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个股公告正文

深赛格B:2014年年度报告(英文版)

日期:2015-03-28附件下载

          Full text of 2014 Annual Report of Shenzhen SEG Co., Ltd.




Shenzhen SEG Co., Ltd.



  2014 Annual Report




      March 2015




          1
                                                         Full text of 2014 Annual Report of Shenzhen SEG Co., Ltd.




           Chapter 1 Important Notice, Contents, and Definitions

The Board of Directors, Board of Supervisors, directors, supervisors and senior
executives guarantee that this annual report is authentic, accurate, and complete and
that it has no false records, misleading statements or major omissions and they
commit to the individual and joint and several legal liabilities.

All the directors except the one(s) mentioned below have attended the board meeting
reviewing the annual report.

                                     Post of director not
 Name of director not attending                                Cause of not attending
                                   attending the meeting                                  Name of the entrustee
     the meeting personally                                    the meeting personally
                                         personally

Li Luoli                          Independent director       Travel for business        Zhou Hanjun




Shenzhen SEG Co., Ltd. plans not to distribute cash dividends and bonus shares or
convert reserved funds into share capital.

Chairman of the Board Wang Li, 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 annual report
are true, accurate and complete.

The forward-looking statements including future plans, development strategies and so
on involved in the annual report do not constitute substantial commitment to
investors. So, investors should pay attention to investment risks.




                                                         2
                                                                                  Full text of 2014 Annual Report of Shenzhen SEG Co., Ltd.



                                                                  CONTENTS

2014 Annual Report ................................................................................................................................................. 1

Chapter 1 Important Notice, Contents, and Definitions ...................................................................................... 2

Chapter 2 Company Profile .................................................................................................................................... 6

Chapter 3 Summary of Accounting Data and Financial Indexes ........................................................................ 9

Chapter 4 Report of the Board of Directors ........................................................................................................ 12

Chapter 5 Important Matters ............................................................................................................................... 47

Chapter 6 Changes in Share Capital and Information on Shareholders .......................................................... 57

Chapter 7 Preferred Stock Description ............................................................................................................... 63

Chapter 8 Information on Directors, Supervisors, Senior Executives and Employees ................................... 63

Chapter 9 Corporate Governance ........................................................................................................................ 75

Chapter 10 Internal Control ................................................................................................................................. 89

Chapter 11 Financial Statements ........................................................................................................................ 92

Chapter 12 Documents Available for Reference ............................................................................................... 196




                                                                                  3
                                                   Full text of 2014 Annual Report of Shenzhen SEG Co., Ltd.




                                            Definitions

            Definition          Refers to                             Description
This Company, the Company      Refers to     Shenzhen SEG Co., Ltd.
Shenzhen SEG Group Co., Ltd.   Refers to     Shenzhen SEG Group Co., Ltd.
Huakong SEG                    Refers to     Shenzhen Huakong SEG Co., Ltd.
SEG Baohua                     Refers to     Shenzhen SEG Baohua Enterprise Development Co., Ltd.
Xi'an SEG                      Refers to     Xi'an SEG Electronics Market Co., Ltd.
Suzhou SEG                     Refers to     Suzhou SEG Electronics Market Co., Ltd.
Xi'an Hairong SEG              Refers to     Xi'an Hairong SEG Electronics Market Co., Ltd.
Nanjing SEG                    Refers to     Shenzhen SEG Electronics Market Management Co., Ltd.
                                             Shanghai SEG Electronics Market Operation Management Co.,
Shanghai SEG                   Refers to
                                             Ltd.
Nantong SEG                    Refers to     Nantong SEG Times Square Management Co., Ltd.
Changsha SEG                   Refers to     Changsha SEG Development Co., Ltd.
                                             Shenzhen Mellow Orange Business Hotel Management Co.,
Mellow Orange Hotel            Refers to
                                             Ltd.
Longgang SEG                   Refers to     Shenzhen SEG Electronics Market Management Co., Ltd.
SEG Industry                   Refers to     Shenzhen SEG Industrial Investment Co., Ltd.
SEG E-Commerce                 Refers to     Shenzhen SEG E-Commerce Co., Ltd.
SEG Credit                     Refers to     Shenzhen SEG Credit Co., Ltd.
SEG Navigations                Refers to     Shenzhen SEG GPS Scientific Navigations Co., Ltd.
Wujiang SEG                    Refers to     Wujiang SEG Electronics Market Management Co., Ltd.
Shunde SEG                     Refers to     Fushan Shunde SEG Electronics Market Management Co., Ltd
Wuxi SEG                       Refers to     Wuxi SEG Electronics Market Co., Ltd
Nanning SEG                    Refers to     Nanning SEG Digital Plaza Management Co., Ltd.
Yantai SEG                     Refers to     Yantai SEG Times Square Development Co., Ltd.
Suzhou SEG Digital             Refers to     Suzhou SEG Digital Life Plaza Management Co., Ltd.
Zhengzhou SEG                  Refers to     Zhengzhou SEG Digital Plaza Management Co., Ltd.
                                             Xi'an Fengdong New Town SEG Times Square Properties Co.,
Xi'an Fengdong SEG             Refers to
                                             Ltd.
Nantong SEG Operation
                               Refers to     Nantong SEG Commercial Operation Management Co., Ltd.
Company
SEG Logistics                  Refers to     Shenzhen SEG Logistics Co., Ltd.
                                             An integrated information platform for market management
SEG Universal                  Refers to
                                             with the functions of access control management,

                                                   4
                                                     Full text of 2014 Annual Report of Shenzhen SEG Co., Ltd.


           Definition             Refers to                             Description
                                              micro-payment, query system and information distribution and
                                              so on.
                                              State-owned   Assets   Supervision        and    Administration
Shenzhen SASAC                   Refers to
                                              Commission of Shenzhen Municipality
CSRC                             Refers to    China Securities Regulatory Commission
Shenzhen Securities Regulatory                Shenzhen Securities Regulatory Bureau of China Securities
                               Refers to
Bureau                                        Regulatory Commission
The Articles of Association      Refers to    The Articles of Association of Shenzhen SEG Co., Ltd.
Unless otherwise specified, the
                                 Refers to    Amount in RMB
amount referred to in the report




                                Prompts for Major Risks
The forward-looking statements including the future plans, development strategies and so on involved in
the annual report do not constitute substantial commitment to investors. So, investors should pay attention
to investment risks.




                                                     5
                                                       Full text of 2014 Annual Report of Shenzhen SEG Co., Ltd.




                                  Chapter 2 Company Profile

I. Basic Information

Stock abbreviation          SHEN SEG, SHEN SEG B                 Stock code               000058, 200058
Changed stock
                           None
abbreviation (if any)
Listed on                  Shenzhen Stock Exchange
Company name in
                           深圳赛格股份有限公司
Chinese
Abbreviated Company
                           深赛格
name in Chinese
Company name in
                           SHENZHEN SEG CO., LTD.
English (if any)
Abbreviated Company
                           None
name in English (if any)
Registered address         31/F, Tower A, Qunxing Plaza, Huaqiang Road (N), Futian District, Shenzhen
Post code                  518028
Office address             31/F, Tower A, Qunxing Plaza, Huaqiang Road (N), Futian District, Shenzhen
Post code                  518028
Website                    http://www.segcl.com.cn
E-mail                     segcl@segcl.com.cn


II. Contact Information

                           Secretary of the Board of Directors          Securities affairs representative
Name                       Zheng Dan                                    Zhang Xin
                           31/F, Tower A, Qunxing Plaza, Huaqiang       31/F, Tower A, Qunxing Plaza,Huaqiang
Contact address
                           Road (N), Futian District, Shenzhen          Road (N), Futian District, Shenzhen
Phone                      0755-83747939                                0755-83747939
Fax                        0755-83975237                                0755-83975237
E-mail                     segcl@segcl.com.cn                           segcl@segcl.com.cn




III. Information Disclosure and Filing Site

Newspaper selected by the Company for           China Securities Journal, Securities Times, Securities Daily and
information disclosure                          Hong Kong Commercial Daily

                                                       6
                                                           Full text of 2014 Annual Report of Shenzhen SEG Co., Ltd.


Website selected by CSRC for publishing the
                                                   http://www.cninfo.com.cn      (Cninfo Website)
annual report
The place where the annual report is prepared      Secretary's Office of Board of Directors, 31/F, Tower A, Qunxing
and kept                                           Plaza, Huaqiang Road (N), Futian District, Shenzhen


IV. Changes of Registration Information

                                                            Registered number
                                                                                                          Organizing
                Registration                                of the corporation      Tax registration
                                    Registered address                                                    institution
                   date                                       legal person's              No.
                                                                                                             code
                                                             business license
                                  16/F, Baohua
                                  Technology Building,
First
               July 16, 1996      Huaqiang Road (N),       440301103573251        440301279253776       27925377-6
registration
                                  Futian District,
                                  Shenzhen
                                  31/F, Tower A,
Registration
                                  Qunxing Plaza,
at the end
               April 1, 2014      Huaqiang Road (N),       440301103573251        440300279253776       27925377-6
of reporting
                                  Futian District,
period
                                  Shenzhen
                                  Changes to business scope on July 6, 2005: Domestic commerce, goods supply
                                  and sale (excluding commodities under special operation, control and sale),
Changes of main business
                                  industrial investment (licenses for specific projects shall be subject to application
since the Company's listing
                                  on a case-by-case basis), economic information consultancy, property lease, real
(if any)
                                  estate agency, and operation of SEG special electronics markets (the license for the
                                  special market shall be specially applied for).
Changes of controlling
                                  No change.
shareholders (if any)


V. Other Relevant Information of the Company

The accounting firm employed by the Company:

Name of the accounting firm       BDO Dahua CPA Co., Ltd. (special general partnership)
Address of the accounting
                                  Room 1101, 11/F, Tower 7, No. 16 Xisihuan Road (M), Haidian District, Beijing
firm
Name of the certified public
                                  Yang Xi         Xin Junliang
accountant

The sponsor firm employed by the Company for fulfilling the duties of continuous supervision in the reporting
period:

□ Applicable √ Not applicable


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The financial advisor employed by the Company for fulfilling the duties of continuous supervision in the reporting
period:

□ Applicable √ Not applicable




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     Chapter 3 Summary of Accounting Data and Financial Indexes

I. Major Accounting Data and Financial Indexes

Are retrospective adjustments made to previous financial statements due to accounting policy changes or
accounting errors?

□ Yes √ No

                                                 2013              2013         Year-on-year 2012 (retroactive
                             2014                                             increase/decrease adjustment not
                                           Before adjustment After adjustment        (%)          involved)
Operating revenue
                         681,343,920.99       597,358,257.82   597,358,257.82            14.06%    463,807,500.77
(Yuan)
Net profit
attributable to
shareholders of the       48,380,294.05        54,338,735.35    54,338,735.35           -10.97%     45,587,138.06
listed company
(Yuan)
Net profit
attributable to
shareholders of the
listed company after      45,920,252.23        48,912,658.58    48,912,658.58            -6.12%     45,369,864.10
deduction of
non-recurring gains
and losses (Yuan)
Net cash flow arising
from operating           -427,933620.94      -122,530,546.70 -122,530,546.70          -249.25%     -45,987,512.97
activities (Yuan)
Basic EPS
                                 0.0616               0.0692           0.0692           -10.98%             0.0581
(Yuan/Share)
Diluted EPS
                                 0.0616               0.0692           0.0692           -10.98%             0.0581
(Yuan/Share)

Weighted average                  3.80%                                                  -0.64%
                                                      4.44%             4.44%                               3.88%
ROE (%)

                                                 2013              2013         Year-on-year
                          End of 2014                                         increase/decrease     End of 2012
                                           Before adjustment After adjustment        (%)
Total assets (Yuan)     2,659,717,718.28    2,134,940,597.85 2,134,940,597.85            24.58% 1,740,697,285.20
Net assets
attributable to
shareholders of the     1,298,970,719.85    1,250,224,375.08 1,250,224,375.08             3.90% 1,195,672,946.25
listed company
(Yuan)




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II. Differences in Accounting Data under Chinese and Overseas Accounting Standards

1. The differences of net profit and net assets in this financial report disclosed based on international and
Chinese accounting standards

                                                                                                         Unit: YUAN
                            Net profit attributable to shareholders of the Net assets attributable to shareholders of
                                            listed company                            the listed company
                                                                                                    Amount at the
                               Amount in the           Amount in the        Amount at the end
                                                                                                   beginning of the
                               current period          previous period        of the period
                                                                                                        period

Based on Chinese                     48,380,294.05                            1,298,970,719.85
                                                           54,338,735.35                            1,250,224,375.08
accounting standards

Adjusted items and amounts based on international accounting standards:

Based on international               48,380,294.05                            1,298,970,719.85
                                                           54,338,735.35                            1,250,224,375.08
accounting standards


2. The differences of net profit and net assets in this financial report disclosed based on overseas and
Chinese accounting standards

                                                                                                         Unit: YUAN
                            Net profit attributable to shareholders of the Net assets attributable to shareholders of
                                            listed company                            the listed company
                                                                                                    Amount at the
                               Amount in the           Amount in the        Amount at the end
                                                                                                   beginning of the
                               current period          previous period        of the period
                                                                                                        period
Based on Chinese
                                     47,403,384.49         54,338,735.35      1,297,993,810.29      1,250,224,375.08
accounting standards
Adjusted items and amounts based on overseas accounting standards:
Based on overseas
                                     47,403,384.49         54,338,735.35      1,297,993,810.29      1,250,224,375.08
accounting standards


III. Items and amount of non-recurring gains and losses:

                                                                                                         Unit: YUAN
                                        Amount of      Amount of         Amount of
               Item                                                                               Remarks
                                          2014           2013              2012
Gains and losses from disposal of
non-current assets (including the                                                       Gains on disposal of fixed
                                            6,475.34   1,810,628.46        -3,492.79
write-off of asset impairment                                                          assets
reserves)
                                                                                     Won the special subsidies
Government subsidies recorded
                                                                                     issued by Futian District
into current gains and losses
(except those closely related with      1,554,585.78   1,117,834.72       870,280.00 Bureau of Science and
                                                                                     Technology Innovation of
corporate business and enjoyed
                                                                                     Shenzhen, and won the special
according to national unified
                                                                                     subsidies issued by Shenzhen

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                                     Amount of       Amount of      Amount of
               Item                                                                           Remarks
                                       2014            2013           2012
standard quota or ration)                                                          Economic, Trade and
                                                                                   Informatization Commission.
Fund appropriation charges for
non-financial entities recorded        700,000.00     581,000.00      581,000.00
into current gains and losses
Expenditures for corporate
restructuring, such as expenses
for relocation of employees and
for integration
                                                                                   Won the case with Guangzhou
Transferred-back impairment
                                                                                   ECS and recovered the
provision for accounts receivable,
                                                     3,022,045.29                  payment for goods, which
for which separate impairment
                                                                                   reversed the bad-debt provision
tests are carried out
                                                                                   previously accrued.
Trustee fee from entrusted
                                       200,000.00     200,000.00      200,000.00
operation
Other non-operating revenue and                                                 Liquidated damages from
expenses except the                    498,440.96    1,212,506.81 -1,392,736.58 defaulting tenants collected
above-mentioned items                                                           and so on
Less: Amount of affected income
                                      -216,991.94 -1,617,611.87      -397,102.02
tax
      Amount of influence on
minority shareholders' equity         -282,468.32    -900,326.64      359,325.35
(after tax)
Total                                2,460,041.82    5,426,076.77     217,273.96                 --

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 for classifying the non-recurring profit
and loss listed in this announcement as recurring.

□ Applicable √ Not applicable




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                     Chapter 4 Report of the Board of Directors

I. Overview

The Company stepped into the fourth year of its "12th Five-Year" Strategic Plan implementation in 2014. Under
the pressure of slowing domestic macro economic growth, the Company adhered to the management concept of
"securing the foothold, focusing on key points, and shifting the business direction", continued to strengthen its
independent innovation, and vigorously expanded its business. With the joint effort of the Company and the
invested enterprises, the performance of the Company is growing steadily. Therein, Nantong SEG Times Square
Project was officially capped on December 12, 2014; the business of existed electronics markets grew steadily and
continued to develop stably; the small loan business entered a stage of benign development; and the e-commerce
business started to achieve turning losses into gains.

During the reporting period, the Company achieved a total operating revenue of 752,410,000 Yuan, with a 17.48%
increase over the previous year, mainly due to: (1) substantial increase in the income of the small loan business; (2)
substantial increase in the income of the e-business; and (3) growth in the income of property rental and hotel
business.

During the reporting period, the Company achieved a total profit of 111,76 million Yuan, with a 6.19% increase
over the previous year, mainly due to: (1) increase in the income and profit of the small loan business; (2) growth
in the income from financial products investment.


II. Analysis of Main Businesses

1. Overview

Main business of the Company includes development and operation of specialized electronics market and its
supporting projects, property lease service, IT product channeling retail terminal service, e-commerce and
value-added small loan service.

(1) Operation of the electronics markets

In 2014, the new technical means and new business models centering on the Internet and Mobile Internet are
rewriting the traditional business rules of the electronics market industry, which changes consumers' consuming
behaviors and the whole traditional retail industry. Facing the intense market competition and the impact from
new commercial modal, the Company strategically invested more in the research of a new model for the
electronics market business and fully exerted the advantage of resources sharing in the chain markets across the
country. At the same time, the Company strived to further strengthen the innovation of electronics market
business and explore new business growth models while ensuring stable market operation.

