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个股公告正文

深赛格B:2017年半年度报告(英文版)

日期:2017-08-29附件下载

              Fulltext of 2017 Semi-annual Report of Shenzhen SEG Co., Ltd.




Shenzhen SEG Co., Ltd.
2017 Semi-annual Report




     August 2017




                                                                         1
                                                      Fulltext of 2017 Semi-annual Report of Shenzhen SEG Co., Ltd.


                 Chapter 1 Important Notice, Contents, and Definitions
The Board of Directors, the Board of Supervisors, and the directors, the supervisors and
the senior executives guarantee that the semi-annual report is authentic, accurate, and
complete and that it has no false records, misleading statements or major omissions, and
they undertake joint and several legal liabilities.

Chairman of the Board Wang Li, the Chief Financial Officer Liu Zhijun and the
responsible person of the accounting institution (accountant in charge) Ying Huadong
hereby declare that the Financial Statements enclosed in this semi-annual report are true,
accurate and complete.

All of the directors have attended this board meeting to review the semi-annual report.

The future plans, development strategies and other forward-looking statements mentioned
in the semi-annual report do not constitute substantial commitments to investors of the
Company. Investors are advised to pay attention to investment risks.

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




                                                                                                                 2
                                                                               Fulltext of 2017 Semi-annual Report of Shenzhen SEG Co., Ltd.



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

Chapter 2 Company Profile and Major Financial Indexes ......................................................................6

Chapter 3 Summary of Company Business...............................................................................................9

Chapter 4 Management Discussion and Analysis ...................................................................................13

Chapter 5 Important Matters ...................................................................................................................33

Chapter 6 Changes in Share Capital and Information on Shareholders .............................................65

Chapter 7 Preferred Shares ......................................................................................................................70

Chapter 8 Directors, Supervisors and Senior Executives ......................................................................71

Chapter 9 Corporate Bonds ......................................................................................................................72

Chapter 10 Financial Report ....................................................................................................................73

Chapter 11 Documents Available for Reference....................................................................................202




                                                                                                                                                 3
                                                                 Fulltext of 2017 Semi-annual Report of Shenzhen SEG Co., Ltd.


Definitions
                     Definition                  refers to                              Description

This Company, the Company, the listed company,
                                                 refers to   Shenzhen SEG Co., Ltd.
SHEN SEG

SEG Group                                        refers to   Shenzhen SEG Group Co., Ltd.

Longgang SEG                                     refers to   Shenzhen SEG Electronics Market Management Co., Ltd.

Suzhou SEG                                       refers to   Suzhou SEG Electronics Market Management Co., Ltd.

Suzhou SEG Digital                               refers to   Suzhou SEG Digital Plaza Management Co., Ltd.

Nanjing SEG                                      refers to   Shenzhen SEG Nanjing Electronics Market Management Co., Ltd.

Xi'an SEG                                        refers to   Xi'an SEG Electronics Market Co., Ltd.

Xi'an Hairong SEG                                refers to   Xi'an Hairong SEG Electronics Market Co., Ltd.

Changsha SEG                                     refers to   Changsha SEG Development Co., Ltd.

Wujiang SEG                                      refers to   Wujiang SEG Market Management Co., Ltd.

Wuxi SEG                                         refers to   Wuxi SEG Electronics Market Co., Ltd

                                                             Foshan Shunde SEG Electronics Market Management Co., Ltd. in
Shunde SEG                                       refers to
                                                             Foshan

Nanning SEG                                      refers to   Nanning SEG Digital Plaza Management Co., Ltd.

Shanghai SEG                                     refers to   Shanghai SEG Electronics Market Operation Management Co., Ltd.

SEG Baohua                                       refers to   Shenzhen SEG Baohua Enterprise Development Co., Ltd.

SEG Industry                                     refers to   Shenzhen SEG Industrial Investment Co., Ltd.

SEG Credit                                       refers to   Shenzhen SEG Credit Co., Ltd.

Nantong SEG                                      refers to   Nantong SEG Times Plaza Development Co., Ltd.

Nantong SEG Operation Company                    refers to   Nantong SEG Commercial Operation Management Co., Ltd.

SEG Intelligent                                  refers to   Suzhou SEG Intelligent Technology Co., Ltd.

SEG Investment                                   refers to   Shenzhen SEG Investment Management Co., Ltd.

                                                             Shenzhen SEG Longyan New Energy Application and Development
SEG Application                                  refers to
                                                             Co., Ltd.

SEG Longyan Technology                           refers to   Shenzhen SEG Longyan Energy Technology Co., Ltd.

SEG Lianzhong                                    refers to   SEG Lianzhong Internet Technology Co., Ltd.

SEG Zhongtong                                    refers to   Shenzhen SEG Zhongtong Technology Co., Ltd.

SEG Real Estate                                  refers to   SEG Real Estate Investment Co., Ltd.

SEG Property Development                         refers to   SEG Property Development Co., Ltd.

SEG Kangle                                       refers to   SEG Kangle Enterprise Development Co., Ltd.

SegMaker                                         refers to   Shenzhen SegMaker Co., Ltd.

SEG Property Management                          refers to   SEG Property Management Co., Ltd.



                                                                                                                              4
                                                                      Fulltext of 2017 Semi-annual Report of Shenzhen SEG Co., Ltd.


SEG New Urban                                        refers to   Shenzhen SEG New Urban Construction Development Co., Ltd.

                                                                 Four companies transferred inward through this asset re-organization,
Object companies                                     Refer to    including SEG Real Estate, SEG Proerty Development, SEG Kangle
                                                                 and SegMaker

Xi’an SEG Kanghong                                  refers to   Xi’an SEG Kanghong Property Co., Ltd.

Huizhou Qunxing                                      refers to   Huizhou Qunxing Real Estate Co., Ltd.

Beijing SEG                                          refers to   Beijing SEG Property Development Co., Ltd.

SEG Wisdom                                           refers to   SEG Wisdom Sports and Culture Development Co., Ltd.

Mellow Orange Hotel                                  refers to   Shenzhen Mellow Orange Business Hotel Management Co., Ltd.

Maker Hotel                                          refers to   SEG Maker Hotel Management Co., Ltd.

Huakong SEG                                          refers to   Shenzhen Huakong SEG Co., Ltd.

SEG Navigations                                      refers to   Shenzhen SEG GPS Scientific Navigations Co., Ltd.

                                                                 China International Consumer Electronics Exchange/Exhibition
CEEC                                                 refers to
                                                                 Center

Longyan Energy Technology                            refers to   Longyan Energy Technology (Hangzhou) Co., Ltd.

Wangyu Technology                                    refers to   Shanghai Wangyu Information Technology Co., Ltd.

Tencent                                              refers to   Shenzhen Tencent Computer System Co., Ltd.

Fujian Babycat                                       refers to   Fujian Babycat Animation Technology Co., ltd.

Zhuhai Zhongtong                                     refers to   Zhuhai Zhongtong Lexing Network Technology Co., Ltd.

Allied eSports                                       refers to   Tianjin Allied eSports Internet Technology Co., Ltd.

                                                                 State-owned Assets Supervision and Administration Commission of
Shenzhen SASAC                                       refers to
                                                                 the People's Government of Shenzhen Municipality

CSRC                                                 refers to   China Securities Regulatory Commission

                                                                 Shenzhen Securities Regulatory Bureau of China Securities
Shenzhen Securities Regulatory Bureau                refers to
                                                                 Regulatory Commission

Articles of Association                              refer to    The Articles of Association of Shenzhen SEG Co., Ltd.

Unless otherwise specified, the amount referred to
                                                     refers to   Amount in CNY
in the report




                                                                                                                                     5
                                                                                 Fulltext of 2017 Semi-annual Report of Shenzhen SEG Co., Ltd.


                          Chapter 2 Company Profile and Major Financial Indexes

I. Company profile
Stock abbreviation                     SHEN SEG, SHEN SEG B                         Stock code                    000058, 200058

Changed stock abbreviation (if any)    None

Listed on                              Shenzhen Stock Exchange

Company name in Chinese                深圳赛格股份有限公司

Company        in Chinese (if any)     深赛格

Company name in English (if any)       SHENZHEN SEG CO., LTD.

Company name abbreviations in
                              None
English (if any)

Legal representative                   Wang Li


II. Contact information
                                                Secretary of the Board of Directors                    Securities affairs representative

Name                                   Zheng Dan                                             Zhang Xin

                                       31/F, Tower A, the Stars Plaza, Huaqiang Road 31/F, Tower A, the Stars Plaza, Huaqiang Road
Contact address
                                       (N), Futian District, Shenzhen                (N), Futian District, Shenzhen

Phone                                  0755-83747939                                         0755-83747939

Fax                                    0755-83975237                                         0755-83975237

E-mail                                 segcl@segcl.com.cn                                    segcl@segcl.com.cn


III. Other information
1. Contact information of the Company
Are the registered address, office address, zip code, website and e-mail address of the Company changed in the reporting period?
□ Applicable √ Not applicable
No changes in the registered address, office address, zip code, website and e-mail address of the Company in the reporting period, please
refer to 2016 Annual Report.

2. The place of information disclosure and filing
Is the information disclosure and filing site changed in the reporting period?
□ Applicable √ Not applicable
The newspaper specified by the Company to disclose information, the website specified by CSRC to publish the semi-annual report and the
filing site for the semi-annual report are not changed in the reporting period,please refer to 2016 Annual Report for detailed information.


IV. Major accounting data and financial indexes
Are retrospective adjustments required to previous financial statements?
√ Yes □ No
Reason for retrospective adjustments or restatement



                                                                                                                                            6
                                                                                  Fulltext of 2017 Semi-annual Report of Shenzhen SEG Co., Ltd.


Merger of enterprises under common control

                                                                                                                                 Year-on-year
                                                     Amount of the         Amount of the same period of the previous year
                                                                                                                               increase/decrease
                                                    reporting period
                                                                              Before adjustment         After adjustment       After adjustment

Operating revenue (Yuan)                                 592,346,626.22              362,673,236.85        724,213,525.00                -18.21%

Net profit attributable to shareholders of the
                                                          50,008,785.42                26,856,270.42       104,913,059.48                -52.33%
listed company (Yuan)

Net profit attributable to shareholders of the
listed company after deduction of                                                      28,696,459.47                                    13.21%
                                                          30,778,883.27                                     27,187,695.79
non-recurring profit or loss (Yuan)

Net cash flow arising from operating
                                                          93,125,278.74               -99,314,028.40        70,386,258.79                 32.31%
activities (Yuan)

Basic EPS (Yuan/Share)                                           0.0405                       0.0342                 0.0849              -52.30%

Diluted EPS (Yuan/Share)                                         0.0405                       0.0342                 0.0849              -52.30%

Weighted average ROE                                              2.67%                       1.82%                  4.67%                -2.00%

                                                                                                                                 Year-on-year
                                                                                         Year-end amount
                                                    Closing amount                                                             increase/decrease

                                                                              Before adjustment         After adjustment       After adjustment

Total assets (Yuan)                                     7,423,262,800.40            2,548,276,265.32     6,923,273,093.64                  7.22%

Net assets attributable to shareholders of the
                                                        1,793,775,473.28            1,548,200,647.55     2,412,301,070.04                -25.64%
listed company (Yuan)


V. Differences of accounting data under Chinese and overseas accounting standards
1. Differences in net profits and net assets reported in the financial statements disclosed under
international accounting standards and Chinese accounting standards
□ Applicable √ Not applicable
In the reporting period, the Company's net profits and net assets have no differences in the financial report disclosed based on both the
international and the Chinese accounting standards.

2. Differences in net profits and net assets reported in the financial statements disclosed under
overseas accounting standards and Chinese accounting standards
□ Applicable √ Not applicable
In the reporting period, the Company's net profits and net assets have no differences in the financial report disclosed based on both the
international and the Chinese accounting standards.


VI. Items and amount of non-recurring profit or loss:
√ Applicable □ Not applicable
                                                                                                                                       Unit: Yuan

                                                 Item                                                       Amount                  Remarks

Profit or loss on disposal of non-current assets (including the write-off of assets depreciation
                                                                                                                 -111,492.83
reserves)



                                                                                                                                                   7
                                                                             Fulltext of 2017 Semi-annual Report of Shenzhen SEG Co., Ltd.


Government subsidies included in current profit or loss (except those closely related with
                                                                                                             3,716,243.11
corporate business and enjoyed according to national standards or certain quota)

Capital occupation fee collected from non-financial enterprises recognized in current profit
                                                                                                             1,676,532.33
or loss

Current net profit or loss of subsidiaries arising from merger of enterprises under common
                                                                                                           10,632,970.72
control from the beginning of the period to the date of merger

Trustee fee income from entrusted operation                                                                     68,759.04

Other non-recurring profit or loss items                                                                   10,467,166.60

Less: Amount of affected income tax                                                                          3,242,832.45

     Amount of influence of minority shareholders' equity (after tax)                                        3,977,444.37

Total                                                                                                      19,229,902.15           --

An explanation shall be made with regard to the Company's considerations for defining non-recurring profit and loss according to the
Explanatory Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public—Non-recurring Profit
and Loss and the reason of classifying the non-recurring profit and loss listed in this announcement as recurring.
□ Applicable √ Not applicable
In the reporting period, it does not happen that the Company defines the non-recurring profit and loss items defined or listed by Interpretive
Bulletin No. 1 on Information Disclosure by Companies Publicly Issuing Securities - Non-recurring Profit or Loss as recurring profit and loss
items.




