Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. Stock code: 000058 200058 Stock abbreviation: SHENSEG、SHEN SEG B Notice No.: 2015-046 Shenzhen SEG Co., Ltd.
2015 Semi-Annual Report
August 2015
Full-text of 2015 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 semi-annual report is authentic, accurate and complete, and it has no false records, misleading statements or major omissions, and that they commit to the individual and joint legal liabilities.
All the directors have attended this board meeting reviewing the semi-annual report.
Shenzhen SEG Co., Ltd. plans not to distribute cash dividends and bonus shares or convert accumulated funds into share capital.
Chairman of the Board Wang Li, 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 annual report are true, accurate and complete.
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. CONTENTS
Chapter 1 Important Notice, Contents, and Definitions ................................................................ 2 Chapter 2 Company Profile .............................................................................................................. 6 Chapter 3 Summary of Accounting Data and Financial Indexes .................................................. 8 Chapter 4 Report of The Board of Directors ................................................................................. 10 Chapter 5 Important Matters ......................................................................................................... 35 Chapter 6 Changes in Share Capital and Information on Shareholders .................................... 50 Chapter 7 Preferred Shares ............................................................................................................ 56 Chapter 8 Information on Directors, Supervisors, Senior Executives ........................................ 56 Chapter 9 Financial Report............................................................................................................. 57 Chapter 10 DOCUMENTS AVAILABLE FOR REFERENCE ................................................. 176
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. Definitions
||||
|-|-|-|
|Definition|Refers to|Description|
|The Company, Company, and Shenzhen SEG|Refers to|Shenzhen SEG Co., Ltd.|
|Shenzhen SEG Group Co., Ltd.|Refers to|Shenzhen SEG Group Co., Ltd.|
|Subsidiary|Refers to|Subsidiary SEG Electronics Market of Shenzhen SEG 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 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 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 Co., Ltd.|
|Shunde SEG|Refers to|Shunde SEG Electronics Market Management Co., Ltd.|
|Wuxi SEG|Refers to|Wuxi SEG Electronics Market Co., Ltd.|
|Nanning SEG|Refers to|Nanning SEG Digital Plaza Management Co., Ltd.|
|Suzhou SEG Digital|Refers to|Suzhou SEG Digital Plaza Management Co., Ltd.|
|Zhengzhou SEG|Refers to|Zhengzhou SEG Digital Plaza Management Co., Ltd.|
|Xi'an Fengdong SEG|Refers to|Xi'an Fengdong New Town SEG Times Square Properties Co., Ltd.|
|Nantong SEG Operation Company|Refers to|Nantong SEG Commercial Operation Management Co., Ltd.|
|||An integrated informatization platform for market management with the|
|SEG Universal|Refers to|functions of access control management, micro-payment, query system|
|||and information distribution.|
|||The internal management system developed by this Company to focus|
|||on the business of electronics market, and it is the software platform to|
|MIS System|Refers to||
|||deal with the business in the management of berth position, lease|
|||contract, customer information, site operation and management, and|

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Definition|Refers to|Description|
|||electronic office and so on in the SEG electronics markets everywhere,|
|||as well as the information platform for this Company to monitor the|
|||relevant business condition of various electronics markets and data query|
|||and analysis.|
|Youhao Group|Refers to|Xinjiang Youhao (Group) Co., Ltd.|
|||Shenzhen Securities Regulatory Bureau of China Securities Regulatory|
|Shenzhen Securities Regulatory Bureau|Refers to||
|||Commission|
|||State-owned Assets Supervision and Administration Commission of|
|Shenzhen SASAC|Refers to||
|||Shenzhen Municipality|
|Shenzhen United Exchange|Refers to|Shenzhen United Property and Share Rights Exchange|
|The Articles of Association|Refers to|The Articles of Association of Shenzhen SEG Co., Ltd.|
|Unless otherwise specified, the amount|||
||Refers to|Amount in Renminbi Yuan|
|referred to in the report|||

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. Chapter 2 Company Profile
I. Company Profile
|||||
|-|-|-|-|
|Stock abbreviation|SHEN SEG|Stock code|000058|
|Changed stock abbreviation (if||||
||Shenzhen SEG Co., Ltd.|||
|any)||||
|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)||||
|Company name abbreviations||||
||None|||
|in English (if any)||||
|Legal representative|Wang Li|||

II. Contact Information
||||
|-|-|-|
||Secretary of the Board of Directors|Securities affairs representative|
|Name|Zheng Dan|Zhang Xin|
||31/F, Tower A, the Stars Plaza, Huaqiang|31/F, Tower A, the Stars Plaza, 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|

III. Other Information
1. Contact information of the company
Whether the registered address, office address, 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, zip code, website, and e-mail address of the company in the report period, please refer to the 2014 Annual Report.
2. The place where the information is disclosed and prepared
Whether the information disclosure and filing site are changed in the report period?
□ Applicable√ Not applicable
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. The newspaper specified by the Company to disclose information, the website specified by CSRC to publish the semi-annual report and the filing site for the semi-annual report are not changed in the report period. See the 2014 Annual Report for detailed
information.
3. Change of the registration information
Whether the registration information is changed in the report period?
□ Applicable√ Not applicable
The registration date and locale, license registration number of enterprise legal person, tax registration number and organization code are not changed in the report period. See the 2014 Annual Report for detailed information.
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. Chapter 3 Summary of Accounting Data and Financial Indexes I. Main Accounting Data and Financial Indexes
Are retrospective adjustments made to previous financial statements due to accounting policy changes or accounting errors?□ Yes√ No
|||||
|-|-|-|-|
||Amount of the reportperiod|Amount of the same periodof the previous year|Year-on-year|
||||increase/decrease|
|Operating revenue (Yuan)|374,555,135.61|316,141,381.01|18.48%|
|Net profit attributable to shareholders of|34,906,133.61|37,645,842.28||
||||-7.28%|
|the listed company (Yuan)||||
|Net profit attributable to shareholders of|34,698,254.31|36,738,936.70||
|the listed company after deduction of|||-5.55%|
|non-recurring gains and losses (Yuan)||||
|Net cash flow arising from operating|-98,587,833.62|-104,382,196.59||
|activities (Yuan)||||
|Basic EPS (Yuan/Share)|0.0445|0.0480|-7.29%|
|Diluted EPS (Yuan/Share)|0.0445|0.0480|-7.29%|
|Weighted average ROE|2.55%|2.97%|-0.42%|
||Amount at end of the reportperiod|Amount at end of theprevious year|Year-on-year|
||||increase/decrease|
|Total assets (Yuan)|2,495,946,288.44|2,659,717,718.28|-6.16%|
|Net assets attributable to shareholders of|1,435,903,974.96|1,298,970,719.85||
||||10.54%|
|the listed company (Yuan)||||

II. Differences in Accounting Data under Chinese and Overseas Accounting Standards
1. Differences in net profits and net assets reported in the financial statements 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 difference in the financial report disclosed based on both the international and the Chinese accounting standards.
2. Differences in net profits and net assets reported in the financial statements 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 difference in the financial report disclosed based on both the
international and the Chinese accounting standards.
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. III. Items and amount of non-recurring gains and losses:
√ Applicable□ Not applicable
Unit: Yuan
||||
|-|-|-|
|Item|Amount|Remarks|
|Gains and losses on disposal of non-current assets (including the|-177,731.11|Disposal loss of fixed assets|
|write-off of assets depreciation reserves)|||
||223,828.12|Mainly because the Company hasreceived the load interest subsidyfrom Shenzhen Futian DistrictEconomic Promotion Bureau and thefinancial support for SEGE-commerce trade platform fromShenzhen Economic and Trade andInformation Technology Commission.|
|Government subsidies recorded into current gains and losses|||
|(except those closely related with corporate business and enjoyed|||
|according to national standards or certain quota)|||
|Transferred-back impairment provision for accounts receivable,|400,000.00||
|for which separate impairment tests are carried out|||
|Other non-operating income and expenses except the|-215,906.84|Liquidated damages were paid totenants.|
|above-mentioned items|||
|Less: Amount of affected income tax|35,945.98||
|Amount of influence of minority shareholders’ equity (after|-13,635.11||
|tax)|||
|Total|207,879.30|--|

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 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 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. Chapter 4 Report of The Board of Directors
I. Overview
In the first half of the year 2015, the domestic and international situation of economy confronted by our country became more complex and severe, the pressure from economic downstream became increasingly heavy, multiple difficulty and challenge multiply twisted, and the physical economy remained stable at low level but was weak for recovery. Facing the increasingly severe economic situation and furious market competition, in the report period, according to the operating policy of “transformation, innovation and development”, and through adopting a series of effective measures including organizational structure reform, implementing project system, and resources to be distributed to the first-line business preferentially, the Company made continuous innovation in management tool, endeavored to enhance the level of management and operation, and ceaselessly strengthened the core business competence, so that the major economic indicators of the Company and each investment company increase over the previous year.
In the report period, the Company achieved a total operating income of 425,220,000 Yuan, a26.10% increase over the previous year, mainly due to: (1) substantial increase in the income of the agent purchasing and channel retailing terminal business; (2) substantial increase in the income of the microcredit; and (3) year-on-year income of the Suzhou SEG Digital and Xingsha store of Mellow Orange Hotel.
In the report period, the Company achieved a total profit of 72,190,000 Yuan, a2.45% increase over the previous year, mainly due to the increase in the income and profit of the microcredit business.
II. Analysis of Main Business
Main business of the Company includes development and operation of specialized electronics market and supporting projects, property lease service, IT product channel retail terminal service, e-commerce and value-added microcredit service.
(I) Operation of the electronics markets
In the first half year, facing the intense market competition and the impact from new-type commercial pattern, the Company actively explored the new development pattern, constantly enhanced the operating capability and innovation capability of electronics market mainly operated, built and optimized the operating mode of “physical store+ e-commerce+ channel” and duplicated this mode in other SEG electronics markets outside Shenzhen, at the same time, the Company strengthened the building of physical channel and continued to cultivate Tmall of SEG electronics market. In the field of selecting products, the Company achieved precision and novelty, as well as lowered down the costs.
The Company seizes the opportunity that Shenzhen Municipal Government intends to build Huaqiang North as the maker center. Based on its own advantages, the Company established the SEG International Maker Product Exhibition and Promotion Center. The Company intends to attract high-quality and innovative products through SEG electronics market, build vertical O2O channel with segmentation, take smart hardware andmaker’s products as the core concept, fully exert the capability of distributing resources, link the upstream and downstream channels of market, and finally for theCompany’s own platform. It will be beneficial to attract consumers to
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. market, achieve the diversified competition with other professional markets, and to promote theCompany’s business transformation and upgrading.
In the report period, the Company's electronics market business achieved a total operating income of 158,490,000 Yuan, a decrease of0.47% over the previous year and a total profit of 44,790,000 Yuan, a decrease of11.69% over the previous year, mainly due to the decrease of the rental income of Nanning SEG market and the earlier-stage fees incurred by Suzhou SEG Digital.
(II) Business of property leasing service
In the report period, the property rental business of the headquarters and the Company's subsidiary SEG Baohua continues to increase steadily.
With the continuous depression in the property rental industry in the entire Shenzhen Huaqiang North area, the vacancy rate of the surrounding offices continues to increase, and the rental level maintains the status quo or has a slight decline. SEG Baohua has overcome the difficulties by improving service levels and by taking effective management measures, such as grasping the golden opportunity of Huaqiang North Maker Center and so on.,SEG Baohua actively explores new performance growth points and stabilizes the occupancy rate at99% or higher in the report period. Meanwhile, SEG Baohua remains the rental at the highest level among the surrounding offices in Huaqiang North.
In the report period, the Company's property rental service yielded a total operation income of 37,380,000 Yuan, a year-on-year increase of6.98%, and a total profit of 8,760,000 Yuan, a year-on-year increase of46.97%.
(III) Business of the channel retailing terminal of IT products
In the report period, the overall business in the channel retailing terminal of IT products of SEG Industry, the wholly owned subsidiary of the Company, is in good conditions, and each economic indicator achieved a dramatic increase compared with that of the previous year. In the first half of 2015, SEG Industry has formally signed a memorandum of cooperation documents with Apple and officially obtained the authorized Apple distributor for big customers in the China Southern Region. In mid-June, SEG Industry has achieved good results in the first App recommended council for big customers held in Shenzhen after the cooperation.
In the report period, the Company's channel business achieved a total operating income of 54,340,000 Yuan, a51.62% increase over the previous year, mainly due to the increase of the mobile phone distribution and communications distribution business over the previous year.
(IV) E-Commerce
In the report period, the SEG E-commerce achieved a total operating income of 14,830,000 Yuan, a36.54% decrease over the previous year, and the total profit decreased over the previous year, mainly due to the decrease of the supply chain business in the current report period.
Till the date of disclosure of this report, the Company's board had approved the Proposal for Transferring51% of the SEG E-commerce Share Held by Shenzhen SEG. At present, the Company has submitted the application for the equity transfer issue to the related departments, and the third-party organization is orderly implementing the auditing and evaluation. It is expected to complete the share transfer work in the third quarter. The Company will timely disclose the related information according to the specific progress.
(V) Business of small loan
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. The SEG Microcredit business runs well in the report period, and the indicators are increased considerably on year-on-year basis. At present, SEG Microcredit has reached strategic cooperation with major commercial tenants of SEG Electronics Market. Based on the warehouse receipt pledge mode, SEG Microcredit provides the agent purchasing business, therefore relieving the cash flow pressure of the commercial tenants and achieving a win-win situation.
In the report period, SEG Microcredit achieved a total operating income of 48,060,000 Yuan, a127.99% increase over the previous year, a total profit of 16,380,000 Yuan, a27.37% increase over the previous year, mainly due to the increase of the loan scale and loan interests over the previous year.
（IV） Hotel Business
Up to the report period, SEG Baohua, the subsidiary controlled by the Company, invested in three chain business hotels in total, including Mellow Orange Hotel Changsha Branch, Mellow Orange Hotel Xingsha Branch and Mellow Orange HotelBao’an Branch, mainly dealing in the business of accommodation, catering and conference service and so on.
In the report period, the Company's hotel business achieved a total operating income of 12,900,000 Yuan, a24.77% increase over the previous year, and a total profit of 1,963,000 Yuan, a0.39% increase over the previous year, mainly because the increase of Mellow Orange Hotel Xingsha Branch is newly added in, and the increase of hotel quantity makes that of income and profit.
Year-on-year changes of the major financial data
Unit: Yuan
||||||
|-|-|-|-|-|
||Amount of the reportperiod|The same period of theprevious year|Year-on-yearincrease/decrease (%)||
|||||Reason for change|
||374,555,135.61|316,141,381.01|18.48%|The trade business is|
|||||increased over the|
|Operating income|||||
|||||previous year in the|
|||||report period.|
||317,303,931.44|248,349,208.37|27.77%|The trade business is|
|||||increased over the|
|Operating cost|||||
|||||previous year in the|
|||||report period.|
||941,405.12|1,002,320.62|-6.08%|The store expenses of the|
|Sale expenses||||trade business decreased|
|||||in the report period.|
|Management expenses|16,004,563.26|15,637,568.42|2.35%||
||843,057.23|388,862.46|116.80%|The short-term financing|
|||||bonds and bank|
|||||borrowings are increased|
|Financial cost||||over the previous year,|
|||||and the accrued loan|
|||||interest is increased|
|||||accordingly.|

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||||
|-|-|-|-|-|
||Amount of the reportperiod|The same period of theprevious year|Year-on-yearincrease/decrease (%)||
|||||Reason for change|
|Income tax|20,121,370.92|18,633,100.05|7.99%||
||0.00|759,513.21|-100.00%|No investment is put into|
|||||the research and|
|Research spending||||development of the SEG|
|||||Universal software in the|
|||||report period.|
|Net cash flow from|-98,587,833.62|-104,382,196.59|||
|operating activities|||||
||76,375,411.91|-30,287,254.56||The bank financial|
|||||investment in the report|
|Net cash flow from|||||
|||||period was reduced over|
|investing activities|||||
|||||the same period of last|
|||||year.|
||-204,572,249.79|428,415,242.53|-147.75%|The Company has paid|
|||||back the mature|
|Net cash flow arising||||short-term financing|
|from financing activities||||bonds and bank|
|||||borrowings in the report|
|||||period.|
||-226,784,670.23|293,745,798.77|-177.20%|The comprehensive|
|||||influence exerted by the|
|Net increase in cash and||||cash flow of the|
|cash equivalents||||activities above caused|
|||||the increase in the|
|||||project.|

Major changes occur in the profit structure or the profit sources of the Company in the report period.
□ Applicable√ Not applicable
No major changes occur in the profit structure or the profit sources of the Company in the report period.
The prospectus, fund-raising notes, and asset restructuring reports of the Company disclose the future development and plans proceeding in the report period.
□ Applicable√ Not applicable
The prospectus, fund-raising notes, and asset restructuring reports of the Company do not disclose the future development and plans proceeding in the report period.
(3) The company reviews and summarizes how the previously disclosed operation plan is progressed in the report period.
In the first half of 2015, according to the Company's "transformation, innovation, and development" guideline for
management, the Company actively develops new business while maintaining the steady development of the
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. existing business. Driven by the capital and resources, the Company creates a multi-channel profit model and mainly implements the following work in the report period:
(I) Organizational reformation
Given the changes in the external business environment and customer needs, the Company is required to accelerate the pace of business transformation and innovation, deepen the customer value, build a multi-channel profit model, and integrate various resources, to build a capital-driven and resource-driven business-oriented development model. For this purpose, the Company has adjusted the original organizational structure in the first half of 2015 and introduced the project system. Till now, the Company has set up dozens of project teams. The new organizational structure adopts a flexible organizational structure and matrix management. It functions in a "fixed and flexible" combined mode. This organizational structure promotes the Company to rapidly and flexibly respond to the market, technical, and user changes. It helps the Company to efficiently integrate the resources and improve management decision-making efficiency.
In the first half of 2015, the Company has completed the organizational structure adjustment, work transfer in new departments, and department-level organizational performance assessment principles, according to the plan. The newly introduced project system is implemented orderly. Each project team functions in accordance with the plans.
(II) Actively developing new markets and exploring new service model of the electronics market
In the current environment, the Company uses the asset-light model to explore new markets. In the first half of 2015, the Company has been completed the signing of the Tangshan SEG and Nanchang SEG entrust management projects.
Faced with the impact of increasingly severe competition in the market and shock of new business model, led by the Internet, the Company has continued to research and try the new models of the electronics market. The Company actively develops and attempts theInternet+ business development model by taking advantage of the entity resources in the national market chains and ensuring smooth operation of the stock market.
(III) Orderly promoting the commercial real estate project
The Nantong SEG Times Square project has obtained the sales license for three towers in the late March 2015. The permitted total construction area for pre-sale is 29,911.11 square meters, mainly for SOHO and LOFT office area.
To improve the attractiveness and competitiveness of the entire project, the Company is currently planning to build China's first animation industry entrepreneurs and makers base, together with Nantong municipal government, Gangzha district government, Kungfu Animation company, venture capital institutions, and universities and colleges. On June 18, the Nantong SEG Times Square project was officially received the "Nantong Animation Industry Base" award. Meanwhile, three animation-related companies had signed the settlement agreements with the Company. In the future, it is expected to have dozens of animation companies and auxiliary business companies settled in Nantong SEG Times Square. To provide comprehensive supporting facilities and living and office areas for the animation industry practitioners in the base, the loft product with 5.4-meter storey height is temporarily suspended for sales.
Nantong SEG Times Square is expected to become the animation industry base in Nantong. By means of integrating the upstream and downstream resources in the animation industry and gradually developing the Nantong animation industry innovation park, Nantong SEG Times Square integrates the technology, experience
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. and business investment themes and intends to build an integrated business complex. Meanwhile, the international animation museum is expected to become the first batch of well-known museum of international animation brands in China.
(IV) Actively researching the new projects
1. To promote the transformation and upgrading of the Company's main industry and extension to the upstream of the industry chain, the Company has established a strategic cooperation partnership with Dongguan EONTEC company (hereinafter referred to as EONTEC), making use of own advantages in technology research and resources. The cooperation intends to promote the development and application in the consumer electronics and related fields of new materials such as liquid metal. Both parties signed the Strategic Cooperation Framework Agreement of EONTEC and Shenzhen SEG on May 27, 2015.
2. Establishing the SEG International Maker Product Exhibition and Promotion Center
In the report period, the Company seizes the opportunity that Shenzhen Municipal Government intends to build Huaqiang North as the maker center and therefore sets up a project team. The project team has researched the feasibility of building the SEG International Maker Product Exhibition and Promotion Center. The SEG International Maker Product Exhibition and Promotion Center will set up field service areas, provide appropriate space, and introduce resource parties or partners to provide resource and service support for the makers; give advice and suggestions to the pilot production, marketing, planning and packaging, and brand development of the makers' products; function as a maker brand incubator; and build China's largest intelligent hardware-based, international, and never-ending promotion platform to exhibit online and offline products.
Till the date of disclosure of this report, the Company's board had approved the Proposal for Setting up the SEG International Maker Product Exhibition and Promotion Center, and the Company has established the Shenzhen SEG Maker Product Collection Company and provide financial support services for the promotion center by means of setting venture capital funds.
III. Constitutes of Main Business
Unit: Yuan
||||||||
|-|-|-|-|-|-|-|
||Operatingincome|Operating cost|Gross Profit Rate|Year-on-year||Year-on-year|
||||||Year-on-year||
|||||increase/decrease||increase/decrease|
||||||increase/decrease||
|||||of operating||of gross profit|
||||||of operating cost||
|||||income||rate|
|Classified by industry|||||||
|Electronics|195,872,817.87|143,745,324.31|26.61%||||
|markets and|||||||
|||||0.88%|9.21%|-5.60%|
|property lease|||||||
|business|||||||
|Trade|153,550,908.27|150,697,647.62|1.86%|73.99%|73.31%|0.39%|
|Finance|48,064,462.25|3,300,242.35|93.13%|128.06%|64.30%|2.66%|
|Classified by product|||||||
|Not applicable|||||||
|Region|||||||

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||||||
|-|-|-|-|-|-|-|
|||||Year-on-year||Year-on-year|
||||||Year-on-year||
||Operating|||increase/decrease||increase/decrease|
|||Operating cost|Gross Profit Rate||increase/decrease||
||income|||of operating||of gross profit|
||||||of operating cost||
|||||income||rate|
|Shenzhen|321,511,517.45|223,229,790.02|30.57%|35.47%|34.34%|0.58%|
|Xi’an|29,443,257.17|20,713,438.12|29.65%|7.93%|7.17%|0.50%|
|Su Zhou|34,087,416.94|32,359,314.25|5.07%|23.46%|43.68%|-13.36%|
|Changsha|17,940,235.52|15,375,226.87|14.30%|21.75%|24.67%|-2.01%|
|Nanjing|16,104,715.99|16,513,882.66|-2.54%|-26.50%|-19.32%|-9.13%|
|Foshan|1,126,574.84|1,006,893.56|10.62%|0.27%|-2.49%|2.53%|
|Wuxi|3,547,872.49|2,882,602.37|18.75%|110.66%|40.24%|40.79%|
|Nanning|1,457,463.69|5,222,783.59|-258.35%|-73.68%|17.50%|-278.08%|
|Nantong|0|0|0|0|0|0|

 IV. Analysis of the Core Competitiveness
The Company has formed its major business segments, including the development and operation of professional electronics market and auxiliary projects, property lease service, channel retail terminal of IT products, E-commerce, and small loan.
The Company directly operates Shenzhen SEG Electronics Market, which has taken a leading position in the industry and is the founder of the professional electronics market operation model in China. The Company has won various honorary titles such as "China Five-star Electronics Market", "Most Influential Professional Market in Shenzhen in 30 years", and "China Influence Company".
Up to now, the Company has operated nearly 30 professional electronics markets in China in direct operation, joint operation, and entrusted operation modes. The electronics market covers the Pearl River Delta and Yangtze River Delta, with a radiation to the entire China. SEG Electronics Market has successfully combined IT complex self-construction, leasing and trusted management, combined market service and value-added financial service, and combined professional market, SEG factory store and distribution channels. SEG Electronics Market stood out as the largest specialized electronics markets in China and even in Asia covering electronic components, IT products, and communications products and has great brand influence at home and abroad.
Confronting increasingly severe market competition environment and under the impact from new-type commercial pattern represented by Internet, the Company takes electronics market business and “O2O” e-commerce as the entry point, and starts with the three aspects including e-commerce platform building, exploration of whole-sale channel, and sales in physical store, so to implement the combined-type business pattern of “physical store+ e-commerce+ channel”; at the same time, based on SEG MIS system and SEG Tone and relying on “PC+ mobile terminal”, the Company builds up and integrates the platform to share resources between market tenants, suppliers and purchasers and consumers and to achieve the interaction between on-line and off-line and the linkage of resources in markets nationwide.
Under the time background of “public starting-up and mass innovation”, the Company fully takes advantage of
locating in Huaqiang North area and the distributing center of the electronics product industry such as the
electronics components. Relying on the rich experience accumulated in 27 years and the industry position, and
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. through the establishment of SEG International Maker Product Exhibition and Promotion Center, the Company formsSEG’s new platform value, at the same time, also provides SEGmakers’ ecosphere with the channel to demonstrate and promote their products. The Company will utilize its own unique advantages in locality, market, brand, resources and channel to deeply explore and comprehensively satisfy themakers’ demand, push the capitalization and industrialization ofmakers’ products and results, stimulate the innovative vitality of physical store, ceaselessly extend and enrich the business value chain, and finally to promote theCompany’s transformation and upgrading in business.
V. Analysis of the Investment Situation
1. External equity investment
(1) External investment
√ Applicable□ Not applicable
||||
|-|-|-|
|Investment of the Company|||
|Investment in the report period (RMBYuan)|Investment over the same period of last|Increase/decrease (%)|
||year (RMB Yuan)||
|126,000,000.00|83,185,191.97|51.47%|
|Information about the invested companies|||
|Company name||Equity ratio of listed company in investedcompany|
||Main business||
|Nantong SEG Times Square DevelopmentCo., Ltd.|Development and operation of real estate,|100.00%|
||lease and sales of self-owned house,||
||property management, and sales of||
||electronic products||

(2) Equity of the financing enterprises held by the company
□ Applicable√ Not applicable
The Company does not hold the equity of the financing enterprises within the report period.
(3) Security investment
√ Applicable□ Not applicable
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||Stockcode|Short|Initialinvestment cost(Yuan)|||Shares heldat periodend|Share-holdingproportion atperiod end(%)|Ending bookvalue||||
|||||Shares held|Initial||||Gains and||Source|
|Stock||form of||||||||Accounting||
|||||at period|shareholding||||losses in the||of|
|type||the||||||||item||
|||||beginning|percentage||||report period||shares|
|||security||||||||||
||600778||90,405.00|||60,683|0.04%|976,996.30||Financial||
|||Youhao|||||||||Initial|
|Share||||60,683|0.04%||||0.00|assets||
|||Group|||||||||share|
|||||||||||available||

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||for sale||
||000068||279,307,046.38|||201,345,033|||-4,342,943.63|Long-term|Initialshare|
|||Huakong||||||||||
|Share||||201,345,033|22.45%||20.00%|175,996,684.39||equity||
|||SEG||||||||||
|||||||||||investment||
|Total|||279,397,451.38|201,405,716|--|201,405,716|--|176,973,680.69|-4,342,943.63|--|--|

 (4) Equity of other listed companies held by the Company
□ Applicable√ Not applicable
The Company does not hold the equity of other listed companies within the report period.
2. Entrusted financing, investment of derived products, and entrusted loaning
(1) Entrusted financing
√ Applicable□ Not applicable
Unit: RMB ten thousand Yuan
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||Actual|
|||||||||Principal|||
|||||||||||loss and|
|||||Amount||||amount|||
|||Connected|||||Remuneration|||gain|
||Associated|||of||||returned|Projected||
|Name of trustee||transaction|Product Type||Start Date|End Date|confirmation|||amount|
||relationship|||entrusted||||in the|income||
|||or not|||||method|||in the|
|||||financing||||report|||
|||||||||||report|
|||||||||period|||
|||||||||||period|
||||CITIC-CP cash||December|January|||||
|China Citic Bank|N/A|No||3,000|||Float income|3,000|11|11|
||||management||22, 2014|13, 2015|||||
|Industrial and|||||||||||
||||||December|January 8,|||||
|Commercial Bank|N/A|No|ZST|240|||Float income|240|0.83|0.83|
||||||5, 2014|2015|||||
|of China|||||||||||
||||||July 4,|January 9,|||||
|Bank of China|N/A|No|AMZYJZT|600|||Float income|600|15.53|15.53|
||||||2014|2015|||||
|Shanghai Pudong|||||December|January|||||
||N/A|No|Liduoduo|3,000|||Float income|3,000|3.74|3.74|
|Development Bank|||||30, 2014|12, 2015|||||
|China Merchants|||||October|January|||||
||N/A|No|Dian Jin Gu Zhi Ying|500|||Float income|500|6.29|6.29|
|Bank|||||16, 2014|19, 2015|||||
||||||January 5,|January|||||
|Bank of China|N/A|No|GSRJYL01|300|||Float income|300|0.37|0.37|
||||||2015|21, 2015|||||
|Shanghai Pudong|||||December|January|||||
||N/A|No|Liduoduo|6,400|||Float income|6,400|29.46|29.46|
|Development Bank|||||23, 2014|22, 2015|||||
||||||January 5,|January|||||
|Bank of China|N/A|No|GSRJYL01|200|||Float income|200|0.34|0.34|
||||||2015|27, 2015|||||

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||Actual|
|||||||||Principal|||
|||||||||||loss and|
|||||Amount||||amount|||
|||Connected|||||Remuneration|||gain|
||Associated|||of||||returned|Projected||
|Name of trustee||transaction|Product Type||Start Date|End Date|confirmation|||amount|
||relationship|||entrusted||||in the|income||
|||or not|||||method|||in the|
|||||financing||||report|||
|||||||||||report|
|||||||||period|||
|||||||||||period|
||||||January 8,|January|||||
|Bank of China|N/A|No|GSRJYL01|100|||Float income|100|0.18|0.18|
||||||2015|28, 2015|||||
|Shanghai Pudong|||||December|January|||||
||N/A|No|Liduoduo|5,800|||Float income|5,800|26.7|26.7|
|Development Bank|||||30, 2014|29, 2015|||||
|Industrial and|||||||||||
||||Structured Deposit||December|February|||||
|Commercial Bank|N/A|No||650|||Float income|650|2.11|2.11|
||||Money||31, 2014|2, 2015|||||
|of China|||||||||||
||||||December|February|||||
|Bank of China|N/A|No|AMZYJZT|500|||Float income|500|2.84|2.84|
||||||30, 2014|5, 2015|||||
|Industrial and|||||||||||
||||||December|February|||||
|Commercial Bank|N/A|No|ZST|500|||Float income|500|3.53|3.53|
||||||15, 2014|12, 2015|||||
|of China|||||||||||
|Shanghai Pudong|||||January|February|||||
||N/A|No|Liduoduo|6,000|||Float income|6,000|27.62|27.62|
|Development Bank|||||16, 2015|15, 2015|||||
||||||November|February|||||
|Bank of China|N/A|No|AMZYJZT|500|||Float income|500|6.31|6.31|
||||||11, 2014|17, 2015|||||
|China Minsheng|||Extraordinary asset||August 25,|February|||||
||N/A|No||300|||Float income|300|7.83|7.83|
|Banking|||management||2014|26, 2015|||||
|China Minsheng|||Extraordinary asset||August 25,|February|||||
||N/A|No||300|||Float income|300|7.83|7.83|
|Banking|||management||2014|26, 2015|||||
|Shanghai Pudong|||||January|February|||||
||N/A|No|Liduoduo|6,460|||Float income|6,460|29.73|29.73|
|Development Bank|||||28, 2015|27, 2015|||||
|Shanghai Pudong|||||February|March 12,|||||
||N/A|No|Liduoduo 2301137335|300|||Float income|300|1.38|1.38|
|Development Bank|||||10, 2015|2015|||||
||||||March 20,|March 16,|||||
|Bank of China|N/A|No|AMZYPW|1,500|||Float income|1,500|83.08|83.08|
||||||2014|2015|||||
||||||||Guaranteed||||
||||||2 March|March 16,|||||
|Ping An Bank|N/A|No|AGT100002|3,000|||minimum|3,000|0.89|0.89|
||||||12, 2015|2015|||||
||||||||income||||
||||||||Guaranteed||||
||||||March 13,|March 16,|||||
|Ping An Bank|N/A|No|AGT100002|200|||minimum|200|0.04|0.04|
||||||2015|2015|||||
||||||||income||||
|Shanghai Pudong|||||February|March 17,|||||
||N/A|No|Liduoduo 2301137335|920|||Float income|920|4.23|4.23|
|Development Bank|||||15, 2015|2015|||||

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||Actual|
|||||||||Principal|||
|||||||||||loss and|
|||||Amount||||amount|||
|||Connected|||||Remuneration|||gain|
||Associated|||of||||returned|Projected||
|Name of trustee||transaction|Product Type||Start Date|End Date|confirmation|||amount|
||relationship|||entrusted||||in the|income||
|||or not|||||method|||in the|
|||||financing||||report|||
|||||||||||report|
|||||||||period|||
|||||||||||period|
|Shanghai Pudong|||||February|March 18,|||||
||N/A|No|Liduoduo 2301137335|1,000|||Float income|1,000|4.6|4.6|
|Development Bank|||||16, 2015|2015|||||
|Industrial and|||||||||||
||||||February|March 19,|||||
|Commercial Bank|N/A|No|WL35BBX|40|||Float income|40|0.13|0.13|
||||||13, 2015|2015|||||
|of China|||||||||||
|China Construction|||||February|March 19,|||||
||N/A|No|ZHQYBB|250|||Float income|250|1.01|1.01|
|Bank|||||15, 2015|2015|||||
|Shanghai Pudong|||||February|March 19,|||||
||N/A|No|Liduoduo 2301137335|6,030|||Float income|6,030|27.75|27.75|
|Development Bank|||||17, 2015|2015|||||
||||||February|March 23,|||||
|Bank of China|N/A|No|AMZYPWHQ15085|1,900|||Float income|1,900|9.02|9.02|
||||||16, 2015|2015|||||
||||||December|March 24,|||||
|Bank of China|N/A|No|AMZYJZT|300|||Float income|300|3.81|3.81|
||||||23, 2014|2015|||||
|Industrial and|||||||Guaranteed||||
||||||February|March 24,|||||
|Commercial Bank|N/A|No|WL35BBX|430|||minimum|430|1.48|1.48|
||||||17, 2015|2015|||||
|of China|||||||income||||
||||||March 18,|March 26,|||||
|Bank of China|N/A|No|GSRJYL01|300|||Float income|300|0.18|0.18|
||||||2015|2015|||||
||||||March 24,|March 26,|||||
|Bank of China|N/A|No|GSRJYL01|390|||Float income|390|0.06|0.06|
||||||2015|2015|||||
||||||||Guaranteed||||
||||||March 20,|March 31,|||||
|Ping An Bank|N/A|No|AGT100002|3,000|||minimum|3,000|2.22|2.22|
||||||2015|2015|||||
||||||||income||||
|Shanghai Pudong|||||March 3,|April 2,|||||
||N/A|No|Liduoduo 2301137335|3,890|||Float income|3,890|17.9|17.9|
|Development Bank|||||2015|2015|||||
||||||||Guaranteed||||
|China Merchants|||e+ enterprise regular||April 1,|April 9,|||||
||N/A|No||543|||minimum|543|0.01|0.01|
|Bank|||financing project||2015|2015|||||
||||||||income||||
||||||||Guaranteed||||
|China Merchants|||e+ enterprise regular||April 1,|April 9,|||||
||N/A|No||793|||minimum|793|0.02|0.02|
|Bank|||financing project||2015|2015|||||
||||||||income||||
|Industrial and|||||||Guaranteed||||
||||||February|April 10,|||||
|Commercial Bank|N/A|No|WL63BBX|1,000|||minimum|1,000|6.39|6.39|
||||||7, 2015|2015|||||
|of China|||||||income||||

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||Actual|
|||||||||Principal|||
|||||||||||loss and|
|||||Amount||||amount|||
|||Connected|||||Remuneration|||gain|
||Associated|||of||||returned|Projected||
|Name of trustee||transaction|Product Type||Start Date|End Date|confirmation|||amount|
||relationship|||entrusted||||in the|income||
|||or not|||||method|||in the|
|||||financing||||report|||
|||||||||||report|
|||||||||period|||
|||||||||||period|
||||||October|April 13,|||||
|Bank of China|N/A|No|AMZYJZT|400|||Float income|400|10|10|
||||||16, 2014|2015|||||
||||||March 9,|April 13,|||||
|Bank of China|N/A|No|AMZYJZT-B15061|250|||Float income|250|1.2|1.2|
||||||2015|2015|||||
||||||||Guaranteed||||
|China Merchants|||e+ enterprise regular||April 2,|April 14,|||||
||N/A|No||364|||minimum|364|0.02|0.02|
|Bank|||financing project||2015|2015|||||
||||||||income||||
|Shanghai Pudong|||||March 17,|April 16,|||||
||N/A|No|Liduoduo 2301137335|560|||Float income|560|2.58|2.58|
|Development Bank|||||2015|2015|||||
||||||March 24,|April 17,|||||
|Bank of China|N/A|No|GSRJYL01|100|||Float income|100|0.18|0.18|
||||||2015|2015|||||
||||CITIC-CP short-term||January|April 20,|||||
|China Citic Bank|N/A|No||20,000|||Float income|20,000|315.62|315.62|
||||financing||14, 2015|2015|||||
||||||March 24,|April 23,|||||
|Bank of China|N/A|No|GSRJYL01|110|||Float income|110|0.25|0.25|
||||||2015|2015|||||
||||||April 22,|April 23,|||||
|Bank of China|N/A|No|GSRJYL01|190|||Float income|190|0.01|0.01|
||||||2015|2015|||||
||||||March 27,|April 27,|||||
|Industrial Bank|N/A|No|37514031|2,800|||Float income|2,800|13.32|13.32|
||||||2015|2015|||||
||||||March 24,|April 28,|||||
|Bank of China|N/A|No|AMZYJZT-LPA15175|2,000|||Float income|2,000|9.49|9.49|
||||||2015|2015|||||
|China Construction|||||March 23,|April 29,|||||
||N/A|No|ZHQYBB|200|||Float income|200|0.89|0.89|
|Bank|||||2015|2015|||||
|Industrial and|||||||Guaranteed||||
||||||March 28,|May 1,|||||
|Commercial Bank|N/A|No|15JH013A|430|||minimum|430|1.8|1.8|
||||||2015|2015|||||
|of China|||||||income||||
||||||January 9,|May 5,|||||
|Bank of China|N/A|No|AMZYJZT|400|||Float income|400|6.61|6.61|
||||||2015|2015|||||
||||||April 2,|May 6,|||||
|Ping An Bank|N/A|No|AGT100002|400|||Float income|400|1.01|1.01|
||||||2015|2015|||||
||||||||Guaranteed||||
||||||April 10,|May 6,|||||
|Ping An Bank|N/A|No|AGT100002|1,300|||minimum|1,300|2.5|2.5|
||||||2015|2015|||||
||||||||income||||
|Ping An Bank|N/A|No|AGT100002|260|April 16,|May 6,|Guaranteed|260|0.38|0.38|

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||Actual|
|||||||||Principal|||
|||||||||||loss and|
|||||Amount||||amount|||
|||Connected|||||Remuneration|||gain|
||Associated|||of||||returned|Projected||
|Name of trustee||transaction|Product Type||Start Date|End Date|confirmation|||amount|
||relationship|||entrusted||||in the|income||
|||or not|||||method|||in the|
|||||financing||||report|||
|||||||||||report|
|||||||||period|||
|||||||||||period|
||||||2015|2015|minimum||||
||||||||income||||
||||||April 22,|May 7,|||||
|Bank of China|N/A|No|GSRJYL01|300|||Float income|300|0.35|0.35|
||||||2015|2015|||||
||||||February|May 8,|||||
|Bank of China|N/A|No|AMZYJZT|1,000|||Float income|1,000|12.6|12.6|
||||||5, 2015|2015|||||
||||||April 22,|May 11,|||||
|Bank of China|N/A|No|GSRJYL01|400|||Float income|400|0.58|0.58|
||||||2015|2015|||||
||||CITIC-CP cash||April 1,|May 12,|||||
|China Citic Bank|N/A|No||2,900|||Float income|2,900|17.55|17.55|
||||management No.3||2015|2015|||||
||||CITIC-CP cash||April 27,|May 12,|||||
|China Citic Bank|N/A|No||20,300|||Float income|20,300|46.11|46.11|
||||management No.3||2015|2015|||||
|China Minsheng|||||April 30,|May 13,|||||
||N/A|No|20150430|650|||Float income|650|1.22|1.22|
|Banking|||||2015|2015|||||
||||||||Guaranteed||||
||||||May 8,|May 13,|||||
|Ping An Bank|N/A|No|AGT100002|1,400|||minimum|1,400|0.52|0.52|
||||||2015|2015|||||
||||||||income||||
|China Minsheng|||||April 30,|May 28,|||||
||N/A|No|20150430|50|||Float income|50|0.19|0.19|
|Banking|||||2015|2015|||||
|China Minsheng|||||May 14,|May 28,|||||
||N/A|No|20150430|900|||Float income|900|1.69|1.69|
|Banking|||||2015|2015|||||
||||||April 27,|June 1,|||||
|Bank of China|N/A|No|AMZYJZT-B15116|300|||Float income|300|1.38|1.38|
||||||2015|2015|||||
||||||May 29,|June 2,|||||
|Bank of China|N/A|No|Ri Ji Yue Lei|100|||Float income|100|0.03|0.03|
||||||2015|2015|||||
||||||May 5,|June 9,|||||
|Bank of China|N/A|No|AMZYJZT-A15267|300|||Float income|300|1.38|1.38|
||||||2015|2015|||||
||||||May 29,|June 10,|||||
|Bank of China|N/A|No|Ri Ji Yue Lei|400|||Float income|400|0.37|0.37|
||||||2015|2015|||||
|China Minsheng|||Extraordinary asset||May 28,|June 10,|||||
||N/A|No||900|||Float income|900|1.64|1.64|
|Banking|||management||2015|2015|||||
||||||May 8,|June 12,|||||
|Bank of China|N/A|No|AMZYJZT-A15272|300|||Float income|300|1.35|1.35|
||||||2015|2015|||||
|Industrial and|N/A|No|WL63BBX|650|April 14,|June 15,|Guaranteed|650|4.66|4.66|