During the reporting period, Wuxi SEG Electronics Market officially opened in March; Suzhou SEG Digital Plaza
(Park) also began trial operation in September; Taizhou SEG Electronics Market Project has established initial
intention of cooperation; and Zhengzhou SEG Digital Plaza project was approved by the Board of Directors, and
began to enter the preparatory stage.




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In 2014, facing a sluggish industry environment and severe channel competitions, the Company's business in the
electronics market maintained steady operation. Under a "zero accident" premise, the market operation and
innovation capabilities are continuously improved. New business models were developed, such as the SEG
Factory Store. A hybrid business model of "e-business + physical stores + marketing channel" was built up. The
scalable supply and marketing channels that connect downstream buyers and upstream electronics factories were
established. Direct trading with consumers was achieved through Tmall Store and physical stores. In this manner,
marketing channels were merged.

During the reporting period, the Company's electronics market business achieved the revenue of 312,300,000
Yuan, with a decrease of 1.67% from the previous year, mainly due to the decrease of Nanjing SEG's proprietary
trading business income. Mainly due to the increase of gains from use of funds, the total profit reached 77.01
million Yuan, with an increase of 4.32% over the previous year.

(2) Businesses of property leasing business

The property lease business of the Company headquarters was impeded by decline of the domestic mobile phone
business and the road enclosure and traffic control due to construction of Shenzhen Metro Line No.7, and
therefore the property occupancy rate and unit rent decreased compared with the same period of last year.

In the year of 2014, the property operation of the Company's subsidiary SEG Baohua was steady and rose. Despite
of the depressing property lease environment in Huaqiang North district and the rising vacancy rate and dramatic
rent drop of the surrounding office buildings, the Company kept the occupancy rate at 99% and above, and
maintained the highest rent among the office buildings in Huaqiang North district by improving the service quality
and taking effective business operation measures.

In the reporting period, the Company's property lease business yielded a total operation income of 66.38 million
Yuan, with a year-on-year increase of 1.16%, and achieved a total profit of 23.44 million Yuan, with a
year-on-year increase of 25.21%.

(3) Businesses of the channel retail terminal of IT products

In 2014, the IT product channel retail terminal business of SEG Industrial, a wholly owned subsidiary of the
Company, stepped into a virtuous development stage. During the reporting period, the company's channel
business obtained an income of 99.06 million Yuan, with a year-on-year increase of 186.05%, mainly due to the
revenue from the mobile phone distribution business and communications distribution business introduced in the
reporting period.

(4)Business of the electronic commerce

In the second half year of 2013, the Company redefined its e-commerce business. In 2014, SEG E-Commerce's
main business has shifted to the supply chain and segbuy.com. This platform provides tenants with all-around,
one-stop supply chain services by using the resources of physical SEG electronics markets.

In the reporting period, the Company's e-commerce business yielded a total operation income of 46.78 million
Yuan, with a year-on-year increase of 588.95%, and achieved a total profit of 1.35 million Yuan, turning losses
into profits compared with the same period last year. The company's revenue and profits in 2014 were mainly
from the supply chain related businesses.

(5) Small loan business



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In 2014, SEG's small loan business achieved a substantial growth. During the reporting period, the Company
achieved the operating revenue of 71.07 million Yuan with the small loan business, with a year-on-year increase
of 63.87%, and also made a total profit of 39,650,000 Yuan, a year-on-year increase of 61.38%.

The Company reviews the implementation progress of previously disclosed development strategies and business
plans in the reporting period.

In accordance with the 12th five-year plan, the Company disclosed its 2014 business plan in the 2013 Annual
Report. The project is funded by the capital owned by the Company and by issuing short-term financing bonds.
The following table lists the implementation progress of the 2014 business plan disclosed in the 2013 Annual
Report.

                           Investment                                                                    Actual
                               plan                                                                     amount
 No.      Project name      (RMB ten                              Progress                             (RMB ten
                            thousand                                                                   thousand
                              Yuan)                                                                      Yuan)
                                         (1) According to the decision made in the 12th special
                                         meeting of the 6th Board on May 27, 2014, the Company
                                         planned to invest into the Zhengzhou SEG Digital Plaza
                                         project. Together with Henan Guanlian Engineering Co.,
                                         Ltd. and Zhengzhou Coal Research Institute Ltd., the
                                         investment totals 6 million Yuan as the registration capital.
                                         The company planned to invest 3.06million Yuan and hold
       Build new                         51% of the shares. Up till the end of the reporting period,
       electronics                       this project is still at the stage of preparation, so this
  1    markets based             2,500   investment item has not happened yet.                         800
       on the leasing
       model                             (2) According to the decision made in the 15th special
                                         meeting of the 6th Board on July 29, 2014, the Company
                                         planned to invest into the Suzhou SEG Digital Life Plaza
                                         project. The investment totals 8 million Yuan as the
                                         registration capital for the wholly-owned subsidiary
                                         Suzhou SEG Digital Life Plaza Management Co., Ltd. As
                                         of the end of the reporting period, the project has been
                                         established, and investment fund has occurred.
                                         (1) According to the decision made in the 28th special
                                         meeting of the 5th Board held on January 8, 2013, the
                                         Company planned to invest to establish Nantong SEG
                                         Times Square Management Co., Ltd. (hereinafter referred
                                         to as Nantong SEG) to develop the Nantong SEG Times
                                         Square project. Nantong SEG was officially founded on
       Open                              February 25, 2013, and the Nantong SEG Times Square
       electronics
  2                          107,622     project was officially laid the foundation stone on 25,541
       markets by
       self-construction                 November 27, 2013; the project marketing center was
                                         officially opened on June 28, 2014. On December 12,
                                         2014, the ceremony for completing the major structure
                                         capping of Nantong SEG Times Square project was held.
                                         As of the end of the reporting period, the project is still
                                         under construction.
                                         (2) According to the decision made in the 7th special


                                                        14
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                           Investment                                                                      Actual
                               plan                                                                       amount
 No.       Project name     (RMB ten                              Progress                               (RMB ten
                            thousand                                                                     thousand
                              Yuan)                                                                        Yuan)
                                        meeting of the 6th Board held on February 14, 2014, the
                                        company planned to invest 5 million Yuan as the capital
                                        base for registration to set up Nantong SEG Commercial
                                        Operation Management Co., Ltd. with sole proprietorship,
                                        which mainly works on commercial operation and property
                                        management of Nantong SEG Times Square. As of the end
                                        of the reporting period, Nantong SEG Commercial
                                        Operation Management Co., Ltd. has been set up, but the 5
                                        million Yuan capital base is not paid. This investment
                                        funds has temporarily not occurred.
                                        (3) According to the decision made in the 10th special
                                        meeting of the 6th Board held on April 4, 2014 and the 1st
                                        shareholder special meeting in 2014 held on April 23,
                                        2014, the Company planned to invest into the plot
                                        maturation and project construction of Yantai SEG Times
                                        Square. On April 28, 2014, the Company participated in
                                        public auction for the plot maturation investor, but failed to
                                        obtain the investor qualification. This competition failure
                                        did not bring significant influence to the Company's
                                        production and operation. In the reporting period, the
                                        company has invested 45 million Yuan as deposit for
                                        registration. However, due to the failure, this investment
                                        item has been taken back within the reporting period.
                                        (4) According to the decision made in the 14th special
                                        meeting of the 6th Board held on July 3, 2014 and the 2nd
                                        special shareholders meeting in 2014 held on July 21st
                                        2014, the Company planned to invest into the project
                                        construction of Xi'an SEG Times Square. On December 31,
                                        2014, the Company participated in public auction of the
                                        land, but failed to obtain the investor qualification. This
                                        competition failure did not bring significant influence to
                                        the Company's production and operation. In the reporting
                                        period, the company has invested 30 million Yuan as
                                        deposit for registration. However, due to the failure, this
                                        investment item has been taken back in January 2015.

Reasons for the actual operating performance being more than 20% over or below the disclosed annual profit
forecast

□ Applicable √ Not applicable

Changes in main business models


                                                       15
                                                          Full text of 2014 Annual Report of Shenzhen SEG Co., Ltd.


□ Applicable √ Not applicable

2. Revenue

During the reporting period, the Company completed a total operating revenue of 75.241 million Yuan, with a
17.48% increase over the same period of previous year, mainly due to: (1) substantial increase in the income of
the small loan business; (2) substantial increase in the e-business income; (3) increase in the income of the
property rental and hotel business.

Is the Company's goods sales revenue more than its service revenue?

□ Yes √ No

Information about major orders on hand

□ Applicable √ Not applicable

Information about significant changes or adjustments of any product or service in the reporting period

□ Applicable √ Not applicable

Information about the Company's major customers
Sales amount of top 5 customers (Yuan)                                                                195,634,939.10
Proportion of the total sales amount of top 5
                                                                                                             28.71%
customers in the annual sales (%)

Information about top 5 customers

√ Applicable □ Not applicable
  No.                     Client Name                 Sales amount (Yuan)         Proportion in the annual sales (%)
    1     Shenzhen Runneng Digital Co., Ltd.                     110,510,446.52                              16.22%
    2     Shenzhen Wodewo Trading Co., Ltd.                       39,288,132.58                                5.77%
          Shenzhen Comnet Technology Co.,
    3                                                             21,296,350.41                                3.13%
          Ltd.
          Shenzhen Nanfang Yunhe Technology
    4                                                             17,186,953.52                                2.52%
          Co., Ltd.
          Beijing Ruifengli Hongqing Trading
    5                                                              7,353,056.07                                1.08%
          Company
Total                         --                                 195,634,939.10                              28.71%

Other information about major customers

□ Applicable √ Not applicable

3. Cost

Industry classification

                                                                                                          Unit: Yuan
                                            2014                              2013                    Year-on-year
   Industry classification                      Proportion in                      Proportion in    increase/decrease
                                   Amount                            Amount                                (%)
                                                operating cost                     operating cost

                                                         16
                                                              Full text of 2014 Annual Report of Shenzhen SEG Co., Ltd.

                                              2014                                 2013                   Year-on-year
   Industry classification                         Proportion in                       Proportion in    increase/decrease
                                     Amount                             Amount                                 (%)
                                                   operating cost                      operating cost
Electronics market
operation and property          267,082,161.89        47.61%         274,749,822.68            56.49%             -8.88%
leasing service
Trade                           228,817,359.36        40.79%         184,085,676.90            37.85%              2.94%
Hotel                           17,977,382.31         3.20%           14,862,735.64             3.06%              0.14%
E-commerce                      42,202,184.74         7.52%            8,888,586.33             1.83%              5.69%
Finance                           4,865,369.48        0.87%            3,824,364.20             0.79%              0.08%
Total                           560,944,457.78       100.00%         486,411,185.75              100%



Information about major suppliers
Total purchase amount of top 5 suppliers (Yuan)                                                            289,896,825.87
Proportion of the total purchase amount of top 5
                                                                                                                  59.07%
suppliers in the annual purchase (%)

Information about top 5 suppliers

√ Applicable □ Not applicable
                                                                                      Proportion in the annual purchase
      No.                Name of supplier              Purchase amount (Yuan)
                                                                                                     (%)
               Nantong Huatong Construction
       1                                                            140,466,000.00                                28.62%
               Group Co., Ltd.
       2       Shenzhen Shuojian Industry Co., Ltd                   88,650,854.94                                18.06%
               Nanjing Yunde Investment
       3                                                             22,313,634.61                                 4.55%
               Development Co., Ltd.
               Shenzhen Yixinzhongtian
       4                                                             20,536,785.90                                 4.18%
               Technology Co., Ltd.
               Changsha Juzhengxinye Computer
       5                                                             17,929,550.43                                 3.65%
               Technology Co., Ltd.
Total                           --                                  289,896,825.87                                59.07%

Other information about major suppliers

□ Applicable √ Not applicable

4. Expense

                                                 Increase/Decrease
 No.         Item   2014 (Yuan) 2013 (Yuan)                                           Reasons for change
                                                        (%)
             Sale                                                    Due to the reduction of sales promotion expenses
  1                 2,149,313.48 3,630,236.75        -40.79%
           expenses                                                  incurred during the reporting period
                                                                     Due to the increase of bank loans, issuance of
        Financial
  2               9,168,643.60 -10,488,089.69            --          short-term financing bonds, and increase of interest
          cost
                                                                     expenses during the reporting period



                                                              17
                                                        Full text of 2014 Annual Report of Shenzhen SEG Co., Ltd.

5. Research and Development (R&D) Expenditure

Proportion of R&D investment in the operating revenue in the recent three years:

                                       2014                           2013                       2012
R&D investment (Yuan)                      1,136,073.70                  1,399,040.99               3,596,604.31
R&D investment
proportion in the
                                                 0.09%                         0.11%                       0.30%
Company's latest audited
net assets (%)
R&D investment
proportion in operating                          0.17%                         0.23%                       0.78%
revenue (%)

During the reporting period, the company's R&D expenditure is mainly used for the construction, upgrade, and
maintenance of segbuy.com and SEG Universal. The investment will further help to improve the Company's
e-business platform to improve the viability and competitiveness of the Company.

6. Cash Flow

                                                                                                     Unit: YUAN
                                                                                            Year-on-year
            Item                       2014                           2013
                                                                                        increase/decrease (%)
Subtotal of cash inflow
                                       2,439,133,722.87            1,363,728,760.09                       78.86%
from operating activities
Subtotal of cash outflow for
                                       2,867,067,343.81            1,486,259,306.79                       92.90%
operating activities
Net cash flow from
                                        -427,933,620.94               -122,530,546.70                   -249.25%
operating activities
Subtotal of cash inflow
                                       3,997,632,856.03            2,255,590,142.49                       77.23%
from investing activities
Subtotal of cash outflow for
                                       3,914,849,729.51            2,315,481,470.14                       69.07%
investing activities
Net cash flow from
                                          82,783,126.52                -59,891,327.65                         ----
investing activities
Subtotal of cash inflow
                                        678,352,371.12                160,000,000.00                     323.97%
from financing activities
Subtotal of cash outflow for
                                        286,738,699.97                 95,116,782.77                     201.46%
financing activities
Net cash flow arising from
                                        391,613,671.15                 64,883,217.23                     503.57%
financing activities
Net increase in cash and
                                          46,463,186.89               -117,538,973.37                           ---
cash equivalents

                                                                                                     Unit: YUAN



Reasons for over 30% year-on-year increase/decrease of related data

√ Applicable □ Not applicable

                                                       18
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1. The cash inflow from operating activities has a 78.86% year-on-year increase during the reporting period,
mainly because:

(1) During the reporting period, the cash inflow from the supply chain services of SEG E-Commerce increases.

(2) The size of SEG small loan business is increased and the interest income increases over the previous year.

2. The cash outflow for operating activities has an 92.90% year-on-year increase during the reporting period,
mainly because:

(1) During the reporting period, the cash outflow of the supply chain services of SEG E-Commerce increases.

(2) During the reporting period, the cash outflow of Nantong SEG estate subsidiary increases.

(3) With the development of SEG small loan business, the loan issued increases from the previous year.

3. Net cash flow arising from operating activities decreases by 249.25% from the previous year: The net cash flow
decreases sharply because the cash outflow for operating activities during the reporting period increases due to the
above reasons and is higher than the cash inflow for operating activities in the same period.

4. Cash inflow from investing activities has a year-on-year increase of 77.23% during the reporting period due to
rapid growth of the bank financial investment in the reporting period.

5. Cash outflow for investing activities has a year-on-year increase of 69.07% during the reporting period due to
rapid growth of the scale of bank financial investment in the reporting period and the corresponding increase of
recovered investment funds.

6. Net cash flow arising from investing activities has a year-on-year increase during the reporting period because
the bank financial investment recovered is higher than the external investment size and the income received from
bank financial investment increases.

7. Cash inflow from financing activities during the reporting period has a year-on-year increase of 323.97%,
mainly due to the increase of loans obtained and issuance of short-term financing bonds during the reporting
period.

8. Cash outflow for financing activities during the reporting period has a year-on-year increase of 201.46%,
mainly due to the repayment of loan principal and interest for bank loans by the subsidiary during the reporting
period.

9. Net cash flow arising from financing activities has a year-on-year increase of 503.57% during the reporting
period, mainly due to the increase of financing scale of the Company during the reporting period.

10. Cash and cash equivalents has a year-on-year increase during the reporting period, mainly due to the combined
effects of above factors 3, 6, and 9.



