深赛格B：2019年第一季度报告全文（英文版）

Shenzhen SEG Co. Ltd.Q1 2019 Report

Notice No.:2019-051

April 2019

Chapter 1 Important Notice

The Board of Directors the Board of Supervisors the directors the

supervisors and the senior executives guarantee that the quarterly report is

authentic accurate and complete and that it has no false records misleading

statements or major omissions and they undertake joint and several legal

liabilities.

All directors other than the following directors have attended this board

meeting to review the annual report.Name of director not present

Position of director not

present

Reason for absence Name of proxy

Gao Jianbai Director For work Chen Huijie

Song Pingping Independent director For work Fan Zhiqing

Zhang Yuwang Director For work Chen Huijie

Zhang Liang Director For work Xu Laping

Chairman of the Board Chen Huijie Chief Financial Officer Yan Dongxia

and the responsible person of the accounting institution (accountant in charge)

Yan Dongxia hereby declare that the Financial statements enclosed in this

quarterly report are true accurate and complete.

Chapter 2 Basic Information about the Company

I. Major accounting data and financial indexes

Are retrospective adjustments made to previous financial statements?

□ Yes ? No

Amount of the reporting

period

Amount of the same period

of the previous year

Year-on-year

increase/decrease in the

reporting period

Operating revenue (yuan) 376087480.56 391140155.46 -3.85%

Net profit attributable to shareholders of the

listed company (yuan)

60097292.93 62622931.80 -4.03%

Net profit attributable to shareholders of the

listed company after deducting non-recurring

gains and losses (yuan)

15160088.23 27128268.89 -44.12%

Net cash flow arising from operating activities

(yuan)

-10122641.51 -1165334.33

Basic EPS (yuan/share) 0.0486 0.0507 -4.14%

Diluted EPS (yuan/share) 0.0486 0.0507 -4.14%

Weighted average ROE 2.41% 2.40% 0.01%

Amount at the end of the

reporting period

Amount at the end of the

previous year

Year-on-year

increase/decrease in the

reporting period

Total assets (yuan) 6628767304.85 7128009738.20 -7.00%

Net assets attributable to shareholders of the

listed company (yuan)

1920074451.41 1867881216.44 2.79%

Items and amount of non-recurring gains and losses

√ Applicable □ Not Applicable

Unit: yuan

Item

Amount from the beginning

of year to the end of the

period

Remarks

Profit or loss on disposal of non-current assets (including the

write-off of assets depreciation reserves)

55036051.26

Income from reduction of

holding-shares of Huakong SEG

Government subsidies recognized in current profit or loss (except

those closely related to corporate business and enjoyed according

to national standards or certain quota)

474999.99

Support project fund for the

construction of Nantong SEG

electronics market

Profit and loss from commissioned investment or asset

management

4806398.41

Other items conforming to the definition of non-recurring profit

and loss

349538.55

Less: Amount of affected income tax 15166747.05

Amount of influence of minority shareholders' equity (after

tax)

563036.46

Total 44937204.70 --

An explanation shall be made with regard to the Company's considerations for defining non-recurring profit and loss according to the

Explanatory Announcement No.1 on Information Disclosure for Companies Offering Securities to the Public - Non-recurring Profit

and Loss and the reason of classifying the non-recurring profit and loss listed in this announcement as recurring.

□ Applicable √ Not applicable

In the reporting period no item of non-recurring profit and loss defined and listed according to the Explanatory Announcement No. 1

on Information Disclosure by Companies Offering Securities to the Public — Non-recurring Profit and Loss is defined as an item of

recurring profit and loss.II. Total number of shareholders and shares held by top 10 shareholders at the end of the

reporting period

1. Total number of ordinary shareholders and preferred shareholders restored with voting rights and

shares held by top 10 shareholders

Unit: Share

Total number of ordinary shareholders at

the end of the reporting period

70146

Total number of preferred

shareholders restored with the

voting rights (if any)

Shares held by top 10 shareholders

Name of shareholder

Nature of

shareholder

Proportion of

shareholding

Shares held

Quantity of

restricted

shares held

Information on pledged or frozen

Share status Quantity

Shenzhen SEG Group

Co. Ltd.

State-owned legal

person

56.70% 700628759 450857239

Shenzhen Rongchao

Investment

Development Co.

Ltd.

Domestic

non-state-owned

legal person

0.62% 7660000 0

Liu Guocheng

Domestic natural

person

0.57% 7052702 0

Liu Guohong

Domestic natural

person

0.26% 3234898 0

Gong Qianhua

Overseas natural

person

0.24% 2940000 0

Shanghai Juzhang

Investment

Management Co. Ltd.

Domestic

non-state-owned

legal person

0.21% 2652541 0

China Securities

Finance Corporation

Limited

Domestic

non-state-owned

legal person

0.18% 2271900 0

Xu Yueying

Domestic natural

person

0.14% 1760000 0

China Hi-tech Group

Corporation

State-owned legal

person

0.12% 1500000 0

Chongqing

International Trust

Co. Ltd. - Yuxin

Chuangxin Youshi

No. 12 Assembled

Funds Trust

Others 0.10% 1220000 0

Information on top 10 shareholders of non-restricted shares

Name of shareholder

Quantity of unrestricted

ordinary shares held

Type of share

Type of share Quantity

Shenzhen SEG Group Co. Ltd. 249771520 RMB ordinary shares 249771520

Shenzhen Rongchao Investment

Development Co. Ltd.

7660000 RMB ordinary shares 7660000

Liu Guocheng 7052702 Domestically listed foreign shares 7052702

Liu Guohong 3234898 Domestically listed foreign shares 3234898

Gong Qianhua 2940000 Domestically listed foreign shares 2940000

Shanghai Juzhang Investment Management

Co. Ltd.

2652541 RMB ordinary shares 2652541

China Securities Finance Corporation

Limited

2271900 RMB ordinary shares 2271900

Xu Yueying 1760000 Domestically listed foreign shares 1760000

China Hi-tech Group Corporation 1500000 RMB ordinary shares 1500000

Chongqing International Trust Co. Ltd. -

Yuxin Chuangxin Youshi No. 12

Assembled Funds Trust

1220000 RMB ordinary shares 1220000

Explanations on the association relationship

or concerted action among the

Shenzhen SEG Group Co. Ltd. has no association relationship with other

shareholders and is not a person acting in concert with other shareholders as specified

in the Management Methods for Disclosure of Information on Changes of

above-mentioned shareholders Shareholding Status of Shareholders of Listed Companies. It is unclear whether other

shareholders are persons acting in concert.Information on top 10 ordinary shareholders

participating in securities margin trading (if

any)

None.

Did top 10 ordinary shareholders of the Company or top 10 ordinary shareholders of non-restricted shares conduct agreed repurchase

transactions in the reporting period?

□ Yes √ No

Top 10 ordinary shareholders of the Company or top 10 ordinary shareholders of non-restricted shares did not conduct agreed

repurchase transactions in the reporting period.

2. Total number of preferred shareholders and shares held by top 10 preferred shareholders

□ Applicable √ Not applicable

Chapter 3 Important Matters

I. Changes in main financial data and financial indicators of the reporting period and reasons

√ Applicable □ Not applicable

(I) Items of the Consolidated Balance Sheet Statement

Unit: RMB/Yuan

Item Closing balance Opening balance Difference

Increase/decrease year

on year (%)

Monetary funds 1230137703.98 1757492816.67 -527355112.69 -30.01%

Notes receivable and accounts

receivable

74163820.86 54426228.11 19737592.75 36.26%

Prepayment 1542058.75 2701718.53 -1159659.78 -42.92%

Payroll payable 30080168.48 44065725.59 -13985557.11 -31.74%

Taxes payable 171476588.03 121045597.93 50430990.10 41.66%

Other payables 588676374.70 1021673905.77 -432997531.07 -42.38%

1. Monetary funds decreased by RMB 527355112.69 or 30.01% over the beginning of the period mainly due to repayment of the

restructuring consideration to SEG Group and bank loans.