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                              Chapter 3 Summary of Company Business

I. Main business in the reporting period

Should the Company abide by the disclosure requirements of special industries?

No.

(I) Main business and operation model
In order to reduce horizontal competition, enhance the profitability and core competitiveness of the Company, and
complete transformation and upgrading of the existing business, the Company has carried out major assets
restructuring. the Company intended to purchase 100% of the equity of SegMaker, 55% of the equity of SEG
Kangle, 100% of the equity of SEG Property Development and 79.02% of the equity of SEG Real Estate held by
SEG Group by means of issuing shares and paying cashes to acquire assets (see the Report of Share Issuance and
Cash Payment to Acquire Assets and Raise Funds & Connected Transactions for details). On January 17, 2017,
the Company received the approval on the major assets restructuring issued by the CSRC. The Company has
completed asset transfer and issued 450,857,239 shares to SEG Group, and the newly issued shares were listed on
March 6, 2017.
After reconstructing, the main business of the Company has not changed greatly, including the development and
operation of electronics markets and supporting projects, property leasing services, city complex (industrial park)
real estate business, marker business, new energy business, value-added small loan business, economical hotel
business, trade and channel business.
Business model: On the basis of the electronics markets, commercial real estate (industrial parks), and CdTe solar
energy, the Company combines multiple business models, develops the overall resource advantages, accelerate
transformation and upgrading of the original main business, expands from operation of a single business platform
to the content production and operation, creates a business model combining multiple business types, including
the maker ecosystem, culture & education, intelligent technology, sports & entertainment, virtual experience,
e-sports, financial services, and construction of industrial parks, and builds a new SEG industrial ecosystem. The
Company marches from a single role of electronics market leasing into diversified strategic emerging industries
and high-end manufacturing and services. By innovating in the business model and integrating business resources,
the Company aims to create a platform for diversified strategic emerging industries and become a leader in
high-end manufacturing and services. The Company supports innovative business relying on the traditional
electronics market business, deploys full industry chains, and develops electronic information products, smart
electronic applications, supply chain financial services, strategic emerging industries, high-end manufacturing and
services.
(II) Current situation of industries which the Company mainly deals in
(1) Electronics market industry
Under the continuous impact of e-commerce, the traditional electronics market industry focuses on innovation in
the original business model: a. transforms from a single electronic trading platform to a complex business type
platform combining culture, science & technology, intelligence, sports, and financial services; b. transforms
enterprises engaged in electronics market operation from a single leasing role to platform operators and service
providers that integrate online and offline resources; c. supports innovative business based on the existing
electronics market business resource platform, deploys full industry chains, and develops electronic information
products, smart electronic applications, supply chain financial services, strategic emerging industries, high-end
manufacturing and services.

                                                                                                                              9
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(2) Commercial real estate industry
In recent years, in the context of economic policy stimulus, rapid growth of total retailing of social consuming
goods, and transformation of the traditional department stores, China's commercial real estate witnesses
continuous rapid development. At present, China's real estate market enters the new normal state. The government
becomes more rational and attaches more importance to market regulation and control. As the market mechanism
and the investor sentiment become mature, commercial real estate will step into a rational and stable development
stage.
(3) Maker industry
Relying on its advantages in the electronic component industry, Shenzhen has initially formed three maker
clusters, namely Qianhai, Civic Center, and Huaqiangbei, and has full maker industry chains including the maker
space, venture capital, crowd funding platforms, incubators, and electronic supply chains. The construction of the
maker ecosystem is an important trend for economic transformation and upgrading of Huaqiangbei. At present,
the maker industry enters the stage of survival of the fittest, and equity investment tends to be rational.
(III) Industrial position of the Company
Having been dedicated to the electronics market industry for nearly 29 years, the Company is the founder of the
electronics market operation model of China and a leader in the industry. The Company has established more than
20 electronics markets in China by means of direct operation, joint operation, and entrusted operation, has formed
an electronics market chain system covering Zhujiang River Delta and Yangtze River Delta and radiating the whole
country, and has gained high brand influence both at home and abroad.

II. Significant changes in main assets

1. Significant changes in main assets



                Main assets                                     Description of Significant Changes


                                    Long-term equity investment decreases by RMB 6.99 million (or 3.43%) over the
                                    beginning of the period, mainly due to losses of Huakong SEG, CEEC, SEG Real Estate,
Equity
                                    CEEC and SEG Wisdom based on accounting by the equity method in the reporting
                                    period.

Fixed assets                        There is no significant change in the reporting period.

                                    Intangible assets increase by RMB 28.55 million (or 1,064.52%) over the beginning of the
Intangible assets                   period, mainly because SEG Longyan obtained the land use right in Shenzhen-Shantou
                                    Cooperation Zone in the reporting period.

                                    Construction in progress increases by RMB 7.81 million (or 21.05%) over the beginning
Construction in progress            of the period, mainly due to increased investment in the property decoration and
                                    renovation of SEG Kangle Building in the reporting period.

                                    Lending funds decrease by RMB 40 million (or 100%) over the beginning of the period,
Lending funds
                                    mainly because SEG Credit recovered lending funds in the reporting period.

Accounts receivable                 Accounts receivable increase by RMB 21.24 million (or 36.04%) over the beginning of the


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                                         period, mainly because accounts receivable arising from trading business of SEG Industry
                                         increased by RMB 6.67 million, and property management expenses receivable on the
                                         accrual basis increased by RMB 13.13 million.

                                         Other non-current assets increase by RMB 75.18 million (or 544.62%) over the beginning
Other non-current assets                 of the period, mainly because prepayment for key equipment in the production line of
                                         CdTe film PV cell modules (RMB 88 million) of SEG Longyan was included in this item.


2. Main overseas assets

□ Applicable √ Not applicable


III. Analysis of the core competitiveness

Should the Company abide by the disclosure requirements of special industries?

No.

Shenzhen SEG Electronics market operated by the Company is the founder of the electronics market operation
model in China, leading in the industry. It has won honorable titles successively including "Five-star Market of
Electronic Products in China", "Most Influential Market in Shenzhen Special Area in 30 Years", “Top 10 Most
Influencial Shenzhen Branded Markets in China", "China's Top 10 Electronics Markets in 2016", and "China's
Electronics Market Operation Innovation Prize in 2016".
Dedicated to the electronics market for 29 years, the Company has acquired abundant market merchant resources
and mature market operation and management experience. As of today, the Company has set up more than 20
electronics markets in China by means of direct operation, joint operation and entrusted operation, has formed an
electronics market chain system covering Zhujiang River Delta and the Yangtze River Delta and radiating the
whole country, has become the largest comprehensive electronics market in China and even in Asia covering
electronic components, digital IT and communication products, and has gained high brand influence both at home
and abroad.
For the past several years, the Company has been exploring, innovating in, and practicing electronics market
business transformation and upgrading based on the traditional main business. Faced with new consumption, new
channels, and new retail, the Company expands from operation of a single business platform to the content
production and operation, creates a business model combining multiple business types, including the maker
ecosystem, culture & education, intelligent technology, sports & entertainment, virtual experience, e-sports, and
financial services, builds a new SEG industrial ecosystem, and provides one-stop and comprehensive consumption
experience to consumers.
In the reporting period, the Company has completed major assets restructuring and is raising funds. After
restructuring, by asset injection into quality electronics markets, property management, and commercial real estate,
the Company has reduced horizontal competition to the maximum extent, enriched the business structure,
enhanced the profitability and core competitiveness of the listed company, and achieved strategic integration,
transformation and upgrading of the existing business.
At present, the Company has developed in-depth cooperation with Longyan Energy Technology, Wangyu
Technology, Alibaba, Fujian Babycat, Tencent, and Zhuhai Zhongtong in new business fields, such as new energy,
e-sports, e-commerce, animation, makers, and WiFi on G-series high-speed trains. The Company has promoted

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the transformation and upgrading of the original business, developed new business, and achieved coordinated
development of multiple business types. The Company will develop diversified strategic emerging industries,
high-end manufacturing, and services.




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                      Chapter 4 Management Discussion and Analysis


I. Overview
In the first half of 2017, China's economy features stable consumption growth in the short term, pick up in investment,
and downward pressure.
In the reporting period, the Company has completed major assets restructuring. Benefiting from injection of core
business assets into the electronics market, the scale of the main business of the Company will expand. Benefiting from
asset injection into commercial real estate and property management, the business of the Company will interwork. In this
way, the core competitiveness and sustaible operating ability of the Company will be enhanced.
Facing fierce market competition and the continuous impact of e-commerce, the Company is dedicated to user value,
integrates resources, further expands the industrial chain, improves the service quality of electronics markets, creates a
business model combining multiple business types, including the maker ecosystem, culture & education, intelligent
technology, sports & entertainment, virtual experience, e-sports, and financial services, vigorously promotes
transformation and upgrading of the traditional electronics market business, explores new business development models,
and continuously improves the operating capacity and profitability of the Company .
In the reporting period, the total operating income from the Company amounted to RMB 625,086,000 and decreased by
19.22% over the same period last year. The total profit amounted to RMB 103,484,000 and decreased by 49.21% over
the same period last year. Main reasons for decrease in the operating income: (1) As the sales revenue of the project of
SEG New Urban is not eligible for recognition, the real estate income and profit of SEG Real Estate is expected to be
recognized in the second half of 2017; (2) The purchasing agent business of SEG Industry is gradually terminated. The
main reason for decrease in the total profit: (1) In the same period of last year, SEF Real Estate transferred 48 sets of
properties and received the nonbusiness income of RMB 60,590,000, but such a business income did not occur in this
year. (2) As the sales revenue of the project of SEG New Urban cannot be recognized now, the real estate income and
profit of SEG Real Estate is expected to be recognized in the second half of 2017.

II. Analysis of main business
Overview
The main business of the Company includes the development and operation of electronics markets and supporting
projects, property leasing services, city complex (industrial park) real estate business, marker business, new energy
business, small loan business, economical hotel business, trade and channel business.
1. Operation of electronics markets
With the rapid development of various shopping behaviors, such as online shopping, the electronics markets have been
affected to some extent. In face of the difficulties, the Company actively transforms and upgrades its existing electronics
market business, and adopts a compound business model to create a comprehensive electronics market where multiple
business patterns can harmoniously co-exist. These efficient measures ensure a stable operating ability for the Company,
and also create new profit opportunities. As of June 2017, the new projects of the Company had been operating stably,
and the corporate transformation and development strategy had gained obvious achievements.
In the reporting period:
Children's amusement park project: The park in Nantong branch store has been operating stably. The project team is
planning to open a new park in Longgang branch store and the park is currently under decoration.
Internet caféand e-sports project: The "Nantong Area Finals of the Second SEG E-Sports Suzhou-Nantong Competition"
have been successfully rolled out in the Nantong branch store. The Nantong store has also cooperated with Nantong TV
Station and local colleges to jointly host multiple e-sports competitions. The e-sports business also has been officially
launched in the Suzhou branch store.
SEG-OURGAME e-sports stadium: The construction of e-sports stadium in Shenzhen branch store has been finished by
now, and the procedures of applying for examination and approval of fire protection and for relevant certificates and
licenses. After the stadium is transferred and handed over, it will be able to host e-sports competitions.



