Stock Code: 000058 200058 Stock Name: Shen SEG Shen SEG B Announcement No.:2018-037

Chapter 1 Important Notice

The Board of Directors the Board of Supervisors directors supervisors and senior

executives guarantee that the quarterly report is authentic accurate and complete and that

it has no false records misleading statements or major omissions and they undertake joint

and several legal liabilities.

All of the directors have attended the meeting of the Board of Directors reviewing the

quarterly report.The head of the Company Chen Huijie the Chief Financial Officer Liu Zhijun and the

responsible person of the accounting institution (accountant in charge) Ying Huadong

hereby declare that the Financial Statements enclosed in this quarter report are true

accurate and complete.Chapter 2 Company Profile

I. Major Accounting Data and Financial Indexes

Are retrospective adjustments required 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) 391140155.46 317456442.86 23.21%

Net profit attributable to shareholders of the listed

company (yuan)

62622931.80 31609057.25 98.12%

Net profit attributable to shareholders of the listed

company after deducting non-recurring gains and

losses (yuan)

27128268.89 30418650.93 -10.82%

Net cash flow arising from operating activities

(yuan)

-1165334.33 44232089.23 -102.63%

Basic EPS (yuan/share) 0.0507 0.0256 98.04%

Diluted EPS (yuan/share) 0.0507 0.0256 98.04%

Weighted average ROE 2.40% 1.50% 0.90%

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) 6779563975.31 6992590420.75 -3.05%

Net assets attributable to shareholders of the listed

company (yuan)

1970693597.89 1917228370.15 2.79%

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)

45345874.37 Income from reduction of holdings of Huakong SEG

Government subsidies included in current profit or loss (except

those closely related with corporate business and enjoyed

according to national standards or certain quota)

1373769.29

Support fund for the construction of Nantong SEG and

the subsidy for renovation of the external wall of SEG

Plaza in Huaqiangbei Shenzhen

Profit or loss on investment or asset management in proxy 3368273.42

Other non-operating income and costs -4072364.45

Payment of liquidated damages due to termination of

contract by SEG New Urban

Less: Amount of affected income tax 11503888.16

Amount of affected minority shareholders' equity (after tax) -928998.44

Total 35494662.91

Explanation for defining 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 as items of recurring

profit and loss

□ 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

69900

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

0.56% 6891302 0

Shanghai

Juzhang

Investment

Management

Co. Ltd.

Domestic

non-state-owned

legal person

0.36% 4396241 0

Zhang Jiao

Domestic natural

person

0.33% 4046989 0

Liu Guohong

Domestic natural

person

0.25% 3069939 0

Gong Qianhua

Overseas natural

person

0.24% 2940000 0

China Securities

Finance

Corporation

Limited

Domestic

non-state-owned

legal person

0.18% 2271900 0

Bian Xueping

Domestic natural

person

0.17% 2184100 0

Xu Yueying

Domestic natural

person

0.13% 1552000 0

China Hi-tech

Group

Corporation

State-owned

legal person

0.12% 1500000 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 6891302

Domestically

listed foreign

shares

6891302

Shanghai Juzhang Investment

Management Co. Ltd.

4396241

RMB ordinary

shares

4396241

Zhang Jiao 4046989

RMB ordinary

shares

4046989

Liu Guohong 3069939

Domestically

listed foreign

shares

3069939

Gong Qianhua 2940000

Domestically

listed foreign

shares

2940000

China Securities Finance

Corporation Limited

2271900

RMB ordinary

shares

2271900

Bian Xueping 2184100

RMB ordinary

shares

2184100

Xu Yueying 1552000

Domestically

listed foreign

shares

1552000

China Hi-tech Group Corporation 1500000

RMB ordinary

shares

1500000

Explanations on the association

relationship or concerted action

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

among the above-mentioned

shareholders

in the Management Methods for Disclosure of Information on Changes of

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)

Among the above top 10 shareholders Zhang Jiao holds 0 shares of the Company in

an ordinary account and 4046989 shares in a margin trading investor credit account

totaling 4046989 shares of the Company. Bian Xueping holds 0 share of the

Company in an ordinary account and 2184100 shares in a margin trading investor

credit account totaling 2184100 shares of the Company.

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

agreed repurchase transactions in the reporting period?

□ Yes √ No

The top 10 ordinary shareholders of the Company or top 10 ordinary shareholders of non-restricted shares did not

conduct agreed repurchase transactions in the reporting period.

