Shenzhen SEG Co. Ltd. Q3 2018 Report October 2018 Chapter 1 Important Notice The Board of Directors the Board of Supervisors directors supervisors and senior executives of the Company undertake that the quarterly report is authentic accurate and complete without false records misleading statements or major omissions and bear joint and several legal liabilities. All directors have attended this meeting of the Board of Directors where the quarterly report was deliberated. Chairman of the Board of Directors Chen Huijie the Person in charge of accounting Liu Zhijun and the responsible person of the accounting institution (accountant in charge) Ying Huadong hereby declare that the financial statements enclosed in this quarterly report are authentic accurate and complete. Definitions Definition Refers to Description This Company the Company the listed company Shen SEG Refers to Shenzhen SEG Co. Ltd. SEG Group Refers to Shenzhen SEG Group Co. Ltd. Longgang SEG Refers to Shenzhen SEG Electronics Market Management Co. Ltd.Suzhou SEG Refers to Suzhou SEG Electronics Market Management Co. Ltd.Suzhou SEG Digital Refers to Suzhou SEG Digital Plaza Management Co. Ltd.Nanjing SEG Refers to Shenzhen SEG Nanjing Electronics Market Management Co.Ltd.Xi'an SEG Refers to Xi'an SEG Electronics Market Co. Ltd.Xi'an Hairong SEG Refers to Xi'an Hairong SEG Electronics Market Co. Ltd. Changsha SEG Refers to Changsha SEG Development Co. Ltd. Wujiang SEG Refers to Wujiang SEG Market Management Co. Ltd.Shunde SEG Refers to Shunde SEG Electronics Market Management Co. Ltd.Nanning SEG Refers to Nanning SEG Digital Plaza Management Co. Ltd.Shanghai SEG Refers to Shanghai SEG Electronics Market Co. Ltd. SEG Baohua Refers to Shenzhen SEG Baohua Enterprise Development Co. Ltd. SEG Industrial Refers to Shenzhen SEG Industrial Investment Co. Ltd. SEG Credit Refers to Shenzhen SEG Credit Co. Ltd. Nantong SEG Refers to Nantong SEG Times Plaza Management Co. Ltd.Nantong SEG Operation Refers to Nantong SEG Commercial Operation Management Co. Ltd. SEG Intelligent Refers to Suzhou SEG Intelligent Technology Co. Ltd. SEG Longyan Refers to Shenzhen SEG Longyan Energy Technology Co. Ltd. Hangzhou SEG Longyan Refers to Hangzhou SEG Longyan Energy Technology Co. Ltd. SEG Lianzhong Refers to Shenzhen SEG Lianzhong Internet Technology Co. Ltd. SEG Zhongtong Refers to Shenzhen SEG Zhongtong Technology Co. Ltd. SEG Real Estate Refers to Shenzhen SEG Real Estate Investment Co. Ltd. SEG Property Development Refers to Shenzhen SEG Property Development Co. Ltd. SEG Recreation Refers to Shenzhen SEG Recreation Enterprise Development Co. Ltd. SegMaker Refers to Shenzhen SegMaker Co. Ltd. SEG Property Management Refers to Shenzhen SEG Property Management Co. Ltd. SEG New Urban Refers to Shenzhen SEG New Urban Construction Development Co. Ltd. SEG Yicheng Refers to Shenzhen SEG Yicheng Science and Technology Co. Ltd. Target companies Refers to SEG Real Estate SEG Property Development SEG Recreation and SegMaker that major assets are injected into Huizhou Stars Refers to Huizhou Stars Real Estate Development Co. Ltd. SEG Wisdom Refers to SEG Wisdom Sports and Culture Development Co. Ltd. Definition Refers to Description Mellow Orange Hotel Refers to Shenzhen Mellow Orange Business Hotel Management Co. Ltd Maker Hotel Refers to SEG Maker Hotel Management Co. Ltd.Huakong SEG Refers to Shenzhen Huakong SEG Co. Ltd. SEG Navigations Refers to Shenzhen SEG GPS Scientific Navigations Co. Ltd. Advanced Solar Refers to Advanced Solar Power (Hangzhou) Inc. Wangyu Technology Refers to Shanghai Wangyu Information Technology Co. Ltd.Shenzhen SASAC Refers to State-owned Assets Supervision and Administration Commission of Shenzhen Municipality CSRC Refers to China Securities Regulatory Commission Shenzhen Securities Regulatory Bureau Refers to Shenzhen Securities Regulatory Bureau of China Securities Regulatory Commission Articles of Association Refers to Articles of Association of Shenzhen SEG Co. Ltd. Unless otherwise specified the amount referred to in the report Refers to Amount in RMB Chapter 2 Company Profile I. Major Accounting Data and Financial Indexes Are retrospective adjustments required to previous financial statements? □ Yes √ No Closing amount Year-end amount Year-on-year increase/decrease Total assets (Yuan) 6219276361.52 6992590420.75 -11.06% Net assets attributable to shareholders of the listed company (Yuan) 1978103216.94 1917228370.15 3.18% Current reporting period Year-on-year increase/decrease From the beginning of the year to the end of the reporting period Year-on-year increase/decrease Operating revenue (Yuan) 561704545.25 112.14% 1444642633.92 68.55% Net profit attributable to shareholders of the listed company (Yuan) 40399673.95 110.59% 138066661.89 99.54% Net profit attributable to shareholders of the listed company after deduction of non-recurring profit or loss (Yuan) 35513724.94 81.48% 88370597.84 66.86% Net cash flow arising from operating activities (Yuan) -- -- 88413669.12 -68.44% Basic EPS (Yuan/Share) 0.0327 110.97% 0.1117 99.46% Diluted EPS (Yuan/Share) 0.0327 110.97% 0.1117 99.46% Weighted average ROE 2.07% 1.00% 7.09% 3.78% Total share capital of the Company as of the trading day before disclosure: Total share capital of the Company as of the trading day before disclosure (share) 1235656249 Fully diluted earnings per share based on the latest share capital (Yuan/share) 0.1117 Items and amount of non-recurring profit or loss: √ Applicable □ Not applicable Unit: Yuan Item Amount Remarks Profit or loss on disposal of non-current assets (including the write-off of assets depreciation reserves) 57715563.13 Gains on reduction of holding-shares of Huakong SEG and transfer of the equity of SEG Credit Tax return reduction or exemption with unauthorized approval or without any official approval document 0.00 Government subsidies recognized in current profit or loss (except those closely related to corporate business and enjoyed according to national standards or certain quota) 3503363.71 Fund appropriation charges for non-financial entities recognized in current profit or loss 1049720.00 Gains on less acquisition costs of subsidiaries associates and joint ventures than the accrued fair value of the investee's identifiable net assets 0.00 Profit or loss on non-monetary assets exchange 0.00 Profit or loss on investment or asset management in proxy 18959696.02 Provision for impairment of assets due to force majeure (such as natural disasters) 0.00 Profit or loss on debt restructuring 0.00 Corporate restructuring costs such as staffing expenses and integration costs 0.00 Profit or loss on the part exceeding the fair value in unfair transactions 0.00 Current net profit or loss of subsidiaries incurred by business combination under common control from the beginning of the reporting period to the 0.00 Item Amount Remarks date of merger Profit or loss on contingencies unrelated to business operation of the Company 0.00 Profit or loss on changes in fair value due to holding of trading financial assets and trading financial liabilities and investment income from disposal of trading financial assets trading financial liabilities and available-for-sale financial assets apart from valid hedging operations related to business operation of the Company 0.00 Transferred-back impairment provision for accounts receivable for which separate impairment tests are carried out 0.00 Profit or loss on consignment loan 0.00 Profit or loss on changes in fair value of investment property subsequently measured by the fair value 0.00 Impact of one-time