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||Actual|
|||||||||Principal|||
|||||||||||loss and|
|||||Amount||||amount|||
|||Connected|||||Remuneration|||gain|
||Associated|||of||||returned|Projected||
|Name of trustee||transaction|Product Type||Start Date|End Date|confirmation|||amount|
||relationship|||entrusted||||in the|income||
|||or not|||||method|||in the|
|||||financing||||report|||
|||||||||||report|
|||||||||period|||
|||||||||||period|
|Commercial Bank|||||2015|2015|minimum||||
|of China|||||||income||||
||||||May 29,|June 15,|||||
|Bank of China|N/A|No|Ri Ji Yue Lei|200|||Float income|200|0.26|0.26|
||||||2015|2015|||||
|China Merchants|||||March 19,|June 18,|||||
||N/A|No|Gu Zhi Ying 52299|50|||Float income|50|0.56|0.56|
|Bank|||||2015|2015|||||
|China Minsheng|||Extraordinary asset||May 28,|June 25,|||||
||N/A|No||900|||Float income|900|2.9|2.9|
|Banking|||management||2015|2015|||||
||||||May 29,|June 26,|||||
|Bank of China|N/A|No|Ri Ji Yue Lei|100|||Float income|100|0.21|0.21|
||||||2015|2015|||||
||||||June 24,|June 26,|||||
|Bank of China|N/A|No|Ri Ji Yue Lei|100|||Float income|100|0.02|0.02|
||||||2015|2015|||||
||||||July 1,|June 29,|||||
|Bank of China|N/A|No|AMZYPW|1,100|||Float income|1,100|57.43|57.43|
||||||2014|2015|||||
||||||February|July 3,|||||
|Bank of China|N/A|No|AMZYJZT-A15079|500|||Float income||9.78||
||||||13, 2015|2015|||||
||||||February|July 3,|||||
|Bank of China|N/A|No|AMZYJZT-A15079|100|||Float income||1.96||
||||||13, 2015|2015|||||
|Industrial and|||||||Guaranteed||||
||||||May 4,|July 6,|||||
|Commercial Bank|N/A|No|WL63BBX|430|||minimum||3.08||
||||||2015|2015|||||
|of China|||||||income||||
||||||March 3,|July 7,|||||
|Bank of China|N/A|No|AMZYJZT-A15104|300|||Float income||5.33||
||||||2015|2015|||||
||||||January|July 9,|||||
|Bank of China|N/A|No|AMZYJZT|600|||Float income||15.36||
||||||12, 2015|2015|||||
|China Minsheng|||Extraordinary asset||June 26,|July 9,|||||
||N/A|No||900|||Float income||1.57||
|Banking|||management||2015|2015|||||
||||||July 14,|July 13,|||||
|Bank of China|N/A|No|AMZYJZT|1,000|||Float income||52.85||
||||||2014|2015|||||
||||||April 16,|July 16,|||||
|Bank of China|N/A|No|AMZYPWHQ-15213|300|||Float income||3.7||
||||||2015|2015|||||
|Bank of|||||May 4,|August 3,|||||
||N/A|No|YTCF-RZL|150|||Float income||1.87||
|Communications|||||2015|2015|||||
|Bank of China|N/A|No|AMZYJZT-A15193|200|March 27,|August 4,|Float income||3.74||

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||Actual|
|||||||||Principal|||
|||||||||||loss and|
|||||Amount||||amount|||
|||Connected|||||Remuneration|||gain|
||Associated|||of||||returned|Projected||
|Name of trustee||transaction|Product Type||Start Date|End Date|confirmation|||amount|
||relationship|||entrusted||||in the|income||
|||or not|||||method|||in the|
|||||financing||||report|||
|||||||||||report|
|||||||||period|||
|||||||||||period|
||||||2015|2015|||||
||||||April 14,|August 18,|||||
|Bank of China|N/A|No|AMZYJZT-A15231|250|||Float income||4.36||
||||||2015|2015|||||
||||||April 14,|August 18,|||||
|Bank of China|N/A|No|AMZYJZT-A15231|400|||Float income||6.97||
||||||2015|2015|||||
|Industrial and|||||||||||
||||||June 19,|August 21,|||||
|Commercial Bank|N/A|No|995101010010200|650|||Float income||4.66||
||||||2015|2015|||||
|of China|||||||||||
|Bank of|||||May 29,|September|||||
||N/A|No|YTCF-RZL|100|||Float income||3.65||
|Communications|||||2015|3, 2015|||||
||||||June 4,|September|||||
|Bank of China|N/A|No|AMZYJZT|320|||Float income||3.91||
||||||2015|7, 2015|||||
||||||June 8,|September|||||
|Bank of China|N/A|No|AMZYJZT|80|||Float income||1.02||
||||||2015|10, 2015|||||
|Bank of|||||June 15,|September|||||
||N/A|No|YTCF-RZL|150|||Float income||3.65||
|Communications|||||2015|14, 2015|||||
||||||June 16,|September|||||
|Bank of China|N/A|No|Ri Ji Yue Lei|350|||Float income||4.24||
||||||2015|18, 2015|||||
||||||September|September|||||
|Bank of China|N/A|No|AMZYJZT|2,000|||Float income||107.59||
||||||29, 2014|21, 2015|||||
||||||April 7,|October 8,|||||
|Bank of China|N/A|No|AMZYPWHQ-15190|500|||Float income||12.98||
||||||2015|2015|||||
|Bank of|||||April 10,|October|||||
||N/A|No|YTCF-RZL|150|||Float income||3.65||
|Communications|||||2015|12, 2015|||||
|Shanghai Pudong|||||April 29,|October|||||
||N/A|No|2301137338|400|||Float income||10.85||
|Development Bank|||||2015|24, 2015|||||
|Bank of|||||April 27,|October|||||
||N/A|No|YTCF-RZL|100|||Float income||2.39||
|Communications|||||2015|26, 2015|||||
||||||January 5,|January 4,|||||
|Bank of China|N/A|No|AMZYJZT|1,300|||Float income||68.71||
||||||2015|2016|||||
||||||March 19,|March 17,|||||
|Bank of China|N/A|No|AMZYJZT (364 days)|1,500|||Float income||78.53||
||||||2015|2016|||||
||||||December|June 25,|||||
|Ping An Bank|N/A|No|TTL|3,300|||Float income|3,300|47.57|47.57|
||||||31, 2014|2015|||||

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||Actual|
|||||||||Principal|||
|||||||||||loss and|
|||||Amount||||amount|||
|||Connected|||||Remuneration|||gain|
||Associated|||of||||returned|Projected||
|Name of trustee||transaction|Product Type||Start Date|End Date|confirmation|||amount|
||relationship|||entrusted||||in the|income||
|||or not|||||method|||in the|
|||||financing||||report|||
|||||||||||report|
|||||||||period|||
|||||||||||period|
||||||January 5,|June 27,|||||
|Ping An Bank|N/A|No|TTL|2,400|||Float income|2,400|34.01|34.01|
||||||2015|2015|||||
||||||January|June 26,|||||
|Ping An Bank|N/A|No|TTL|700|||Float income|700|8.66|8.66|
||||||26, 2015|2015|||||
|Industrial and|||||||||||
||||||January|April 24,|||||
|Commercial Bank|N/A|No|1001RSYH|30|||Float income|30|0.25|0.25|
||||||22, 2015|2015|||||
|of China|||||||||||
|Industrial and|||||||||||
||||||January|April 24,|||||
|Commercial Bank|N/A|No|1001RSYH|30|||Float income|30|0.25|0.25|
||||||22, 2015|2015|||||
|of China|||||||||||
|Industrial and|||||||||||
||||||January|May 26,|||||
|Commercial Bank|N/A|No|1001RSYH|30|||Float income|30|0.34|0.34|
||||||22, 2015|2015|||||
|of China|||||||||||
|Industrial and|||||||||||
||||||January|May 26,|||||
|Commercial Bank|N/A|No|1001RSYH|30|||Float income|30|0.34|0.34|
||||||22, 2015|2015|||||
|of China|||||||||||
|Industrial and|||||||||||
||||||January|May 26,|||||
|Commercial Bank|N/A|No|1001RSYH|30|||Float income|30|0.34|0.34|
||||||22, 2015|2015|||||
|of China|||||||||||
|Industrial and|||||||||||
||||||January|December|||||
|Commercial Bank|N/A|No|1001RSYH|30|||Float income||||
||||||22, 2015|31, 2015|||||
|of China|||||||||||
|Industrial and|||||||||||
||||||January|December|||||
|Commercial Bank|N/A|No|1001RSYH|30|||Float income||||
||||||22, 2015|31, 2015|||||
|of China|||||||||||
|Industrial and|||||||||||
||||||May 8,|December|||||
|Commercial Bank|N/A|No|1001RSYH|30|||Float income||||
||||||2015|31, 2015|||||
|of China|||||||||||
|Industrial and|||||||||||
||||||May 8,|December|||||
|Commercial Bank|N/A|No|1001RSYH|30|||Float income||||
||||||2015|31, 2015|||||
|of China|||||||||||
|Industrial and|||||||||||
||||||May 8,|December|||||
|Commercial Bank|N/A|No|1001RSYH|30|||Float income||||
||||||2015|31, 2015|||||
|of China|||||||||||
|Industrial and|N/A|No|1001RSYH|30|May 8,|December|Float income||||

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||||Actual|
||||||||||Principal|||
||||||||||||loss and|
|||||Amount|||||amount|||
|||Connected||||||Remuneration|||gain|
||Associated|||of|||||returned|Projected||
|Name of trustee||transaction|Product Type|||Start Date|End Date|confirmation|||amount|
||relationship|||entrusted|||||in the|income||
|||or not||||||method|||in the|
|||||financing|||||report|||
||||||||||||report|
||||||||||period|||
||||||||||||period|
|Commercial Bank||||||2015|31, 2015|||||
|of China||||||||||||
|||||||April 22,|May 26,|||||
|Bank of China|N/A|No|GSRJYL01|510||||Float income|510|1.33|1.33|
|||||||2015|2015|||||
|||||||||Guaranteed||||
|The Agricultural|||995101010010200|||April 17,|May 26,|||||
||N/A|No||350||||minimum|350|0.98|0.98|
|Bank of China|||phase 3|||2015|2015|||||
|||||||||income||||
|||||||June 24,|December|||||
|Bank of China|N/A|No|Ri Ji Yue Lei|322||||Float income||||
|||||||2015|31, 2015|||||
|||||||June 24,|June 29,|||||
|Bank of China|N/A|No|Ri Ji Yue Lei|278||||Float income|278|0.11|0.11|
|||||||2015|2015|||||
|Industrial and||||||||||||
|||||||June 30,|December|||||
|Commercial Bank|N/A|No|ZQL180|31||||Float income||||
|||||||2015|31, 2015|||||
|of China||||||||||||
|China Construction||||||June 12,|December|||||
||N/A|No|QYTF|100||||Float income||||
|Bank||||||2015|31, 2015|||||
||||CITIC-CP cash|||June 4,|December|||||
|China Citic Bank|N/A|No||6,000||||Float income||||
||||management|||2015|31, 2015|||||
|The Agricultural||||||June 10,|December|||||
||N/A|No|Hui Li Feng|5,000||||Float income||||
|Bank of China||||||2015|31, 2015|||||
|Total||||156,251||--|--|--|131,888|1,375.88|959.48|
|Source of entrusted financial funding|||||Self-owned capital|||||||
|Cumulative amount of capital and profit unclaimed within the due|||||0|||||||
|Disclosure date of the public notice of the Board of Directors on entrusted finance||||||||||||
||||||July 4, 2014|||||||
|approval (if any)||||||||||||
|Disclosure date of the public notice of the meeting of shareholders on entrusted||||||||||||
||||||July 21, 2014|||||||
|finance approval (if any)||||||||||||

(2) Investment of derived products
□ Applicable√ Not applicable
No investment in derivatives is involved within the report period.
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. (3) Entrusted loaning
□ Applicable√ Not applicable
No entrusted loaning is involved within the report period.
3. Use of the collected capital
□ Applicable√ Not applicable
In the report period, there was no usage of raised capital.
4. Analysis of the main subsidiaries and joint stock companies
√ Applicable□ Not applicable
List of major subsidiaries and shareholding companies
Unit: Yuan
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||Major|||||||
|Company|Ownership|||Registered|||Operating|Operating||
|||Industry|Products or||Total Assets|Net Assets|||Net Profit|
|Name|Type|||Capital|||Income|Profit||
||||Services|||||||
||||Operation|||||||
||||and|||||||
||||management|||||||
|Wujiang||Electronics||||||||
||Subsidiary||of|3,000,000.00|27,826,537.46|3,956,253.74|6,987,343.05|827,851.56|743,300.66|
|SEG||market||||||||
||||professional|||||||
||||electronics|||||||
||||market|||||||
||||Operation|||||||
||||and|||||||
||||management|||||||
|||Electronics||||||||
|Wuxi SEG|Subsidiary||of|3,000,000.00|12,665,089.69|3,274,118.77|3,547,872.49|498,509.88|407,805.96|
|||market||||||||
||||professional|||||||
||||electronics|||||||
||||market|||||||
|||Development|Development|||||||
|Nantong||||||||||
||Subsidiary|and operation|and operation|30,000,000.00|445,819,758.86|27,501,779.68||79,042.75|112,042.82|
|SEG||||||||||
|||of real estate|of real estate|||||||
|||Development|Development|||||||
|Yantai SEG|Subsidiary|and operation|and operation|45,000,000.00||||||
|||of real estate|of real estate|||||||
||||Operation|||||||
|Nanning||Electronics|and|||||||
||Subsidiary|||8,000,000.00|6,552,812.69|3,677,549.98|1,457,463.69|-3,870,630.57|-4,108,604.95|
|SEG||market|management|||||||
||||of|||||||

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||Major|||||||
|Company|Ownership|||Registered|||Operating|Operating||
|||Industry|Products or||Total Assets|Net Assets|||Net Profit|
|Name|Type|||Capital|||Income|Profit||
||||Services|||||||
||||professional|||||||
||||electronics|||||||
||||market|||||||
||||Operation|||||||
||||and|||||||
||||management|||||||
|||Electronics||||||||
|Shunde SEG|Subsidiary||of|6,000,000.00|6,033,341.00|3,172,979.30|1,126,574.84|51,951.65|57,672.89|
|||market||||||||
||||professional|||||||
||||electronics|||||||
||||market|||||||
|SEG||||||||||
||Subsidiary|E-commerce|E-commerce|48,000,000.00|148,244,878.20|7,920,793.82|15,226,983.53|-166,132.34|57,695.78|
|E-Commerce||||||||||
|SEG Credit|Subsidiary|Finance|Micro-credit|150,000,000.00|534,733,717.45|194,170,434.78|48,064,462.25|16,044,857.79|12,426,082.81|
||||Property|||||||
||||operation and|||||||
|||Property||||||||
|SEG Baohua|Subsidiary||management|30,808,800.00|135,643,387.46|91,452,175.37|42,445,648.66|17,848,143.27|13,595,029.71|
|||management||||||||
||||and hotel|||||||
||||business|||||||
||||Channel retail|||||||
||||terminal of|||||||
|||Electronic|electronic|||||||
|SEG||product|products and|||||||
||Subsidiary|||25,500,000.00|81,541,514.95|33,540,727.18|154,293,592.57|1,792,549.14|1,792,549.14|
|Industry||channel|property|||||||
|||service|operation|||||||
||||and|||||||
||||management|||||||
||||Operation|||||||
||||and|||||||
||||management|||||||
|||Electronics||||||||
|Xi'an SEG|Subsidiary||of|3,000,000.00|47,572,796.90|11,972,891.51|19,250,093.83|6,416,472.47|5,467,186.70|
|||market||||||||
||||professional|||||||
||||electronics|||||||
||||market|||||||
||||Operation|||||||
||||and|||||||
||||management|||||||
|Longgang||Electronics||||||||
||Subsidiary||of|3,000,000.00|29,222,375.46|6,635,491.21|5,318,910.67|1,349,299.72|1,021,208.10|
|SEG||market||||||||
||||professional|||||||
||||electronics|||||||
||||market|||||||

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||Major|||||||
|Company|Ownership|||Registered|||Operating|Operating||
|||Industry|Products or||Total Assets|Net Assets|||Net Profit|
|Name|Type|||Capital|||Income|Profit||
||||Services|||||||
||||Operation|||||||
||||and|||||||
||||management|||||||
|||Electronics||||||||
|Suzhou SEG|Subsidiary||of|3,000,000.00|43,670,915.64|7,932,854.28|20,051,586.91|4,534,304.90|3,262,500.35|
|||market||||||||
||||professional|||||||
||||electronics|||||||
||||market|||||||
||||Operation|||||||
||||and|||||||
||||management|||||||
|Changsha||Electronics||||||||
||Subsidiary||of|35,000,000.00|145,819,880.58|110,631,739.19|11,490,331.21|1,911,806.01|1,315,968.42|
|SEG||market||||||||
||||professional|||||||
||||electronics|||||||
||||market|||||||
||||Operation|||||||
||||and|||||||
|Xi'an|||management|||||||
|||Electronics||||||||
|Hairong|Subsidiary||of|3,000,000.00|25,663,414.07|4,219,503.70|10,193,163.34|1,307,301.65|1,149,079.53|
|||market||||||||
|SEG|||professional|||||||
||||electronics|||||||
||||market|||||||
||||Operation|||||||
||||and|||||||
||||management|||||||
|Nanjing||Electronics||||||||
||Subsidiary||of|20,000,000.00|29,864,201.54|10,488,378.31|16,104,715.99|-1,393,326.52|-1,370,593.52|
|SEG||market||||||||
||||professional|||||||
||||electronics|||||||
||||market|||||||
|Nantong|||Business|||||||
|SEG||Service|operation and|||||||
||Subsidiary|||5,000,000.00||||||
|Operation||industry|property|||||||
|Company|||management|||||||
||||Operation|||||||
||||and|||||||
||||management|||||||
|Suzhou SEG||Electronics||||||||
||Subsidiary||of|8,000,000.00|25,266,834.38|-2,333,762.75|7,048,486.98|-3,787,052.32|-3,787,052.32|
|Digital||market||||||||
||||professional|||||||
||||electronics|||||||
||||market|||||||
|Xi'an||Development|Development|||||||
||Subsidiary|||30,000,000.00||||||
|Fengdong||and operation|and operation|||||||

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||Major|||||||
|Company|Ownership|||Registered|||Operating|Operating||
|||Industry|Products or||Total Assets|Net Assets|||Net Profit|
|Name|Type|||Capital|||Income|Profit||
||||Services|||||||
|SEG||of real estate|of real estate|||||||
||||Manufacturing|||||||
||||and operation|||||||
||||of color|||||||
|||Manufacturing||||||||
|Huakong|Shareholding||picture tube|||||||
|||of electronic||1,006,671,464.00|637,076,423.92|609,972,908.33|16,994,189.98|-28,771,303.47|-28,588,277.77|
|SEG|company||(CPT), CPT|||||||
|||components||||||||
||||materials, and|||||||
||||glass|||||||
||||apparatus|||||||
||||Operation|||||||
||||and|||||||
||||management|||||||
|Shanghai|Shareholding|Electronics||||||||
||||of|5,000,000.00|27,608,160.28|8,827,438.65|1,282,610.27|-1,609,685.56|-1,571,178.03|
|SEG|company|market||||||||
||||professional|||||||
||||electronics|||||||
||||market|||||||
||||Production|||||||
||||and operation|||||||
|SEG|Shareholding|Information||||||||
||||network|60,000,000.00|370,653,954.93|160,727,416.77|111,809,097.50|-8,853,980.06|2,364,517.52|
|Navigations|company|industry||||||||
||||service of|||||||
||||China GPS|||||||

5. Major projects that are not invested by the collected capital
□ Applicable√ Not applicable
No major projects that are not invested by the collected capital are involved in the report period.
VI. Forecasts of Operation Performance from January to September, 2015
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-standard Audit Report” made by the accounting firm in the report period
□ Applicable√ Not applicable
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. VIII. Explanations of the Board of Directors to the relative information of the “Non-standard Audit Report” of the previous year
□ Applicable√ Not applicable
IX. Distribution of Profit 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 shares in the report period
□ Applicable√ Not applicable
In the previous year, the profit distribution scheme of the company was no cash dividend, no bonus shares, and no transfer of the capital reserve to shares.
X. Plan of profit distribution and transferring the capital reserve to shares 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 shares. XI. Registration form for investigations, communication and interviews in the report period√ Applicable□ Not applicable
|||||||
|-|-|-|-|-|-|
|Time||Means||Object|Main Content of Discussion and the|
||Place||Type|||
||||||Materials Provided|
|January 9, 2015||Phone call||Investor|Asked about the results of 29.51%|
||||||equity of SEG Group held by Huarong|
||||||Asset Management Co., Ltd. being|
||||||listed for transfer. The company|
||At the|||||
||||Individual||answered that no related information|
||Company|||||
||||||about the SEG Group equity transfer|
||||||was received. For details, please focus|
||||||on the real-time notifications on the|
||||||Shenzhen Stock Exchange website.|
|January 12, 2015||Phone call||Investor|Asked whether the Company has an|
||||||owned enterprise reform program. The|
||At the|||||
||||Individual||Company answered that no formal|
||Company|||||
||||||notice from the parent unit has been|
||||||received yet.|
|January 14, 2015||Phone call||Investor|Asked about the results of 29.51%|
||||||equity listed for transfer. The company|
||At the|||||
||||Individual|||
||||||answered that no related information|
||Company|||||
||||||about the SEG Group equity transfer|
||||||was received. For details, please focus|

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
|||||||
|-|-|-|-|-|-|
|Time||Means||Object|Main Content of Discussion and the|
||Place||Type|||
||||||Materials Provided|
||||||on the real-time notifications on the|
||||||Shenzhen Stock Exchange website.|
|January 15, 2015||Phone call||Investor|Inquired why the share of the|
||||||Company is not appreciated? The|
||At the|||||
||||Individual||Company provided the basic|
||Company|||||
||||||information and regularly disclosed|
||||||reports of the Company.|
|January 22, 2015||Phone call||Investor|Inquired when Nantong SEG Times|
||||||Square can obtain the pre-sale permit.|
||||||The Company answered that currently|
||At the|||||
||||Individual||the Company was promoting the|
||Company|||||
||||||related matters and will disclose the|
||||||related information if the pre-sale|
||||||permit was received.|
|January 26, 2015||Phone call||Investor|Inquired when Nantong SEG Times|
||||||Square can obtain the pre-sale permit.|
||||||The Company answered that currently|
||At the|||||
||||Individual||the Company was promoting the|
||Company|||||
||||||related matters and will disclose the|
||||||related information if the pre-sale|
||||||permit was received.|
|January 29, 2015||Phone call||Investor|Asked why Huakong SEG Co., Ltd|
||||||was suspended. The Company|
||At the|||||
||||Individual||suggested the investor to consult the|
||Company|||||
||||||information from Deputy General|
||||||Manager office.|
|January 30, 2015||Phone call||Investor|Asked why Huakong SEG Co., Ltd|
||||||was suspended. The Company|
||At the|||||
||||Individual||suggested the investor to consult the|
||Company|||||
||||||information from Deputy General|
||||||Manager office.|
|February 1, 2015||Phone call||Investor|Inquired the number of shareholders|
||||||till January 31. The Company|
||||||answered that releasing the register of|
||At the|||||
||||Individual||shareholders of B shares requires T+3|
||Company|||||
||||||working days and therefore the|
||||||corresponding information cannot be|
||||||provided.|
|February 4, 2015||Phone call||Investor|Inquired the number of shareholders|
||At the||||till January 31. The Company provided|
||||Individual|||
||Company||||the information released by the|
||||||Securities Depository and Clearing|

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
|||||||
|-|-|-|-|-|-|
|Time||Means||Object|Main Content of Discussion and the|
||Place||Type|||
||||||Materials Provided|
||||||Corporation.|
|February 5, 2015||Phone call||Investor|Inquired the specific operating|
||At the||||conditions in Q1. The Company|
||||Individual|||
||Company||||suggested the investor to focus on the|
||||||2015 Q1 Report to be disclosed soon.|
|February 10, 2015||Phone call||Investor|Inquired when Nantong SEG Times|
||||||Square can obtain the pre-sale permit.|
||||||The Company answered that currently|
||At the|||||
||||Individual||the Company was promoting the|
||Company|||||
||||||related matters and will disclose the|
||||||related information if the pre-sale|
||||||permit was formally received.|
|February 13, 2015||Phone call||Investor|Inquired when Nantong SEG Times|
||||||Square can obtain the pre-sale permit.|
||||||The Company answered that currently|
||At the|||||
||||Individual||the Company was promoting the|
||Company|||||
||||||related matters and will disclose the|
||||||related information if the pre-sale|
||||||permit was formally received.|
|March 9, 2015||Phone call||Investor|Inquired the time for disclosing the|
||At the||||annual report. The Company answered|
||||Individual|||
||Company||||that the annual report was to be|
||||||disclosed on March 28, 2015.|
|March 10, 2015||Phone call||Investor|Inquired the number of shareholders|
||||||till February 28. The Company|
||At the|||||
||||Individual||provided the information released by|
||Company|||||
||||||the Securities Depository and Clearing|
||||||Corporation.|
|March 13, 2015||Phone call||Investor|Inquired the specific operating|
||At the||||conditions in Q1. The Company|
||||Individual|||
||Company||||suggested the investor to focus on the|
||||||2015 Q1 Report to be disclosed soon.|
|March 17, 2015||Phone call||Investor|Inquired the number of shareholders|
||||||till March 15. The Company provided|
||At the|||||
||||Individual||the information released by the|
||Company|||||
||||||Securities Depository and Clearing|
||||||Corporation.|
|March 24, 2015||Phone call||Investor|Inquired the specific operating|
||At the||||conditions in Q1. The Company|
||||Individual|||
||Company||||suggested the investor to focus on the|
||||||2015 Q1 Report to be disclosed soon.|

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
|||||||
|-|-|-|-|-|-|
|Time||Means|Type|Object|Main Content of Discussion and the|
||Place|||||
||||||Materials Provided|
|May 7, 2015||Phone call|Individual|Investor|Inquired that whether the revenues of|
||||||Nantong SEG Time Square will be|
||At the||||disclosed in the semi-annual report.|
||Company||||The Company suggested the investor|
||||||to focus on the 2015 Semi-annual|
||||||Report to be disclosed soon.|
|May 20, 2015||Phone call|Individual|Investor|Inquired the number of shareholders|
||||||till May 15. The Company provided|
||At the|||||
||||||the information released by the|
||Company|||||
||||||Securities Depository and Clearing|
||||||Corporation.|
|May 25, 2015||Phone call|Individual|Investor|Inquired the sales situations of|
||||||Nantong SEG Time Square. The|
||At the|||||
||||||Company suggested the investor to|
||Company|||||
||||||focus on the 2015 Semi-annual Report|
||||||to be disclosed soon.|
|May 28, 2015||Phone call|Individual|Investor|Inquired that whether the revenues of|
||||||Nantong SEG Time Square will be|
||At the||||disclosed in the semi-annual report.|
||Company||||The Company suggested the investor|
||||||to focus on the 2015 Semi-annual|
||||||Report to be disclosed soon.|
|May 29, 2015||Phone call|Individual|Investor|Inquired the specific implementation|
||||||plans after the Company signed the|
||||||strategic cooperation agreement with|
||At the|||||
||||||EONTEC. The Company suggested the|
||Company|||||
||||||investor to focus on the related public|
||||||notice disclosed according to the|
||||||progress.|
|June 1, 2015||Phone call|Individual|Investor|Inquired the specific implementation|
||||||plans after the Company signed the|
||||||strategic cooperation agreement with|
||At the|||||
||||||EONTEC. The Company suggested the|
||Company|||||
||||||investor to focus on the related public|
||||||notice disclosed according to the|
||||||progress.|
|June 2, 2015||Written reply|Institution|Hong KongSalesDepartmentof ChinaInternationalCapital||
||||||Inquired the information about SEG|
||||||Baohua, SEG GPS, Huakong SEG, and|
||At the|||||
||||||Nantong SEG. The Company provided|
||Company|||||
||||||the written reply according to the|
||||||disclosed public notice.|

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
|||||||
|-|-|-|-|-|-|
|Time||Means||Object|Main Content of Discussion and the|
||Place||Type|||
||||||Materials Provided|
|||||CorporationLimited||
|June 3, 2015||Phone call||Investor|Inquired the specific implementation|
||||||plans after the Company signed the|
||||||strategic cooperation agreement with|
||At the|||||
||||Individual||EONTEC. The Company suggested the|
||Company|||||
||||||investor to focus on the related public|
||||||notice disclosed according to the|
||||||progress.|
|June 23, 2015||Phone call||Investor|Inquired whether the Company will|
||At the||||disclose important public notice. The|
||||Individual|||
||Company||||Company replied no information that|
||||||needs to be disclosed is undisclosed.|
|June 25, 2015||Phone call||Investor|Inquired the specific operating|
||||||conditions in Q2. The Company|
||At the|||||
||||Individual||suggested the investor to focus on the|
||Company|||||
||||||2015 Semi-annual Report to be|
||||||disclosed soon.|
|June 30, 2015||Phone call||Investor|Inquired whether the Company will|
||At the||||disclose important public notice. The|
||||Individual|||
||Company||||Company replied no information that|
||||||needs to be disclosed is undisclosed.|

 Chapter 5 Important Matters
I. Governance of the Company
In the report period, the Company has constantly improved the governance structure and internal control structure and standardize the governance level in strict accordance with the Company Law of the People's Republic of China, the Securities Law of the People's Republic of China, the Code of Corporate Governance for Listed Companies in China, and other laws and regulations stipulated by China Securities Regulatory Commission. However, there were still problems as follows:
1. The controlling shareholders exert the “Property Right Representatives Report System” for managing the Company. The Company's controlling shareholder SEG Group is a state-controlled corporation in Shenzhen and Shenzhen State-owned Assets Supervision and Administration Bureau is the controlling shareholder of SEG
Group. It must implement the Property Right Representatives Report System for state-owned assets management
according to the management methods of Shenzhen for state-owned assets.
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. 2. In respect of assessment on human resources, theCompany’s controlling shareholder SEG Group implemented the annual performance assessment on Senior Executives according to the completing of annual operation indicators and other indicators stipulated by SEG Group.
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. In accordance with the requirements of state-owned assets supervision department, the Company has been submitting monthly flash reports to the majority shareholder and the actual controller and reporting important issues to the majority shareholder and the actual controller before they are disclosed. The Company submitted the Undisclosed Information Provided by Listed Companies for the Majority Shareholder or Actual Controller and Letter of Commitment to Shenzhen Securities Regulatory Bureau on October 18, 2007. SEG Group offered the Letter of Commitment on Strengthening Management of Undisclosed Information to Shenzhen Securities Regulatory Bureau. Meanwhile, the Company has established and implemented the Non-public Information Insider Reporting System and the Confidentiality System of Shenzhen SEG Co., Ltd for Insiders of Non-public Information and has monthly reported to Shenzhen Securities Regulatory Bureau about its reports of unpublicized information. Senior executives and all employees at the headquarters signed a Confidentiality Agreement with the Company on July 15, 2009. The Confidentiality Agreement clearly stipulates that all employees are obligated to hold confidential the business secrets and undisclosed information of the Company.
The unpublicized information the Company offered to theCompany’s majority shareholder and actual controller in the report period is as follows:
|||||||||
|-|-|-|-|-|-|-|-|
|S/N||Relationship|Type ofinformation|Procedure of report||Basis for report||
||Organization|||||||
|||between the|||Time or||Procedure|
||to which|||||||
|||organization|||period||of|
||information|||||||
|||and the|||of report||approval|
||is reported|||||||
|||Company||||||
|1|ShenzhenSEG GroupCo., Ltd.|Controllingshareholder(30.24%)|The flashreport of mainfinancialindicators ofthe Companyregistered inShenzhen|The invested corporation ofthe Company and thefinancial staff at theHeadquarters prepare thereport and consolidate thestatements, which arereviewed by the leadershipof the Financial Departmentand reported through theState-owned AssetManagement InformationSystem.|Monthly|The document Noticeabout Formulation of theMonthly Flash Report ofEnterprises Supervisedby Stated-owned AssetsSupervision andAdministrationCommission of the StateCouncil (SASAC[2003]23)|The BoardofDirectorsagrees toreport.|
|2|ShenzhenSEG GroupCo., Ltd.|Controllingshareholder(30.24%)|Summary sheetofimplementationof monthlyexpense budget|The invested corporation ofthe Company and thefinancial staff at theHeadquarters prepare thesheet and consolidate thestatements, which are|Monthly|The document Noticeabout Formulation of theMonthly Flash Report ofEnterprises Supervisedby Stated-owned AssetsSupervision and|The BoardofDirectorsagrees toreport.|

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
|||||||||
|-|-|-|-|-|-|-|-|
|S/N||Relationship|Type ofinformation|||Basis for report||
||Organization|||||||
|||between the|||Time or||Procedure|
||to which|||||||
|||organization||Procedure of report|period||of|
||information|||||||
|||and the|||of report||approval|
||is reported|||||||
|||Company||||||
|||||reported through theState-owned AssetManagement InformationSystem.||AdministrationCommission of the StateCouncil (SASAC[2003]23)||
|3|ShenzhenSEG GroupCo., Ltd.|Controllingshareholder(30.24%)|Summary sheetof monthlycash flow|The invested corporation ofthe Company and thefinancial staff at theHeadquarters prepare thesheet and consolidate thestatements, which arereported through theState-owned AssetManagement InformationSystem.|Monthly|The document Noticeabout Formulation of theMonthly Flash Report ofEnterprises Supervisedby Stated-owned AssetsSupervision andAdministrationCommission of the StateCouncil (SASAC[2003]23)|The BoardofDirectorsagrees toreport.|
|4|ShenzhenSEG GroupCo., Ltd.|Controllingshareholder(30.24%)|Summary sheetof deposits,financing, andloans of theHeadquarters|The financial personnel atthe Headquarters preparethe sheet that is reportedthrough the State-ownedAsset ManagementInformation System.|Quarterly|The document Noticeabout Formulation of theMonthly Flash Report ofEnterprises Supervisedby Stated-owned AssetsSupervision andAdministrationCommission of the StateCouncil (SASAC[2003]23)|The BoardofDirectorsagrees toreport.|
|5|ShenzhenSEG GroupCo., Ltd.|Controllingshareholder(30.24%)|Summary sheetof quarterlynon-operatinggains andlosses of theCompanyregistered inShenzhen|The invested corporation ofthe Company and thefinancial staff at theHeadquarters prepare thesheet and consolidate thestatements, which arereported through theState-owned AssetManagement InformationSystem.|Quarterly|The document Noticeabout Formulation of theMonthly Flash Report ofEnterprises Supervisedby Stated-owned AssetsSupervision andAdministrationCommission of the StateCouncil (SASAC[2003]23)|The BoardofDirectorsagrees toreport.|
|6|ShenzhenSEG GroupCo., Ltd.|Controllingshareholder(30.24%)|Summary sheetof quarterlyinformation oninvestmentproperties of|It began to be reported sinceJune 2009.The invested corporation ofthe Company and thefinancial staff at the|Quarterly|The document Noticeabout Formulation of theMonthly Flash Report ofEnterprises Supervisedby Stated-owned Assets|The BoardofDirectorsagrees toreport.|

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
|||||||||
|-|-|-|-|-|-|-|-|
|S/N||Relationship|Type ofinformation|Procedure of report||Basis for report||
||Organization|||||||
|||between the|||Time or||Procedure|
||to which|||||||
|||organization|||period||of|
||information|||||||
|||and the|||of report||approval|
||is reported|||||||
|||Company||||||
||||the Companyregistered inShenzhen|Headquarters prepare thesheet and consolidate thestatements, which arereported through theState-owned AssetManagement InformationSystem.||Supervision andAdministrationCommission of the StateCouncil (SASAC[2003]23)||
|7|ShenzhenSEG GroupCo., Ltd.|Controllingshareholder(30.24%)|Monthlyconsolidatedstatements(including theBalance Sheet,the ProfitStatement, theCash FlowStatement, theNotes toPreparation ofthe Statementsand theFinancialStatements)|They should be reportedevery month after beingprinted, signed and sealedand reported every quarterthrough the State-ownedAsset ManagementInformation System. Theybegan to be reported on linefrom July 2008.|Monthly|The Notice of ShenzhenSEG Co., Ltd onSubmitting of MonthlyStatements|The BoardofDirectorsagrees toreport.|
|8|ShenzhenSEG GroupCo., Ltd.|Controllingshareholder(30.24%)|Statisticalsurvey on thestatements ormonthly andannual reportsof theproduction ofelectronicsinformationindustry|Sealed by the Company|Monthlyandannually|It was provided byArticle Three of theStatistics Law of thePeople’s Republic ofChina that state organs,social organizations,corporations, publicinstitutions and privatelyor individually ownedbusinesses, on whichstatistical survey isimplemented, mustcomply with the StatisticsLaw and the regulationsof the state and providestatistical data faithfullybut not make a falsereport, conceal data,|The BoardofDirectorsagrees toreport.|
||ShenzhenStatisticsBureau|Governmentbranch||||||

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
|||||||||
|-|-|-|-|-|-|-|-|
|S/N||Relationship|Type ofinformation|Procedure of report||Basis for report||
||Organization|||||||
|||between the|||Time or||Procedure|
||to which|||||||
|||organization|||period||of|
||information|||||||
|||and the|||of report||approval|
||is reported|||||||
|||Company||||||
|||||||refuse to report, delay thereport, or fabricate orfalsify data.Self-governing massorganizations at the grassroots level and citizenshave the obligation toprovide truthfully theinformation required bythe statistical survey ofthe state.||
|9|ShenzhenSEG GroupCo., Ltd.|Controllingshareholder(30.24%)|Summary sheetof quarterlyfinancial assets|Sealed by the Company|Quarterly|The document Noticeabout Formulation of theMonthly Flash Report ofEnterprises Supervisedby Stated-owned AssetsSupervision andAdministrationCommission of the StateCouncil (SASAC[2003]23)|The BoardofDirectorsagrees toreport.|
|10|ShenzhenSASAC|Actualcontroller|Analysis ofinvestorrelations in2015 Q1 andQ2|The list of the top 100shareholders and the tradinginformation of each quartershould be provided by theSecurities Depository andClearing Corporation.|Quarterly|The requirements from2013 Shenzhenstate-owned enterprisecapital operationconference|The BoardofDirectorsagrees toreport.|