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Taobao e-commerce project: By the project, the Company cooperates with Taobao stragetically to develop value-added
service in O2O electronics market with SEG characteristics through build up on-line and off-line business platform. By
the end of June 2017, the Gross Merchandise Volume (GMV) of the Company's online shop is about 1 billion yuan.
Around 2600 suppliers have applied to move in the shop, among them 1500 have officially started their businesses. Up
to date, SEG has already started to charge operation fees from the suppliers moved in.
2. Property leasing and management services
The property leasing services of the Company are carried out both by its headquarters and holding companies, including
SEG Baohua, SEG Real Estate, SegMaker, SEG Kangle, and Nantong SEG Business Operation Company. During the
reporting period, the Company implemented many efficient operation measures, including improving its property
management capabilities and service quality, cutting down costs and expenses, and attracting more investments. The
occupancy rates of SEG Baohua and SEG Kangle properties maintain at 99%. The overall performance of the property
leasing services is stable and strong.
Since its operations, Nantong SEG Times Plaza has been improving its internal management quality and coordinating
various external resources to introduce investments. With these efforts, the passenger traffic of the square has been
increasing and the brand influence and market value of SEG are greatly enhanced in the Nantong area. As of the end of
June 2017, the occupancy rate of SEG Times Plaza had reached 86.1%. Through brand adjustment, the square has
introduced many renowned children training institutes to move in, including the Starlight Dance Training, YMM Art
Education Group, and Rise Subject English. The children training businesses of the square have formed a considerable
scale. In the first half of 2017, the Animation Industrial Park of Nantong SEG Times Plaza received a cultural fund of
300,000 yuan from Nantong municipal government. At the same time, the original animation products of the industrial
park won the Best Works Award granted by the Jiangsu provincial government. The influence of the animation industrial
park is obviously promoted.
Aiming at the dwelling demand of customers who are dealing in domestic and foreign trade in Huaqiangbei electronics
industry, SEG Business Apartment of SEG Maker adopts the method of combining long-term and short-term lease to
enhance the property value. At the same time, it interacts and share resources with SEG Communication Market. The
apartment was set up through rebuilding Building 6, SEG Garden which is situated in Huaqiangbei and Huaqiangnan
metro circle. Since the operation from 2013, the occupation rate has been stabilized aound 90%, much higher than that of
the surrounding apartments of the same type.
In the reporting period, Beijing SEG, the holding subsidiary of SEG Real Estate, leases 17F (whole floor), Office Tower
A, Air China Building, No.36, Xiaoyun Road, Chaoyang District, Beijing, with an covered area of 1694.73㎡, which is
woned by Beijing CA Property & Hotel Management Co., Ltd. CA Building Branch, and plans to rebuilt the building
into a business center of operation and service type. This project is the first one through which SEG Real Estate enters
into north China market as an important step for SEG Real Esatte to march towards the whole China. It will surely
promote the influence of SEG Real Estate’s brand.
3. City complex (industrial park) real estate business
After its reorganization, the real estate business of the Company includes two major projects: the development and
construction of urban complexes conducted by SEG Real Estate Company and Nantong SEG Times Plaza.
Progress of relevant real estate business in the reporting period:
(1) Nantiong Times Plaza Project
Engineering closing audit: Nantong Times Plaza Project now has completed the stage of engineering closing audit and
nown has entered into the stage of second audit (interim).
LOFT sales: As of the end of the reporting period, Nantong SEG has signed contracts of purchasing 11 sets of property
with an subscribed area of 688.65㎡.
(2) SEG New Urban Plaza (Phase 2) Project (SEG ECO Center)
SEG New Urban Plaza (Phase 2) Project is developed by SEG New Urban Investment Company, the holding subsidiary
of SEG Real Estate. The project locates at the intersection of Bulong Road in Buji Sub-district, Longgang District,
Shenzhen and Lianzhong Road (under planning). The total area of development of SEG New Urban (Phase 2) is 108,000
㎡, as a landmark complex project integrating 5A class office, regional flagship commerce, luxioury business apartment
and enterprise’s HQ base together. The project is awarded the title of “Shenzhen Significant Project” ans recommended
by Shenzhen Development & Reform Committee to be listed ibn Guangdong Province major projects. At present, the
project is under completion and acceptance phase.


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The project has obtained the license of pre-selling. As of the end of this report period, the total amount of pre-sales
transaction of this complex project has reached 1,431 million yuan (the final transaction amount is subject to the cost of
formally signed contracts), therein, 510 sets of apartments with the transaction amount of 796 milliom yuan; 77 sets of
pre-sold offices with the transaction amount of about 379 million yuan; and 55 sets of pre-sold commercial property with
transaction amount of 256 million yuan. The complex project is estimated to finish completion and acceptance within
this year.
(3) Huizhou Qunxing SEG Plaza Project
Huizhou Quanxing launched another landmark project in Huizhou in late 2012, i.e. SEG Holiday Plaza with 30,000 ㎡.
The whole project is schedured to be developed through three phases. The positioning of the project is a life and fashion
and culture center in Huizhou, i.e. a commercial complex integrating shopping, relaxation, catering, culture and
entertainment. Now the first phase of the project is under construction with an area of 100,000 ㎡, comprising “5A class
eco-office + experiencing-type commercial shopping center”. The sale of 5A Class eco-office of SEG Holiday Plaza
(Phase 1), i.e., SEG Plaza, was the champion in both 2015 and 2016 even when the sale of real estate was in depression.
On April 14, 2017, SEG Holiday Plaza opens officially and now the investment is being attracted worldwide.
In the report period, the business of SEG Holiday Plaza (Phase 2) is acrtively pushed forward. Now the calculation of
feasibility of Phase 2 project has been finished and the initial concept scheme is waiting for examination and approval.
On April 15, 2017, SEG Qunxing signed with the government of Huicheng Disrtric and China Film Association
Animation Film Working Committee the Framework Agreement of Placing Tianma Cup Competition in Huizhou,
deciding to organize activities to promoting the 2nd Tianma Cup of Chinese animation and films competition to facilitate
holding Tianma Cup event in Huizhou. Through building “Huizhou SEG International cartoon and animation Industry
Zone” in Huizhou and organize the event of “International Cartoon and animation Week for One Belt and One Road
(OBOR)”, SEG will promote Chinese cartoon and animation and film industry to develop towards internationalization.
(4) Xi’an SEG Plaza Project
Xi’an “SEG Plaza Project” is invested and built by Xi’an SEG Kanghong Investment Company, the holding subsidiary
of SEG Real Estate. The project locates at No.40, No.6 Gaoxin Road, Gaoxin District, Xi’an (i.e. the south-west corner
of intersection of No.2 Keji Road and No.6 Gaoxin Road). The project will integrate the commercial activities including
electronics market, relaxation and entertainment, catering, finance, and high-end office and apartment and etc., and build
self-owned property “SEG IT MALL” to form an experiencing-type metropolitan complex with regional radiating
influence mainly in office, electronics market, movie theatre and relaxation and catering.
In the reporting period, the project has completed all the procedures of planning and applying for approval, and also
obtained the License of Construction Project Planning.
(5) SEG Wisdom Sports Industry Project
In sports industry, SEG Real Estate cooperates with Shenzhen Wisdom Sports Building Investment Co., Ltd. and they
have established a joint venture SEG Wisdom Company, and will jopintly invest in developing and operating the
“Internet + Sports” complex sports project Dongle Rubik’s Cube, and exploring the “Cloud” management platform for
sports and health, smart sports facilities display and experience, and physical sports buildings.
SEG Wisdom has established strategic cooperation relation with the governments of Futian District and Bao’an Distric,
and successfully signed agreement on organizing the first round of OBOR Maarathon series games, i.e. Shenzhen
International Marathon Competition and on September 7, 2016, launched the 1st Bao’an Marathon Competition in
Shenzhen. Furthermore, in 2017, SEG Wisdom promotes business in many fields, such as sports games (Marathon and
football), training (basketball, badminton and teenage’s football and so on), and sports building project (sports theme
park and so on). At present, the first sports building operated by SEG Wisdom, Bao’a, Songgang Sports Center officially
opened on July 25, 2017.
4. Maker business
The Company centers on the maker ecological industry, and its maker business includes SEG business centers, SEG
business apartments, and SEG Maker Space. SEG Maker Space was established in June 2015. Based on the maker
business in the Huaqiangbei commercial area and the various business sectors of SEG Group, the Maker Space utilizes
the advantages of SEG in the industry, brand, and capital, gathers possible resources from the electronics information
industry and market, and provides all-round services to maker groups, satisfying their requirements on product launch,
exhibition, road show, market expansion, sales, financing, experience sharing, and training. SEG Maker Space aims to
facilitate the industrial development of maker products, and to enable the deep integration of the industrial chain and
innovation chain.


                                                                                                                            15
                                                                  Fulltext of 2017 Semi-annual Report of Shenzhen SEG Co., Ltd.


During the reporting period, SEG Maker Space was certified by Shenzhen Municipal Development and Reform
Commission as well as Shenzhen Human Resources and Social Security Bureau as the "First Batch of Innovation and
Entrepreneurship Bases in Shenzhen" and "Shenzhen Overseas Returnees Entrepreneurship Park". It has gained a special
support fund of 5.25 million yuan from Shenzhen Municipal Government. At the same time, it has launched many maker
activities, including the "Canadian High-end Project Road Show and Cooperation Fair", "Taiwan Young Entrepreneur
Representatives Seminar", "China – Italy Innovation & Entrepreneurship Investment and Cooperation Fair", "2017
Huaqiangbei – SEG Maker Banquet", and "Huawei LiteOS Hackathon Competition". These activities offered the maker
teams in and outside China a good opportunity to share experience. On one hand, the activities can generate good social
effects and boost the popularity of SEG Maker Space. On the other hand, they can win more maker project opportunities
for SEG Maker Space, ensuring its sustainable development.
(1) Equity investment: SEG Maker Space has reached cooperative intentions with Ouwo and Baonuo entrepreneurial
teams, and agreed to exchange market expansion resources and rent for project equities.
(2) Space leasing: The overall occupancy rate of SEG Maker Space maintains at 90%. A total of 260 entrepreneurial
teams and small- and medium-size enterprises have moved in, covering such fields as TMT, artificial intelligence, robots,
smart hardware, VR, and 3D printing.
Hongtu SEG Intelligence Industry Investment Funds: As of the end of the report period, Shenzhen Hongtu SEG
Investment Management Co., Ltd. and Shenzhen Hongtu SEG Intelligence Industry Investment funds ( limited
partnership)have completed the procedures of regislation of industry and commerce and now are handling the
procedures of regislation and record in China Securities Investment Fund Industry Association. At the same time, the
project preparation and investigation are just being carried out. On August 16, 2017, the event jointly organized by SEG
Group and Shenzhen Chuangxin Investment Co., Ltd. under the name of “Innovation in China: Shenzhen Station, SEG
Creates Future” (and the news press of Hongtu SEG Funds) was successfully held in Shenzhen Wuzhou Hotel, attracting
over 300 guests nationiwde, including important VC investors, famous and young entropreneurs and media
professionals.
After re-organization, the company’s maker business focuses on the business of Maker Branch and SegMaker.
Under the background of national strategy, i.e. “Mass entropreneurship and innovation”, the company takes innovative
products as its core competence, and invested and established Maker Branch oin Auguast 2015 responsible for operating
the project of CEEC”. Through the one-year development, Maker Branch has set up cooperation relation with more than
60 brand manufacturers, signed cooperation agreement with above 50 insititutions and held over 60 events covering
various themes, and over 300 types of products are exhibited in CEEC. All these efforts are popular in the business circle.
Meanwhile, Maker Branch also actively promotes educational projects on maker for teenages. As of the ende of June
2017, the educational project on maker for teenages has been awarded the title “Shenzhen Educational Base of
Popularization of Science” by Shenzhen Association for Science and Technology. Such educational training on various
topics was held for over 40 times. .
In the reporting period, in order to further develop the educational project on maker for teenages and build up complete
SegMaker eco-shpere, the company and Shenzhen Yingmengxin Technology Co., Ltd. jointly invested RMB 10 million
yuan in establishing Shenzhen SEG Yicheng Technology Co., Ltd. (the specific name is subject to the registration in the
industry and commerce administration). The capital will be used to build SEG Maker Education and Technology
Exploration Hall (For details, please refer to Noticeof Investing to Establish Shenzhen SEG Yicheng Technology Co., Ltd.
and Build SEG Maker Education and Technology Exploration Hall disclosed by the Company on August 11, 2017). The
original project professionals of Maker Branch merged into the business team of that company.
The SegMaker’s maker business focuses on the maker’s ech-sphere integrating SEG business center, SEG business hotel
and SEG maker space as a whole. Therein, SEG Maker Space was founded in June 2015, relying on Huaqiangbei maker
business and the business sections of SEG Group, and integrating the advantages of industries, brands and capital of
SEG Group and coordinating the industrial and marketing advantages in IT industry to provide the makers with the
comprehensive serves including new products issuance, display, route-show, promotion, transaction, financing and
makers’ communication and training to help the development of maker products industrialization and to deeply merge
industial chains and innovational chain.


5. New energy business
The new energy market has a great potential. With its green and environment-friendly features, it is supported and
facilitated by the government. Among the enterprises that embark on the CdTe thin-film industry, Longyan Energy


                                                                                                                            16
                                                                         Fulltext of 2017 Semi-annual Report of Shenzhen SEG Co., Ltd.