adjustment on the current profit or loss as required by taxation or accounting laws and regulations 0.00 Trustee fee from entrusted operation 104499.02 Other non-operating income and expenses except the above-mentioned items -13453613.88 Estimated liabilities of Nanning SEG arising from lawsuits and payment of the liquidated damages and poverty alleviation funds by SEG Real Estate.Other items conforming to the definition of non-recurring profit and loss 0.00 16969807.00 Less: Amount of affected income tax 1213356.95 Amount of influence of minority shareholders' equity (after tax) 49696064.05 Total 57715563.13 -- 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 In the reporting period no items of non-recurring profit and loss listed in the Explanatory Announcement on Information Disclosure by Companies Offering Securities to the Public No. 1 — Non-recurring Profit and Loss are defined as items 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 67654 Total number of preferred shareholders restored with the voting rights (if any) 0 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 shares Share status Quantity Shenzhen SEG Group Co. Ltd.State-owned legal person 56.70% 700628759 450857239 Liu Guocheng Domestic natural person 0.57% 7052702 0 Shanghai Juzhang Investment Management Co.Ltd. Domestic general corporate 0.40% 4967841 0 Liu Guohong Domestic natural person 0.26% 3213598 0 Gong Qianhua Overseas natural person 0.24% 2940000 0 China Securities Finance Domestic general corporate 0.18% 2271900 0 Corporation Limited Xu Yueying Domestic natural person 0.14% 1790007 0 China Hi-tech Group Corporation State-owned legal person 0.12% 1500000 0 Zeng Ying Domestic natural person 0.11% 1300000 0 Du Xinye Domestic natural person 0.10% 1223000 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 Liu Guocheng 7052702 Domestically listed foreign shares 7052702 Shanghai Juzhang Investment Management Co. Ltd. 4967841 RMB ordinary shares 4967841 Liu Guohong 3213598 Domestically listed foreign shares 3213598 Gong Qianhua 2940000 Domestically listed foreign shares 2940000 China Securities Finance Corporation Limited 2271900 RMB ordinary shares 2271900 Xu Yueying 1790007 Domestically listed foreign shares 1790007 China Hi-tech Group Corporation 1500000 RMB ordinary shares 1500000 Zeng Ying 1300000 Domestically listed foreign shares 1300000 Du Xinye 1223000 RMB ordinary shares 1223000 Explanations on the association relationship or concerted action among the above-mentioned shareholders 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 in 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) In the foregoing top 10 shareholders Du Xinye holds 0 share of the Company in the ordinary account and 1223000 shares in the margin trading investor credit account which are 1223000 shares of the Company in total. Did top 10 ordinary shareholders of the Company or top 10 ordinary shareholders of non-restricted shares conduct agreed repurchase transactions in the reporting period? □ Yes √ No 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) Balance Sheet Statement Item Closing balance Opening balance Difference Increase or decrease over the previous year (%) Notes receivable and accounts receivable 94960623.30 61934101.56 33026521.74 53.33% Loans and advances 399387108.14 -399387108.14 -100.00% Investment property 1045353312.48 676888184.90 368465127.58 54.44% Other non-current assets 128250017.29 93287630.00 34962387.29 37.48% Short-term borrowing 727000000.00 534792000.00 192208000.00 35.94% Notes payable and accounts payable 262902343.74 470088158.63 -207185814.89 -44.07% Advance receipts 417172922.34 707031729.23 -289858806.89 -41.00% Payroll payable 25837106.38 41014602.99 -15177496.61 -37.01% Tax payable 167199380.13 243477530.43 -76278150.30 -31.33% Non-current liabilities due within one year 64276762.54 258414693.92 -194137931.38 -75.13% Estimated liabilities 8296619.85 1137019.85 7159600.00 629.68% 1. Notes receivable and accounts receivable increased by RMB 33.03 million or 53.33% year on year mainly because SEG Property Management confirmed property management income worth RMB 36.97 million. 2. Loans and advances decreased by 100% year on year mainly because this item was loans and advances of SEG Credit and was no longer incorporated as the equity of SEG Credit was sold. 3. Investment property increased by RMB 368.47 million or 54.44% year on year mainly because the commercial podium built by Nantong SEG worth RMB 410.76 million was transferred to investment property for accounting. 4. Other non-current assets increased by RMB 34.96 million or 37.48% year on year mainly because SEG Longyan paid for equipment in advance. 5. Short-term borrowings increased by RMB 192.21 million or 35.94% year on year mainly because bank loans increased in the reporting period. 6. Notes payable and accounts payable decreased by RMB 207.19 million or 44.07% year on year mainly because SEG New Urban paid the project fund in the reporting period. 7. Advance receipts decreased by RMB 289.86 million or 41% year on year mainly because SEG New Urban transferred the advance payment for houses to operating income in the reporting period. 8. Payroll payable decreased by RMB 15.18 million or 37.01% year on year mainly because the wages and bonuses accrued in the previous year were granted in the reporting period. . Tax payable decreased by RMB 76.28 million or 31.33% year on year mainly because the corporate income tax for 2017 was paid in the reporting period. 10. Non-current liabilities due within one year decreased by RMB 194.14 million or 75.13% year on year mainly because SEG Real Estate repaid loans due within one year. 11. Estimated liabilities increased by RMB 7.16 million or 629.68% year on year mainly because Nanning SEG paid compensation arising from lawsuits in the reporting period.(II) Profit Statement Item Amount of the current period Amount of the previous period Difference Increase or decrease over the previous year (%) Operating income 1444642633.92 857121747.39 587520886.53 68.55% Interest income 6480864.92 42344251.52 -35863386.60 -84.69% Service charges and commissions income 888016.65 -888016.65 -100.00% Operating costs 994429779.15 618357775.28 376072003.87 60.82% Tax and surcharge 42196977.10 14043362.00 28153615.10 200.48% Financial expenses 52818041.75 16196131.68 36621910.07 226.12% Investment income 59390854.81 4144939.36 55245915.45 1332.85% Non-operating income 4942048.24 11513024.15 -6570975.91 -57.07% Non-operating expenses 14951136.75 1583510.27 13367626.48 844.18% Income tax expenses 93011306.00 52159868.66 40851437.34 78.32% Net profit attributable to owners of the parent company 138066661.89 69193064.76 68873597.13 99.54% Minority interest 61153347.93 19074811.94 42078535.99 220.60% Other comprehensive income -56797.37 -158032.32 101234.95 64.06% 1. Operating income increased by RMB 587.52 million or 68.55% year on year mainly because the income of SEG New Urban increased by RMB 592.80 million. 2. Interest income decreased by RMB 35.86 million or 84.69% mainly because the loan business of SEG Credit declined that because the equity transfer of SEG Credit was completed in April 2018 and the service consulting business will not incurred. 3. Service charges and commissions income decreased by RMB 8.88 million or 100% year on year mainly because the equity transfer of SEG Credit was completed in April 2018 and the service consulting business will not incurred. 4. Operating costs increased by RMB 376.0 million or 60.82% year on year mainly because the costs of SEG New Urban increased by RMB 392.10 million. 