Reasons for the significant difference between the cash flow arising from operating activities and the annual net
profit in the reporting period

√ Applicable □ Not applicable




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III. Constitution of Main Business

                                                                                                        Unit: YUAN
                                                                Year-on-year      Year-on-year      Year-on-year
                   Operating                     Gross profit increase/decrease increase/decrease increase/decrease
                                  Operating cost
                    revenue                        margin        of operating of operating cost of gross profit
                                                                 revenue (%)           (%)           margin (%)
By industry
Electronics
market
operation and
              378,687,526.55 267,082,161.89            29.47%              -1.18%             -2.79%          1.17%
property
leasing
service
Trade           231,763,054.54 228,817,359.36           1.27%              23.11%            24.30%          -0.95%
Hotel            24,114,841.00 17,977,382.31           25.45%              14.81%            20.96%          -3.79%
E-commerce       46,778,498.90 42,202,184.74            9.78%            858.37%            374.79%          91.88%
Finance          71,070,820.07     4,865,369.48        93.15%              64.99%            27.22%           2.03%
By product
Not
applicable
By Region
Shenzhen        550,831,410.15 384,466,835.22          30.20%              26.88%            24.94%           1.08%
Xi'an            54,408,611.06 40,257,634.54           26.01%              8.98%              8.68%           0.21%
Su Zhou          56,137,670.38 54,556,314.25            2.82%              11.98%            34.16%         -16.06%
Changsha         32,771,338.47 27,658,233.57           15.60%              15.73%            14.87%           0.63%
Nanjing          40,176,866.63 36,739,465.36            8.56%            -43.36%            -45.32%           3.29%
Foshan            2,331,170.63     2,266,762.37         2.76%            -18.60%            -54.88%          78.20%
Nanning          10,572,085.86     9,716,037.59         8.10%            155.30%            115.27%          17.09%
Wuxi              5,185,587.88     5,283,174.88        -1.88%                             3,007.56%

If the statistical rule of main business data is adjusted in the reporting period, the Company shall use the main
business data collected at the end of the reporting period after adjustment of statistical rule.

□ Applicable √ Not applicable


IV. Analysis of Assets and Liabilities

1. Major Changes in Assets

                                                                                                          Unit: Yuan
                        End of 2014                    End of 2013
                                   Proportion                    Proportion Increase/Decrease      Major Changes
                     Amount          in total     Amount           in total        (%)
                                   assets (%)                    assets (%)
Monetary
                 383,056,680.70         14.40 336,593,493.81       15.77                   -1.37
funds

                                                           20
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                        End of 2014                  End of 2013
                                   Proportion                  Proportion Increase/Decrease      Major Changes
                    Amount           in total    Amount          in total        (%)
                                   assets (%)                  assets (%)
Accounts
                185,866,040.16           6.99 204,086,309.32      9.56                  -2.57
receivable
Inventory       278,281,586.72          10.46 98,000,921.50       4.59                   5.87
Investment
                462,562,882.78          17.39 481,517,481.83     22.55                  -5.16
properties
Long-term
equity            82,100,197.01          3.09 112,102,810.03      5.25                  -2.16
investment
Fixed assets     41,408,298.43           1.56 41,876,654.83       1.96                  -0.40
Construction
in progress


2. Major Changes in Liabilities

                                                                                                         Unit: Yuan
                            2014                      2013
                                   Proportio                           Increase
                                                            Proportion /Decreas           Major Changes
                                   n in total
                     Amount                     Amount        in total   e (%)
                                    assets
                                                            assets (%)
                                      (%)
                                                                                 This is because of the increase of
Short-term       189,246,687.3               70,000,000.0                        bank loans obtained by the
                                        7.12                       3.28     3.84
borrowing              8                                0                        Company during the reporting
                                                                                 period.


3. Assets and Liabilities Measured at Fair Value

□ Applicable √ Not applicable

4. Main Overseas Assets

□ Applicable √ Not applicable


V. Analysis of Core Competence

Main business of the Company includes development and operation of specialized electronics market and
supporting projects, property lease service, IT product channel retail terminal service, e-commerce and
value-added small loan service.

By December 31, 2014, the Company has set up 25 entity-based SEG electronics markets (SEG Digital Squares)
in China, which forms a nationwide specialized electronics market chain covering Pearl River Delta and Yangtze
River Delta. Through 26 years of effort, SEG Electronics Market has successfully combined IT complex
self-construction, leasing and trusted management, combined market service and value-added financial service,
and combined professional market, SEG factory store and distribution channels. SEG Electronics Market stand


                                                         21
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out as the largest specialized electronics markets in China and even in Asia covering electronic components, IT
products, and communications products and has great brand influence both at home and abroad.

In the reporting period, Shenzhen SEG Electronics Market is awarded again the title of Top 10 Flagship Market of
China's Professional Electronics Market in the 14th Annual Meeting of China's Professional Electronics Market
which is hosted by China Electronics Chamber of Commerce. Meanwhile, Liu Zhijun, the general manager of the
Company, is awarded the title of "Operation Master of China's Professional Electronics Market in 2013".


VI. Analysis of Investment

1. Foreign equity investment

(1) Forest investment

√ Applicable □ Not applicable
                                             Investment of the Company
 Investment in the reporting period
                                           Investment of last year (Yuan)             Increase/Decrease (%)
              (Yuan)
                      218,410,000.00                           157,316,000.00                               38.84%
                                      Information about the invested companies
                                                                                Equity proportion of listed company
           Company name                             Main business
                                                                                     in invested company (%)
                                        Development and operation of real
Nantong SEG Times Square                estate, lease and sales of self-owned
                                                                                                           100.00%
Development Co., Ltd.                   house, property management, and
                                        sales of electronic products
Suzhou SEG Digital Life Plaza           Operation and management of
                                                                                                           100.00%
Management Co., Ltd.                    e-market
                                        Development and operation of real
Yantai SEG Times Square                 estate, lease and sales of self-owned
                                                                                                            90.00%
Development Co., Ltd.                   house, property management, and
                                        sales of electronic products
                                        Development and operation of real
Xi'an Fengdong New Town SEG             estate, lease and sales of self-owned
                                                                                                           100.00%
Times Square Properties Co., Ltd.       house, property management, and
                                        sales of electronic products
Zhengzhou SEG Digital Plaza             Operation and management of
                                                                                                            51.00%
Management Co., Ltd.                    e-market
Nantong SEG Commercial Operation
                                 Property management                                                       100.00%
Management Co., Ltd.

(2) Equity of the financing enterprises held by the company

□ Applicable √ Not applicable

The company does not hold stock equities in financial enterprises during the reporting period.

(3) Securities investment

√ Applicable □ Not applicable


                                                          22
                                                                                              Full text of 2014 Annual Report of Shenzhen SEG Co., Ltd.


                        Securities          Initial      Shares held      Initial      Shares held Share-holding                            Gains and losses in                     Source
Securities Securities                                                                                                                                                Accounting
                           short     investment cost      at period    shareholding     at period       proportion     Ending book value       the reporting                            of
  type       code                                                                                                                                                       item
                           form           (Yuan)          beginning     proportion           end           (%)                                       period                         shares

                                                                                                                                                                     Financial
                        Youhao                                                                                                                                       assets         Initial
Stock      600778                           90,405.00         60,683         0.04%           60,683          0.04%             554,642.62                     0.00
                        Group                                                                                                                                        available      share
                                                                                                                                                                     for sale

                                                                                                                                                                     Long-term
                        Huakong                                                                                                                                                     Initial
Stock      000068                    279,307,046.38 201,345,033            22.45% 201,345,033               22.45%      78,523,408.83 -24,324,899.21 equity
                        SEG                                                                                                                                                         share
                                                                                                                                                                     investment


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Total                                279,397,451.38 201,405,716             --        201,405,716           --                                                            --            --



   (4) Equity of other listed companies held by the Company

   □ Applicable √ Not applicable

   The company does not hold stock equities of other listed enterprises during the reporting period.

   2. Entrusted financing, derivatives investment, and entrusted loan

   (1) Entrusted financing

   √ Applicable □ Not applicable

                                                                                                                                        Unit: RMB ten thousand Yuan

                                                                                                                                           Principal
                                                                                                                                                                          Actual loss
                                                                                                                                            amount
                                       Connected                             Amount of                                   Remuneration                                      and gain
                        Associated                                                                                                       returned in      Projected
   Name of trustee                     transaction        Product Type           entrusted Start Date     End Date       confirmation                                     amount in
                        relationship                                                                                                          the         income
                                         or not                                  financing                                 method                                       the reporting
                                                                                                                                           reporting
                                                                                                                                                                               period
                                                                                                                                            period

                                                                                             August      January 10,
   Bank of China        None           No             AMZYJZT-LP13159        600                                       Floating income              600        10.95              10.95
                                                                                             27, 2013    2014

                        None                                                                 November January 16,
   Bank of China                       No             AMZYJF                 4,000                                     Floating income         4,000           39.45              39.45
                                                                                             5, 2013     2014

   The Agricultural None                                                                     December January 24,
                                       No             FP7215663600           800                                       Constant return              800          4.21               4.21
   Bank of China                                                                             24, 2013    2014

                        None                                                                 July 26,    January 27, Floating income
   Bank of China                       No             AMZYPW (185 days) 1,300                                                                  1,300           32.95              32.95
                                                                                             2013        2014

   Industrial and       None                                                                                           Floating income
                                                                                             October     January 28,
   Commercial                          No             QER13112               300                                                                    300          4.23               4.23
                                                                                             17, 2013    2014
   Bank of China

                        None                                                                 January     January 31, Floating income
   Bank of China                       No             Ji Fu Zhuan Xiang      1,500                                                             1,500             70.5               70.5
                                                                                             31, 2013    2014

                        None                                                                 November February 7, Floating income
   Bank of China                       No             AMZYJZT-LP13229        5,000                                                             5,000           66.45              66.45
                                                                                             1, 2013     2014

                        None                                                                 November February 7, Floating income
   Bank of China                       No             AMZYJZT-LP13242        7,000                                                             7,000           82.96              82.96
                                                                                             15, 2013    2014

   China                None                                                                 December February         Floating income
                                       No             51385                  100                                                                    100          0.74               0.74
   Merchants Bank                                                                            27, 2013    10, 2014



                                                                                             23
                                                                             Full text of 2014 Annual Report of Shenzhen SEG Co., Ltd.


                                                                                                                       Principal
                                                                                                                                                   Actual loss
                                                                                                                       amount
                                 Connected                       Amount of                           Remuneration                                   and gain
                  Associated                                                                                          returned in    Projected
Name of trustee                  transaction      Product Type   entrusted Start Date    End Date    confirmation                                  amount in
                  relationship                                                                                           the         income
                                   or not                        financing                              method                                    the reporting
                                                                                                                      reporting
                                                                                                                                                     period
                                                                                                                        period

Industrial and    None                                                                              Floating income
                                                                             December February
Commercial                       No            3059BBX           2,000                                                     2,000           19.4           19.4
                                                                             20, 2013   17, 2014
Bank of China

                  None                                                       October    February
Bank of China                    No            AMZYJZT-LP13224   8,000                              Floating income        8,000         134.1           134.1
                                                                             24, 2013   21, 2014

                  None                                                       March 15, March 14,
Bank of China                    No            AMZYPW            1,500                              Floating income        1,500         65.82           65.82
                                                                             2013       2014

                  None                                                       December March 20,
Bank of China                    No            AMZYJF            1,000                              Floating income        1,000         13.19           13.19
                                                                             24, 2013   2014

                  None                                                       November May 15,
Bank of China                    No            AMZYZH14164       400                                Floating income            400       10.24           10.24
                                                                             18, 2013   2014

                  None                                                       October    June 29,
Bank of China                    No            AMZYZH14129       1,000                              Floating income        1,000         36.33           36.33
                                                                             17, 2013   2014

                  None                                                       November July 8,
Bank of China                    No            AMZYJF            1,000                              Floating income         1000         36.92           36.92
                                                                             5, 2013    2014

                  None                                                       November January 15,
Ping An Bank                     No            AGS131754-001     3,000                              Floating income        3,000           17.9           17.9
                                                                             15, 2013   2014

Industrial and    None
                                                                             June 11,   December
Commercial                       No            1001RSYH          30                                 Floating income            30          0.28           0.28
                                                                             2014       31, 2014
Bank of China

Industrial and    None
                                                                             June 11,   December
Commercial                       No            1001RSYH          30                                 Floating income            30          0.38           0.38
                                                                             2014       31, 2014
Bank of China

Industrial and    None
                                                                             June 11,   December
Commercial                       No            1001RSYH          30                                 Floating income            30          0.38           0.38
                                                                             2014       31, 2014
Bank of China

Industrial and    None
                                                                             June 11,   December
Commercial                       No            1001RSYH          30                                 Floating income            30          0.52           0.52
                                                                             2014       31, 2014
Bank of China

Industrial and    None
                                                                             June 11,   December
Commercial                       No            1001RSYH          30                                 Floating income            30          0.52           0.52
                                                                             2014       31, 2014
Bank of China

Industrial and    None
                                                                             June 11,   December
Commercial                       No            1001RSYH          30                                 Floating income            30          0.52           0.52
                                                                             2014       31, 2014
Bank of China

Industrial and    None
                                                                             June 11,   December
Commercial                       No            1001RSYH          30                                 Floating income            30          0.52           0.52
                                                                             2014       31, 2014
Bank of China

Industrial and    None
                                                                             January 2, March 24,
Commercial                       No            3059BBX           1,500                              Floating income        1,500         20.21           20.21
                                                                             2014       2014
Bank of China

Industrial and    None
                                                                             March 5,   May 19,
Commercial                       No            3059BBX           2,000                              Floating income        2,000         23.32           23.32
                                                                             2014       2014
Bank of China




                                                                             24
                                                                                     Full text of 2014 Annual Report of Shenzhen SEG Co., Ltd.


                                                                                                                                Principal
                                                                                                                                                             Actual loss
                                                                                                                                amount
                                 Connected                              Amount of                             Remuneration                                    and gain
                  Associated                                                                                                   returned in    Projected
Name of trustee                  transaction       Product Type         entrusted Start Date    End Date      confirmation                                   amount in
                  relationship                                                                                                    the         income
                                   or not                               financing                                method                                     the reporting
                                                                                                                               reporting
                                                                                                                                                               period
                                                                                                                                 period

Industrial and    None
                                                                                    May 28,    December
Commercial                       No            3059BBX                  3,000                                Floating income         3000              87               87
                                                                                    2014       10, 2014
Bank of China

Industrial and    None
                                                                                    June 11,   December
Commercial                       No            3059BBX                  5,000                                Floating income        5,000        140.84           140.84
                                                                                    2014       22, 2014
Bank of China

Industrial and    None
                                                                                    January    April 3,
Commercial                       No            QER14006                 800.00                               Floating income       800.00           8.77            8.77
                                                                                    24, 2014   2014
Bank of China

Industrial and    None
                                               Ji Fu Zhuan Xiang                    January    December
Commercial                       No                                     1,300                                Floating income        1,300         69.82            69.82
                                               (364 days) 2014041                   27, 2014   31, 2014
Bank of China

Industrial and    None
                                                                                    January    March 6,
Commercial                       No            QER14009 (36 days) 2,000                                      Floating income        2,000         11.24            11.24
                                                                                    29, 2014   2014
Bank of China

Industrial and    None
                                                                                    March 12, September
Commercial                       No            4009ZSTC                 2,000                                Floating income        2,000         60.59            60.59
                                                                                    2014       22, 2014
Bank of China

                  None                                                              March 20, March 16,
Bank of China                    No            AMZYPW                   1,500                                Floating income                      83.08
                                                                                    2014       2015

Industrial and    None
                                                                                    April 8,   May 27,
Commercial                       No            4003ZSTA                 1,200                                Floating income        1,200           8.22            8.22
                                                                                    2014       2014
Bank of China

Industrial and    None                         Financial products for
                                                                                    May 30,    June 12,
Commercial                       No            corporate customers      1,200                                Floating income        1,200           1.52            1.52
                                                                                    2014       2014
Bank of China                                  (14 days)

                  None                                                              July 1,    June 29,
Bank of China                    No            AMZYPW                   1,100                                Floating income                      57.43
                                                                                    2014       2015

                  None                                                              January    June 30,
Bank of China                    No            AMZYJF                   600                                  Floating income            600         14.8            14.8
                                                                                    23, 2014   2014

                  None                                                              May 20,    October 10,
Bank of China                    No            AMZYJZT                  400                                  Floating income            400         7.52            7.52
                                                                                    2014       2014

                  None                                                              February   February
Bank of China                    No            YUANAQKF                 1,000                                Floating income        1,000           0.91            0.91
                                                                                    19, 2014   28, 2014

Industrial and    None
                                                                                    June 24,   December
Commercial                       No            ZQL180                   78                                   Floating income         77.9           2.07            2.07
                                                                                    2014       24, 2014
Bank of China

Industrial and    None
                                                                                    March 17, April 28,
Commercial                       No            3059BBX                  500                                  Floating income            500         2.24            2.24
                                                                                    2014       2014
Bank of China

Industrial and    None
                                                                                    May 6,     June 16,
Commercial                       No            FP7218438200             500                                  Floating income            500         2.07            2.07
                                                                                    2014       2014
Bank of China

Industrial and    None                                                              June 25,   August 4,
                                 No            4024BBXA                 500                                  Floating income            500         1.97            1.97
Commercial                                                                          2014       2014


                                                                                    25
                                                                                Full text of 2014 Annual Report of Shenzhen SEG Co., Ltd.