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

□ Applicable √ Not applicable

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

compared with the

amount of the

beginning of the

period (%)

Accounts receivable 95441618.29 61934101.56 33507516.73 54.10%

Prepayment 49283415.61 34718079.54 14565336.07 41.95%

Investment properties 1074155513.44 676888184.90 397267328.54 58.69%

Payroll payable 25706082.70 41014602.99 -15308520.29 -37.32%

1. Accounts receivable increase by RMB 33507516.73 or 54.10% compared with the amount of the beginning of the period

mainly because SEG Real Estate Investment confirmed the income of the property management fee of 2473.42 million yuan

during the reporting period.

2. Prepayment increases by RMB 14565336.07 or 41.95% compared with the amount of the beginning of the period mainly

because Shenzhen-Shantou SEG Longyan paid the device purchasing fund of RMB 23519900 in the reporting period.

3. Investment properties increase by RMB 397267328.54 or 58.69% compared with the amount of the beginning of the period

mainly because Nantong SEG carried forward the commercial property costs of RMB 411 million to investment properties in the

reporting period.

4. Payroll payable decreases by RMB 15308520.29 or 37.32% compared with the amount of the beginning of the period mainly

because the Company granted some salaries and bonuses accrued last year in the reporting period.(II) Items of the consolidated profit statement

Unit: RMB/Yuan

Item

Amount of the current

period

Amount of the same

period last year

Difference

Increase/decrease

compared with the

amount of the same

period last year (%)

Interest income 5020857.08 13455248.15 -8434391.07 -62.68%

Tax and surcharges 10239902.06 6678270.88 3561631.18 53.33%

Financial expenses 15524536.56 4747437.45 10777099.11 227.01%

Loss of impairment of assets 3428150.12 0.00 3428150.12 -

Investment income 43590161.83 544597.03 43045564.80 7904.11%

Non-operating expenses 4264049.51 147931.71 4116117.80 2782.44%

Income tax expenses 29410259.23 18096458.88 11313800.35 62.52%

Net profit attributable to the owner

of the parent company

62622931.80 31609057.25 31013874.55 98.12%

Minority shareholders' profit and

loss

11208997.40 8597963.44 2611033.96 30.37%

1. Interest income decreases by RMB 8434391.07 or 62.68% compared with the amount of the same period last year mainly

because the loan business SEG Credit declined in the reporting period.

2. Tax and surcharges increase by RMB 3561631.18 or 53.33% compared with the amount of the same period last year mainly

because the land VAT for property sales of RMB 4070700 in the reporting period.

3. Financial expenses increase by RMB 10777099.11 or 227.01% compared with the amount of the same period last year mainly

because in the reporting period 1) the SEG New Urban project was completed and the capitalization of borrowing interests

ceased; 2) increase in borrowings leads to increase in interest expenses.

4. Loss of impairment of assets increases by RMB 3428150.12 compared with the amount of the same period last year mainly

because SEG Credit accrued the provision for loan loss in the reporting period which was not incurred last year.

5. Investment income increases by RMB 43045564.80 compared with the amount of the same period last year mainly because the

Company obtained the investment income from sales of stocks of Huakong SEG in the reporting period.

6. Non-operating expenses increase by RMB 4264049.51 or 2782.44% compared with the amount of the same period last year

mainly because the termination of SEG Real Estate Investment payment contract during the reporting period.

7. Income tax expenses increase by RMB 11313800.35 or 62.52% compared with the amount of the same period last year mainly

because the Company obtained the investment income of RMB 45700000 from sales of stocks of Huakong SEG in the

reporting period and the corresponding income tax expenses increase.

8. Net profit attributable to the owner of the parent company increase by RMB 31013874.55 or 98.12% compared with the amount

of the same period last year mainly because the Company obtained the investment income of RMB 45700000 from sales of

stocks of Huakong SEG.

9. Minority shareholders' profit and loss increase by RMB 2611033.96 or 30.37% compared with the amount of the same period

last year mainly because the New Urban project of SEG Real Estate reached the income recognition criteria and the sales

payment received in advance is transferred to income leading to increase in the net profit.(III) Items of the consolidated cash flow statement

Unit: RMB/Yuan

Item

Amount of the

current period

Amount of the same

period last year

(adjusted)

Difference

Increase/decrease

compared with

the amount of the

same period last

year (%)