Technology (Hangzhou) Co., Ltd. owns completely independent intellectual property rights in the CdTe thin-film battery
modules, and is an industry-leading company in the world. In April 2017, Longyan Application won the bidding for the
use right of a parcel of state-owned construction land numbered "E2016-0025" in Ebu Town, a special cooperation
district between Shenzhen and Shantou, with 28.01 million yuan. The success of this bidding ensures the smooth rollout
of the CdTe thin-film project. At present, the project is under site leveling and land consolidation.
6. Small loan business
In the first half of 2017, the China central government launched a series of strategies to protect finance security and
stabilize economic development. In order to reduce operating risks, SEG Credit has carried out a variety of measures,
such as shrinking business size, standardizing its business process, reinforcing project approval and supervision, strictly
investigating important projects and customers, and strengthening interest collection. With these measures, the company
has achieved a normal operation.
7. Economical hotel business
The economical hotel business of the Company consists of two brands: the SEG Baohua Mellow Orange Hotels and
SEG Maker Hotels. At present, there are four Mellow Orange Hotels in Changsha, Xingsha, Bao'an, and Dongmen. The
Mellow Orange Hotel in Dongmen has been in trial operation since January 2017.
SEG Maker Hotel began soft opening in early 2017. Because it locates in the prime area of Huaqiangbei and
Huaqiangnan commercial circle, which metro runs through and accompanies with Maker Space and SEG
Communication Market, it operates well by far.
8. Trade and channel business
The trade and channel business of the Company includes SEG Industrial Company and SEG Intelligent Technology Co.,
Ltd. During the reporting period, SEG Intelligent Technology Co., Ltd. expanded its business to the smart home and
engineering market, and segmented its existing services. By doing so, the Company becomes more agile to the market
situation and can efficiently capture market opportunities. The SEG Industrial Company has filed a law suit against its
previous cooperation partner for its late payment, and is trying to protect the Company's interests through legal measures.
Now, the relevant trade services have been halted.


Year-on-year changes in main financial data
                                                                                                                            Unit: Yuan

                                                                          Year-on-year
                                                 The same period of the
                          The reporting period                          increase/decrease               Reason for change
                                                     previous year
                                                                               (%)

Total operating income          625,085,852.24          773,791,120.91           -19.22%

Operating cost                  426,661,521.04          527,378,769.17           -19.10%

Sale expenses                    18,930,296.04           15,452,527.47            22.51%

                                                                                         In the reporting period, Nantong SEG Times
                                                                                         Plaza and SEG Longyan incurred
Management expenses              62,603,332.15           48,360,132.61            29.45% management expenses. In the same period last
                                                                                         year, Nantong SEG Times Plaza was not open
                                                                                         yet and SEG Longyan was not established yet.

                                                                                         Nantong SEG Times Plaza has been put into
Financial cost                    9,997,883.43            5,084,244.72            96.64% operation, and the capitalization of the
                                                                                         borrowing cost of the project is stopped.

                                                                                         Compared with the same period of previous
Income tax                       38,782,427.00           58,174,040.67           -33.33% year, total profits decreases, so the income tax
                                                                                         fell accordingly.

R&D investment                     156,656.92               127,447.60            22.92%




                                                                                                                                      17
                                                                               Fulltext of 2017 Semi-annual Report of Shenzhen SEG Co., Ltd.


                                                                                Year-on-year
                                                       The same period of the
                                The reporting period                          increase/decrease                Reason for change
                                                           previous year
                                                                                     (%)

                                                                                               Properties held and leased by the Company
Net     cash     flow   from
                                      93,125,278.74            70,386,258.79            32.31% increased over the same period last year, and
operating activities
                                                                                               cashes from operating activities increased.

                                                                                               Cashes used by SEG Longyan to purchase the
Net cash flow from investing
                                    -112,220,284.03            21,719,468.61          -616.68% CdTe production line and the land use right
activities
                                                                                               increased.

                                                                                               In the reporting period, borrowed cashes of
Net cash flow arising from
                                     110,562,243.93           244,451,134.98           -54.77% the Company decreased over the same period
financing activities
                                                                                               last year.

Net increase in cash and cash                                                                     Borrowed cashes decreased and cashes paid
                                      91,467,238.64           336,556,880.18           -72.82%
equivalents                                                                                       for investment increased.

                                                                                               In the reporting period, the Company paid the
                                                                                               value-added tax (VAT). In January through
                                                                                               April, before the implementation of the
                                                                                               program of replacing business tax with VAT,
                                                                                               the Company paid the business tax for real
Tax and surtax                        10,579,222.45            39,850,665.86           -73.45% estate development, electronics markets,
                                                                                               property management, and financial business.
                                                                                               VAT is a tax excluded in prices and not listed
                                                                                               in the income statement. The business tax is a
                                                                                               tax included in prices and included in tax and
                                                                                               surtax item of the income statement.

                                                                                               In the same period last year, SEG Credit
                                                                                               granted loans and carried out write-off of
Loss of impairment of assets            -542,043.79            -3,854,024.82           -85.94%
                                                                                               provisions for the impairment of advances,
                                                                                               which did not occur in the reporting period.

                                                                                               In the reporting period, CEEC incurred the
                                                                                               loss of RMB 7.32 million, and the Company's
                                                                                               income from investment decreased by RMB
Income from investment                   408,928.49             4,177,657.94           -90.21% 2.2 million. In the same period last year,
                                                                                               CEEC was not open yet. In the reporting
                                                                                               period, the income from bank financing
                                                                                               decreased.

                                                                                               The nmain cause is that in order to guarantee
                                                                                               the successfully promote the asset
                                                                                               reorganization, in the same period last year,
Non-operating income                   7,226,958.33            61,732,465.54           -88.29% SEG Real Estate obtained non-operating
                                                                                               income RMB 60.59 million from transfer of
                                                                                               48 houses. In the reporting period, no such
                                                                                               income was obtained.

                                                                                               In the same period last year, the Company
non-operating expense                    549,897.70             3,208,366.60           -82.86% paid the litigation compensation incurred by
                                                                                               Nanning SEG.

Major changes occur in the profit structure or the profit sources of the Company in the reporting period.
□ Applicable √ Not applicable


                                                                                                                                              18
                                                                        Fulltext of 2017 Semi-annual Report of Shenzhen SEG Co., Ltd.


No major changes occur in the profit structure or the profit sources of the Company in the reporting period.


Composition of main business
                                                                                                                            Unit: Yuan

                                                                                     Year-on-year                         Year-on-year
                                                                                                        Year-on-year
                                                                      Gross profit increase/decrease                    increase/decrease
                         Operating income       Operating cost                                       increase/decrease
                                                                         rate         of operating                        of gross profit
                                                                                                      of operating cost
                                                                                         income                                rate

Classified by industry

Electronics
marketElectronics              193,479,031.00        116,350,738.85       39.86%            10.37%             13.85%            -1.84%
market

Property leasing               121,726,160.66         68,705,515.52       43.56%           130.64%           138.22%             -1.80%

Property
                               118,900,199.47       102,337,645.71        13.93%            12.07%             15.32%            -2.43%
management

Trade                           87,570,279.99         88,442,699.84       -1.00%           -45.85%            -44.73%            -2.04%

Real estate
                                52,297,147.71         30,100,136.48       42.44%           -74.32%            -72.97%            -2.87%
development

Finance                         32,739,226.02          3,624,611.86       88.93%           -33.96%            -73.07%            16.07%

Hotel                           18,373,807.39         17,100,172.78        6.93%            47.02%             53.95%            -4.19%

Classified by product

Classified by region

Shenzhen                       423,517,409.24       256,863,576.72        39.35%            11.60%              1.83%             5.82%

Huizhou                         35,990,750.45         18,688,272.10       48.07%           -83.66%            -84.15%             1.62%

Suzhou                          91,981,251.40         88,328,125.18        3.97%           -13.36%            -13.99%             0.70%

Xi'an                           28,834,389.94         22,339,234.01       22.53%             -7.06%             4.67%            -8.69%

Changsha                        19,830,361.95         14,523,155.59       26.76%              1.08%             5.25%            -2.90%

Nanjing                         12,064,470.86         13,873,176.03      -14.99%             -2.63%           -12.19%           -14.99%

Nantong                          9,160,022.94          8,327,899.94        9.08%

Wuxi                             2,187,708.92          2,242,230.77       -2.49%           -35.13%             10.32%           -42.22%

Foshan                           1,519,486.54          1,475,850.70        2.87%              2.68%             7.65%            -4.48%
Property leasing:SEG Group transferred 170 houses to SegMaker for free in July 2016. Since then the incomes belong to
SegMaker, resulting in the operating income and profit increase dramatically. SEG Group transferred 170 houses to
SegMaker for free in July 2016. Since then the incomes belong to SegMaker, resulting in the operating income and profit
increase dramatically.
Trade: SEG Industrial Company terminated its trade business, leading to the sharp decease of income of trade business in
the reporting period.
Real estate development: A large sum of house payments of Huizhou Stars Real Estate project were carried forward in
profit and loss in the same period last year while remaining buildings of the project are sold in the reporting period and
fewer house payments are carried forward. The plaza project of New Urban has sold out the property of RMB 1.431



                                                                                                                                      19
                                                                            Fulltext of 2017 Semi-annual Report of Shenzhen SEG Co., Ltd.


billion yuan but the income is not eligible for recognition in the reporting period. It is estimated that part of such income
will be brought forward from the Quarter 4, 2017.
Finance: SEG Credit’s business shrinkage results in the decrease of operating income, however, the company practices
strict economy to lower down costs and improve its gross profit rate. .




III. Analysis of non-main business
√ Applicable □ Not applicable
                                                                                                                               Unit: Yuan

                                                 Percentage in the total
                             Amount                                                   Reason                      Sustainable or not
                                                         profit

Income from                                                                Financing income and income
                                    408,928.49                   0.40%                                   Sustainable
investment                                                                 from investment in associates

                                                                        Recognition of provisions for
                                                                        bad debt and write-off of
Impairment of assets               -542,043.79                   -0.52%                                   Partly sustainable
                                                                        provisions for credit losses in
                                                                        the previous year

                                                                       Government subsidies received
Non-operating
                                  7,226,958.33                   6.98% and income from liquidated    Partly sustainable
income
                                                                       damages

                                                                       1. Loss on disposal non-current
                                                                       assets RMB 110,000; 2.
                                                                       Donation RMB 100,000; 3.
Non-operating
                                    549,897.70                   0.53% attorney fee for the lawsuit of Not sustainable
expense
                                                                       Nanning SEG, energy-saving
                                                                       service fee, and other costs
                                                                       RMB 300,000.


IV. Assets and liabilities

1. Material changes in the composition of assets

                                                                                                                                 Unit: Yuan

                                                             End of the same period last year
                          End of the reporting period                                               Increase or
                                                                      (before trace)                                    Notes to material
                                                                                                    decrease in
                                          Percentage in                          Percentage in                              changes
                          Amount                                Amount                              percentage
                                           total assets                           total assets

                                                                                                                   Increase in the
Monetary fund                                     16.48%                                  5.78%             10.70% monetary fund of the
                       1,222,990,879.83                       143,304,754.16
                                                                                                                   subject company


Accounts receivable                                1.08%                                  3.20%             -2.12%
                         80,193,593.82                         79,456,363.98

                                                                                                                   The property of SEG
Inventory                                         49.49%                                 22.94%             26.56% Real Estate increased.
                       3,673,901,099.84                       568,759,249.94
                                                                                                                   Development




                                                                                                                                            20
                                                                             Fulltext of 2017 Semi-annual Report of Shenzhen SEG Co., Ltd.



Investment real estate                                  9.37%                             17.52%            -8.15%
                             695,584,278.68                      434,510,747.94

Long-term equity
                                                        2.65%                              7.63%            -4.98%
investment                   196,671,333.80                      189,295,871.13


Fixed assets                                            0.70%                              1.49%            -0.79%
                              51,807,396.55                       36,910,218.56

Construction in
                                                        0.60%                              0.00%             0.60%
progress                      44,898,411.15                                    -


Short-term borrowing                                    7.34%                             12.56%            -5.22%
                             545,000,000.00                      311,438,652.00

                                                                                                                   Increase in the
                                                                                                                   long-term borrowing
Long-term borrowing                                  10.40%                                0.00%            10.40%
                             772,250,000.00                                    -                                   of the subject
                                                                                                                   company




2. Assets and liabilities measured by fair value

√ Applicable □ Not applicable
                                                                                                                              Unit: Yuan

                                     Changes in fair
                                                          Changes in
                                          value                            Impairment
                                                       accumulated fair                      Monetary      Sales proceeds
                                      recognized in                       recognized in
        Item         Opening balance                        value                          amount in the in the reporting Closing balance
                                     profit or loss in                    the reporting
                                                        recognized in                     reporting period     period
                                      the reporting                          period
                                                            equity
                                         period

Financial assets

3.
Available-for-sale        683,290.58      -214,210.99                                                                          469,079.59
financial assets

Subtotal of
                          683,290.58      -214,210.99                                                                          469,079.59
financial assets

Total                     683,290.58      -214,210.99                                                                          469,079.59

Financial
                                 0.00            0.00                                                                                0.00
liabilities

Are major asset measurement attributes of the Company materially changed in the reporting period?
□ Yes √ No

3. Restricted asset rights as of the end of the reporting period

(1) Mortgaged assets

As of the end of the reporting period, the Company mortgaged self-owned houses for bank borrowings. The following
are mortgaged houses and the net value at the end of the reporting period:




                                                                                                                                       21
                                                                           Fulltext of 2017 Semi-annual Report of Shenzhen SEG Co., Ltd.