5. Tax and surcharge increased by RMB 28.15 million or 200.48% year on year mainly because increase in the income of SEG New Urban resulted in increase in tax expenses. 6. Financial expenses increased by RMB 36.62 million or 226.12% year on year mainly because in the reporting period (1) the real estate project of SEG New Urban was completed and capitalization of borrowing interests; (2) increase in loans resulted in increase in interest expenses. . Investment income increased by RMB 55.25 million or 1332.85% year on year mainly due to investment income from sales of the shares of Huakong SEG. 8. Non-operating income decreased by RMB 6.57 million or 57.07% year on year mainly because the compensation for shareholders of Suzhou SEG RMB 3.50 million and government subsidies for Nantong SEG RMB 2.30 million were incurred in the same period last year while such income was not incurred in the reporting period. 9. Non-operating expenses increased by RMB 13.37 million or 844.18% year on year mainly because in the reporting period (1) SEG Real Estate paid for contract termination (2017 Y. 0307 M. C. No. 6835); (2) Nanning SEG paid compensation arising from lawsuits. 10. Income tax expenses increased by RMB 40.85 million or 78.32% year on year mainly because in the reporting period (1) the Company gained the investment income of RMB 45.70 million from the sales of the shares of Huakong SEG; (2) the income of SEG New Urban increased. 11. Net profit attributable to owners of the parent company increased by RMB 68.87 million or 99.54% year on year mainly because in the reporting period (1) the Company gained the investment income of RMB 45.70 million from the sales of the shares of Huakong SEG; (2) the income of SEG New Urban increased. 12. Minority interest increased by RMB 42.08 million or 220.60% year on year mainly because SEG ECO project of SEG Real Estate reached the income recognition criteria and the sales proceeds received in advance are transferred to income resulting in increase in net profit. 13. Other comprehensive income increased by RMB 101.23 thousand or 64.06% year on year mainly because the value of shares of Youhao Group held by SEG Baohua a holding subsidiary of the Company in the reporting period declined less than in the same period last year.(III) Cash Flow Statement Item Amount of the current period Amount of the previous period Difference Increase or decrease over the previous year (%) Cash received from interest fees and commissions 6311198.08 47251322.15 -40940124.07 -86.64% Tax refunds 246846.66 749351.94 -502505.28 -67.06% Net increase in customer loans and advances -15664988.00 -29325104.19 13660116.19 46.58% Cash received from investment income 64918960.93 12926977.20 51991983.73 402.20% Cash paid for purchase and construction of fixed assets intangible assets and other long-term assets 66254262.96 122826868.88 -56572605.92 -46.06% Cash received by absorbing investments 980000.00 151637998.48 -150657998.48 -99.35% Cash received from borrowing 979000000.00 650000000.00 329000000.00 50.62% Cash paid for debt repayment 924664813.71 681901725.48 242763088.23 35.60% Dividends and profits paid by subsidiaries to minority shareholders 26262417.89 47286452.85 -21024034.96 -44.46% 1. Cash received from interest fees and commissions decreased by RMB 40.94 million or 86.64% year on year mainly because the equity transfer of SEG Credit was completed in April 2018 and the cash flow statement of SEG Credit was no longer consolidated since May 2018. 2. Tax refunds decreased by RMB 502.5 thousand or 67.06% year on year mainly because Suzhou SEG received tax refunds of RMB 599.7 thousand in the same period last year. After adjustment of the operation model in 2017 the cash flow statement of Suzhou SEG was no longer consolidated in 2018. 3. Net increase in customer loans and advances increased by RMB 13.66 million or 46.58% year on year mainly due to decrease in the size of loans granted by SEG Credit in the reporting period. The equity transfer of SEG Credit was completed in April 2018 and the cash flow statement of SEG Credit was no longer consolidated since May 2018. 4. Cash received from investment income increased by RMB 51.99 million or 402.20% year on year mainly because the Company received cash by sales of the shares of Huakong SEG in the reporting period. 5. Cash paid for purchase and construction of fixed assets intangible assets and other long-term assets decreased by RMB 56.57 million or 46.06% year on year mainly because SEG Longyan incurred RMB 95.32 million for its new industrial park. 6. Cash received by absorbing investments decreased by RMB 150.66 million or 99.35% year on year mainly because SEG Longyan and SEG Lianzhong received investments from minority shareholders in the same period last year. 7. Cash received from borrowing increased by RMB 329 million or 50.62% year on year mainly due to increase in bank loans received by the Company in the reporting period. 8. Cash paid for debt repayment increased by RMB 242.76 million or 35.60% year on year mainly due to increase in bank loans due for repayment of the Company in the reporting period. 9. Dividends and profits paid by subsidiaries to minority shareholders decreased by RMB 21.02 million or 44.46% year on year mainly because the dividends and profits paid by SEG Credit and Suzhou SEG corresponding period of last year which amount is 14.97 million is not occurred in the reporting period. II. Progress and impacts of major events and analysis of solutions √ Applicable □ Not applicable There are no other major events than major events in the following table.Overview of Major Events Disclosure Date Inquiry Index for the Websites Disclosing the Temporary Reports 1. On April 9 2018 the Company its holding subsidiaries and SEG Group entered into the Equity Transfer Agreement concerning the transfer of 62% of the equity of SEG Credit to SEG Group at the price of RMB 126699000. On April 18 2018 SEG Credit completed business registration alteration for equity transfer where the shareholder is changed to SEG Group and SEG Credit is changed from a holding subsidiary of the Company to a wholly-owned subsidiary directly held by SEG Group. As the short-term financing certificates of SEG Credit subscribed by the Company were not due yet at the time of equity transfer the current account balance August 31 2018 http://www.cninfo.com.cn 2018 Semi-annual Report of Shenzhen SEG Co. Ltd. RMB 185000000 arising from such short-term financing certificates constituted indirect related-party current account with the wholly-owned subsidiary of the controlling shareholder. As of August 20 2018 such balance and income have been recovered in advance. 