II. Litigation Issues
Major Lawsuits and Arbitrations
□ Applicable√ Not applicable
No major lawsuits and arbitrations are involved in the report period.
Other lawsuits
√ Applicable□ Not applicable
Basic Information About Amount Whether Progress Judgment Judgment Disclosure Disclos
Lawsuits and Arbitrations (RMB: ten Estimated Result and Execution Date ure
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. thousand Liabilities Impact Index Yuan) Occurred
Eight cases related to the 345.41 No Six cases Two cases Normal
intellectual property rights: have not have been
Such kind of case involves been closed, one
that the individual tenants in closed, case has been
the electronics market and two judged, and
operated by the Company cases one case has
were sued by the obligee have been been
because they sold some closed. withdrawn.
products which may possibly The Company
infringe the intelligence is not liable
property owned by others, and for
the company is listed as the compensation.
co-defendant. In these cases,
the Company, as the manager
of market, is not the actual
seller of the product which
may possibly infringe the
intelligence property.
On February 4, 2013, Suzhou 326.42 No The first -- -- April 30, http://w SEG Electronics Market instance 2015 ww.cninf Management Co., Ltd. of this o.com.cn (hereinafter referred to as case was
“Suzhou SEG”) signed with to be held
Suzhou Rail Transit Group in Suzhou
Co., Ltd. (hereinafter referred Gusu
to as “Rail Transit Group”) the District
Commercial Lease Contract of People’s
Underground Large Space of Court on
Guangji Road (S) along No. 1 March
Line of Suzhou Rail Transit, 19, 2015
under which it is agreed that originally
Suzhou SEG leases the , but the
underground large space of opening
Guangji Road (S) along the of a court
No. 1 Line of Suzhou Rail session
Transit owned by Suzhou Rail has been
Transit Group, and the lease delayed
term is 96 months. After the due to
contract was signed, preparatio
difficulties occurred in the n for
project operation because of litigation.
market change. Thus the both At
parties of cooperation present
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. negotiated repeatedly for this case
modifying the conditions of is located
cooperation, however, no in the
agreement of renewed stage of
conditions of cooperation waiting
could be reached finally. for the
Therefore, this project entered opening
into the clearing stage at last. of a court
On January 26, 2015, the Rail session.
Transit Group submitted a
case to the court, requesting
the latter to order Suzhou SEG
to assume the liquidated
damages of RMB 2.1 million
Yuan and the rents of RMB
0.8 million Yuan for the
decoration period and water
and electricity consumption of
RMB 0.3642 million Yuan.
On June 29, 2011, the No Now, this -- -- April 30, http://wCompany’s controlled case was 2015 ww.cninf subsidiary Shenzhen SEG registered o.com.cn Industrial Investment Co., Ltd. at
(hereinafter referred to as Shenzhen
“SEG Industry”) signed with Futian
Shenzhen Cyber Mart Digital District
Technology Co., Ltd. People’s
(hereinafter referred to as Court on
“Cyber Mart”) the Lease April 15,
Contract, under which SEG 2015, and
Industry leases 240㎡ in a court
total of its shop locating in the session
annex building of Window of was
the Times to Cyber Mart, and opened
the duration of the contract is for this
from July 1, 2011 to June 30, case on
2019. In the late period of the 18 July
duration, because of various 2015. The
causes including the impact Company
from the construction of ism
Shenzhen Metro along waiting
Huaqiang Road (N), and for the
problems occurred in Cyber result of
Mart’s operation and so on, judgment
both parties signed the from the
Supplementary Agreement on court.
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. February 20, 2014, renewing
the conditions on rent and
liquidated damages and so on.
In August 2014, SEG Industry
received the Notice of
Cancelling the Contract and
Handing and Taking over the
Shop. SEG Industry
communicated with Cyber
Mart for many times for the
issues concerning liquidated
damages agreed in the Lease
Contract, but no further
agreement has been reached.
In order to reliably protect its
self-interest, SEG Industry
decided through internal
discussion to entrust the
lawyer to carry out the
representative action on risk
basis. At present, SEG
Industry has already entrusted
Guangdong Ruiting Law Firm
to prosecute Cyber Mart.
III. Matters Questioned by Media
□ Applicable√ Not applicable
The Company did not have any matter commonly questioned by media in the report period.
IV. Bankruptcy and Reorganization
□ Applicable√ Not applicable
No bankruptcy and reorganization matter is involved in the report period.
V. Transaction in Assets
1. Information on Asset Acquisition
□ Applicable√ Not applicable
No asset acquisition is involved in the report period.
2. Asset Sales
□ Applicable√ Not applicable
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. No asset sale is involved in the report period.
3. Business Combination
□ Applicable√ Not applicable
No business combination is involved in the report period.
VI. Implementation and Impact of the Stock Incentive Plan
□ Applicable√ Not applicable
No stock incentive plan and implementation is involved in the report period.
VII. Major Relevant Transactions
1. Transactions Concerning Routine Operation
√ Applicable□ Not applicable
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||||Amount|||||
||||||Transaction||Whether||||
|||||Pricing||Proportion|||||
|Related||||||||Transaction|||
||Associated|Transaction|Associated||Amount|Occupied in|Exceeding||Disclosure||
|||||Principles of||||||Disclosure Index|
|Party|||||(RMB ten|the|the|Clearing|||
||Relationship|Type|Transactions|Associated|||||Date||
|Transaction|||||thousand|Transactions|Approved|Form|||
|||||Transactions|||||||
||||||Yuan)|of the Same|Quota||||
|||||||Kind|||||
||||The||||||||
||||company||||||||
|Shenzhen|||leased the|Determined||||According|||
||Controlling|Property|||||||March 28,|http://www.cninfo.com.cn|
||||SEG Square||25.4|0.08%|No||||
|SEG Group||||by the||||to the|||
||shareholder|lease|property||||||2015|(Cninfo Website)|
|Co., Ltd.||||market||||agreement|||
||||owned by the||||||||
||||controlling||||||||
||||shareholders||||||||
||||The||||||||
||||company||||||||
|Shenzhen|||leased the|Determined||||According|||
||Controlling|Property|||||||March 28,|http://www.cninfo.com.cn|
||||SEG Square||31.06|0.10%|No||||
|SEG Group||||by the||||to the|||
||shareholder|lease|property||||||2015|(Cninfo Website)|
|Co., Ltd.||||market||||agreement|||
||||owned by the||||||||
||||controlling||||||||
||||shareholders||||||||
|Total||||--|56.46|--|--|--|--|--|

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. 2. Relevant Transactions Due to Asset Sales and Acquisition
□ Applicable√ Not applicable
No relevant transaction due to asset sales and acquisition is involved in the report period.
3. Relevant Transactions Due to Joint External Investment
□ Applicable√ Not applicable
No relevant transaction due to joint external investment is involved in the report period.
4. Creditor's Rights and Liabilities of Related Parties
□ Applicable√ Not applicable
No creditor's rights and liabilities of related parties are involved in the report period.
5. Other Related Transactions
□ Applicable√ Not applicable
No other major related transactions are involved in the report period.
VIII. Non-operating Capital Occupation on the Listed Company by the Controlling
Shareholders and Related Parties
□ Applicable√ Not applicable
No non-operating capital occupation on the listed company by the controlling shareholders and related parties is involved in the report period.
IX. Important Contracts and Implementation
1. Trusteeship, Contracting, and Leasing Issues
(1) Trusteeship Issues
√ Applicable□ Not applicable
Explanations to trusteeship
The controlling shareholder SEG Group entrusts the Company to manage the controlled SEG Communications 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.
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. (2) Contracting Issues
□ Applicable√ Not applicable
No contracting issue is involved within the report period.
(3) Leasing Issues
□ Applicable√ Not applicable
No leasing issue is involved within the report period.
2. Guarantee Issues
√ Applicable□ Not applicable
Unit: RMB ten thousand Yuan
||||||||||
|-|-|-|-|-|-|-|-|-|
|Guarantees for Holding Subsidiaries|||||||||
|Name of theguaranteed||Guaranteeamount||Actualamountguaranteed||Term ofguarantee|Whether theperformanceiscompleted|Whether|
||relevant||||||||
||||Date of|||||guarantee|
||announcement||||||||
||||occurrence|||||is|
||and disclosure||||Type of||||
||||(Date of|||||provided|
||date of the||||guarantee||||
||||signing|||||for the|
||line of||||||||
||||agreement)|||||related|
||guarantee||||||||
|||||||||parties|
|SEG Credit||7500||5000|Joint|1 year|No||
||October 11,||October 25,||||||
||||||responsibility|||No|
||2014||2014||||||
||||||guarantee||||
|Total guarantee amount for||7500||Total amount of the actual||5000|||
|subsidiaries approved in the report||||guarantee to the subsidiaries|||||
|period (B1)||||in the report period (B2)|||||
|||7500||Total amount of the||5000|||
|Total guarantee amount for|||||||||
|||||guarantee balance to the|||||
|subsidiaries approved in the end of|||||||||
|||||subsidiaries at the end of the|||||
|the report period (B3)|||||||||
|||||report period (B4)|||||
|Total of the guarantee amount (the sum of the two major items above)|||||||||
|Total guarantee amount approved in||7500||Total amount of guarantees||5000|||
|the report period (A1+B1)||||in the report period|||||
|Total guarantee amount approved in||7500||||5000|||
|||||Total balance of guarantees|||||
|the end of the report period|||||||||
|||||at the report period end (A)|||||
|(A3+B3)|||||||||
|Proportion of total guarantees in net assets (A4+B4)||||3.48%|||||

Specific description for combined guarantee
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. (1) Violating External Guarantee Issues
□ Applicable√ Not applicable
No violating external guarantee issue is involved in the report period.
3. Other Important Contracts
√ Applicable□ Not applicable
||||||||
|-|-|-|-|-|-|-|
|TheCompany’sname insigningcontract||Pricingprinciple|Transaction|Connectedtransactionor not|Associatedrelationship||
||The||||||
||||Price||||
||counterpart’s||||||
||||(Unit:||||
||name in|||||Execution by the end of the report period|
||||RMB then||||
||signing||||||
||||thousand||||
||contract||||||
||||Yuan)||||
|ShenzhenSEG Co.,Ltd.||Fairvalue||No|Notapplicable|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 SEG E-commerce with|
|||||||the financial assistance of 60,000,000 Yuan for one year|
|||||||(from September 15, 2013 to September 14, 2014) and|
|||||||pays based on the requirements of the e-commerce|
|||||||business. SEG E-Commerce pays expenses for using|
||Shenzhen|||||the funds to the Company based on its actual loan|
||SEG|||||amount and period. The expenses for using the funds is|
||||6,000||||
|||||||charged with the benchmarking interest rate of the|
||E-Commerce||||||
|||||||one-year bank loan in the same period and should be|
||Co., Ltd.||||||
|||||||paid on due date.|
|||||||On December 5, 2014, the 5th special meeting of the 6th|
|||||||Board of Directors discussed and approved the|
|||||||Proposal about Offering Shenzhen SEG E-Commerce|
|||||||Co., Ltd. with Financial Assistance. This load is the|
|||||||renewal load with the term being one year. SEG|
|||||||E-commerce pays expenses for using the funds to the|
|||||||shareholders based on its actual load amount and|
|||||||period. The fund appropriation charge rate is 6.5%.|
|ShenzhenSEG Co.,Ltd.|Shenzhen|Interestnotaccrued||No|Notapplicable|The 15th special meeting of the 6th Board of Directors|
||SEG|||||held on July 29, 2014 reviewed and approved the|
||Industrial||4,200|||Proposal on the Current Fund Loan of RMB 10,000,000|
||Investment|||||Yuan by Shenzhen SEG Industry Investment Co., Ltd|
||Co., Ltd.|||||from Shenzhen SEG Co., Ltd. The Company provides|

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||||||
|-|-|-|-|-|-|-|
|||Pricingprinciple|Transaction|Connectedtransactionor not|Associatedrelationship||
|The|The||||||
||||Price||||
|Company’s|counterpart’s||||||
||||(Unit:||||
|name in|name in|||||Execution by the end of the report period|
||||RMB then||||
|signing|signing||||||
||||thousand||||
|contract|contract||||||
||||Yuan)||||
|||||||RMB 10,000,000 Yuan as cash flow for the|
|||||||wholly-owned subsidiary SEG Industry. Till now, the|
|||||||Company has loaned a total of RMB 42,000,000 Yuan|
|||||||for SEG Industry. No interest is accrued for the above|
|||||||funds.|
|||Fairprice||No|Notapplicable|The 23rd special meeting of the 6th Board of Directors|
|||||||held on May 27, 2015 reviewed and approved the|
|||||||Proposal on the Financial Aid of RMB 10,000,000 Yuan|
||Suzhou SEG|||||for Suzhou SEG Digital Square Management Co., Ltd.|
|Shenzhen|||||||
||Digital Plaza|||||The Company provides RMB 10,000,000 Yuan for the|
|SEG Co.,|||1,000||||
||Management|||||wholly-owned subsidiary Suzhou SEG Digital for|
|Ltd.|||||||
||Co., Ltd.|||||helping the business development of Suzhou SEG|
|||||||Digital. No interest is accured for the above funds. The|
|||||||loan term is one year (from June 8, 2015 to June 7,|
|||||||2016).|

4. Other Important Transactions
□ Applicable√ Not applicable
No important transaction is involved in the report period.
X. Commitments Made by the Company or the Shareholders Holding More Than5% Shares, Which Were Made in or Lasted into the Report Period
√ Applicable□ Not applicable
|||||||
|-|-|-|-|-|-|
|Commitments|||Commitment|Commitment||
||Promisor|Content|||Fulfillment|
||||date|term||
|Commitment for sharereform||||||
||Not applicable|||||
|Commitments in theAcquisition Report andthe Report of Changeson Equity||||||
||Not applicable|||||
|Commitments made atthe time of restructuringof major assets||||||
||Not applicable|||||
|Commitment made at|Shenzhen SEG|According to the Article Five of the|July 1, 1996|Long-term|Commitments|

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
|||||||
|-|-|-|-|-|-|
|Commitments|Promisor||Commitmentdate|Commitment||
|||Content|||Fulfillment|
|||||term||
|the time of initial publicofferings or refinancing|Group Co., Ltd.|Equity Transfer Agreement signed by|||were fulfilled|
|||the Company with SEG Group when|||in the report|
|||the Company was listed, SEG Group|||period.|
|||agreed that the Company and its||||
|||subsidiaries and associated companies||||
|||to use the eight trademarks registered||||
|||by SEG Group at the National||||
|||Trademark Bureau; SEG Group||||
|||agreed that the Company used the||||
|||aforesaid trademarks or similar signs||||
|||as the Company’s logo and used the||||
|||trademarks and signs during its||||
|||operation; the Company does not||||
|||need to pay any fee to SEG Group for||||
|||using the aforesaid trademarks or||||
|||signs.||||
||Shenzhen SEGGroup Co., Ltd.|Shenzhen Securities Regulatory|September 14,2007|||
|||Bureau pointed out that “There is an||||
|||issue of horizontal competition in the||||
|||business of electronics markets||||
|||between the Company and SEG||||
|||Group” during the spot inspection in||||
|||2007; the Company received the||||
|||Letter of Commitment in writing from||||
||||||Commitments|
|||SEG Group on September14, 2007,||||
||||||were fulfilled|
|||which said that “SEG Group and||Long-term||
||||||in the report|
|||Shenzhen SEG Co., Ltd. have similar||||
||||||period.|
|||business in electronics markets in||||
|||Shenzhen (Shenzhen SEG) due to||||
|||historic reasons and the objective||||
|||background of market development;||||
|||Our Group hereby promises that we||||
|||will not individually operate a market||||
|||in a same city whose business is||||
|||similar with that of Shenzhen SEG."||||
||Shenzhen SEGGroup Co., Ltd.|The 6th interim meeting of the 5th|January 26,2011|From||
|||Board of Directors held on January||February 1,||
||||||Commitments|
|||26, 2011 reviewed and approved the||2011 to||
|||Proposal of Solving the Horizontal||January 31,|were fulfilled|
|||Competition between the Company||2015, totally|in the report|
|||and Its Controlling Shareholder. After||five years,|period.|
|||friendly consultation, SEG Group||and the||
|||agreed to entrust the Company to||entrustment||

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
|||||||
|-|-|-|-|-|-|
||Promisor||Commitmentdate|Commitment|Fulfillment|
|Commitments||Content||||
|||||term||
|||operate and manage with full||and operation||
|||authority SEG Communications||contract was||
|||Market under direct management of||expired||
|||SEG Group. Therefore, the two||within this||
|||parties have signed the entrustment||report period.||
|||operation and management contract,||Up to the end||
|||and SEG Group will pay the||of the report||
|||Company RMB 200,000 Yuan as||period, the||
|||entrust management expenses.||contract is||
|||||renewed and||
|||||the renewed||
|||||validity||
|||||period will be||
|||||from||
|||||February 1,||
|||||2015 to||
|||||January 31,||
|||||2016.||
|Other commitments||||||
|made to the medium||||||
|and small shareholders||||||
|of the Company||||||
|Whether commitments|Yes|||||
|were fulfilled on time||||||
|Reason for not fulfilling|N/A|||||
|the commitments and||||||
|future plan (if||||||
|applicable)||||||

XI. Engagement and Dismissal of the Accounting Firm
Whether the semi-annual financial report is audited?
□ Yes√ No
The Semi-Annual Report of the Company has not been audited.
XII. Punishment and Rectification Issues
□ Applicable√ Not applicable
No punishment and rectification is involved in the report period.
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. XIII. Disclosure of Illegal Issues and Delisting Risks
□ Applicable√ Not applicable
No illegal issue and delisting risk is involved in the report period.
XIV. Notes on Other Important Matters
√ Applicable□ Not applicable
||||
|-|-|-|
|Overview of Important Events|Disclosure Date|Inquiry Index for the Websites Disclosing|
|||the Temporary Reports|
|1. Nantong SEG Times Square obtained the pre-sale permit.|March 20, 2015|The announcement for Nantong SEG Times|
|||Square Obtained the Pre-sale Permit was|
|||disclosed on the Cninfo Website.|
|2. Huarong Asset Management Co., Ltd. transfers throughlisting its 29.51% of stock equity of SEG Group, theholding shareholder of the Company|March 10, 2015|The announcement for Equity Transfer of|
|||Shenzhen SEG Group Co., Ltd was|
|||disclosed on the Cninfo Website.|
|3. Providing a Loan of RMB 300 Million for the Company'sWholly-Owned Subsidiary Nantong SEG Times Square Co.,Ltd. to Construct the Nantong SEG Times Square Project|February 13, 2015|The Public Notice on Resolutions of the 21st|
|||Meeting of the Sixth Board of Directors of|
|||Shenzhen SEG Co., Ltd was disclosed on the|
|||Cninfo Website.|
|4. The controlled subsidiary Shenzhen SEG E-CommerceCo., Ltd changing its registered capital|February 13, 2015|The announcement for Registered Capital|
|||Change of Shenzhen SEG E-Commerce Co.,|
|||Ltd was disclosed on the Cninfo Website.|
|5. The joint stock company Shenzhen SEG GPSTechnology Co., Ltd. was accepted for the listing in China'sSME share transfer system|April 18, 2015|The announcement for Joint Stock Company|
|||Shenzhen SEG GPS Technology Co., Ltd.|
|||Was Accepted for the Listing in China's|
|||SME Share Transfer System was disclosed|
|||on the Cninfo Website.|
|6. Strategic cooperation framework agreement signed withDongguan EONTEC|May 29, 2015|The announcement for Strategic|
|||cooperation framework agreement signed|
|||with Dongguan EONTEC was disclosed on|
|||the Cninfo Website.|

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|

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Quantity||New||Capitalization|||||
|||||Bonus||||||
|||Percentage|share||of public|Others|Subtotal|Quantity|Percentage|
|||||share||||||
||||offering||reserve|||||
|I. Restricted shares|26,689|0.00%|0|0|0|0|0|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|26,689|0.00%|0|0|0|0|0|26,689|0.00%|
|Including: Shares held|0|||||||||
|by overseas legal||0.00%|0|0|0|0|0|0|0.00%|
|persons||||||||||
|Shares held by|26,689|||||||||
|||0.00%|0|0|0|0|0|26,689|0.00%|
|domestic natural persons||||||||||
|4. Foreign shares|0|0.00%|0|0|0|0|0|0|0.00%|
|Including: Shares held|0|||||||||
|by overseas legal||0.00%|0|0|0|0|0|0|0.00%|
|persons||||||||||
|Shares held by|0|||||||||
|||0.00%|0|0|0|0|0|0|0.00%|
|foreign natural persons||||||||||
|II. Unrestricted shares|784,772,321|100.00%|0|0|0|0|0|784,772,321|100.00%|
|1. RMB ordinary shares|538,311,003|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|0|||||||||
|||0.00%|0|0|0|0|0|0|0.00%|
|foreign 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%|

 Reason for change
□ Applicable√ Not applicable
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
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. 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.
□ Applicable√ Not applicable
II. Information on the Number of Shareholders and Their Shareholding Status
Unit: Share
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Total number of ordinary||67,495||||Total number of preferredshareholders restored with the votingrights (if any) (see note 8)|||||
|shareholders at the end of the|||||||||0||
|report period|||||||||||
|Information on the shareholders holding more than 5% shares or top 10 ordinary shareholders|||||||||||
||||Shareholdingpercentage|Number of|Shareincrease/decreasein the reportperiod||Quantity|Quantity ofunrestrictedordinaryshares held|Information on pledged||
|||||ordinary|||of||or frozen shares||
|Name of|Nature of|||shares held|||restricted||||
|shareholder|shareholder|||at the end of|||ordinary||Share||
|||||||||||Quantity|
|||||the report|||shares||status||
|||||period|||held||||
|Shenzhen SEGGroup Co., Ltd.|State-ownedlegal person||30.24%|237,359,666|0||0|237,359,666|||
||||||||||Pledged|83,679,833|
|Zeng Ying|Domesticnatural person||0.98%|7,679,449|-361,377||0|7,679,449|||
|Liu Guocheng|Domesticnatural person||0.85%|6,691,302|+1,195,707||0|6,691,302|||
|TaifookSecuritiesCompanyLimited-AccountClient|Overseas legalperson||0.52%|4,119,656|+2,367,952||0|4,119,656|||
|Liu Guohong|Domesticnatural person||0.40%|3,127,958|+673,017||0|3,127,958|||
|Gong Qianhua|Overseasnatural person||0.37%|2,940,000|-2,371,520||0|2,940,000|||
|Wang Jianguang|Domesticnatural person||0.32%|2,497,771|+2,497,771||0|2,497,771|||
|KGI ASIALIMITED|Overseas legalperson||0.30%|2,334,076|+2,334,076||0|2,334,076|||
|ShaanxiInternational|Others||0.29%|2,249,943|2,249,943||0|2,249,943|||

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||||||||
|-|-|-|-|-|-|-|-|-|
|Trust Co., Ltd. –ShaanxiInternationalInvestmentWeicaiSecurities &InvestmentCapital Trustscheme|||||||||
|Phillip Securities(Hong Kong)Groups|Overseas legalperson|0.28%|2,206,196|-4,510,027|0|2,206,196|||
|Strategic investors or general||None|||||||
|legal entities who became one of|||||||||
|the top ten ordinary shareholders|||||||||
|by participating in rights issue (If|||||||||
|any) (see note 3)|||||||||
|Explanations on the association||Shenzhen SEG Group Co., Ltd has no associated relationship with other shareholders, nor it is aconcerted action unit as described by the Management Methods for Disclosure of Information onChanges of Shareholding Status of Shareholders of Listed Companies It is unknown whetherother shareholders have an associated relationship or are concerted action units or not.|||||||
|relationship or concerted action|||||||||
|among the above-mentioned|||||||||
|shareholders|||||||||
|Information on top ten ordinary shareholders of non-restricted shares|||||||||
|||Ordinary shares held at the period end|||||Type of share||
|Name of shareholder|||||||||
||||||||Type of share|Quantity|
|Shenzhen SEG Group Co., Ltd.||237,359,666|||||RMB ordinary|237,359,666|
||||||||shares||
|Zeng Ying||7,679,449|||||Domestically|7,679,449|
||||||||listed foreign||
||||||||shares||
|Liu Guocheng||6,691,302|||||Domestically|6,691,302|
||||||||listed foreign||
||||||||shares||
|Taifook Securities CompanyLimited-Account Client||4,119,656|||||Domestically|4,119,656|
||||||||listed foreign||
||||||||shares||
|Liu Guohong||3,127,958|||||Domestically|3,127,958|
||||||||listed foreign||
||||||||shares||
|Gong Qianhua||2,940,000|||||Domestically|2,940,000|
||||||||listed foreign||
||||||||shares||
|Wang Jianguang||2,497,771|||||Domestically|2,497,771|

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
|||||
|-|-|-|-|
|||listed foreign||
|||shares||
|KGI ASIA LIMITED|2,334,076|Domestically|2,334,076|
|||listed foreign||
|||shares||
|Shaanxi International Trust Co.,Ltd. – Shaanxi InternationalInvestment Weicai Securities &Investment Capital Trust scheme|2,249,943||2,249,943|
|||RMB ordinary||
|||shares||
|Phillip Securities (Hong Kong)Groups|2,206,196|Domestically|2,206,196|
|||listed foreign||
|||shares||
|Explanations on the association|Shenzhen SEG Group Co., Ltd has no associated relationship with other shareholders, nor it is aconcerted action unit as described by the Management Methods for Disclosure of Information onChanges of Shareholding Status of Shareholders of Listed Companies It is unknown whetherother shareholders have an associated relationship or are concerted action units or not.|||
|relationship or concerted action||||
|among the top ten shareholders of||||
|unrestricted ordinary shares, and||||
|between the top ten shareholders||||
|of unrestricted ordinary shares||||
|and the top ten ordinary||||
|shareholders||||
|Information of top ten ordinary|None|||
|shareholders participating in||||
|financing business (if any) (see||||
|note 4)||||

Whether the top ten ordinary shareholders of the Company or top ten ordinary shareholders of non-restricted shares conducted agreed repurchase transactions in the report period?
□ Yes√ No
The top ten ordinary shareholders of the Company or top ten ordinary shareholders of non-restricted shares did not conduct agreed repurchase transactions in the report period.
III. Information on Changes in Controlling Shareholders and 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.
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. IV. Share Holdings Overweight Plan Proposed or Implemented by the Company
Shareholders and Persons Acting in Concert in the Report Period
□ Applicable√ Not applicable
No share holdings overweight plan proposed or implemented by the Company shareholders and persons acting in concert in the report period is involved in the report period according to the learned information.
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. Chapter 7 Preferred Shares
□ Applicable√ Not applicable
No preferred share is involved in the report period.
Chapter 8 Information on Directors, Supervisors, Senior Executives I. Changes in Shares Held by Directors, Supervisors and Senior Executives
□ Applicable√Not applicable
II. Changes of Directors, Supervisors, and Senior Executives
□ Applicable√ Not applicable
No changes of directors, supervisors, and senior executives are involved in the report period. For details, refer to the 2014 Annual Report.
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. Chapter 9 Financial Report
I. Auditor's Report
Is the semi-annual report audited?
□ Yes√ No
The Semi-Annual Report of the Company has not been audited.
II. Financial Statements
The monetary unit used in the Notes to Financial Statements is RMB Yuan.
1. Consolidated Balance Sheet
Prepared by: Shenzhen SEG Co., Ltd.
June 30, 2015
Unit: Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current assets:|||
|Monetary funds|156,272,010.47|383,056,680.70|
|Deposit reservation for balance|0.00|0.00|
|Loans to banks and other financial|||
||30,000,000.00|30,000,000.00|
|institutions|||
|Financial assets measured by fair value|||
|and whose change was counted into|||
|current gains and losses|||
|Derivative financial assets|||
|Notes receivable|170,000.00|84,618.08|
|Accounts receivable|135,773,418.34|185,866,040.16|
|Advances|107,855,702.35|94,633,317.07|
|Premiums receivable|||
|Reinsurance accounts receivable|||
|Reinsurance deposit receivable|||
|Interest receivable|||
|Dividends receivable|||
|Other accounts receivable|44,545,199.45|95,366,156.27|
|Redemptory monetary capital for|||

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|resale|||
|Inventory|413,535,408.37|278,281,586.72|
|Held-for-sale assets|||
|Non-current assets due within one year|||
|Other current assets|335,437,135.06|443,543,013.49|
|Total current assets|1,223,588,874.04|1,510,831,412.49|
|Non-current assets:|||
|Loans and advances issued|493,775,722.84|452,517,072.06|
|Financial assets available for sale|34,772,389.13|34,350,035.45|
|Held-to-maturity investment|0.00|0.00|
|Long-term receivables|0.00|0.00|
|Long-term equity investment|179,023,560.26|82,100,197.01|
|Investment properties|453,192,705.59|462,562,882.78|
|Fixed assets|38,829,032.18|41,408,298.43|
|Construction in progress|216,000.00|0.00|
|Engineering materials|||
|Disposal of fixed assets|||
|Productive biological assets|||
|Oil & gas assets|||
|Intangible assets|1,058,497.63|655,587.54|
|Development expenses|||
|Goodwill|10,328,927.82|10,328,927.82|
|Long-term expenses to be amortized|48,942,524.07|49,768,678.00|
|Deferred income tax assets|12,218,054.88|10,539,563.16|
|Other non-current assets|0.00|4,655,063.54|
|Total non-current assets|1,272,357,414.40|1,148,886,305.79|
|Total assets|2,495,946,288.44|2,659,717,718.28|
|Current liabilities:|||
|Short-term borrowing|325,000,000.00|189,246,687.38|
|Loans from central bank|||
|Deposits attracted and placement from|||
|banks and other financial institutions|||
|Loans from banks and other financial|||
|institutions|||
|Financial liabilities measured by fair|||

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|value and whose change was counted|||
|into current gains and losses|||
|Derivative financial liabilities|||
|Notes payable|||
|Accounts payable|95,811,903.31|200,129,651.92|
|Advances from customers|152,803,919.56|183,059,311.31|
|Financial assets sold for repurchase|||
|Service charges and commissions|||
|payable|||
|Payroll payable|10,503,337.50|18,858,843.33|
|Taxes payable|43,588,325.48|39,445,696.47|
|Interest payable|85,722.22|10,295,250.65|
|Dividends payable|3,240,318.18|1,717,882.74|
|Other payables|201,563,958.02|244,804,403.06|
|Reinsurance accounts payable|||
|Insurance deposit|||
|Customer brokerage deposits|||
|Securities underwriting brokerage|||
|deposits|||
|Held-for-sale liabilities|||
|Non-current liabilities due within one|||
|year|||
|Other current liabilities||250,000,000.00|
|Total current liabilities|832,597,484.27|1,137,557,726.86|
|Non-current liabilities:|||
|Long-term borrowing|||
|Bonds payable|||
|Preferred stock|||
|Perpetual capital securities|||
|Long-term payables|||
|Payroll payable|||
|Special payables|||
|Estimated liabilities|||
|Deferred income|9,669,742.89|9,705,371.01|
|Deferred income tax liabilities|16,764,859.00|17,085,543.80|

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Other non-current liabilities|||
|Total non-current liabilities|26,434,601.89|26,790,914.81|
|Total liabilities|859,032,086.16|1,164,348,641.67|
|Owners' equity:|||
|Share capital|784,799,010.00|784,799,010.00|
|Other equity instruments|||
|Preferred stock|||
|Perpetual capital securities|||
|Capital reserve|506,543,476.91|404,727,257.72|
|Less: Treasury shares|0.00|0.00|
|Other comprehensive income|442,719.36|231,817.05|
|Special reserve|||
|Surplus public reserve|102,912,835.67|102,912,835.67|
|General risk provision|||
|Retained earnings|41,205,933.02|6,299,799.41|
|Total owners' equity attributable to the|||
||1,435,903,974.96|1,298,970,719.85|
|parent company|||
|Minority shareholders' equity|201,010,227.32|196,398,356.76|
|Total owners' equity|1,636,914,202.28|1,495,369,076.61|
|Total liabilities and owners' equity|2,495,946,288.44|2,659,717,718.28|

 Legal representative: Wang Li Person in charge of accounting: Liu Zhijun Responsible person of the accounting institution: Ying Huadong 2. Balance sheet of the parent company
June 30, 2015
Unit: Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current assets:|||
|Monetary funds|70,585,590.43|204,395,253.65|
|Financial assets measured by fair|||
|value and whose change was counted|||
|into current gains and losses|||
|Derivative financial assets|||
|Notes receivable|||
|Accounts receivable|||

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Advances|294,400.00|0.00|
|Interest receivable|208,333.00|897,225.78|
|Dividends receivable|1,575,000.00|0.00|
|Other accounts receivable|527,598,906.07|410,453,048.03|
|Inventory|820,368.20|786,589.00|
|Held-for-sale assets|||
|Non-current assets due within one|||
|year|||
|Other current assets|395,500,000.00|463,590,246.68|
|Total current assets|996,582,597.70|1,080,122,363.14|
|Non-current assets:|||
|Financial assets available for sale|33,515,392.83|33,515,392.83|
|Held-to-maturity investment|||
|Long-term receivables|||
|Long-term equity investment|449,007,086.50|382,083,723.25|
|Investment properties|289,659,415.56|294,918,970.98|
|Fixed assets|19,101,341.06|19,583,422.45|
|Construction in progress|||
|Engineering materials|||
|Disposal of fixed assets|||
|Productive biological assets|||
|Oil & gas assets|||
|Intangible assets|720,493.97|271,067.06|
|Development expenses|||
|Goodwill|||
|Long-term expenses to be|||
||6,480,322.27|4,589,158.00|
|amortized|||
|Deferred income tax assets|8,254,062.87|8,354,062.87|
|Other non-current assets|0.00|1,313,063.54|
|Total non-current assets|806,738,115.06|744,628,860.98|
|Total assets|1,803,320,712.76|1,824,751,224.12|
|Current liabilities:|||
|Short-term borrowing|215,000,000.00|100,000,000.00|
|Financial liabilities measured by|||
|fair value and whose change was|||

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|counted into current gains and losses|||
|Derivative financial liabilities|||
|Notes payable|||
|Accounts payable|7,913.52|1,500.00|
|Advances from customers|30,750,802.37|65,628,441.87|
|Payroll payable|5,089,485.62|9,907,467.00|
|Taxes payable|31,610,080.65|20,697,003.64|
|Interest payable|85,722.22|10,237,500.66|
|Dividends payable|119,803.29|119,803.29|
|Other payables|90,103,394.72|87,202,387.17|
|Held-for-sale liabilities|||
|Non-current liabilities due within|||
|one year|||
|Other current liabilities||250,000,000.00|
|Total current liabilities|372,767,202.39|543,794,103.63|
|Non-current liabilities:|||
|Long-term borrowing|||
|Bonds payable|||
|Preferred stock|||
|Perpetual capital|||
|securities|||
|Long-term payables|||
|Payroll payable|||
|Special payables|||
|Estimated liabilities|||
|Deferred income|||
|Deferred income tax liabilities|9,500,000.00|9,500,000.00|
|Other non-current liabilities|||
|Total non-current liabilities|9,500,000.00|9,500,000.00|
|Total liabilities|382,267,202.39|553,294,103.63|
|Owners' equity:|||
|Share capital|784,799,010.00|784,799,010.00|
|Other equity instruments|||
|Preferred stock|||
|Perpetual capital|||

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|securities|||
|Capital reserve|507,771,483.63|405,955,264.44|
|Less: Treasury shares|||
|Other comprehensive income|||
|Special reserve|||
|Surplus public reserve|102,912,835.67|102,912,835.67|
|Retained earnings|25,570,181.07|-22,209,989.62|
|Total owners' equity|1,421,053,510.37|1,271,457,120.49|
|Total liabilities and owners' equity|1,803,320,712.76|1,824,751,224.12|

 Legal representative: Wang Li Person in charge of accounting: Liu Zhijun Responsible person of the accounting institution: Ying Huadong 3. Consolidated profit statement
June 2015
Unit: Yuan
||||
|-|-|-|
||Amount incurred in the report|Amount incurred in the previous period|
|Item|||
||period||
|I. Total operating revenue|425,219,054.09|337,216,748.01|
|Including: Operating revenue|374,555,135.61|316,141,381.01|
|Interest income|47,553,384.48|21,039,537.00|
|Earned premiums|||
|Service charges and commissions||35,830.00|
||3,110,534.00||
|income|||
|II. Total operating cost|358,714,002.72|279,600,778.34|
|Including: Operating cost|317,303,931.44|248,349,208.37|
|Interest expenses|3,159,048.64|1,693,472.23|
|Commissions|||
|Surrender value|||
|Net compensation pay-outs|||
|Net insurance deposit accrued|||
|Insurance dividends|||
|Reinsurance expenses|||
|Operating tax and surcharges|13,748,030.14|12,817,853.52|
|Sale expenses|941,405.12|1,002,320.62|
|Management expenses|16,004,563.26|15,637,568.42|

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
||Amount incurred in the reportperiod||
|Item||Amount incurred in the previous period|
|Financial cost|843,057.23|388,862.46|
|Loss from asset impairment|6,713,966.89|-288,507.28|
|Income from change of sound value (Loss|||
|is marked with "-")|||
|Income from investment (Loss is|5,451,963.64||
|||11,731,540.84|
|marked with "-")|||
|Including: Income from investment|-4,892,855.94||
|||-1,746,429.31|
|in joint ventures and associated enterprises|||
|Income from exchange (Loss is|||
|marked with "-")|||
|III. Operating profit (Loss is marked with "-")|71,957,015.01|69,347,510.51|
|Add: Non-operating revenue|1,045,979.11|1,242,335.04|
|Including: Gains on disposal of|18,693.10||
|||20,120.00|
|non-current assets|||
|Less: Non-operating expenses|815,788.94|131,965.13|
|Including: Loss from disposal of|196,424.21||
|||4,831.25|
|non-current assets|||
|IV. Total profit (Total loss is marked with "-")|72,187,205.18|70,457,880.42|
|Less: Income tax|20,121,370.92|18,633,100.05|
|V. Net profit (Net loss is marked with "-")|52,065,834.26|51,824,780.37|
|Net profit attributable to shareholders of|34,906,133.61||
|||37,645,842.28|
|the parent company|||
|Profit and loss of minority shareholders|17,159,700.65|14,178,938.09|
|VI. Net of tax of other comprehensive incomes|316,765.26|-72,819.60|
|Total owners' net of tax of other|210,902.31||
|comprehensive incomes attributable to the||-48,483.29|
|parent company|||
|1. Other comprehensive incomes that|||
|cannot be reclassified into gains and losses|||
|(1) Changes of net liabilities or net assets|||
|of the re-measured defined benefit plans|||
|(2) Shares of the investee of other|||
|comprehensive incomes that cannot be|||
|reclassified into gains and losses under the|||
|equity method|||
|2. Other comprehensive incomes that can|210,902.31||
|||-48,483.29|
|be categorized as gains and losses|||

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
||Amount incurred in the reportperiod||
|Item||Amount incurred in the previous period|
|(1) Shares of the investee of other|||
|comprehensive incomes that can be|||
|categorized as gains and losses under the|||
|equity method|||
|(2) Gains and losses from changes of fair|210,902.31||
|||-48,483.29|
|value of the available-for-sale financial assets|||
|(3) Held-to-maturity investments|||
|categorized as gains and losses from the|||
|available-for-sale financial assets|||
|(4) Effective gains or loss from cash flows|||
|(5) Translation difference of the financial|||
|statements in foreign currency Less:|||
|(6) Others|||
|Net of tax of other comprehensive incomes|105,862.95||
|||-24,336.31|
|attributable to minority shareholders|||
|VII. Total comprehensive income|52,382,599.52|51,751,960.77|
|Total comprehensive income attributable|35,117,035.92||
|||37,597,358.99|
|to shareholders of the parent company|||
|Total comprehensive income attributable|17,265,563.60||
|||14,154,601.78|
|to minority shareholders|||
|VIII. Earnings per share|||
|1. Basic earnings per share|0.0445|0.0480|
|2. Diluted earnings per share|0.0445|0.0480|

 Legal representative: Wang Li Person in charge of accounting: Liu Zhijun Responsible person of the accounting institution: Ying Huadong 4. Profit statement of the parent company
Unit: Yuan Item Amount incurred in the report period Amount incurred in the previous period I. Operating revenue 66,577,264.42 67,615,859.10 Less: Operating cost 44,695,244.80 40,521,511.25 Operating tax and 3,724,403.75 3,815,819.15 surcharges
Sale expenses 0.00 0.00
Management expenses 6,176,205.10 5,818,692.93
Financial cost -7,698,774.31 -6,964,476.32
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. Loss from asset impairment -400,000.00 -11,420.00 Income from change of sound
value (Loss is marked with "-")
Income from investment 37,619,081.12 27,365,616.55 (Loss is marked with "-")
Including: Income from -4,892,855.94 -1,746,429.31 investment in joint ventures and
associated enterprises
II. Operating profit (Loss is marked 57,699,266.20 51,801,348.64 with "-")
Add: Non-operating revenue 214,230.19 7,799.80 Including: Gains on
disposal of non-current assets
Less: Non-operating expenses 21,350.50 31,030.00 Including: Loss from 4,100.50 1,270.00 disposal of non-current assets
III. Total profit (Total loss is marked 57,892,145.89 51,778,118.44 with "-")
Less: Income tax 10,111,975.20 8,907,418.65 V. Net profit (Net loss is marked with 47,780,170.69 42,870,699.79 "-")
V. Net of tax of other comprehensive
incomes
1. Other comprehensive incomes
that cannot be reclassified into gains
and losses
(1) Changes of net
liabilities or net assets of the
re-measured defined benefit plans
(2) Shares of the investee
of other comprehensive incomes that
cannot be reclassified into gains and
losses under the equity method
2. Other comprehensive incomes
that can be categorized as gains and
losses
(1) Shares of the investee
of other comprehensive incomes that
can be categorized as gains and losses
under the equity method
(2) Gains and losses from
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. changes of fair value of the
available-for-sale financial assets
(3) Held-to-maturity
investments categorized as gains and
losses from the available-for-sale
financial assets
(4) Effective gains or
loss from cash flows
(5) Translation difference
of the financial statements in foreign
currency Less:
(6) Others
VI. Total comprehensive income 47,780,170.69 42,870,699.79 VII. Earnings per share
1. Basic earnings per share
2. Diluted earnings per share
Legal representative: Wang Li Person in charge of accounting: Liu Zhijun Responsible person of the accounting institution: Ying Huadong 5. Consolidated cash flow statement
June 2015
Unit: Yuan
||||
|-|-|-|
|Item|Amount incurred in the report period|Amount incurred in the previous period|
|I. Cash flow from operating activities:|||
|Cash received from sales of goods|713,661,591.72||
|||935,596,634.26|
|and rendering of services|||
|Net increase in customer bank|||
|deposits and placement from banks and|||
|other financial institutions|||
|Net increase in loans from central|||
|bank|||
|Net increase in borrowing from|||
|other financial institutions|||
|Cash received from premiums of|||
|primary insurance contracts|||
|Net cash received from|||
|reinsurance business|||
|Net increase in deposits from|||
|policyholders and investment|||