                                                                                                                           Principal
                                                                                                                                                       Actual loss
                                                                                                                           amount
                                 Connected                          Amount of                            Remuneration                                   and gain
                  Associated                                                                                              returned in    Projected
Name of trustee                  transaction       Product Type     entrusted Start Date     End Date    confirmation                                  amount in
                  relationship                                                                                               the         income
                                   or not                           financing                               method                                    the reporting
                                                                                                                          reporting
                                                                                                                                                         period
                                                                                                                            period
Bank of China

China             None
                                               QianYuan financial               May 16,     June 20,
Construction                     No                                 120                                 Floating income            120         0.48           0.48
                                               products                         2014        2014
Bank

China             None                                                          January     March 11,
                                 No            LJSY54031            590                                 Floating income            590         5.14           5.14
Merchants Bank                                                                  10, 2014    2014

China             None                                                          February    April 15,
                                 No            LJSY51392            100                                 Floating income            100         0.82           0.82
Merchants Bank                                                                  14, 2014    2014

                  None                                                                                  Guaranteed
China                                                                           March 13, June 17,
                                 No            52072                80                                  minimum                    80          1.12           1.12
Merchants Bank                                                                  2014        2014
                                                                                                        income

                  None                                                                                  Guaranteed
China                                                                           March 27, June 23,
                                 No            52078                1,000                               minimum                1,000           11.3           11.3
Merchants Bank                                                                  2014        2014
                                                                                                        income

                  None                                                                                  Guaranteed
China                                                                           April 17,   July 2,
                                 No            52093                350                                 minimum                    350         3.43           3.43
Merchants Bank                                                                  2014        2014
                                                                                                        income

China             None
                                               QianYuan financial               March 11, May 12,
Construction                     No                                 100                                 Floating income            100         0.82           0.82
                                               products                         2014        2014
Bank

                  None                                                          March 7,    May 6,
Bank of China                    No            AMZYPWHQ             500                                 Floating income            500         4.23           4.23
                                                                                2014        2014

                  None                                                          May 9,      September
Bank of China                    No            AMZYJZT-LPA14126 500                                     Floating income            500         7.31           7.31
                                                                                2014        2, 2014

                  None                                                          June 6,     August 8,
Bank of China                    No            AMZYJZT-LPA14165 1,200                                   Floating income         1200           9.94           9.94
                                                                                2014        2014

                  None                                                          June 13,    July 15,
Bank of China                    No            AMZYJZT-LPA14173 100                                     Floating income            100          0.4               0.4
                                                                                2014        2014

                  None                                                          April 11,   July 4,
Bank of China                    No            AMZYPWHQ             500                                 Floating income            500         5.75           5.75
                                                                                2014        2014

                  None                                                          June 9,     September
Bank of China                    No            AMZYPWHQ             300                                 Floating income            300          3.7               3.7
                                                                                2014        9, 2014

                  None                                                          June 27,    September
Bank of China                    No            AMZYPWHQ             300                                 Floating income            300         3.69           3.69
                                                                                2014        23, 2014

                  None                                                          March 11, April 10,
Bank of China                    No            YUANAQKF             100                                 Floating income            100         0.28           0.28
                                                                                2014        2014

                  None                                                          January     March 10,
Bank of China                    No            AMZYPWHQ             1,800                               Floating income        1,800         14.64           14.64
                                                                                13, 2014    2014

                  None                                                          January     March 20,
Bank of China                    No            AMZYPWHQ             4,000                               Floating income        4,000         34.27           34.27
                                                                                20, 2014    2014

                  None                                                          January     March 20,
Bank of China                    No            AMZYPWHQ             2,000                               Floating income        2,000         16.26           16.26
                                                                                23, 2014    2014

                  None                                                          January     March 3,
Bank of China                    No            AMZYPWHQ             1,000                               Floating income        1,000           5.03           5.03
                                                                                27, 2014    2014


                                                                                26
                                                                              Full text of 2014 Annual Report of Shenzhen SEG Co., Ltd.


                                                                                                                        Principal
                                                                                                                                                    Actual loss
                                                                                                                        amount
                                 Connected                       Amount of                            Remuneration                                   and gain
                  Associated                                                                                           returned in    Projected
Name of trustee                  transaction      Product Type   entrusted Start Date     End Date    confirmation                                  amount in
                  relationship                                                                                            the         income
                                   or not                        financing                               method                                    the reporting
                                                                                                                       reporting
                                                                                                                                                      period
                                                                                                                         period

                  None                                                       February    March 24,
Bank of China                    No            AMZYPWHQ          12,000                              Floating income       12,000         57.53           57.53
                                                                             17, 2014    2014

                  None                                                       February    April 4,
Bank of China                    No            AMZYPWHQ          8,000                               Floating income        8,000         43.31           43.31
                                                                             25, 2014    2014

                  None                                                       March 25, April 15,
Bank of China                    No            YUANAQKF          12,000                              Floating income       12,000           23.2           23.2
                                                                             2014        2014

                  None                                                       April 3,    April 30,
Bank of China                    No            YUANAQKF          6,000                               Floating income        6,000         17.04           17.04
                                                                             2014        2014

                  None                                                       April 4,    April 21,
Bank of China                    No            GSRJYL01          4,500                               Floating income        4,500           5.87           5.87
                                                                             2014        2014

                  None                                                       April 4,    April 25,
Bank of China                    No            GSRJYL01          1,500                               Floating income        1,500           2.42           2.42
                                                                             2014        2014

                  None                                                       April 4,    May 5,
Bank of China                    No            GSRJYL01          8,000                               Floating income        8,000         18.41           18.41
                                                                             2014        2014

                  None                                                       April 16,   April 30,
Bank of China                    No            YUANAQKF          12,000                              Floating income       12,000         13.62           13.62
                                                                             2014        2014

                  None                                                       April 30,   May 5,
Bank of China                    No            GSRJYL01          13,500                              Floating income       13,500           5.18           5.18
                                                                             2014        2014

                  None                                                       May 5,      June 10,
Bank of China                    No            AMZYJZT           21,000                              Floating income       21,000         86.59           86.59
                                                                             2014        2014

                  None                                                       May 21,     June 30,
Bank of China                    No            GSRJYL01          16,800                              Floating income       16,800         50.26           50.26
                                                                             2014        2014

                  None                                                       May 23,     June 30,
Bank of China                    No            GSRJYL01          2,800                               Floating income        2,800           8.16           8.16
                                                                             2014        2014

Bank of           None                                                       May 26,     June 9,
                                 No            FP7215513700      500                                 Floating income            500         0.48           0.48
Communications                                                               2014        2014

Bank of           None                                                       May 26,     November
                                 No            FP7215513700      2,000                               Floating income       1622.1         53.72           53.72
Communications                                                               2014        17, 2014

Shanghai          None
Pudong                                                                       June 12,    July 17,
                                 No            14HH111           8,000                               Floating income         8000         42.96           42.96
Development                                                                  2014        2014
Bank

                  None                                                       June 12,    June 30,
Bank of China                    No            GSRJYL01          6,500                               Floating income        6,500         23.93           23.93
                                                                             2014        2014

                  None                                                       June 12,    December
Bank of Beijing                  No            GUB1408003        13,000                              Floating income       13000         338.93          338.93
                                                                             2014        12, 2014

The Agricultural None                                                        June 13,    June 30,
                                 No            BFDG              5,000                               Floating income        5,000         11.18           11.18
Bank of China                                                                2014        2014

The Agricultural None                                                        June 18,    June 30,
                                 No            BFDG              3,100                               Floating income        3,100           4.89           4.89
Bank of China                                                                2014        2014

                  None                                                       June 25,    June 30,
Bank of China                    No            GSRJYL01          2,400                               Floating income        2,400           0.92           0.92
                                                                             2014        2014

Bank of China     None           No            AMZYJZT           750         August      November Floating income               750         8.58           8.58



                                                                             27
                                                                               Full text of 2014 Annual Report of Shenzhen SEG Co., Ltd.


                                                                                                                         Principal
                                                                                                                                                     Actual loss
                                                                                                                         amount
                                 Connected                        Amount of                            Remuneration                                   and gain
                  Associated                                                                                            returned in    Projected
Name of trustee                  transaction       Product Type   entrusted Start Date    End Date     confirmation                                  amount in
                  relationship                                                                                             the         income
                                   or not                         financing                               method                                    the reporting
                                                                                                                        reporting
                                                                                                                                                       period
                                                                                                                          period
                                                                              12, 2014   7, 2014

                  None                         Feifan asset                   August     February
Minsheng Bank                    No                               300                                 Floating income                        7.83
                                               management                     25, 2014   26, 2015

Industrial and    None
                                                                              July 17,   December
Commercial                       No            ZXFG               8,000                               Floating income        8,000        178.82          178.82
                                                                              2014       10, 2014
Bank of China

The Agricultural None                                                         July 14,   September
                                 No            Beilifeng          850                                 Floating income            850         7.09           7.09
Bank of China                                                                 2014       22, 2014

China             None                                                        July 11,   September
                                 No            52086              500                                 Floating income            500         5.24           5.24
Merchants Bank                                                                2014       29, 2014

China             None
                                                                              July 23,   August 29,
Construction                     No            ZH0102             80                                  Floating income            80          0.33           0.33
                                                                              2014       2014
Bank

Industrial and    None
                                                                              August     September
Commercial                       No            Li Cai Gong Ying   400                                 Floating income            400         1.58           1.58
                                                                              20, 2014   28, 2014
Bank of China

                  None                                                        July 1     July 12,
Bank of China                    No            GSRJYL01           28,500                              Floating income       28,500         24.05           24.05
                                                                              2014       2014

Shanghai          None
Pudong                                                                        July 8,    August 7,
                                 No            Cai Fu Ban Che     3,000                               Floating income        3,000           13.8           13.8
Development                                                                   2014       2014
Bank

Shanghai          None
Pudong                                                                        July 9,    August 8,
                                 No            Cai Fu Ban Che     18,000                              Floating income       18,000         82.85           82.85
Development                                                                   2014       2014
Bank

                  None                                                        July 11,   August 12,
Bank of China                    No            AMZYJZT            10,800                              Floating income       10,800         42.61           42.61
                                                                              2014       2014

                  None                                                        July 21,   August 6,
Bank of China                    No            GSRJYL01           1,100                               Float ingincome        1,100           1.35           1.35
                                                                              2014       2014

Shanghai          None
Pudong                                                                        August     September
                                 No            Cai Fu Ban Che     18,000                              Floating income       18,000         82.85           82.85
Development                                                                   14, 2014   13, 2014
Bank

                  None                                                        August     August 27,
Bank of China                    No            GSRJYL01           9,000                               Floating income        9,000         10.36           10.36
                                                                              22, 2014   2014

                  None                                                        August     October 8,
Industrial Bank                  No            Jin Xue Qiu        5,000                               Floating income        5,000         30.89           30.89
                                                                              28, 2014   2014

                  None                                                        July 14,   July 13,
Bank of China                    No            AMZYZH             1,000                               Floating income                      52.85
                                                                              2014       2014

                  None                         Feifan asset                   August 8, November
Minsheng Bank                    No                               700                                 Floating income            700         9.19           9.19
                                               management                     2014       10, 2014

                  None                                                        July 4,    January 9,
Bank of China                    No            AMZYJZT            600                                 Floating income                      15.53
                                                                              2014       2015



                                                                              28
                                                                              Full text of 2014 Annual Report of Shenzhen SEG Co., Ltd.


                                                                                                                         Principal
                                                                                                                                                    Actual loss
                                                                                                                         amount
                                 Connected                        Amount of                            Remuneration                                  and gain
                  Associated                                                                                            returned in   Projected
Name of trustee                  transaction       Product Type   entrusted Start Date    End Date     confirmation                                 amount in
                  relationship                                                                                             the        income
                                   or not                         financing                               method                                   the reporting
                                                                                                                        reporting
                                                                                                                                                      period
                                                                                                                          period

Shanghai          None
Pudong                                                                        September October 18,
                                 No            Cai Fu Ban Che     13,000                              Floating income       13,000        63.82           63.82
Development                                                                   18, 2014   2014
Bank

Shanghai          None
Pudong                                                                        September October 23,
                                 No            Li Duo Duo         5,000                               Floating income        5,000        23.01           23.01
Development                                                                   23, 2014   2014
Bank

China Citic       None                         Xincheng Cash                  September December
                                 No                               3,000                               Floating income        3,000        36.69           36.69
Bank                                           Management                     26, 2014   9, 2014

                  None                                                        September November
Bank of China                    No            GSRJYL01           1,000                               Floating income        1,000          3.38           3.38
                                                                              30, 2014   13, 2014

Shanghai          None
Pudong                                                                        October    November
                                 No            Li Duo Duo         1,000                               Floating income        1,000          4.76           4.76
Development                                                                   17, 2014   16, 2014
Bank

Shanghai          None
Pudong                                                                        October    November
                                 No            Li Duo Duo         13,000                              Floating income       13,000        62.11           62.11
Development                                                                   23, 2014   22, 2014
Bank

Shanghai          None
Pudong                                                                        November December
                                 No            Li Duo Duo         10,900                              Floating income       10,900        50.45           50.45
Development                                                                   28, 2014   28, 2014
Bank

                  None                                                                   Rolling
                                                                                         type
China Citic                                    Xincheng Cash                  December
                                 No                               3,000                  product, no Floating income
Bank                                           Management                     22, 2014
                                                                                         fixed end
                                                                                         date

Shanghai          None
Pudong                                                                        December January 22,
                                 No            Li Duo Duo         6,400                               Floating income                     29.46
Development                                                                   23, 2014   2015
Bank

                  None                                                        December February 5,
Bank of China                    No            AMZYZH             500                                 Floating income                       2.84
                                                                              30, 2014   2015

                  None                                                                   Rolling
Shanghai                                                                                 type
Pudong                                                                        December product,
                                 No            Li Duo Duo         3,000                               Floating income
Development                                                                   30, 2014   without
Bank                                                                                     fixed end
                                                                                         date

Shanghai          None
Pudong                                                                        December January 29,
                                 No            Li Duo Duo         5,800                               Floating income                       26.7
Development                                                                   30, 2014   2015
Bank

Bank of China     None           No            AMZYZH             2,000       September September Floating income                        107.59



                                                                              29
                                                                                Full text of 2014 Annual Report of Shenzhen SEG Co., Ltd.


                                                                                                                            Principal
                                                                                                                                                        Actual loss
                                                                                                                            amount
                                 Connected                          Amount of                             Remuneration                                   and gain
                  Associated                                                                                               returned in    Projected
Name of trustee                  transaction         Product Type   entrusted Start Date    End Date      confirmation                                  amount in
                  relationship                                                                                                the         income
                                   or not                           financing                                method                                    the reporting
                                                                                                                           reporting
                                                                                                                                                          period
                                                                                                                             period
                                                                                29, 2015   21, 2015

Industrial and    None
                                                                                December February
Commercial                       No            ZXFG                 500                                  Floating income                        3.53
                                                                                15, 2014   12, 2015
Bank of China

                  None                                                          October    November
Bank of China                    No            AMZYZH               1,400                                Floating income        1,400           6.04           6.04
                                                                                11, 2014   17, 2014

                  None                                                          November December
Bank of China                    No            AMZYZH               1,400                                Floating income        1,400           5.37           5.37
                                                                                20, 2014   25, 2014

Industrial and    None
                                                                                December December
Commercial                       No            1001RSYH             30                                   Floating income            30          0.05           0.05
                                                                                6, 2014    29, 2014
Bank of China

Industrial and    None
                                                                                December December
Commercial                       No            1001RSYH             30                                   Floating income            30          0.05           0.05
                                                                                6, 2014    29, 2014
Bank of China

Industrial and    None
                                                                                December December
Commercial                       No            1001RSYH             30                                   Floating income            30          0.05           0.05
                                                                                6, 2014    29, 2014
Bank of China

Industrial and    None
                                                                                December December
Commercial                       No            1001RSYH             30                                   Floating income            30          0.05           0.05
                                                                                6, 2014    29, 2014
Bank of China

Industrial and    None
                                                                                October    November
Commercial                       No            3059BBX              390                                  Floating income            390         1.58           1.58
                                                                                15, 2014   24, 2014
Bank of China

Industrial and    None
                                                                                December January 8,
Commercial                       No            ZXFG                 240                                  Floating income                        0.83
                                                                                5, 2014    2015
Bank of China

The Agricultural None                                                           September November
                                 No            Beilifeng            1,000                                Floating income        1,000           4.08           4.08
Bank of China                                                                   29, 2014   30, 2014

China             None                                                          October    October 27,
                                 No            Periodic financing   485                                  Floating income            485         0.47           0.47
Merchants Bank                                                                  20, 2014   2014

China             None                                                          October    October 29,
                                 No            Periodic financing   15                                   Floating income            15          0.02           0.02
Merchants Bank                                                                  20, 2014   2014

                  None                                                          November December
Ping An Bank                     No            TTL                  1,700                                Floating income        1,700           2.68           2.68
                                                                                26, 2014   20, 2014

                  None                                                                     Rolling
                                                                                           type
                                                                                December product,
Ping An Bank                     No            TTL                  3,300                                Floating income
                                                                                31, 2014   without
                                                                                           fixed end
                                                                                           date

                  None                                                          November February
Bank of China                    No            AMZYJZT              500                                  Floating income                        6.31
                                                                                11, 2014   17, 2015

                  None                                                          December March 24,
Bank of China                    No            AMZYJZT              300                                  Floating income                        3.81
                                                                                23, 2014   2015

Minsheng Bank None               No            Feifan asset         300         August     February      Floating income                        7.83


                                                                                30
                                                                                    Full text of 2014 Annual Report of Shenzhen SEG Co., Ltd.