Cash received from interest handling

charges and commissions

4661395.77 15294323.84 -10632928.07 -69.52%

Net increase in customer loans and

advances

-16784988.00 -445447.60 -16339540.40 -

Cash received from disposal of

investments

359690000.00 598000000.00 -238310000.00 -39.85%

Cash received from returns on 52184734.09 4343173.32 47841560.77 1101.53%

investments

Cash paid for purchase and

construction of fixed assets intangible

assets and other long-term assets

32963785.60 12781888.65 20181896.95 157.89%

Cash paid for investment 350880000.00 514980001.00 -164100001.00 -31.87%

Other cash paid for investment

activities

78250.87 30010000.00 -29931749.13 -99.74%

Cash received by absorbing investment 980000.00 56100000.00 -55120000.00 -98.25%

Cash received from borrowings 152000000.00 370000000.00 -218000000.00 -58.92%

Cash paid for dividend and profit

distribution or interest payment

12986315.44 39883427.10 -26897111.66 -67.44%

1. Cash received from interest handling charges and commissions decreases by RMB 10632928.07 or 69.52% compared with the

amount of the same period last year mainly because SEG Credit shrank loans and the interest and handling charges received

decreased compared with the amount of last year.

2. Net increase in customer loans and advances decreases by RMB 16339540.40 compared with the amount of the same period

last year mainly because SEG Credit shrank loans in the reporting period.

3. Cash received from disposal of investments decreases by RMB 238310000.00 or 39.85% compared with the amount of the

same period last year mainly because the principal of bank financing recovered by the Company decreased in the reporting

period.

4. Cash received from returns on investments increases by RMB 47841560.77 or 1101.53% compared with the amount of the

same period last year mainly because the Company received income from sales of stocks of Huakong SEG in the reporting

period.

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

20181896.95 or 157.89% compared with the amount of the same period last year mainly because Shenzhen-Shantou SEG

Longyan made the payment for devices in the reporting period.

6. Cash paid for investment decreases by RMB 164100001.00 or 31.87% compared with the amount of the same period last year

mainly because the financial amount of the Company decreased in the reporting period.

7. Other cash paid for investment activities decreases by RMB 29931749.13 or 99.74% compared with the amount of the same

period last year mainly because the performance bond for project land paid by Shenzhen-Shantou SEG Longyan was included in

this item last year.

8. Cash received by absorbing investment decreases by RMB 55120000.00 or 98.25% compared with the amount of the same

period last year mainly because the minority shareholders' investments received by SEG Longyan was included in this item last

year.

9. Cash received from borrowings decreases by RMB 218000000.00 or 58.92% compared with the amount of the same period last

year mainly because bank loans received by the Company decreased in the reporting period.

10. Cash paid for dividend and profit distribution or interest payment decreases by RMB 26897111.66 or 67.44% compared with

the amount of the same period last year mainly because no subsidiary distributed profits to minority shareholders in the

reporting period payment interest only.II. Progress and impacts of major events and analysis of solutions

√ Applicable □ Not applicable

(I) Completion of reduction of holdings of Huakong SEG

On September 9 2017 the Company released the Announcement on the Plan of Reduction of Holdings of Shenzhen Huakong SEG Co.Ltd. in the designated information disclosure media and planned to reduce no more than 20133429 holding-shares of Huakong SEG

by centralized bidding. As of March 30 2018 the Company reduced 20066600 or 1.9933% of holding-shares of Huakong SEG and

completed the plan of reduction. (For details see the Announcement on the Reduction of Holdings of Shenzhen Huakong SEG Co. Ltd.released by the Company in the designated information disclosure media on April 3 2018.)

(II) Completion of increase in holdings of the Company by middle and senior managers of the Company and its controlling

shareholders

On September 26 2017 the Company released the Announcement on the Plan of Increase of Holdings of the Company by Some

Directors Supervisors Middle and Senior Managers of Controlling Shareholders and Some Directors Supervisors and Senior

Managers of the Company in the designated information disclosure media. Some directors supervisors middle and senior managers of

controlling shareholders and some directors supervisors and senior managers of the Company planned to increase holdings of the

Company valued no less than RMB 5 million by centralized bidding in the trading system of Shenzhen Stock Exchange. As of March

25 2018 the plan of increase was completed and the amount of increase of holdings was RMB 6169500. (For details see the

Announcement on Completion of the Plan of Increase of Holdings of the Company by Some Directors Supervisors Middle and Senior

Managers of Controlling Shareholders and Some Directors Supervisors and Senior Managers of the Company released by the

Company in the designated information disclosure media on March 27 2018.)

(III) Equity transfer of SEG Credit

On March 13 2018 the Company released the Announcement on the Connected Transaction of Transfer of 62% of the Equity of

Shenzhen SEG Credit Co. Ltd. Held by the Company and its Holding Subsidiaries in the designated information disclosure media and

transferred 62% of the equity of SEG Credit held by the Company to the controlling shareholder SEG Group. As of April 18 2018 the

equity transfer was completed. (For details see the Announcement on the Progress of Transfer of 62% of the Equity of Shenzhen SEG

Credit Co. Ltd. Held by the Company and its Holding Subsidiaries released by the Company in the designated information disclosure

media in April 21 2018.)