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Item|Amount incurred in the report period|Amount incurred in the previous period|
|Net increase of financial assets|||
|measured by fair value and whose|||
|change was counted into current gains|||
|and losses|||
|Cash received from interest and|48,000,243.60||
|||23,827,215.54|
|commissions|||
|Net increase of loans from banks|||
|and other financial institutions|||
|Net increase of redemption capital|||
|Tax refunds|88,433,998.57|14,612,922.49|

 Other cash received relating to 230,075,360.61 207,915,740.34 operating activities
Subtotal of cash inflow from 1,080,171,194.50 1,181,952,512.63 operating activities
||||
|-|-|-|
|Cash paid for goods and service|824,078,559.71|946,283,803.58|
|Net increase of loans to customers|48,372,311.47||
|||-15,979,866.00|
|and advances|||
|Net increase in deposits with|||
|central bank and other financial|||
|institutions|||
|Cash paid for compensation|||
|pay-outs of primary insurance|||
|contracts|||
|Cash paid for interest, service|24,453.96||
|||423,331.00|
|charges, and commissions|||
|Cash paid as insurance dividends|||
|Cash paid to and on behalf of|51,910,984.07||
|||44,575,412.97|
|employees|||
|Taxes paid|62,553,032.06|98,500,207.88|
|Other cash paid relating to|191,819,686.85||
|||212,531,819.79|
|operating activities|||
|Subtotal of cash outflow in operating|1,178,759,028.12||
|||1,286,334,709.22|
|activities|||
|Net cash flow from operating activities|-98,587,833.62|-104,382,196.59|
|II. Cash flows from investing|||
|activities:|||
|Cash received from withdrawal of|1,318,877,729.90||
|||2,008,400,000.00|
|investment|||

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Item|Amount incurred in the report period|Amount incurred in the previous period|
|Cash received from investment|10,137,874.16||
|||13,477,970.15|
|income|||
|Net cash received from disposal|28,493.50||
|of fixed assets, intangible assets and||20,100.00|
|other long-term assets|||
|Net cash received from disposal|||
|of subsidiaries and other business units|||
|Other cash received relating to|||
|investing activities|||
|Subtotal of cash inflow from investing|1,329,044,097.56||
|||2,021,898,070.15|
|activities|||
|Cash paid for purchase and|9,058,685.65||
|construction of fixed assets, intangible||7,506,324.71|
|assets and other long-term assets|||
|Cash paid for investment|1,243,610,000.00|2,044,679,000.00|
|Net increase of mortgage loans|||
|Net cash paid for acquisition of|||
|subsidiaries and other business units|||
|Other cash paid relating to|||
|investing activities|||
|Subtotal of cash outflow in investing|1,252,668,685.65||
|||2,052,185,324.71|
|activities|||
|Net cash flow from investing activities|76,375,411.91|-30,287,254.56|
|III. Cash flow from financing|||
|activities:|||
|Cash received from attraction of|||
|investment|||
|Including: Cash received by|||
|subsidiaries from investment of|||
|minority shareholders|||
|Borrowings received|295,000,000.00|266,000,000.00|
|Cash received from bond issue|||
|Other cash received relating to|||
|||250,000,000.00|
|financing activities|||
|Subtotal of cash inflow from financing|295,000,000.00||
|||516,000,000.00|
|activities|||
|Cash repayments of amounts|409,246,687.38||
|||78,049,280.96|
|borrowed|||

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Item|Amount incurred in the report period|Amount incurred in the previous period|
|Cash paid for dividend and profit|31,895,839.49||
|||9,295,476.51|
|distribution or interest payment|||
|Including: Dividends and profit|10,728,693.04||
|paid by subsidiaries to minority||2,280,000.00|
|shareholders|||
|Other cash paid relating to|58,429,722.92||
|||240,000.00|
|financing activities|||
|Subtotal of cash outflow in financing|499,572,249.79||
|||87,584,757.47|
|activities|||
|Net cash flow arising from financing|-204,572,249.79||
|||428,415,242.53|
|activities|||
|IV. Influence of exchange rate|1.27||
|fluctuation on cash and cash||7.39|
|equivalents|||
|V. Net increase in cash and cash|-226,784,670.23||
|||293,745,798.77|
|equivalents|||
|Add: Opening balance of cash and|382,056,680.70||
|||335,593,493.81|
|cash equivalents|||
|VI. Ending balance of cash and cash|155,272,010.47||
|||629,339,292.58|
|equivalents|||

Legal representative: Wang Li Person in charge of accounting: Liu Zhijun Responsible person of the accounting institution: Ying Huadong 6. Cash flow statement of the parent company
June 2015
Unit: Yuan
||||
|-|-|-|
|Item|Amount incurred in the report period|Amount incurred in the previous period|
|I. Cash flow from operating activities:|||
|Cash received from sales of goods|46,077,293.80||
|||56,440,164.28|
|and rendering of services|||
|Tax refunds|||
|Other cash received relating to|134,093,553.11||
|||380,734,537.10|
|operating activities|||
|Subtotal of cash inflow from operating|180,170,846.91||
|||437,174,701.38|
|activities|||
|Cash paid for goods and service|27,279,852.92|13,854,524.96|

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Item|Amount incurred in the report period|Amount incurred in the previous period|
|Cash paid to and on behalf of|18,281,258.17||
|||16,227,816.49|
|employees|||
|Taxes paid|27,836,566.09|72,620,128.50|
|Other cash paid relating to|224,334,962.62||
|||424,319,316.44|
|operating activities|||
|Subtotal of cash outflow in operating|297,732,639.80||
|||527,021,786.39|
|activities|||
|Net cash flow from operating activities|-117,561,792.89|-89,847,085.01|
|II. Cash flows from investing|||
|activities:|||
|Cash received from withdrawal of|1,258,100,000.00||
|||1,824,000,000.00|
|investment|||
|Cash received from investment|41,546,585.40||
|||12,123,227.48|
|income|||
|Net cash received from disposal|||
|of fixed assets, intangible assets and|||
|other long-term assets|||
|Net cash received from disposal|||
|of subsidiaries and other business units|||
|Other cash received relating to|||
|investing activities|||
|Subtotal of cash inflow from investing|1,299,646,585.40||
|||1,836,123,227.48|
|activities|||
|Cash paid for purchase and|251,207.00||
|construction of fixed assets, intangible||689,269.32|
|assets and other long-term assets|||
|Cash paid for investment|1,160,600,000.00|1,864,000,000.00|
|Net cash paid for acquisition of|||
|subsidiaries and other business units|||
|Other cash paid relating to|||
|investing activities|||
|Subtotal of cash outflow in investing|1,160,851,207.00||
|||1,864,689,269.32|
|activities|||
|Net cash flow from investing activities|138,795,378.40|-28,566,041.84|
|III. Cash flow from financing|||
|activities:|||
|Cash received from attraction of|||
|investment|||

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Item|Amount incurred in the report period|Amount incurred in the previous period|
|Borrowings received|215,000,000.00|180,000,000.00|
|Cash received from bond issue|||
|Other cash received relating to|||
|||250,000,000.00|
|financing activities|||
|Subtotal of cash inflow from financing|215,000,000.00||
|||430,000,000.00|
|activities|||
|Cash repayments of amounts|350,000,000.00||
|||8,000,000.00|
|borrowed|||
|Cash paid for dividend and profit|20,043,250.00||
|||1,467,733.34|
|distribution or interest payment|||
|Other cash paid relating to|||
|financing activities|||
|Subtotal of cash outflow in financing|370,043,250.00||
|||9,467,733.34|
|activities|||
|Net cash flow arising from financing|-155,043,250.00||
|||420,532,266.66|
|activities|||
|IV. Influence of exchange rate|1.27||
|fluctuation on cash and cash||7.39|
|equivalents|||
|V. Net increase in cash and cash|-133,809,663.22||
|||302,119,147.20|
|equivalents|||
|Add: Opening balance of cash and|204,395,253.65||
|||173,141,378.64|
|cash equivalents|||
|VI. Ending balance of cash and cash|70,585,590.43||
|||475,260,525.84|
|equivalents|||

Legal representative: Wang Li Person in charge of accounting: Liu Zhijun Responsible person of the accounting institution: Ying Huadong
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. 7. Consolidated statement of changes in owners' equity
June 2015
Amount incurred in the report period
Unit: Yuan
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Amount incurred in the report period|||||||||||||
||Owners' equity attributable to the parent company||||||||||||Total owners' equity|
||Share capital|Other equity instruments||||||||||Minority||
|Item||||||||||||||
|||||||Less:|Other|||General||||
||||Perpetual|Others||||Special|Surplus public||Retained|shareholders'||
|||Preferred|||Capital reserve|Treasury|comprehensive|||risk||||
||||capital|||||reserve|reserve||earnings|equity||
|||Shares||||shares|income|||provision||||
||||securities|||||||||||
|I. Ending balance|784,799,010.00||||||||||||1,495,369,076.61|
|of the previous|||||404,727,257.72||231,817.05||102,912,835.67||6,299,799.41|196,398,356.76||
|year||||||||||||||
|Plus:||||||||||||||
|Change due to||||||||||||||
|alteration of||||||||||||||
|accounting||||||||||||||
|policies||||||||||||||
|Correction to||||||||||||||
|errors of the||||||||||||||
|previous period||||||||||||||
|Merger||||||||||||||
|of the enterprises||||||||||||||
|under the control||||||||||||||
|of a same entity||||||||||||||

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Amount incurred in the report period|||||||||||||
||Owners' equity attributable to the parent company|||||||||||||
||Share capital|Other equity instruments||||||||||Minority||
|Item||||||||||||||
|||||||Less:|Other|||General||||
||||Perpetual|||||Special|Surplus public||Retained|shareholders'|Total owners' equity|
|||Preferred|||Capital reserve|Treasury|comprehensive|||risk||||
||||capital|Others||||reserve|reserve||earnings|equity||
|||Shares||||shares|income|||provision||||
||||securities|||||||||||
|Others||||||||||||||
|II. Beginning|784,799,010.00|||||||||||||
|balance of the|||||404,727,257.72||231,817.05||102,912,835.67||6,299,799.41|196,398,356.76|1,495,369,076.61|
|current year||||||||||||||
|III. Increase and||||||||||||||
|decrease of the||||||||||||||
|current year|||||101,816,219.19||210,902.31||||34,906,133.61|4,611,870.56|141,545,125.67|
|(Decrease is||||||||||||||
|marked with "-")||||||||||||||
|1. Total||||||||||||||
|comprehensive|||||||210,902.31||||34,906,133.61|17,265,563.60|52,382,599.52|
|income||||||||||||||
|2. Capital||||||||||||||
|invested or||||||||||||||
|decreased by||||||||||||||
|owners||||||||||||||
|(1) Ordinary||||||||||||||
|shares invested||||||||||||||
|by the||||||||||||||
|shareholders||||||||||||||
|(2) Capitals||||||||||||||

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Amount incurred in the report period|||||||||||||
||Owners' equity attributable to the parent company|||||||||||||
||Share capital|Other equity instruments||||||||||Minority||
|Item||||||||||||||
|||||||Less:|Other|||General||||
||||Perpetual|||||Special|Surplus public||Retained|shareholders'|Total owners' equity|
|||Preferred|||Capital reserve|Treasury|comprehensive|||risk||||
||||capital|Others||||reserve|reserve||earnings|equity||
|||Shares||||shares|income|||provision||||
||||securities|||||||||||
|invested by other||||||||||||||
|equity instrument||||||||||||||
|holders||||||||||||||
|(3) Amount of||||||||||||||
|share-based||||||||||||||
|payment included||||||||||||||
|in owners' equity||||||||||||||
|(4) Others||||||||||||||
|3. Profit||||||||||||||
|||||||||||||-12,653,693.04|-12,653,693.04|
|distribution||||||||||||||
|(1) Withdrawal of||||||||||||||
|surplus public||||||||||||||
|reserve||||||||||||||
|(2) Withdrawal of||||||||||||||
|general risk||||||||||||||
|provision||||||||||||||
|(3) Amount||||||||||||||
|distributed to||||||||||||||
|||||||||||||-12,653,693.04|-12,653,693.04|
|owners (or||||||||||||||
|shareholders)||||||||||||||
|(4) Others||||||||||||||

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Amount incurred in the report period|||||||||||||
||Owners' equity attributable to the parent company|||||||||||||
||Share capital|Other equity instruments||||||||||Minority||
|Item||||||||||||||
|||||||Less:|Other|||General||||
||||Perpetual|||||Special|Surplus public||Retained|shareholders'|Total owners' equity|
|||Preferred|||Capital reserve|Treasury|comprehensive|||risk||||
||||capital|Others||||reserve|reserve||earnings|equity||
|||Shares||||shares|income|||provision||||
||||securities|||||||||||
|4. Internal||||||||||||||
|carrying forward||||||||||||||
|of owners' equity||||||||||||||
|(1) Capital||||||||||||||
|reserve||||||||||||||
|transferred to||||||||||||||
|increase capital||||||||||||||
|(or share capital)||||||||||||||
|(2) Surplus||||||||||||||
|public reserve||||||||||||||
|transferred to||||||||||||||
|increase capital||||||||||||||
|(or share capital)||||||||||||||
|(3) Surplus||||||||||||||
|public reserve||||||||||||||
|compensating||||||||||||||
|losses||||||||||||||
|(4) Others||||||||||||||
|5. Special reserve||||||||||||||
|(1) Accrual of the||||||||||||||
|current year||||||||||||||

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Amount incurred in the report period|||||||||||||
||Owners' equity attributable to the parent company||||||||||||Total owners' equity|
||Share capital|Other equity instruments|||Capital reserve|||||||Minority||
|Item||||||||||||||
|||||||Less:|Other|||General||||
||||Perpetualcapitalsecurities|Others||||Special|Surplus public||Retained|shareholders'||
|||Preferred||||Treasury|comprehensive|||risk||||
|||||||||reserve|reserve||earnings|equity||
|||Shares||||shares|income|||provision||||
|(2) Amount||||||||||||||
|utilized in the||||||||||||||
|current period||||||||||||||
|6. Others|||||101,816,219.19||||||||101,816,219.19|
|IV. Ending|784,799,010.00||||506,543,476.91||||||||1,636,914,202.28|
|balance of the|||||||442,719.36||102,912,835.67||41,205,933.02|201,010,227.32||
|current period||||||||||||||

Amount of the previous year
Unit: Yuan
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Amount of the previous period|||||||||||||
||Owners' equity attributable to the parent company|||||||||||||
||Share capital|Other equity instruments|||Capital reserve|||||||Minority||
|Item||||||Less:|Other||||||Total owners'|
||||Perpetualcapitalsecurities|||||Special|Surplus public|General risk|Retained|shareholders'||
|||Preferred||||Treasury|comprehensive||||||equity|
|||||Others||||reserve|reserve|provision|earnings|equity||
|||Shares||||shares|income|||||||
|I. Ending balance of the|784,799,010.00||||404,357,267.73|||||||||
||||||||235,756.32||102,912,835.67||-42,080,494.64|185,584,512.58|1,435,808,887.66|
|previous year||||||||||||||
|Plus: Change due to||||||||||||||
|alteration of accounting||||||||||||||

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Amount of the previous period|||||||||||||
||Owners' equity attributable to the parent company|||||||||||||
||Share capital|Other equity instruments||||||||||Minority||
|Item||||||Less:|Other||||||Total owners'|
||||Perpetual|||||Special|Surplus public|General risk|Retained|shareholders'||
|||Preferred|||Capital reserve|Treasury|comprehensive||||||equity|
||||capital|Others||||reserve|reserve|provision|earnings|equity||
|||Shares||||shares|income|||||||
||||securities|||||||||||
|policies||||||||||||||
|Correction to errors||||||||||||||
|of the previous period||||||||||||||
|Merger of the||||||||||||||
|enterprises under the control of||||||||||||||
|a same entity||||||||||||||
|Others||||||||||||||
|II. Beginning balance of the|784,799,010.00|||||||||||||
||||||404,357,267.73||235,756.32||102,912,835.67||-42,080,494.64|185,584,512.58|1,435,808,887.66|
|current year||||||||||||||
|III. Increase and decrease of||||||||||||||
|the current year (Decrease is|||||||-48,483.29||||37,645,842.28|-2,952,891.72|34,644,467.27|
|marked with "-")||||||||||||||
|1. Total comprehensive income|||||||-48,483.29||||37,645,842.28|14,154,601.78|51,751,960.77|
|2. Capital invested or||||||||||||||
|decreased by owners||||||||||||||
|(1) Ordinary shares invested by||||||||||||||
|the shareholders||||||||||||||
|(2) Capitals invested by other||||||||||||||
|equity instrument holders||||||||||||||
|(3) Amount of share-based||||||||||||||

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Amount of the previous period|||||||||||||
||Owners' equity attributable to the parent company|||||||||||||
||Share capital|Other equity instruments||||||||||Minority||
|Item||||||Less:|Other||||||Total owners'|
||||Perpetual|||||Special|Surplus public|General risk|Retained|shareholders'||
|||Preferred|||Capital reserve|Treasury|comprehensive||||||equity|
||||capital|Others||||reserve|reserve|provision|earnings|equity||
|||Shares||||shares|income|||||||
||||securities|||||||||||
|payment included in owners'||||||||||||||
|equity||||||||||||||
|(4) Others||||||||||||||
|3. Profit distribution||||||||||||-17,107,493.50|-17,107,493.50|
|(1) Withdrawal of surplus||||||||||||||
|public reserve||||||||||||||
|(2) Withdrawal of general risk||||||||||||||
|provision||||||||||||||
|(3) Amount distributed to||||||||||||||
|||||||||||||-17,107,493.50|-17,107,493.50|
|owners (or shareholders)||||||||||||||
|(4) Others||||||||||||||
|4. Internal carrying forward of||||||||||||||
|owners' equity||||||||||||||
|(1) Capital reserve transferred||||||||||||||
|to increase capital (or share||||||||||||||
|capital)||||||||||||||
|(2) Surplus public reserve||||||||||||||
|transferred to increase capital||||||||||||||
|(or share capital)||||||||||||||
|(3) Surplus public reserve||||||||||||||

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Amount of the previous period|||||||||||||
||Owners' equity attributable to the parent company|||||||||||||
|||Other equity instruments||||||||||Minority||
|Item||||||Less:|Other||||||Total owners'|
||||Perpetual|||||Special|Surplus public|General risk|Retained|shareholders'||
||Share capital|Preferred|||Capital reserve|Treasury|comprehensive||||||equity|
||||capital|Others||||reserve|reserve|provision|earnings|equity||
|||Shares||||shares|income|||||||
||||securities|||||||||||
|compensating losses||||||||||||||
|(4) Others||||||||||||||
|5. Special reserve||||||||||||||
|(1) Accrual of the current year||||||||||||||
|(2) Amount utilized in the||||||||||||||
|current period||||||||||||||
|6. Others||||||||||||||
|IV. Ending balance of the||||||||||||||
||784,799,010.00||||404,357,267.73||187,273.03||102,912,835.67||-4,434,652.36|182,631,620.86|1,470,453,354.93|
|current period||||||||||||||

Legal representative: Wang Li Person in charge of accounting: Liu Zhijun Responsible person of the accounting institution: Ying Huadong
8. Statements of Changes in Owners' Equity of the Parent Company
June 2015
Amount incurred in the current period
Unit: Yuan
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||Current Period|||||||||||
||Share Capital|Other Equity Instruments||||||||||
|||||||Less:|Other|||||
|Item|||Perpetual||Capital Public|||Special|Surplus Public|Undistributed|Total Owners'|
|||Preferred||||Treasury|Comprehensive|||||
||||Capital|Others|Reserves|||Reserves|Reserves|Profits|Equity|
|||Shares||||Shares|Incomes|||||
||||Securities|||||||||
|I. Ending balance of the|784,799,010.00|||||||||||
||||||405,955,264.44||||102,912,835.67|-22,209,989.62|1,271,457,120.49|
|previous year||||||||||||
|Add: Changes in||||||||||||
|accounting policies||||||||||||
|Correction of||||||||||||
|prior period errors||||||||||||
|Others||||||||||||
|II. Beginning balance of|784,799,010.00|||||||||||
||||||405,955,264.44||||102,912,835.67|-22,209,989.62|1,271,457,120.49|
|the current year||||||||||||
|III. Increase or decrease||||||||||||
|of the current year ("-"|||||101,816,219.19|||||47,780,170.69|149,596,389.88|
|for losses)||||||||||||
|(I) Total comprehensive||||||||||||
|||||||||||47,780,170.69|47,780,170.69|
|incomes||||||||||||
|(II) Owners' capital||||||||||||
|investment or reduction||||||||||||
|1. Common shares||||||||||||
|invested by shareholders||||||||||||
|2. Capital invested by||||||||||||
|other equity instrument||||||||||||
|holders||||||||||||

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||Current Period|||||||||||
||Share Capital|Other Equity Instruments||||||||||
|||||||Less:|Other|||||
|Item|||Perpetual||Capital Public|||Special|Surplus Public|Undistributed|Total Owners'|
|||Preferred||||Treasury|Comprehensive|||||
||||Capital|Others|Reserves|||Reserves|Reserves|Profits|Equity|
|||Shares||||Shares|Incomes|||||
||||Securities|||||||||
|3. Amount of share-based||||||||||||
|payment recorded in||||||||||||
|owners' equity||||||||||||
|4. Others||||||||||||
|(III) Profit distribution||||||||||||
|1. Accrual of surplus||||||||||||
|public reserves||||||||||||
|2. Profit distribution to||||||||||||
|owners (or shareholders)||||||||||||
|3. Others||||||||||||
|(IV) Internal carryover in||||||||||||
|owners' equity||||||||||||
|1. Transfer of capital||||||||||||
|public reserves into||||||||||||
|paid-in capital (or share||||||||||||
|capital)||||||||||||
|2. Transfer of surplus||||||||||||
|public reserves into||||||||||||
|paid-in capital (or share||||||||||||
|capital)||||||||||||
|3. Compensation of||||||||||||
|losses with surplus public||||||||||||

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||Current Period|||||||||||
||Share Capital|Other Equity Instruments||||||||||
|||||||Less:|Other|||||
|Item|||Perpetual||Capital Public|||Special|Surplus Public|Undistributed|Total Owners'|
|||Preferred||||Treasury|Comprehensive|||||
||||Capital|Others|Reserves|||Reserves|Reserves|Profits|Equity|
|||Shares||||Shares|Incomes|||||
||||Securities|||||||||
|reserves||||||||||||
|4. Others||||||||||||
|(V) Special reserves||||||||||||
|1. Accrual in the current||||||||||||
|period||||||||||||
|2. Use in the current||||||||||||
|period||||||||||||
|(VI) Others|||||101,816,219.19||||||101,816,219.19|
|IV. Ending balance of the|784,799,010.00||||||||||1,421,053,510.37|
||||||507,771,483.63||||102,912,835.67|25,570,181.07||
|current period||||||||||||

Amount incurred in the previous year
Unit: Yuan
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||Previous Period|||||||||||
||Share Capital|Other Equity Instruments||||||||||
|||||||Less:|Other|||||
|Item|||Perpetual||Capital Public|||Special|Surplus Public|Undistributed|Total Owners'|
|||Preferred||||Treasury|Comprehensive|||||
||||Capital|Others|Reserves|||Reserves|Reserves|Profits|Equity|
|||Shares||||Shares|Incomes|||||
||||Securities|||||||||
|I. Ending balance of the|784,799,010.00|||||||||||
||||||405,652,893.32||||102,912,835.67|-55,097,962.63|1,238,266,776.36|
|previous year||||||||||||
|Add: Changes in||||||||||||

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||Previous Period|||||||||||
||Share Capital|Other Equity Instruments||||||||||
|||||||Less:|Other|||||
|Item|||Perpetual||Capital Public|||Special|Surplus Public|Undistributed|Total Owners'|
|||Preferred||||Treasury|Comprehensive|||||
||||Capital|Others|Reserves|||Reserves|Reserves|Profits|Equity|
|||Shares||||Shares|Incomes|||||
||||Securities|||||||||
|accounting policies||||||||||||
|Correction of||||||||||||
|prior period errors||||||||||||
|Others||||||||||||
|II. Beginning balance of|784,799,010.00|||||||||||
||||||405,652,893.32||||102,912,835.67|-55,097,962.63|1,238,266,776.36|
|the current year||||||||||||
|III. Increase or decrease||||||||||||
|of the current year ("-"||||||||||42,870,699.79|42,870,699.79|
|for losses)||||||||||||
|(1) Total comprehensive||||||||||||
|||||||||||42,870,699.79|42,870,699.79|
|incomes||||||||||||
|(2) Owners' capital||||||||||||
|investment or reduction||||||||||||
|1. Common shares||||||||||||
|invested by shareholders||||||||||||
|2. Capital invested by||||||||||||
|other equity instrument||||||||||||
|holders||||||||||||
|3. Amount of share-based||||||||||||
|payment recorded in||||||||||||
|owners' equity||||||||||||
|4. Others||||||||||||

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||Previous Period|||||||||||
||Share Capital|Other Equity Instruments||||||||||
|||||||Less:|Other|||||
|Item|||Perpetual||Capital Public|||Special|Surplus Public|Undistributed|Total Owners'|
|||Preferred||||Treasury|Comprehensive|||||
||||Capital|Others|Reserves|||Reserves|Reserves|Profits|Equity|
|||Shares||||Shares|Incomes|||||
||||Securities|||||||||
|(III) Profit distribution||||||||||||
|1. Accrual of surplus||||||||||||
|public reserves||||||||||||
|2. Profit distribution to||||||||||||
|owners (or shareholders)||||||||||||
|3. Others||||||||||||
|(IV) Internal carryover in||||||||||||
|owners' equity||||||||||||
|1. Transfer of capital||||||||||||
|public reserves into||||||||||||
|paid-in capital (or share||||||||||||
|capital)||||||||||||
|2. Transfer of surplus||||||||||||
|public reserves into||||||||||||
|paid-in capital (or share||||||||||||
|capital)||||||||||||
|3. Compensation of||||||||||||
|losses with surplus public||||||||||||
|reserves||||||||||||
|4. Others||||||||||||
|(V) Special reserves||||||||||||

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||Previous Period|||||||||||
||Share Capital|Other Equity Instruments||||||||||
|||||||Less:|Other|||||
|Item|||Perpetual||Capital Public|||Special|Surplus Public|Undistributed|Total Owners'|
|||Preferred||||Treasury|Comprehensive|||||
||||Capital|Others|Reserves|||Reserves|Reserves|Profits|Equity|
|||Shares||||Shares|Incomes|||||
||||Securities|||||||||
|1. Accrual in the current||||||||||||
|period||||||||||||
|2. Use in the current||||||||||||
|period||||||||||||
|(VI) Others||||||||||||
|IV. Ending balance of the|784,799,010.00|||||||||||
||||||405,652,893.32||||102,912,835.67|-12,227,262.84|1,281,137,476.15|
|current period||||||||||||

Legal representative: Wang Li Person in charge of accounting: Liu Zhijun Person in charge of the accounting institution: Ying Huadong
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. III. Company Profile
1. Registered Address, Organizational Form, and Headquarters Address of the Company
Shenzhen SEG Co., Ltd. (hereinafter referred to as "Company" or "the 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 authorities of Shenzhen Municipality and the State in accordance with relevant provisions in the Company Law of thePeople’s Republic of China. The Company received a Business License for Enterprise Legal Person numbered SHEN SI ZI N16886, with a registration number of 440301103573251. And upon the approval of the securities administration departments of Shenzhen Municipality and the State, theCompany’s B shares and A shares started to be listed and traded in Shenzhen Stock Exchange respectively in July and December, 1996. On June 7th, 2006, a resolution on the split share structure reform of the Company was adopted in the general meeting of shareholders. According to the plan on directional conversion of capital public reserves into share capital that is adopted in the general meeting of shareholders, the Company distributed such converted share capital to tradable A share shareholders. Such shareholders obtained 4.6445 converted shares for each 10 shares, which totaled 40,233,322 converted shares. As a result, non-tradable A shares were also authorized to be listed and circulated. Among the converted shares obtained by the tradable A share shareholders, 6,997,054 shares that were received due to the Company's share capital expansion were deducted, and the rest 33,236,268 shares were the consideration paid to the tradable A share shareholders by non-tradable A share shareholders under fixed arrangements.
As of December 31, 2014, the total shares of the Company amounted to 784,799,010 shares, including 26,689 shares with trading limited conditions and 784,772,321 shares without trading limited conditions. The registered capital is 784,799,010 Yuan and the registered address is 31/F, Tower A, Stars Plaza, Huaqiang Road (N), Futian District, Shenzhen. The parent company is Shenzhen SEG Group Co., Ltd. and the actual controller of the group is Shenzhen Municipal People's Government State-owned Assets Supervision and Administration Commission. Business Scope
Scope for general business: domestic commerce, goods supply and sale (excluding commodities under special operation, control and sale), development of industrial projects (specific projects shall be separately applied for), economic information consultancy, property lease, estate agency, and operation of SEG special electronics markets (the license for the special markets shall be separately applied for).
Business Nature and Main Business Activities of the Company
The Company belongs to the business service industry, and is mainly engaged in the operation and management of professional electronics markets, leasing service, and other services in the tertiary industry.
1. Scope of the Consolidated Financial Statement
There are 20 entities included in the scope of the consolidated financial statement in the current period, and the entities are listed in the following table.
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||||
|-|-|-|-|-|
|Subsidiary Name|Type of Subsidiary|Subprime|ShareholdingProportion (%)|Voting RightProportion (%)|
|Shenzhen SEG Baohua Enterprise Development Co.,Ltd.|Share-controlledsubsidiary|---|66.58|66.58|
|Shenzhen Mellow Orange Business HotelManagement Co., Ltd.|Share-controlledgrandchild company|2|66.58|66.58|
|Shenzhen SEG Industrial Investment Co., Ltd.|Wholly-ownedsubsidiary|---|100.00|100.00|
|Changsha SEG Development Co., Ltd.|Share-controlledsubsidiary|---|46.00|51.00|
|Shenzhen SEG Electronics Market Management Co.,Ltd.|Share-controlledsubsidiary|---|70.00|70.00|
|Suzhou SEG Electronics Market Co., Ltd.|Share-controlledsubsidiary|---|45.00|45.00|
|Xi’an SEG Electronics Market Co., Ltd.|Share-controlledsubsidiary|---|65.00|65.00|
|Shenzhen SEG Credit Co., Ltd.|Share-controlledsubsidiary|---|53.02|53.02|
|Shenzhen SEG E-Commerce Co., Ltd.|Share-controlledsubsidiary|---|51.00|51.00|
|Shenzhen SEG Electronics Market Management Co.,Ltd.|Wholly-ownedsubsidiary|---|100.00|100.00|
|Xi'an Hairong SEG Electronics Market Co., Ltd.|Share-controlledsubsidiary|---|51.00|51.00|
|Wujiang SEG Electronics Market Co., Ltd.|Share-controlledsubsidiary|---|51.00|51.00|
|Wuxi SEG Electronics Market Co., Ltd.|Share-controlledsubsidiary|---|51.00|51.00|
|Shunde SEG Electronics Market Management Co.,Ltd.|Wholly-ownedsubsidiary|---|100.00|100.00|
|Nanning SEG Electronics Market Management Co.,Ltd.|Wholly-ownedsubsidiary|---|100.00|100.00|
|Nantong SEG Times Square Development Co., Ltd.|Wholly-ownedsubsidiary|---|100.00|100.00|
|Yantai SEG Times Square Development Co., Ltd.|Share-controlledsubsidiary|---|90.00|90.00|
|Nantong SEG Commercial Operation ManagementCo., Ltd.|Wholly-ownedsubsidiary|---|100.00|100.00|

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
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|Suzhou SEG Digital Plaza Management Co., Ltd.|Wholly-ownedsubsidiary|---|100.00|100.00|
|Xi'an Fengdong New Town SEG Times SquareProperties Co., Ltd.|Wholly-ownedsubsidiary|---|100.00|100.00|