                                                                                                                                      Principal
                                                                                                                                                                         Actual loss
                                                                                                                                      amount
                                  Connected                            Amount of                                     Remuneration                                         and gain
                    Associated                                                                                                       returned in         Projected
Name of trustee                   transaction       Product Type        entrusted Start Date      End Date           confirmation                                        amount in
                   relationship                                                                                                            the            income
                                    or not                              financing                                      method                                           the reporting
                                                                                                                                     reporting
                                                                                                                                                                           period
                                                                                                                                       period
                                                management                          25, 2014     26, 2015

The Agricultural None                                                               October      December
                                  No            Beilifeng              900                                      Floating income                  900             6.04           6.04
Bank of China                                                                       14, 2014     10, 2014

China              None                                                             October      January 19,
                                  No            52086                  500                                      Floating income                                  6.29
Merchants Bank                                                                      16, 2014     2015

Industrial and     None
                                                                                    December February 2,
Commercial                        No            Structured Deposit     650                                      Floating income                                  2.11
                                                                                    31, 2014     2015
Bank of China

                   None                                                             October      April 13,
Bank of China                     No            Zhi Hui                400                                      Floating income                                    10
                                                                                    16, 2014     2015

Total                                                                  426,407.90 --             --             --                  394,140.00             3,244.09          2820.07


(2) Investment of derivatives

□ Applicable √ Not applicable

Derivatives investment does not exist during the reporting period.

(3) Entrusted loaning

□ Applicable √ Not applicable

Entrusted loaning does not exist during the reporting period.

3. Use of the raised capital

□ Applicable √ Not applicable

4. Analysis of the main subsidiaries and shareholding companies

√ Applicable □ Not applicable

List of major subsidiaries and shareholding companies

                                                                                                                                                                 Unit: YUAN

  Company         Ownership                        Major products      Registered                                               Operating          Operating
                                   Industry                                              Total assets        Net assets                                                 Net profit
    name             type                            or services         capital                                                 revenue                profit

                                                  Operation and
                                                  management of
                              Electronics
Wujiang SEG Subsidiary                            professional       3,000,000.00      21,056,573.04        4,012,953.08 14,370,125.01             1,602,009.97          906,209.09
                              market
                                                  electronics
                                                  market

                                                  Operation and
                                                  management of
                              Electronics
Wuxi SEG         Subsidiary                       professional       3,000,000.00      15,435,488.57        2,691,012.81        5,185,587.88           -143,338.73      -149,430.59
                              market
                                                  electronics
                                                  market

Nantong SEG Subsidiary        Development Development                30,000,000.00 305,158,345.89 27,389,736.86                                        -495,673.54          2,855.92


                                                                                    31
                                                                              Full text of 2014 Annual Report of Shenzhen SEG Co., Ltd.


  Company      Ownership                     Major products     Registered                                       Operating      Operating
                              Industry                                             Total assets   Net assets                                   Net profit
    name          type                         or services        capital                                         revenue         profit
                           and operation and operation of
                           of real estate   real estate

                           Development Development
Yantai SEG    Subsidiary   and operation and operation of 45,000,000.00                  432.18        432.18                        432.18         432.18
                           of real estate   real estate

                                            Operation and
                                            management of
                           Electronics
Nanning SEG Subsidiary                      professional      8,000,000.00     13,192,637.98      7,786,154.93 10,572,085.86     698,050.19     769,306.36
                           market
                                            electronics
                                            market

                                            Operation and
                                            management of
                           Electronics
Shunde SEG Subsidiary                       professional      6,000,000.00         5,920,582.08   3,115,306.41   2,331,170.63     -46,860.95     68,400.49
                           market
                                            electronics
                                            market

SEG
              Subsidiary   E-commerce       E-commerce        48,000,000.00 401,004,927.54        7,863,098.04 49,887,932.86     978,998.25    1,542,584.03
E-Commerce

SEG Credit    Subsidiary   Finance          Micro-credit      150,000,000.00 495,626,540.05 181,744,351.97 62,998,793.90 39,654,505.94 29,712,107.16

                                            Property
                           Property         operation and
SEG Baohua Subsidiary                                         30,808,800.00 141,198,909.33 96,342,425.66 81,708,199.76 33,081,617.13 24,911,642.59
                           management       management and
                                            hotel business

                                            Channel retail
                                            terminal of
                           Electronic
                                            electronic
                           product
SEG Industry Subsidiary                     products and      25,500,000.00    84,386,518.70 31,748,178.04 232,728,130.64       3,351,934.24   3,285,760.88
                           channel
                                            property
                           business
                                            operation and
                                            management

                                            Operation and
                                            management of
                           Electronics
Xi'an SEG     Subsidiary                    professional      3,000,000.00     46,151,216.96 15,834,397.85 36,921,012.56 10,860,224.21 10,352,288.78
                           market
                                            electronics
                                            market

                                            Operation and
                                            management of
Longgang                   Electronics
              Subsidiary                    professional      3,000,000.00     20,914,312.50      7,614,283.11 10,834,930.38    2,679,272.00   2,016,637.36
SEG                        market
                                            electronics
                                            market

                                            Operation and
                                            management of
                           Electronics
Suzhou SEG Subsidiary                       professional      3,000,000.00     39,411,552.58      8,170,852.49 40,775,694.55    5,420,471.59   3,225,653.77
                           market
                                            electronics
                                            market

                                            Operation and
                                            management of
Changsha                   Electronics
              Subsidiary                    professional      35,000,000.00    75,884,353.79 58,407,317.29 21,651,924.25        5,233,242.10   3,807,186.43
SEG                        market
                                            electronics
                                            market

Xi'an                      Electronics      Operation and
              Subsidiary                                      3,000,000.00     25,207,092.62      3,670,424.17 17,487,598.50    1,655,987.42   1,634,038.45
Hairong SEG                market           management of

                                                                              32
                                                                                 Full text of 2014 Annual Report of Shenzhen SEG Co., Ltd.


  Company      Ownership                       Major products      Registered                                       Operating       Operating
                                Industry                                              Total assets   Net assets                                       Net profit
    name          type                           or services         capital                                         revenue          profit
                                              professional
                                              electronics
                                              market

                                              Operation and
                                              management of
                             Electronics
Nanjing SEG Subsidiary                        professional       20,000,000.00    28,183,951.14 11,858,971.83 40,176,866.63         1,498,117.13      2,022,297.60
                             market
                                              electronics
                                              market

                                              Operation and
                                              management of
Suzhou SEG                   Electronics
              Subsidiary                      professional       8,000,000.00     17,013,807.05      1,453,289.57    991,850.82 -6,546,710.43 -6,546,710.43
Digital                      market
                                              electronics
                                              market

Xi'an                        Development Development
Fengdong      Subsidiary     and operation and operation of 30,000,000.00         60,000,040.00 30,000,000.00               0.00               0.00           0.00
SEG                          of real estate   real estate

Nantong SEG
                             Property         Property
Business      Subsidiary                                         5,000,000.00            18,327.38         -66.84           0.00          -66.84            -66.84
                             management       management
Operation

                                              Manufacturing
                                              and operation of
                             Manufacturing
Huakong       Shareholding                    color picture
                             of electronic                       896,671,464.00 420,734,829.16 116,437,355.90       67,194,613.97 -106,180,314.39 -105,387,168.32
SEG           company                         tube (CPT), CPT
                             components
                                              materials, and
                                              glass apparatus

                                              Operation and
                                              management of
Shanghai      Shareholding Electronics
                                              professional       5,000,000.00     30,688,607.79 10,293,666.63 21,463,752.09          791,610.45        898,454.72
SEG           company        market
                                              electronics
                                              market

                                               Production and
SEG           Shareholding Information        operation
                                                                 60,000,000.00 380,296,943.71 179,182,784.99 250,490,854.20 -2,094,956.06             8,090,215.49
Navigations   company        industry         network service
                                              of China GPS


Operation and achievement of major subsidiaries and shareholding companies

1. During the reporting period, the operating revenue of Nanjing SEG decreased by 43.36% from the previous
year, mainly because centralized cashier and unified billing were canceled in the phase-4 market since January 16,
2014, hence the decrease of sales income of 5.5 months compared with the same period of the last year. From
June 27, 2014, the cooperation model of the phase-4 market was changed again. Nanjing SEG and China Telecom
Nanjing branch canceled their agreement and completed the transfer formalities on October 30, 2014. Nanjing
SEG is no longer responsible for the operation of the Tianyi Square.

2. During the reporting period, compared with last year, the operating revenue of Nanning SEG had a 155.30%
increase, mainly because 12 months were counted in 2014 while only three months were counted in 2013 since
Nanning SEG Market opened in September 2013.

3. During the reporting period, the total profit of Suzhou SEG fell by 39.64%, mainly due to the early termination
of Suzhou Metro Boutique Museum and the loss caused by Zhangjiagang Digital Boutique Museum.

                                                                                 33
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4. During the reporting period, the total profit of Xi'an Hairong SEG had a 101.13% increase, compared with the
last year, mainly because the market gradually becomes mature, the rent of some commercial spaces increased,
and the income from financial product investment also increased. Therefore, the total profit of Xi'an Hairong SEG
had a significant increase compared with the last year.

5. During the reporting period, compared with last year, the income of Wujiang SEG had a 35.90% increase and
the total profit had a 96.35% increase, mainly because 4 quarters were counted in 2014 while only three quarters
were counted in 2013 since Wujiang SEG opened in March 2013. The increases of operating revenue and income
from financial products investment also made the total profit significantly increase compared with the last year.

6. During the reporting period, the operating revenue of SEG e-business also had a 634.85% increase over the
previous year, mainly because the new supply chain business entered a stage of stable development and achieved
some success, thereby making the year 2014 achieve profitability with a net profit of 1,543,600 Yuan.

7. During the reporting period, the total profit of SEG Baohua had a 33.47% increase over the previous year,
mainly because the Company cut costs amid the overall poor performance in the Huaqiang North property rental
market in an effort to keep the property occupancy rate and rent level at a high level and meanwhile, the Orange
Hotel achieved growth in business performance.

8. During the reporting period, the operating revenue and total profit of SEG Credit had a 45.25% increase and a
63.95% increase respectively over the last year. This is mainly because, during the reporting period, in addition to
full investment of capital funds, SEG Credit increased loans through bank financing and issuance of short-term
financial instruments, which increased the business scale and significantly improved income and profits.



Information about the acquisition and disposal of subsidiaries in the reporting period

√ Applicable □ Not applicable
                              Purpose of acquisition and          Ways of acquisition and         Impact on the overall
      Company name            disposal of subsidiaries in        disposal of subsidiaries in        production and
                                 the reporting period               the reporting period             performance
                             Focus on major business                                           Increased the net profit by
Yantai SEG Times Square                                      Invested and
                             according to strategies of                                        RMB 400 Yuan during the
Development Co., Ltd.                                        newly-deployed
                             the Company                                                       reporting period.
Nantong SEG Commercial Focus on major business                                                 Reduced the net profit by
                                                             Invested and
Operation Management   according to strategies of                                              RMB 70 Yuan in the
                                                             newly-deployed
Co., Ltd.              the Company                                                             reporting period.
                         Focus on major business                                               Reduced the net profit by
Suzhou SEG Digital Plaza                                     Invested and
                         according to strategies of                                            RMB 6,546,700 Yuan in the
Management Co., Ltd.                                         newly-deployed
                         the Company                                                           reporting period.
Xi'an Fengdong New Town Focus on major business
                                                             Invested and                      No impact on the net profit
SEG Times Square        according to strategies of
                                                             newly-deployed                    during the reporting period.
Properties Co., Ltd.    the Company




5. Major projects invested not by raised capital

√ Applicable □ Not applicable


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                                                                                        Unit: RMB ten thousand Yuan
                                                                    Actual
                           Planned         Amount invested      accumulated
  Project name           investment        during the current amount invested         Progress            Profit
                           amount           reporting period till the end of the
                                                              reporting period
                                                                                                    Net profit
                                                                                                    increased by
Nantong SEG                                                                            Under
                                  62,500              18,041             28,579                     RMB 2900 Yuan
Times Square                                                                        construction
                                                                                                    during the
                                                                                                    reporting period.
                                                                                 Investment funds   Net profit
                                                                                     have been      increased by
Yantai SEG Times
                                  80,100               4,500                   0 recovered during   RMB 400 Yuan
Square
                                                                                   the reporting    during the
                                                                                       period       reporting period.
                                                                                 Investment funds
Xi'an Fengdong
                                                                                     have been
New Town SEG                      60,000               3,000               3,000                  No net profit
                                                                                   recovered in
Time Square
                                                                                   January 2015
       Total                    202,600               25,541             31,579          --                 --


VII. Estimation of the Business Performance from January to March in 2015

Warning of and reasons for forecasts on loss or sharp year-on-year change in the accumulated net profit from the
year beginning to the end of next period

□ Applicable √ Not applicable


VIII. Entities for Special Purpose Controlled by the Company

□ Applicable √ Not applicable


IX. Outlook for future development of the Company

1. Competition situation and development trend

(1) External macro environment

In future, China's macro economy will enter the new normal. Essentially, the economic development will evolve
from the traditional extensive and high-speed growth phase to a high-efficiency, low-cost, medium to high-speed
and sustainable growth phase.

In another aspect, with the booming economic development of Internet, China's total online retail trade accounted
for 7.8% of the total retail sales of social consumer goods in 2013, up from 1.2% in 2008. In the first half in 2014,
online retail market transactions reached about 1.1 trillion Yuan, accounting for 8.4% of the total retail sales of
social consumer goods, with an increase of 33.4% over the same period of last year. China has become the world's
largest online retail market.

(2) Industry situation

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New technologies bring new consumption habits, new business models and new services business. The entity
electronic market based on the traditional business model and service model is in recession in this round of
technological change.

With the development of the Internet in recent years, the rapid development and popularization of mobile Internet
and terminal services have had a profound impact on people's way of thinking, behavior, shopping, consumption
habits, and brought even subversive challenges in certain fields. Meanwhile, with the rapid development of
Internet finance, the acquisition and application of big data, Internet of Things, cloud computing, the oligopoly of
e-business platforms, as well as vertical market segments, have brought various new business models, which
change the consumption habits. Traditional stall-based business model cannot meet the requirements for business
models and channel types of the modern service industry, and falls behind the growing consumption demand. The
entity electronic market based on the traditional business model and service model is in recession in this round of
technological change. The entity electronic markets in tier-1 and tier-2 cities of China have shown a trend of
contraction and recession.

Flourish development of e-business and mobile Internet cause huge impacts on the channels and customer
resources of the entity electronic market, particularly in the following aspects: 1) with the changes in the
consumption habits of consumers, the entity electronic market suffers a serious loss of consumers; 2) with the
change of product channels in the Internet economy, the support of electronic products manufacturers to the entity
electronic market has a large decline.

(3) Analysis of internal business environment

1) Facing enormous challenges in the main business, the Company urgently needs to implement transformation
and upgrading and to seek new strategic business and profit growth opportunities; at the same time, the Company
continues innovation and development, and actively explores new electronic market business models. Seizing the
opportunity of the "SEG Factory Store", the Company actively explores the O2O entry points for electronic
market business and e-business under the Internet business model. From the aspects of e-business platform
construction, wholesale channel expansion, and entity store sales, the Company carries out a cross-border hybrid
business model integrating entity, e-business and channel. The Company also adjusts the market layout. By
introducing a composite business format, the Company improves the market occupancy rates, improves the risk
tolerance capabilities of stores, and ensures market operating revenue.

2) The Company has rich commercial tenant resources and mature market operation management experience. At
present, the Company has formed a professional electronic market chain system nationwide, covering the Pearl
River Delta and Yangtze River Delta areas. After years of efforts, SEG Electronics Market has rich customer
resources and market operation management experience, and enjoys high brand awareness both at home and
abroad.

3) The Company has a reasonable asset structure and strong financing capacity.

2. Future development strategies of the Company

In future, the Company will actively make innovation and progress while maintaining stability, deeply develop
customer value based on in-depth analysis of customer demands, establish a multi-channel profit model, and
become an integrated platform operator and service provider.

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3. Operation plan in 2015

In this year, the Company's operating guideline is "transformation, innovation and development". Under the
premise of maintaining steady development of the existing business, the Company will actively explore new
business, and create the multi-channel profit model driven by the capital and resources; meanwhile, the Company
will properly prepare for sales and operations of the Nantong SEG Project.

4. Investment plan in 2015

The annual investment plan for 2015 focuses on the Company's main business, including the investments on the
continued construction and land reserves of the entity electronic stores and Nantong SEG Times Square project,
with a total expected investment of 594.01 million Yuan.

                                             Investment plan
          No.           Project name       (RMB ten thousand                          Remarks
                                                  Yuan)
                Build new electronics
           1                                                  2,000 Used for rental
                markets
                                                                  In 2015, according to the plan, the main
                                                                  structure capping of Nantong SEG Times
                                                                  Square project and decorative works will
                Nantong SEG Times                                 be basically completed, and external
           2                                               27,401
                Square                                            property sales targets will be achieved.
                                                                  The expected investment is 349.3 million
                                                                  Yuan, which will be loaned by Nantong
                                                                  SEG from the joint-stock company.
                Land reserve for
                                                                    Used for reserve lands for commercial
           4    commercial real estate                     30,000
                                                                    real estate projects
                projects
                Total                                      59,401



5. Possible risks confronting the Company and countermeasures

(1) Main risks faced by the Company

1) The competitive pressure in traditional industry continues to increase. Meanwhile, the e-business platform
further changes the consumption habits. The support from manufacturers suffers a larger decline, which increases
the market operating risks.