                                                                   Net value at the end of the
             Owner                        House name                                                           Remarks
                                                                        reporting period

Shenzhen SEG Co., Ltd.            4F of SEG Plaza                                 43,315,741.25     Mortgaged for bank borrowings

                                  Some floors of Window to
Shenzhen SEG Co., Ltd.                                                            51,476,952.71     Mortgaged for bank borrowings
                                  Modernization

Shenzhen SEG Co., Ltd.            31F of Stars Plaza                               9,150,016.33     Mortgaged for bank borrowings

Shenzhen SEG Co., Ltd.            Other houses                                     6,572,813.17     Mortgaged for bank borrowings

Shenzhen SEG Real Estate          See houses listed in Note
                                                                                  28,232,606.94     Mortgaged for bank borrowings
Investment Co., Ltd.              VII (45)

Huizhou Stars Real Estate         Some houses of SEG
                                                                                 119,691,853.07     Mortgaged for bank borrowings
Development Co., Ltd.             Holiday Plaza

             Total                                                               258,439,983.47


(2) Pledged assets

SEG New Urban, a sub-subsidiary of the Company, and Bohai International Trust Co., Ltd. ("Bohai Trust") have entered
into a contract of loan on trust. Bohai Trust shall grant a total loan of RMB 500,000,000.00 to SEG New Urban.
According to the Right Pledge Contract between SEG Real Estate, a subsidiary of the Company, and Bohai Trust, the
pledged right is 52.0461% of the equity of SEG New Urban held by SEG Real Estate.

V. Analysis of the investment situation

1. General
√ Applicable □ Not applicable

 Investment amount in the reporting period       Investment amount in the same period last
                                                                                                              Change
                (Yuan)                                        year (Yuan)

                            5,516,813,186.42                               135,463,224.43                                    3972.55%




                                                                                                                                     22
                                                                                                                                                Fulltext of 2017 Semi-annual Report of Shenzhen SEG Co., Ltd.

2. Significant equity investment in the reporting period
√ Applicable □ Not applicable
                                                                                                                                                                                                    Unit: Yuan

                                                                                                                                                      Investment
                                                                                                                               Progress
                                                                                                                                                      profit or loss Lawsuit Disclosur
  Investee       Main        Investment    Investment       Shareholdin    Source of               Investmen                   as of the   Estimate
                                                                                         Partner               Product type                              in the     involve e date (if Disclosure index (if any)
   name         business       mode          amount         g percentage    capital                t horizon                   balance     d income
                                                                                                                                                       reporting        d      any)
                                                                                                                              sheet date
                                                                                                                                                         period

                                                                                     Shenzhen
                                                                                     Rongqi
                                                                                     Mechanical
                                                                                     and
                                                                                     Electrical
                                                                       Issuance of
SEG Real                                                                             Equipment
                                                                       shares and
Estate        Real estate                 2,113,984,200.0                            Co., Ltd.,                               Transfer                                      January
                          Acquisition                           79.02% payment of                 Long-term Real estate                        0.00 3,888,812.73 No
Investment    development                               0                            employees                                completed                                     25, 2017
                                                                       consideration
Co., Ltd.                                                                            of SEG                                                                                              http://www.cninfo.com.c
                                                                       s
                                                                                     Real Estate,                                                                                        n
                                                                                     and the
                                                                                                                                                                                         Announcement of
                                                                                     labor union
                                                                                                                                                                                         Shenzhen SEG Co., Ltd.
                                                                                     of SEG
                                                                                                                                                                                         on Transfer of
                                                                                     Real Estate
                                                                                                                                                                                         Underlying Assets for
                                                                       Issuance of                          Electronics                                                                  Share Issuance and Cash
SEG Kangle    Electronics                                                              Harbin                                                                                            Payment to Acquire
                                                                       shares and                           markets and
Enterprise    markets and                                                              Haige                            Transfer                      12,502,739.0                       Assets and Raise Funds
                          Acquisition     310,244,700.00        55.00% payment of                 Long-term property                           0.00                No
Developmen    property                                                                 Group Co.,                       completed                                8                       & Connected
                                                                       consideration                        leasing
t Co., Ltd.   management                                                               Ltd                                                                                               Transactions
                                                                       s                                    services

                                                                       Issuance of
SEG
                                                                       shares and
Property    Property                                                                                           Property   Transfer
                      Acquisition         135,235,900.00       100.00% payment of None             Long-term                                   0.00 6,560,017.61 No
Developmen management                                                                                          management completed
                                                                       consideration
t Co., Ltd.
                                                                       s

Shenzhen      Electronics   Acquisition   2,597,682,400.0      100.00% Issuance of     None        Long-term Electronics      Transfer         0.00 16,615,312.3 No
SegMaker      markets,                                                 shares and                            markets,
                                                                                                                                                                                                              23
                                                                                                                                      Fulltext of 2017 Semi-annual Report of Shenzhen SEG Co., Ltd.
Co., Ltd.    property                                 0             payment of                            hotels,      completed                     2
             management                                             consideration                         property
             , and makers                                           s                                     management
                                                                                                          , and makers

                                                                                    Longyan
                                                                                    Energy
                                                                                    Technology
                                                                                    (Hangzhou)
                                                                                    Co., Ltd.,                                                                             http://www.cninfo.com.c
                                                                                    Shenzhen                                                                               n
                                                                                    Raytai
                                                                                                                                                                           Announcement of
SEG                                                                                 Technology
                                                                                                          CdTe Film                                                        Shenzhen SEG Co., Ltd.
Longyan                                                                             Photovoltai                         In
                      Establishmen                                  Self-owned                            PV power                                              Novembe on the Establishment of
Energy     New energy                      82,500,000.00   50.00%                   c           Long-term               preparatio   0.00 -2,395,988.98 No
                      t                                             capital                               station and                                           r 12, 2016 SEG Longyan Energy
Technology                                                                          Engineering                         n
                                                                                                          BIPV                                                             Technology Co., Ltd. and
Co., Ltd.                                                                           Co., Ltd.
                                                                                                                                                                           Launch of CdTe Film
                                                                                    and
                                                                                                                                                                           Photovoltaic Industrial
                                                                                    Shenzhen
                                                                                                                                                                           Base
                                                                                    Energy
                                                                                    Nanjing
                                                                                    Energy
                                                                                    Holding
                                                                                    Limited

                                                                                                                                                                         Announcement of
Shenzhen                                                                            Tianjin
                                                                                                                                                                         Shenzhen SEG Co., Ltd.
SEG                                                                                 Allied
           Internet                                                                                      Internet       In                                               on the Establishment of
Lianzhong                   Establishmen                            Self-owned      eSports                                                                     December
           access                           8,250,000.00   55.00%                              Long-term access         preparatio   0.00   -56,208.02 No                Shenzhen SEG Allied
Internet                    t                                       capital         Internet                                                                    16, 2016
           services                                                                                      services       n                                                eSports Co., Ltd. and
Technology                                                                          Technology
                                                                                                                                                                         Launch of the E-Sports
Co., Ltd.                                                                           Co., Ltd.
                                                                                                                                                                         Stadium Project

                                                                                    Zhuhai                                                                                 http://www.cninfo.com.c
Shenzhen                                                                            Zhongtong
             Wi-Fi                                                                                       Wi-Fi                                                             n
SEG                                                                                 Lexing                              In
             project of     Establishmen                            Self-owned                           project of                                             April 7,   Announcement on the
Zhongtong                                    980,000.00    49.00%                   Network    Long-term                preparatio   0.00         0.00 No
             China          t                                       capital                              China                                                  2017       Investment and
Technology                                                                          Technology                          n
             Railway                                                                                     Railway                                                           Establishment of
Co., Ltd.                                                                           Co., Ltd.
                                                                                                                                                                           Shenzhen SEG
                                                                                    and
                                                                                                                                                                                                 24
                                                                           Fulltext of 2017 Semi-annual Report of Shenzhen SEG Co., Ltd.
                                              Shenzhen                                                          Zhongtong Technology
                                              Donglinde                                                         Co., Ltd. and
                                              Investment                                                        Participation in the WiFi
                                              Co., Ltd.                                                         Project of China
                                                                                                                Railway

                  5,248,877,200.0                                                37,114,684.7
Total   --   --                     --   --       --       --   --   --   0.00                  --       --                --
                                0                                                           4




                                                                                                                                      25
                                                                                                              Fulltext of 2017 Semi-annual Report of Shenzhen SEG Co., Ltd.


3. Significant non-equity investment in progress in the reporting period
√ Applicable □ Not applicable
                                                                                                                                                                                                  Unit: Yuan

                                                                                                                                                                                                  Reasons for
                                                                                                     Accumulated
                                                              Industries                                                                                                   Accumulated incomplianc
                                             Fixed                           Investment                 amount
                                                              involved                                                                                                     income as of            e with the
                        Investmen             asset                         amount in the invested as of Source of Schedul Estimate
    Project name                                                  in                                                                                                      the end of the           schedule
                            t mode     investmen                              reporting              the end of the         capital               e        d income
                                                             investmen                                                                                                       reporting              and the
                                             t or not                              period              reporting
                                                                  t                                                                                                              period            estimated
                                                                                                        period
                                                                                                                                                                                                    income

                                                                                                       Self-owne
Nantong SEG                                                  Real                                      d capital                                                          -13,140,910.0
                        Self-built No                                      151,925,986.4 749,190,834.0                                            -               -                                     -
Times Plaza                                                  estate                                    and bank                                                                       6
                                                                                       2             1
                                                                                                       loan

Land use right in
Shenzhen-Shanto
                                                             New                                                          Self-owne
u Cooperation     Self-built Yes                                           28,010,000.00 28,010,000.00                                            -               -                                     -
                                                             energy                                                       d capital
Zone of SEG
Longyan

CdTe production
                                                             New                                                          Self-owne
line of SEG     Self-built Yes                                             88,000,000.00 88,000,000.00                                            -               -                                     -
                                                             energy                                                       d capital
Longyan


                                                                                                                                                                          -13,140,910.0
Total                         --                --                --       267,935,986.4 865,200,834.0                            --              --              -                                    --
                                                                                                                                                                                      6
                                                                                       2             1


4. Financial assets investment
(1) Security investment
√ Applicable □ Not applicable

                                                                                         Changes
                                                                                           in fair
                                                                                                                        Monetar
                                                                                            value      Changes in                       Sales
                                                                                                                           y                      Profit or loss
Stoc            Short form         Initial           Accounting                          recognize accumulate                          proceed
        Stock                                                          Opening book                                     amount                         in the         Closing book Accountin Source of
    k             of the       investment            measuremen                          d in profit d fair value                      s in the
        code                                                               value                                         in the                       reporting          value            g item       capital
type             security           cost                t mode                           or loss in recognized                         reportin
                                                                                                                        reporting                      period
                                                                                             the        in equity                      g period
                                                                                                                         period
                                                                                         reporting
                                                                                          period

                                                                                                                                                                                       Financial
                                                     Measuremen
Shar 60077 Youhao                                                                                       -214,210.9                                                                     assets        Self-owne
                                   90,405.00 t           of     fair     683,290.58                                         0.00           0.00                         469,079.59
e       8       Group                                                                                               9                                                                  available     d capital
                                                     value
                                                                                                                                                                                       for sale

                                                     Measuremen                                                                                                                        Long-term
Shar 00006 Huakong            279,307,046.3                            174,552,073.9                                                              -3,033,891.9 171,518,119.8                         Self-owne
                                                     t by the cost                                                          0.00           0.00                                        equity
e       8       SEG                            8                                     9                                                                            8                5                 d capital
                                                     method                                                                                                                            investment

                SEG                                  Measuremen                                                                                                                        Financial
Shar 83277                     8,275,321.43                            13,515,392.83                                        0.00           0.00                       13,515,392.83                  Self-owne
                Navigation                           t by the cost                                                                                                                     assets



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                                                                                                 Fulltext of 2017 Semi-annual Report of Shenzhen SEG Co., Ltd.


e       0     s                             method                                                                                                           available     d capital
                                                                                                                                                             for sale

                           287,672,772.8                  188,750,757.4                    -214,210.9                           -3,033,891.9 185,502,592.2
Total                                           --                                  0.00                    0.00       0.00                                       --            --
                                        1                            0                              9                                     8              7

(2) Derivative investment
□ Applicable √ Not applicable
There is no derivative investment in the reporting period.