2. Notes receivable and accounts receivable increased by RMB 19737592.75 or 36.26% over the beginning of the period mainly

because SEG Property Management accrued the management expenses of RMB 20527800.

3. Prepayment decreased by RMB 1159659.78 or 42.92% over the beginning of the period mainly due to business contraction of

SEG Industrial in the reporting period.

4. Payroll payable decreased by RMB 13985557.11 or 31.74% over the beginning of the period mainly because the company

granted part of salaries and bonuses accrued in the previous year.

5. Taxes payable increased by RMB 50430990.10 or 41.66% over the beginning of the period mainly because SEG New Urban

incurred the land VAT for property sales of RMB 21 million and the Company incurred the enterprise income tax of RMB 9246600

for sales of shares of Huakong SEG.

6. Other payables decreased by RMB 432997531.07 or 42.38% over the beginning of the period mainly due to repayment f the

restructuring consideration to SEG Group.(II) Items of the Consolidated Profit Statement

Unit: RMB/Yuan

Item

Amount for the current

period

Amount of the same

period of the previous

year

Difference

Increase/decrease

year on year (%)

Interest income 0.00 5020857.08 -5020857.08 -100.00%

Service charges and commissions 0.00 223839.96 -223839.96 -100.00%

income

Tax and surcharges 31785231.34 10239902.06 21545329.28 210.41%

Sale expenses 5180963.20 7610500.75 -2429537.55 -31.92%

Financial expenses 23195019.91 15524536.56 7670483.35 49.41%

Loss from asset impairment 0.00 3428150.12 -3428150.12 -100.00%

Non-operating revenue 1059075.24 1567854.35 -508779.11 -32.45%

Non-operating expenses 234536.70 4264049.51 -4029512.81 -94.50%

1. Interest income decreased by RMB 5020857.08 or 100% year on year mainly because the equity of SEG Credit was sold in the

previous year and such income was not generated in the reporting period.

2. Service charges and commissions income decreased by RMB 223839.96 or 100% year on year mainly because the equity of SEG

Credit was sold in the previous year and such income was not generated in the reporting period.

3. Tax and surcharges increased by RMB 21545329.28 or 210.41% year on year mainly because SEG New Urban incurred the land

VAT for property sales of RMB 21 million.

4. Sale expenses decreased by RMB 2429537.55 or 31.92% year on year mainly because the sales agent expense paid by SEG New

Urban decreased by RMB 1.55 million year on year and the advertising expenses paid by Nantong SEG and Huizhou Stars decreased

by RMB 670 thousand year on year.

5. Financial expenses increased by RMB 7670483.35 or 49.41% year on year mainly because the interest of RMB 9088400 was

incurred due to issue of corporate bonds of RMB 800 million.

6. Loss from asset impairment decreased by RMB 3428150.12 year on year mainly because SEG Credit accrued the provision for

loan loss in the same the period of the previous year and there is no such impairment in the reporting period as SEG Credit has been

sold.

7. Non-operating revenue decreased by RMB 508779.11 or 32.45% year on year mainly because SEG Property Development

received the subsidy of RMB 666200 for facade renovation of SEG Plaza in the same the period of the previous year and no such

income was generated in the reporting period.

8. Non-operating expenses decreased by RMB 4029512.81 or 94.50% year on year mainly because SEG Real Estate paid for

termination of a contract (2017 Y. 0307 M. C. No. 6835) in the same the period of the previous year.(III) Items of the Consolidated Cash Flow Statement

Unit: RMB/Yuan

Item

Amount for the

current period

Amount for the same

period of the previous

year (adjusted)

Difference

Increase/decrease

year on year (%)

Cash received from interest handling charges and

commissions

371052.26 4661395.77 -4290343.51 -92.04%

Cash paid for goods and service 104282449.76 244997988.68 -140715538.92 -57.44%

Net increase in loans to customers and advances 0.00 -16784988.00 16784988.00

Taxes paid 37114103.27 70845921.44 -33731818.17 -47.61%

Net cash received from disposal of subsidiaries and

other business units

0.00 -3394971.91 3394971.91

Cash paid for purchase and construction of fixed

assets intangible assets and other long-term assets

4150185.67 32963785.60 -28813599.93 -87.41%

Cash paid for investment 793128340.34 350880000.00 442248340.34 126.04%

Cash received from absorbing investment 0.00 980000.00 -980000.00 -100.00%

Cash received from borrowings 250000000.00 152000000.00 98000000.00 64.47%

Cash paid for debt repayment 375632579.00 281320347.76 94312231.24 33.52%

Cash paid for dividend and profit distribution or

interest payment

8805931.09 12986315.44 -4180384.35 -32.19%

1. Cash received from interest handling charges and commissions decreased by RMB 4290343.51 or 92.04% year on year mainly

because the equity of SEG Credit has been transferred in the reporting period and no loan was incurred.

2. Cash paid for goods and service decreased by RMB 140715538.92 or 57.44% year on year mainly because the projects of

Nantong SEG and SEG New Urban have been completed and the expenditure decreased by RMB 141325500 year on year.

3. Net increase in loans to customers and advances decreased by RMB 16784988.00 year on year mainly because no loan was

incurred in the reporting period.

4. Taxes paid decreased by RMB 33731818.17 or 47.61% year on year mainly because taxes paid by SEG Real Estate decreased by

RMB 29478700 year on year.

5. Net cash received from disposal of subsidiaries and other business units decreased by RMB 3394971.91 year on year mainly

because no subsidiaries and other business units were disposed of in the reporting period.

6. Cash paid for purchase and construction of fixed assets intangible assets and other long-term assets decreased by RMB

28813599.93 or 87.41% mainly because this item included the prepayment for equipment by Shenzhen-Shantou Longyan last year.

7. Cash paid for investment increased by RMB 442248340.34 or 126.04% year on year mainly because repayment of the

restructuring consideration of RMB 375626200 to SEG Group.

8. Cash received from absorbing investment decreased by RMB 980000.00 or 100% year on year mainly because the company

acquired the investment from minority shareholders of SEG Yicheng in the same period of the previous year.

9. Cash received from borrowings increased by RMB 98000000.00 or 64.47% year on year mainly because borrowings increased in

the reporting period.

10. Cash paid for debt repayment increased by RMB 94312231.24 or 33.52% year on year mainly because loan repayment

increased in the reporting period.

11. Cash paid for dividend and profit distribution or interest payment decreased by RMB 41803843500 or 32.19% year on year

mainly because SEG Credit paid the interest of RMB 2996600 in the same period of the previous year and this expenditure was not

incurred in the reporting period.II. Progress and impacts of major events and analysis of solutions

√ Applicable □ Not applicable

Overview of major events Disclosure date

Inquiry index for the websites disclosing

the temporary reports

1. Progress of breach of contract by the holding

sub-subsidiary SEG New Urban

April 30 2019

http://www.cninfo.com.cn

Annual Report of 2018 of Shenzhen SEG

Due to such force majeure as severe weather the

construction of the ECO project developed by the holding

sub-subsidiary SEG New Urban was affected resulting in

breach of contract with 585 owners (of which 29 owners

filed lawsuits). As of the end of the reporting period SEG

New Urban has reached a compromise with 417 owners.

Co. Ltd.