2) According to the macro environment of the real estate industry, there is a certain risk in sales and operation of
the Nantong SEG Project.

3) Restricted by the funding constraints and declining interest rate in the market, the development of small loan
business is slow. Meanwhile, affected by the slowdown in the real economy, the small loan business faces issues
such as weak growth and falling yield.

4) Resources in the Company's talent pool are insufficient.

(2) Main countermeasures:


                                                        37
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1) Accelerate the Company's strategic business transformation and upgrading. Through the transformation and
upgrading, the Company will seek new strategic business and profit growth opportunities, to constantly improve
the company's risk tolerance.

2) With respect to the Nantong SEG Project, the Company will exploit the strengths and selling points, strengthen
the promotion, expand the market space, and continuously adjust and improve the business planning and
positioning for attracting differentiated investments.

3) The Company will fully use all kinds of resources, to achieve effective integration and sharing of resources,
obtain an amplified effect of integration, and ensure the achievement of strategic business objectives.

4) The Company will fully employ the HR management capability, deeply study the incentive mechanism and
personnel training programs, introduce practical talents and prospective talents; meanwhile, work out scientific
and practical talent training programs for talent reservation.

5) The Company will ceaselessly improve HRM level, and formulate the motivation mechanism and medium and
long term training plan, and actively introduce inward actual combat-type talents and prospective research talents.


X. Explanations of the Board of Directors and Board of Supervisors to the Non-standard
Audit Report made by the accounting firm in the reporting period

□ Applicable √ Not applicable


XI. Information on changes in accounting policies, accounting estimates and accounting
methods compared with the financial reports of 2013

√ Applicable □ Not applicable

1. Changes of main accounting policies and accounting estimates

(1) Changes of accounting policies

Explanation of changes of accounting policies

In 2014, the Ministry of Finance has promulgated or revised a series of corporate accounting policies. The
Company has implemented new corporate accounting policies from July 1, 2014 and has adjusted the comparative
financial statements in accordance with the provisions of the new guidelines. The impacts on the comparative
financial statements caused by the new corporate accounting policies are as follows:

1) Long-term equity investment

1) According to the revised Long-Term Equity Investment Policies, the accounting of the long-term equity
    investment that does not involve the control, joint control, or significant influence on the invested
    organizations are incorporated in the available-for-sale financial assets. For the equity investment that does
    not have price quotations in the active market, whose fair value cannot be reliably measured, subsequent
    measurement is implemented according to the costs; for other equity investments, subsequent measurement is
    implemented according to the fair value. The above changes in accounting policies retrospectively affect the
    following items:

                                                          38
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                                                                           January 31, 2013
                              Share-h
                              olding
  Invested organization                                                 Financial assets            Shareholders' equity
                              proporti     Long-term equity
                                                                       available for sale         attributable to the parent
                                on          investment (+/-)
                                                                              (+/-)                    company (+/-)

Nanjing Shangsha Co.,
                                  0.68             -280,000.00                 280,000.00                                   ---
Ltd

Anshan Yibai Co., Ltd                ---                       ---                      ---                                 ---

Shenzhen       SEG    GPS
Scientific      Navigations      12.50           -13,515,392.83             13,515,392.83                                   ---
Co., Ltd.

             Total                   ---         -13,795,392.83             13,795,392.83                                   ---

                                                                         December 31, 2013
                              Share-h
                              olding
  Invested organization                                                                              Shareholders' equity
                              proporti     Long-term equity             Financial assets
                                                                                                   attributable to the parent
                              on (%)       investment (+/-)          available for sale (+/-)
                                                                                                        company (+/-)

Nanjing Shangsha Co.,
                                  0.68            -280,000.00                    280,000.00                                 ---
Ltd

Anshan Yibai Co., Ltd                ---                  ---                               ---                             ---

Shenzhen       SEG    GPS
Scientific      Navigations      12.50         -13,515,392.83                 13,515,392.83                                 ---
Co., Ltd.

Kasggar Shenzhen City
                                  3.03         -20,000,000.00                 20,000,000.00                                 ---
Co., Ltd.

             合计                    ---       -33,795,392.83                 33,795,392.83                                 ---




2) Impacts on the Consolidated Financial Statements:

a) According to the revised Accounting Standard for Business Enterprise No. 30 - Presentation of Financial
Statements, the Company has adjusted the part of the original capital reserve attributable to other comprehensive
income to be presented as other comprehensive income items, and adjusted the presentation of the opening

                                                         39
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amount of the year by using the retroactive adjustment method. The impacts of retroactive adjustment are as
follows:

                                              January 1, 2013                            December 31, 2013
              Item
                                  Before adjustment      After adjustment     Before adjustment     After adjustment
Capital reserve                      404,380,330.57        322,015,117.44        404,593,024.05         322,272,354.94
Other comprehensive income                                  82,365,213.13                                82,320,669.11
Total                                404,380,330.57        404,380,330.57        404,593,024.05         404,593,024.05

b) According to the revised Accounting Standard for Business Enterprises No. 30 - Presentation of Financial
Statements, the Company has separately presented the deferred income and adjusted the presentation of the
opening amount of the year by using the retroactive adjustment method. The impacts of retroactive adjustment are
as follows:

                                              January 1, 2013                            December 31, 2013
              Item
                                  Before adjustment      After adjustment     Before adjustment     After adjustment
Deferred income                                                 320,080.91                                  762,246.19
Other non-current liabilities            320,080.91                                    762,246.19
Total                                    320,080.91             320,080.91             762,246.19           762,246.19

(2) Changes of accounting estimates

No change was made to the main accounting estimates in the reporting period.


XII. Information on retroactive restatements in corrections of major accounting errors in the
reporting period

□ Applicable √ Not applicable

There is not retrospective restatement due to corrections on significant accounting errors in the reporting period.


XIII. Information on changes in the scope of consolidation compared with the financial report
of 2013

√ Applicable □ Not applicable

(1) Subsidiaries, special-purpose entities and operating entities whose controlling right is formed through trustee
operation or lessee, which are included in the consolidation scope for the first time in this period.

                                                                        Year-end net assets      Net profits of the
                     Name                       Reasons for change       (in 10 thousand        current period (in 10
                                                                              Yuan)               thousand Yuan)
Yantai SEG Times Square Development               New controlled
                                                                                0.04                     0.04
Co., Ltd.                                           subsidiary
Nantong SEG Commercial Operation                  New controlled
                                                                               -6.68                    0.007
Management Co., Ltd.                                subsidiary
Suzhou SEG Digital Plaza Management               New controlled
                                                                              145.33                    -654.67
Co., Ltd.                                           subsidiary


                                                          40
                                                          Full text of 2014 Annual Report of Shenzhen SEG Co., Ltd.


                                                                        Year-end net assets     Net profits of the
                    Name                        Reasons for change       (in 10 thousand       current period (in 10
                                                                              Yuan)              thousand Yuan)
Xi'an Fengdong New Town SEG Time                  New controlled
                                                                              3000.00                     -
Square Properties Co., Ltd.                         subsidiary

(2) Subsidiaries, special-purpose entities and operating entities whose controlling right is formed through trusted
operation or lease taking, which are excluded from the consolidation scope in the current year


XIV. Information about the profit and dividend distribution of the Company

The formulation, implementation, and adjustments of profit distribution policies during reporting period

√ Applicable □ Not applicable

1. The formulation, implementation, and adjustments of profit distribution policies during reporting period

1) In 2012, to improve and improve the Company's dividend distribution and monitoring mechanisms, further
improve the transparency of profit distribution policies and effectively protect the legitimate rights and interests of
all shareholders, in accordance with the relevant regulations and requirements, the Company established the
Shareholder Return Plan for the Upcoming Three Years (2012 to 2014), and amended pertinent profit distribution
clauses in the Articles of Association. The preceding agenda has been reviewed and approved in the first
Extraordinary General Meeting of Shareholders held in 2012.

In 2014, according to the Company Law implemented since March 1, 2014 and the Listed Company Supervision
Guidelines No. 3 - Cash Dividends of Listed Companies issued by China Securities Regulatory Commission,
combined with the actual situation of the Company, the Company revised the terms of profit distribution in the
Articles of Association. The revised terms clearly define the principles of profit distribution, profit distribution
forms, cash dividend proportion and conditions, and decision-making procedures for profit distribution. This
agenda has been approved in the third Extraordinary General Meeting of Shareholders held in 2014.

2) During the reporting period, the profit distribution proposal and the proposal for transfer of capital reserve into
share capital of 2013 complied with related regulations in the Articles of Association and Return Plan, and the
deliberation procedure accorded with related regulations. There were no circumstances that could damage the
interests of the Company and shareholders. The independent directors expressed the independent opinion.
                                               Cash Dividend Policies
Whether comply with the provisions of the Articles of
                                                        Yes
Association or the resolutions of shareholders' meeting
Whether the dividends standards and proportions are
                                                           Yes
clear and explicit
Whether the decision-making procedures and
                                                           Yes
mechanisms are complete
Whether independent directors perform their duties
                                                           Yes
responsibly and play their roles
Whether minority shareholders have sufficient
opportunities to express their views and aspirations,
                                                           Yes
whether their legitimate rights and interests have been
fully protected


                                                          41
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Whether the conditions and procedures for cash
dividend policy adjustments or changes are compliant       Yes
with regulations and are transparent


2. Information about the profit distribution proposal and the proposal for transfer of capital reserve into
share capital in the years of 2012, 2013 and 2014 (the reporting period):

Pursuant to Accounting Standard for Business Enterprise 2014, the investment in subsidiaries by the Company
was calculated on the basis of cost method, and there is a large difference between the profit of parent company
and the consolidated profit. According to relevant provisions of the Company Law, profits shall be distributed by
the parent company. Therefore, the profit distribution of the Company in 2014, 2013, and 2012 was implemented
depending on the distributable profit of the parent company.

1) Profit distribution proposal and the proposal for transfer of capital reserve into share capital in 2014: The
auditing by Da Hua Certified Public Accountants Co., Ltd. found that the net profit attributable to the listed
company realized by the parent company in 2014 amounted to RMB 32,887,973.01Yuan; the profit distributable
to shareholders this time, which was calculated by adding the undistributed profit at the beginning of the year,
RMB -55,097,962.63 Yuan to the former, was RMB-22,209,989.62 Yuan. No profit distribution would be made
for the current year. The Company decided not to transfer capital reserve into share capital.

2) Profit distribution proposal and the proposal for transfer of capital reserve into share capital in 2013: The
auditing by Da Hua Certified Public Accountants Co., Ltd. found that the net profit attributable to the listed
company realized by the parent company in 2013 amounted to RMB 51,015,079.16 Yuan; the profit distributable
to shareholders this time, which was calculated by adding the undistributed profit at the beginning of the year,
RMB -106,113,041.79 Yuan to the former, was RMB -55,097,962.63 Yuan. No profit distribution would be made
for the current year. The Company decided not to transfer capital reserve into share capital.

3) Profit distribution proposal and the proposal for transfer of capital reserve into share capital in 2012: The
auditing by Da Hua Certified Public Accountants Co., Ltd. found that the net profit attributable to the listed
company realized by the parent company in 2012 amounted to RMB 39,043,691.65 Yuan; the profit distributable
to shareholders this time, which was calculated by adding the undistributed profit at the beginning of the year,
RMB -145,156,733.44 Yuan to the former, was RMB -106,113,041.79 Yuan. No profit distribution would be
made for the current year. The Company decided not to transfer capital reserve into share capital.

Table of distribution of cash dividends by the Company in the last three years

                                                                                                     Unit: YUAN
                                         Net profit         Proportion of net
                                                                                Amount of share    Proportion of
                                       attributable to     profit attributable
                   Amount of cash                                              funds repurchased    share funds
Year for dividends                    shareholders of      to shareholders of
                   dividends (incl.                                                  in cash      repurchased in
   distribution                     listed company in      listed company in
                         tax)                                                    incorporated in cash incorporated
                                        consolidated           consolidated
                                                                                 cash dividends in cash dividends
                                          statement           statement (%)
2014                              0.00     48,380,294.05               0.00%                0.00            0.00%
2013                              0.00     54,338,735.35               0.00%                0.00            0.00%
2012                              0.00     45,587,138.06               0.00%                0.00            0.00%

The net profit of the Company was positive and the undistributed profit of the parent company was also positive,
but the proposal for distribution of cash dividends was not put forward.

                                                         42
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□ Applicable √ Not applicable


XV. Plan of profit distribution and transferring the capital reserve to shares in the reporting
period

□ Applicable √ Not applicable

In this year, the Company plans not to distribute cash dividend or shares, nor transfer the capital reserve to shares.


XVI. Social responsibilities

□ Applicable √ Not applicable


XVII. Registration form for investigations, communication and interviews in the reporting
period

√ Applicable □ Not applicable
                                                                                    Main content of discussion and
      Time            Place          Means             Type            Object
                                                                                       the materials provided
                                                                                  Inquired profit situation of the
                                                                                  Company in 2013. Inquired loss
                                                                                  or gain of the Company in 2013
                     At the                                                       and why the share price did not
January 10, 2014                   Phone call       Individual        Investor
                    Company                                                       rise. The company provided no
                                                                                  documents. The investors can read
                                                                                  the annual report 2013 disclosed
                                                                                  on March 20, 2014.
                                                                                   Inquired situation of China GPS
                                                                                  whose 12.5% shares are held by
                                                                                  the Company and what are the
                     At the
January 14, 2014                   Phone call       Individual        Investor    main businesses of the Company.
                    Company
                                                                                  The company provided basic
                                                                                  documents of China GPS and the
                                                                                  Company.
                                                                                  Inquired profit situation of the
                                                                                  Company in 2013. The company
February 10,         At the                                                       provided no documents. The
                                   Phone call       Individual        Investor
2014                Company                                                       investors can read the annual
                                                                                  report 2013 disclosed on March
                                                                                  20, 2014.
                                                                                  Inquired why the share of the
                                                                                  Company is not appreciated. The
February 11,         At the
                                   Phone call       Individual        Investor    Company provided the basic
2014                Company
                                                                                  information and regularly
                                                                                  disclosed reports of the Company.
                                                                                  Inquired what are the main
                                                                                  businesses of the Company The
February 17,         At the
                                   Phone call       Individual        Investor    Company provided the basic
2014                Company
                                                                                  information and regularly
                                                                                  disclosed reports of the Company.


                                                          43
                                                 Full text of 2014 Annual Report of Shenzhen SEG Co., Ltd.

                                                                         Main content of discussion and
     Time         Place       Means          Type           Object
                                                                            the materials provided
                                                                          Inquired whether the Company
                                                                        is operated normally. The
February 20,      At the
                            Phone call     Individual       Investor    company provided the basic
2014             Company
                                                                        introduction to the Company and
                                                                        the latest regular report.
                                                                        Inquired the time for disclosing
February 21,      At the                                                the annual report. The Company
                            Phone call     Individual       Investor
2014             Company                                                informed that the annual report is
                                                                        disclosed on March 30, 2014.
                                                                        Inquired the reason for temporary
                  At the                                                suspension. The company
March 10, 2014              Phone call     Individual       Investor
                 Company                                                informed the resumption on the
                                                                        day.
                                                                        Inquired why the Company gave
                  At the                                                up the control over Huakong
March 10, 2014              Phone call     Individual       Investor
                 Company                                                SEG. The company replied based
                                                                        on the notice contents.
                                                                        Inquired why the Company gave
                                                                        up the control power over
                  At the
March 11, 2014              Phone call     Individual       Investor    Huakong SEG. The company
                 Company
                                                                        replied based on the notice
                                                                        contents.
                                                                        Inquired why the Company gave
                  At the                                                up the control over Huakong
March 12, 2014              Phone call     Individual       Investor
                 Company                                                SEG. The company replied based
                                                                        on the notice contents.
                                                                        Inquired the detailed operation
                                                                        situation of the Company in the
                  At the                                                first quarter. The company
March 19, 2014              Phone call     Individual       Investor
                 Company                                                informed that the report for the
                                                                        first quarter in 2014 will be
                                                                        disclosed soon.
                                                                        Inquired the investment on Yantai
                  At the                                                project. The Company informed
April 21, 2014              Phone call     Individual       Investor
                 Company                                                the related disclosed
                                                                        announcement.
                                                                        Inquired the specific company
                  At the                                                address to attend the shareholders'
April 22, 2014              Phone call     Individual       Investor
                 Company                                                meetings. The Company informed
                                                                        the specific address.
                                                                        Inquired the detailed operation
                                                                        situation of the Company in the
                  At the                                                second quarter. The company
June 27, 2014               Phone call     Individual       Investor
                 Company                                                informed that the semi-annual
                                                                        report of 2014 will be disclosed
                                                                        soon.
                                                                      The company introduced the
                  At the       Spot                      Guotai Junan company service model and basic
July 11, 2014                              Institution
                 Company   investigation                  Securities operation conditions, property
                                                                      assets, and entity stores.