No changes occur in the entities included in the scope of the consolidated financial statement in the current period, in comparison with those included in the scope of the consolidated financial statement at the beginning of the year.
IV. Basis for Preparation of Financial Statements
1. Preparation Basis
The Company conducts recognition and measurement based on the continuous operation principle and the transactions and events that actually occur and in accordance with the Accounting Standards for Business Enterprises (ASBE), which comprises a basic standard, the application guide of the ASBE, the interpretation of the ASBE, and other relevant regulations (hereinafter collectively called "ASBE") promulgated by the Ministry of Finance of the People's Republic of China. Financial statements are prepared on such a basis and the No. 15 Preparation Conventions of Information Disclosure by Companies Offering Securities to the Public - General Regulations on Financial Report (amended in 2014) released by China Securities Regulatory Commission. 2. Continuous Operation
No event or situation that raises major problems for the continuous operation capability of the Company occurs within 12 months since the end of the report period.
V. Important Accounting Policies and Accounting Estimates
1. Statement on ASBE Compliance
Financial statements prepared by the Company comply with the requirements of the ASBE and truthfully and completely reflect the financial conditions, operating results, and cash flow, and other relevant information of the Company in the report period.
2. Accounting Period
One fiscal year lasts from January
1st
to December
31st
of the Gregorian calendar.
3. Operating Cycle
One operating cycle lasts from January
1st
to December
31st
of the Gregorian calendar.
4. Recording Currency
Renminbi is the recording currency of the financial statements of the Company.
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. 5. Accounting Treatment Methods for Business Combinations under or not under Common Control If clauses, conditions, and economic impact of each transaction involved in the step-by-step business combination conform to the following one or multiple cases, multiple transactions are considered as a package deal for accounting treatment:
(1) These transactions are concluded simultaneously or concluded when the impact on each other is considered. (2) These transactions reach a complete business result as a whole.
(3) The occurrence of one transaction depends on the occurrence of at least other one transaction.
(4) One transaction alone is deemed uneconomical but deemed economical when it is considered with other transactions together.
Business combination under common control
① Individual financial statements
If the Company pays cash, transfers non-monetary assets, assumes liabilities, or issues equity securities as the consideration of a business combination, the shares of the book value of the owners' equity of a combined party in the consolidated financial statement of the final controlling party on the combination date is used as the initial investment cost of the long-term equity investment. The capital public reserves are adjusted for the difference between the initial investment cost of the long-term equity investment and the paid-in combination consideration, and retained incomes are adjusted if the capital public reserves are insufficient for offsetting. If consideration exists and estimated liabilities or assets need to be recognized, the capital public reserves (capital premium or share premium) are adjusted for the difference between the amount of the estimated liabilities or assets and subsequent contingent consideration settlement amount, and retained incomes are adjusted if the capital public reserves are insufficient for offsetting.
For a business combination achieved through multiple transactions, if these transactions belong to a package deal, each transaction is considered as a transaction with control rights for accounting treatment; if these transactions do not belong to a package deal, the capital public reserves are adjusted for the difference, on the date that the control rights are obtained, between the initial investment cost of the long-term equity investment and the sum of the book value of the long-term equity investment before a combination is reached and the book value of new consideration paid for obtained shares on the combination date, and the retained incomes are adjusted if the capital public reserves are insufficient for offsetting. For the equity investment held prior to the combination date, accounting treatment is not conducted on other comprehensive incomes accounted using the equity method or recognized by using by financial instruments and accounted and recognized according to measurement criteria, till the same basis for directly disposing of relevant assets or liabilities by an invested organization is adopted for accounting treatment when this investment is disposed of; accounting treatment is not conducted on changes in owners' equity in the invested organization' net assets accounted and recognized using the equity method, except net profits and losses, other comprehensive incomes, and profit distribution, till they are transferred into the profits and losses in the current period when such an investment is disposed of.
Direct relevant fees arising from a combination, including audit fees, evaluation fees, legal service fees paid for the combination are recorded, at the occurrence time, in the profits and losses in the current period. For transaction fees that are directly relevant to the issuance of equity instruments used as the combination consideration, the capital pubic reserves are used for offsetting. If the capital public reserves are insufficient for offsetting, the surplus public reserves and undistributed profits are used for offsetting in sequence. Transaction
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. fees that are directly relevant to the issuance of liability instruments used as the combination considerations, are recorded into liability instruments as the initial recognition amount.
If a combined party has consolidated financial statements, the initial investment cost of the long-term equity investment is determined based on the owners' equity attributable to the parent company in the consolidated financial statements of the combined party on the combination date.
② Consolidated financial statements
Assets and liabilities obtained by the combing party through a business combination are measured at the book value of owners' equity of the combined party in the consolidated financial statement of the final controlling party on the combination date.
For a business combination achieved through multiple transactions, if these transactions belong to a package deal, each transaction is considered as a transaction with control rights for accounting treatment; if these transactions do not belong to a package deal, the long-term equity investment held by the combining party prior to the combination, and recognized profits and losses, other comprehensive incomes, and changes in other owners' equity between the acquisition date and the date on which the controlling party and controlled party are under the final control of the same party, whichever is later, and the combination date, are used to offset the retained incomes at the period beginning or the profits or losses in the current period in the comparison statement period. When the accounting policies of each combined party are inconsistent with those of the Company, the Company makes adjustments on the combination date in accordance with its own accounting policies and then on this basis, conducts recognition in accordance with the ASBE.
Business combination not under common control
The cost for a business combination not under common control is the fair value of the assets paid, liabilities incurred or assumed, and equity instruments or liability instruments issued for the Company to acquire the control over the acquiree on the acquisition date. If future items that are likely to influence the combination cost, for which a relevant agreement has been reached in the combination contract, on the acquisition date, are estimated very possible to occur and the amount of their influence on the combination cost can be measured reliably, these future items are also recorded in the combination cost.
The audit, legal service, evaluation and consulting, and other management fees paid by the Company for a business combination are recorded in the profits and losses in the current period at the time of occurrence. The transaction expenses of equity instruments and liability instruments issued by the Company as the combination consideration are recorded in the initial recognition amount of equity instruments or liability instruments.
If the combination cost is larger than the shares of the fair value of the acquiree's identifiable net assets obtained from the combination, the Company recognizes their difference as goodwill. If the combination cost is smaller than the shares of the fair value of the acquiree's identifiable net assets obtained from the combination and the result is the same after re-check, the Company records their difference in the profits and losses in the current period.
For a business combination not under common control achieved in steps through multiple exchange transactions, if these transactions belong to a package deal, each transaction is considered as a transaction with control rights for accounting treatment; if these transactions do not belong to a package deal, individual financial statements and consolidated financial statements are differentiated for accounting treatment:
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. A. In individual financial statements, for the equity investment held prior to the combination date and accounted using the equity method, the sum of the book value of the acquiree's equity investment held prior to the acquisition date and new investment cost obtained on the acquisition date is used as the initial investment cost of such an investment; for other comprehensive incomes accounted and recognized using the equity method in the equity investment held prior to the acquisition date, the same basis for directly disposing of relevant assets or liabilities by invested organizations is adopted for accounting treatment when this investment is disposed of. When the equity investment held prior to the combination date is recognized using financial instruments and is accounted according to measurement criteria, the sum of the fair value of the equity investment on the combination date and the new investment cost is used as the initial investment cost of the combination date. The difference between the fair value and the book value of the originally held equity and changes in the accumulative fair value that is originally recorded in other comprehensive incomes is transferred into investment incomes in the current period, to which the combination date belongs.
B. In consolidated financial statements, the acquiree's equity held prior to the acquisition date is re-measured at the equity's fair value on the acquisition date, and the difference between the fair value and the book value of the equity is recorded in investment incomes in the current period. If the acquiree's equity held prior to the acquisition date involves other comprehensive incomes accounted using the equity method, the involved other comprehensive incomes are transferred into investment incomes in the current period, to which the acquisition date belongs. 6. Preparation Method for Consolidated Financial Statements
The scope of the consolidated financial statements of the Company is determined on the basis of control, and all subsidiaries (including individual entities controlled by the parent company) are included in the scope.
The accounting policies and accounting period adopted by all the subsidiaries included in the scope of the consolidated financial statements shall be consistent with those of the Company. If inconsistency exists, the Company makes necessary adjustments according to its own accounting policies and accounting period when preparing the consolidated financial statements.
Consolidated financial statements are prepared by the Company based on the financial statements of the Company and subsidiaries and other relevant documents.
During the preparation of consolidated financial statements, the influence of internal transactions between the Company and its subsidiaries and among the subsidiaries on the consolidated balance sheet, consolidated profit statement, consolidated cash flow statement, and consolidated statement of changes in equity is offset.
When the current losses undertaken by the minority shareholders of a subsidiary are more than the shares enjoyed by the minority shareholders in the owners' equity of the subsidiary at the period beginning, the difference shall still be used to offset the equity of the minority shareholders.
If subsidiaries and business increase because of a business combination under common control in the report period, the period-beginning amount of the consolidated balance sheet is adjusted; the incomes, expenses, and profits of the subsidiaries and business from the beginning of the current period of the business combination to the end of the report period are included in the consolidated profit statement; the cash flow of the subsidiaries and business from the beginning of the current period of the business combination to the end of the report period is included in the consolidated cash flow statement.
If subsidiaries and business increase because of a business combination not under common control in the report period, the period-beginning amount of the consolidated balance sheet is not adjusted; the incomes, expenses, and
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. profits of the subsidiaries and business from the acquisition date to the end of the report period are included in the consolidated profit statement; the cash flow of the subsidiaries and business from the acquisition date to the end of the report period is included in the consolidated cash flow statement.
If the Company disposes of a subsidiary and business in the report period, the incomes, expenses, and profits of the subsidiary and business from the beginning of the current period to the disposal date are included in the consolidated profit statement, and the cash flow of the subsidiary and business from the beginning of the current period to the disposal date is included in the consolidated cash flow statement.
If the Company losses control over a subsidiary due to the disposal of a part of an equity investment or other reasons, the remaining equity, in the consolidated financial statements, shall be re-measured at its fair value on the date that the Company losses control over the subsidiary. (Consideration received from the equity disposal+ Fair value of the remaining equity– Shares of the subsidiary's net assets enjoyed by the Company that are calculated based on the original shareholding proportion since the acquisition date) shall be recorded in the investment incomes in the current period that the Company losses control over the subsidiary. Other comprehensive incomes in connection with the subsidiary's equity investment shall be transferred into the investment incomes in the current period when the Company losses control over the subsidiary.
7. Classification of Joint Arrangements and Accounting Treatment Method for Associates
(1) Classification of joint arrangements
The Company classifies joint arrangements into associates and joint ventures according to the structure, legal form, agreed clauses, other relevant facts and conditions of joint arrangements.
Joint arrangements reached not through independent entities are classified as associates, and joint arrangements reached through independent entities are classified as joint ventures. If definite evidence shows that a joint arrangement meets any of the following conditions and complies with relevant laws and regulations, the joint arrangement is classified as an associate:
① The legal form of the joint arrangement shows that the joint venture party owns rights to assets and undertakes obligations to liabilities in the arrangement.
② Clauses in the contract of the joint arrangement stipulate that the joint venture party owns rights to assets and undertakes obligations to liabilities in the arrangement.
③ Other relevant facts and conditions show that the joint venture party owns rights to assets and undertakes obligations to liabilities in the arrangement (for example, the joint venture party owns almost all outputs relevant to the joint arrangement), and the liquidation of liabilities involved in the joint arrangement continuously depends on the support of the joint venture party.
(2) Accounting treatment method for associates
The Company recognizes the following items relevant to the Company in the benefit shares of associates and conducts accounting treatment according to the ASBE:
① Assets held separately and assets that are jointly held by share
② Liabilities undertaken separately and liabilities that are jointly undertaken by share
③ Revenues arising from the sale of due shares of associate outputs that are held by the Company
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.④ Revenues arising from the sale of associate outputs that are enjoyed by the Company by share
⑤ Expenses incurred separately and expenses incurred on associates by share
If the Company invests or sells assets (except the assets that are a part of a business) to an associate, before the assets are sold by the associate to a third party, the Company recognizes only the part of the profits and losses arising from the transaction that are attributable to other participants of the associate. If the invested or sold assets encounter the asset impairment losses that conform to the Accounting Standards for Business Enterprises No.8– Impairment of Assets, the Company recognizes the losses in full amount.
If the Company purchases assets (except the assets that are a part of business) from an associate, before the assets are sold to a third party, the Company recognizes only the part of the profits and losses arising from the transaction that are attributable to other participants of the associate. If the purchased assets encounter the asset impairment losses that conform to the Accounting Standards for Business Enterprises No.8– Impairment of Assets, the Company recognizes the losses according to the shares undertaken by the Company.
The Company does not have joint control over an associate. If the Company owns rights to assets relevant to an associate and undertakes liabilities of the associate, the Company conducts accounting treatment according to the preceding principles. Otherwise, the Company shall conduct accounting treatment according to the ASBE. 8. Standard of Determination for Cash and Cash Equivalents
In the preparation of cash flow statements, the cash on hand and the bank deposits available for payment at any time, owned by the Company, are recognized as cash. The investments that meet the four conditions of shorter term (to be mature within 3 months from the acquisition date), strong liquidity, easiness in being converted into known amounts of cash, very low risk of value fluctuation are recognized as cash equivalents.
9. Foreign Currency Business and Translation of the Financial Statements in Foreign Currency
(1) Foreign currency business
At the initial recognition, foreign currency business is recorded into accounts after relevant amounts are translated into RMB at the spot exchange rate on the transaction date as the exchange rate for translation.
The amount of monetary items in foreign currency is translated at the spot exchange rate on the balance sheet date, and the translation differences caused are all recorded in the profits and losses in the current period, except the differences arising from the special foreign currency loans relevant to the assets whose purchase and construction meet the conditions for capitalization, which are handled according to the principles for capitalization of borrowing costs. The non-monetary items in foreign currency measured using the historical cost method is translated at the spot exchange rate on the transaction date and the amount in the recording currency is not changed.
The non-monetary items in foreign currency measured at fair value are translated at the spot exchange rate on the confirmation date of the fair value while the translation difference incurred is recorded in the profits and losses in the current period as the profits and losses arising from changes in the fair value. For available-for-sale non-monetary items in foreign currency, the translation difference incurred is recorded in other comprehensive incomes.
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. (2) Translation of the financial statements in foreign currency
The asset and liability items in the balance sheet are translated at the spot exchange rate on the balance sheet date. The owners' equity items except the "undistributed profit" item are translated at the spot exchange rate at the occurrence time. The revenue and expense items in the profit statement are translated at the spot exchange rate on the transaction date. Translation difference of financial statements in foreign currency that is incurred according to the preceding translation is recorded in other comprehensive incomes.
When an overseas operation is disposed of, the translation difference in the financial statements in foreign currency related to the overseas operation, which is listed under other comprehensive income items in the balance sheet, is transferred from the other comprehensive income items into the profits and losses in the current period in which the disposal is carried out. When an overseas operation is partially disposed of, the translation difference in the financial statements in foreign currency of the disposed part is calculated at the proportion of the disposal, and is transferred into the profits and losses in the current period in which the disposal is carried out.
10. Financial Instruments
Financial instruments include financial assets, financial liabilities, and equity instruments.
(1) Classification of financial instruments
The management, according to contract clauses of issued financial instruments and economic substances reflected by the financial instruments, rather than only in legal form, in combination with the purpose of acquiring to hold financial assets and undertake financial liabilities, classifies financial assets and liabilities into the following types: financial assets or liabilities measured at the fair rate and with changes recorded in the profits and losses in the current period, held-to-maturity investment, accounts receivable, available-for-sale financial assets, and other financial liabilities.
(2) Recognition basis and measurement method for financial instruments
① Financial assets (liabilities) measured at the fair value and with changes recorded in the profits and losses in the current period
Financial assets or liabilities measured at the fair value and with changes recorded in the profits and losses in the current period include transaction financial assets or liabilities, and financial assets or liabilities that are directly specified to be measured at the fair value and with changes recorded in the profits and losses in the current period. Transaction financial assets or liabilities refer to financial assets or liabilities that meet any of the following conditions:
A. The purpose of acquiring the financial assets or liabilities is for sale, re-purchase, or redemption.
B. Financial assets or liabilities are a part of the identifiable financial instrument portfolio under centralized management, and objective evidence shows that the Company recently manages the portfolio by using the short-term profit method.
C. Derivative financial instruments except those designated as financial instruments of effective hedging instruments, derivative instruments of financial guarantee contracts, and derivative instruments linked with the equity instrument investment that is not quoted in an active market and whose fair value cannot be reliably measured, and for which the equity instrument settlement needs to be delivered.
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. Financial assets or liabilities can be, during initial recognition, specified as the financial assets or liabilities measured at fair value and with changes recorded in the profits and only when they meet any of the following conditions:
A. Financial assets or liabilities specified can eliminate or obviously reduce inconsistency in the recognition or measurement of relevant benefits or losses caused by different measurement basis for financial assets or liabilities. B. Formal written files of risk management or investment policies record that the financial asset portfolio, financial liability portfolio, or financial asset and liability portfolio is managed and evaluated at the fair value and is reported to key managerial personnel.
C. Mixed instrument that contains one or more embedded derivative instruments, except that the embedded derivative instruments do not greatly change the cash flow of the mixed instrument, or the embedded derivative instruments shall not be split from relevant mixed instruments.
D. Mixed instrument of embedded derivative instruments that need to be split but cannot be separately measured at the acquisition time or on the subsequent balance sheet date.
For financial assets or liabilities measured at the fair value and with changes recorded in the profits and losses in the current period, the Company considers the fair value (with deduction of cash dividends declared but not distributed or bond interest unpaid with the term of interest payment expired) as the initial recognition amount at the time of acquisition, and records relevant transaction fees in the profits and losses in the current period. The interests and cash dividends obtained during the time of holding are recognized as investment incomes, and changes in the fair value are recorded in the profits and losses in the current period at the end of the period. At the time of disposal, the difference between the fair value and the initial recording amount in the account is recognized as investment incomes and the profits and losses arising from changes in the fair value are adjusted at the same time.
② Accounts receivable
For the credit receivable arising from the commodities sold or labor services provided by the Company and other enterprises' credit held by the Company other than the credit of priced debt instruments in an active market, including accounts receivable and other receivables, the Company uses the price money in contracts or agreements of the purchaser as the initial recognition amount. For financing-oriented credit receivable, the current value is used as the initial recognition amount.
At the time of collection or disposal, the difference between the price of acquisition and the book value of the accounts receivable is recorded in the profits and losses in the current period.
③ Held-to-maturity investment
Held-to-maturity investment refers to non-derivative financial assets whose maturity date is fixed, recovery amount is fixed or can be determined, and for which, the Company has clear intention and ability to hold to maturity.
For held-to-maturity investment, the Company considers the sum of the fair value (with the deduction of unpaid with the term of interest payment expired) and relevant transaction expenses as the initial recognition amount at the time of acquisition. During the period of holding, the interest revenue is calculated and recognized according to the amortized cost and the actual interest rate, and is recorded in the investment incomes. The actual interest rate is determined at the time of acquisition and remains unchanged within the anticipated existence period or a
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. shorter period applicable. At the time of disposal, the difference between the price of acquisition and the book value of the investment is recorded in investment incomes.
If the amount of the disposed held-to-maturity investment or financial assets that are reclassified as other financial assets is large relative to the amount of all held-to-maturity investments of the Company prior to sale or reclassification, the remaining held-to-maturity investment shall be immediately reclassified as available-for-sale financial assets after disposal or reclassification. The difference between the book value and the fair value of the investment on the reclassification date is recorded in other comprehensive incomes, and is transferred out when the available-for-sale financial assets encounter impairment or recognition termination, and is recorded in the profits and losses in the current period. Nevertheless, the following cases are excluded:
A. The sale date or reclassification date is close to the expiration date or redemption date of the investment (for example, within three months prior to expiration), and the market interest rate changes have no obvious influence on the fair value of the investment.
B. Enterprises have retrieved almost all initial principal according to the agreed payment mode in contracts. C. The sale or reclassification is caused by independent events that are out of control of enterprises, are anticipated not to happen repeatedly, and are hard to estimate reasonably.
④ Available-for-sale financial assets
Available-for-sale financial assets refer to available-for-sale non-derivative financial assets specified at the initial recognition and financial assets other than other types of financial assets.
For the available-for-sale financial assets, the Company uses the sum of the fair value (with the deduction of cash dividends declared but not distributed or the bond interest unpaid with the interest payment period expired) and relevant transaction expenses as the initial recognition amount at the time of acquisition. The interest or cash dividends obtained during the time of holding are recognized as investment incomes. The benefits or losses arising from changes in the fair value of available-for-sale financial assets, except the impairment losses and translation difference incurred by monetary financial assets in foreign currency, are directly recorded in other comprehensive incomes. At the disposal time of available-for-sale financial assets, the difference between the price of acquisition and the book value of the financial assets is recorded in the investment profits and losses. At the same time, the amount of the disposed part corresponding to the accumulative amount of changes in the fair value that are originally recorded in other comprehensive incomes is transferred out and recorded in investment profits and losses.
For an equity instrument investment that is not quoted in an active market and whose fair value cannot be reliably measured, and derivative financial assets linked with the equity instrument and for which the equity instrument settlement needs to be delivered, the Company conducts cost-based measurement.
⑤ Other financial liabilities
The sum of the fair value of such financial liabilities and relevant transaction expenses is used as the initial recognition amount. The amortized cost is adopted in the subsequent measurement.
(3) Recognition basis and measurement method for financial asset transfer
In the case of the transfer of the financial assets of the Company, if almost all the risks and remuneration in the ownership of the financial assets are transferred to the assignee, the recognition of such financial assets is terminated, and if almost all the risks and remuneration in the ownership of the financial assets are retained, the recognition of such financial assets is not terminated.
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. In the judgment of whether a financial asset transfer meets the above recognition termination conditions, the principle of attaching more importance to substance than form is adopted. The Company classifies financial asset transfer into complete transfer and partial transfer. Where the complete transfer of financial assets meets the recognition termination conditions, the difference between the following two amounts is recorded in the profits and losses in the current period:
① Book value of the transferred financial assets;
② Sum of the consideration received due to the transfer and the accumulative amount of changes in the fair value that are originally recorded in the owners' equity (involving the situation in which the transferred financial assets are available-for-sale financial assets).
If the partial transfer of financial assets meets the recognition termination conditions, the book value of all the transferred financial assets between the part with its recognition terminated and the part with its recognition not terminated, are apportioned separately at their relative fair values while the difference between the following two amounts is recorded in the profits and losses in the current period:
① Book value of the part with its recognition terminated;
② Sum of the consideration of the part with its recognition terminated and the amount of the part with its recognition terminated in the accumulative amount of changes in the fair value that are originally recorded in owners' equity (involving the situation in which the transferred financial assets are the available-for-sale financial assets).
Where the financial assets transfer does not meet the recognition termination conditions, the recognition of such financial assets is continued. The received consideration is recognized as a financial liability.
(4) Conditions for recognizing the termination of financial liabilities
If all or a part of current obligations of a financial liability are discharged, the recognition of the financial liability or a part of it is terminated. If the Company signs an agreement with the creditor to substitute an existing financial liability by assuming a new financial liability and the contract terms of the new financial liability and the existing one are different, the recognition of the existing financial liability is terminated and the new financial liability is recognized in the meantime.
If material alteration has been made to all or a part of contract terms of the existing financial liability, the recognition of the existing liability or a part of it is terminated and, in the meantime, the financial liability after the clause alteration is made is recognized as a new financial liability.
If the recognition of all or a part of a financial liability is terminated, the difference between the book value of the liability with its recognition terminated and the paid consideration (including non-cash assets transferred out or the new liability assumed) is recorded in the profits and losses in the current period.
If the Company repurchases a part of a financial liability, the total book value of the liability is allocated on the repurchase date according to the relative fair value of the part with its recognition continued and that with its recognition terminated. The difference between the book value allocated to the part with its recognition terminated and the paid consideration (including non-cash assets transferred out or the new liability assumed) is recorded in the profits and losses in the current period.
(5) Methods for determining the fair value of financial assets and liabilities
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. For the financial assets and financial liabilities that are measured at the fair value and exist in an active market, the Company determines their fair values based on the quotations in the active market. For those that do not exist in an active market, the Company estimates their fair values by using valuation techniques (including referring to the prices applied in recent transactions 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 technique and the option pricing model). For those initially acquired or derivative financial assets or assumed financial liabilities, the Company determines their fair values based on the market transaction prices.
(6) Accrual of impairment provision for financial assets (excluding accounts receivable and loans)
The Company shall check, on the balance sheet date, the book value of the financial assets except those measured at the fair value and with changes recorded in the profits and losses in the current period. If there is any objective evidence indicating that impairment has occurred on these financial assets, impairment provision shall be made. Objective evidence indicating the impairment of financial assets includes but is not limited to the following:① The issuer or debtor experiences serious financial difficulties;
② The debtor violates contract clauses, for example, fails to pay or delays in paying the due interest or principal;③ The creditor makes a concession for the debtor who experiences financial difficulties in consideration of economic or legal factors;
④ The debtor may go bankrupt or carry out other financial restructuring;
⑤ The transaction of the financial assets cannot be continued in the active market because the issuer encounters major financial difficulties;
⑥ Whether the cash flow reduction occurs on an asset in a group of financial assets cannot be identified, but when an overall evaluation is conducted on the asset based on public data, the evaluation result shows that the estimated future cash flow of the group of the financial assets is reduced and can be measured since initial recognition, for example, the debtor of the group of the financial assets has been gradually weakened in the payment ability, the unemployment rate in the country or region where the debtor resides is raised, the price of the collateral in the region where the debtor resides is reduced greatly, or the industry to which the debtor belongs is in recession;
⑦ The technology, market, economic or legal environment in which the equity instrument issuer is in experiences major adverse changes and as a result, the equity instrument investors cannot recover investment costs; and⑧ The fair value of the equity instrument investment experiences severe or non-temporary decline.
The specific impairment methods of financial assets are as follows:
① Impairment provision for available-for-sale financial assets
The Company, on the balance sheet date, evaluates impairment losses for available-for-sale financial assets by using the specific identification method. The objective evidence indicating that available-for-sale equity instrument investments are impaired includes that the fair value of the equity instrument investments experiences severe or non-temporary decline. The specific standard is as follows: If the fair value of an equity instrument investment is50% lower than its costs (including50%) on the balance sheet date or is lower than its cost for more than 12 months (including 12 months), impairment occurs on the equity instrument investment.
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. When an available-for-sale financial asset is impaired, even if the recognition of the asset is not terminated, the Company transfers the accumulative losses arising from reduction of the fair value and originally recorded in other comprehensive incomes out of the other comprehensive incomes and records in the profits and losses in the current period. The transferred accumulative losses equal the initial acquisition cost of the available-for-sale financial asset with the deduction of the recovered principal and amortized cost, current fair value, and impairment losses originally recorded in the profits and incomes.
For available-for-sale liability instruments with impairment losses recognized, if the fair value increases in the subsequent accounting period and the instruments are objectively related to events occurred after the original impairment losses are recognized, the impairment losses originally recognized can be transferred back and recorded in the profits and losses in the current period. Impairment losses occurring in available-for-sale equity instrument investments are transferred back through equity when the value of the equity instrument rebounds. For the impairment losses occurring on an equity instrument investment that is not quoted in an active market and whose fair value cannot be reliably measured, and on the derivative financial assets linked with the equity instrument investment and for which the equity instrument settlement needs to be delivered, such impairment losses cannot be transferred back.
② Impairment provision for held-to-maturity investments
If there is any objective evidence indicating that impairment has occurred on a held-to-maturity investment, the Company calculates and recognizes the impairment losses based on the difference between the book value of the investment and the current value of the estimated future cash flow. If there is any evidence indicating that the investment value has recovered after provision, the impairment losses originally recognized can be transferred back and recorded in the profits and losses in the current period. However, the book value transferred back shall not exceed the amortized cost of the financial assets at the date of transfer-back if impairment provision is not made.
(7) Offset of financial assets and liabilities
Financial assets and liabilities are listed separately in the balance sheet and they are not offset. Nevertheless, the net amount after mutual offset is listed in the balance sheet after both the following conditions are met:
① The Company has the legal rights of offsetting recognized amounts and the legal rights are enforceable currently.
② The Company plans to make a settlement at the net amount, or realizes the financial assets and liquidates the financial liabilities at the same time.
11. Accounts Receivable
(1) Accounts Receivable with a Significant Single Amount, for Which Bad Debt Provision Is Separately Made
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|period. The accounts receivable which has no value impairment|
|according to the independent test shall be recorded in the bad|
|debt provision made for the corresponding portfolio.|

(2) Accounts Receivable for Which Bad Debt Provision Is Made According to Portfolios of Credit Risk Characteristics
|||
|-|-|
|Portfolio Name|Accrual Method for Making Bad Debt Provision|
|Portfolio 1|Aging analysis method|
|Portfolio 2|Other methods|

Bad debt provision made using the aging analysis method for accounts receivable in a portfolio
√ Applicable□ Not applicable
||||
|-|-|-|
||Provision Proportion of Accounts|Provision Proportion of Other Accounts|
|Aging|||
||Receivable (%)|Receivable|
|1-2 years|5.00%|5.00%|
|2-3 years|10.00%|10.00%|
|Over 3 years|20.00%|20.00%|

 Bad debt provision made using the balance percentage method for accounts receivable in a portfolio
□ Applicable√ Not applicable
Bad debt provision made using other methods for accounts receivable in a portfolio
√ Applicable□ Not applicable
||||
|-|-|-|
||Provision Proportion of Accounts|Provision Proportion of Other Accounts|
|Portfolio Name|||
||Receivable|Receivable|
|Portfolio 2|||

(3) Accounts Receivable with an Insignificant Single Amount, for Which Bad Debt Provision Is Separately Made
|||
|-|-|
|Reason of Making Bad Debt Provision for a Single Amount|Objective evidence shows that the Company cannot recover|
||accounts according to original clauses of accounts receivable.|
|Method for Making Bad Debt provision|A bad debt provision is made according to the difference that the|
||current value of the estimated future cash flow of accounts|
||receivable is lower than its book value.|

12. Inventory
(1) Classification of inventory
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. Inventory refers to finished products or commercial products held by the Company in daily activities for sale, products in process, and materials and supplies consumed in manufacturing or service delivery process. Inventory includes raw materials, circulating materials, materials of consigned processing, goods in process, self-made semi-finished products, finished products (in-stock goods), development costs, and developed products.
Development costs refer to properties that have not been completed and are used for sale. To-be-developed land refers to purchased land that is determined to be developed to finished development products. Development products refer to properties that are completed and are to be sold. In the case of overall development of a project, to-be-developed land is transferred into development costs; in the case of phased development of a project, the land for phased development is transferred into development costs, and undeveloped land is reserved as the to-be-developed land.
(2) Pricing method for inventory
Inventory is initially measured at the time of acquisition according to costs, including the purchase cost, processing cost, and other costs. The pricing of the inventory is made according to the weighted average method at the end of month at the time of delivery.
(3) Basis for determination of the net realizable value of inventory and accrual method of inventory depreciation provision
After complete counting and examination is conducted on the inventory at the end of the period, inventory depreciation provision is made or adjusted according to the inventory cost or net realizable value, whichever is lower. The net realizable value of the goods inventory directly for sale such as finished products, in-stock goods, and materials for sale is determined, in regular production and operation, according to the amount of the estimated sale price of such inventory minus the estimated sale expenses and relevant taxes. The net realizable value of the material inventory to be processed is determined, in regular production and operation, according to the estimated sale price of the finished products produced minus the incurred costs prior to completion, estimated sale expenses, and relevant taxes. The net realizable value of the inventory held for the performance of a sale or service contract is calculated on the basis of the contract price. Where the quantity of the inventory is more than the quantity ordered in a sale contract, the net realizable value of the excess of such inventory is calculated on the basis of the general sale price.
At the end of the period, the inventory depreciation provision is made according to individual inventory items. However, for the inventory of a large quantity and a low unit price, the inventory depreciation provision is made 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 use or purpose, and being difficult to be separated from other items for measurement, the inventory depreciation provision is made in a combined manner.
Where the factors previously causing the recording of the reduction of the inventory value stop to exist, the reduced amount is restored and transferred back from the originally accrued amount of inventory depreciation provision. The transferred amount is recorded in the profits and losses in the current period.
(4) Inventory taking system
The perpetual inventory taking method is adopted.
(5) Amortization method for low value consumables and packaging materials
① For low value consumables, the one-off writing-off method is adopted.
② For packaging materials, the one-off writing-off method is adopted
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. (6) Accounting method for land used for development
The expenditure of pure land development projects constitutes the land development costs.
For overall development projects that cover real estates, if the objects for bearing expenses can be distinguished, the expenses are apportioned and recorded in the commodity house costs by actual area.
(7) Accounting method for fees of public supporting facilities
For public supporting facilities that cannot be transferred with compensation, the standard distribution of fees is determined according to the benefit proportion and the fees are recorded in the commodity house costs.
For public supporting facilities that can be transferred with compensation, incurred costs are grouped with each supporting facility project as the cost accounting object.
(8) Accounting method for maintenance funds
According to relevant regulations in the region where a development project is located, maintenance funds are collected from house buyers during sale (presale) of development products or are accrued and recorded by the Company in the development costs of development products, and then handed in to the maintenance fund administration.
(9) Accounting method for the quality bond
The quality bond is reserved from the project payment of construction units according to construction contracts. The maintenance fees incurred in the warranty period of development products are used to offset the quality bond. After the agreed warranty period of development products expires, the balance of the quality bond is returned to construction units.
13. Long-term Equity Investment
(1) Determination of investment costs
① For long-term equity investment arising from a business combination, refer to 5. "Accounting Treatment Methods for Business Combinations Under Common Control and Not Under Common Control" for specific accounting policies.
② Long-term equity investment obtained in other ways
The purchase price money actually paid is used as the initial investment cost of the long-term equity investment obtained by cash. The initial investment cost includes fees, taxes, and other necessary expenditure that are directly relevant to the acquisition of the long-term equity investment.
The fair value of issued equity securities is used as the initial investment cost of the long-term equity investment obtained by issuing equity securities. Transaction fees arising from the issuance or acquisition of the equity instruments can be deducted from the equity if they are directly attributable to an equity transaction.
Under the premises that the non-monetary asset exchange is of commercial nature and that the fair value of the assets received and surrendered in the exchange can be measured reliably, the initial investment cost of the long-term equity investment received from the exchange of non-monetary assets is determined on the basis of the fair value of the assets surrendered, unless there is definite evidence indicating that the fair value of the received assets is more reliable. For the non-monetary asset exchange that do not meet the above premises, the book value
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. of the surrendered assets and relevant taxes payable are used 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 on the basis of its fair value.
(2) Subsequent measurement and profit and loss recognition
① Cost method
For the long-term equity investment of invested organizations over which the Company has control, the cost method is used for accounting, the pricing is performed according to the initial investment cost, and the cost of the long-term equity investment is adjusted based on the added or recovered investment.
The Company recognizes cash dividends or profits enjoyed by the Company, for which the invested organizations declare to distribute, as the investment incomes in the current period, except the amount actually paid at the acquisition time of investment or cash dividends and profits declared but not distributed in the consideration.② Equity method
The Company conducts accounting using the equity method for long-term equity investments of associates and joint ventures. For equity investments of associated that are indirectly held by means of risk investment institutions, mutual funds, trust companies, or similar entities that cover the investment linked insurance funds, the measurement is conducted at the fair value and the changes are recorded in the profits and losses.
If the initial investment cost of a long-term equity investment is larger than the investment, the Company should be entitled to the difference in the due shares of the fair value of the identifiable net assets of the invested organizations 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 be entitled to the difference in the due shares of the fair value of the identifiable net assets of the invested organizations and such difference is recorded in the profits and losses in the current period.
After obtaining a long-term equity investment, the Company recognizes investment incomes and other comprehensive incomes according to the due net profits and losses of invested organizations and due shares of other comprehensive incomes respectively, and adjusts the book value of the long-term equity investment. The Company also reduces the book value of the long-term equity investment according to the due profits or cash dividends calculated on the basis of the profits or cash dividends declared but not distributed by invested organizations. For changes in the owners' equity of invested organizations except in net profits and losses, other comprehensive incomes, and profit distribution, the book value of the long-term equity investment is adjusted and such changes are recorded in the owners' equity.
When recognizing the due shares of net profits and incomes of invested organizations, the Company adjusts net profits of the invested organizations for recognition on the basis of the fair value of identifiable assets of the invested organizations at the acquisition time of the investment. For unrealized internal transaction profits and losses among the Company, associates, and joint ventures, the part attributable to the Company is calculated at the due proportion and is offset, and the investment profits and losses are recognized on such a basis.
Where the Company recognizes the due shares of the losses occurring on the invested organizations, the following sequence is adopted: Firstly, the book value of the long-term equity investment is offset. Secondly, if the book value of the long-term equity investment is not sufficient for the offsetting, the investment losses should continue to be recognized within the limit of the book value of other long-term equity that practically constitutes net
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. investments on the invested organizations, and the book values of long-term accounts receivable and others are offset. Finally, if an enterprise still bears additional obligations as agreed in the investment contract or agreement after the above processing, estimated liabilities are recognized according to the estimated obligations to be borne and are recorded in investment losses in the current period.
Where the invested organizations realize profits in the later periods, the Company conducts accounting treatment in the reversed sequence against the above after deducting the shared losses not recognized, reduces the book balance of the recognized estimated liabilities, restores the book value of other long-term equity that practically constitutes net investments on the invested organizations and the book value of the long-term equity investment, and then recognizes investment incomes.
(3) Conversion of the accounting method for long-term equity investments
① Conversion from measurement at fair value into accounting using the equity method
For equity investments of invested organizations held by the Company and that the Company has no control over, common control over, or significant influence on, and on which accounting treatment is conducted according to financial instrument recognition and measurement criteria, if the Company can apply significant influence on or conduct joint control over but does not constitute control over the invested organizations because of added investment or other reasons, the sum of the fair value of originally held equity investments that are recognized according to the Accounting Standards for Enterprises No.22– Recognition and Measurement of Financial Instruments, and the added investment cost is used as the initial investment cost after the accounting is conducted using the equity method.
For originally held equity investments that are classified as available-for-sale financial assets, the difference between the fair value and the book value of equity investments, and accumulative changes in the fair value that are originally recorded in other comprehensive incomes are transferred into the profits and losses in the current period after the accounting is conducted using the equity method.
If the initial investment cost accounted using the equity method is smaller than the due shares of the fair value of identifiable net assets of invested organizations on the date of added investment, that are calculated and determined based on the new shareholding proportion after added investment, the difference between the two is used for adjusting the book value of the long-term equity investment and is recorded in the non-operating revenue in the current period.
② Conversion from measurement at fair value or accounting using the equity method into accounting using the cost method
For equity investments of invested organizations held by the Company and that the Company has no control over, common control over, or significant influence on, and on which accounting treatment is conducted according to financial instrument recognition and measurement criteria, or the long-term equity investments of associates and joint ventures originally held by the Company, for which the Company has control over invested organizations not under common control because of added investment or other reasons, the sum of the book value of originally held equity investments and cost of the added investments is used as the initial investment cost after the accounting is conducted using the cost method during the preparation of individual financial statements.
For other comprehensive incomes recognized because of accounting using the equity method in an equity investment held prior to the purchase date, the same basis for directly disposing of relevant assets or liabilities by invested organizations is adopted for accounting treatment when the investment is disposed of.
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. For an equity investment held prior to the purchase date, and on which accounting treatment is conducted according to the Accounting Standards for Enterprises No.22– Recognition and Measurement of Financial Instruments, accumulative changes in the fair value that are originally recorded in other comprehensive incomes are transferred into the profits and losses in the current period after the accounting is conducted using the cost method.
③Conversion from accounting using the equity method into measurement at fair value
If the Company loses common control over or significant influence on invested organizations due to the disposal of a part of an equity investment or other reasons, the remaining equity after disposal is accounted according to the Accounting Standards for Enterprises No.22– Recognition and Measurement of Financial Instruments, and the difference between the fair value and the book value of the remaining equity on the date that common control or significant influence is lost, is recorded in the profits and incomes in the current period.
For other comprehensive incomes recognized because of accounting using the equity method in an original equity investment, the same basis for directly disposing of relevant assets or liabilities by invested organizations is adopted for accounting treatment when the accounting using the equity method is terminated.
④ Conversion from the cost method into the equity method
When the Company loses control over invested organizations due to the disposal of a part of an equity investment or other reasons, if the remaining equity after disposal can implement common control over or impose a significant influence on the invested organizations, the equity method is used for accounting during the preparation of individual financial statements, and the remaining equity is adjusted as if it is accounted using the equity method since the date of acquisition.
⑤ Conversion from the cost method into measurement at fair value
When the Company loses control over invested organizations due to the disposal of a part of an equity investment or other reasons, if the remaining equity after disposal cannot implement common control over or impose a significant influence on the invested organizations, accounting treatment is conducted according to the Accounting Standards for Enterprises No.22– Recognition and Measurement of Financial Instruments during the preparation of individual financial statements, and the difference between the fair value and the book value of the remaining equity on the date that control is lost, is recorded in the profits and losses in the current period.
(4) Disposal of long-term equity investments
In the disposal of a long-term equity investment, the difference between its book value and the value at which they are actually acquired should be recorded in the profits and losses in the current period. For a long-term equity investment accounted using the equity method, in the disposal of the investment, accounting treatment is conducted on the part that is originally recorded in other comprehensive incomes at a corresponding proportion on the same basis for disposing of relevant assets or liabilities by invested organizations.
If clauses, conditions, and economic impact of each transaction for disposal of an equity investment on a subsidiary conform to the following one or multiple cases, multiple transactions are considered as a package deal for accounting treatment:
① These transactions are concluded simultaneously or concluded when the impact on each other is considered.② These transactions reach a complete business result as a whole.
③ The occurrence of one transaction depends on the occurrence of at least other one transaction.
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.④ One transaction alone is deemed uneconomical but deemed economical when it is considered with other transactions together.
If the Company loses control over a subsidiary due to disposal of a part of an equity investment or other reasons, and the transactions are not considered as a package deal, individual financial statements and consolidated financial statements are differentiated for accounting treatment:
① In individual financial statements, the difference between the book value of the disposed equity and the price for acquiring the equity is recorded in the profits and losses in the current period. If the remaining equity after disposal can implement common control over or impose a significant influence on an invested organization, the equity method is adopted for accounting, and the remaining equity is adjusted as if it is accounted using the equity method since the time of acquisition. If the remaining equity after disposal cannot implement common control over or impose a significant influence on an invested organization, accounting treatment is conducted according to the Accounting Standards for Enterprises No.22– Recognition and Measurement of Financial Instruments, and the difference between the fair value and the book value of the remaining equity on the date that the control is lost is recorded in the profits and losses in the current period.
② In consolidated financial statements, for transactions prior to the time that the control over a subsidiary is lost, the difference between the price of disposal and the shares of the subsidiary's net assets calculated since the acquisition date or combination date in the disposal of the long-term equity investments is used for adjusting the capital public reserves (capital premium). If the capital public reserves are insufficient for offsetting, the retained incomes are adjusted. When the control over a subsidiary is lost, the remaining equity is re-measured at the fair value on the date that the control is lost. (Consideration received from the equity disposal+ Fair value of the remaining equity– Shares of the subsidiary's net assets enjoyed by the Company that are calculated based on the original shareholding proportion since the acquisition date) shall be recorded in the investment incomes in the period that the Company loses control over the subsidiary, and is used for offsetting goodwill. Other comprehensive incomes in connection with the subsidiary's equity investment shall be transferred into the current investment incomes when the Company loses control over the subsidiary.
If transactions from the equity investment on a subsidiary to the time that the Company loses over the subsidiary belong to a package deal, each transaction is considered as a transaction for disposing equity investment of the subsidiary and with the control lost for accounting treatment, and individual financial statements and consolidated financial statements are differentiated for accounting treatment:
① In individual financial statements, the difference between each disposal price before the control is lost and the book value of the long-term equity investment corresponding to the disposed equity is recognized as other comprehensive incomes, and, at the time that the control is lost, is transferred into the profits and losses in the period that the control is lost.
② In consolidated financial statements, the difference between each disposal price before the control is lost and the shares of the subsidiary's net assets enjoyed by the Company corresponding to the investment disposal is recognized as other comprehensive incomes, and, at the time that the control is lost, is transferred into the profits and losses in the period that the control is lost.
(5) Judgment criteria for common control and significant influence
If the Company, controls an arrangement collectively with other participants as agreed, and an activity decision that has a significant influence on the return of the arrangement can take effect only after being unanimously agreed by the participants sharing the control power, it is deemed that the Company and other participants jointly control the arrangement, and the arrangement is a joint arrangement.
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. When a joint arrangement is reached by an independent entity, if it is judged that the Company is entitled to net assets of the independent entity according to relevant agreements, the independent entity is considered as a joint venture and the equity method is used for accounting. If it is judged that the Company is not entitled to net assets of the independent entity according to relevant agreements, the independent entity is considered as an associate, and the Company recognizes items relevant to shares of benefits of the associate and conducts accounting treatment according to the ASBE.
A significant influence refers that an investing party is entitled to participate in decision-making of finance and operation policies of invested organizations, but cannot control the formulation of these policies independently or jointly with other parties. The Company has a significant influence on an invested organization after one or more of the following cases occurs and all facts and situations are comprehensively considered:① Dispatch delegates to the board of directors or similar organs of power in the invested organization;② participate in the formulation of finance and operation policies of the invested organization;③ make important transactions with the invested organization;④ dispatch managerial personnel to the invested organization; and⑤ provide key technical documents to the invested organization.
14. Investment properties
Measurement mode of investment properties
Measurement of cost method
Depreciation and amortization
Investment property refers to the property held for earning rental or increasing the value of capital, including the right to use of the rented land, the right to use of the land held for transfer after the value increases, and the rented building.
The Company uses the cost of investment properties as entry value. The cost of purchased investment properties includes the purchase price, relevant taxes, and other expenses directly relegated to the asset. The cost of a self-built investment properties consist of the necessary expenses for building the asset to the expected condition for use. The Company conducts measurement after recognition to the investment properties using the cost pattern, and makes accrual depreciation or amortization for buildings and land use rights based on their expected service life and salvage value rate. The following table lists the expected service life, net salvage value, and annual depreciation (amortization) rate of investment properties:
|||||
|-|-|-|-|
|||Expected salvage value|Annual depreciation|
|Category|Expected service life|||
||||(amortization) rate|
|Houses and buildings|20-40|5%|4.75%-2.38%|

 When the purpose of investment properties changes to self-use, the Company shall convert the investment properties to fixed or intangible assets since the day of change. When the real estate with the right to self-use is changed for generating rents or capital appreciation, the Company shall convert fixed or intangible assets to investment properties since the day of change. The book value of the real estate prior to the conversion shall be entry value after conversion.
If investment properties are disposed of, or if they withdraw permanently from use and if no economic benefit will
be obtained from the disposal, the recognition of them as investment properties shall be terminated. When an
enterprise sells or transfers or discards any investment properties, or when any investment properties of an
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. enterprise is damaged or destroyed, the enterprise shall deduct the book value of the investment properties as well as the relevant taxes from the disposal income, and include the amount in the current profit and loss.
15. Fixed assets
(1) Identification conditions
① Fixed assets refer to the tangible assets held for the purpose of manufacture of commodities, provision of labor services, lease or operation and management with a term of use exceeding one fiscal year. Fixed assets can be identified when meeting the following conditions at the same time: A. Economic interest relevant to the fixed assets is likely to flow into the enterprise; B. The cost of the fixed assets can be reliably measured.② Initial measurement of fixed assets: Fixed assets of the Company are initially measured by cost. The costs of purchased fixed assets include purchasing prices, taxes such as import tariff and other expenses that are generated to make the fixed assets reach expected usable state and can be directly attributed to the fixed assets. The costs of building fixed assets consist of necessary expenses that are generated to make the fixed asset reach the expected usable state. For fixed assets invested by an investor, the value of the investment contract or agreement is used as the entry value of the fixed assets. If the value of the contract or agreement is not fair, the fixed assets are recorded by fair value. Where the price money of the purchased intangible assets is paid on a deferred basis within a term exceeding regular credit conditions and actually of a financing nature, the cost of the intangible assets is determined on the basis of the current value of the price money in purchase. The difference between the price actually paid and the current value of the purchasing price shall be capitalized and shall be included in current profits and losses in the credit period.③ Subsequent measurement and disposal of fixed assets: Depreciation of fixed assets: Depreciation of fixed assets is accrued in the service life by the entry value minus expected salvage value. For the fixed assets where provision for diminution in value is accrued, the amount of depreciation is determined in the future period according to the book value after deduction of provision for diminution in value and remaining service life. The Company determines the service life and expected salvage value of fixed assets based on the nature and use of the fixed assets. The Company rechecks the service life, expected salvage value, and depreciation method of fixed assets at the end of every year. In case of any discrepancy between the recheck result and estimated result, the Company makes an adjustment correspondingly.
(2) Depreciation method
||||||
|-|-|-|-|-|
|Category|Depreciation method|Depreciation life|Residual value rate|Annual depreciation rate|
|Houses and buildings|Straight-line method|20-40|5|4.75-2.38|
|Machinery equipment|Straight-line method|5-10|5|19.00-9.50|
|Electronic equipment|Straight-line method|5-10|5|19.00-9.50|
|Transportation|||||
||Straight-line method|5-10|5|19.00-9.50|
|equipment|||||
|Other equipment|Straight-line method|10|5|9.50|