January 3 2019

http://www.cninfo.com.cn

Announcement on the Progress of

Breach of Contract by the Holding

Sub-subsidiary

January 10 2019

http://www.cninfo.com.cn

Announcement on the Progress of

Breach of Contract by the Holding

Sub-subsidiary

January 17 2019

http://www.cninfo.com.cn

Announcement on the Progress of

Breach of Contract by the Holding

Sub-subsidiary

January 24 2019

http://www.cninfo.com.cn

Announcement on the Progress of

Breach of Contract by the Holding

Sub-subsidiary

January 31 2019

http://www.cninfo.com.cn

Announcement on the Progress of

Breach of Contract by the Holding

Sub-subsidiary

February 14 2019

http://www.cninfo.com.cn

Announcement on the Progress of

Breach of Contract by the Holding

Sub-subsidiary

February 28 2019

http://www.cninfo.com.cn

Announcement on the Progress of

Breach of Contract by the Holding

Sub-subsidiary

March 7 2019

http://www.cninfo.com.cn

Announcement on the Progress of

Breach of Contract by the Holding

Sub-subsidiary

March 21 2019

http://www.cninfo.com.cn

Announcement on the Progress of

Breach of Contract by the Holding

Sub-subsidiary

March 28 2019

http://www.cninfo.com.cn

Announcement on the Progress of

Breach of Contract by the Holding

Sub-subsidiary

2. Dispute over the lease contract arose between Nanning

Haiqi Real Estate Development Co. Ltd. and Shenzhen SEG

Co. Ltd. Case number: 2016 G. 0102 M. C. No. 3653

Second instance judgment: Nanning SEG shall pay the

liquidated damages of RMB 8 million pay the attorney fee of

RMB 263000 to Nanning Haiqi and pay the case acceptance

fee of RMB 134238.The Company has applied for retrial. On July 11 2018 the

Higher People's Court of Guangxi Zhuang Autonomous

Region decided to put the case on file. On March 22 2019

the company received the Civil Ruling Paper served by the

Higher People's Court of Guangxi Zhuang Autonomous

Region which rejected the re-trial application of the

company. Now the case is fulfilled completely.September 26 2016

http://www.cninfo.com.cn

Announcement of Shenzhen SEG Co.

Ltd. on Receipt of Court Summons and

the Civil Complaint

August 31 2018

http://www.cninfo.com.cn

Semi-Annual Report 2018 of Shenzhen

SEG Co. Ltd.

3. SEG Industrial sued against Shenzhen Wonder Industry

Co. Ltd. Liu Guiyun and Liu Yu for a dispute over the

purchase and sales contract. Case number: (2017) Y. 0304 M.

C. No. 5092; involved amount: 8394100 yuan

The first-instance judgment has taken effect. The claims filed

by SEG Industrial were basically supported except that not

all of the overdue fine was supported and SEG Industrial

has applied for enforcement with the court.Shenzhen Wonder Industry Co. Ltd. and Liu Yu refused to

accept the first instance judgment and applied for re-trial to

Shenzhen Intermediate People's Court. On March 4 2019

the court decided to put the case on file.September 20 2018

http://www.cninfo.com.cn

Announcement of Shenzhen SEG Co.

Ltd. on the Progress of the Lawsuit

Involving Holding Subsidiaries

4. SEG Industrial sued against Shenzhen Yixin Zhongtian

Technology Co. Ltd. Zhe Shaojun and Zhao Xiaoyan for a

dispute over the purchase and sales contract. Case number:

(2017) Y. 0304 M. C. No. 5088; involved amount:

14805700 yuan

The first-instance judgment has taken effect. The claims filed

by SEG Industrial were basically supported except that not

all of the overdue fine was supported.On January 30 2019 Shenzhen Yixin Zhongtian

Technology Co. Ltd. Zhe Shaojun and Zhao Xiaoyan

applied for re-trial to Guangdong Higher People's Court and

the court decided to put the case on file.September 20 2018

http://www.cninfo.com.cn

Announcement of Shenzhen SEG Co.

Ltd. on the Progress of the Lawsuit

Involving Holding Subsidiaries

5. SEG Industrial sued against Shenzhen Comnet

Technology Co. Ltd. Xiao Qingshan Zhou Ronghua

Anhua Meishan Small Loan Co. Ltd. and Shenzhen Baiyide

September 20 2018

http://www.cninfo.com.cn

Announcement of Shenzhen SEG Co.

Ltd. on the Progress of the Lawsuit

Technology Co. Ltd. for a dispute over the purchase and

sales contract. Case number: (2017) Y. 0304 M. C. No. 7976;

involved amount: 5155400 yuan

According to the first-instance judgment SEG Industrial was

the prevailing party. The other party arrested the

first-instance judgment and instituted an appeal. The second

instance is in progress.Involving Holding Subsidiaries

6. SEG Industrial sued against Shenzhen Runneng Digital

Technology Co. Ltd. Xiao Qingshan Zhou Ronghua

Anhua Meishan Small Loan Co. Ltd. and Shenzhen Baiyide

Technology Co. Ltd. for a dispute over the purchase and

sales contract. Case number: (2017) Y. 0304 M. C. No. 7977;

involved amount: 15345000 yuan

According to the first-instance judgment SEG Industrial was

the prevailing party. The other party arrested the

first-instance judgment and instituted an appeal. The second

instance is in progress.September 20 2018

http://www.cninfo.com.cn

Announcement of Shenzhen SEG Co.

Ltd. on the Progress of the Lawsuit

Involving Holding Subsidiaries

7. In the reporting period 16 cases involving Nantong SEG

Operation are not settled yet in which 2 cases are new.Merchants owed the rents and management fees to Nantong

SEG Operation resulting in disputes over lease contracts.

Involved amount: 7813500 yuan

Twelve cases were settled and Nantong SEG Operation was

the prevailing party. The remaining four cases are not settled

among which two are on first trial and the other two are on

second trial.

August 31 2018

http://www.cninfo.com.cn

Semi-Annual Report 2018 of Shenzhen

SEG Co. Ltd.

In the reporting period Nantong SEG is involved in 16

cases. In one case Nantong SEG was the defendant. All

lawsuits arise from disputes over the house decoration

contract involving RMB 34506300. 12 cases have been

settled and are being enforced. One case is under re-trial.Three cases are under second trial.

August 31 2018

http://www.cninfo.com.cn

Semi-Annual Report 2018 of Shenzhen

SEG Co. Ltd.

9. Follow-up on the business transaction between the holding

sub-subsidiary SEG New Urban and Shenzhen Zhaocheng

Group

February 1 2019

http://www.cninfo.com.cn

Risk Warning on Suspension of Some

Bank Accounts of the Holding

Sub-subsidiary

March 2 2019

http://www.cninfo.com.cn

Announcement on the Receipt of the

Legal Instrument & the Progress of

Suspension of Some Bank Accounts of

the Holding Sub-subsidiary

March 22 2019 http://www.cninfo.com.cn

Announcement on Unfreezing Accounts

of the Holding Sub-subsidiary

March 29 2019

http://www.cninfo.com.cn

Risk Warning on the Possibility of the

Holding Sub-subsidiary's Liability for

Guarantee

April 16 2019

http://www.cninfo.com.cn

Announcement on the Receipt of the

Civil Ruling Paper and the Notice for

Assistance in Enforcement

April 23 2019

http://www.cninfo.com.cn

Risk Warning on Matters Related to the

Receipt of the Notice of Contract

Termination by the Holding

Sub-subsidiary

10. Public offering of corporate bonds

To meet the capital needs of the Company during main

business development and to further expand financing

channels based on financial and operational status of the

Company the Company planned to publicly issue corporate

bonds worth RMB 800 million on Shenzhen Stock Exchange

and provided counter-guarantee for mortgage.On January 15 2019 the corporate bonds (1st issue) of

RMB 800 million issued by the Company were listed.

April 30 2019

http://www.cninfo.com.cn/

2018 Annual Report

January 15 2019

http://www.cninfo.com.cn

Announcement on Public Offering of

Corporate Bonds (1st Issue) to Qualified

Investors in 2018

February 19 2019

http://www.cninfo.com.cn

Announcement on Contemplated

Changes in Details of Repayment

Objects of 18 SEG 01 and 18 SEG 02

February 22 2019

http://www.cninfo.com.cn

Announcement on Contemplated

Changes in Details of Repayment

Objects of 18 SEG 01 and 18 SEG 02

11. Retirement of Vice General Manager of the Company

Hong Xi was removed from Vice General Manager of the

Company due to retirement and no longer holds any post in

the Company.January 31 2019

http://www.cninfo.com.cn

Announcement on the Retirement of Vice

General Manager of the Company

12. Reduction of Holding-shares of Shenzhen Huakong SEG

Co. Ltd.

January 15 2019

http://www.cninfo.com.cn

Announcement on the Resolution of the

1st Extraordinary General Meeting in

2019

April 24 2019

http://www.cninfo.com.cn

Announcement on the Progress of

Reduction of Holding-shares of

Shenzhen Huakong SEG Co. Ltd.