2. Nanning Haiqi Real Estate Development Co. Ltd. vs. Nanning SEG Electronics Market Co. Ltd. & Shenzhen SEG Co. Ltd.for the dispute over the house lease contract (case number: 2016 G. 0102 M. C. No. 3653): According to the second-instance judgment Nanning SEG shall pay to Nanning Haiqi the liquidated damages of RMB 8 million and the attorney fee of RMB 263000 and shall pay the case acceptance fee of RMB 134238. The Company applied for retrial. On July 11 2018 the Higher People's Court of Guangxi accepted the case.September 26 2016 http://www.cninfo.com.cn Announcement of Shenzhen SEG Co. Ltd. on the Receipt of Court Summons and civil Complaints by the Company August 31 2018 http://www.cninfo.com.cn 2018 Semi-annual Report of Shenzhen SEG Co. Ltd. 3. SEG Industrial vs. Shenzhen Wonder Industry Co. Ltd. Liu Guiyun & Liu Yu for the dispute over the purchase and sales contract (case number: (2017) Y. 0304 M. C. No. 5092): The amount involved was RMB 8394100. The first-instance judgment of the case has taken effect. The claims filed by SEG Industrial have basically been supported. Only the overdue fine has not been fully supported and SEG Industrial has applied for enforcement to the court.September 20 2018 http://www.cninfo.com.cn Announcement of Shenzhen SEG Co. Ltd. on the Progress of Litigation of Holding Subsidiaries 4. SEG Industrial vs. Shenzhen Yixin Zhongtian Technology Co. Ltd. Zhe Shaojun & Zhao Xiaoyan for the dispute over the purchase and sales contract (case number: (2017) Y. 0304 M. C. No. 5088): The amount involved was RMB 14805700.The first-instance judgment of the case has taken effect. The claims filed by SEG Industrial have basically been supported.Only the overdue fine has not been fully September 20 2018 http://www.cninfo.com.cn Announcement of Shenzhen SEG Co. Ltd. on the Progress of Litigation of Holding Subsidiaries supported. 5. SEG Industrial vs. Shenzhen Comnet Technology Co. Ltd. Xiao Qingshan Zhou Ronghua Anhua Meishan Small Loan Co.Ltd. & Shenzhen Baiyide Technology Co.Ltd. for the dispute over the purchase and sales contract (case number: (2017) Y. 0304 M. C. No. 7976): The amount involved was RMB 5155400. According to the first-instance judgment SEG Industrial was the prevailing party. The counterparty arrested the first-instance judgment and instituted an appeal. The case is under the second instance trial.September 20 2018 http://www.cninfo.com.cn Announcement of Shenzhen SEG Co. Ltd. on the Progress of Litigation of Holding Subsidiaries 6. SEG Industrial vs. Shenzhen Runneng Digital Technology Co. Ltd. Xiao Qingshan Zhou Ronghua Anhua Meishan Small Loan Co. Ltd. & Shenzhen Baiyide Technology Co. Ltd. for the dispute over the purchase and sales contract (case number: (2017) Y. 0304 M. C. No. 7977): The amount involved was RMB 15345000. According to the first-instance judgment SEG Industrial was the prevailing party. The counterparty arrested the first-instance judgment and instituted an appeal. The case is under the second instance trial.September 20 2018 http://www.cninfo.com.cn Announcement of Shenzhen SEG Co. Ltd. on the Progress of Litigation of Holding Subsidiaries 7. In the reporting period Shenzhen Norbida Environmental Protection Co. Ltd.sued against Shenzhen SEG Property Development Co. Ltd. for the dispute over the cooperation contract (case number: (2018) S. Z. S. Zi. No. 987): The amount involved was RMB 3989700. The case is under trial. August 31 2018 http://www.cninfo.com.cn 2018 Semi-annual Report of Shenzhen SEG Co. Ltd. 8. In the reporting period Shenzhen SEG New Urban Construction Development Co.Ltd. sued against MINMAXS City Investment Management Co. Ltd. and Belugaplan Culture Development (Dalian) Co. Ltd. respectively for disputes over lease contracts. The amount involved was August 31 2018 http://www.cninfo.com.cn 2018 Semi-annual Report of Shenzhen SEG Co. Ltd. RMB 8541500. Both cases are under trial. 9. In the reporting period Nantong SEG Commercial Operation Management Co. Ltd. was involved in 15 cases (including four additional cases) because the merchants delayed the payment of rents and management expenses to Nantong SEG Operation resulting in disputes over lease contracts. The amount involved was RMB 7416700. 14 cases have been settled and Nantong SEG Operation was the prevailing party. One case is under the second instance trial. August 31 2018 http://www.cninfo.com.cn 2018 Semi-annual Report of Shenzhen SEG Co. Ltd. 10. In the reporting period Nantong SEG was involved in 16 cases (including 11 additional cases and Nantong SEG was the defendant in two cases) for disputes over decoration contracts. The amount involved was RMB 34156300. August 31 2018 http://www.cninfo.com.cn 2018 Semi-annual Report of Shenzhen SEG Co. Ltd. 11. : Huizhou Stars a holding subsidiary of SEG Real Estate (a holding subsidiary of the Company) intends to mortgage its self-owned property: 50 commercial properties in 1-5F of SEG Holiday Plaza to apply for a loan with the general credit limit of RMB 150000000 to the bank for repayment of borrowing from its shareholders. August 28 2018 http://www.cninfo.com.cn/ Announcement of Shenzhen SEG Co. Ltd. on the Resolution of the 38th Extraordinary Meeting of the 7th Board of Directors 12. Huizhou Stars a holding subsidiary of SEG Real Estate (a holding subsidiary of the Company) acquired the state-owned land use right of the land parcel (No. GP2018-7) located in Huizhou Guangdong transferred by Huizhou Land Resources Bureau by listing and bidding at the price of RMB 133000000. August 29 2018 http://www.cninfo.com.cn/ Announcement of Shenzhen SEG Co. Ltd. on the Acquisition of the Land Use Right by Huizhou Stars Real Estate Development Co. Ltd. . & : Through negotiation between the Company and intermediaries such as brokers and legal consultants hired for the issuance of corporate bonds the Company adjusted the content of the "purchaser" clause in the corporate bond public offering program as follows: 1) Before adjustment: The corporate bonds are issued to no more than 200 qualified investors that comply with the Regulations on the Administration of Issuance and Transaction of Corporate Bonds (the directors supervisors senior executives and shareholders of the issuer that hold more than 5% of the shares of the Company can subscribe and transfer corporate bonds issued by the Company which are not subject to the qualifications of qualified investors). 2) After adjustment: The corporate bonds are issued to qualified investors that comply with the Regulations on the Administration of Issuance and Transaction of Corporate Bonds and other laws and regulations through public offering.The Board of Directors and authorized personnel of the Board of Directors are granted with full power to handle public offering of corporate bonds to qualified investors.September 22 2018 http://www.cninfo.com.cn/ Announcement of Shenzhen SEG Co. Ltd. on the Resolution of the 40th Extraordinary Meeting of the 7th Board of Directors October 11 2018 http://www.cninfo.com.cn/ Announcement of Shenzhen SEG Co. Ltd. on the Resolution of the 4th Extraordinary General Meeting in 2018 of Shenzhen SEG Co. Ltd. 14. : Based on the situation of the bond market in order to lower the general costs of bond September 22 2018 Announcement of Shenzhen SEG Co. Ltd. on Mortgage and Counter Guarantee for the Issuance of Corporate Bonds issuance and ensure successful issuance the Company intends to hire the third-party credit enhancement institution Guangdong Utrust Financial Leasing Co. Ltd. (Utrust) to enhance credit for its bond issuance. On a fair and rational basis the parties agree that the guarantee fee is collected at the rate of 0.6% of the total bonds issued through negotiation. As required by the guarantor the Company intends to mortgage its commercial property located in Huaqiangbei Futian District Shenzhen to Utrust for counter guarantee. The general meeting of the Company authorized the chairman or an authorized proxy of the chairman of the Company to sign the above counter guarantee contract as required.October 11 2018 http://www.cninfo.com.cn/ Announcement of Shenzhen SEG Co. Ltd. on the Resolution of the 4th Extraordinary General Meeting in 2018 of Shenzhen SEG Co. Ltd. 15. Resignation of the director Zhang Guangliu and election of Gao Jianbo as a director July 19 2018 Announcement of Shenzhen SEG Co. Ltd. on the Resignation of Directors August 29 2018 http://www.cninfo.com.cn/ Announcement of Shenzhen SEG