                                                44
                                              Full text of 2014 Annual Report of Shenzhen SEG Co., Ltd.

                                                                      Main content of discussion and
     Time          Place     Means         Type          Object
                                                                         the materials provided
                                                                     Inquired the future development
                                                                     direction and the current market
                   At the
July 12, 2014               Phone call   Individual      Investor    situation, provided suggestions to
                  Company
                                                                     the Company's management and
                                                                     development.
                                                                     Inquired the time for disclosing
                                                                     the semi-annual report of 2014.
                   At the
July 14, 2014               Phone call   Individual      Investor    The company informed that the
                  Company
                                                                     semi-annual report of 2014 is
                                                                     disclosed on August 29, 2014.
                                                                     Inquired the specific operation
                                                                     situation of the first half year in
                   At the
August 25, 2014             Phone call   Individual      Investor    2014. The company informed that
                  Company
                                                                     the semi-annual report of 2014
                                                                     will be disclosed soon.
                                                                    Inquired the suspension cause and
                   At the                             Investors (11
August 28, 2014             Phone call   Individual                 resumption time. The Company
                  Company                               persons)
                                                                    replied accordingly.
                                                                    Inquired the suspension cause and
September 1,       At the                             Investors (10
                            Phone call   Individual                 resumption time. The Company
2014              Company                               persons)
                                                                    replied accordingly.
                                                                    Inquired the suspension cause and
September 2,       At the                              Investors (8
                            Phone call   Individual                 resumption time. The Company
2014              Company                                persons)
                                                                    replied accordingly.
                                                                    Inquired the suspension cause and
September 3,       At the                              Investors (5
                            Phone call   Individual                 resumption time. The Company
2014              Company                                persons)
                                                                    replied accordingly.
                                                                    Inquired the suspension cause and
September 4,       At the                              Investors (4
                            Phone call   Individual                 resumption time. The Company
2014              Company                                persons)
                                                                    replied accordingly.
                                                                    Inquired the accounting methods
September 5,       At the                              Investors (4
                            Phone call   Individual                 of Huakong SEG's stock equity.
2014              Company                                persons)
                                                                    The Company replied accordingly.
                                                                     Inquired the accounting methods
September 9,       At the
                            Phone call   Individual      Investor    of Huakong SEG's stock equity.
2014              Company
                                                                     The Company replied accordingly.
                                                                     Inquired the time for disclosing
                                                                     the third quarterly report in 2014.
September 15,      At the
                            Phone call   Individual      Investor    The Company informed that the
2014              Company
                                                                     report is disclosed on October 31,
                                                                     2014.
                                                                     Inquired the time for disclosing
                                                                     the third quarterly report in 2014.
September 22,      At the
                            Phone call   Individual      Investor    The Company informed that the
2014              Company
                                                                     report is disclosed on October 31,
                                                                     2014.
                                                                     Inquired the future development
September 23,      At the                                            direction and the current market
                            Phone call   Individual      Investor
2014              Company                                            situation, provided suggestions to
                                                                     the Company's management and

                                              45
                                                   Full text of 2014 Annual Report of Shenzhen SEG Co., Ltd.

                                                                           Main content of discussion and
     Time           Place       Means          Type           Object
                                                                                the materials provided
                                                                          development.
                                                                          Inquired the detailed operation
                                                                          situation of the Company in the
September 24,       At the                                                third quarter. The Company
                              Phone call     Individual       Investor
2014               Company                                                informed that the report for the
                                                                          third quarter in 2014 will be
                                                                          disclosed soon.
                                                                          Inquired the detailed operation
                                                                          situation of the Company in the
                    At the                                                third quarter. The Company
October 9, 2014               Phone call     Individual       Investor
                   Company                                                informed that the report for the
                                                                          third quarter in 2014 will be
                                                                          disclosed soon.
                                                                          Inquired the detailed operation
                                                                          situation of the Company in the
                    At the                                                third quarter. The company
October 13, 2014              Phone call     Individual       Investor
                   Company                                                informed that the report for the
                                                                          third quarter in 2014 will be
                                                                          disclosed soon.
                                                                          Inquired the detailed operation
                                                                          situation of the Company in the
                                                             Shanghai
                    At the       Spot                                     third quarter. The company
October 20, 2014                             Institution      Dintian
                   Company   investigation                                informed that the report for the
                                                            Investment
                                                                          third quarter in 2014 will be
                                                                          disclosed soon.
                                                                          Asked whether the company has a
                                                                          plan for an owned enterprise
                                                                          reform program. The Company
November 24,        At the
                              Phone call     Individual       Investor    replied that currently the
2014               Company
                                                                          Company has not yet received
                                                                          formal written notice from the
                                                                          parent unit.
                                                                          Asked whether the Company has
                                                                          a plan for an owned enterprise
                                                                          reform program. The Company
November 25,        At the
                              Phone call     Individual       Investor    replied that currently the
2014               Company
                                                                          Company has not yet received
                                                                          formal written notice from the
                                                                          parent unit.
                                                                          Asked whether the Company has
                                                                          a plan for an owned enterprise
                                                                          reform program. The Company
December 1,         At the
                              Phone call     Individual       Investor    replied that currently the
2014               Company
                                                                          Company has not yet received
                                                                          formal written notice from the
                                                                          parent unit.
                                                                          Inquired the detailed operation
                                                                          situation of the Company in 2014.
December 16,        At the
                              Phone call     Individual       Investor    The Company informed that the
2014               Company
                                                                          annual report of 2014 will be
                                                                          disclosed soon.


                                                  46
                                                        Full text of 2014 Annual Report of Shenzhen SEG Co., Ltd.




                                  Chapter 5 Important Matters

I. Major lawsuits and arbitration

□ Applicable √ Not applicable

No major lawsuits and arbitration occurred during the reporting period


II. Matters questioned by media

□ Applicable √ Not applicable

The Company did not have any matter commonly questioned by media in the reporting period.


III. Non-operating capital of the listed company occupied by controlling shareholders and
related parties

□ Applicable √ Not applicable

The non-operating capital of the listed company occupied by controlling shareholders and related parties was not
involved during the reporting period.


IV. Bankruptcy and reorganization matters

□ Applicable √ Not applicable

No bankruptcy and reorganization matters were involved during the reporting period.


V. Transaction in assets

1. Information on asset acquisition

□ Applicable √ Not applicable

No asset acquisition was involved during the reporting period.

2. Asset sales

□ Applicable √ Not applicable

No asset sales matter was involved during the reporting period.

3. Business merger

□ Applicable √ Not applicable

No business merger matter was involved during the reporting period.




                                                        47
                                                                Full text of 2014 Annual Report of Shenzhen SEG Co., Ltd.


 VI. Implementation and impact of stock ownership incentive

 □ Applicable √ Not applicable

 No stock incentive plan and implementation were involved during the reporting period.


 VII. Major relevant transactions

 1. Associated transactions concerning routine operation

 √ Applicable □ Not applicable
                                                                               Amount
                                                               Transaction
                                                                             proportion in
                                                                  amount                   Transaction
Associated Associated Transaction      Associated     Pricing                     the                      Disclosure   Disclosure
                                                                (RMB ten                   settlement
  party    relationship  type          transaction   principle             transactions of                    date        index
                                                                 thousand                     form
                                                                            the same kind
                                                                   Yuan)
                                                                                 (%)
                                     The company
Shenzhen                             leases the SEG
                                                    Determine                                                           http://www
SEG        Controlling   Property    Plaza property                                           Based on the March 20,
                                                    d by the         108.91           0.19%                             .cninfo.co
Group Co., shareholder   lease       owned by the                                             agreement 2014
                                                    market                                                              m.cn
Ltd.                                 controlling
                                     shareholders
                                     The controlling
                                     shareholder
                                     commissions
Shenzhen
                         Entrusted   the Company Determine                                                              http://www
SEG        Controlling                                                                        Based on the March 20,
                         with the    to operate and d by the            20            0.04%                             .cninfo.co
Group Co., shareholder                                                                        agreement 2014
                         operation   manage the      market                                                             m.cn
Ltd.
                                     invested SEG
                                     communicatio
                                     ns market
Total                                                   --           128.91      --                --          --           --


 2. Associated transactions related to asset acquisition and sales

 □ Applicable √ Not applicable

 3. Associated transactions due to joint external investment

 □ Applicable √ Not applicable

 4. Creditor's rights and liabilities with related parties

 □ Applicable √ Not applicable

 5. 5. Other associated transactions

 □ Applicable √ Not applicable




                                                                48
                                                         Full text of 2014 Annual Report of Shenzhen SEG Co., Ltd.


VIII. Important contracts and their fulfillment

1. Trusteeship, contracting and leasing

(1) Trusteeship issues

√ Applicable □ Not applicable

Explanations of trusteeship

The controlling shareholders of Shenzhen SEG Group Co., Ltd. entrusted the management of SEG
communications market to the Company, and the Company received the trusteeship revenue of 200,000
Yuan according to the trusteeship agreement during the reporting period.

Projects which bring losses or gains that take up 10% of the profit amount of the Company in the reporting period.

□ Applicable √ Not applicable

In the reporting period, the Company had no entrusted projects which bring losses or gains that take up 10% of the
profit amount of the Company in the reporting period.

(2) Contracting issues

□ Applicable √ Not applicable

Projects which bring losses or gains that take up 10% of the profit amount of the Company in the reporting period.

□ Applicable √ Not applicable

In the reporting period, the Company had no contracting projects which bring losses or gains that take up 10% of
the profit amount of the Company in the reporting period.

(3) Leasing issues

√ Applicable □ Not applicable

Leasing issues:

For details, see the section Associated transactions concerning routine operation.

Projects which bring losses or gains that take up 10% of the profit amount of the Company in the reporting period.

□ Applicable √ Not applicable

In the reporting period, the Company had no leasing projects which bring losses or gains that take up 10% of the
profit amount of the Company in the reporting period.

2. Guarantee issues

√ Applicable □ Not applicable

                                                                                     Unit: RMB ten thousand Yuan
                                        Guarantees for holding subsidiaries
                  Announcement               Date of                                  Whether the Whether
                                                         Actual
  Name of the     and disclosure Guaranteed occurrence             Type of Term of performance guarantee
                                                        amount
  guaranteed        date of the   amount (agreement               guarantee guarantee     is       for
                                                       guaranteed
                    guarantee                signing                                  completed related

                                                         49
                                                           Full text of 2014 Annual Report of Shenzhen SEG Co., Ltd.

                                                  date)                                                        party
                 October 11,                   October 25,                Joint
SEG Credit                              7500                       5000               1 year   No           No
                 2014                                2014                 liability
                                                            Total amount of the
Total guarantee amount for
                                                            actual guarantee to the
subsidiaries approved in the                           7500                                                       5000
                                                            subsidiaries in the
reporting period (B1)
                                                            reporting period (B2)
                                                            Total amount of the
Total guarantee amount for                                  guarantee balance to
subsidiaries approved by the                           7500 the subsidiaries by the                               5000
end of the reporting period (B3)                            end of the reporting
                                                            period (B4)
Total guarantee amount (the sum of the two major items above)
Total guarantee amount                                      Total amount of actual
approved in the reporting period                       7500 guarantees in the                                     5000
(A1+B1)                                                     reporting period
                                                            Total balance of
Total guarantee amount
                                                            actual guarantees by
approved by the end of the                             7500                                                       5000
                                                            the end of the
reporting period (A3+B3)
                                                            reporting period (A)
Proportion of total guarantees (A4+B4) in net assets                                                             3.85%


3. Other important contracts

√ Applicable □ Not applicable
                                   Transaction
                                   price (Unit: Associated
                          Pricing                          Associated         Execution by the end of the reporting
 Lender      Borrower               RMB ten transaction
                         principle                         relationship                      period
                                    thousand      or not
                                      Yuan)
                                                                        On October 14, 2013, the 3rd special
                                                                        meeting of the 6th Board of Directors
                                                                        discussed and approved the Proposal about
                                                                        Offering Shenzhen SEG E-Commerce Co.,
                                                                        Ltd. with Financial Assistance. The
                                                                        company offers the 51% holding SEG
                                                                        E-Commerce with the financial assistance
                                                                        of 60 million Yuan for one year (from
                                                                        September 15, 2013 to September 14,
                                                                        2014) and pays based on the requirements
         Shenzhen
Shenzhen                                                                of the e-commerce businesses. SEG
         SEG        Fair                                     Not
SEG Co.,                                6,000      No                   E-Commerce pays expenses for using the
         E-Commerce price                                    applicable
Ltd.                                                                    funds to the Company based on its actual
         Co., Ltd.
                                                                        loan amount and period. The expenses for
                                                                        using the funds is charged based on the
                                                                        benchmarking interest rate of the one-year
                                                                        bank loan in the same period and should be
                                                                        paid on the due date.
                                                                        On December 5, 2014, the 5th special
                                                                        meeting of the 6th Board of Directors
                                                                        discussed and approved the Proposal about
                                                                        Offering Shenzhen SEG E-Commerce Co.,
                                                                        Ltd. with 60 million Yuan Financial

                                                          50
                                                         Full text of 2014 Annual Report of Shenzhen SEG Co., Ltd.

                                   Transaction
                                   price (Unit: Associated
                          Pricing                          Associated        Execution by the end of the reporting
 Lender     Borrower                RMB ten transaction
                         principle                         relationship                     period
                                    thousand      or not
                                      Yuan)
                                                                          Assistance. This is a renewal loan, with the
                                                                          term being one year. SEG E-Commerce
                                                                          pays expenses for using the funds to the
                                                                          shareholders based on its actual loan
                                                                          amount and period. The funds occupancy
                                                                          rate is 6.5%.
                                                                      On July 29, 2014, the 15th special meeting
                                                                      of the 6th Board of Directors discussed and
                                                                      approved the Proposal about Offering
         Shenzhen                                                     Shenzhen SEG Industrial Investment Co.,
Shenzhen SEG                                                          Ltd. with 10 million, Yuan Liquidity
                         No                                Not
SEG Co., Industrial                     4,200      No                 Assistance. The Company offers 10 million
                         interest                          applicable
Ltd.     Investment                                                   Yuan liquidity to the Shenzhen SEG
         Co., Ltd.                                                    Industrial Investment, which is 100% held
                                                                      by the Company. So far SEG Industrial
                                                                      Investment has borrowed 42 million Yuan
                                                                      in total from the Company with no interest.
                                                                      The 6th interim meeting of the 6th Board of
                                                                      Directors held on October 25, 2013
                                                                      reviewed and approved the Proposal on A
                                                                      Renewal Loan of RMB 7 million Yuan to
                                                                      Changsha SEG Development Co., Ltd. The
                                                                      Board of Directors of the Company agreed
                                                                      to offer a renewal loan of RMB 7 million
         Changsha                                                     Yuan to Changsha SEG (46% held by the
Shenzhen
         SEG         Fair                                  Not        Company), the term being a year (from
SEG Co.,                                  700      No
         Development price                                 applicable September 25, 2013 to September 24,
Ltd.
         Co., Ltd.                                                    2014) and the interest rate being 6.00%
                                                                      (bank loan interest rate over the same
                                                                      period), for which Changsha Xinxing
                                                                      Grand Hotel owned by Changsha SEG was
                                                                      again used as collateral to the Company. By
                                                                      the end of the reporting period, Changsha
                                                                      SEG had repaid all principal and interest on
                                                                      these borrowings.