13. Suspension of the Construction Project of the PV

Industry Base of Shenzhen-Shantou Special Cooperation &

the Connected Transaction Concerning Proposed Transfer of

100% of the Equity of Shenzhen-Shantou Cooperation Zone

SEG Longyan Energy Technology Co. Ltd. Held by the

Holding Subsidiary

March 12 2019

http://www.cninfo.com.cn

Suggestive Announcement on Suspension

of the Construction Project of the PV

Industry Base of Shenzhen-Shantou

Special Cooperation & the Connected

Transaction Concerning Proposed

Transfer of 100% of the Equity of

Shenzhen-Shantou Cooperation Zone

SEG Longyan Energy Technology Co.

Ltd. Held by the Holding Subsidiary

14. Leasing of the entire commercial podium of SEG Times

Plaza by the wholly-owned subsidiary Nantong SEG Times

Plaza Development Co. Ltd. and execution of the lease

contract

The wholly-owned subsidiary Nantong SEG Times Plaza

Development Co. Ltd. and Red Star Macalline Group

Corporation Ltd. ("Macalline") entered into the Lease

Contract. The Company leased the entire commercial

podium of Nantong SEG Times Plaza (with a total area of

57481 m2) to Macalline. The lease term is 15 years. The

total contract price is RMB 246731000.January 16 2019

http://www.cninfo.com.cn

Announcement on Leasing of the Entire

Commercial Podium of SEG Times Plaza

by the Wholly-owned Subsidiary

Nantong SEG Times Plaza Development

Co. Ltd. and Execution of the Lease

Contract

15. Payment of the transaction consideration of SEG Group

for major assets restructuring

According to the major assets restructuring appraisal results

and the transaction payment method 86.90% of the

transaction consideration for 55% of equity of SEG

Recreation 100% of equity of SEG Property 100% of

equity of SegMaker and 79.02% of equity of SEG Real

Estate (RMB 4481521000 in total) was paid by non-public

offering of shares; 13.10% of the transaction consideration

(RMB 675626200) was paid in cash.

On January 19 2017 the business registration alteration

procedures for the four target companies involved in the

major assets restructuring of SEG Group were completed.

On February 25 2017 450857239 A-shares were

determined for non-public offering in the major assets

restructuring and were listed on March 6 2017.On March 7 2019 payment for the consideration of RMB

675626200 in cash was completed.

January 18 2017

http://www.cninfo.com.cn

Report of Share Issuance and Cash

Payment to Acquire Assets and Raise

Supporting Funds & Connected

Transaction

January 25 2017

http://www.cninfo.com.cn

Announcement of Shenzhen SEG Co.

Ltd. on Transfer of Underlying Assets

for Share Issuance and Cash Payment to

Acquire Assets and Raise Funds &

Connected Transactions

March 4 2017

http://www.cninfo.com.cn

Announcement of Shenzhen SEG Co.

Ltd. on Transfer of Underlying Assets

for Share Issuance and Cash Payment to

Acquire Assets and Raise Funds &

Connected Transactions & Public

Offering of New Shares

Progress of share repurchase

□ Applicable √ Not applicable

Progress of reduction of holding-shares in the form of centralized bidding

□ Applicable √ Not applicable

III. Commitments not fulfilled in the reporting period by the actual controller of the Company shareholders buyers or other related

parties

√ Applicable □ Not applicable

Commitments Subject Type Content

Commitment

date

Commitment

term

Performance

Commitment for share

reform

Not applicable

Commitments in the

Acquisition Report and the

Report of Changes on

Equity

Not applicable

Commitments made at the

time of restructuring of

assets

Shenzhen SEG

Group Co.Ltd.Other

commitment

"After updating and restructuring of SEG Industrial Building SEG

Economy Building and SEG Recreation Industry Building the

area of added part that belongs to SegMaker SEG Recreation and

SEG Property is 2855.20 m2. SEG Group undertakes that the use

of the temporary buildings belonged to SegMaker SEG Recreation

and SEG Property will be renewed after expiration of the two-year

use duration. In case when due to failure in renewal of use of

temporary buildings the listed company has any loss or the income

during the period from expiration of the performance commitment

period to expiration of the evaluated income expected period is

lower than the expected compensation or the listed company has

any loss because the temporary buildings are required to be

dismantled by governmental organs during the period from

expiration of the performance commitment period to expiration of

the evaluated income expected period SEG Group will

compensate the listed company timely and in full amount

August 3

2016

April 20

2024

Extended

performance

(The Company

has applied for

extension of the

license for the

said property and

submitted

application

materials to the

relevant

competent

authority for

approval. SEG

Group is assisting

with such

according to the following compensation methods:

1. SEG Group has made commitments for the performance of the

subject company within three years after completion of major asset

restructuring. Influence of the updating and restructuring project

has been taken into account in the commitments.

2. The amount of compensation for the income that is lower than

the expected income during the period from expiration of the

performance commitment period to expiration of the evaluated

income expected period = (the predicted accumulated income to

the end of the report period - actual accumulated income to the end

of the report period) - the compensated amount.

3. The loss caused when the temporary buildings are required to be

dismantled by governmental organs during the period from

expiration of the performance commitment period to expiration of

the evaluated income expected period = the dismantling cost and

compensation amount related - (the accumulated total income to

the time the buildings are dismantled- predicted accumulated

income during the predication period). Note: the predicted income

refers to the net value remained after the predicted total income

from the newly added temporary buildings in the evaluation reports

of the subject companies minuses the allocated investment cost

during the operating period and the amount influenced by

permanent rent termination predicted in the evaluation report.Shenzhen SEG should employ an audit agency with security

practice qualification recognized by SEG Group to provide a

formal audit report on the compensation methods for the property

investment within the compensation scope of the report period

within four months at the end of each accounting year during the

compensation period. SEG Group should compensate in cash any

property investment and compensation items within the

extension

application. The

renewal

application is still

under approval

and the license

for renewal is not

obtained yet.)

compensation scope of the report period. Shenzhen SEG should

calculate the payable compensation amount within 15 working

days upon final specific review opinions provided by the audit

agency and send a written notice to SEG Group. Within 30

working days upon receipt of the written notice from Shenzhen

SEG SEG Group should pay the compensation in cash in full

amount."

Commitment made at the

time of initial public

offerings or refinancing

Not applicable

Commitment on equity

incentives

Not applicable

Other commitments made

to the medium and small

shareholders of the

Company

Not applicable

Whether commitments were

fulfilled on time

For commitments

unfulfilled in the

commitment period specify

the reasons for

non-fulfillment and further

plans

The Company has applied for extension of the license for the said property and submitted application materials to the relevant competent authority for

approval. SEG Group is assisting with such extension application. The renewal application is still under approval and the license for renewal is not obtained

yet.IV. Estimation of operating results of January-June 2019

Warning of negative estimated accumulated net profit from the beginning of the year to the end of the next reporting period or large fluctuation over the same period of the previous year and

causes

□ Applicable √ Not applicable

V. Securities investment

√ Applicable □ Not applicable

Unit: Yuan

Stock type

Stock

code

Short form of

the security

Initial

investment

cost

Accounting

measurement

mode

Opening book

value

Profit

or loss

from

change

s in fair

value in

the

current

period

Accumulativ

e changes in

fair value

counted into

equity

Amount

purchas

e in the

current

period

Amount of

sales in the

current

period

Profit or loss

in the

reporting

period

Closing book

value

Accounting item

Source of

capital

Domestic

and overseas

600778

Youhao

Group

90405.00

Measuremen

t of fair

value

274287.16 47787.86 0.00 0.00 0.00 322075.02

Available-for-sal

e financial assets

Self-owne

d capital

Domestic

and overseas

000068

Huakong

SEG

173687994.4

Measuremen

t of cost

method

139130451.0

-184.27

-7455408.8

-4608463.3

127066394.6

Long term equity

investment

Self-owne

d capital

Domestic

and overseas

832770

SEG

Navigations

8275321.43

Measuremen

t of cost

method

13515392.83 0.00 0.00 0.00 13515392.83

Available-for-sal

e financial assets

Self-owne

d capital

Other securities investment held at

the end of the period

Total

182053720.8

152920131.0

0.00 47603.59 0.00

-7455408.8

-4608463.3

140903862.4

VI. Derivative investment

□ Applicable √ Not applicable

No derivative investment is involved in the reporting period.VII. Registration form for investigations communication and interviews in the reporting

period

√ Applicable □ Not applicable

Time Means Type Investigation Index

January 7 2019 Phone call Individual Inquire about recent operations of the Company.January 28 2019 Phone call Individual

Inquire about whether the controlling shareholder of the

Company SEG Group has pledged stocks of the Company.