Co. Ltd. on the Resolution of the 39th Extraordinary Meeting of the 7th Board of Directors September 14 2018 http://www.cninfo.com.cn/ Announcement of Shenzhen SEG Co. Ltd. on the Resolution of the 3rd Extraordinary General Meeting in 2018 of Shenzhen SEG Co. Ltd. 16. Application for the general loan limit of RMB 500 million to three banks July 21 2018 http://www.cninfo.com.cn/ Announcement of Shenzhen SEG Co. Ltd. on the Resolution of the 36th Extraordinary Meeting of the 7th Board of Directors 17. Reduction of holding-shares of Shenzhen Huakong SEG Co. Ltd. which is not implemented yet in the reporting period August 23 2018 http://www.cninfo.com.cn Announcement of Shenzhen SEG Co. Ltd. on the Progress of Reduction of Holding-shares of Shenzhen Huakong SEG Co. Ltd. 18. Nantong SEG Times Plaza Co. Ltd.'s guarantee and joint and several liability for bank mortgage loans of customers who have purchased the developed project September 22 2018 Announcement of Shenzhen SEG Co. Ltd. on Nantong SEG Times Plaza Co. Ltd.'s Phased Guarantee for Bank Mortgage Loans of Customers who Have Purchased the Developed Project October 11 2018 http://www.cninfo.com.cn/ Announcement of Shenzhen SEG Co. Ltd. on the Resolution of the 4th Extraordinary General Meeting in 2018 of Shenzhen SEG Co. Ltd. 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 Commitment made in the acquisition report or the equity change report Not applicable Commitments made during major assets restructuring 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 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 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 extension application. The renewal application is still under approval and the 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 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." license for renewal is not obtained yet.) Commitment made at the time of initial public offerings or refinancing Not applicable Commitment on equity incentives Not applicable Other commitments made to small and medium-sized shareholders of the Company Not applicable Commitments fulfilled as scheduled or not No If commitments are not fulfilled as scheduled specify the reasons and further work plans The new property in the reconstruction project of SEG Industrial Building and other two buildings is a temporary building. According to the license the service duration of the temporary building is from April 21 2016 to April 20 2018. Upon expiration the licensed service duration can be extended for a period of one year. 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 2018 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 last year and causes □ Applicable √Not applicable V. Securities investment √ Applicable □ √Not applicable Stock type Stock code Short form of the security Initial investment cost Accounting measurement mode Opening book value Profit or loss from changes in fair value in the current period Accumulative changes in fair value counted into equity Amount of purchase 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 shares 600778 Youhao Group 90405.00 Measurement by fair value 365918.49 -77674.24 288244.25 Available-for-sale financial assets Self-owned capital Domestic and overseas shares 000068 Huakong SEG 183372210.43 Measurement by fair value 171297598.43 42.83 -9538391.50 -9694393.72 152064856.04 Other assets Self-owned capital Domestic and overseas shares 832770 SEG Navigations 8275321.43 Measurement with the cost method 13515392.83 0.00 0.00 0.00 13515392.83 Available-for-sale financial assets Self-owned capital Other securities investments held at the end of the period -- -- -- Total 191737936.86 -- 185178909.75 -77631.41 0.00 -9538391.50 -9694393.72 165868493.12 -- -- Disclosure date of the announcement on approval of securities investments by the Board of Directors Disclosure date of the announcement on approval of securities investments by the General Meeting (if any) VI. Financial management by agent √ Applicable □ √Not applicable Unit: RMB 10000 Type Source of capital Amount incurred Outstanding balance Amount overdue unrecovered Financial products of banks Self-owned capital 62600 18100 0 Total 62600 18100 0 Details of financial management by agent with single significant amount or low security poor liquidity or no capital preservation √Applicable □ Not applicable Unit: ten thousand yuan Name of trustee Type of trust ee Prod uct type Amo unt Fun d sour ce Start date End date Fun d usag e Rem uner ation conf irma tion meth od Refe renc e annu al yield Exp ecte d yield (if any) Actu al loss and gain amo unt in the repo rting peri od Actu al retur n of gain s and losse s in the repo rting peri od Accr ued prov ision s for impa irme nt (if any) Thro ugh legal proc edur es or not Entr uste d fina ncin g plan in the futur e or not Sum mar y and relat ed quer y inde x (if any) Indust rial and Comm ercial Bank of China Bank Non guar ante ed float ing inco me type 300 0 Inter nal fund s Apri l 26 20 18 Apri l 20 2019 High liqui dity asset s & Debt asset s & Othe r asset s & portf olio repa y the capit al and inter est after matu rity 5.00 % 147. 95 0 Pre matu rity YES YES Total 300 0 -- -- -- -- -- -- 147. 95 0 -- -- -- -- -- Financial management by agent of which the principal is expected not to be recovered or other circumstances that may result in impairment □ Applicable √ Not applicable VII. Derivative investment □ Applicable √ Not applicable No derivative investment is involved in the reporting period.VIII. Registration form for investigations communication and interviews in the reporting period √ Applicable □ Not applicable Time Means Type Investigation Index September 17 Phone call Individual Inquire about the number of shareholders as of September 15. The Company has given a reply according to the register of shareholders released by the Securities Depository and Clearing Corporation. September 21 Phone call Individual Inquire about the recent operation of the Company. The Company has given a basic reply and suggests referring to the 2018 Semi-Annual Report disclosed for details.September 21 Phone call Individual Inquire about the recent operation of the Company. The Company has given a basic reply and suggests referring to the 2018 Semi-Annual Report disclosed for details.IX. Illegal external guarantee □ Applicable √ Not applicable No illegal external guarantee is involved in the reporting period.X. 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. Chapter 4 Financial Statements I. Financial Statements 1. Consolidated Balance Sheet Statement Prepared by: Shenzhen SEG Co. Ltd.September 30 2018 Unit: Yuan Item Closing balance Opening balance Current assets: Monetary funds 913728679.25 951482605.92 Deposit reservation for balance Loans to other banks Financial assets measured by fair value with changes included in current gains and losses Derivative financial assets Notes receivable and accounts receivable 94960623.30 61934101.56 Including: Notes receivable Accounts receivable 94960623.30 61934101.56 Prepayment 37914021.76 34718079.54 Premiums receivable Reinsurance accounts receivable Reinsurance deposit receivable Other accounts receivable 94841153.68 96057159.50 Redemptory monetary capital for resale Inventory 2724461471.48 3551100320.71 Held-for-sale assets Non-current assets due within one year Other current assets 634071707.58 565577916.34 Total current assets 4499977657.05 5260870183.57 Non-current assets: Loans and advances issued 399387108.14 Financial assets available for sale 34085457.57 34161311.32 Held-to-maturity investment Long-term