(IV) Lawsuits of Nanning SEG

Dispute over the lease contract arose between Nanning Haiqi Real Estate Development Co. Ltd. and the Company

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

According to the judgment of the first instance Nanning SEG shall pay the liquidated damages of RMB 666600 to Nanning Haiqi the

Company shall be jointly and severally liable and other claims were dismissed. Nanning Haiqi instituted an appeal to Nanning

Intermediate People's Court. According to the effective judgment [(2017) G. 01. M. Z. 4210] entered by Nanning Intermediate People's

Court in March 2018 the defendant shall pay the liquidated damages of RMB 8000000.00 the attorney fee of RMB 263000.00 and

the litigation cost of RMB 13.4238

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. As of April 4 2018 Nanning Xingning Court blocked two accounts

of the Company and deducted RMB 8476600. The Company has applied for re-trial.Overview of major events Disclosure date

Inquiry index for the websites disclosing the

temporary reports

1. Progress of the lawsuit of the holding subsidiary

The holding subsidiary SEG Industrial received the Civil

January 5 2018

http://www.cninfo.com.cn

Announcement of Shenzhen SEG Co. Ltd. on

Judgments [(2017) Y. 0304 M. C. No. 5088 and 5092] from

Futian District People's Court

the Progress of the Lawsuit of the Holding

Subsidiary

2. Expiration of the approval of share issuance to acquire

assets and raise supporting funds January 5 2018

http://www.cninfo.com.cn

Announcement of Shenzhen SEG Co. Ltd. on

the Approval of Share Issuance to Acquire

Assets and Raise Supporting Funds

3. Reduction of holdings of Huakong SEG

As deliberated and adopted at the 24th interim meeting of

the 7th Board of Directors and the 5th extraordinary general

meeting of 2017 the Company will reduce no more than

20133429 holding-shares of Huakong SEG (accounting for

no more than 2% of the total share capital of Huakong SEG

subject to changes in case of changes in shares due to

issuance of bonus shares or capital reserves transferred into

share capital by Huakong SEG) by centralized bidding

according to laws within six months following 15 trading

days from the announcement of the plan of reduction and

will authorize the management of the Company to appoint

personnel to be responsible for specific operations. As of

January 3 the Company reduced 10066600 or 0.9999% of

holding-shares of Huakong SEG.January 5 2018

http://www.cninfo.com.cn

Announcement of Shenzhen SEG Co. Ltd. on

the Progress of Reduction of Holdings of

Shenzhen Huakong SEG Co. Ltd.

4. Shenzhen SEG Longyan Energy Technology Co. Ltd.'s

investment and establishment of Hangzhou SEG Longyan

Energy Technology Co. Ltd.

The Proposal for Shenzhen SEG Longyan Energy

Technology Co. Ltd.'s Investment and Establishment of

Hangzhou SEG Longyan Energy Technology Co. Ltd. was

deliberated and adopted at the 28th interim meeting of the

7th Board of Directors on January 17 2018. SEG Longyan

invested and established a wholly-owned subsidiary

Hangzhou SEG Longyan Energy Technology Co. Ltd. in

Hangzhou with the registered capital of RMB 40000000.January 19 2018

http://www.cninfo.com.cn

Announcement of Shenzhen SEG Co. Ltd. on

the Investment and Establishment of Hangzhou

SEG Longyan Energy Technology Co. Ltd.

5. Connected Transaction of transfer of 62% of the equity of

Shenzhen SEG Credit Co. Ltd. held by the Company and its

holding subsidiaries

The Company transferred 62% of the equity of Shenzhen

SEG Credit Co. Ltd. held by the Company and its holding

subsidiaries including 38% of the equity of SEG Credit held

by the Company 16% of the equity of SEG Credit held by

Shenzhen SEG Industrial Investment Co. Ltd. and 8% of

the equity of SEG Credit held by SEG Property

Development Co. Ltd.