VI. Sales of major assets and equities

1. Sales of major assets
□ Applicable √ Not applicable
No major assets are sold in the reporting period.

2. Sales of major equities
□ Applicable √ Not applicable

VII. Analysis of main controlling and holding companies
√ Applicable □ Not applicable
Main subsidiaries and holding companies accounting for more than 10% of the Company's net profit
                                                                                                                                                                        Unit: Yuan

    Company                                                          Registered                                                       Operating      Operating
                  Company type Major business        Industry                                Total assets          Net assets                                             Net profit
     name                                                                 capital                                                      income          profit

                               Operation and
                               management of
                                                Electronics
Wujiang SEG Subsidiary         professional                       3,000,000.00               23,695,323.42          5,209,241.58      8,116,494.24   2,331,356.60        1,760,782.60
                                                market
                               electronics
                               market

                               Operation and
                               management of
                                                Electronics
Wuxi SEG      Subsidiary       professional                       3,000,000.00               18,508,376.38          4,393,076.67      2,187,708.92     -58,548.94          -78,304.19
                                                market
                               electronics
                               market

                               Development      Development
Nantong SEG Subsidiary         and operation    and operation of 30,000,000.00              879,841,253.05         16,859,089.94       968,132.89 -6,761,655.34          -4,744,520.90
                               of real estate   real estate

                               Operation and
                               management of
                                                Electronics
Shunde SEG Subsidiary          professional                       6,000,000.00                5,479,681.19          3,307,872.58      1,519,486.54     26,954.39            56,542.99
                                                market
                               electronics
                               market

SEG Credit    Subsidiary       Micro-credit     Finance           150,000,000.00            473,191,333.92     199,425,662.55 32,739,226.02 12,277,406.85                9,208,055.13

                               Property
                               operation and
SEG Baohua Subsidiary                           Property lease    30,808,800.00             168,159,234.05     101,251,525.05 45,122,397.06 19,964,006.28 15,071,605.22
                               management
                               and hotel




                                                                                                                                                                                     27
                                                                                     Fulltext of 2017 Semi-annual Report of Shenzhen SEG Co., Ltd.


                             business

                             Channel retail
                             terminal of
                             electronic
                                              Trade and
SEG Industry Subsidiary      products and                      25,500,000.00     87,347,077.32    43,675,554.58 35,864,919.96 -1,286,899.76       -971,026.31
                                              property lease
                             property
                             operation and
                             management

                             Operation and
                             management of
                                              Electronics
Xi'an SEG       Subsidiary   professional                      3,000,000.00      36,959,842.93    13,127,687.71 17,717,142.22    5,282,947.98    4,506,707.84
                                              market
                             electronics
                             market

                             Operation and
                             management of
Longgang                                      Electronics
                Subsidiary   professional                      3,000,000.00      20,666,576.85     5,592,799.05   6,894,406.45   1,216,698.60      926,998.76
SEG                                           market
                             electronics
                             market

                             Operation and
                             management of
                                              Electronics
Suzhou SEG Subsidiary        professional                      3,000,000.00      27,571,182.10     6,224,221.11 21,679,589.19    1,299,491.28      903,148.75
                                              market
                             electronics
                             market

                             Operation and
                             management of
Changsha                                      Electronics
                Subsidiary   professional                      35,000,000.00     94,129,784.36    72,833,241.63 11,863,928.52    4,093,123.82    3,070,809.45
SEG                                           market
                             electronics
                             market

                             Operation and
                             management of
Xi'an Hairong                                 Electronics
                Subsidiary   professional                      3,000,000.00      23,582,288.79     4,989,237.15 11,117,247.72    1,645,440.80    1,478,392.41
SEG                                           market
                             electronics
                             market

                             Operation and
                             management of
                                              Electronics
Nanjing SEG Subsidiary       professional                      20,000,000.00     21,918,917.80     2,516,516.39 12,064,470.86 -1,945,379.00      -1,920,416.40
                                              market
                             electronics
                             market

                             Operation and
                             management of
Suzhou SEG                                    Electronics
                Subsidiary   professional                      8,000,000.00      22,320,735.18      -950,720.29 10,014,693.68    1,464,765.63    1,098,574.24
Digital                                       market
                             electronics
                             market

Nantong SEG                  Property         Property
                Subsidiary                                     5,000,000.00      13,901,528.23    -7,185,269.09   8,191,890.05 -2,989,053.48     -2,683,452.39
Operation                    operation        operation

SEG
                Subsidiary   New energy       Energy           165,000,000.00   136,275,031.30   136,204,011.02                  -2,395,988.98   -2,395,988.98
Longyan


SEG             Subsidiary   Internet access Internet services 24,800,000.00     14,943,791.98    14,943,791.98                    -56,208.02      -56,208.02




                                                                                                                                                           28
                                                                                       Fulltext of 2017 Semi-annual Report of Shenzhen SEG Co., Ltd.


Lianzhong                  service

              Subsidiary                    manufacturing
                           Wi-Fi project
SEG                                         of
                           of China                            20,000,000.00        2,000,000.00     2,000,000.00
Zhongtong                                   communications
                           Railway
                                            equipment

              Subsidiary   Management
                           of electronics   Electronics
SEG Kangle                 markets and      markets and        5,000,000.00        66,409,171.07    44,014,778.46 26,265,254.11 16,681,587.67 12,502,739.08
                           property         property leasing
                           management

SEG Property Subsidiary    Property         Property
                                                               5,000,000.00       130,377,901.50    67,533,453.09 27,899,956.45    7,284,620.53    6,560,017.61
Development                management       management

              Subsidiary   Electronics
                                            Electronics
                           markets,
                                            markets,
                           hotels,
SegMaker                                    property           10,000,000.00      326,829,658.49   250,527,792.57 66,570,968.13 25,477,221.04 16,615,312.32
                           property
                                            leasing, and
                           management,
                                            leasing
                           and makers

              Subsidiary   Real estate      Real estate
SEG Real                   development      development
                                                               102,500,000.00   4,076,922,064.33   863,072,053.12 188,373,969.48 14,254,927.78     3,888,812.73
Estate                     and              and
                           management       management

                           Computer,
                           communication
                           and other
                           electronic
                                            Communication
Huakong       Holding      equipment
                                            equipment          1,006,671,464.00 1,814,976,904.91 1,042,490,065.03 92,777,210.59 -17,112,598.42 -17,471,098.54
SEG           company      manufacturing
                                            manufacturing
                           industries and
                           economic
                           information
                           consulting

                           Operation and
                           management of
Shanghai      Holding                       Electronics
                           professional                        5,000,000.00        18,618,373.35     9,240,145.38   2,663,245.69    -597,818.23     -552,724.94
SEG           company                       market
                           electronics
                           market

              Holding                       Exhibition
CEEC                                                           30,000,000.00       16,515,756.68    14,499,159.86                  -7,318,486.45   -7,318,882.20
              company                       market

Acquisition and disposal of subsidiaries in the reporting period
√ Applicable □ Not applicable

                                                         Mode of acquisition and
                 Company name                          disposal of subsidiaries in             Impact on the overall operation and performance
                                                           the reporting period

                                                                                       In the reporting period, the operating income is RMB
SEG Real Estate Investment Co., Ltd.                       Acquisition of stocks
                                                                                       188,374,000, and the total profit achieved is RMB 14,930,000.

SEG Kangle Enterprise Development Co.,                     Acquisition of stocks       In the reporting period, the operating income is RMB


                                                                                                                                                             29
                                                                    Fulltext of 2017 Semi-annual Report of Shenzhen SEG Co., Ltd.


Ltd.                                                                26,265,300, and the total profit achieved is RMB 16,680,000.

                                                                    In the reporting period, the operating income is RMB
SEG Property Development Co., Ltd.          Acquisition of stocks
                                                                    27,900,000, and the total profit achieved is RMB 7,460,000.

                                                                    In the reporting period, the operating income is RMB
Shenzhen SegMaker Co., Ltd.                 Acquisition of stocks
                                                                    66,571,000, and the total profit achieved is RMB 25,470,000.

                                                                    It is in preparation and has no operating income in the reporting
SEG Longyan Energy Technology Co., Ltd.        Establishment        period. As the organization expense is recognized in the cost,
                                                                    the loss is RMB 2,396,000 in the reporting period.

                                                                    It is in preparation and has no operating income in the reporting
Shenzhen SEG Lianzhong Internet
                                               Establishment        period. As the organization expense is recognized in the cost,
Technology Co., Ltd.
                                                                    the loss is RMB 56,200 in the reporting period.

Shenzhen SEG Zhongtong Technology Co.,                              It is in preparation and has no operating income in the reporting
                                               Establishment
Ltd.                                                                period.

Information on main controlling and holding companies
1. In the reporting period, the operating income of SEG Credit decreases by 33.97% year on year, mainly because its
business shrinkage results in the decrease in both the income and the total profit.
2. In the reporting period, the operating income of SEG Industry decreases by 63.41% year on year, mainly because its
termination of the trade business results in a loss of RMB 1,080,000.
3. In the reporting period, the operating income of Longgang increases by 50.44% year on year, mainly due to a change
in the business mode. The net amount of some businesses is recognized as the operating income last year, while both the
operating income and the operating expense are stated in the reporting period. The change of business mode does not
affect its total profit.
4. In the reporting period, the loss of Nanjing SEG decreases by RMB 1,790,000, mainly because the rental costs
decrease over the same period last year.
5. In the reporting period, the total profit of Wujiang SEG increases by 114.68% year on year, mainly because its market
rental income and advertising revenue increase by 8.41%, and growth in its gross profit results in its profit growth. As its
cooperation mode has changed, such growth is not sustainable.
6. In the reporting period, the loss of Nantong SEG is RMB 4,740,000, mainly because Nantong SEG Times Plaza was in
initial stage and needs a period of time to test the water and the decoration expenses are amortized and recognized in
current profit.
7. In the reporting period, the operating income of Wuxi SEG decreases by 35.01% year on year and the net profit
declines sharply, mainly because its overall market occupancy rate decreases over the same period last year. At present,
the company enters into the procedure of equity transfer.
8. In the reporting period, the total profit of Suzhou SEG decreases by 70.98% year on year, mainly because its property
lessor Zongheng International Electronic Expo City (Suzhou) Co., Ltd. sold the property and it changed from direct
operation and management to entrusted management. The change in the operation model has influenced the income and
profit of Suzhou SEG to certain extent.
9. In the reporting period, the operating income of Suzhou SEG Digital decreases by 47.51% year on year, mainly
because it adjusted the business type and terminated direct sales of digital products. As the new business has a higher
return, the total profit of Suzhou SEG Digital increases greatly in the reporting period.
10. In the reporting period, the loss of SEG Intelligent decreases by RMB 1,820,000, mainly because it was open last
year and the organization expense was recognized in current profit and loss in the same period last year.
11. In the reporting period, the operating income of Nantong SEG is RMB 8,190,000 and the loss is RMB 2,660,000,
mainly because Nantong SEG Times Plaza was open at the end of last year and the market expansion cost increased.
12. In the reporting period, the operating income of SEG Real Estate decreases by 36.71% and the total profit decreases
by 86.07% year on year, mainly because a large sum of house payments of Huizhou Stars Real Estate project were


                                                                                                                                   30
                                                                                Fulltext of 2017 Semi-annual Report of Shenzhen SEG Co., Ltd.


carried forward in profit and loss in the same period last year while remaining buildings of the project are sold in the
reporting period and fewer house payments are carried forward. The plaza project of New Urban has sold out the
property of RMB 1.431 billion yuan but the income is not eligible for recognition in the reporting period. SEG Real
Estate obtained RMB 60,590,000 from transfer of 48 houses in the same period last year, but has no such income in the
reporting period.
13. In the reporting period, the operating income of SegMaker increases by 924.15% year on year and the total profit
increases greatly, mainly because SEG Group transferred 170 houses to SegMaker for free in July 2016. Since then the
incomes belong to SegMaker, resulting in the operating income and profit increase dramatically.
14. SEG Longyan is newly established company in the reporting period. It is engaged in the R&D, production, and sales
of CdTe solar cell modules and EPC of the PV power generation system and BIPV engineering. The organization
expense is recognized as the cost, leading to a loss in the early stage of the company’s establishment.
15. CEEC, of which the Company holds 30% of the equity, is still in preparation. As the organization expense is
recognized in current profit or loss, its loss is RMB 7,320,000 and its income from investment decreases by RMB
2,200,000 in the reporting period.

VIII. Structural entity controlled by the Company
□ Applicable √ Not applicable

IX. Earnings forecasts from January to September 2017
Warning and reasons for forecasts on loss of the accumulated net profit from the beginning of the year to the end of next
period or material changes in net profit year on year
√ Applicable □ Not applicable
Earnings forecast: Upward trend compared with that (brfore adjustment) of the same period of previous year
Type of data: exact number

                                                                        Same period
                                    From the beginning of the year        last year
                                                                                                           Decrease or increase
                                       to the end of next period           (before
                                                                         adjustment)

Estimated accumulated net profit
                                                            5,400.00          4,227.85                  Increase                           27.72%
(RMB 10,000)

Basic earnings per share
                                                               0.044              0.054                Decrease                            -19.07%
(Yuan/share)

                                   1. The Company has issued shares and purchased underlying assets for major assets restructuring in Q1
                                   2017. Four target companies, that is, SEG Real Estate, SEG Kangle, SegMaker, and SEG property
                                   development, have completed asset transfer on January 19, 2017. As the Company includes these
                                   underlying assets in the consolidated statements in 2017, the profit or loss of the four target companies is
                                   included in earnings forecasts from January to September 2017.
                                   2. The Company issued 450,857,200 shares to SEG Group in the reporting period and handled equity
                                   registration and registration of change in its registered capital on February 15, 2017. In the same period last
Notes to earnings forecast         year, Huizhou Stars Real Estate project has a large sum of profit or loss carried forward. In the reporting
                                   period, remaining buildings of the project are sold and fewer profit or loss is carried forward. The plaza
                                   project of New Urban has sold out the property of RMB 1.431 billion yuan but the income is not eligible
                                   for recognition in the reporting period. It is estimated that the project will partly bring forward the profit or
                                   loss from Quarter 4, 2017 and that the range of profit increase will be lower than that of capital stock,
                                   leading to lowering down the earnings per share.
                                   3. Financial data in the foregoing earnings forecasts is not audited yet, and the disclosed data in Q3 2017
                                   report shall prevail.