①Subsequent expenditure of fixed assets
Subsequent expenditure relevant to fixed assets is included in the costs of fixed assets if the expenditure meets
fixed asset identification conditions and is included in the current profits and losses if it does not meet fixed asset
identification conditions.
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.②Fixed asset disposal
When fixed assets are disposed or are expected unable to generate economic benefits through use or disposal, the fixed assets shall not be identified. When an enterprise sells or transfers or discards any investment properties, or when any investment properties of an enterprise is damaged or destroyed, the enterprise shall deduct the book value of the investment properties as well as the relevant taxes from the disposal income, and include the amount in the current profit and loss.
(3) Recognition basis and pricing method of the fixed assets acquired under finance leases
The fixed assets rented by the Company can be identified as the fixed assets under financing lease when meeting one or several criteria: (1) When the lease term is due, the proprietary of the leased property is transferred to the Company. (2) The Company has the option to buy the leased asset at a price which is expected to be far lower than the fair value of the leased asset at the date when the option becomes exercisable. Thus, on the lease beginning date, it can be reasonably determined that the option will be exercised. (3) Even if the ownership of the asset is not transferred, the lease term covers the major part of the service life of the leased asset. (4) The current value of the minimum lease payment that is paid by the Company on the lease beginning date amounts to substantially all of the fair value of the leased asset on the lease beginning date. (5) The leased assets are of a special nature that only the Company can use them without making major modifications. The leasee shall record the smaller one of the fair value of the leased asset and the current value of the minimum lease payments on the lease beginning date as the entry value in an account, recognize the amount of the minimum lease payments as the entry in an account of long-term account payable, and treat the balance between the recorded amount of the leased asset and the long-term account payable as unrecognized financing charges. The initial direct costs such as commissions, attorney's fees, traveling expenses and stamp duties directly attributable to the leased item incurred during the process of lease negotiating and lease contract signing shall be included in the asset value of the current period. The unrecognized financing charge shall be amortized to each period during the lease term. In calculating the depreciation of a leased asset, the Company adopts a depreciation policy for leased assets consistent with that for depreciable assets which are owned by the lessee. If it is reasonably certain that the leasee will obtain the ownership of the leased asset when the lease expires, the leased asset shall be fully depreciated over its service life. If it is not reasonably certain that the lessee will obtain the ownership of the leased asset at the expiry of the lease term, the leased asset shall be fully depreciated over the shorter one of the lease term or its service life.
16. Construction in progress
(1) Type of construction in progress
The construction in progress carried out by the Company shall be valued according to its actual cost which is composed of all necessary expenses incurred for bringing the asset to the expected conditions for use, including material costs, labor costs, relevant taxes, borrowing costs eligible for capitalization, and indirect expenses eligible for amortization. Cost accounting for the construction in progress of the Company shall be performed based on projects.
(2) Standards and time points for the construction in progress being carried forward to fixed assets
For a construction in progress, all expenses during the construction till the desired usable status of the asset is reached are taken as the recorded value of the fixed asset. If a construction in progress has reached the desired usable status but has not conducted final accounting, it is transferred into fixed assets when it reaches the desired usable status, according to the estimated value based on project budget, construction cost or actual cost; in the
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. meantime, depreciation is accrued according to theCompany’s depreciation policies for fixed assets; when the final accounting is conducted the temporarily estimated value is adjusted according to the actual cost while the accrued depreciation amount is not adjusted.
17. Borrowing costs
(1) Confirmation principle of borrowing costs capitalization
Where the borrowing costs incurred by the Company can be directly attributable to the purchase, building or production of the assets that meet the conditions of capitalization, such assets are capitalized and recorded into relevant assets cost. Other borrowing costs are recognized as expenses according to the incurred amount at the time of incurrence and recorded into current profit and loss.
The assets that meet the conditions of capitalization refer to the assets such as fixed assets, investment property and inventory that can reach the anticipated usable or salable status only after a considerable time of purchase, building or production activities.
The borrowing costs may be capitalized when all of the following conditions are met:
①The assets expenditure has already incurred, including that incurred in the form of cash payment, non-monetary assets transfer or bearing of debts with interests for the purchase, building or production of the assets that meet the conditions of capitalization.
②The borrowing costs have already been incurred.
③The construction or production activities necessary for putting the assets into a usable or salable status have already started.
(2) Capitalization term of 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.
Where the purchase, building or production of the assets that meet the conditions of capitalization has put such assets into the anticipated usable or salable status, the capitalization of the borrowing costs is stopped.
Where part of the projects in the purchase, building or production of the assets that meet the conditions of capitalization have been completed and reached the anticipated usable or salable status, the capitalization of the borrowing costs of such part of the assets is stopped.
Where different parts of the assets purchased, built or produced have been completed but cannot be used or sold till the whole assets have been completed, the 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, building or production of the assets that meet the conditions of capitalization and the time of discontinuation exceeds three months consecutively, the capitalization of the borrowing costs is suspended. If the discontinuation is a necessary procedure in the process during which the assets purchased or produced, which meet the conditions of capitalization, reach the usable or salable status, the capitalization of the borrowing costs is continued. The borrowing costs occurring in the suspension period are
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. recognized as current profit and loss and the capitalization is continued until the purchasing and production activities of the assets are restarted.
(4) Calculation method of the amount of borrowing costs capitalization
The interest expenses of special loans (with the interest income of the unused borrowed funds deposited in the bank or the investment income obtained from temporary investment deducted) and relevant auxiliary expenses are capitalized before the assets that meet the conditions of capitalization, purchased, built or produced with such loans, reach the anticipated usable or salable status.
The amount of the interests of common loans that are capitalized is calculated and determined by the weighted average of the accumulative parts of the assets expenditure exceeding special loans multiplied by the capitalization rate of common loans. The capitalization rate is determined according to the weighted average interest rate of common loans.
Where the loans involve discount or premium, the amount of discount or premium to be amortized in each accounting period is determined in accordance with the actual interest rate method and the amount of interests of each period should also be adjusted.
18. Intangible assets
(1) Method of costing, service life and devaluation test
An intangible asset refers to an identifiable non-monetary asset without physical substance which is possessed or controlled by the Company, including purchased software and land use rights.
① Initial measurement of intangible assets
The cost of the intangible assets purchased from outside includes purchase price money, relevant taxes and other expenses incurred due to putting such assets to the anticipated use that can be directly attributed to such assets. Where the price money of the purchased intangible assets is paid on a deferred basis within a term exceeding regular credit conditions and actually of a financing nature, the cost of the intangible assets is determined on the basis of the current value of the price money in purchase.
The entry value in the account of the fixed assets obtained from debtors for the repayment of liabilities in debt restructuring is determined on the basis of the fair value of the fixed assets. The difference between the book value of debt restructuring and the fair value of the fixed assets used for the repayment of liabilities is included in current profit and loss.
Under the premises that the non-monetary assets exchange is of commercial nature and that the 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 are definite evidences that the fair value of the received assets is more reliable. For the non-monetary assets exchange that do not meet the above premises, the book value of the received assets and relevant taxes payable is taken as the cost of the long-term equity investment.
The recorded value in the account of the intangible assets obtained by the merger of the enterprises under the control of a same entity is determined according to the book value of the merged party. The recorded value in the account of the intangible assets obtained by the merger of the enterprises under the control of different entities is determined according to the fair value.
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. The cost of the intangible assets formed through internalR&D activities includes: the cost of materials and labor consumed in the development of such intangible assets, registration fee, the amortization of other patent rights and franchises used in the development process and the interests expenses that meet the conditions of capitalization, and other direct expenses incurred due to putting such intangible assets into the anticipated use.
② Subsequent measurement of intangible assets
When the Company acquires intangible assets, the Company analyzes and determines the service life and classifies intangible assets into intangible assets with limited service life and intangible assets with uncertain service life.
③ Intangible assets with limited service life
The intangible assets with limited service life are amortized based on straight-line method in the period when the assets bring economic benefits to the enterprise. The estimated service life and basis of intangible assets with limited service life are as follows:
||||
|-|-|-|
|Item|Estimated service life|Basis|
|Outsourced software|5|Benefit period|
|Land use right|50|Benefit period|

At the end of each year, the service life and amortization method of intangible assets with limited service life are rechecked and an adjustment is made if the service life differs from the original estimated service life.
At the end of the current period, the service life and amortization method of the intangible assets are the same as the last year.
(2) Accounting policy for internalR&D expenditure
① Classification standards for research and development phases ofR&D projects inside the Company
Research phase: a phase in which creative and planned investigation and research activities are carried out for the purpose of obtaining and understanding new scientific or technological knowledge.
Development phase: a phase in which research results or other knowledge, before being produced or used for commercial purposes, are applied in a certain plan or design for the purpose of producing materials, equipment and products that are new or feature substantial improvement.
The expenses for insideR&D projects in the research phase are recorded into current profit and loss when the expenses occur.
②Standards for meeting the conditions of capitalization in development phase
The expenditure in the development phase of the research and development project can be recognized as intangible assets only when all the following conditions are met:
A. The technical feasibility of completing the intangible asset so that it will be available for use or sale.
B. There is an intention to complete such intangible assets and use or sell it.
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. C. The way that the intangible assets generate economic interests can prove that the product using such intangible assets or the intangible assets itself have market. If the intangible assets are to be used internally, its usefulness is proved.
D. The availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset.
E. The expenditure attributed to the development stage of such intangible assets can be reliably measured. The expenditure in the development phase not meeting the preceding conditions is included in the current profits and losses when it is incurred. The development expenditure that is included in profits and losses in the previous year will not be identified as assets again in later years. The capitalized expenditure in the development phase is listed as development expenditure in the balance sheet and is converted into intangible assets from the date when it meets the expected purpose.
19. Long-term impairment of assets
The Company determines whether any sign of possible impairment exists for long-term assets on the balance sheet date. If the sign of impairment exists for long-term assets, the recoverable amount of each asset is estimated. If the recoverable amount of each assets cannot be estimated, the recoverable amount of the asset group where the asset belong is determined based on the asset group.
The recoverable amount may be determined according to the higher one of the net value of the fair value of the assets minus the disposal expenses and the current value of the anticipated future cash flow of the assets.
If the measurement result of recoverable amount indicates that the recoverable amount of a long-term asset is lower than its book value, the book value of the long-term asset is written down to the recoverable amount. The write-down amount is identified as asset impairment loss and is included in the current profits and losses and provision for asset impairment provision is made. Once the impairment loss of assets is confirmed, the loss will not be reversed in later accounting periods.
At the same time, the corresponding assets impairment provision is accrued. After the recognition of assets impairment loss, 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 (with the anticipated expected salvage value deducted) can be amortized systematically within the remaining service life.
The goodwill and intangible assets with uncertain service life, which are formed due to enterprise merger, are tested every year on whether the sign of impairment exists.
Impairment test is performed for goodwill and its relevant asset groups or asset group combinations. When impairment test is performed for relevant asset groups or asset group combinations that include goodwill, for example, if the sign of impairment exists for asset groups or asset group combinations relevant to goodwill, the impairment test is first performed for the asset groups or asset group combinations that do not include goodwill and the recoverable amount is calculated and is compared with the relevant book value to confirm the corresponding impairment loss. Then the impairment test is first performed for the asset groups or asset group combinations that include goodwill and the book value (including the book value of amortized goodwill) of the relevant asset groups or asset group combinations is compared with the recoverable amount. If the recoverable amount of relevant asset groups or asset group combinations is lower than the book value, the impairment loss of goodwill is confirmed.
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. 20. Long-term unamortized expenses
Method of amortization
Long-term unamortized expenses refer to the expenses that have incurred at the Company but should be born in current period and later periods, where the amortization period is above one year. Long-term unamortized expenses shall be amortized based on direct method in the period of benefit.
21. Payroll
(1) Accounting treatment method of payroll
Payroll refers to various remunerations and compensations provided by the Company for obtaining services provided by employees or for terminating the employment relationship. Payroll includes short-term remuneration, welfare after leave, dismissal welfare and other long-termemployee’s welfare.
Short-term remuneration refers to the payroll that needs to be paid completely within 12 months in the annual report period when employees provide relevant services, excluding welfare after leave and dismissal welfare. In the accounting period when employees provide services, the Company identities short-term remuneration as liabilities and includes it in relevant asset costs and fees according to the benefit objects of services provided by employees.
(2) Accounting treatment method of welfare after leave
The welfare after leave refers to the remuneration and welfare provided by the Company for obtaining services provided by employees or for terminating the employment relationship after employees have retired, excluding short-term remuneration and dismissal welfare. The welfare plan after dismissal is classified into the defined contribution plan and the defined benefit plan.
The welfare defined contribution plan aims to join the social basic endowment insurance and unemployment insurance organized and implemented by labor and social security agencies in various regions. In addition to social basic endowment insurance and unemployment insurance, employees can join the pension plan set by the Company at their own discretion. In the accounting period when employees provide the Company with services, the amount that shall be paid and deposited shall be identified as liabilities according to the defined contribution plan and is included in the current profits and losses or relevant asset costs.
After making the preceding payment according to the national standard and pension plan, the Company shall no longer have any other payment obligation.
(3) Accounting treatment method of dismissal welfare
Dismissal welfare refers to the compensation that is given to employees for terminating the employment relationship with employees before the employment contracts expire or for encouraging employees to accept downsizing and is included in the current profits and losses when the compensation is incurred.
(4) Accounting treatment methods of other long-termemployees’ welfare
Other long-termemployees’ welfare refers to all otheremployees’ welfare except short-term remuneration, welfare after leave and dismissal welfare.
For other long-termemployees’ welfare that meets conditions of the defined contribution plan, the amount that shall be paid and deposited shall be identified as liabilities in the accounting period and is included in the current
profits and losses or relevant asset costs; except other long-termemployees’ welfare in the preceding
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. circumstance, an independent actuary sets the welfare generated by the defined benefit plan to the period in which employees provide services by using the method of expected accumulated welfare unit and includes it in the current profits and losses or relevant asset costs.
22. Estimated liabilities
(1) Confirmation standards for estimated liabilities
The obligations related to contingencies, which meet all the following conditions, are recognized by the Company as estimated liabilities.
①The obligation is a current obligation undertaken by the Company;
②The fulfillment of the obligation is very likely to cause an outflow of economic interests from the Company;③The amount of the obligation can be measured reliably.
(2) Measurement method of estimated liabilities
Initial measurement is carried out to estimated liabilities of the Company 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 contingencies like risks, uncertainties and time value of currency. Where there are great influences of time value of currency, the optimum estimation amount is determined after discounting relevant future cash flows. The optimum estimation amount is determined according to different situations as follows:
Where there is a continuous range (or interval) of the required expense and different results in the range have same possibility to occur, 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 have different possibilities to occur, if contingencies involve individual proceedings, the optimum estimation amount is the amount most likely to occur, and if contingencies involve several proceedings, the optimum estimation amount is determined according to various possible results and the calculation of relevant probabilities.
If all expenses or part of them, which are used by the Company for paying off estimated liabilities, are anticipated to be compensated by a third party and compensation amount is basically sure to be received, the compensation amount is recognized separately as an asset, which should not exceed the book value of the estimated liabilities. 23. Share-based payment
(1) Types of share-based payment
The Company provides equity-settled and cash-settled share-based payment.
(2) Recognition of the fair value of equity instruments
For equity instruments such as the granted option, which exist in the active market, the fair value is recognized according to their prices in the active market. For those not existing in the active market, their fair value is recognized by using the option pricing model, which should be selected in consideration of the following factors:
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.① option exercise price;② option period;③ the current price of the underlying shares;④ the predicted fluctuation rate of the share price,⑤ the estimated dividend of the share;⑥ risk free rate in the option period. When determining the grant-date fair value of equity instruments, the Company shall take into account the influence from market conditions in vesting conditions and 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 cost if employees or other parties satisfy all the non-market conditions (for example, service duration) in vesting conditions.
(3) Basis for the determination of 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 that estimate if subsequent information indicates that the number of equity instruments expected to vest differs from previous estimates. On vesting date, the Company shall revise the estimate to equal the number of equity instruments that ultimately vested.
(4) Accounting for implementation, modification and termination of share-based payment plans
The Company shall measure the equity-settled share-based payment at the fair value of the granted employee equity instruments. If the equity instruments granted vest immediately, the Company shall include the grant-date fair value of equity instruments into related cost or expense, with a corresponding increase in capital reserve. If the equity instruments granted do not vest until the counterparty completes a specified period of service or achieves a performance condition in the vesting period, the Company shall include the service obtained in the current period into related cost or expense and capital reserved by reference to the grant-date fair value of equity instruments based on the best estimate of the number of vested equity instruments on each balance sheet date during the vesting period. The Company shall not adjust the recognized cost or expense and total equity amount after the vesting date.
The case-settled share-based payment shall be measured by reference to the fair value of the Company's eligible liabilities which is calculated based on shares or other equity instruments. If the equity instruments granted vest immediately, the Company shall include the fair value of eligible liabilities in related cost or expense 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 the counterparty completes a specified period of service or achieves a performance condition in the vesting period, the Company shall include the service obtained in the current period into related cost or expense and liabilities by reference to the grant-date fair value of liabilities, based on the best estimate of the number of vested equity instruments on each balance sheet date during the vesting period. The Company shall re-measure the fair value of its liabilities on each balance sheet date and settlement date before settlement of related liabilities, and include liability changes in current profit and loss.
(5) Modifications to the terms and conditions on which equity instruments were granted
If a grant of an equity instrument is canceled during the vesting period, the Company shall account for the cancellation as an acceleration of vesting, and shall therefore include immediately the amount that would otherwise have been recognized for services received over the remainder of the vesting period in the current profit and loss, and recognize capital reserve. If employees or other parties can but fail to satisfy non-vesting conditions in the vesting period, the Company shall account for the failure as a cancellation of the grant of the equity instrument.
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. 24. Other financial instruments such as preferred stock and sustainable debt
Based on the rules of financial instruments, the Company classifies financial instruments or their components into financial liabilities or equity instruments during initial recognition according to the contact terms of financial instruments such as preferred stock and sustainable debt and economic essence they reflect rather than legal form, in combination with definitions of financial liabilities and equity instruments.
When one of the following conditions is met, the issued financial instrument is classified into financial liabilities: (1) Contractual obligation to deliver cash or other financial assets to other parties;
(2) Contractual obligation to exchange financial assets or financial liabilities under potential adverse conditions; (3) Non-derivative instrument contract that must or may use equity instruments of an enterprise for settlement in the future (the enterprise delivers a variable number of equity instruments according to the contract);
(4) Derivative instrument contract that must or may use equity instruments of an enterprise for settlement in the future (except derivative instrument contracts that use a fixed number of equity instruments to exchange a fixed amount of cash or other financial assets).
When the following conditions are met at the same time, the issued financial instruments are classified into equity instruments:
(1) The financial instruments do not include the contractual obligation to deliver cash or other financial assets to other parties or exchange financial assets or financial liabilities under potential adverse conditions;
(2) For the financial instruments that must or may use equity instruments of an enterprise for settlement in the future, if the financial instruments are non-derivative instruments, the contractual obligation to deliver a variable number of equity instruments for settlement is not included; if the financial instruments are derivative instruments, the enterprise can only settle the financial instruments by exchanging a fixed number of equity instruments with the fixed amount of cash or other financial assets.
Accounting treatment method
For financial instruments that belong to equity instruments, the interest expenditure or dividend distribution shall be used as profits of the enterprise for distribution, the buy-back and write-off are treated as changes of equity, and transaction expenses such as handling charge and commission shall be deducted from the equity.
For financial instruments that belong to financial liabilities, the interest expenditure or dividend distribution shall be treated as borrowing costs in principle, the gain or loss generated due to buy-back or redemption are included in the current profits and losses, and transaction expenses such as handling charge and commission are included in the initial amount of measurement of the issues instruments.
25. Revenue
(1) Standards for confirmation time of sales income
The realization of the income from the sale of commodities is recognized when the Company has already transferred the main risks and consideration in the ownership right of the commodities to the purchaser, the Company has not retained any further management right connected to the ownership right nor implement effective control over the sold commodities, the amount of the revenue can be reliably measured, relevant economic interests are likely to flow into the enterprise, and relevant costs incurred or to be incurred can be measured
reliably.
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. The Company mainly runs the leasing business in the electronics market. It identifies received rental as rental income in the term of lease by using the method of line and the income of other business is identified when the risk premium is transferred according to contract provisions.
The price of a contract or agreement is collected through deferral. In the case of actual financial nature, the amount of income from sales commodities shall be determined according to the fair value of the price of the contract or agreement.
(2) Basis for confirmation of income from transfer of asset use right
When economic interests relevant to transaction probably flow into the enterprise and the amount of income can be reliably measured, the amount of income from transfer of asset use right is determined in the following circumstances:
①The amount of interest income is determined according to the time and actual interest rate of other people using the monetary fund of the enterprise.
②The 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 and method for confirmation of income from rendering of services
Where the results of the labor services provided on the balance sheet date can be estimated reliably, the income from the provision of labor services is recognized with the percentage of completion method. The completion progress of a labor service transaction is determined by surveying the work completed.
When the following conditions are met at the same time, the result of rendering of services can be reliably estimated:
① The amount of income can be measured reliably.
② Relevant economic interests probably flow into the enterprise.
③ The completion progress of transactions can be reliably determined.
④ The costs that have been incurred or will be incurred in transactions can be reliably measured.
The total amount of the income from the provision of labor services is determined according to the price money received or receivable of a relevant contract or agreement, unless the price money received or receivable of a relevant contract or agreement is unfair. The labor services income of the current period is recognized on the balance sheet date according to the resulted amount of the total amount of income from provision of labor services times the completion percentage and deducted by the accumulative amount of the recognized income from provision of labor services in previous accounting periods. At the same time, the labor cost of the current period is carried forward according to the estimated total cost of the provision of labor services times the completion percentage and deducted by the accumulative amount of the recognized 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:
① Where it is estimated that the labor services cost incurred can be compensated, the income from provision of labor services is confirmed according to the amount of the labor services cost incurred and the same amount is transferred into the labor cost.
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.② Where it is estimated that the labor services cost incurred cannot be compensated, the labor services cost 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 commodity sales and labor service and these two parts can be differentiated from each other and can be separately measured, commodity sales and labor service are handled separately. If they cannot be differentiated from each other or they can be differentiated from each other but cannot be separately measured, both parts will be handled as commodity sales.
(4) Basis and method for confirmation of income from construction contracts
① When the results of construction contracts can be reliably estimated, relevant income from contracts and costs of contracts are confirmed based on the method of completion percentage. The method of completion percentage refers to the method for confirming income from contracts and costs of contracts according to the completion progress of contracts. The completion progress of a contract is determined according to the ratio of actual accumulated cost of the contract to estimated total costs of the contract.
When the following conditions are met at the same time, the result of a fixed construction contract can be reliably estimated:
A. The total income from the contract can be reliably measured;
B. Economic interests relevant to the contract probably flow into the enterprise.
C. The actual costs of the contract can be clearly distinguished and reliably measured;
D. The completion progress of the contract and the costs needed for completing the contract can be reliably determined.
When the following conditions are met at the same time, the result of a cost-plus contract can be reliably estimated:
A. Economic interests relevant to the contract probably flow into the enterprise.
B. The actual costs of the contract can be clearly distinguished and reliably measured.
On the balance sheet date, the amount of total contractual income multiplied by the completion progress, deducting the accumulated confirmed income in the previous accounting period, is identified as the current contractual income; the amount of estimated total contract cost multiplied by the completion progress, deducting the accumulated confirmed cost in the previous accounting period, is identified as the current costs of contract. The change of contract engineering, claim and bonus is included in the total income of contract based on the amount that may be brought and can be reliably calculated.
② If the result of a construction contract cannot be reliably estimated, the contract is processed as follows: A. If the contract cost can be recovered, the income from the contract is identified according to the actual recovered contract cost and the contract cost is identified as the current costs of contract.
B. If the contract cost cannot be recovered, the cost is immediately identified as the costs of contract in the current period when the cost is incurred and the income from the contract is not identified.
③ If the total cost of contract probably exceeds the total income from the contract, the expected loss is immediately identified as costs.
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. (5) Transfer of the assets with repurchase conditions
If the Company signs a repurchase agreement when selling products or transferring other assets, whether the products sold meet the conditions for income recognition is judged according to the articles of the agreement. If the repurchase is a financing transaction, the Company does not recognize sales income when delivering products or assets. If the repurchase price is higher than the selling price, interests are accrued for the difference during repurchase period and recorded into financial expenses.
26. Government subsidies
(1) Basis for determining government subsidies relevant to assets and accounting treatment methods
The government subsidies relevant to assets are identified as deferred income and are included in non-operating income according to the service life of the built or purchased assets;
(2) Basis for determining government subsidies relevant to income and accounting treatment methods
The government subsidies that are related to income and are used to compensate for relevant expenses or losses in later periods are identified as deferred income when they are obtained; the subsidies used to compensate for relevant expenses or losses that have been incurred are identified as the current non-operating income when they are obtained.
When identified government subsidies need to be returned and the balance of relevant deferred income exists, the book balance of relevant deferred income is offset and the excess part is included in the current profits and losses; when relevant deferred income does not exist, the government subsidies are directly included in the current profits and losses.
27. Deferred income tax assets and liabilities
Deferred income tax assets and liabilities are calculated and identified according to the difference (temporary difference) between the taxable basis of the assets and liabilities and their book value. On the balance sheet date, deferred income tax assets and liabilities are measured based on the tax rate applicable to the period when the assets are expected to be recovered or the liabilities are expected to be paid off.
(1) Basis for the confirmation of deferred incomes tax assets
The Company confirms the deferred income tax assets generated due to deductible temporary difference based on the amount of taxable income that is probably obtained to deduct deductible temporary difference and can carry over deductible loss and tax deduction. However, the deferred income tax assets generated due to initial confirmation of assets or liabilities in a transaction that has the following features at the same time: (1) the transaction is not business merger; (2) the transaction does not affect the accounting profit, taxable income or deductible loss.
For the deductible temporary difference relevant to investment of joint ventures, when the following conditions are met at the same time, corresponding deferred income tax assets are confirmed; the temporary difference is probably reversed in the foreseeable future and taxable income used to deduct the deductible temporary difference will probably be obtained in the future.
(2) Basis for confirmation of deferred incomes tax liabilities
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. The temporary difference between the tax payable not paid in the current period and that in previous periods is recognized by the Company as deferred income tax liabilities, excluding:
① Temporary difference formed due to initial confirmation of goodwill;
② Transaction or matter formed due to factors rather than business merger (the transaction or matter does not affect the accounting profit or the temporary difference formed due to taxable income or deductible loss);
③ For the taxable temporary difference relevant to investment of subsidiaries and joint ventures, the reversal time of the temporary difference can be controlled and may not be reversed in the foreseeable future.
An entity shall offset deferred tax assets and deferred tax liabilities if, and only if:
① The entity has a legally enforceable right to settle current tax assets against current tax liabilities;
② The deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realize the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered. 28. Lease
(1) Accounting treatment method of operating lease
① The fee paid by the Company for rented assets is apportioned based on the straight-line method in the whole lease term without deduction of the rent-free period and is recorded into current expenses. The initial direct expenses related to lease transactions, paid by the Company, are recorded into current expenses.
In case that the leasing party undertakes the lease-related expenses that should be undertaken by the Company, the Company deducts the expenses from the total lease fee and the lease fee after deduction is apportioned in the lease term and recorded into current expenses.
② The lease fee received by the Company from leasing of assets is apportioned by the straight-line method in the whole lease term without deduction of the rent-free period and is identified as lease income. The initial direct 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 recognition of the lease income.
In case that the Company undertakes the lease-related expenses which should be undertaken by the lessee, the Company deducts the expenses from the total lease income and the lease expenses after deduction are allocated in the lease term.
(2) Accounting treatment method of financing lease
Accounting treatment of financing lease
① Assets acquired under financing lease: Between the sound value of rented assets and the minimum lease payment, the Company adopts the lower one as the recording value of the rented assets, the minimum lease payment as the recording value of long-term accounts payable, and the difference between the two as financing expenses yet to be confirmed.
The financing expenses yet to be recognized are apportioned by the Company by the actual interest rate method in the lease term of the assets and recorded into accounting expenses. Assets given out under financing lease:
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.② The difference between the total residual value, without guarantee, of the financing lease payment receivable and the current value is recognized by the Company on the lease-beginning date as financing profits yet to be realized, and as the lease income in future lease periods. The initial direct expenses related to lease transactions are recorded into the initial calculation of financing lease payment receivable and the amount of profits recognized in the lease term is reduced.
29. Other important accounting policies and accounting estimates
(1) Changes of accounting policies
No change was made to the main accounting estimates in the current period.
(2) Changes of accounting estimates
No change was made to the main accounting estimates in the report period.
30. Changes of important accounting policies and accounting estimates
(1) Changes of important accounting policies
□ Applicable√ Not applicable
(2) Changes of important accounting estimates
□ Applicable√ Not applicable
VI. Taxes
1. Main tax categories and tax rates
||||
|-|-|-|
|Tax Category|Basis|Tax Rate|
|Value-added tax|Sales of goods|17|
|Business tax|Revenue from rental and interest on loans|5|
|Urban maintenance and construction tax|Turnover tax payable|7|
|Enterprise income tax|Taxable income|25, 15|

Tax payers when different enterprise income tax rates exist
|||
|-|-|
|Name of tax payer|Income tax rate|
|Xi’an SEG Electronics Market Co., Ltd.|15|
|Xi’an Hairong SEG Electronics Market Co., Ltd.|15|

2. Tax preference
According to the Letter of Confirmation Doc.No.[2014] 134 issued by Shaanxi Development and Reform Commission,Xi’an SEG Electronics Market Co., Ltd., a subsidiary of the Company, is engaged in projects
encouraged by the nation and complies with the corporate income tax preference policy for development of the
west regions. Therefore, the corporate income tax shall be paid at the rate of15%.
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. According to the Letter of Confirmation Doc.No.[2014] 060 issued by Shaanxi Development and Reform Commission,Xi’an Hairong SEG Electronics Market Co., Ltd., a subsidiary of the Company, is engaged in projects encouraged by the nation and complies with the corporate income tax preference policy for development of the west regions. Therefore, the corporate income tax shall be paid at the rate of15%.
VII. Notes on Items of Consolidated Financial Statements
1. Monetary capital
Unit: Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Cash on hand|639,646.86|602,592.57|
|Bank deposit|155,582,887.30|381,404,611.82|
|Other monetary capital|49,476.31|1,049,476.31|
|Total|156,272,010.47|383,056,680.70|

 Other Descriptions
An amount of RMB 1 million in other monetary capital is the deposit paid for subsidiaries on credit cards. 2. Notes receivable
(1) Types of notes receivable
Unit: Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Bank's acceptance bill|170,000.00|84,618.08|
|Total|170,000.00|84,618.08|

 3. Accounts receivable
(1) Accounts receivable disclosed by type
Unit: Yuan
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Closing balance|||||Opening balance|||||
|Category|Book balance||Bad debt provision||Book|Book balance||Bad debt provision||Book|
||Amount|Percentage|Amount|Percentage|value|Amount|Percentage|Amount|Percentage|value|
|Accounts||92.07%||||185,866,040.16|||||
|receivable where|||||||||||
||135,773,||||135,773,|||||185,866,|
|bad debt|||||||94.08%||||
||418.34||||418.34|||||040.16|
|provision is|||||||||||
|accrued according|||||||||||

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|to credit risk|||||||||||
|feature|||||||||||
|combination|||||||||||
|Accounts|11,699,138.18|7.93%||100.00%|||5.92%|11,699,138.18|100.00%||
|receivable with an|||||||||||
|insignificant|||||||||||
|amount|||11,699,1|||11,699,1|||||
|individually, for|||38.18|||38.18|||||
|which bad debt|||||||||||
|provision is|||||||||||
|separately accrued|||||||||||
||147,472,556.52|100.00%|11,699,1|7.93%|135,773,418.34|197,565,|100.00%|11,699,138.18|5.92%|185,866040.16|
|Total|||||||||||
||||38.18|||178.34|||||

 Accounts receivable with a significant amount individually, for which bad debt provision is separately accrued at the end of period:□ Applicable√ Not applicable
Accounts receivable in the combination, for which bad debt provision was accrued by the aging analysis method:
√ Applicable□ Not applicable
Unit: Yuan Closing balance
Aging
|||
|-|-|
|Accounts receivable|Bad debt provision|

Sub-item within one year
Less than one year 135,773,418.34
Subtotal of the accounts with 135,773,418.34
a duration of less than one
year
Total 135,773,418.34
Description of basis for confirming the combination:
Accounts receivable in a combination, for which bad debt provisions are made using the Percentage of Total Accounts Receivable Outstanding method
□ Applicable√ Not applicable
Among the combination, accounts receivable for which bad debt provision is computed by adopting other methods:
1. Accounts receivable with an insignificant amount individually, for which bad debt provision is separately accrued
||||||
|-|-|-|-|-|
||Closing balance||||
|Name of debtor|Accounts receivable|Bad debt|Percentage ofprovision||
|||||Reason for provision|
|||provision|||

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||||
|-|-|-|-|-|
||Closing balance||||
|Name of debtor|Accounts receivable|Bad debt|Percentage of|Reason for provision|
|||provision|provision||
|Jiangsu Unicom|3,092,011.09|3,092,011.09|100.00|The accounts receivable areuncollectible because they havebeen outstanding for more thanfive years.|
|Shenzhen ShuangxionghuiIndustrial Co., Ltd.|2,160,725.63|2,160,725.63|100.00|The accounts receivable areuncollectible because they havebeen outstanding for more thanfive years.|
|Shenzhen LiuYuanshun IndustrialCo., Ltd.|1,906,865.35|1,906,865.35|100.00|The accounts receivable areuncollectible because they havebeen outstanding for more thanfive years.|
|Zhejiang Financial Information Co.,Ltd.|786,000.00|786,000.00|100.00|The accounts receivable areuncollectible because they havebeen outstanding for more thanfive years.|
|Shanghai Tianci Industrial Co., Ltd.|899,000.00|899,000.00|100.00|The accounts receivable areuncollectible because they havebeen outstanding for more thanfive years.|
|Other units|2,854,536.11|2,854,536.11|100.00|The accounts receivable areuncollectible because they havebeen outstanding too long.|
|Total|11,699,138.18|11,699,138.18|100.00|---|

(2) Accounts receivable with top 5 closing balance collected based on arrears party
|||||
|-|-|-|-|
||Closing balance|Percentage in the total amount of|Accrued bad debt|
|Name of debtor||||
|||accounts receivable|provision|
|TOP STAR COMMUNICATION|45,082,280.95|30.57|---|
|BORICLE INTL|18,751,525.67|12.72|---|
|Shenzhen Runneng Digital TechnologyCo., Ltd.|16,059,060.34|10.89|---|
|Dalian Dier Computer Co., Ltd.|15,887,560.50|10.77|---|
|ELECSHACK INC|6,485,001.01|4.40|---|
|Total|102,265,428.47|69.35|---|

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. 4. Advances
(1) Advances listed according to duration
Unit: Yuan
||||||
|-|-|-|-|-|
||Closing balance||Opening balance||
|Aging|||||
||Amount|Percentage|Amount|Percentage|
|Less than one year|107,855,702.35|100.00%|94,633,317.07|100.00%|
|Total|107,855,702.35|--|94,633,317.07|--|

The reason why the advances of a significant amount aged for more than 1 year are not settled must be provided.
(2) Advances with top 5 closing balance collected based on advance object
||||||
|-|-|-|-|-|
|||Percentage in the total|Advancepayment date||
|Company name|Period-end amount|amount of accounts||Reason for non-settlement|
|||receivable|||
|Xi'an Gaoke (Group) New WestChina Industrial Development Co.,Ltd.|20,000,000.00|18.54|Less than oneyear|Advance rental payment|
|Tonmac International Electronics(Suzhou) Co., Ltd.|19,922,132.67|18.47|Less than oneyear|Advance rental payment|
|Suzhou Yuanshun SEG Digital PlazaManagement Co., Ltd.|9,570,927.85|8.87|Less than oneyear|Advance rental payment|
|Henan Dixintong Trading Co., Ltd.|7,847,837.40|7.28|Less than oneyear|Advance payment forgoods|
|Kepu Trade (Shenzhen) Co., Ltd.|6,840,949.04|6.34|Less than oneyear|Advance payment forgoods|
|Total|64,181,846.96|59.51|---|---|

5. Other receivables
(1) Other receivables disclosed by type
Unit: Yuan
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Closing balance|||||Opening balance|||||
|Category|Book balance||Bad debt provision||Book|Book balance||Bad debt provision||Book|
||Amount|Percentage|Amount|Percentage|value|Amount|Percentage|Amount|Percentage|value|
|Other receivableswith a significant|14,434,5|18.80%|14,434,5|||14,434,547.87||14,434,5|100.00%||
|||||100.00%|||11.31%||||
||47.87||47.87|||||47.87|||

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Closing balance|||||Opening balance|||||
|Category|Book balance||Bad debt provision||Book|Book balance||Bad debt provision||Book|
||Amount|Percentage|Amount|Percentage|value|Amount|Percentage|Amount|Percentage|value|
|amount|||||||||||
|individually, for|||||||||||
|which bad debt|||||||||||
|provision is|||||||||||
|separately|||||||||||
|accrued|||||||||||
|Other receivables|44,551,322.36|16.59%|||||74.74%||||
|where bad debt|||||||||||
|provision is|||||||||||
|accrued|||||44,545,|95,371,||||95,366,1|
||||6,122.91|0.05%||||5,816.71|0.01%||
|according to|||||199.45|972.98||||56.27|
|credit risk|||||||||||
|feature|||||||||||
|combination|||||||||||
||12,736,918.34|16.59%|||12,730,|4,516,3|3.54%|||4,510,58|
|Portfolio 1|||6,122.91|0.05%||||5,816.71|0.13%||
||||||795.43|98.14||||1.43|
||31,814,404.02|41.43%|||31,814,|90,855,|71.20%|||90,855,5|
|Portfolio 2|||---|---||||---|---||
||||||404.02|574.84||||74.84|
|Other receivables|17,800,002.44|23.18%|||||13.95%||||
|with an|||||||||||
|insignificant|||||||||||
|amount|||||||||||
||||17,800,0|||17,800,||17,800,0|||
|individually, for||||100.00%|||||100.00%||
||||02.44|||002.44||02.44|||
|which bad debt|||||||||||
|provision is|||||||||||
|separately|||||||||||
|accrued|||||||||||
||76,785,872.67|100.00%|32,240,6||44,545,199.45|127,606|100.00%|32,240,3||95,366,156.27|
|Total||||41.99%|||||25.27%||
||||73.22|||,523.29||67.02|||

 Other receivables with a significant amount individually, for which bad debt provision is separately accrued:
√ Applicable□ Not applicable
Unit: Yuan
||||||
|-|-|-|-|-|
|Other receivables (by|Closing balance||||
|company)|Other receivables|Bad debt provision|Percentage|Reason for provision|
||8,530,276.35|8,530,276.35|100.00%|The accounts receivable|
|Yangjiang Yuntong|||||
|||||are uncollectible because|
|Grease Co., Ltd.|||||
|||||they have been|

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||||
|-|-|-|-|-|
|||||outstanding for more|
|||||than five years.|
||5,904,271.52|5,904,271.52|100.00%|The accounts receivable|
|Creditor’s right||||are uncollectible because|
|transferred in by SEG||||they have been|
|Communications||||outstanding for more|
|||||than five years.|
|Total|14,434,547.87|14,434,547.87|--|--|

Among the combinations, other receivables for which bad debt provision is computed by aging method:
√ Applicable□ Not applicable
Unit: Yuan
|||||
|-|-|-|-|
||Closing balance|||
|Aging||||
||Other accounts receivable|Bad debt provision|Percentage|
|Sub-item within one year||||
|Less than one year|12,685,444.65|||
|1-2 years|9,593.17|479.64|5.00%|
|2-3 years|27,337.83|2,734.73|10.00%|
|Over 3 years|14,542.69|2,908.54|20.00%|
|Total|12,736,918.34|6,122.91|0.05%|

 Description of basis for confirming the combination:
Other receivables in a combination, for which bad debt provisions are made using the Percentage of Total Receivables Outstanding method:
□ Applicable√ Not applicable
Among the combination, other receivables for which bad debt provision is computed by adopting other methods:
□ Applicable√ Not applicable
(2) Current accrued, recovered or reversed bad debt provision
The amount of the current accrued bad debt provision is RMB 306.20 Yuan and the amount of the current recovered or reversed bad debt provision is RMB 400,000.00 Yuan.
(3) Classification of other receivables by nature
Unit: Yuan
||
|-|
|Period-end book balance|
|28,568,316.79|

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Imprest|2,780,527.21|1,733,960.46|
|Deposit and security deposit|31,814,404.02|90,906,485.24|
|Others|13,622,624.65|6,397,760.80|
|Total|76,785,872.67|127,606,523.29|

 (4) Other receivables with top 5 closing balance collected based on arrears party
Unit: Yuan
|||||||
|-|-|-|-|-|-|
|||Closing balance|Aging|Percentage in the|Closing balance ofbad debt provision|
||Nature of|||total amount of||
|Company name||||||
||receivables|||closing balance of||
|||||other receivables||
|Shenzhen San Miki|Business security|10,000,000.00|Less than one year|||
|||||13.02%||
|Electronics Limited|deposit|||||
|Yangjiang Yuntong|Debt restructuring|8,530,276.35|Over 5 years||8,530,276.35|
|||||11.11%||
|Grease Co., Ltd.|of SEG Orient|||||
|Nantong||6,200,000.00|Less than one year|||
|Construction|Salary deposit for|||||
|||||8.07%||
|Engineering|peasant workers|||||
|Administration||||||
|Creditor’s right||5,904,271.52|Over 5 years||5,904,271.52|
||Debt restructuring|||||
|transferred in by||||||
||of SEG|||7.69%||
|SEG||||||
||Communications|||||
|Communications||||||
|Shenzhen Lianjing|Debt restructuring|5,697,287.51|Over 5 years||5,697,287.51|
|||||7.42%||
|Trade Co., Ltd.|of SEG Orient|||||
|Total|--|36,331,835.38|--|47.32%|20,131,835.38|