January 29 2019 Phone call Individual

Inquire about whether the Company will release the

performance forecast for 2018.

February 1 2019 Phone call Individual

Inquire about lawsuits involving the holding sub-subsidiary SEG

New Urban and suspension of some bank accounts.

February 27 2019 Phone call Organization

Inquire about the progress of suspension of some bank accounts

of the holding sub-subsidiary SEG New Urban and whether the

reason is known.March 4 2019 Phone call Individual Inquire about the latest number of shareholders of the Company.March 11 2019 Phone call Individual Consult the latest register of shareholders of the Company.March 12 2019 Phone call Individual Inquire about equity transfer of Shenzhen-Shantou Longyan.March 21 2019 Phone call Individual Inquire about the latest number of shareholders of the Company.March 29 2019 Phone call Individual Inquire about recent operations of the Company.VIII. Illegal external guarantee

□ Applicable √ Not applicable

No illegal external guarantee is involved in the reporting period.IX. Non-operating capital occupation on the listed company by the controlling shareholders

and related parties

□ Applicable √ Not applicable

No non-operating capital occupation on the listed company by the controlling shareholders and related parties is involved in the

reporting period.

Full text of Q1 2019

Report of Shenzhen SEG Co. Ltd.

Chapter 4 Financial Statements

I. Financial Statements

1. Consolidated Balance Sheet Statement

Prepared by: Shenzhen SEG Co. Ltd.March 31 2019

Unit: Yuan

Item March 31 2019 December 31 2018

Current assets:

Monetary funds 1230137703.98 1757492816.67

Deposit reservation for balance

Loans to other banks

Trading financial assets

Financial assets measured by fair

value with changes included in current

gains and losses

Derivative financial assets

Notes receivable and accounts

receivable

74163820.86 54426228.11

Including: Notes receivable

Accounts receivable 74163820.86 54426228.11

Advances 1542058.75 2701718.53

Premiums receivable

Reinsurance accounts receivable

Reinsurance deposit receivable

Other accounts receivable 139939762.92 115570683.93

Including: Interest receivable 1063684.93 1063684.93

Dividends receivable 2000000.00 2000000.00

Redemptory monetary capital for

resale

Inventory 2620086306.94 2670294017.74

Contract assets

Held-for-sale assets

Full text of Q1 2019

Report of Shenzhen SEG Co. Ltd.Non-current assets due within one

year

Other current assets 532771414.44 468083201.09

Total current assets 4598641067.89 5068568666.07

Non-current assets:

Loans and advances issued

Debt investment

Financial assets available for sale 34069679.99

Other debt investment

Held-to-maturity investment

Long-term receivables 19000000.00 19000000.00

Long-term equity investment 159455526.58 172684147.74

Other equity instrument investment 34135217.63

Other non-current financial assets

Investment properties 1398792580.02 1412916851.46

Fixed assets 56170824.11 59351351.90

Construction in progress 161470294.54 151214015.76

Productive biological assets

Oil & gas assets

Right-of-use assets

Intangible assets 31224808.45 32471556.32

Development expenses

Goodwill 0.00 0.00

Long-term expenses to be amortized 67658319.56 73769436.90

Deferred income tax assets 55185914.76 56931280.75

Other non-current assets 47032751.31 47032751.31

Total non-current assets 2030126236.96 2059441072.13

Total assets 6628767304.85 7128009738.20

Current liabilities:

Short-term borrowing 460000000.00 520000000.00

Loans from central bank

Loans from other banks

Trading financial liabilities

Financial liabilities measured by fair

value with changes included in current

Full text of Q1 2019

Report of Shenzhen SEG Co. Ltd.gains and losses

Derivative financial liabilities

Notes payable and accounts payable 290397686.55 293130435.56

Advances from customers 609813302.36 692811462.75

Financial assets sold for repurchase

Deposits from customers and

interbank

Acting trading securities

Acting underwriting securities

Payroll payable 30080168.48 44065725.59

Taxes payable 171476588.03 121045597.93

Other payables 588676374.70 1021673905.77

Including: Interest payable 3284767.84 4943712.80

Dividends payable 4196371.01 4196371.01

Service charges and commissions

payable

Reinsurance accounts payable

Contract liabilities

Held-for-sale liabilities

Non-current liabilities due within one

year

258569415.58 272569415.58

Other current liabilities

Total current liabilities 2409013535.70 2965296543.18

Non-current liabilities:

Insurance deposit

Long-term borrowing 710000000.00 748250000.00

Bonds payable 798516471.59 787752107.90

Including: Preferred stock

Perpetual capital securities

Lease liabilities

Long-term payables

Long-term payroll payable

Estimated liabilities 90254503.10 90254503.10

Deferred income 6257529.58 6732529.57

Deferred income tax liabilities 84629817.27 79875150.30

Full text of Q1 2019

Report of Shenzhen SEG Co. Ltd.Other non-current liabilities

Total non-current liabilities 1689658321.54 1712864290.87

Total liabilities 4098671857.24 4678160834.05

Owners' equity:

Share capital 1235656249.00 1235656249.00

Other equity instruments

Including: Preferred stock

Perpetual capital securities

Capital reserve 148933205.15 156892820.25

Less: Treasury shares

Other comprehensive income 147322.80 91765.66

Special reserve

Surplus reserve 152762534.98 152762534.98

General risk provision

Undistributed profits 382575139.48 322477846.55

Total owners' equity attributable to the

parent company

1920074451.41 1867881216.44

Minority shareholders' equity 610020996.20 581967687.71

Total owners' equity 2530095447.61 2449848904.15

Total liabilities and owners' equity 6628767304.85 7128009738.20

Legal representative: Chen Huijie Person in charge of accounting: Yan Dongxia Responsible person of the accounting

institution: Yan Dongxia

2. Balance Sheet Statement of the Parent Company

Unit: Yuan

Item March 31 2019 December 31 2018

Current assets:

Monetary funds 614617390.40 971108422.35

Trading financial assets

Financial assets measured by fair value

with changes included in current gains and

losses

Derivative financial assets

Notes receivable and accounts

receivable

127360.00 217360.00

Full text of Q1 2019

Report of Shenzhen SEG Co. Ltd.Including: Notes receivable

Accounts receivable 127360.00 217360.00

Advances 256415.82

Other accounts receivable 1183543911.60 1098488672.67

Including: Interest receivable 0.00

Dividends receivable 2000000.00 2000000.00

Inventory

Contract assets

Held-for-sale assets

Non-current assets due within one year

Other current assets 4087189.77 4172729.68

Total current assets 1802632267.59 2073987184.70

Non-current assets:

Debt investment

Financial assets available for sale 33515392.83

Other debt investment

Held-to-maturity investment

Long-term receivables 9000000.00 9000000.00

Long-term equity investment 1312118572.24 1326039288.79

Other equity instrument investment 33515392.83

Other non-current financial assets

Investment properties 250212749.91 252842527.62

Fixed assets 17463525.28 17786925.84

Construction in progress 356437.64

Productive biological assets

Oil & gas assets

Right-of-use assets

Intangible assets 1548532.03 1671913.78

Development expenses

Goodwill

Long-term expenses to be amortized 8774276.34 9404881.96

Deferred income tax assets 1633980.97 1673932.41

Other non-current assets 39560.00

Total non-current assets 1634623467.24 1651974423.23

Full text of Q1 2019

Report of Shenzhen SEG Co. Ltd.Total assets 3437255734.83 3725961607.93

Current liabilities:

Short-term borrowing 460000000.00 520000000.00

Trading financial liabilities

Financial liabilities measured by fair

value with changes included in current gains

and losses

Derivative financial liabilities

Notes payable and accounts payable 206374.11 206374.11

Advances from customers 17728535.49 22491215.88

Contract liabilities

Payroll payable 4068340.24 5143700.56

Taxes payable 14536082.17 4471684.00

Other payables 176644527.94 439491749.59

Including: Interest payable 1578179.07 1578179.07

Dividends payable

Held-for-sale liabilities

Non-current liabilities due within one

year

Other current liabilities

Total current liabilities 673183859.95 991804724.14

Non-current liabilities:

Long-term borrowing

Bonds payable 799068579.49 787752107.90

Including: Preferred stock

Perpetual capital securities

Lease liabilities

Long-term payables

Long-term payroll payable

Estimated liabilities

Deferred income 6112104.54 6592529.57

Deferred income tax liabilities

Other non-current liabilities

Total non-current liabilities 805180684.03 794344637.47

Total liabilities 1478364543.98 1786149361.61

Full text of Q1 2019

Report of Shenzhen SEG Co. Ltd.Owners' equity:

Share capital 1235656249.00 1235656249.00

Other equity instruments

Including: Preferred stock

Perpetual capital securities

Capital reserve 223456332.26 231415947.36

Less: Treasury shares

Other comprehensive income -132.81 -55.90

Special reserve

Surplus reserve 152762534.98 152762534.98

Undistributed profits 347016207.42 319977570.88

Total owners' equity 1958891190.85 1939812246.32

Total liabilities and owners' equity 3437255734.83 3725961607.93

3. Consolidated Profit Statement

Unit: Yuan

Item Amount incurred in the current period Amount incurred in the previous period

I. Total operating revenue 376087480.56 396384852.50

Including: Operating revenue 376087480.56 391140155.46

Interest income 5020857.08

Earned premiums

Service charges and

commissions income

223839.96

II. Total operating cost 329289265.35 334036630.74

Including: Operating cost 241791059.45 267621500.55

Interest expenses

Service charges and

commissions expenses

Surrender value

Net compensation pay-outs

Net insurance deposit accrued

Insurance dividends

Reinsurance expenses

Operating tax and surcharges 31785231.34 10239902.06

Full text of Q1 2019

Report of Shenzhen SEG Co. Ltd.Sale expenses 5180963.20 7610500.75

Management expenses 27336991.45 29612040.70

R&D expenses

Financial expenses 23195019.91 15524536.56

Including: Interest expenses 23580249.71

Interest income -2423553.92

Loss from asset impairment 3428150.12

Loss from credit impairment

Add: Other income

Income from investment (enter "-"

for loss)

52122030.89 43590161.83

Including: Income from

investment in joint ventures or associates

-7720418.78 -5476059.45

Income from exchange (enter "-"

for loss)

Net exposure hedge return (enter

"-" for loss)

Income from change of fair value

(enter "-" for loss)

Income from asset disposal (enter

"-" for loss)

III. Operating profit (enter "-" for loss) 98920246.10 105938383.59

Add: Non-operating revenue 1059075.24 1567854.35

Less: Non-operating expenses 234536.70 4264049.51

IV. Total profit (enter "-" for total loss) 99744784.64 103242188.43

Less: Income tax 29451629.62 29410259.23

V. Net profit (enter "-" for net loss) 70293155.02 73831929.20

(I) Classified by continuity of

operations

1. Net profit from continuing

operations (enter "-" for net loss)

70293155.02 73831929.20

2. Net profit from discontinuing

operations (enter "-" for net loss)

(II) Classified by ownership

1. Net profit attributable to the owner

of the parent company

60097292.93 62622931.80

Full text of Q1 2019

Report of Shenzhen SEG Co. Ltd.

2. Profit and loss of minority

shareholders

10195862.09 11208997.40

VI. Net of tax of other comprehensive

incomes

47603.59 -46016.42

Total owners' net of tax of other

comprehensive incomes attributable to the

parent company

47603.59 -30654.12

(I) Other comprehensive incomes not to

be reclassified into gains and losses

1. Changes of the re-measured

defined benefit plans

2. Other comprehensive

incomes not to be reclassified into gains and

losses under the equity method

3. Changes in fair value of other

equity instruments investment

4. Changes in fair value of the

enterprise's own credit risk

5. Others

(II) Other comprehensive incomes to be

reclassified into gains and losses

47603.59 -30654.12

1. Other comprehensive

incomes to be reclassified into gains and

losses under the equity method

47603.59 -49.05

2. Changes in fair value of other

debt investments

3. Gains and losses from

changes of fair value of the

available-for-sale financial assets

-30506.07

4. Amount of financial assets

reclassified into other comprehensive

income

5. Held-to-maturity investments

categorized as gains and losses from the

available-for-sale financial assets

6. Provision for impairment of

other debt investment credit

7. Cash flow hedge reserve

8. Foreign currency translation

Full text of Q1 2019

Report of Shenzhen SEG Co. Ltd.differences

9. Others

Net of tax of other comprehensive income

attributable to minority shareholders

-15362.30

VII. Total comprehensive income 70340758.61 73785912.78

Total comprehensive income

attributable to shareholders of the parent

company

60128925.82 62592277.68

Total comprehensive income

attributable to minority shareholders

10211832.79 11193635.10

VIII. Earnings per share

1. Basic earnings per share 0.0486 0.0507

2. Diluted earnings per share 0.0486 0.0507

In case of merger of enterprises under common control in the current period the net profit of the merged party recognized before

merger is RMB 0.00 and the net profit of the merged party in the previous period is RMB 0.00.Legal representative: Chen Huijie Person in charge of accounting: Yan Dongxia Responsible person of the accounting

institution: Yan Dongxia

4. Profit Statement of the Parent Company

Unit: Yuan

Item Amount incurred in the current period Amount incurred in the previous period

I. Operating revenue 20516104.34 19007580.23

Less: Operating cost 9266866.74 10624151.64

Tax and surcharges 1038804.70 1075625.92

Sale expenses 252056.61

Management expenses 6319012.27 3949591.80

R&D expenses

Financial expenses 14744143.83 5261030.51

Including: Interest expenses 16284676.62

Interest income -3376552.77

Loss from asset impairment

Loss from credit impairment

Add: Other income

Income from investment (enter "-"

for loss)

48706678.30 46361937.23

Including: Income from -6465030.50 -4250907.89

Full text of Q1 2019

Report of Shenzhen SEG Co. Ltd.investment in joint ventures or associates

Net exposure hedge income (enter

"-" for loss)

Income from change of fair value

(enter "-" for loss)

Income from asset disposal (enter

"-" for loss)

II. Operating profit (enter "-" for loss) 37601898.49 44459117.59

Add: Non-operating revenue 488166.99 561600.03

Less: Non-operating expenses 41873.20 13788.00

III. Total profit (enter "-" for total loss) 38048192.28 45006929.62

Less: Income tax 11009555.74 11366905.21

IV. Net profit (enter "-" for net loss) 27038636.54 33640024.41

(I) Net profit from continuing

operations (enter "-" for net loss)

27038636.54 33640024.41

(II) Net profit from discontinuing

operations (enter "-" for net loss)

V. Net of tax of other comprehensive

incomes

-184.27 -49.05

(I) Other comprehensive incomes not

to be reclassified into gains and losses

1. Changes of the re-measured

defined benefit plans

2. Other comprehensive

incomes not to be reclassified into gains and

losses under the equity method

3. Changes in fair value of other

equity instruments investment

4. Changes in fair value of the

enterprise's own credit risk

5. Others

(II) Other comprehensive incomes to be

reclassified into gains and losses

-184.27 -49.05

1. Other comprehensive

incomes to be reclassified into gains and

losses under the equity method

-184.27 -49.05

2. Changes in fair value of other

debt investments

Full text of Q1 2019

Report of Shenzhen SEG Co. Ltd.