                                                                                                                                                 31
                                                                 Fulltext of 2017 Semi-annual Report of Shenzhen SEG Co., Ltd.


X. Company's risks and countermeasures
(1) Market competitions are fierce.
During recent years, the mobile Internet has been developing rapidly, and the emerging e-commerce platforms have been
exploring the segmented market sectors. The growth of e-commerce poses great impacts on the traditional
brick-and-mortar stores. In the future, as the e-commerce business continues to encroach on market shares, the sales
revenues of the brick-and-mortar stores will be further adversely affected.
The competition among industrial rivals in the electronics market is also intense. Under the slumped macro-economy and
the strong growth of e-commerce business, the companies embarking on the electronics market have to fiercely compete
for both customer and manufacturer resources. As the whole industry keeps shrinking, the price war is doomed to
become an important measure to win resources and maintain occupancy rates. In the future, this situation may cause
some operation risks to the electronics market.
Countermeasures: The Company will reform and transform its previous operation mode in the electronics market and
create a comprehensive and brand-new industrial eco-system with compound business patterns. At the same time, the
Company will actively seek for new business opportunities, ensure the harmonious development of multiple business
patterns, and expand its market to the strategic emerging industry, high-end manufacturing industry, and service
industry.
(2) Supporting financing cannot complete fund raising as planned.
During the restructuring process, the Company plans to issue stock shares to less than 10 specific investors to raise
supporting funds. The total amount of the supporting fund will not exceed 2 billion yuan, and the issue price will be no
less than 9.91 yuan/share. However, this fund raising intention may be affected by the fluctuation of the stock market
and the expectations of investors; therefore, a lot of uncertainty lies in whether the supporting financing can be
successfully implemented.
Countermeasures: If the supporting fund fails to be raised or the actually raised amount is less than the planned amount,
the Company will fill the funding gap by measures like self financing and bank loans.




                                                                                                                           32
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                                              Chapter 5 Important Matters
I. Annual general meetings and extraordinary general meetings in the reporting period

1. Annual general meetings in the reporting period


       Session          Type of meeting       Investment proportion   Date of meeting     Date of disclosure       Disclosure index

                                                                                                               http://www.cninfo.com.cn
                                                                                                               Announcement of
1st extraordinary
                      Extraordinary general                                                                    Shenzhen SEG Co., Ltd.
general meeting in                                         30.55% March 2, 2017         March 3, 2017
                      meeting                                                                                  on Resolutions of the 1st
2017
                                                                                                               Extraordinary General
                                                                                                               Meeting in 2017

                                                                                                               http://www.cninfo.com.cn
                                                                                                               Announcement of
2nd extraordinary
                      Extraordinary general                                                                    Shenzhen SEG Co., Ltd.
general meeting in                                         55.89% March 16, 2017        March 17, 2017
                      meeting                                                                                  on Resolutions of the 2nd
2017
                                                                                                               Extraordinary General
                                                                                                               Meeting in 2017

                                                                                                               http://www.cninfo.com.cn
                                                                                                               Announcement of
22nd annual general   Annual general                                                                           Shenzhen SEG Co., Ltd.
                                                           56.05% May 9, 2017           May 10, 2017
meeting in 2016       meeting                                                                                  on Resolutions of the
                                                                                                               22nd Annual General
                                                                                                               Meeting in 2016

                                                                                                               http://www.cninfo.com.cn
                                                                                                               Announcement of
3rd extraordinary
                      Extraordinary general                                                                    Shenzhen SEG Co., Ltd.
general meeting in                                         55.90% June 12, 2017         June 13, 2017
                      meeting                                                                                  on Resolutions of the 3rd
2017
                                                                                                               Extraordinary General
                                                                                                               Meeting in 2017

                                                                                                               http://www.cninfo.com.cn
                                                                                                               Announcement of
4th extraordinary
                      Extraordinary general                                                                    Shenzhen SEG Co., Ltd.
general meeting in                                         55.92% July 21, 2017         July 22, 2017
                      meeting                                                                                  on Resolutions of the 4th
2017
                                                                                                               Extraordinary General
                                                                                                               Meeting in 2017


2. Request of preferred stockholders recovering voting powers for extraordinary general meetings

□ Applicable √ Not applicable

II. Plan of profit distribution and transfer of capital reserves into share capital in the reporting
period

□ Applicable √ Not applicable
The Company plans not to distribute cash dividends or bonus shares and not to transfer reserves into share capital.



                                                                                                                                       33
                                                     Fulltext of Semi-Annual Report 2017 of Shenzhen SEG Co., Ltd.


III. Commitments fulfilled in the reporting period or yet to be fulfilled as of the end of the
reporting period by actual controllers, shareholders, affiliates, purchasers, or other promisers of
the Company

√ Applicable □ Not applicable




                                                                                                               34
                                                                                                                                   Fulltext of Semi-Annual Report 2017 of Shenzhen SEG Co., Ltd.

                                                                                                                                                 Commitment   Commitment
  Commitments            Subject         Type                                              Content                                                                               Fulfillment
                                                                                                                                                    date         term

Commitment for
share reform

Commitments in the
Acquisition Report
and the Report of
Changes on Equity

                                                  "1. 100% shares of SEG Property have been entrusted to a share entrusting agency as
                                                  required. Its equity form is authentic and valid, and the equity structure and ownership are
                                                  clear. The Company has no objection to the share ownership, share quantity, and share
                                                  holding percentage of SEG Property. The Company has no disputes over share ownership                                        Asset transfer is
                                                  with SEG Property and other shareholders.                                                             Before
                     Shenzhen SEG Other                                                                                                                                       completed, and the
                                                                                                                                         August 3, 2016 completion of
                     Group Co., Ltd. commitment   2. In case any dispute over ownership of the 3.85% shares of SEG Property of which                                          commitment is
                                                                                                                                                        restructuring
                                                  ownership has not been determine as of July 26, 2016 occurs in the future, the Company                                      fulfilled.
                                                  commits to SEG Property that the Company will provide any necessary assistant to SEG
                                                  Property to solve the dispute, protect SEG Property from any loss caused thereby, and
                                                  undertake corresponding responsibilities."

                                                  1. The Company does not exist any of the following situations as specified in Clause 6,
Commitments made                                  Administrative Measures On Acquisition Of Listed Companies: (1) Damage legitimate
at the time of                                    rights and interests of the company acquired and its shareholders utilizing acquisition of
restructuring of                                  listed company; (2) With large amount of outstanding debts and this in-debt status has
major assets                                      lasted for a certain period of time; (3) Has actual or alleged serious illegal activities in
                                                                                                                                                                              Asset transfer is
                                                  recent three years; (4) Has serious behaviors of breaching promises in securities market in             Before
                     Shenzhen SEG Other                                                                                                                                       completed, and the
                                                  recent three years; (5) Other situations in which no acquisition of listed companies are August 3, 2016 completion of
                     Group Co., Ltd. commitment                                                                                                                               commitment is
                                                  allowed according to laws and administrative regulations and in the opinions of CSRC.                   restructuring
                                                                                                                                                                              fulfilled.
                                                  2. The Company and its main managers have not suffered from any administrative
                                                  punishment (administrative punishment obviously unrelated to security market excluded),
                                                  criminal punishment, major civil lawsuit or arbitration related to economic disputes
                                                  within the last five years. In case of breach of the foregoing commitments, the Company
                                                  will bear all losses thus incurred to Shenzhen SEG, and the subject company."

                                                  "1. The Company is an enterprise incorporated in China that owns the full capacity for                    Before            Asset transfer is
                     Shenzhen SEG Other
                                                  civil conduct and has the legal body qualification for participating in the restructuring, August 3, 2016 completion of     completed, and the
                     Group Co., Ltd. commitment
                                                  signing agreements with Shenzhen SEG, and performing rights and obligations under the                     restructuring     commitment is

                                                                                                                                                                                               35
                                                                                 Fulltext of Semi-Annual Report 2017 of Shenzhen SEG Co., Ltd.
agreement.                                                                                                                  fulfilled.
2. Except that the property located at 4F, Block 2, SEG Industry Building of SEG Real
Estate funded by the Company is to handle the transfer formality (with no legal
impediment), the Company has fulfilled the obligation of contributing capital to the
subject company, and has no acts against its obligations and responsibilities as a
shareholder, such as false contribution, deferred investment, or withdrawal of capital.
There are no circumstances that may affect the legal existence of the subject company.
3. There is no dispute or potential dispute over ownership of equities of the subject
company. There are no circumstances that may affect the legal existence of the subject
company.
4. The equities held by the Company in the subject company are actually legally owned.
There is no dispute or potential dispute over ownership of equities, no trust, shareholding
under entrustment or similar arrangement, no commitment or arrangement of forbidden
transfer or limited transfer, no pledge, freezing, seals up, property preservation or other
limitation of rights, and no lawsuit, arbitration or other forms of dispute which would
affect the restructuring. Meanwhile, the Company guarantees that the equities it held in
the subject company will maintain the status until the equities are registered under
Shenzhen SEG after change of registration.
5. The equities held by the Company in the subject company are assets with clear
ownership. The Company undertakes that there are no legal obstacles to stock transfer
after the restructuring of Shenzhen SEG is approved by CSRC, and no credit and debt
disputes. The Company promises to complete formalities for ownership transfer of these
equities within the agreed period.
6. Before the equities are registered under Shenzhen SEG after change of registration, the
Company undertakes that the subject company will maintain normal, orderly, and
legitimate operation, and will not take actions irrelevant to normal production and
management, such as disposal of assets, external guarantee, or additional major debts, or
illegally transfer or conceal assets and business. If the foregoing actions are indeed
necessary, provided that national laws, regulations, and normative documents are not
violated, these actions can be taken only after written approval of Shenzhen SEG.
7. The Company undertakes that there are not any ongoing or potential litigation,
arbitration, or dispute that may affect the Company's equity transfer, and all agreements or
contracts do not contain restrictive clauses that may affect the Company's equity transfer.
The articles of association, internal management system documents, and contracts or
agreements do not contain restrictive clauses that may affect the Company's equity
transfer. In case of breach of the foregoing commitments, the Company will bear all


                                                                                                                                           36
                                                                                                              Fulltext of Semi-Annual Report 2017 of Shenzhen SEG Co., Ltd.
                              losses thus incurred to Shenzhen SEG."

                              "1. In the recent 5 years, the Company has not been subject to any administrative penalty
                              (except those not related to the securities market) or criminal penalty.
                              2. In the recent 5 years, except for those cases that have been concluded, such as the case
                              of Hainan SEG International Trust and Investment Company, Zhongshi case, GTJA case
                              and Dasheng case, the Company is not involved in other major civil proceedings or
                              arbitration (the subject in dispute of 10 million yuan) related to economic disputes.
                                                                                                                               Before
Shenzhen SEG Other            3. The Company has never been suspected of insider trading related to major asset August 3, 2016 completion of              Completed
Group Co., Ltd. commitment    restructuring and placed on file for investigation or placed on file with the case not           restructuring
                              settled. In the recent 5 years, the Company has never failed to repay large debts or fulfill
                              commitments, or been subject to administrative supervision measures by the CSRC or
                              disciplinary action by the Stock Exchange due to insider trading related to major assets
                              restructuring, or been held criminally liable by the judicial authorities according to law. In
                              case of breach of the foregoing commitments, the Company will bear all losses thus
                              incurred to Shenzhen SEG."

Bo Hongxi, Cao
Xiang, Fan
Zhiqing, Li
Luoli, Liu
Fusong, Liu                   "1. I have not been subject to any administrative penalty by the CSRC in recent 36
Zhijun, Ru                    months, or public censure by the Stock Exchange in the recent 12 months.
Guiqin, Song                                                                                                                          Before
                Other         2. I have not been investigated by judicial authorities due to alleged crimes or by CSRC
Pingping, Tang                                                                                                         August 3, 2016 completion of       Completed
                commitment    due to alleged irregularities.
Chongyin, Wang                                                                                                                        restructuring
Li, Xu Ning, Yu               In case of breach of the following commitments, I will bear all losses thus incurred to
Qian, Zhang                   Shenzhen SEG."
Guangliu, Zhang
Haifan, Zheng
Dan, Zhu
Longqing

Directors,                    "1. In the recent 5 years, the Company has not been subject to any administrative penalty
supervisors, and              or criminal penalty or involved in other major civil proceedings or arbitration related to
                                                                                                                                          Before
senior           Other        economic disputes.
                                                                                                                           August 3, 2016 completion of   Completed
executives of    commitment   2. The Company has never been suspected of insider trading related to major asset                           restructuring
Shenzhen SEG                  restructuring and placed on file for investigation or placed on file with the case not
Group Co., Ltd.               settled. In the recent 5 years, the Company has never failed to repay large debts or fulfill
                                                                                                                                                                        37
                                                                                                                Fulltext of Semi-Annual Report 2017 of Shenzhen SEG Co., Ltd.
                             commitments, or been subject to administrative supervision measures by the CSRC or
                             disciplinary action by the Stock Exchange due to insider trading related to major assets
                             restructuring, or been held criminally liable by the judicial authorities according to law. In
                             case of breach of the following commitments, I will bear all losses thus incurred to
                             Shenzhen SEG."