 6. Inventory
(1) Classification of inventory
Unit: Yuan
||||||||
|-|-|-|-|-|-|-|
|Item|Closing balance|||Opening balance|||
||Book balance|Provision for loss|Book value|Book balance|Provision for loss|Book value|
|||for decline in|||for decline in||
|||value of|||value of||
|||inventories|||inventories||
|Raw materials||||80,293.26||80,293.26|
|Commodity|4,908,514.56||4,908,514.56|1,039,703.99||1,039,703.99|

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||||||
|-|-|-|-|-|-|-|
|Item|Closing balance|||Opening balance|||
|||Provision for lossfor decline invalue ofinventories|Book value|Book balance|Provision for loss|Book value|
||||||for decline in||
||Book balance||||||
||||||value of||
||||||inventories||
|stocks|||||||
|Low-costconsumables|||208,638.28|202,195.78||202,195.78|
||208,638.28||||||
|Developmentcost|||408,418,255.53|276,959,393.69||276,959,393.69|
||408,418,255.53||||||
|Total|413,535,408.37||413,535,408.37|278,281,586.72||278,281,586.72|

 (2) Description of capitalization amount of borrowing costs included in closing balance of inventory
||||||||
|-|-|-|-|-|-|-|
||Openingbalance||Current period decrease||Closingbalance|Capitalization rate of|
|Inventory item||Current periodincrease|Decrease ofsales|Others||capitalization amount|
|name||||||confirmed in current|
|||||||period (%)|
|Nantong SEGTimes Square|2,885,600.89|6,429,624.66|---|---|9,315,225.55|6.30|
|Total|2,885,600.89|6,429,624.66|---|---|9,315,225.55|---|

 (3) Completed but unsettled assets in construction contracts at the end of the period
Other description: development cost
Unit: Yuan
|||||||
|-|-|-|-|-|-|
|||Expectedcompletion date|Expected|Closing balance||
||Commencement|||||
|Project name|||investment||Opening balance|
||time|||||
||||amount|||
|Nantong SEG TimesSquare|2013.5|2015.12|600,000,000.00|408,418,255.53|276,959,393.69|
|Total|---|---|---|408,418,255.53|276,959,393.69|

 7. Other current assets
Unit: Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Bank financial products|247,411,270.00|322,679,000.00|

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Tax to be deducted and withheld|87,652,365.45|120,700,762.42|
|Others|373,499.61|163,251.07|
|Total|335,437,135.06|443,543,013.49|

 Other description:
8. Financial assets available for sale
(1) Financial assets available for sale
Unit: Yuan
||||||||
|-|-|-|-|-|-|-|
|Item|Closing balance|||Opening balance|||
||Book balance|Impairmentprovision|Book value|Book balance|Impairment|Book value|
||||||provision||
|Available-for-sale equityinstruments|34,787,389.13|15,000.00|34,772,389.13|34,365,035.45||34,350,035.45|
||||||15,000.00||
|Measured by fairvalue|976,996.30||976,996.30|554,642.62||554,642.62|
|Measured by cost|33,810,392.83|15,000.00|33,795,392.83|33,810,392.83|15,000.00|33,795,392.83|
|Total|34,787,389.13|15,000.00|34,772,389.13|34,365,035.45|15,000.00|34,350,035.45|

 (2) Available-for-sale financial assets measured by fair value at the end of the period
Unit: Yuan
|||||
|-|-|-|-|
||Available-for-sale equityinstruments|Available-for-sale debtinstruments||
|Financial assets available for sale|||Total|
|Cost of equity instruments/amortized cost of|90,405.00|||
||||90,405.00|
|debt instruments||||
|Fair value|976,996.30||976,996.30|

 (3) Available-for-sale financial assets measured by cost at the end of the period
Unit: Yuan
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Investedorganization|Book balance||||Impairment provision||||Shareholdingproportion|Cash|
||Periodbeginning|Current|Current|Periodend|Periodbeginning|Current|Current|Periodend||dividends|
|||||||||||of the|
|||period|period|||period|period||||
|||||||||||current|
|||increase|decrease|||increase|decrease||||
|||||||||||period|
|KashgarShenzhen|20,000,000.00|||20,000,000.00|||||||

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Investedorganization|Book balanceCurrent CurrentPeriod Periodperiod periodbeginning endincrease decrease||||Impairment provision||||Shareholdingproportion|Cashdividendsof thecurrentperiod|
|||Current|Currentperioddecrease||Periodbeginning|Currentperiodincrease|Current||||
|||||Period||||Period|||
|||period|||||period||||
|||||end||||end|||
|||increase|||||decrease||||
|City Co., Ltd.|||||||||||
|ShenzhenSEG GPSScientificNavigationsCo., Ltd.|13,515,392.83||||||||||
|||||13,515,|||||||
|||||392.83|||||||
|NanjingShangshaCo., Ltd.|280,000.00||||||||||
|||||280,000|||||||
|||||.00|||||||
|Anshan YibaiCo., Ltd.|15,000.00|||15,000.|15,000.00|||15,000.|||
|||||00||||00|||
|Total|33,810,392.83|||33,810,|15,000.00|||15,000.|--||
|||||392.83||||00|||

9. Long-term equity investment
Unit: Yuan
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Investedorganization||Current period increase/decrease|||||||||Closingbalance ofimpairmentprovision|
||||Negativeinvestment|Investment|Adjustment ofothercomprehensiveincome|||Accruedimpairmentprovision|Others|||
|||||gains and||||||||
||||||||Issued|||||
||Opening|||losses||Other||||Closing||
|||Additional|||||cash|||||
||balance|||confirmed||equity||||balance||
|||investment|||||dividends|||||
|||||under the||changes||||||
||||||||or profits|||||
|||||equity||||||||
|||||method||||||||
|1. Cooperative enterprise||||||||||||
|2. Joint venture||||||||||||
|Shanghai SEGElectronicsMarket Co.,Ltd.||||||||||||
||3,576,788|||-549,912.3||||||3,026,875||
||.18|||1||||||.87||
|ShenzhenHuakong SEGCo., Ltd.|||||101,816,219.19|||||||
||78,523,40|||-4,342,943||||||175,996,6||
||8.83|||.63||||||84.39||
|Subtotal|82,100,19|||-4,892,855|101,816,219.19|||||179,023,5||
||7.01|||.94||||||60.26||
|Total|82,100,19|||-4,892,855|101,816,219.19|||||179,023,5||

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|7.01|.94|60.26|

Other descriptions
10. Investment properties
(1) Investment properties using cost measurement model
√ Applicable□ Not applicable
Unit: Yuan
||||||
|-|-|-|-|-|
|Item|Houses and buildings|Land use right|Construction in progress|Total|
|I. Original book value|||||
|1. Opening balance|705,673,301.76|5,237,512.49||710,910,814.25|
|2. Current period|12,608,327.29||||
|||||12,608,327.29|
|increase|||||
|(1) Outsourcing|||||
|(2) Transfer-in of|12,608,327.29||||
|inventory/fixed|||||
|||||12,608,327.29|
|assets/construction in|||||
|progress|||||
|(3) Business|||||
|merger increase|||||
|3. Amount of|||||
|current period decrease|||||
|(1) Disposal|||||
|(2) Other|||||
|transfer-out|||||
|4. Closing balance|718,281,629.05|5,237,512.49||723,519,141.54|
|II. Accumulated|||||
|depreciation or|||||
|accumulated|||||
|amortization|||||
|1. Opening balance|246,495,704.92|1,852,226.55||248,347,931.47|
|2. Amount of|||||
|||||21,978,504.48|
|current period increase|||||
|(1) Provision or|9,324,956.51||||
|||45,220.68||9,370,177.19|
|amortization|||||
|Other transfer-in|12,608,327.29|||12,608,327.29|

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
|||||
|-|-|-|-|
|3. Amount of||||
|current period decrease||||
|(1) Disposal||||
|(2) Other||||
|transfer-out||||
|4. Closing balance|268,428,988.72|1,897,447.23|270,326,435.95|
|III. Impairment||||
|provision||||
|1. Opening balance||||
|2. Amount of||||
|current period increase||||
|(1) Provision||||
|3. Amount of||||
|current period decrease||||
|(1) Disposal||||
|(2) Other||||
|transfer-out||||
|4. Closing balance||||
|IV. Book value||||
|1. Ending book|449,852,640.33||453,192,705.59|
|||3,340,065.26||
|value||||
|2. Opening book|459,177,596.84||462,562,882.78|
|||3,385,285.94||
|value||||

(2) Investment properties using fair value measurement model
□ Applicable√ Not applicable
(3) Investment properties for which a property right certificate has not been obtained
□ Applicable√ Not applicable
Other descriptions
List of investment properties:
Unit: Yuan
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Owner of investment property|Investment property project|Net value of investment property|
|Shenzhen SEG Co., Ltd.|F2, F4 and F5 of SEG Plaza|235,309,434.93|
|Shenzhen SEG Co., Ltd.|Some floors of Contemporary Window|52,467,564.61|
|Shenzhen SEG Co., Ltd.|Other houses|1,882,416.02|
|Shenzhen SEG Baohua EnterpriseDevelopment Co., Ltd.|Blocks A and B of Baohua Building|34,330,984.75|
|Shenzhen SEG Industrial Investment Co., Ltd.|Some floors of Contemporary Window|2,744,384.26|
|Changsha SEG Development Co., Ltd.|Changsha SEG|126,457,921.02|
|Total|453,192,705.59||

 11. Fixed assets
(1) Information about fixed assets
Unit: Yuan
||||||||
|-|-|-|-|-|-|-|
||Houses andbuildings|Machinery|Transportation|Electronic|||
|Item|||||Other equipment|Total|
|||equipment|vehicles|equipment|||
|I. Original book|||||||
|value|||||||
|1. Opening|48,303,175.02||||||
|||30,320,272.81|5,951,816.82|32,154,377.47|3,598,264.71|120,327,906.83|
|balance|||||||
|2. Amount of|||||||
|current period||27,240.00||262,078.00|12,818.00|302,136.00|
|increase|||||||
|(1) Purchase||27,240.00||262,078.00|12,818.00|302,136.00|
|(2)|||||||
|Transfer-in of|||||||
|construction in|||||||
|progress|||||||
|(3) Business|||||||
|merger increase|||||||
|3. Amount of|12,608,327.29||||||
|current period||335,126.32|214,247.38|199,214.94|6,735.12|13,363,651.05|
|decrease|||||||
|(1) Disposal|||||||
|||335,126.32|214,247.38|199,214.94|6,735.12|755,323.76|
|or scrap|||||||
|Other|12,608,327.29||||||
|||||||12,608,327.29|
|transfer-out|||||||

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||||||
|-|-|-|-|-|-|-|
||Houses andbuildings|Machinery|Transportation|Electronic|||
|Item|||||Other equipment|Total|
|||equipment|vehicles|equipment|||
|4. Closing|35,694,847.73||||||
|||30,012,386.49|5,737,569.44|32,217,240.53|3,604,347.59|107,266,391.78|
|balance|||||||
|II. Accumulated|||||||
|depreciation|||||||
|1. Opening|26,571,597.38||||||
|||28,179,465.09|3,253,103.09|18,892,024.93|2,023,417.91|78,919,608.40|
|balance|||||||
|2. Amount of|435,261.97||||||
|current period||915,963.96|307,157.25|701,788.37|251,931.88|2,612,103.43|
|increase|||||||
|(1)|435,261.97||||||
|||915,963.96|307,157.25|701,788.37|251,931.88|2,612,103.43|
|Provision|||||||
|3. Amount of|12,608,327.29||||||
|current period||172,199.72|180,500.00|131,736.82|1,588.40|13,094,352.23|
|decrease|||||||
|(1) Disposal|||||||
|||172,199.72|180,500.00|131,736.82|1,588.40|486,024.94|
|or scrap|||||||
|Other|12,608,327.29||||||
|||||||12,608,327.29|
|transfer-out|||||||
|4. Closing|14,398,532.06||||||
|||28,923,229.33|3,379,760.34|19,462,076.48|2,273,761.39|68,437,359.60|
|balance|||||||
|III. Impairment|||||||
|provision|||||||
|1. Opening|||||||
|balance|||||||
|2. Amount of|||||||
|current period|||||||
|increase|||||||
|(1)|||||||
|Provision|||||||
|3. Amount of|||||||
|current period|||||||
|decrease|||||||
|(1) Disposal|||||||
|or scrap|||||||
|4. Closing|||||||
|balance|||||||
|IV. Book value|||||||
|1. Ending|21,296,315.67|1,089,157.16|2,357,809.10|12,755,164.05|1,330,586.20|38,829,032.18|

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||||||
|-|-|-|-|-|-|-|
||Houses and|Machinery|Transportation|Electronic|Other equipment||
|Item||||||Total|
||buildings|equipment|vehicles|equipment|||
|book value|||||||
|2. Opening|||||1,574,846.80||
||21,731,577.64|2,140,807.72|2,698,713.73|13,262,352.54||41,408,298.43|
|book value|||||||

(2) Fixed assets not obtaining a property right certificate
Unit: Yuan
||||
|-|-|-|
|||Reason for not obtaining the property right|
|Item|Book value||
|||certificate|
|Houses and buildings|1,214,612.99|Qualification procedures not complete|

 Other descriptions
12. Intangible assets
(1) Information about intangible assets
Unit: Yuan
|||||||
|-|-|-|-|-|-|
||Land use right||Non-patented|||
|Item||Patent right||Outsourced software|Total|
||||technology|||
|I. Original book value||||||
|1. Opening balance|159,759.24|||2,269,353.00|2,429,112.24|
|2. Amount of||||||
|||||545,400.00|545,400.00|
|current period increase||||||
|(1) Purchase||||545,400.00|545,400.00|
|(2) Internal||||||
|R&D||||||
|(3) Business||||||
|merger increase||||||
|3. Amount of current||||||
|period decrease||||||
|(1) Disposal||||||
|4. Closing balance|159,759.24|||2,814,753.00|2,974,512.24|
|II. Accumulated||||||
|amortization||||||
|1. Opening balance|54,754.79|||1,718,769.91|1,773,524.70|
|2. Amount of|1,372.88|||||
|||||141,117.03|142,489.91|
|current period increase||||||

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
|||||
|-|-|-|-|
|(1) Provision|1,372.88|141,117.03|142,489.91|
|3. Amount of||||
|current period decrease||||
|(1) Disposal||||
|4. Closing balance|56,127.67|1,859,886.94|1,916,014.61|
|III. Impairment||||
|provision||||
|1. Opening balance||||
|2. Amount of||||
|current period increase||||
|(1) Provision||||
|3. Amount of||||
|current period decrease||||
|(1) Disposal||||
|4. Closing balance||||
|IV. Book value||||
|1. Ending book|103,631.57|954,866.06||
||||1,058,497.63|
|value||||
|2. Opening book|105,004.45|550,583.09||
||||655,587.54|
|value||||

Proportion of intangible assets formed not through internalR&D of the company to the balance of intangible assets
13. Goodwill
(1) Original book value of goodwill
Unit: Yuan
|||||
|-|-|-|-|
|Name of the investedorganization or theitem contributing to agoodwill|Opening balance|||
|||Current period increase|Current period decrease|
|Changsha SEGDevelopment Co.,Ltd.|10,328,927.82|||
|Total|10,328,927.82|||

 14. Long-term unamortized expenses
Unit: Yuan
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
|||||||
|-|-|-|-|-|-|
||Opening balance|Current period|Amount of current|Amount of other|Closing balance|
|Item||||||
|||increase|period amortization|decrease||
|Decoration charges|48,923,477.62|5,421,057.13|6,349,333.11||47,995,201.64|
|Firefighting|111,754.83||||234,733.18|
|||327,283.00|204,304.65|||
|renovation||||||
|Market supporting|733,445.55||||712,589.25|
||||20,856.30|||
|fee of block B||||||
|Total|49,768,678.00|5,748,340.13|6,574,494.06||48,942,524.07|

 Other descriptions
15. Deferred income tax assets and liabilities
(1) Deferred income tax assets not offset
Unit: Yuan
||||||
|-|-|-|-|-|
||Closing balance||Opening balance||
|Item|Deductible temporarydifference|Deferred income tax|Deductible temporary|Deferred income tax|
|||assets|difference|assets|
|Asset impairment|39,372,219.55||||
|||9,843,054.88|32,658,252.58|8,164,563.16|
|provision|||||
|Government subsidies|9,500,000.00||||
|included in deferred||2,375,000.00|9,500,000.00|2,375,000.00|
|income|||||
|Total|48,872,219.55|12,218,054.88|42,158,252.58|10,539,563.16|

 (2) Deferred income tax liabilities not offset
Unit: Yuan
||||||
|-|-|-|-|-|
||Closing balance||Opening balance||
|Item|Taxable temporarydifference|Deferred income tax|Taxable temporary|Deferred income tax|
|||liabilities|difference|liabilities|
|Asset evaluation|66,082,439.68||||
|increment for merger of|||||
|||16,520,609.92|67,877,937.66|16,969,484.39|
|not the same controlling|||||
|enterprise|||||
|(2) Gains and losses|976,996.30||||
|from changes of fair|||||
|value of the||244,249.08|464,237.62|116,059.41|
|available-for-sale|||||
|financial assets|||||

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||||
|-|-|-|-|-|
||Closing balance||Opening balance||
|Item|Taxable temporary|Deferred income taxliabilities|Taxable temporary|Deferred income taxliabilities|
||difference||difference||
|Total|67,059,435.98|16,764,859.00|68,342,175.28|17,085,543.80|

 (3) Deferred income tax assets or liabilities listed in the form of net amount after offset
Unit: Yuan
||||||
|-|-|-|-|-|
|Item|Year-end mutual offset|Year-end balance ofdeferred income taxassets and liabilitiesafter offset|Beginning mutual offset|Beginning balance ofdeferred income taxassets and liabilitiesafter offset|
||amount of deferred||amount of deferred||
||income tax assets and||income tax assets and||
||liabilities||liabilities||
|Deferred income taxassets||12,218,054.88||10,539,563.16|
|Deferred income taxliabilities||16,764,859.00||17,085,543.80|

(4) Details of unconfirmed deferred income tax assets
Unit: Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Deductible losses|39,063,382.24|39,063,382.24|
|Asset impairment provision|11,296,252.62|11,296,252.62|
|Total|50,359,634.86|50,359,634.86|

 (5) The deductible loss of deferred income tax assets that have not been confirmed will come to maturity in the following years:
Unit: Yuan
|||||
|-|-|-|-|
|Year|Period-end amount|Period-beginning amount|Remarks|
|Year 2015||||
|Year 2016|13,071,134.55|16,667,858.70||
|Year 2017|7,431,196.64|7,431,196.64||
|Year 2018|11,864,843.19|12,705,405.96||
|Year 2019|6,696,207.86|||
|Total|39,063,382.24|36,804,461.30|--|

Other description:
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. 16. Other non-current assets
Unit: Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Prepayment for software||520,000.00|
|Prepayment for engineering in electronics|||
|||4,135,063.54|
|market|||
|Total|0.00|4,655,063.54|

 17. Short-term loans
(1) Classification of short-term loans
Unit: Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Pledge loans|60,000,000.00|59,246,687.38|
|Mortgage loans|215,000,000.00|100,000,000.00|
|Guaranteed loans|50,000,000.00|30,000,000.00|
|Total|325,000,000.00|189,246,687.38|

 Notes on the classification of short-term loans:
1. There are no overdue outstanding short-term loans in this period.
2. The collateral of the pledge loan is the export tax rebate of Shenzhen SEG E-Commerce Co., Ltd., a
subsidiary of the Company.
18. Accounts payable
(1) List of accounts payable
Unit: Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Payment for goods|95,196,251.32|195,385,013.38|
|Others|615,651.99|4,744,638.54|
|Total|95,811,903.31|200,129,651.92|

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. 19. Advance receipts
(1) List of advance receipts
Unit: Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Advance brand royalty|9,726,231.22|9,390,743.64|
|Advance rental payment|113,845,673.24|136,482,047.49|
|Advance payment for goods|14,152,253.56|27,013,851.48|
|Advance advertising payment|9,163,330.86|6,353,263.26|
|Others|5,916,430.68|3,819,405.44|
|Total|152,803,919.56|183,059,311.31|

 (2) Settled but unfinished projects in construction contracts at the end of the period
Not applicable
20. Payroll payable
(1) List of payroll payable
Unit: Yuan
||||||
|-|-|-|-|-|
|Item|Opening balance|Current period increase|Current period decrease|Closing balance|
|1. Short-term payroll|18,719,733.31|37,600,386.26|45,990,147.38|10,329,972.19|
|2. Welfare after leave –|139,110.02||||
|defined contribution||1,725,046.69|1,690,791.40|173,365.31|
|plan|||||
|Total|18,858,843.33|39,325,432.95|47,680,938.78|10,503,337.50|

 (2) List of short-term payroll
Unit: Yuan
||||||
|-|-|-|-|-|
|Item|Opening balance|Current period increase|Current period decrease|Closing balance|
|1. Wages, bonuses,|16,654,352.38||||
|||34,482,389.15|42,382,376.16|8,754,365.37|
|allowances and subsidies|||||
|2. Employee welfare||596,821.66|401,593.38|195,228.28|
|3. Social insurance premiums|16,498.16|927,853.27|804,225.19|140,126.24|
|Including: Medical|10,294.54||||
|||846,788.68|723,338.06|133,745.16|
|insurance premiums:|||||

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||||
|-|-|-|-|-|
|Work injury|265.38||||
|||25,250.15|25,263.53|252.00|
|insurance|||||
|Maternity|298.54||||
|||51,149.36|51,284.90|163.00|
|insurance|||||
|Supplementary|5,639.70||||
|||4,665.08|4,338.70|5,966.08|
|medical insurance|||||
|4. Housing fund|1,159,284.62|1,148,447.53|1,781,788.26|525,943.89|
|5. Labor union expenditure|617,715.42||||
|and employee education||440,635.60|403,395.01|654,956.01|
|fund|||||
|8. Other short-term payroll|271,882.73|4,239.05|216,769.38|59,352.40|
|Total|18,719,733.31|37,600,386.26|45,990,147.38|10,329,972.19|

 (3) Defined contribution plan
Unit: Yuan
||||||
|-|-|-|-|-|
|Item|Opening balance|Current period increase|Current period decrease|Closing balance|
|1. Pension insurance|9,288.08|1,074,177.65|1,010,100.42|73,365.31|
|Unemployment insurance|663.43||||
|||39,425.55|40,088.98|0.00|
|premium|||||
|3. Supplementary pension|129,158.51||||
|||611,443.49|640,602.00|100,000.00|
|payment|||||
|Total|139,110.02|1,725,046.69|1,690,791.40|173,365.31|

 21. Taxes payable
Unit: Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Value-added tax|14,283,567.89|1,659,452.21|
|Business tax|23,928.55|1,028,150.77|
|Enterprise income tax|21,569,497.53|32,336,241.19|
|Individual income tax|598,499.91|1,098,931.96|
|Urban maintenance and construction tax|55,304.97|720,549.53|
|Education surtax|13,111.29|461,020.60|
|Housing property tax|2,307,603.72|1,721,703.23|
|Stamp tax and water fund|177,558.46|254,539.95|
|Others|4,559,253.16|165,107.03|

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Total|43,588,325.48|39,445,696.47|

 22. Interest payable
Unit: Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Interest payable on short-term loans|85,722.22|232,749.99|
|Interest payable of short-term financing|||
|||10,062,500.66|
|bonds|||
|Total|85,722.22|10,295,250.65|

 Important overdue outstanding interest: not applicable
23. Dividends payable
Unit: Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Common stock dividends|3,240,318.18|1,717,882.74|
|Total|3,240,318.18|1,717,882.74|

 24. Other payables
(1) Other payables listed based on nature
Unit: Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Deposit and security deposit|115,820,479.60|119,826,258.74|
|Central air conditioner maintenance cost|13,177,749.69||
|||11,754,618.52|
|and special maintenance fund|||
|Receipts under custody|9,273,754.75|13,624,148.51|
|Funds of related parties||57,653,186.81|
|Electronics market water and electricity|19,209,967.16||
|||19,858,574.55|
|charges and rental payable|||
|Others|44,082,006.82|22,087,615.93|
|Total|201,563,958.02|244,804,403.06|

25. Other current liabilities
Unit: Yuan
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Short-term bonds payable||250,000,000.00|
|Total||250,000,000.00|

 26. Bonds payable
(1) Increase and decrease changes of bonds payable (excluding other financial instruments such as preferred stocks and sustainable debts that belong to financial liabilities)
Unit: Yuan
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Bond name|Book value|Issuingdate|Bond term||Period-beg|Issue inthis period|Provision forinterest atpar|Premium anddiscountamortization||Period-endamount|
|||||Issue|||||Current||
||||||inning||||||
|||||amount|||||repayment||
||||||amount||||||
|Short-termfinancing bonds|100.00|May 15,2014|365 days|250,000,00|250,000,00||5,687,499.34||250,000,0||
|||||0.00|0.00||||00.00||
|Total|--|--|--|250,000,00|250,000,00||5,687,499.34||250,000,0||
|||||0.00|0.00||||00.00||

27. Deferred income
Unit: Yuan
|||||||
|-|-|-|-|-|-|
||Opening balance|Current period|Current period|Closing balance|Cause|
|Item||||||
|||increase|decrease|||
|Government|9,705,371.01|||9,669,742.89||
||||35,628.12|||
|subsidies||||||
|Total|9,705,371.01||35,628.12|9,669,742.89|--|

Items involving government subsidies:
Unit: Yuan
||||||||
|-|-|-|-|-|-|-|
||Beginningbalance|Amount of newsubsidies in thisperiod|Amount of|Other changes|Closing balance||
|||||||Relevant to|
||||non-operating||||
|Liability item||||||assets/relevant to|
||||income in this||||
|||||||income|
||||period||||
|Subsidies for|93,659.89||||58,031.77||
|||||||Relevant to|
|online SEG|||35,628.12||||
|||||||assets|
|projects|||||||
|Subsidies for|111,711.12||||111,711.12|Relevant to|
|project funds||||||income|
|Support project|9,500,000.00||||9,500,000.00|Relevant to|

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||||
|-|-|-|-|-|
|for construction|||a|ssets|
|of Nantong SEG|||||
|Electronics|||||
|Market|||||
|Total|9,705,371.01|35,628.12|9,669,742.89|--|

 28. Share capital
Unit: Yuan
|||||||||
|-|-|-|-|-|-|-|-|
|||Increase or decrease this time (+)|||||Closingbalance|
||Openingbalance|New shareoffering||Capitalizationof publicreserve|Others|||
||||Bonus share|||Subtotal||
|Sum of shares|784,799,010.00||||||784,799,010.00|

 29. Capital reserve
Unit: Yuan
||||||
|-|-|-|-|-|
|Item|Opening balance|Current period increase|Current period decrease|Closing balance|
|Capital premium (capital|322,339,973.81||||
|||||322,339,973.81|
|share premium)|||||
|Other capital reserves|82,387,283.91|101,816,219.19||184,203,503.10|
|Total|404,727,257.72|101,816,219.19||506,543,476.91|

 Other description: including increase and decrease changes this time and reasons for changes:
The current increase of other capital reserves is caused by non-directive issuance of shares at premium by Shenzhen Huakong SEG Co., Ltd. in the report period. In the consolidated statements of the Company, capital reserve is added according to the equity method.
30. Other comprehensive income
Unit: Yuan
|||||||||
|-|-|-|-|-|-|-|-|
|Item|Openingbalance|Amount incurred in the current period|||||Closingbalance|
|||Pretaxamountobtained inthis period|Less: gains and||Belong toparentcompanyafter tax|Belong to||
||||losses|Less:||a few||
||||transferred in|Income tax||shareholde||
||||from other|||rs after tax||

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
|||||||||
|-|-|-|-|-|-|-|-|
||||comprehensive|||||
||||income in the|||||
||||current period|||||
|II. Other comprehensive income|231,817.05|422,353.68||105,588.42|210,902.31|105,862.95||
||||||||442,719.|
|that can be categorized as gains and||||||||
||||||||36|
|losses||||||||
|Gains and losses from|231,817.05|422,353.68||105,588.42|210,902.31|105,862.95||
||||||||442,719.|
|changes of fair value of the||||||||
||||||||36|
|available-for-sale financial assets||||||||
|Total of other comprehensive|231,817.05|422,353.68||105,588.42|210,902.31|105,862.95|442,719.36|
|income||||||||

 31. Surplus reserve
Unit: Yuan
||||||
|-|-|-|-|-|
|Item|Opening balance|Current period increase|Current period decrease|Closing balance|
|Statutory surplus reserve|102,912,835.67|||102,912,835.67|
|Total|102,912,835.67|||102,912,835.67|

 32. Undistributed profits
Unit: Yuan
||||
|-|-|-|
|Item|Amount incurred in the current period|Amount of the previous period|
|Before adjustment undistributed profits of the endof the previous period|6,299,799.41||
|After adjustment period-beginning undistributedprofit|6,299,799.41||
|Add: Net profits attributable to the parentcompany owner in the current period|34,906,133.61||
|Year-end undistributed profits|41,205,933.02||

33. Operating income and operating cost
Unit: Yuan
||||||
|-|-|-|-|-|
||Amount incurred in the current period||Amount incurred in the previous period||
|Item|||||
||Income|Cost|Income|Cost|
|Main business|425,219,054.09|317,303,931.44|337,216,748.01|248,349,208.37|
|Total|425,219,054.09|317,303,931.44|337,216,748.01|248,349,208.37|

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. 34. Business taxes and surcharges
Unit: Yuan
||||
|-|-|-|
|Item|Amount incurred in the current period|Amount incurred in the previous period|
|Business tax|12,116,694.54|11,276,141.66|
|Urban maintenance and construction tax|926,364.05|852,218.58|
|Education surtax|617,537.62|542,120.27|
|Others|87,433.93|147,373.01|
|Total|13,748,030.14|12,817,853.52|

 35. Financial expenses
Unit: Yuan
||||
|-|-|-|
|Item|Amount incurred in the current period|Amount incurred in the previous period|
|Interest expenses|10,723,583.83|7,784,610.29|
|Less: Interest income|9,503,644.66|6,615,020.39|
|Loss on exchange|-671,695.25|-957,622.03|
|Commission|294,813.31|176,894.59|
|Total|843,057.23|388,862.46|

 36. Assets impairment losses
Unit: Yuan
||||
|-|-|-|
|Item|Amount incurred in the current period|Amount incurred in the previous period|
|1. Loss on bad debt|-399,693.80|-14,558.99|
|14. Others|7,113,660.69|-273,948.29|
|Total|6,713,966.89|-288,507.28|

 37. Investment income
Unit: Yuan
||||
|-|-|-|
||Amount incurred in the current period|Amount incurred in the previous|
|Item|||
|||period|
|Long-term equity investment income by the|-4,892,855.94||
|||-1,746,429.31|
|equity method|||
|Investment income during the possession of|750,000.00||
|available-for-sale financial assets|||
|Others (financial products)|9,594,819.58|13,477,970.15|
|Total|5,451,963.64|11,731,540.84|

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. 38. Non-operating income
Unit: Yuan
|||||
|-|-|-|-|
||Amount incurred in the current|Amount incurred in the|Amount recorded into current|
|Item||||
||period|previous period|non-recurring gains and losses|
|Total gains on disposal of|18,693.00|0.00||
||||18,693.10|
|non-current assets||||
|Gain on disposal of fixed assets|18,693.10|20,120.00|18,693.10|
|Government subsidies|223,828.12|693,467.78|223,828.12|
|Liquidated damages|301,209.17|221,182.08|301,209.17|
|Others|502,248.72|307,565.63|502,248.72|
|Total|1,045,979.11|1,242,335.04|1,045,979.11|

 Government subsidies included in current gains and losses:
Unit: Yuan
|||||
|-|-|-|-|
||Amount incurred in the current|Amount incurred in the|Relevant to assets/relevant to|
|Subsidy item||||
||period|previous period|income|
|Subsidies for online SEG||||
||35,628.12||Relevant to assets|
|projects||||
|Loan with discounted interest|188,200.00||Relevant to income|
|Total|223,828.12||--|

39. Non-operating expenses
Unit: Yuan
|||||
|-|-|-|-|
||Amount incurred in the current|Amount incurred in the|Amount recorded into current|
|Item||||
||period|previous period|non-recurring gains and losses|
|Total loss from disposal of|196,424.21|4,831.25||
||||196,424.21|
|non-current assets||||
|Including: loss from disposal of||||
||196,424.21|4,831.25|196,424.21|
|fixed assets||||
|Abnormal loss||32,400.00||
|Compensation for loss|605,580.63||605,580.63|
|Others|13,784.10|94,733.88|13,784.10|
|Total|815,788.94|131,965.13|815,788.94|

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. 40. Income tax expenses
(1) Income tax
Unit: Yuan
||||
|-|-|-|
|Item|Amount incurred in the current period|Amount incurred in the previous period|
|Income tax of the current period|20,575,833.86|19,139,709.37|
|Deferred income tax|-454,462.94|-506,609.32|
|Total|20,121,370.92|18,633,100.05|

 (2) Adjustment process of accounting profit and income tax
Unit: Yuan
|||
|-|-|
|Item|Amount incurred in the current period|
|Total profit|72,187,205.18|
|Income tax calculated according to statutory or applicable tax|18,046,801.30|
|rate||
|Impact of different tax rates applicable to subsidiaries|-782,151.96|
|Impact of income tax before adjustment|913.35|
|Impact of non-taxable income|187,500.00|
|Impact of non-deductible costs, expenses and losses|351,745.54|
|Impact of deductible temporary difference of deferred income|2,316,562.70|
|tax assets not confirmed in this period or deductible losses||
|Income tax|20,121,370.92|

 Other descriptions
41. Items in the cash flow statement
(1) Other cash received concerning operating activities
Unit: Yuan
||||
|-|-|-|
|Item|Amount incurred in the current period|Amount incurred in the previous period|

 Incomings and outgoings 35,059,959.29 78,123,582.27 Receipt from security deposit for land 60,000,000.00
auction
Goods payment collected from tenants 130,068,994.68 122,433,972.66
Interest income 4,764,834.98 6,615,020.39
Non-operating income 181,571.66 743,165.02
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. Total 230,075,360.61 207,915,740.34 (2) Other paid cash concerning operating activities
Unit: Yuan
||||
|-|-|-|
|Item|Amount incurred in the current period|Amount incurred in the previous period|
|Incomings and outgoings|43,627,781.29|55,893,256.02|
|Goods payment paid for tenants|125,990,506.28|122,556,255.62|
|Cash expenses|21,024,437.31|33,987,297.20|
|Non-operating expenses|1,176,961.97|95,010.95|
|Total|191,819,686.85|212,531,819.79|

 (3) Other cash received concerning financing activities
Unit: Yuan
||||
|-|-|-|
|Item|Amount incurred in the current period|Amount incurred in the previous period|
|Issuance of the Company's short-termfinancing bonds|||
|||250,000,000.00|
|Total||250,000,000.00|

 (4) Other paid cash concerning financing activities
Unit: Yuan
||||
|-|-|-|
|Item|Amount incurred in the current period|Amount incurred in the previous period|
|Interbank financing of related parties|57,650,000.00||
|Payment for cash deposit|||
|Payment for loan interest of related parties|110,222.92||
|Payment for issuance of short-termfinancing bonds|||
||669,500.00|240,000.00|
|Total|58,429,722.92|240,000.00|

 42. Supplementary information to cash flow statement
(1) Supplementary information to cash flow statement
Unit: Yuan
||||
|-|-|-|
|Supplementary data|Amount incurred in the current period|Amount incurred in the previous period|

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Reconciliation of net Profit to cash flows of|--||
|||--|
|operating activities|||
|Net profit|52,065,834.26|51,824,780.37|
|Plus: Asset impairment provision|6,713,966.89|-288,507.28|
|Depreciation of fixed assets, oil & gas assets|11,982,280.62||
|||11,729,374.25|
|and consumable biological assets|||
|Amortization of intangible assets|142,489.91|124,473.92|
|Amortization of long-term expenses to be|6,574,494.06||
|||6,782,332.63|
|apportioned|||
|Loss on disposal of fixed assets, intangible|-177,731.11||
|assets, and other long-term assets (Profit will|||
|be marked with "-")|||
|Loss on discard of fixed asset ("-" for profit)||-15,288.75|
|Financial expenses (“–” for income)|843,057.23|7,784,610.29|
|Income from investment ("-" for loss)|-5,451,963.64|-11,731,540.84|
|Decrease in deferred tax assets (“–” for|-1,678,491.72||
|||2,855.00|
|increase)|||
|Increase in deferred tax liabilities (“–” for|-320,684.81||
|||-578,736.10|
|decrease)|||
|Inventory decrease (“–” for increase)|-135,253,821.65|-76,235,859.67|
|Decrease in accounts receivable relating to|158,080,537.33||
|||-12,125,065.56|
|operating activities (–” for increase)|||
|Increase in accounts payable relating to|-192,107,800.99||
|||-81,655,624.85|
|operating activities (“–” for decrease)|||
|Others|||
|Net cash flow from operating activities|-98,587,833.62|-104,382,196.59|
|Investment and financing activities not|||
|||--|
|Involving cash receipts and payments|||
|3. Net change in cash and cash equivalents|--|--|
|Closing balance|155,272,010.47|629,339,292.58|
|Less: Opening balance of cash|382,056,680.70|335,593,493.81|
|Net increase in cash and cash equivalents|-226,784,670.23|293,745,798.77|

 (2) Composition of cash and cash equivalents
Unit: Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|1. Cash|155,272,010.47|382,056,680.70|

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|3. Period-end balance of cash and cash|155,272,010.47|382,056,680.70|
|equivalents|||

43. Assets where ownership or the right to use is restricted
Unit: Yuan
||||
|-|-|-|
|Item|Ending book value|Reason for restriction|
|Monetary funds|1,000,000.00|Cash deposit for credit card repayment|
|Investment properties|47,919,235.49|Collaterals for bank loans|
|Total|48,919,235.49|--|

44. Foreign currency monetary projects
(1) Foreign currency monetary projects
Unit: Yuan
|||||
|-|-|-|-|
||||Converted RMB balance at the|
|Item|End foreign currency balance|Discount exchange rate||
||||end of the period|
|USD|188,960.00|6.1136|1,155,225.86|
|HK$|239.17|0.7886|188.61|
|USD|13,677,771.01|6.1136|83,620,420.85|

 (2) Description of foreign operational entities: including main places of business, recording currency and selection basis for important foreign operational entities (if the recording currency is changed, the reason shall be disclosed)
□ Applicable√ Not applicable
VIII. Equity in other Subjects
1. Equity in subsidiaries
(1) Composition of enterprise group
||||||||
|-|-|-|-|-|-|-|
||Main place ofbusiness|Place ofregistration|Nature of|Shareholding percentage||Way of|
|Company name|||||||
||||business|Direct|Indirect|acquisition|
|Xi’an SEG|Xi’an|Xi’an|Electronics|65.00%|||
|||||||Investment and|
|Electronics|||market lease||||
|||||||establishment|
|Market Co., Ltd.|||management||||
|Shenzhen SEG|Shenzhen|Shenzhen|Electronics|70.00%||Investment and|
|Electronics|||market lease|||establishment|

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||||||
|-|-|-|-|-|-|-|
||Main place ofbusiness|Place ofregistration|Nature of|Shareholding percentage||Way of|
|Company name|||||||
||||business|Direct|Indirect|acquisition|
|Market|||management||||
|Management|||||||
|Co., Ltd.|||||||
|Suzhou SEG|Su Zhou|Su Zhou|Electronics|45.00%|||
|||||||Investment and|
|Electronics|||market lease||||
|||||||establishment|
|Market Co., Ltd.|||management||||
|Shenzhen|Shenzhen|Shenzhen|Hotel||66.58%||
|Mellow Orange|||management,||||
|||||||Investment and|
|Business Hotel|||consultancy and||||
|||||||establishment|
|Management|||property||||
|Co., Ltd.|||management||||
||Shenzhen|Shenzhen|Petty loan|36.00%|17.02%||
||||business||||
||||(pooling public||||
||||deposits is||||
|Shenzhen SEG||||||Investment and|
||||prohibited)||||
|Credit Co., Ltd.||||||establishment|
||||within the||||
||||administrative||||
||||region of||||
||||Shenzhen.||||
|Shenzhen SEG|Shenzhen|Shenzhen||51.00%|||
|||||||Investment and|
|E-Commerce|||E-commerce||||
|||||||establishment|
|Co., Ltd.|||||||
||Nanjing|Nanjing|Market facilities|100.00%|||
|Shenzhen SEG|||leasing, property||||
|Electronics|||management,||||
|||||||Investment and|
|Market|||sales of||||
|||||||establishment|
|Management|||electronic||||
|Co., Ltd.|||products and||||
||||advertisement||||
||Xi’an|Xi’an|Property leasing,|51.00%|||
|Xi’an Hairong|||sales of||||
|||||||Investment and|
|SEG Electronics|||electronic||||
|||||||establishment|
|Market Co., Ltd.|||products and||||
||||advertisement||||
|Wujiang SEG|Wujiang|Wujiang|Electronics|51.00%|||
|||||||Investment and|
|Electronics|||market lease||||
|||||||establishment|
|Market Co., Ltd.|||management||||
|Wuxi SEG|Wuxi|Wuxi|Electronics|51.00%|||
|||||||Investment and|
|Electronics|||market lease||||
|||||||establishment|
|Market Co., Ltd.|||management||||