4. Other important transactions

□ Applicable √ Not applicable


IX. Fulfillment of commitments

1. Commitments made by the Company or the shareholders holding more than 5% shares, which were
made in or lasted into the reporting period

√ Applicable □ Not applicable



                                                         51
                                                         Full text of 2014 Annual Report of Shenzhen SEG Co., Ltd.

                                                                         Commitment Commitment
     Commitments         Promisor                 Content                                      Fulfillment
                                                                            date       term
Commitment for share    Not
reform                  applicable
Commitments in the
Acquisition Report or   Not
the Equity Change       applicable
Report
Commitments made at
                        Not
the time of asset
                        applicable
restructuring
                                       In accordance with Article 5 of
                                     Equity Transfer Agreement signed
                                     between the Company and SEG
                                     Group, SEG Group agrees: the
                                     Company and its affiliates and joint
                                     ventures can use the eight
                                                                                                       Commitments
                           Shenzhen trademarks of SEG Group
Commitment made at                                                                                     were fulfilled
                           SEG       registered in China Trademark
the time of initial public                                                July 1, 1996 Long-term       in the
                           Group     Office; the Company can use the
offerings or refinancing                                                                               reporting
                           Co., Ltd. above-mentioned trademarks and
                                                                                                       period.
                                     similar marks as the Company's
                                     marks and can use them in
                                     operating activities; the Company
                                     does not need to pay SEG Group
                                     for use of the above-mentioned
                                     trademarks or marks.
                                  To address the issue that there is
                                  competition in the same trade
                                  between the Company and SEG
                                  Group indicated in spot inspection
                                  by Shenzhen Securities
                                  Supervisory Bureau, the Company
                                  received a written Commitment
                                  Letter from SEG Group on
                                                                                                       Commitments
                                  September 14, 2007 and the content
                                                                                                       were fulfilled
                                  was as follows: our Group has      September
                                                                                       Long-term       in the
                                  similar business in Shenzhen       14, 2007
                                                                                                       reporting
                                  electronic market with Shenzhen
                                                                                                       period.
                        Shenzhen SEG Co., Ltd. (Shenzhen SEG),
Other commitments                 and the business was resulted by
                        SEG
(including additional             history and has objective market
                        Group
commitments)
                        Co., Ltd. development background. Our
                                  Group hereby promises that we will
                                  not independently operate a market
                                  in the same city whose business is
                                  similar with that of Shenzhen SEG.
                                     In order to solve the issue of
                                     horizontal competition between the                February 1,     Commitments
                                     Company and its controlling                       2011 to         were fulfilled
                                     shareholder, SEG Group, the 6th     January 26,
                                                                                       January 31,     in the
                                     special meeting of the 6th Board of 2011          2015, totally   reporting
                                     Directors held on January 26, 2011                5 years         period.
                                     reviewed and approved the
                                     Proposal for Solving the Horizontal

                                                        52
                                                        Full text of 2014 Annual Report of Shenzhen SEG Co., Ltd.

                                                                        Commitment Commitment
     Commitments          Promisor                Content                                     Fulfillment
                                                                           date       term
                                     Competition between the Company
                                     and Its Controlling Shareholder.
                                     After friendly consultation, SEG
                                     Group agreed to entrust the
                                     Company to operate and manage
                                     with full authority SEG
                                     Communications Market under
                                     direct management of SEG Group.
                                     Therefore, the two parties have
                                     signed the entrustment operation
                                     and management contract. The
                                     SEG Group pays 200,000 Yuan
                                     annually as entrusted management
                                     fees to the Company.
Other commitments
made to the small and Not
medium shareholders of applicable
the Company
Whether commitments
                       Yes
were fulfilled on time
Reason for not fulfilling
the commitments and N/A
future plan (if any)


2. Attainment of profit forecasts for the assets or projects of the Company within the reporting period and
the description of the reasons

□ Applicable √ Not applicable


X. Engagement and dismissal of the accounting firm

Engaged accounting firm
Name of accounting firm engaged from China            BDO Dahua CPA Co., Ltd. (special general partnership)
Remuneration for the accounting firm engaged from
                                                  45
China (RMB ten thousand Yuan)
Continuous years of service from the accounting firm
                                                     12 years
engaged from China
Name of certified public accountants from the
                                                      To be confirmed
accounting firm engaged from China

Whether to engage another accounting firm in current period

□ Yes √ No

Engagement of internal control audit accounting firm, financial adviser or sponsor

□ Applicable √ Not applicable




                                                        53
                                                           Full text of 2014 Annual Report of Shenzhen SEG Co., Ltd.


XI. Explanations of the Supervisory Board and independent directors (if applicable) on the
Non-standard Audit Report made by the accounting firm in the reporting period

□ Applicable √ Not applicable


XII. Penalties and corrections

□ Applicable √ Not applicable

No penalties and corrections were involved during the reporting period.


XIII. Listing suspension or termination after the annual report is disclosed

□ Applicable √ Not applicable


XIV. Notes on other important matters

√ Applicable □ Not applicable

                                                                                     Inquiry index for the websites
             Overview of important events                       Disclosure date
                                                                                    disclosing the temporary reports
1. Temporary stock suspension
Because the Company has not disclosed related
information that may affect the Company's stock price,                         The company disclosed the
in order to prevent the company's stock transaction and         March 10, 2014 Temporary Suspension Notice at
protect the interests of investors, the Company applies                        http://www.cninfo.com.cn.
for temporary suspension from the market opening on
March 10, 2014, according to the relevant provisions of
the Shenzhen Stock Exchange.
2. Stock resumption                                                            The company disclosed the
The 9th special meeting of the 6th Board of Directors of                       Resumption Notice, Resolution
the Company was held in way of communication voting                            Notice of the 9th Special Meeting of
on March 10, 2014. The meeting examined and adopted                            the 6th Board of Directors of the
                                                                March 12, 2014
the Motion for Signing the Agreement for Controlling                           Company, and Notice for Relinquish
Rights Arrangement of Shenzhen Huakong SEG Co., Ltd.                           in Control of Shenzhen Huakong
Upon application, the company's stock trading is                               SEG Co., Ltd. at
resumed on March 12, 2014 from the market opening.                             http://www.cninfo.com.cn.
                                                                                The company disclosed the Notice
                                                                                for Registration Acceptance of the
                                                                January 3, 2014
                                                                                Issuance of Short-term Bonds at
3. Progress of the issuance of short-term bonds                                 http://www.cninfo.com.cn.
During the reporting period, the Company has received
the [2013] No. CP499 Notice for Registration                                      The company disclosed the Notice
Acceptance issued by the Dealers Association.                                     for the Issuance of First Tranche of
                                                                                  2014 Short-term Bonds at
On May 14, 2014, the Company successfully issued the
                                                                May 16, 2014      http://www.cninfo.com.cn.
first tranche of 2014 short-term bonds.
                                                                                  For details about the notices, access
                                                                                  the websites of China Money and
                                                                                  Shanghai Clearing House.
4. Short-term financing vouchers for a maximum                  June 11, 2014     The company disclosed the Notice of
amount of 0.3 billion Yuan issued by the SEG Credit in                            the 13th Special Meeting of the 6th


                                                           54
                                                            Full text of 2014 Annual Report of Shenzhen SEG Co., Ltd.


                                                                                    Inquiry index for the websites
             Overview of important events                     Disclosure date
                                                                                   disclosing the temporary reports
Qianhai Equity Trading Center or Shenzhen Stock                                 Board of Directors of the Company,
Exchange, and the Company's intention of full                                   Notice for Holding Subsidiary
subscription.                                                                   Issuing Short-term Financing
                                                                                Vouchers, and Notice for
                                                                                Subscribing the Short-term
                                                                                Financing Vouchers Issued by
                                                                                Holding Subsidiary at
                                                                                http://www.cninfo.com.cn.
                                                                                The company disclosed the Notice
                                                                                for Resolution of the 14th Special
5. Use of idle funds to purchase financial products                             Meeting of the 6th Board of Directors
To improve the efficiency in the fund use of the                                of Shenzhen SEG Co., Ltd. and
                                                               July 5, 2014
Company and the holding subsidiaries, without affecting                         Notice for the Use of Idle Funds to
the normal operation, the Company rationally uses the                           Purchase Financial Products of
idle funds for investment and financing, to increase the                        Shenzhen SEG Co., Ltd at
capital income and seek a better return for the Company                         http://www.cninfo.com.cn.
and shareholders. The Company and the subsidiaries                              The company disclosed the Notice
plan to use no more than 1 billion Yuan of the idle funds                       for Resolution of the 2nd
for financing investment. The funds can be used                                 extraordinary general meeting of
repeatedly within the above limit.                             July 22, 2014
                                                                                shareholders in 2014 of Shenzhen
                                                                                SEG Co., Ltd at
                                                                                http://www.cninfo.com.cn.
7. Temporary stock suspension                                                   The company disclosed the
Because the matters under discussion may affect the                             Temporary Suspension Notice of
                                                          August 28, 2014
Company's stock price, in order to prevent the                                  Shenzhen SEG Co., Ltd. at
company's stock transaction and protect the interests of                        http://www.cninfo.com.cn.
investors, the Company applies for temporary
suspension from the market opening on August 28,                                The company disclosed the
2014, according to the relevant provisions of the                               Temporary Suspension Progress
                                                         September 4, 2014
Shenzhen Stock Exchange. (Securities short name: Shen                           Notice of Shenzhen SEG Co., Ltd. at
Saige, Shensaige B, security code: 000058 and 200058)                           http://www.cninfo.com.cn.

8. Stock resumption
On September 4, 2014, the 18th special meeting of the                           The company disclosed the Notice
6th Board of Directors of the Company was held in way                           for the 18th Special Meeting of the 6th
of communication voting. The meeting approved the                               Board of Directors, Notice for Stock
Determination of the Equity Accounting Methods of                               Resumption of Shenzhen SEG Co.,
                                                       September 5, 2014
Shenzhen SEG Co., Ltd. The Company has finally                                  Ltd, Notice for Determining the
determined the equity accounting methods used for the                           equity accounting methods used for
holding Shenzhen Huakong SEG Co., Ltd. Upon                                     the holding Shenzhen Huakong SEG
application, the company's stock trading is resumed on                          Co., Ltd at http://www.cninfo.com.cn.
September 5, 2014 from the market opening.


XV. Important matters of subsidiaries

√ Applicable □ Not applicable

                                                                                Inquiry index for the websites
             Overview of important events                     Disclosure date
                                                                                disclosing the temporary reports
1. Completion of main structure of the Nantong SEG                            The company disclosed the Notice
Times Square project                                        December 17, 2014 for Completion of Main Structure of
The holding Nantong SEG Times Square project                                  the Nantong SEG Times Square

                                                        55
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officially laid the foundation stone on November 27,                       Project of Shenzhen SEG Co., Ltd at
2013, and the marketing center of this project was                         http://www.cninfo.com.cn.
officially opened on June 28, 2014.
On December 12, 2014, the ceremony for completing
the major structure capping of Nantong SEG Times
Square project was held.

2. The subsidiary has acquired operating assets of                         The company disclosed the Notice
Changsha Jubilee Hotel and started Changsha Orange                         for the 14th Special Meeting of the 6th
Hotel Xingsha branch.                                                      Board of Directors of Shenzhen SEG
                                                                           Co., Ltd, Notice for the Acquisition
Shenzhen SEG Baohua Enterprise (66.58% held by the          July 5, 2014   of the Operating Assets of Changsha
Company) has acquired the operating assets of                              Jubilee Hotel by a Subsidiary and
Changsha Jubilee Hotel in Changsha Technological                           Opening of Changsha Orange Hotel
Development Zone, with a price of 7 million Yuan and                       Xingsha Branch at
opened the Changsha Orange Hotel Xingsha branch.                           http://www.cninfo.com.cn.


XVI. Issuance of corporate bonds

□ Applicable √ Not applicable




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Chapter 6 CHANGES IN SHARE CAPITAL AND INFORMATION
                 ON SHAREHOLDERS

I. Information on changes in share capital

1. Information on changes in share capital

                                                                                                          Unit: Share
                       Before the change                  Increase/Decrease (+)                 After the change
                                                 New          Capitalization
                                                        Bonus
                      Quantity       Proportion share           of public Others Subtotal      Quantity       Proportion
                                                        share
                                               offering          reserve
I. Restricted
                         35,464         0.00%        0     0             0 -8,775     -8,775      26,689         0.00%
shares
1. State-owned
                                 0      0.00%        0     0             0        0       0               0      0.00%
shares
2. State-owned
legal person's                   0      0.00%        0     0             0        0       0               0      0.00%
shares
3. Other domestic
                         35,464         0.00%        0     0             0 -8,775     -8,775      26,689         0.00%
shares
Including: Shares
held by domestic                 0      0.00%        0     0             0        0       0               0      0.00%
legal persons
Shares held by
domestic natural         35,464         0.00%        0     0             0 -8,775     -8,775      26,689         0.00%
persons
4. Foreign shares                0      0.00%        0     0             0        0       0               0      0.00%
Including: Shares
held by overseas                 0      0.00%        0     0             0        0       0               0      0.00%
legal persons
Shares held by
foreign natural                  0      0.00%        0     0             0        0       0               0      0.00%
persons
II. Unrestricted
                     784,763,546 100.00%             0     0             0 8,775      8,775 784,772,321 100.00%
shares
1. RMB ordinary
                538,302,228            68.59%        0     0             0 8,775      8,775 538,311,003         68.59%
shares
2. Domestically
listed foreign       246,461,318       31.40%        0     0             0        0       0 246,461,318         31.40%
shares
3. Overseas listed
                                 0      0.00%        0     0             0        0       0               0      0.00%
foreign shares
4. Others                        0      0.00%        0     0             0        0       0               0      0.00%
III. Total shares    784,799,010 100.00%             0     0             0        0       0 784,799,010 100.00%

Reasons for change

                                                          57
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□ Applicable √ Not applicable

Approval of changes in share capital

□ Applicable √ Not applicable

Share transfer

□ Applicable √ Not applicable

Impact of changes in share capital on such financial indicators as basic EPS, diluted EPS, and net asset per share
attributable to common shareholders of the Company in the last year and previous reporting period

□ Applicable √ Not applicable

Other contents as deemed necessary by the Company or required by the securities regulatory authority to be
disclosed

□ Applicable √ Not applicable

2. Information on changes in restricted shares

√ Applicable □ Not applicable

                                                                                                       Unit: Share
                    Restricted shares Restricted shares Restricted shares Restricted shares
    Name of                                                                                         Reason for
                    at the beginning released in this increased in this at the end of the
   shareholder                                                                                    restricted trade
                      of the period        period            period            period
                                                                                                 Shares held by
Zheng Dan                         35,464           8,775                  0             25,586
                                                                                                 Senior Executives
Total                             35,464           8,775                  0             25,586           --


II. Issuance and listing of shares

1. Previous issuance of shares in the last three years of the reporting period

□ Applicable √ Not applicable

2. Explanations on changes in total shares and the shareholder structure as well as the changes in the assets
and liabilities structure of the company

□ Applicable √ Not applicable

3. Information of existing staff shares


□ Applicable √ Not applicable


III. Information on Shareholders and Actual Controllers

1. Information on the number of shareholders and their shareholding status

                                                                                                       Unit: Share

                                                       58
                                                                      Full text of 2014 Annual Report of Shenzhen SEG Co., Ltd.

                                                                                                  Total number of
                                                                                                  preferred
Total number of                            Total number of ordinary
                                                                                                  shareholders with
ordinary                                   shareholders on the fifth
                                                                                                  voting rights
shareholders at                     55,987 trading day before the                          51,394                                    none
                                                                                                  restored by the end
the end of the                             disclosure of the reporting
                                                                                                  of the reporting
reporting period                           period
                                                                                                  period (if any) (see
                                                                                                  Note 8)
                                       Shareholders holding over 5% shares or top 10 shareholders
                                                                              Quantity                      Information on pledged or
                                                 Shares held      Share
                                                                                  of     Quantity of              frozen shares
   Name of             Type of      Shareholding by the end increase/decrease
                                                                              restricted unrestricted
  shareholder        shareholder     proportion of reporting in the reporting
                                                                                shares shares held          Share status       Quantity
                                                   period         period
                                                                                 held
Shenzhen SEG State-owned
                                           30.24% 237,359,666 0                            0 237,359,666 Frozen                83,679,833
Group Co., Ltd. legal person
                   Domestic
Zeng Ying                                   1.02%     8,040,826 1,850,139                  0   8,040,826                   0              0
                   natural person
Phillip
Securities         Overseas legal
                                            0.86%     6,716,223 6,716,223                  0   6,716,223                   0              0
(Hong Kong)        person
Group
                   Domestic
Liu Guocheng                                0.70%     5,495,595 2,998,135                  0   5,495,595                   0              0
                   natural person
                   Overseas
Gong Qianhua                                0.68%     5,311,520 0                          0    5,311,520                  0              0
                   natural person
                   Domestic
Wang Jian                                   0.38%     3,000,000 3,000,000                  0   3,000,000                   0              0
                   natural person
                   Domestic
Liu Guohong                                 0.31%     2,454,941 2,454,941                  0   2,454,941                   0              0
                   natural person
Yunnan
International
Trust Co. Ltd.–
                 Others                     0.31%     2,437,347 2,437,347                  0   2,437,347                   0              0
Ruihui 2
Capital Trust
Plan
UBS AG
                   Overseas legal
LONDON                                      0.30%     2,339,805 2,339,805                  0   2,339,805                   0              0
                   person
BRANCH
LI LEON            Overseas
                                            0.30%     2,334,900 2,334,900                  0   2,334,900                   0              0
ZHAN WEI           natural person
Strategic investors or general
legal entities who became one
of the top ten shareholders by      N/A
participating in rights issue (if
any) (See Note 3)
Explanations on the association     Shenzhen SEG Group Co., Ltd has no associated relationship with other shareholders, nor it is a
relationship or concerted action    concerted action unit as described by the Management Methods for Disclosure of Information on
among the above-mentioned           Changes of Shareholding Status of Shareholders of Listed Companies It is unknown whether other
shareholders                        shareholders have an associated relationship or are concerted action units or not.
                                          Information on top ten shareholders of unrestricted shares



                                                                     59
                                                                   Full text of 2014 Annual Report of Shenzhen SEG Co., Ltd.

                                                                                                          Type of shares
     Name of shareholder                  Unrestricted shares held at the period end
                                                                                                  Type of shares           Quantity
Shenzhen SEG Group Co., Ltd.                                                   237,359,666 RMB ordinary shares             237,359,666
                                                                                             Domestically listed
Zeng Ying                                                                        8,040,826                                   8,040,826
                                                                                             foreign shares
Phillip Securities (Hong Kong)                                                               Domestically listed
                                                                                 6,716,223                                   6,716,223
Group                                                                                        foreign shares
                                                                                             Domestically listed
Liu Guocheng                                                                     5,495,595                                   5,495,595
                                                                                             foreign shares
                                                                                             Domestically listed
Gong Qianhua                                                                     5,311,520                                   5,311,520
                                                                                             foreign shares
Wang Jian                                                                        3,000,000 RMB ordinary shares               3,000,000
                                                                                             Domestically listed
Liu Guohong                                                                      2,454,941                                   2,454,941
                                                                                             foreign shares
Yunnan International Trust Co.
Ltd.– Ruihui 2 Capital Trust                                                    2,437,347 RMB ordinary shares               2,437,347
Plan
                                                                                             Domestically listed
UBS AG LONDON BRANCH                                                             2,339,805                                   2,339,805
                                                                                             foreign shares