receivables Long-term equity investment 184909829.55 211973322.32 Investment property 1045353312.48 676888184.90 Fixed assets 58654732.03 62404988.93 Construction in progress 88083295.64 71745514.32 Productive biological assets Oil & gas assets Intangible assets 31768346.63 31831783.09 Development expenses Goodwill 10328927.82 10328927.82 Long-term expenses to be amortized 109569947.95 109813025.95 Deferred income tax assets 28294837.51 29898440.39 Other non-current assets 128250017.29 93287630.00 Total non-current assets 1719298704.47 1731720237.18 Total assets 6219276361.52 6992590420.75 Current liabilities: Short-term borrowing 727000000.00 534792000.00 Loans from central bank Deposits from customers and interbank Loans from other banks Financial liabilities measured by fair value with changes included in current gains and losses Derivative financial liabilities Notes payable and accounts payable 262902343.74 470088158.63 Advance receipts 417172922.34 707031729.23 Financial assets sold for repurchase Service charges and commissions payable Payroll payable 25837106.38 41014602.99 Taxes payable 167199380.13 243477530.43 Other payables 993666478.86 1297372714.67 Reinsurance accounts payable Insurance deposit Customer brokerage deposits Securities underwriting brokerage deposits Held-for-sale liabilities Non-current liabilities due within one year 64276762.54 258414693.92 Other current liabilities 110798.12 Total current liabilities 2658165792.11 3552191429.87 Non-current liabilities: Long-term borrowing 848000000.00 754750000.00 Bonds payable Preferred stock Perpetual capital securities Long-term payables Long-term payroll payable Estimated liabilities 8296619.85 1137019.85 Deferred income 12169416.33 12336620.96 Deferred income tax liabilities 85261828.43 91251453.07 Other non-current liabilities Total non-current liabilities 953727864.61 859475093.88 Total liabilities 3611893656.72 4411666523.75 Owners' equity: Share capital 1235656249.00 1235656249.00 Other equity instruments Including: Preferred stock Perpetual capital securities Capital reserve 156892820.25 166019870.19 Less: Treasury shares Other comprehensive income 99844.49 137629.12 Special reserve Surplus reserve 138710473.33 138710473.33 General risk provision Undistributed profits 446743829.87 376704148.51 Total equity attributable to owners of the parent company 1978103216.94 1917228370.15 Minority shareholders' equity 629279487.86 663695526.85 Total owners' equity 2607382704.80 2580923897.00 Total liabilities and owners' equity 6219276361.52 6992590420.75 Legal representative: Chen Huijie Person in charge of accounting: Liu Zhijun Responsible person of the accounting institution: Ying Huadong 2. Balance Sheet Statement of the Parent Company Unit: Yuan Item Closing balance Opening balance Current assets: Monetary funds 237393642.83 104463125.70 Financial assets measured by fair value with changes included in current gains and losses Derivative financial assets Notes receivable and accounts receivable 405000.00 1105493.93 Including: Notes receivable Accounts receivable 405000.00 1105493.93 Prepayment 166588.88 46153.86 Other accounts receivable 1118421411.56 1029163364.11 Inventory 395764.94 395764.94 Held-for-sale assets Non-current assets due within one year Other current assets 165563507.05 321967708.13 Total current assets 1522345915.26 1457141610.67 Non-current assets: Financial assets available for sale 33515392.83 33515392.83 Held-to-maturity investment Long-term receivables Long-term equity investment 1337091956.76 1419623352.33 Investment property 255472305.33 263361638.46 Fixed assets 17423276.68 17919657.80 Construction in progress 4852083.01 4175779.03 Productive biological assets Oil & gas assets Intangible assets 1553654.44 1367666.09 Development expenses Goodwill Long-term expenses to be amortized 6065828.77 7673085.72 Deferred income tax assets 9814219.76 8380569.73 Other non-current assets Total non-current assets 1665788717.58 1756017141.99 Total assets 3188134632.84 3213158752.66 Current liabilities: Short-term borrowing 729000000.00 530000000.00 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 Advance receipts 16208588.56 23072035.80 Payroll payable 4151792.65 5391313.71 Taxes payable 11124781.50 18757359.46 Other payables 442952439.22 749265836.65 Held-for-sale liabilities Non-current liabilities due within one year Other current liabilities Total current liabilities 1203643976.04 1326692919.73 Non-current liabilities: Long-term borrowing Bonds payable Preferred stock Perpetual capital securities Long-term payables Long-term payroll payable Estimated liabilities 8296619.85 1137019.85 Deferred income 7077909.37 0.00 Deferred income tax liabilities Other non-current liabilities 0.00 8883045.38 Total non-current liabilities 15374529.22 10020065.23 Total liabilities 1219018505.26 1336712984.96 Owners' equity: Share capital 1235656249.00 1235656249.00 Other equity instruments Preferred stock Perpetual capital securities Capital reserve 231415947.36 240542997.30 Less: Treasury shares Other comprehensive income 144.40 51.46 Special reserve Surplus reserve 138710473.33 138710473.33 Undistributed profits 363333313.49 261535996.61 Total owners' equity 1969116127.58 1876445767.70 Total liabilities and owners' equity 3188134632.84 3213158752.66 3. Consolidated Profit Statement in the Reporting Period Unit: Yuan Item Amount incurred in the current period Amount incurred in the previous period I. Total operating revenue 561704545.25 275268163.32 Including: Operating revenue 561704545.25 264775121.17 Interest income 0.00 10237004.43 Earned premiums 0.00 0.00 Service charges and commissions income 0.00 256037.72 II. Total operating cost 461817703.47 245313012.12 Including: Operating cost 385280407.90 191696254.24 Interest expenses -457500.00 Commissions Surrender value Net compensation pay-outs Net insurance deposit accrued Insurance dividends Reinsurance expenses Operating tax and surcharge 18760506.17 3464139.55 Sale expenses 9863748.78 11030202.70 Management expenses 30304372.95 28650475.44 R&D expenses 0.00 0.00 Financial expenses 17608667.67 6198248.25 Including: Interest cost 56338849.11 0.00 Interest income -4428143.40 0.00 Loss from asset impairment 0.00 4731191.94 Add: Other income Income from investment (enter "-" for loss) 693535.91 3736010.87 Including: Income from investment in joint ventures or associates -4808467.81 404799.96 Income from changes in the fair value (enter "-" for loss) Exchange gain (enter "-" for loss) Gain on asset disposal (enter "-" for loss) III. Operating profit (enter "-" for loss) 100580377.69 33691162.07 Add: Non-operating revenue 2428758.29 4286065.82 Less: Non-operating expenses 1797197.37 1033612.57 IV. Total profit (enter "-" for total loss) 101211938.61 36943615.32 Less: Income tax 32529740.36 13377441.66 V. Net profit (enter "-" for net loss) 68682198.25 23566173.66 1. Income from continuing operations (enter "-" for net loss) 205277474.20 0.00 2. Income from discontinued operations (enter "-" for net loss) -6057464.41 0.00 Net profit attributable to owners of the parent company 40399673.95 19184279.34 Minority interest 28282524.30 4381894.32 VI. Net of tax of other comprehensive income -1702.10 2688.08 Total net of tax of other comprehensive income attributable to owners of the parent company -20106.43 1775.47 1. Other comprehensive income not to be reclassified into gains and losses (1) Changes in net liabilities or net assets of the re-measured defined benefit plans (2) Other comprehensive income not to be reclassified into gains and losses under the equity