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||||||
|-|-|-|-|-|-|-|
||Main place ofbusiness|Place ofregistration|Nature of|Shareholding percentage||Way of|
|Company name|||||||
||||business|Direct|Indirect|acquisition|
|Shunde SEG|Foshan|Foshan||100.00%|||
|Electronics|||Electronics||||
|||||||Investment and|
|Market|||market lease||||
|||||||establishment|
|Management|||management||||
|Co., Ltd.|||||||
|Nanning SEG|Nanning|Nanning||100.00%|||
|Electronics|||Electronics||||
|||||||Investment and|
|Market|||market lease||||
|||||||establishment|
|Management|||management||||
|Co., Ltd.|||||||
|Nantong SEG|Nantong|Nantong||100.00%|||
|Times Square|||Real estate|||Investment and|
|Development|||development|||establishment|
|Co., Ltd.|||||||
|Shenzhen SEG|Shenzhen|Shenzhen||66.58%|||
|||||||Merger of the|
|Baohua|||||||
||||Property lease|||enterprises under|
|Enterprise|||||||
||||and management|||the control of a|
|Development|||||||
|||||||same entity|
|Co., Ltd.|||||||
|Shenzhen SEG|Shenzhen|Shenzhen|Investment in|100.00%||Merger of the|
|Industrial|||industrial and|||enterprises under|
|Investment Co.,|||commercial|||the control of a|
|Ltd.|||business|||same entity|
||Changsha|Changsha||46.00%||Merger of the|
|Changsha SEG|||||||
|||||||enterprises under|
|Development|||Property lease||||
|||||||the control of a|
|Co., Ltd.|||||||
|||||||same entity|
|Yantai SEG|Yantai|Yantai||90.00%|||
|Times Square|||Real estate|||Investment and|
|Development|||development|||establishment|
|Co., Ltd.|||||||
|Nantong SEG|Nantong|Nantong||100.00%|||
|Commercial|||||||
|||||||Investment and|
|Operation|||---||||
|||||||establishment|
|Management|||||||
|Co., Ltd.|||||||
|Suzhou SEG|Su Zhou|Su Zhou||100.00%|||
|Digital Plaza||||||Investment and|
||||---||||
|Management||||||establishment|
|Co., Ltd.|||||||

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||||||
|-|-|-|-|-|-|-|
|Company name|Main place ofbusiness|Place of|Nature of|Shareholding percentage||Way ofacquisition|
|||registration|business|Direct|Indirect||
|Xi'an FengdongNew Town SEGTimes SquareProperties Co.,Ltd.|Xi’an|||100.00%||Investment andestablishment|
||||real estate||||
|||Xi’an|||||
||||development||||

Explanation for the reason why shareholding ratio is different from the ratio of voting power:
For Changsha SEG Development Co., Ltd. (originally named Changha Emerging Development Co., Ltd.), the current capital stock structure is as follows: The company holds46% of shares and is the largest shareholder. In addition, according to the Memorandum of Cooperation Concerning the Stock Equity Project of Joint Investment and Acquisition of Changsha Emerging Development Co., Ltd. signed by and between the Company and Hong Kong Jinhong Group on October
8th,
2008, Hong Kong Jinhong Group agreed to give up the5% of voting power, which would be exercised by the Company, and the voting power ratio of the company becomes51%. 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. Therefore, the Company has obtained the control of Changsha SEG Development Co., Ltd.
Basis where a company holds half or less than half of voting power but still controls the invested company and a company holds more than half of voting power but does not control the invested company:
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. (2) Important non-wholly-owned subsidiaries
Unit: Yuan
||||||
|-|-|-|-|-|
||Equity proportion ofminority shareholders||Current dividends|Minority shareholders'|
|||Current gains of losses|||
|Company name|||distributed to minority|equity balance at the end|
|||of minority shareholders|||
||||shareholders|of the period|
|Shenzhen SEG Credit|46.98%||||
|||5,837,773.70||89,751,270.26|
|Co., Ltd.|||||
|Changsha SEG|54.00%||||
|||710,622.95||59,741,139.05|
|Development Co., Ltd.|||||
|Shenzhen SEG Baohua|33.42%||||
|Enterprise Development||4,543,458.93|6,177,600.00|30,563,497.59|
|Co., Ltd.|||||

(3) Main financial information of important non-wholly-owned subsidiaries
Unit: Yuan
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Companyname|Closing balance||||||Opening balance||||||
||Currentassets:|Non-currentassets|Totalassets|Current|Non-currentliabilities|Totalliabilities|Current|Non-curre|Total|Current|Non-currentliabilities|Totalliabilities|
|||||liabilities|||assets:|nt assets|assets|liabilities|||
|ShenzhenSEGCreditCo., Ltd.|40,446,673.24|494,287,044.21|534,733,717.45|||340,563,282.67||||||313,882,188.08|
|||||340,563,2|||42,768,1|452,858,3|495,626,|313,882,|||
|||||82.67|||50.12|89.93|540.05|188.08|||
|ChangshaSEGDevelopment Co.,Ltd.|10,711,676.27|135,108,204.31|145,819,880.58||16,415,021.51|35,188,141.39|||||16,969,484.39|34,446,520.89|
|||||18,773,11|||4,480,35|139,281,9|143,762,|17,477,0|||
|||||9.88|||9.54|31.91|291.45|36.50|||
|ShenzhenSEGBaohuaEnterpriseDevelopment Co.,Ltd.|81,853,656.14|53,789,731.32|135,643,387.46||116,059.41|44,191,212.09|||||116,059.41|44,856,483.67|
|||||44,075,15|||84,928,2|56,270,65|141,198,|44,740,4|||
|||||2.68|||55.69|3.64|909.33|24.26|||

Unit: Yuan
||||||||||
|-|-|-|-|-|-|-|-|-|
||Amount incurred in the current period||||Amount incurred in the previous period||||
||Operatingincome||Totalcomprehensiveincome|Cash flow ofoperatingactivities|Operatingincome||Total|Cash flow of|
|Company name|||||||||
|||Net profit||||Net profit|comprehensive|operating|
||||||||income|activities|
|Shenzhen SEG|48,064,462.25||1 12,426,082.81|-33,638,954.38|21,129,338.87||||
|||12,426,082.8||||9,420,497.68|9,420,497.68|24,671,946.86|
|Credit Co., Ltd.|||||||||
|Changsha SEG|11,490,331.21||2 1,315,968.42|6,346,992.49|10,653,751.12||||
|Development||1,315,968.4||||306,987.31|306,987.31|5,255,193.02|
|Co., Ltd.|||||||||
|Shenzhen SEG|42,445,648.66||1 13,911,794.97|9,334,694.27|37,623,155.78||||
|Baohua|||||||||
|Enterprise||13,595,029.7||||12,988,755.20|12,915,935.60|14,977,776.96|
|Development|||||||||
|Co., Ltd.|||||||||

2. Equity in cooperative arrangements or joint ventures
(1) Important cooperative enterprises or joint ventures
||||||||
|-|-|-|-|-|-|-|
|Name ofcooperativeenterprise or|Main place ofbusiness|Place ofregistration||Shareholding percentageDirect Indirect||Accountingtreatmentmethod for|
||||Nature of||||
||||||Indirect||
||||business||||

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||||
|-|-|-|-|-|
|joint venture|||||
|ShenzhenHuakong SEGCo., Ltd.|Shenzhen||||
|||Shenzhen|Manufacturing|20.00%|
|Shanghai SEGElectronicsMarket Co., Ltd.|Shanghai||||
|||Shanghai|Service industry|35.00%|

(2) Main financial information of important cooperative enterprises
Unit: Yuan
||||||
|-|-|-|-|-|
||Closing balance/current amount||Opening balance/previous amount||
||Shenzhen Huakong SEGCo., Ltd.|Shanghai SEG||Shanghai SEG|
||||Shenzhen Huakong SEG||
|||Electronics Market Co.,||Electronics Market Co.,|
||||Co., Ltd.||
|||Ltd.||Ltd.|
|Current assets:|337,843,098.02|27,447,238.89|158,732,194.56|30,650,791.15|
|Non-current assets|299,233,325.90|160,921.39|262,002,634.60|37,816.64|
|Total assets|637,076,423.92|27,608,160.28|420,734,829.16|30,688,607.79|
|Current liabilities|26,509,946.68|18,540,148.04|303,841,418.53|20,289,991.11|
|Non-current liabilities|593,568.91|240,573.59|456,054.73||
|Total liabilities|27,103,515.59|18,780,721.63|304,297,473.26|20,289,991.11|
|Minority shareholders'|24,439,321.38||||
||||28,983,272.09||
|equity|||||
|Shareholders' equity|585,533,586.95||||
|attributable to the parent||8,827,438.65|87,454,083.81|10,293,666.63|
|company|||||
|Net asset shares|117,106,717.39||||
|calculated based on||3,089,603.53|19,633,441.82|3,602,783.32|
|shareholding ratio|||||
|- Others|58,889,967.00|-62,727.66|58,889,967.01|-25,995.14|
|Book value for equity|175,996,684.39||||
|investment in||3,026,875.87|78,523,408.83|3,576,788.18|
|cooperative enterprises|||||
|Fair value of equity|2,031,571,382.97||||
|investment in|||||
||||1,759,755,588.42||
|cooperative enterprises|||||
|with public offer|||||

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||||
|-|-|-|-|-|
|Operating income|16,994,189.98|1,282,610.27|24,122,428.29|17,207,347.90|
|Net profit|-28,588,277.77|-1,571,178.03|-29,196,676.72|177,979.17|
|Total comprehensivencome|-28,588,277.77||-29,196,676.72|177,979.17|
|||-1,571,178.03|||

Other descriptions
IX. Disclosure of Fair Value
1. Period-end fair value of assets and liabilities measured based on fair value
Unit: Yuan
||||||
|-|-|-|-|-|
||Period-end fair value||||
|Item|Level-1 fair valuemeasurement|Level-2 fair valuemeasurement|Level-3 fair valuemeasurement|Total|
|(I) Persistent fair value|--|--|--|--|
|measurement|||||
|(II) Available-for-sale|976,996.30|||976,996.30|
|financial assets|||||
|(2) Equity instrument|976,996.30|||976,996.30|
|investment|||||
|II. Non-persistent fair|--|--|--|--|
|value measurement|||||

X. Related Parties and Related Party Transactions
1. Information about parent company of the enterprise
|||||||
|-|-|-|-|-|-|
|Name of parentcompany|Place of registration||Registered Capital|Percentage of the|Percentage of theCompany's votingshares held by theparent company|
|||||Company's shares||
|||Nature of business||||
|||||held by the parent||
|||||company||
|Shenzhen SEGGroup Co., Ltd.|Shenzhen|Comprehensive|135,542.00||30.24%|
|||||30.24%||
|||business||||

The final controlling party of the enterprise is Shenzhen State-owned Assets Supervision and Administration
Commission.
2. Information about subsidiaries of the Company
For information about subsidiaries of the Company, see Note 8 (1).
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. 3. Information about theCompany’s joint ventures and associates
For details about important cooperative enterprises or joint ventures of the enterprise, see Note 8 (2).
4. Information about other related parties
|||
|-|-|
|Name of other related parties|Relationship between other related parties and the Company|
|Shenzhen SEG Property Development Co., Ltd.|Subsidiary of shareholders|
|Shenzhen SEG Group Service Co., Ltd|Subsidiary of shareholders|
|Shenzhen SEG Computers Co., Ltd|Subsidiary of shareholders|
|Shenzhen SEG Hi-tech Industrial Co., Ltd.|Subsidiary of shareholders|
|Shenzhen SEG Real Estate Investment Co., Ltd.|Subsidiary of shareholders|
|Shenzhen SEG Business Operation Co., Ltd.|Subsidiary of the controlling shareholder|

5. Information about related transactions
(1) Related trusted management, contracting and mandatory administration and initial contracting Trusted management/contracting of the Company:
Unit: Yuan
||||||||
|-|-|-|-|-|-|-|
||||Beginning date ofthe trust/contracting|||Confirmed trust|
|||||Ending date of|Pricing basis for|profit/|
|Trustor/|Trustee/|Type of trusted/|||||
|||||the trust/|trust profit/|contracting profit|
|Contractee|Contractor|contracted assets|||||
|||||contracting|contract profit|in the report|
|||||||period|
|||SEG|Feb 1, 2015||||
|Shenzhen SEG|Shenzhen SEG||||Trusteeship||
|||Communications||Jan 31, 2016||0.00|
|Group Co., Ltd.|Co., Ltd.||||Agreement||
|||Market|||||

(2) Information about leases between the Company and related parties
The Company serves as the leasee:
Unit: Yuan
|||||
|-|-|-|-|
|Name of lessor||Rental recognized in this period|Rental recognized in previous|
||Type of leased assets|||
||||period|
|Shenzhen SEG Group Co., Ltd.|The warehouse with its area of|310,587.00||
||809.26 square meters on the 8th||293,100.00|
||floor of SEG Plaza|||

Information about associated lease
1. A subsidiary of the Company serves as the leasee:
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
|||||
|-|-|-|-|
|Name of lessor||Rental recognized in this|Rental recognized in|
||Type of leased assets|||
|||period|previous period|
|Shenzhen SEG Business Operation Co.,Ltd.|The 15th floor of SEGPlaza, with an area of687.01 square meters|253,960.20|---|
|Total|---|253,960.20|---|

 (3) Guarantee of related parties
The Company serves as the guarantor:
Unit: Yuan
||||||
|-|-|-|-|-|
|Warrantee|Amount of guarantee|||Has the guarantee beenfulfilled?|
|||Starting date|Ending date||
|Shenzhen SEG CreditCo., Ltd.|50,000,000.00|||No|
|||Oct. 27, 2014|Oct. 26, 2015||

(4) Lending/Borrowing of related parties
Unit: Yuan
||||||
|-|-|-|-|-|
|Related party|Lending/Borrowingamount|||Remarks|
|||Starting date|Due Date||
|Borrowing|||||
|Shenzhen SEG Group Co.,Ltd.|40,000,000.00||||
|||Dec 31, 2014|Jan 6, 2015||
|Shenzhen SEG Hi-techIndustrial Co., Ltd.|17,650,000.00||||
|||Dec 30, 2014|Jan 20, 2015||
|Lending|||||

(5) Remuneration of key managers
Unit: Yuan
||||
|-|-|-|
|Item|Amount incurred in the current period|Amount incurred in the previous period|
|Remuneration of key managers|132.46|150.36|

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. 6. Receivables and payables of related parties
(1) Receivables
Unit: Yuan
|||||||
|-|-|-|-|-|-|
|Project name||Closing balance||Opening balance||
||Related party|||||
|||Book balance|Bad debt provision|Book balance|Bad debt provision|
|Other accountsreceivable|Shenzhen SEG|12,325.00||||
||Property|||||
|||||12,325.00||
||Development Co.,|||||
||Ltd.|||||
|Other accountsreceivable|Shenzhen SEG|109,358.00||||
|||||214,491.60||
||Group Co., Ltd.|||||

(2) Payables
Unit: Yuan
|||||
|-|-|-|-|
|Project name|Related party|Period-end book balance|Period-end book balance|
|Dividends payable|Shenzhen SEG Computers Co., Ltd|662,310.00|543,510.00|
|Other payables|Shenzhen SEG Group Co., Ltd.||40,000,000.00|
||Shenzhen SEG Property Development|||
|Other payables||||
||Co., Ltd.|||
||Shenzhen SEG Hi-tech Industrial Co.,|||
|Other payables|||17,653,186.81|
||Ltd.|||

XI. Commitments and/or Matters
1. Important commitments
Important commitment on the balance sheet date
(1) Signed lease contract that is being performed or will be performed and minimum rental to be paid in the next year
||||||||
|-|-|-|-|-|-|-|
|||Suzhou SEGElectronics MarketCo., Ltd.|Shenzhen SEG|Xi’an|Shenzhen SEG|Wujiang SEGElectronicsMarket Co., Ltd.|
||Xi’an SEG||Electronics|Hairong SEG|Electronics||
|Remaining lease|||||||
||Electronics||Market|Electronics|Market||
|term|||||||
||Market Co., Ltd.||Management|Market Co.,|Management Co.,||
||||Co., Ltd.|Ltd.|Ltd.||
|Within one year(including oneyear)|12,875,000.00|16,024,907.88|4,912,813.79|---|---|---|
|Above one year but|13,125,000.00|16,024,907.88|5,060,198.20|---|---|---|

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||||||
|-|-|-|-|-|-|-|
|Remaining leaseterm||Suzhou SEGElectronics MarketCo., Ltd.|Shenzhen SEG|Xi’an|Shenzhen SEG|Wujiang SEGElectronicsMarket Co., Ltd.|
||Xi’an SEG||Electronics|Hairong SEG|Electronics||
||Electronics||Market|Electronics|Market||
||Market Co., Ltd.||Management|Market Co.,|Management Co.,||
||||Co., Ltd.|Ltd.|Ltd.||
|within two years(including twoyears)|||||||
|Above two yearsbut within threeyears (includingthree years)|13,375,000.00|16,234,383.80|5,212,004.15|---|---|---|
|Over 3 years|48,750,000.00|157,211,677.96|15,137,455.15|---|---|---|
|Total|88,125,000.00|205,495,877.52|30,322,471.29|Note *1|Note *2|Note *3|

 (Continued)
||||||
|-|-|-|-|-|
||Nanning SEGElectronics MarketManagement Co., Ltd.|Shunde SEG|||
|Remaining lease|||Wuxi SEG Electronics|Suzhou SEG Digital Plaza|
|||Electronics Market|||
|term|||Market Co., Ltd.|Management Co., Ltd.|
|||Management Co., Ltd.|||
|Within one year(including one year)|6,500,000.00|4,320,000.00|---|13,145,482.73|
|Above one year butwithin two years(including two years)|8,000,000.00|4,800,000.00|---|13,054,290.12|
|Above two years butwithin three years(including threeyears)|8,000,000.00|5,040,000.00|---|13,403,893.21|
|Over 3 years|64,000,000.00|43,087,508.73|---|82,632,739.96|
|Total|86,500,000.00|57,247,508.73|Note *4|122,236,406.02|

 Note*1: Under the cooperation agreement signed by and between both parties,Xi’an Hairong SEG Electronics Market Co., Ltd. pays the rental according to70% of profits of the electronics market. Therefore, the amount of rental in the future is uncertain.
Note*2: The rental of Shenzhen SEG Electronics Market Management Co., Ltd. is adjusted according to the CPI. Therefore, the amount of rental in the future is uncertain.
Note*3: Under the cooperation agreement signed by and between both parties, Wujiang SEG Electronics Market Co., Ltd. pays the rental according to70% of pretax profits of the electronics market. Therefore, the amount of rental in the future is uncertain.
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. Note*4: Wuxi SEG Electronics Market Co., Ltd. is exempted from the rental within the three years before opening of the company and pays the rental in the fourth year according to70% of the pre-tax profits of the electronics market. Therefore, the amount of rental in the future is uncertain.
Except the preceding commitments, the Company has not significant commitments that shall be disclosed or have not been disclosed by June 30, 2015.
XII. Other significant matters
1. Others
(1) Purchase of financial products with idle funds
On the second shareholders meeting held on July 21, 2014, the Proposal on Purchase of Financial Products Using Idle Funds of the Company was passed, which allows the company and its subsidiaries to invest and manage wealth by using idle funds of not more than RMB 1 billion Yuan.
As of June 30, 2015, the amount of financial products purchased by the Company and its subsidiaries is as follows:
Unit: RMB 10,000 Yuan
||||||||
|-|-|-|-|-|-|-|
|||Wujiang SEGElectronicsMarket Co., Ltd.|Shenzhen SEG|Nantong SEG|Wuxi SEGElectronicsMarket Co., Ltd.|Xi’an Hairong SEGElectronics MarketCo., Ltd.|
||Shenzhen||Baohua Enterprise|Times Square|||
|Company name|||||||
||SEG Co., Ltd.||Development Co.,|Development|||
||||Ltd.|Co., Ltd.|||
|Amount|11,050.00|1,800.00|5,800.00|600.00|1,130.00|1,700.00|

 Continued:
|||||||
|-|-|-|-|-|-|
|Companyname|Shenzhen SEG CreditCo., Ltd.|Shenzhen SEGElectronics MarketManagement Co., Ltd.|Xi’an SEG|Changsha SEGDevelopmentCo., Ltd.||
||||Electronics Market||Total|
||||Co., Ltd.|||
|Amount|31.13|280.00|1,700.00|650.00|24,741.13|

 XIII. Notes on Main Items in Financial Statements of the Parent Company
1. Accounts receivable
(1) Accounts receivable disclosed by type
Unit: Yuan
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Category|Closing balance|||||Opening balance|||||
||Book balance||Bad debt provision||Bookvalue|Book balance||Bad debt provision||Bookvalue|
||Amount|Percentage|Amount|Percentage||Amount|Percentage|Amount|Percentage||
|Accounts|7,163,87|77.29%|7,163,87|100.00%||7,163,87|77.29%|7,163,87|100.00%||

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||||||||
|-|-|-|-|-|-|-|-|-|
|receivable with a|6.44||6.44||6.44||6.44||
|significant amount|||||||||
|individually, for|||||||||
|which bad debt|||||||||
|provision is|||||||||
|separately accrued|||||||||
|Accounts|2,105,306.44|22.71%||100.00%||22.71%||100.00%|
|receivable with an|||||||||
|insignificant|||||||||
|amount|||2,105,30||2,105,30||2,105,30||
|individually, for|||6.44||6.44||6.44||
|which bad debt|||||||||
|provision is|||||||||
|separately accrued|||||||||
||9,269,182.88|100.00%|9,269,18|100.00%|9,269,18|100.00%|9,269,18|100.00%|
|Total|||||||||
||||2.88||2.88||2.88||

Accounts receivable with a significant amount individually, for which bad debt provision is separately accrued at the end of period:√ Applicable□ Not applicable
Unit: Yuan
||||||
|-|-|-|-|-|
|Accounts receivable (byorganization)|Closing balance||||
||Accountsreceivable||Percentage||
|||Bad debt provision||Reason for provision|
|Jiangsu Unicom|3,092,011.09||100.00%|The accounts receivable are|
|||||uncollectible because they have|
|||3,092,011.09|||
|||||been outstanding for more than|
|||||five years.|
|Shenzhen LiyuanshunIndustrial Co., Ltd.|1,906,865.35||100.00%|The accounts receivable are|
|||||uncollectible because they have|
|||1,906,865.35|||
|||||been outstanding for more than|
|||||five years.|
|Shanghai Tianci IndustrialCo., Ltd.|899,000.00||100.00%|The accounts receivable are|
|||||uncollectible because they have|
|||899,000.00|||
|||||been outstanding for more than|
|||||five years.|
|Zhejiang Finance InformationPaging Center|786,000.00||100.00%|The accounts receivable are|
|||||uncollectible because they have|
|||786,000.00|||
|||||been outstanding for more than|
|||||five years.|
|Sichuan Huiyuan ElectronicsCo., Ltd.|480,000.00||100.00%|The accounts receivable are|
|||480,000.00||uncollectible because they have|
|||||been outstanding for more than|

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||||
|-|-|-|-|-|
||Closing balanceAccountsBad debt provision Percentage Reason for provisionreceivable||||
|Accounts receivable (by|||||
||||Percentage||
|organization)||Bad debt provision||Reason for provision|
|||||five years.|
|Total|7,163,876.44|7,163,876.44|--|--|

Accounts receivable in the combination, for which bad debt provision was accrued by the aging analysismethod：
□ Applicable√ Not applicable
Accounts receivable in a combination, for which bad debt provisions are made using the Percentage of Total Accounts Receivable Outstanding method
□ Applicable√ Not applicable
Among the combination, accounts receivable for which bad debt provision is computed by adopting other methods:
(2) Accounts receivable with top 5 closing balance collected based on arrears party
|||||
|-|-|-|-|
|Name of debtor|Closing balance|Percentage in the total amount of|Accrued bad debtprovision|
|||accounts receivable||
|Jiangsu Unicom|3,092,011.09|33.36|3,092,011.09|
|Shenzhen Liyuanshun IndustrialCo., Ltd.|1,906,865.35|20.57|1,906,865.35|
|Shanghai Tianci Industrial Co., Ltd.|899,000.00|9.70|899,000.00|
|Zhejiang Finance InformationPaging Center|786,000.00|8.48|786,000.00|
|Sichuan Huiyuan Electronics Co.,Ltd.|480,000.00|5.18|480,000.00|
|Total|7,163,876.44|77.29|7,163,876.44|

 2. Other receivables
(1) Other receivables disclosed by type
Unit: Yuan
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Closing balance|||||Opening balance|||||
|Category|Book balance||Bad debt provision||Bookvalue|Book balance||Bad debt provision||Book|
||Amount|Percentage|Amount|Percentage||Amount|Percentage|Amount|Percentage|value|
|ther receivables|8,530,276.35|||100.00%|||1.96%||100.00%||
|ith a significant|||8,530,27|||8,530,27||8,530,27|||
|||1.54%|||||||||
|mount|||6.35|||6.35||6.35|||
|ndividually, for|||||||||||

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|which bad debt|||||||||||
|provision is|||||||||||
|separately accrued|||||||||||
|Other receivables|527,600,106.07|95.36%||0.00%|527,598,906.07||94.12%||0.00%||
|where bad debt|||||||||||
|provision is||||||||||410,45|
|||||||410,454,|||||
|accrued according|||1,200.00|||||1,200.00||3,048.0|
|||||||248.03|||||
|to credit risk||||||||||3|
|feature|||||||||||
|combination|||||||||||
||1,269,831.71|0.23%||0.09%|1,268,631.71|1,168,21|0.27%||0.1%|1,167,0|
|Portfolio 1|||1,200.00|||||1,200.00|||
|||||||9.48||||19.48|
||526,330,274.36|95.13%||---|526,330,274.36||93.85%||---|409,28|
|||||||409,286,|||||
|Portfolio 2|||---|||||---||6 ,028.5|
|||||||028.55|||||
|||||||||||5|
|Other receivables|17,118,394.49|3.09%||100.00%|||3.92%||100.00%||
|with an|||||||||||
|insignificant|||||||||||
|amount|||17,118,3|||17,118,3||17,118,3|||
|individually, for|||94.49|||94.49||94.49|||
|which bad debt|||||||||||
|provision is|||||||||||
|separately accrued|||||||||||
||553,248,776.91|100.00%||4.64%|527,598,906.07||100.00%||5.88%|410,453,048.03|
||||25,649,8|||436,102,||25,649,8|||
|Total|||||||||||
||||70.84|||918.87||70.84|||

 Other receivables with a significant amount individually, for which bad debt provision is separately accrued
√ Applicable□ Not applicable
Unit: Yuan
|||||
|-|-|-|-|
|Closing balance||||
|Other accountsreceivable||Percentage||
||Bad debt provision||Reason for provision|
|8,530,276.35||5 100.00%|The accounts receivable|
||||are uncollectible because|
||8,530,276.3||they have been|
||||outstanding for more|
||||than five years.|
|8,530,276.35|8,530,276.3|5 --|--|

Among the combinations, accounts receivable for which bad debt provision is computed by aging method:
√ Applicable□ Not applicable
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. Unit: Yuan
|||||
|-|-|-|-|
||Closing balance|||
|Aging||||
||Other accounts receivable|Bad debt provision|Percentage|
|Sub-item within one year||||
||1,263,831.71|||
|Subtotal of the accounts with a||||
||1,263,831.71|||
|duration of less than 1 year||||
|Over 3 years|6,000.00|1,200.00|20.00%|
|Total|1,269,831.71|1,200.00|0.09%|

 Description of basis for confirming the combination:
Other receivables in a combination, for which bad debt provisions are made using the Percentage of Total Receivables Outstanding method
□ Applicable√ Not applicable
Among the combination, accounts receivable for which bad debt provision is computed by adopting other methods:
□ Applicable√ Not applicable
(2) Classification of other receivables by nature
Unit: Yuan
||||
|-|-|-|
|Nature of receivables|Period-end book balance|Period-end book balance|
|Receivables of related parties|524,888,899.98|408,087,205.17|
|Creditor’s right transfer cost|22,664,045.27|22,664,045.27|
|Revolving fund|754,397.50|790,404.70|
|Deposit and security deposit|1,496,544.42|1,247,233.78|
|Others|3,444,889.74|3,314,029.95|
|Total|553,248,776.91|436,102,918.87|

 (3) Other receivables with top 5 closing balance collected based on arrears party
Unit: Yuan
|||||||
|-|-|-|-|-|-|
||Nature of payables||Aging|Percentage in the|Closing balance ofbad debt provision|
|||||total amount of||
|Name of debtor||Closing balance||||
|||||closing balance of||
|||||other receivables||
|Nantong SEG Times|Loans and interests||Within 3 years|||
|Square Development||413,166,505.83||74.68%||
|Co., Ltd.||||||

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
|||||||
|-|-|-|-|-|-|
|Shenzhen SEG|Loans and interests|||||
|E-Commerce Co.,||60,106,849.32|Less than one year|10.86%||
|Ltd.||||||
|Shenzhen SEG|Loans and interests|||||
|Industrial Investment||47,088,490.03|Within four years|8.51%||
|Co., Ltd.||||||
|Yangjiang Yuntong|Debt restructuringof SEG Orient|||||
|||8,530,276.35|Over 5 years|1.54%|8,530,276.35|
|Grease Co., Ltd.||||||
|Shenzhen Lianjing|Debt restructuringof SEG Orient|||||
|||5,697,287.51|Over 5 years|1.03%|5,697,287.51|
|Trade Co., Ltd.||||||
|Total|--|534,589,409.04|--|96.63%|14,227,563.86|

 3. Long-term equity investment
Unit: Yuan
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance|||
|Item|Book balance|Impairment|Book value|Book balance|Impairmentprovision|Book value|
|||provision|||||
|Investment in|269,983,526.24||269,983,526.24|299,983,526.24||299,983,526.24|
|subsidiaries|||||||
|Investment in|179,023,560.26||179,023,560.26|82,100,197.01||82,100,197.01|
|cooperative|||||||
|enterprises and|||||||
|joint ventures|||||||
|Total|449,007,086.50||449,007,086.50|382,083,723.25||382,083,723.25|

 (1) Investment in subsidiaries
Unit: Yuan
||||||||
|-|-|-|-|-|-|-|
||Opening balance|Currentperiodincrease|Currentperioddecrease|Closing balance|Accruedimpairmentprovision|Closing balance|
|Invested organization||||||of impairment|
|||||||provision|
|Shenzhen SEG Baohua|20,512,499.04|||20,512,499.04|||
|Enterprise Development|||||||
|Co., Ltd.|||||||
|Shenzhen SEG Industrial|29,181,027.20|||29,181,027.20|||
|Investment Co., Ltd.|||||||
|Changsha SEG|69,000,000.00|||69,000,000.00|||
|Development Co., Ltd.|||||||
|Shenzhen SEG|2,100,000.00|||2,100,000.00|||
|Electronics Market|||||||

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||||||
|-|-|-|-|-|-|-|
||Opening balance|Current|Current||Accrued|Closing balance|
|Invested organization||period|period|Closing balance|impairment|of impairment|
|||increase|decrease||provision|provision|
|Management Co., Ltd.|||||||
|Suzhou SEG Electronics|1,350,000.00||||||
|||||1,350,000.00|||
|Market Co., Ltd.|||||||
|Xi’an SEG Electronics|1,950,000.00||||||
|||||1,950,000.00|||
|Market Co., Ltd.|||||||
|Shenzhen SEG Credit|54,000,000.00||||||
|||||54,000,000.00|||
|Co., Ltd.|||||||
|Shenzhen SEG|15,300,000.00||||||
|||||15,300,000.00|||
|E-Commerce Co., Ltd.|||||||
|Shenzhen SEG|20,000,000.00||||||
|Electronics Market||||20,000,000.00|||
|Management Co., Ltd.|||||||
|Xi’an Hairong SEG|1,530,000.00||||||
|Electronics Market Co.,||||1,530,000.00|||
|Ltd.|||||||
|Wujiang SEG Electronics|1,530,000.00||||||
|||||1,530,000.00|||
|Market Co., Ltd.|||||||
|Wuxi SEG Electronics|1,530,000.00||||||
|||||1,530,000.00|||
|Market Co., Ltd.|||||||
|Shunde SEG Electronics|6,000,000.00||||||
|Market Management Co.,||||6,000,000.00|||
|Ltd.|||||||
|Nanning SEG Electronics|8,000,000.00||||||
|Market Management Co.,||||8,000,000.00|||
|Ltd.|||||||
|Nantong SEG Times|30,000,000.00||||||
|Square Development Co.,||||30,000,000.00|||
|Ltd.|||||||
|Suzhou SEG Digital|8,000,000.00||||||
|Plaza Management Co.,||||8,000,000.00|||
|Ltd.|||||||
|Xi'an Fengdong New|30,000,000.00||||||
||||30,000,000.||||
|Town SEG Times Square|||||||
||||00||||
|Properties Co., Ltd.|||||||
||299,983,526.24||30,000,000.|269,983,526.24|||
|Total|||||||
||||00||||

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. (2) Investment in cooperative enterprises and joint ventures
Unit: Yuan
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||Openingbalance|Increase/Decrease of the year||||||||||
||||Negativeinvestment|Investment|Adjustmentof othercomprehensive income|Otherequitychanges||||||
||||||||||||Closing|
|||||gains and||||||||
||||||||Issued|||||
|Invested||||losses||||Accrued||Closing|balance of|
|||Additional|||||cash|||||
|organization||||confirmed||||impairment|Others|balance|impairment|
|||investment|||||dividends|||||
|||||under the||||provision|||provision|
||||||||or profits|||||
|||||equity||||||||
|||||method||||||||
|1. Cooperative enterprise||||||||||||
|2. Joint venture||||||||||||
|Shanghai|3,576,788.18|||||||||||
|SEG||||||||||||
|||||-549,912.3||||||3,026,875.||
|Electronics||||||||||||
|||||1||||||87||
|Market Co.,||||||||||||
|Ltd.||||||||||||
|Shenzhen|78,523,408.83||||101,816,219.19|||||||
|Huakong||||-4,342,943||||||175,996,68||
|SEG Co.,||||.63||||||4.39||
|Ltd.||||||||||||
||82,100,197.01|||-4,892,855|101,816,219.19|||||179,023,56||
|Subtotal||||||||||||
|||||.94||||||0.26||
||82,100,197.01|||-4,892,855|101,816,219.19|||||179,023,560.26||
|Total||||||||||||
|||||.94||||||||

(3) Other descriptions
4. Operating revenue and operating cost
Unit: Yuan
||||||
|-|-|-|-|-|
|Item|Amount incurred in the current period||Amount incurred in the previous period||
||Income|Cost|Income|Cost|
|Main business|66,577,264.42|44,695,244.80|67,615,859.10|40,521,511.25|
|Total|66,577,264.42|44,695,244.80|67,615,859.10|40,521,511.25|

 Other description:
5. Investment Income
Unit: Yuan
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Item|Amount incurred in the current period|Amount incurred in the previous period|
|Long-term equity investment income by the|22,060,280.00||
|||20,694,873.17|
|cost method|||
|Long-term equity investment income by the|-4,892,855.94||
|||-1,746,429.31|
|equity method|||
|Investment income during the possession of|750,000.00||
|available-for-sale financial assets|||
|Others|19,701,657.06|8,417,172.69|
|Total|37,619,081.12|27,365,616.55|

 XIV. Supplemental Information
1. Details on non-recurring gains and losses
√ Applicable□ Not applicable
Unit: Yuan
||||
|-|-|-|
|Item|Amount|Remarks|
|Gains and losses from disposal of|-177,731.11||
|||Disposal loss of fixed assets|
|non-current assets|||
||223,828.12|The main purpose is to obtain the loans|
|Government subsidies recorded into current||with discounted interest from the|
|gains and losses (except those closely related||Economic Promotion Bureau of Futian|
|with corporate business and enjoyed||District, Shenzhen, and the support fund|
|according to national standards or certain||for SEG e-Commerce trading platform of|
|quota)||Shenzhen Economy and Trade|
|||Information Committee.|
|Transferred-back impairment provision for|400,000.00||
|accounts receivable, for which separate|||
|impairment tests are carried out|||
|Other non-operating income and expenses|-215,906.84|Payment for liquidated damages of|
|except the above-mentioned items||merchants|
|Less: Amount of affected income tax|35,945.98||
|Influenced amount of minority|-13,635.11||
|shareholders' equity|||
|Total|207,879.30|--|

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 the Public - Non-recurring
Profit and Loss and the reason of classifying the non-recurring profit and loss listed in this announcement as recurring.
□ Applicable√ Not applicable
Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd. 2. Return on equity and earnings per share
|||||
|-|-|-|-|
||Weighted average ROE|Earnings per share||
|Profit in report period||Basic EPS (Yuan/Share)|Diluted EPS|
||||(Yuan/Share)|
|Net profit attributable to common|2.55%|0.0445|0.0445|
|shareholders of the Company||||
|Net profit attributable to common|2.55%|0.0442||
|shareholders of the Company after||||
||||0.0442|
|deduction of -recurring losses and||||
|gains||||

3. Differences in accounting data under Chinese and overseas accounting standards
(1) The differences of net profit and net assets in this financial report calculated based on international and Chinese accounting standards
□ Applicable√ Not applicable
(2) The differences of net profit and net assets in this financial report calculated based on overseas and Chinese accounting standards
□ Applicable√ Not applicable
4. Others
Abnormalities on main items of the financial statements of the Company and notes on reasons
||||||
|-|-|-|-|-|
||Closing balance||Percentage||
|Important item||Opening balance||Reason for change|
||||change (%)||
||156,272,010.47|383,056,680.70|-59.20|Caused by repayment for matured debtsand increase of input for operatingbusiness in the current period.|
|Monetary funds|||||
||170,000.00|84,618.08|100.90|Caused by increase of rental of notesettlement in the current period.|
|Notes receivable|||||
||44,545,199.45|95,366,156.27|-53.29|Caused by recovery of the land biddingdeposit in this period.|
|Other accounts receivable|||||
||413,535,408.37|278,281,586.72|48.60|Caused by increase of development costof SEG Nantong in this period.|
|Inventory|||||
||179,023,560.26|82,100,197.01|118.05|Shenzhen Huakong SEG Co., Ltd.issues stocks in a nondirective mannerat premium in this period and theCompany adds this item|
|Long-term equity|||||
|investment|||||

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||||
|-|-|-|-|-|
||Closing balance||Percentage||
|Important item||Opening balance||Reason for change|
||||change (%)||
|||||correspondingly according to the equitymethod.|
||216,000.00|---|---|Caused by construction of informationsystem not completed in this period|
|Construction in progress|||||
||1,058,497.63|655,587.54|61.46|Caused by increase of expenditure insoftware purchase in this period.|
|Intangible assets|||||
||---|4,655,063.54|-100.00|Caused by carry-over of the electronicsmarket decoration engineering costsprepaid in the previous year andcompleted in this period.|
|Other non-current assets|||||
||325,000,000.00|189,246,687.38|71.73|Caused by increase of bank loans in theprevious year.|
|Short-term borrowing|||||
||95,811,903.31|200,129,651.92|-52.13|Decrease is caused due to goodspayment of SEG e-Commerce supplychain business settlement in this period.|
|Accounts payable|||||
||10,503,337.50|18,858,843.33|-44.31|Some accrued payroll and bonus werepaid in this period.|
|Payroll payable|||||
||85,722.22|10,295,250.65|-99.17|Decrease is caused due to maturity ofshort-term financing bonds issued bythe headquarters and bank loans andpayment for loan interests withheld inthe previous year.|
|Interest payable|||||
||3,240,318.18|1,717,882.74|88.62|Caused by non-payment of dividendsdistributed by subsidiaries in thisperiod.|
|Dividends payable|||||
|||250,000,000.00|-100.00|Caused by payment of the parentcompany for the short-term financingprincipal.|
|Other current liabilities|||||
||442,719.36|231,817.05|90.98|Caused by increase of market value ofYouhao Group’s stocks held in thisperiod.|
|Other comprehensive|||||
|income|||||
||41,205,933.02|6,299,799.41|554.08|Caused by acquisition of net profits thatbelong to the parent company in thisperiod.|
|Undistributed profits|||||
||3,159,048.64|1,693,472.23|86.54|Caused by increase of expenditure ininterests due to increase of loans.|
|Interest expenses|||||
||843,057.23|388,862.46|116.80|Caused by increase of bank loans andissuance of short-term financing bonds|
|Financial cost|||||

Full-text of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
||||||
|-|-|-|-|-|
||Closing balance||Percentage||
|Important item||Opening balance||Reason for change|
||||change (%)||
|||||in this period.|
||6,713,966.89|-288,507.28||Caused by increase of the loan scale andloan impairment provision in thisperiod.|
|Loss from asset|||||
|impairment|||||
||5,451,963.64|11,731,540.84|-53.53|Caused by decrease of income frominvestment recognized according to theequity method in this period.|
|Investment income|||||
||815,788.94|131,965.13|518.19|Caused by liquidated damaged paid byNanning SEG Electronics MarketManagement Co., Ltd. to merchants inthis period.|
|Non-operating expenses|||||

Chapter 10 DOCUMENTS AVAILABLE FOR REFERENCE (I) The Financial Statements with signatures and seals of the legal person, the responsible person of accounting work and the responsible person of the accounting institution;
(II) The original copies of all the files and the manuscripts of public notices of the Company which were disclosed on the newspapers specified by CSRC in the report period.