3. Gains and losses from

changes of fair value of the

available-for-sale financial assets

4. Amount of financial assets

reclassified into other comprehensive

income

5. Held-to-maturity investments

categorized as gains and losses from the

available-for-sale financial assets

6. Provision for impairment of

other debt investment credit

7. Cash flow hedge reserve

8. Foreign currency translation

differences

9. Others

VI. Total comprehensive income 27038452.27 33639975.36

VII. Earnings per share

1. Basic earnings per share

2. Diluted earnings per share

5. Consolidated Cash Flow Statement

Unit: Yuan

Item Amount incurred in the current period Amount incurred in the previous period

I. Cash flow from operating activities:

Cash received from sales of goods and

rendering of services

288094199.99 386113295.26

Net increase in deposits from

customers and interbank

Loans from central bank

Net increase in loans from other banks

Cash received from premium of the

original insurance contract

Net cash received from reinsurance

business

Net increase in the deposit of the

insured and investments

Full text of Q1 2019

Report of Shenzhen SEG Co. Ltd.Net increase in financial assets

measured by fair value with changes

included in current gains and losses

Cash received from interest handling

charges and commissions

371052.26 4661395.77

Net increase in loans from other banks

Net increase in redemption capital

Net cash received from acting trading

securities

Tax refunds

Other cash received from operating

activities

85403184.28 162307155.67

Subtotal of cash inflow from operating

activities

373868436.53 553081846.70

Cash paid for goods and service 104282449.76 244997988.68

Net increase in loans to customers and

advances

-16784988.00

Net increase in deposits with central

bank and interbank

Cash paid for indemnity payment of the

original insurance contract

Net increase in financial assets held for

trading purposes

Net increase in lending funds

Cash paid for interest handling charges

and commissions

15359.20

Cash paid as insurance dividends

Cash paid to and on behalf of

employees

74373921.08 78163795.83

Taxes paid 37114103.27 70845921.44

(1) Other cash received from operating

activities

168220603.93 177009103.88

Subtotal of cash outflow in operating

activities

383991078.04 554247181.03

Net cash flow from operating activities -10122641.51 -1165334.33

III. Cash flow from financing activities:

Cash received from disposal of

investments

355042739.73 359690000.00

Full text of Q1 2019

Report of Shenzhen SEG Co. Ltd.

Cash received from returns on

investments

58464069.12 52184734.09

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

-3394971.91

Other cash received from financing

activities

79263.84

Subtotal of cash inflow from financing

activities

413506808.85 408559026.02

Cash paid for purchase and

construction of fixed assets intangible

assets and other long-term assets

4150185.67 32963785.60

Cash paid for investment 793128340.34 350880000.00

Net increase in mortgage loans

Net cash paid for acquisition of

subsidiaries and other business units

Other cash paid for investment

activities

78250.87

Subtotal of cash outflow in financing

activities

797278526.01 383922036.47

Net cash flow arising from financing

activities

-383771717.16 24636989.55

III. Cash flow from financing activities:

Cash received from absorbing

investment

980000.00

Including: Cash received by

subsidiaries from investment of minority

shareholders

Borrowings received 250000000.00 152000000.00

Cash received from bond issue

Other cash received from financing

activities

15000000.00

Subtotal of cash inflow from financing

activities

250000000.00 167980000.00

Cash paid for debt repayment 375632579.00 281320347.76

Cash paid for dividend and profit 8805931.09 12986315.44

Full text of Q1 2019

Report of Shenzhen SEG Co. Ltd.distribution or interest payment

Including: Dividends and profit paid by

subsidiaries to minority shareholders

Other cash paid for financing activities 4238250.00

Subtotal of cash outflow in financing

activities

384438510.09 298544913.20

Net cash flow arising from financing

activities

-134438510.09 -130564913.20

IV. Influence of exchange rate fluctuation on

cash and cash equivalents

V. Net increase of cash and cash equivalents -528332868.76 -107093257.98

Add: Opening balance of cash and cash

equivalents

1758470572.74 951482605.92

VI. Closing balance of cash and cash

equivalents

1230137703.98 844389347.94

6. Cash Flow Statement of the Parent Company

Unit: Yuan

Item Amount incurred in the current period Amount incurred in the previous period

I. Cash flow from operating activities:

Cash received from sales of goods and

rendering of services

14920675.13 16362940.86

Tax refunds

Other cash received from operating

activities

133005791.11 102294007.13

Subtotal of cash inflow from operating

activities

147926466.24 118656947.99

Cash paid for goods and service 7910812.48 13935879.77

Cash paid to and on behalf of

employees

8210460.43 9029567.41

Taxes paid 1218697.98 2240849.30

Other cash received from operating

activities

173302675.36 125336391.41

Subtotal of cash outflow in operating

activities

190642646.25 150542687.89

Net cash flow from operating activities -42716180.01 -31885739.90

Full text of Q1 2019

Report of Shenzhen SEG Co. Ltd.II. Cash flow from financing activities:

Cash received from disposal of

investments

40000000.00 180000000.00

Cash received from returns on

investments

54667639.02 51024186.69

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 from financing

activities

Subtotal of cash inflow from financing

activities

94667639.02 231024186.69

Cash paid for purchase and

construction of fixed assets intangible

assets and other long-term assets

114000.00

Cash paid for investment 260000000.00 105000000.00

Net cash paid for acquisition of

subsidiaries and other business units

Other cash paid for investment

activities

Subtotal of cash outflow in financing

activities

260000000.00 105114000.00

Net cash flow arising from investment

activities

-165332360.98 125910186.69

III. Cash flow from financing activities:

Cash received by absorbing investment

Borrowings received 250000000.00 152000000.00

Cash received from bond issue

Other cash received from financing

activities

17546666.67 1963333.34

Subtotal of cash inflow from financing

activities

267546666.67 153963333.34

Cash paid for debt repayment 310000000.00 200000000.00

Cash paid for dividend and profit

distribution or interest payment

6256774.15 6088791.66

Other cash paid for financing activities 100000000.00 4000000.00

Full text of Q1 2019

Report of Shenzhen SEG Co. Ltd.Subtotal of cash outflow in financing

activities

416256774.15 210088791.66

Net cash flow arising from financing

activities

-148710107.48 -56125458.32

IV. Influence of exchange rate fluctuation

on cash and cash equivalents

V. Net increase of cash and cash equivalents -356758648.47 37898988.47

Add: Opening balance of cash and cash

equivalents

971376038.87 104463125.70

VI. Closing balance of cash and cash

equivalents

614617390.40 142362114.17

II. Adjustments to Financial Statements

1. Adjustments in first implementation of new standards for financial instruments new standards for

income and new standards for lease and first implementation of financial statements at the beginning of

the year

√ Applicable □ Not applicable

Consolidated Balance Sheet Statement

Unit: Yuan

Item December 31 2018 January 1 2019

Amount of

adjustment

Current assets:

Monetary funds 1757492816.67 1757492816.67

Deposit reservation for balance

Loans to other banks

Trading financial assets Not applicable

Financial assets measured by

fair value with changes included in

current gains and losses

Not applicable

Derivative financial assets

Notes receivable and accounts

receivable

54426228.11 54426228.11

Including: Notes receivable

Accounts receivable 54426228.11 54426228.11

Advances 2701718.53 2701718.53

Premiums receivable

Full text of Q1 2019

Report of Shenzhen SEG Co. Ltd.Reinsurance accounts

receivable

Reinsurance deposit receivable

Other accounts receivable 115570683.93 115570683.93

Including: Interest receivable 1063684.93 1063684.93

Dividends receivable 2000000.00 2000000.00

Redemptory monetary capital

for resale

Inventory 2670294017.74 2670294017.74

Contract assets Not applicable

Held-for-sale assets

Non-current assets due within

one year

Other current assets 468083201.09 468083201.09

Total current assets 5068568666.07 5068568666.07

Non-current assets:

Loans and advances issued

Debt investment Not applicable

Financial assets available for

sale

34069679.99 Not applicable -34069679.99

Other debt investment Not applicable

Held-to-maturity investment Not applicable

Long-term receivables 19000000.00 19000000.00

Long-term equity investment 172684147.74 172684147.74

Other equity instrument

investment

Not applicable 34069679.99 34069679.99

Other non-current financial

assets

Not applicable

Investment properties 1412916851.46 1412916851.46

Fixed assets 59351351.90 59351351.90

Construction in progress 151214015.76 151214015.76

Productive biological assets

Oil & gas assets

Right-of-use assets Not applicable

Intangible assets 32471556.32 32471556.32

Development expenses

Full text of Q1 2019

Report of Shenzhen SEG Co. Ltd.Goodwill

Long-term expenses to be

amortized

73769436.90 73769436.90

Deferred income tax assets 56931280.75 56931280.75

Other non-current assets 47032751.31 47032751.31

Total non-current assets 2059441072.13 2059441072.13

Total assets 7128009738.20 7128009738.20

Current liabilities:

Short-term borrowing 520000000.00 520000000.00

Loans from central bank

Loans from other banks

Trading financial liabilities Not applicable

Financial liabilities measured

by fair value with changes included

in current gains and losses

Not applicable

Derivative financial liabilities

Notes payable and accounts

payable

293130435.56 293130435.56

Advances from customers 692811462.75 692811462.75

Financial assets sold for

repurchase

Deposits from customers and

interbank

Acting trading securities

Acting underwriting securities

Payroll payable 44065725.59 44065725.59

Taxes payable 121045597.93 121045597.93

Other payables 1021673905.77 1021673905.77

Including: Interest payable 4943712.80 4943712.80

Dividends payable 4196371.01 4196371.01

Service charges and

commissions payable

Reinsurance accounts payable

Contract liabilities Not applicable

Held-for-sale liabilities

Non-current liabilities due 272569415.58 272569415.58

Full text of Q1 2019

Report of Shenzhen SEG Co. Ltd.within one year

Other current liabilities

Total current liabilities 2965296543.18 2965296543.18

Non-current liabilities:

Insurance deposit

Long-term borrowing 748250000.00 748250000.00

Bonds payable 787752107.90 787752107.90

Including: Preferred stock

Perpetual capital securities

Lease liabilities Not applicable

Long-term payables

Estimated liabilities 90254503.10 90254503.10

Deferred income 6732529.57 6732529.57

Deferred income tax liabilities 79875150.30 79875150.30

Other non-current liabilities

Total non-current liabilities 1712864290.87 1712864290.87

Total liabilities 4678160834.05 4678160834.05

Owners' equity:

Share capital 1235656249.00 1235656249.00

Other equity instruments

Including: Preferred stock

Perpetual capital securities

Capital reserve 156892820.25 156892820.25

Less: Treasury shares

Other comprehensive income 91765.66 91765.66

Surplus reserve 152762534.98 152762534.98

General risk provision

Undistributed profits 322477846.55 322477846.55

Total owners' equity attributable to

the parent company

1867881216.44 1867881216.44

Minority shareholders' equity 581967687.71 581967687.71

Total owners' equity 2449848904.15 2449848904.15

Total liabilities and owners' equity 7128009738.20 7128009738.20

Notes to adjustments

In 2017 the ministry of finance issued the revised "accounting standards for enterprises no. 22 - recognition and measurement of

Full text of Q1 2019

Report of Shenzhen SEG Co. Ltd.financial instruments" "the accounting standards for enterprises no. 23 - transfer of financial assets" "the accounting standards for

enterprises no. 24 - hedging accounting" and "accounting standards for enterprises no. 37 - presentation of financial instruments

(generally referred to as the" new financial instruments standards ") and new financial instruments accounting standards shall enter

into force as of January 1 2019 for domestic listed companies. According to the new financial instrument standards the company

will hold the equity investment designated as fair value measurement and its changes into other comprehensive income of

non-trading equity instrument investment financial statements to other equity instrument investment.

Balance Sheet Statement of the Parent Company

Unit: Yuan

Item December 31 2018 January 1 2019

Amount of

adjustment

Current assets:

Monetary funds 971108422.35 971108422.35

Trading financial assets Not applicable

Financial assets measured by

fair value with changes included in

current gains and losses

Not applicable

Derivative financial assets

Notes receivable and accounts

receivable

217360.00 217360.00

Including: Notes receivable

Accounts receivable 217360.00 217360.00

Advances

Other accounts receivable 1098488672.67 1098488672.67

Including: Interest receivable

Dividends receivable 2000000.00 2000000.00

Inventory

Contract assets Not applicable

Held-for-sale assets

Non-current assets due within

one year

Other current assets 4172729.68 4172729.68

Total current assets 2073987184.70 2073987184.70

Non-current assets:

Debt investment Not applicable

Financial assets available for

sale

33515392.83 Not applicable -33515392.83

Other debt investment Not applicable

Full text of Q1 2019

Report of Shenzhen SEG Co. Ltd.Held-to-maturity investment Not applicable

Long-term receivables 9000000.00 9000000.00

Long-term equity investment 1326039288.79 1326039288.79

Other equity instrument

investment

Not applicable 33515392.83 33515392.83

Other non-current financial

assets

Not applicable

Investment properties 252842527.62 252842527.62

Fixed assets 17786925.84 17786925.84

Construction in progress

Productive biological assets

Oil & gas assets

Right-of-use assets Not applicable

Intangible assets 1671913.78 1671913.78

Development expenses

Goodwill

Long-term expenses to be

amortized

9404881.96 9404881.96

Deferred income tax assets 1673932.41 1673932.41

Other non-current assets 39560.00 39560.00

Total non-current assets 1651974423.23 1651974423.23

Total assets 3725961607.93 3725961607.93

Current liabilities:

Short-term borrowing 520000000.00 520000000.00

Trading financial liabilities Not applicable

Financial liabilities measured

by fair value with changes included

in current gains and losses

Not applicable

Derivative financial liabilities

Notes payable and accounts

payable

206374.11 206374.11

Advances from customers 22491215.88 22491215.88

Contract liabilities Not applicable

Payroll payable 5143700.56 5143700.56

Taxes payable 4471684.00 4471684.00

Other payables 439491749.59 439491749.59

Full text of Q1 2019

Report of Shenzhen SEG Co. Ltd.Including: Interest payable 1578179.07 1578179.07

Dividends payable

Held-for-sale liabilities

Non-current liabilities due

within one year

Other current liabilities

Total current liabilities 991804724.14 991804724.14

Non-current liabilities:

Long-term borrowing

Bonds payable 787752107.90 787752107.90

Including: Preferred stock

Perpetual capital securities

Lease liabilities Not applicable

Long-term payables

Estimated liabilities

Deferred income 6592529.57 6592529.57

Deferred income tax liabilities

Other non-current liabilities

Total non-current liabilities 794344637.47 794344637.47

Total liabilities 1786149361.61 1786149361.61

Owners' equity:

Share capital 1235656249.00 1235656249.00

Other equity instruments

Including: Preferred stock

Perpetual capital securities

Capital reserve 231415947.36 231415947.36

Less: Treasury shares

Other comprehensive income -55.90 -55.90

Surplus reserve 152762534.98 152762534.98

Undistributed profits 319977570.88 319977570.88

Total owners' equity 1939812246.32 1939812246.32

Total liabilities and owners' equity 3725961607.93 3725961607.93

Notes to adjustments

In 2017 the ministry of finance issued the revised "accounting standards for enterprises no. 22 - recognition and measurement of

financial instruments" "the accounting standards for enterprises no. 23 - transfer of financial assets" "the accounting standards for

Full text of Q1 2019

Report of Shenzhen SEG Co. Ltd.enterprises no. 24 - hedging accounting" and "accounting standards for enterprises no. 37 - presentation of financial instruments

(generally referred to as the" new financial instruments standards ") and new financial instruments accounting standards shall enter

into force as of January 1 2019 for domestic listed companies. According to the new financial instrument standards the company

will hold the equity investment designated as fair value measurement and its changes into other comprehensive income of

non-trading equity instrument investment financial statements to other equity instrument investment.

2. Retroactive adjustments of comparative date of previous periods in first implementation of new

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