method 2. Other comprehensive income to be reclassified into gains and losses -20106.43 1775.47 (1) Shares of the investee of other comprehensive income to be reclassified into gains and losses under the equity method 25.45 -42.65 (2) Gains and losses from changes in the fair value of the available-for-sale financial assets -20131.88 1818.12 (3) Held-to-maturity investments categorized as gains and losses from the available-for-sale financial assets 0.00 0.00 (4) Effective gains or loss from cash flows 0.00 0.00 (5) Foreign currency translation differences 0.00 0.00 (6) Others 0.00 0.00 Net of tax of other comprehensive income attributable to minority shareholders 18404.33 912.61 VII. Total comprehensive income 68680496.15 23568861.74 Total comprehensive income attributable to shareholders of the parent company 40379567.52 19186054.81 Total comprehensive income attributable to minority shareholders 28300928.63 4382806.93 VIII. Earnings per share 1. Basic earnings per share 0.0327 0.0155 2. Diluted earnings per share 0.0327 0.0155 In terms of business combination under common control the net profit of the combined party recognized before combination is RMB 0 in the reporting period and that recognized in the previous period is RMB 0. Legal representative: Chen Huijie Person in charge of accounting: Liu Zhijun Responsible person of the accounting institution: Ying Huadong . Profit Statement of the Parent Company in the Reporting Period Unit: Yuan Item Amount incurred in the current period Amount incurred in the previous period I. Operating revenue 17036869.30 19323775.88 Less: Operating cost 12635598.64 17694583.27 Tax and surcharge 1077632.77 1198616.06 Sale expenses 216482.56 0.00 Management expenses 5658227.51 5445362.30 R&D expenses 0.00 0.00 Financial expenses 6502132.55 5219640.28 Including: Interest cost 23002334.12 0.00 Interest income -8312097.89 0.00 Loss from asset impairment 0.00 0.00 Add: Other income 0.00 0.00 Income from investment (enter "-" for loss) 95833070.48 34039874.19 Including: Income from investment in joint ventures or associates -4808467.81 -1059073.63 Income from changes in the fair value (enter "-" for loss) Gain on asset disposal (enter "-" for loss) II. Operating profit (enter "-" for loss) 86779865.75 23805448.16 Add: Non-operating revenue 1570422.99 3975499.99 Less: Non-operating expenses 1700000.00 0.00 III. Total profit (enter "-" for total loss) 86650288.74 27780948.15 Less: Income tax -1546771.59 920525.97 IV. Net profit (enter "-" for net loss) 88197060.33 26860422.18 1. Income from continuing operations (enter "-" for net loss) 88197060.33 26860422.18 2. Income from discontinued operations (enter "-" for net loss) V. Net of tax of other comprehensive income 118.39 -42.65 1. Other comprehensive income not to be reclassified into gains and losses (1) Changes in net liabilities or net assets of the re-measured defined benefit plans (2) Other comprehensive income not to be reclassified into gains and losses under the equity method 2. Other comprehensive income to be reclassified into gains and losses 118.39 -42.65 (1) Shares of the investee of other comprehensive income to be reclassified into gains and losses under the equity method 118.39 -42.65 (2) Gains and losses from changes in the 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) Foreign currency translation differences (6) Others 0.00 VI. Total comprehensive income 88197178.72 26860379.53 VII. Earnings per share 1. Basic earnings per share 0 0 2. Diluted earnings per share 0 0 5. Consolidated Profit Statement from the Beginning of the Year to the End of the Reporting Period Unit: Yuan Item Amount incurred in the current period Amount incurred in the previous period I. Total operating revenue 1451123498.84 900354015.56 Including: Operating revenue 1444642633.92 857121747.39 Interest income 6480864.92 42344251.52 Earned premiums Service charges and commissions income 888016.65 II. Total operating cost 1208273949.32 774000723.44 Including: Operating cost 994429779.15 618357775.28 Interest expenses Commissions Surrender value Net compensation pay-outs Net insurance deposit accrued Insurance dividends Reinsurance expenses Operating tax and surcharge 42196977.10 14043362.00 Sale expenses 23051951.82 29960498.74 Management expenses 92415176.65 91253807.59 R&D expenses 0.00 0.00 Financial expenses 52818041.75 16196131.68 Including: Interest cost 56338849.11 19592581.90 Interest income -4428143.40 -4138109.78 Loss from asset impairment 3362022.85 4189148.15 Add: Other income Income from investment (enter "-" for loss) 59390854.81 4144939.36 Including: Income from investment in joint ventures or associates -16716197.00 -6581127.80 Income from changes in the fair value (enter "-" for loss) Exchange gain (enter "-" for loss) Gain on asset disposal (enter "-" for loss) III. Operating profit (enter "-" for loss) 302240404.33 130498231.48 Add: Non-operating revenue 4942048.24 11513024.15 Less: Non-operating expenses 14951136.75 1583510.27 IV. Total profit (enter "-" for total loss) 292231315.82 140427745.36 Less: Income tax 93011306.00 52159868.66 V. Net profit (enter "-" for net loss) 199220009.82 88267876.70 1. Income from continuing operations (enter "-" for net loss) 205277474.23 88267876.70 2. Income from discontinued operations (enter "-" for net loss) -6057464.41 Net profit attributable to owners of the parent company 138066661.89 69193064.76 Minority interest 61153347.93 19074811.94 VI. Net of tax of other comprehensive income -56797.37 -158032.32 Total net of tax of other comprehensive income attributable to owners of the parent company -37828.28 -105252.95 1. Other comprehensive income not to be reclassified into gains and losses (1) Changes in net liabilities or net assets of the re-measured defined benefit plans (2) Other comprehensive income not to be reclassified into gains and losses under the equity method 2. Other comprehensive income to be reclassified into gains and losses -37828.28 -105252.95 (1) Shares of the investee of other comprehensive income to be reclassified into gains and losses under the equity method (2) Gains and losses from changes in the fair value of the available-for-sale financial assets -37828.28 -105252.95 (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) Foreign currency translation differences (6) Others Net of tax of other comprehensive income attributable to minority shareholders -18969.09 -52779.37 VII. Total comprehensive income 199163212.45 88109844.38 Total comprehensive income 138028833.61 69087811.81 attributable to shareholders of the parent company Total comprehensive income attributable to minority shareholders 61134378.84 19022032.57 VIII. Earnings per share 1. Basic earnings per share 0.1117 0.0560 2. Diluted earnings per share 0.1117 0.0560 In terms of business combination under common control the net profit of the combined party recognized before combination is RMB 0 in the reporting period and that recognized in the previous period is RMB 0. 