March 13 2018

http://www.cninfo.com.cn

Announcement on the Connected Transaction

of Transfer of 62% of the Equity of Shenzhen

SEG Credit Co. Ltd. Held by the Company

and its Holding Subsidiaries

. Convening the first extraordinary general meeting of 2018

The Company published the Announcement on the Notice of

the First Extraordinary General Meeting of 2018 and the

Supplementary Notice of the First Extraordinary General

Meeting of 2018 in China Securities Journal Securities

Times Securities Daily Hong Kong Commercial Daily and

www.cninfo.com.cn respectively on March 13 2018 and

March 17 2018.March 27 2018

http://www.cninfo.com.cn

Announcement on Convening the First

Extraordinary General Meeting of 2018

7. Replacement of directors and supervisors

The Company convened the first extraordinary general

meeting of 2018 on March 29 2018. As deliberated and

adopted at the meeting Chen Huijie and Zhang Liang were

elected as directors of the 7th Board of Directors and Zhang

Yujie and Wang Guancheng were elected as supervisors of

the 7th Board of Supervisors.March 29 2018

http://www.cninfo.com.cn

Announcement on Resolutions of the First

Extraordinary General Meeting of 2018

8. Election of the Chairman of the Board of Directors and

Chairman of the Board of Supervisors and appointment of

the Vice General Manager and Secretary of the Board

The Company convened the 31st interim meeting of the 7th

Board of Directors and the 6th interim meeting of the 7th

Board of Supervisors on March 29 2018. At the meeting of

the Board of Directors Mr. Chen Huijie was elected as

Chairman of the Board of Directors and Mr. Peng Aiyun was

appointed as Vice General Manager and Secretary of the

Board. At the meeting of the Board of Supervisors Mr.

Zhang Yujie was elected as Chairman of the Board of

Supervisors.March 30 2018

http://www.cninfo.com.cn

Announcement on Resolutions of the 31st

Interim Meeting of the 7th Board of Directors

and Announcement on Resolutions of the 6th

Interim Meeting of the 7th Board of Directors

9. Public offering of corporate bonds

The Company convened the 30th interim meeting of the 7th

Board of Directors on March 13 2018 and the first

extraordinary general meeting of 2018 on March 29 2018 at

which the Proposal of Shenzhen SEG Co. Ltd. for Public

Offering of Corporate Bonds was deliberated and adopted.March 13 2018 and

March 29 2018

http://www.cninfo.com.cn

Announcement on Resolutions of the 30th

Interim Meeting of the 7th Board of Directors

and Announcement on Resolutions of the First

Extraordinary General Meeting of 2018

III. Commitments not fulfilled in the reporting period by the actual controller of the Company

shareholders buyers or other related parties

□ Applicable √ Not applicable

There are no commitments not fulfilled in the reporting period by the actual controller of the Company shareholders buyers or other

related parties.IV. Estimation of operating results of January-June 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 of the previous year and causes

√ Applicable □ Not applicable

Performance forecast: The same goes up dramatically

The performance forecast fills in the data type: Exact quantity

The end of the next

reporting period

The same period last

year

Increase/decrease compared with the amount of the

same period last year

Cumulative net profit

forecast (Ten thousand

yuan)

9100 5001 Increase 91.96%

Basic EPS (yuan/share) 0.0736 0.0405 Increase 81.84%

Description of the

performance forecast

Cumulative net profit forecast for the first half of 2018 includes the investment income from sales of

stocks of Huakong SEG which did not occur in the same period last year.V. Securities investment

□ Applicable √ Not applicable

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 5 2018 Phone call Individual

Inquire about when the Company will disclose the annual report.The Company has replied that the annual report will be disclosed

on April 24 2018.

January 11 2018 Phone call Individual

Inquire why the stock price of the Company does not rise and

whether there is any important announcement to be disclosed.The Company has replied that there is no information that should

have been disclosed but not disclosed.January 19 2018 Phone call Individual

Inquire about the progress of reduction of holdings of Huakong

SEG. The Company has given a reply according to the actual

progress disclosed.February 5 2018 Phone call Individual

Inquire about the progress of the SEG Longyan project of the

Company. The Company has given a reply according to the

actual progress disclosed.

February 28 2018 Phone call Individual

Inquire about the number of shareholders as of February 28. The

Company has given a reply according to the register of

shareholders released by the Securities Depository and Clearing

Corporation.

March 9 2018 Phone call Individual

Inquire about the main business and transformation of the

Company. The Company has given a reply according to the

actual progress disclosed.March 15 2018 Phone call Individual

Inquire about the number of shareholders as of March 15. The

Company has given a reply according to the register of

shareholders released by the Securities Depository and Clearing

Corporation.

March 23 2018 Phone call Individual

Inquire about when the Company will disclose the annual report.The Company has replied that the annual report will be disclosed

on April 24 2018.

March 27 2018 Phone call Individual

Inquire about the registration method of the general meeting. The

Company has given a reply according to the disclosed notice of

the general meeting.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.