
|institutions|||
|Net increase of redemption capital||0.00|
|Tax rebates received|3,563,641.53|0.00|
|Other cash received concerning operating activities|112,183,330.08|138,082,627.30|
|Subtotal of cash inflow from operating activities|598,357,663.47|263,088,972.56|
|Cash paid for goods purchased and services received|463,260,003.61|141,753,366.39|
|Net increase in loans and advances to customers|-29,550,762.00|5,698,024.66|
|Net increase of accounts due from the Central Bank|||
|||0.00|
|and other financial institutions|||
|Cash paid for compensation pay-outs of original|||
|||0.00|
|insurance contracts|||
|Cash paid for interest, handling charges, and|||
||237,331.00|0.00|
|commissions|||
|Cash paid as insurance dividends||0.00|
|Cash paid to and on behalf of employees|22,492,493.78|19,031,752.00|
|Cash paid for taxes and surcharges|38,018,451.62|27,602,715.62|
|Other cash paid concerning operating activities|103,796,552.39|148,131,797.31|
|Subtotal of cash outflow for operating activities|598,254,070.40|342,217,655.98|
|Net cash flow arising from operating activities|103,593.07|-79,128,683.42|
|2. Cash flow from investment activities|||
|Cash received from withdrawal of investment|609,900,000.00|594,820,000.00|
|Cash received from investment income|7,441,599.94|6,784,658.10|
|Net cash received from disposal of fixed assets,|||
|||0.00|
|intangible assets and other long-term assets|||
|Net cash received from disposal of subsidiaries and|||
|||0.00|
|other business units|||
|Other cash received concerning investment activities||0.00|
|Subtotal of cash inflow from investment activities|617,341,599.94|601,604,658.10|
|Cash paid for purchase and construction of fixed|3,729,911.54|3,418,600.09|

Full text of 2014 Q1 Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Item|Amount of the current period|Amount of the previous period|
|assets, intangible assets, and other long-term assets|||
|Cash paid for investment|553,700,000.00|514,480,070.26|
|Net increase of mortgage loans||0.00|
|Net cash paid for acquisition of subsidiaries and|||
|||0.00|
|other operating units|||
|Other cash paid concerning operating activities||0.00|
|Subtotal of cash outflow for investment activities|557,429,911.54|517,898,670.35|
|Net cash flow arising from investment activities|59,911,688.40|83,705,987.75|
|3. Cash flow from financing activities:|||
|Cash received from attraction of investment||0.00|
|Include: Cash received by subsidiaries from|||
|||0.00|
|investment of minority shareholders|||
|Cash received from borrowings|31,000,000.00|20,000,000.00|
|Cash received from issuance of bonds||0.00|
|Other cash received concerning financing activities||0.00|
|Subtotal of cash inflow from financing activities|31,000,000.00|20,000,000.00|
|Cash paid for repayment of debts|45,000,000.00|19,000,000.00|
|Cash paid for distribution of dividends and profit or|||
||1,324,064.01|306,208.89|
|repayment of interest|||
|Include: Dividends and profit paid by subsidiaries to|||
|||0.00|
|minority shareholders|||
|Other cash paid concerning financing activities||0.00|
|Subtotal of cash outflow for financing activities|46,324,064.01|19,306,208.89|
|Net cash flow arising from financing activities|-15,324,064.01|693,791.11|
|4. Influence of exchange rate fluctuation on cash and cash|||
|||0.00|
|equivalents|||
|5. Net Increase of cash and cash equivalents|44,691,217.46|5,271,095.44|
|Plus: Period-beginning balance of cash and cash|||
||335,593,493.81|453,132,467.18|
|equivalents|||
|6. Period-end balance of cash and cash equivalents|380,284,711.27|458,403,562.62|

 Legal representative: Wang Li Chief financial officer: Liu Zhijun Person in charge of the accounting institution: Ying Huadong 6. Cash Flow Statement of the Parent Company
Prepared by: Shenzhen SEG Co., Ltd.
Unit: RMB Yuan
Full text of 2014 Q1 Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Item|Amount of the current period|Amount of the previous period|
|1. Cash flow from operating activities|||
|Cash received from sales of goods and rendering of|||
||23,517,116.05|20,497,611.20|
|services|||
|Tax rebates received||0.00|
|Other cash received concerning operating activities|51,124,214.57|38,014,290.84|
|Subtotal of cash inflow from operating activities|74,641,330.62|58,511,902.04|
|Cash paid for goods purchased and services received|5,127,754.65|6,949,147.89|
|Cash paid to and on behalf of employees|9,607,292.80|7,873,492.37|
|Cash paid for taxes and surcharges|27,217,282.67|19,491,165.63|
|Other cash paid concerning operating activities|57,766,967.59|136,565,360.84|
|Subtotal of cash outflow for operating activities|99,719,297.71|170,879,166.73|
|Net cash flow arising from operating activities|-25,077,967.09|-112,367,264.69|
|2. Cash flow from investment activities|||
|Cash received from withdrawal of investment|523,000,000.00|529,360,000.00|
|Cash received from investment income|5,301,421.93|5,079,424.49|
|Net cash received from disposal of fixed assets,|||
|||0.00|
|intangible assets, and other long-term assets|||
|Net cash received from disposal of subsidiaries and|||
|||0.00|
|other business units|||
|Other cash received concerning investment activities||0.00|
|Subtotal of cash inflow from investment activities|528,301,421.93|534,439,424.49|
|Cash paid for purchase and construction of fixed|||
||361,937.00|68,818.00|
|assets, intangible assets, and other long-term assets|||
|Cash paid for investment|443,000,000.00|449,965,751.44|
|Net cash paid for acquisition of subsidiaries and|||
|||0.00|
|other operating units|||
|Other cash paid concerning operating activities||0.00|
|Subtotal of cash outflow for investment activities|443,361,937.00|450,034,569.44|
|Net cash flow arising from investment activities|84,939,484.93|84,404,855.05|
|3. Cash flow from financing activities:|||
|Cash received from attraction of investment||0.00|
|Cash received from borrowings||0.00|
|Cash received from issuance of bonds||0.00|
|Other cash received concerning financing activities||0.00|
|Subtotal of cash inflow from financing activities||0.00|

Full text of 2014 Q1 Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Item|Amount of the current period|Amount of the previous period|
|Cash paid for repayment of debts||0.00|
|Cash paid for distribution of dividends and profit or|||
|||0.00|
|repayment of interest|||
|Other cash paid concerning financing activities||0.00|
|Subtotal of cash outflow for financing activities||0.00|
|Net cash flow arising from financing activities||0.00|
|4. Influence of exchange rate fluctuation on cash and cash|||
|||0.00|
|equivalents|||
|5. Net Increase of cash and cash equivalents|59,861,517.84|-27,962,409.64|
|Plus: Period-beginning balance of cash and cash|||
||173,141,378.64|296,491,241.42|
|equivalents|||
|6 Period-end balance of cash and cash equivalents|233,002,896.48|268,528,831.78|

 Legal representative: Wang Li Chief financial officer: Liu Zhijun Person in charge of the accounting institution: Ying Huadong II. Audit Report
Has the Q1 report been audited?
□ Yes√ No
The Q1 report of the Company has not been audited.