6. Profit Statement of the Parent Company from the Beginning of the Year to the End of the Reporting Period Unit: Yuan Item Amount incurred in the current period Amount incurred in the previous period I. Operating revenue 54002637.18 67867136.83 Less: Operating cost 33720284.08 53370069.61 Tax and surcharge 3512934.28 3762158.11 Sale expenses 216482.56 Management expenses 16232297.04 14467955.34 R&D expenses Financial expenses 14837050.62 13397232.97 Including: Interest cost 23002334.12 14197532.76 Interest income -8312097.89 -1006982.75 Loss from asset impairment Add: Other income Income from investment (enter "-" for loss) 204345458.34 88959441.49 Including: Income from investment in joint ventures or associates -13741197.00 -6482084.00 Income from changes in the fair value (enter "-" for loss) Gain on asset disposal (enter "-" for loss) II. Operating profit (enter "-" for loss) 189829046.94 71829162.29 Add: Non-operating revenue 2772317.01 7059365.47 Less: Non-operating expenses 8874462.04 91300.00 III. Total profit (enter "-" for total loss) 183726901.91 78797227.76 Less: Income tax 13902604.49 3564723.70 IV. Net profit (enter "-" for net loss) 169824297.42 75232504.06 1. Income from continuing operations (enter "-" for net loss) 169824297.42 75232504.06 2. Income from discontinued operations (enter "-" for net loss) V. Net of tax of other comprehensive income 92.94 -104.81 1. Other comprehensive income not to be reclassified into gains and losses (1) Changes in net liabilities or net assets of the re-measured defined benefit plans (2) Other comprehensive income not to be reclassified into gains and losses under the equity method 2. Other comprehensive income to be reclassified into gains and losses 92.94 -104.81 (1) Shares of the investee of other comprehensive income to be reclassified into gains and losses under the equity method 92.94 -104.81 (2) Gains and losses from changes in the 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) Foreign currency translation differences (6) Others VI. Total comprehensive income 169824390.36 75232399.25 VII. Earnings per share 1. Basic earnings per share 0 0 2. Diluted earnings per share 0 0 . Consolidated Cash Flow Statement from the Beginning of the Year to the End of the Reporting Period 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 1190798262.16 1314055894.12 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 Net increase in financial assets measured by fair value with changes included in current gains and losses Cash received from interest and commissions 6311198.08 47251322.15 Net increase in loans from other banks Net increase in redemption capital Tax refunds 246846.66 749351.94 Other cash received from operating activities 253127937.32 393011976.89 Subtotal of cash inflow from operating activities 1450484244.22 1755068545.10 Cash paid for goods and service 565344689.47 685380979.09 Net increase in loans to customers and advances -15664988.00 -29325104.19 Net increase in deposits with central bank and interbank Cash paid for indemnity payment of the original insurance contract Cash paid for interest and 76146.53 commissions Cash paid as insurance dividends Cash paid to and on behalf of employees 195861678.08 202653001.58 Taxes paid 264954200.49 249526081.87 (1) Other cash received from operating activities 351574995.06 366594717.62 Subtotal of cash outflow in operating activities 1362070575.10 1474905822.50 Net cash flow from operating activities 88413669.12 280162722.60 III. Cash flow from financing activities: Cash received from withdrawal of investment 1395212511.69 1331000000.00 Cash received from investment income 64918960.93 12926977.20 Net cash received from disposal of fixed assets intangible assets and other long-term assets 1220.00 2320.00 Net cash received from disposal of subsidiaries and other business units 126699000.00 Other cash received from financing activities Subtotal of cash inflow from financing activities 1586831692.62 1343929297.20 Cash paid for purchase and construction of fixed assets intangible assets and other long-term assets 66254262.96 122826868.88 Cash paid for investment 1633847350.55 1477819502.86 Net increase in mortgage loans Net cash paid for acquisition of subsidiaries and other business units Other cash paid for investment activities Subtotal of cash outflow in financing activities 1700101613.51 1600646371.74 Net cash flow arising from financing activities -113269920.89 -256717074.54 III. Cash flow from financing activities: Cash received by absorbing investment 980000.00 151637998.48 Including: Cash received by subsidiaries from investment of minority shareholders 980000.00 151637998.48 Borrowings received 979000000.00 650000000.00 Cash received from bond issuance Other cash received from financing activities 196900800.36 0.00 Subtotal of cash inflow from financing activities 1176880800.36 801637998.48 Cash paid for debt repayment 924664813.71 681901725.48 Cash paid for dividend and profit distribution or interest payment 95444956.60 120771753.52 Including: Dividends and profit paid by subsidiaries to minority shareholders 26262417.89 47286452.85 Other cash paid for financing activities 169669157.90 100468327.16 Subtotal of cash outflow in financing activities 1189778928.21 903141806.16 Net cash flow arising from financing activities -12898127.85 -101503807.68 IV. Influence of exchange rate fluctuation on cash and cash equivalents 452.95 0.00 V. Net increase of cash and cash equivalents -37753926.67 -78058159.62 Add: Opening balance of cash and cash equivalents 951482605.92 1131523641.19 VI. Closing balance of cash and cash equivalents 913728679.25 1053465481.57 8. Cash Flow Statement of the Parent Company from the Beginning of the Year to the End of the Reporting Period 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 51123098.98 68525179.03 Tax refunds Other cash received from operating activities 311283263.32 25708003.30 Subtotal of cash inflow from operating activities 362406362.30 94233182.33 Cash paid for goods and service 27256444.94 56734763.54 Cash paid to and on behalf of employees 19716496.24 27422885.12 Taxes paid 26671624.06 28919662.75 Other cash received from operating activities 185871943.22 101134157.57 Subtotal of cash outflow in operating activities 259516508.46 214211468.98 Net cash flow from operating activities 102889853.84 -119978286.65 II. Cash flow from financing activities: Cash received from withdrawal of investment 525597700.00 719000000.00 Cash received from investment income 218497996.91 83162204.40 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 77654200.00 Other cash received from financing activities Subtotal of cash inflow from financing activities 821749896.91 802162204.40 Cash paid for purchase and construction of fixed assets intangible assets and other long-term assets 114000.00 0.00 Cash paid for investment 693000000.00 818620000.00 Net cash paid for acquisition of subsidiaries and other business units Other cash paid for investment activities Subtotal of cash outflow in financing activities 693114000.00 818620000.00 Net cash flow arising from investment activities 128635896.91 -16457795.60 III. Cash flow from financing activities: Cash received by absorbing investment Borrowings received 729000000.00 500000000.00 Cash received from bond issuance Other cash received from financing activities 46394666.68 316666.67 Subtotal of cash inflow from financing activities 775394666.68 500316666.67 Cash paid for debt repayment 530000000.00 310000000.00 Cash paid for dividend and profit distribution or interest payment 88928233.30 51609410.91 Other cash paid for financing activities 255061667.00 0.00 Subtotal of cash outflow in financing activities 873989900.30 361609410.91 Net cash flow arising from financing activities -98595233.62 138707255.76 IV. Influence of exchange rate fluctuation on cash and cash equivalents V. Net increase of cash and cash equivalents 132930517.13 2271173.51 Add: Opening balance of cash and cash equivalents 104463125.70 90504836.76 VI. Closing balance of cash and cash equivalents 237393642.83 92776010.27 II. Auditor's Report Is the Q3 report audited? □ Yes √ No The Q3 report of the Company has not been audited.