SegMaker, SEG
Kangle, SEG                  "1. In the recent 3 years, the Company has not been subject to any major administrative
Property                     punishment or criminal punishment or involved in other major civil proceedings or
Development,                 arbitration related to economic disputes.
SEG Real                     2. The Company has never been suspected of insider trading related to major asset
Estate, SEG                  restructuring and placed on file for investigation or placed on file with the case not                      Before
               Other
New Urban                    settled. In the recent 5 years, the Company has never failed to repay large debts or fulfill August 3, 2016 completion of     Completed
               commitment
Construction,                commitments, or been subject to administrative supervision measures by the CSRC or                          restructuring
SEG Property                 disciplinary action by the Stock Exchange due to insider trading related to major assets
Management,                  restructuring, or been held criminally liable by the judicial authorities according to law. In
Huizhou Stars,               case of breach of the following commitments, I will bear all losses thus incurred to
Xi'an SEG,                   Shenzhen SEG."
Beijing

                             "As of the date of issuance of the commitment letter, SEG Kangle owns 9 properties with
                             the total construction area of 12,941.28 MM㎡. The actual proprietor of the property
                             located at 1F, Block 1, SEG Industry Building with an area of 902 MM㎡ is SEG
                             Group. Due to the provision that industrial buildings in Shenzhen shall be transferred as a
                             whole, the transfer registration formality for the property has not been handled. The actual
                             proprietor of Room 508, Block 4, SEG Residential Quarter is SEG Kangle, but the
                             property is registered under SEG Group and the transfer formality for the property has not
                             been handled. The Company undertakes that all parties have no disputes over the
                             ownership of the foregoing property whose registered proprietor is SEG Kangle but                   Before
Shenzhen SEG Other
                             whose actual proprietor is SEG Group and the property whose registered proprietor is August 3, 2016 completion of             Completed
Group Co., Ltd. commitment
                             SEG Group but whose actual proprietor is SEG Kangle. SEG Group will assist SEG                      restructuring
                             Kangle in completing the division and transfer registration formalities for the foregoing
                             properties. After the restructuring, if Shenzhen SEG suffers any losses due to ownership
                             of such properties, SEG Group will compensate Shenzhen SEG in full.
                             2. The construction in process-assembly workshop that SEG Group uses to contribute
                             capital to SEG Real Estate is 4F, Block 2, SEG Industry Building (real estate
                             proprietorship certificate No.: S. F. D. Zi. No. 3000759297) with the total area of 1,936.71
                             MM㎡. The property was delivered to SEG Real Estate upon capital contribution, but
                             the transfer formality could not be handled without the certificate on capital contribution.

                                                                                                                                                                          38
                                                                                                               Fulltext of Semi-Annual Report 2017 of Shenzhen SEG Co., Ltd.
                             Due to negligence of the handler, the property was registered under SEG Group together
                             with other properties of SEG Industry Building belonging to SEG Group. Due to the
                             restriction of transfer of industrial buildings as a whole, the transfer formality has not
                             been handled. SEG Real Estate has been occupying, using, and acquiring operating
                             revenue from the property since capital contribution. The Company will assist SEG Real
                             Estate in completing the transfer registration formality of the foregoing property. After the
                             restructuring, if Shenzhen SEG suffers any losses due to ownership of such properties,
                             SEG Group will compensate Shenzhen SEG in full.
                             3. The Company will help and propel the subject company and its subsidiaries to
                             complete ownership registration of land property assets and regulate the land purpose.
                             4. If due to land use rights and property assets existing before the completion of the
                             restructuring, the subject company and its subsidiaries (1) fail to timely handle the land
                             use rights and the proprietorship certificate (excluding results not caused by the subject
                             company and its subsidiaries, such as force majeure, laws, policies, government
                             management, and change in planned land purpose); or (2) cannot handle the relevant land
                             use rights and real estate proprietorship certificate (excluding results not caused by the
                             subject company and its subsidiaries, such as force majeure, laws, policies, government
                             management, and change in planned land purpose); or (3) are subject to other
                             circumstances of nonstandard land use rights and properties (excluding results not caused
                             by the subject company and its subsidiaries, such as force majeure, laws, policies,
                             government management, and change in planned land purpose), and suffer actual losses
                             including but not limited to compensation, fines, expenses, and interests damage, the
                             Company will compensate the subject company and its subsidiaries in full.

                             Before issuance date of the restructuring report of Shenzhen SEG, SEG Group will finish
                             formalities related to transfer of ownership of the property (4F, Block 2, SEG Industry
                             Building). If SEG Group fails to finish the formalities at expiration, SEG Group agrees to
                                                                                                                                       Before
Shenzhen SEG Other           compensate to SEG Real Estate RMB 1.5 million in currency, and allows SEG Real Estate
                                                                                                                        August 3, 2016 completion of      Completed
Group Co., Ltd. commitment   to continue to use the property for free until SEG Group transfers the ownership of the
                                                                                                                                       restructuring
                             property to SEG Real Estate. SEG Group agrees to compensate SEG Real Estate for any
                             operating loss or other economic loss of SEG Real Estate caused by SEG Group's failure
                             in transferring the ownership of the property.




                                                                                                                                                                         39
                                                                                                                                     Fulltext of Semi-Annual Report 2017 of Shenzhen SEG Co., Ltd.

                                                                                                                                                                                100% of the equity
                                                                                                                                                                                of SegMaker is
                                                                                                                                                                                transferred to the
                                    Commitment         The 6th interim meeting of the 5th Board of Directors held on January 26, 2011 reviewed                                  Company. The
                                    on horizontal      and approved the Proposal of Solving the Horizontal Competition between the Company                                      Company no
Commitment made
                                    competition,       and Its Controlling Shareholder. After friendly consultation, SEG Group agreed to entrust               From February 1, longer has to
at the time of initial Shenzhen SEG                                                                                                              January 26,
                                    related            the Company to operate and manage with full authority SEG Communications Market                         2011 to January commission
public offerings or Group Co., Ltd.                                                                                                              2011
                                    transaction, and   under direct management of SEG Group. Therefore, the two parties have signed the                        31, 2017.        SegMaker to
refinancing
                                    capital            entrustment operation and management contract, and SEG Group will pay the Company                                        operate the SEG
                                    occupation         RMB 200,000 Yuan as entrust management expenses.                                                                         communication
                                                                                                                                                                                market. The
                                                                                                                                                                                commitment is
                                                                                                                                                                                fulfilled.

Commitment on
equity incentives

Other commitments
made to the medium
and small
shareholders of the
Company

Were commitments
                   Yes
fulfilled on time?

If any commitment is not fulfilled as
scheduled, the reason for failure of
                                      N/A
fulfillment and the subsequent work
plan have to be specified.




                                                                                                                                                                                               40
                                                                 Fulltext of Semi-Annual Report 2017 of Shenzhen SEG Co., Ltd.


IV. Appointment or removal of the CPA firm

Has the annual financial report been audited?
□Yes          √No
The annual financial report is not audited yet.

V. Explanation of the Board of Directors and the Board of Supervisors about "non-standard audit
report" in the reporting period issued by the CPA firm

□ Applicable √ Not applicable

VI. Explanation of the Board of Directors on "non-standard audit report" in the previous year

□ Applicable √ Not applicable

VII. Bankruptcy reorganization

□ Applicable √ Not applicable
There is no matter in connection with bankruptcy reorganization in the reporting period.




                                                                                                                           41
                                                                                                                                     Fulltext of Semi-Annual Report 2017 of Shenzhen SEG Co., Ltd.



VIII. Litigation
Major lawsuits and arbitrations
√ Applicable □ Not applicable

                 S/N                                                        Amount
                                   Basic Information on lawsuits and                  Estimated liabilities                   Judgment result        Judgment    Disclosure
                                                                             (RMB                               Progress                                                          Disclosure index
                                              arbitrations                              incurred or not                         and impact           execution      date
                                                                            10,000)

                  1               Case number: 2016 G. 0102 M. C.
                                  No. 3653
                                  Plaintiff: Nanning Haiqi Real Estate
                                  Development Co., Ltd.
                                  Defendant   1:   Nanning          SEG
                                  Electronics  Market  Co.,         Ltd.
                                                                                                                             Judgment result:
                                  ("Nanning SEG")
                                                                                                              The case has   The Company shall
                                                                                                                                                   The judgment            http://www.cninfo.com.cn
                                  Defendant 2: Shenzhen SEG Co.,                                              been           pay the liquidated
                                  Ltd.                                                                                                             is not                  Announcement of
                                                                                                              decided, and   damages of RMB
                                                                                                                                                   executed, and September Shenzhen SEG Co., Ltd.
                                       A dispute over the lease contract     1,026.3 No                       the            666,666.66 to
                                                                                                                                                   the           26, 2016 on Receipt of Court
                                  arose among Nanning Haiqi, Nanning                                          counterparty   Nanning Haiqi and
                                                                                                                                                   counterparty            Summons and the Civil
                                  SEG and the Company. Nanning SEG                                            has            bear the case
                                                                                                                                                   has appealed.           Complaint
                                  did not pay the rent for the third year                                     appealed.      acceptance fee of
                                  according to the cooperation contract.                                                     RMB 5,416.
                                  The court found that Nanning SEG
                                  locked and sealed the shop front on
                                  June 30, 2015, which constituted a
                                  fundamental breach of contract.
                                  Nanning SEG was sued for breach of
                                  contract.

                  2                                                                                           The case has   Judgment result: 1.   The judgment               http://www.cninfo.com.cn
                                  Case number: 2016 G. 0102 M. C.
                                                                                                              been           The court confirms    is not                     Announcement of
                                  No. 3654
                                                                                                              decided, and   that the contract     executed, and June 2,      Shenzhen SEG Co., Ltd.
                                  Plaintiff: Nanning Yuanpeng Property        246.98 No
                                                                                                              the            has been rescinded;   the           2017         on the Progress of the
                                  Service Co., Ltd.
                                                                                                              counterparty   2. Other claims of    counterparty               Lawsuit with Nanning
                                  Defendant 1: Nanning SEG                                                    has            Yuanpeng Property     has appealed.              Yuanpeng Property

                                                                                                                                                                                                     42
                                                                                  Fulltext of Semi-Annual Report 2017 of Shenzhen SEG Co., Ltd.
    Electronics Market Co., Ltd.                           appealed.     are dismissed.                                Service Co., Ltd.
    Defendant 2: Shenzhen SEG Co.,
    Ltd.
         A dispute over the property
    service contract arose among
    Nanning Yuanpeng Property Service
    Co., Ltd. (hereinafter referred as
    "Yuanpeng Property"), Nanning SEG
    and the Company. Nanning SEG did
    not pay the rent for the third year
    according to the cooperation contract.
    The court found that Nanning SEG
    locked and sealed the shop front on
    June 30, 2015, which constituted a
    fundamental breach of contract.
    Nanning SEG was sued by Yuanpeng
    Property for breach of contract.

3   Case number: (2016) J. Z. A. Zi. No.
    2294
                                                           As the
    Plaintiff: Shenzhen SEG Co., Ltd.
                                                           parties
    Defendant: Zongheng International                                                                                  http://www.cninfo.com.cn
                                                           reached a
    Electronic Expo City (Suzhou) Co.,                                                                                 Announcement of
                                                           settlement,
    Ltd. ("Zongheng International")                                                                                    Shenzhen SEG Co., Ltd.
                                                           the other
         Zongheng           International                  party                                                       on the Progress of the
                                                                                                             June 2,
    breached     the    Suzhou      SEG        2,460 No    compensated Not applicable       Not applicable             Lawsuit and Arbitration
                                                                                                             2017
    Electronics      Market       Project                  for our loss                                                with Zongheng
    Cooperation Agreement signed with                      of RMB 3.5                                                  International Electronic
    Suzhou SEG on June 5, 2009.                            million, and                                                Expo City (Suzhou) Co.,
    According to the dispute resolution                    we canceled                                                 Ltd.
    terms in Article 7 (4) of the                          the
    cooperation agreement, the Company                     arbitration.
    applied for arbitration to Beijing
    Arbitration Commission.

4                                                          The parties                                                 http://www.cninfo.com.cn
    Case number: 2016 S. 0505 M. C.                                                                          June 2,
                                             1,900.08 No   reached a     Not applicable     Not applicable             Announcement of
    No. 5176                                                                                                 2017
                                                           settlement.                                                 Shenzhen SEG Co., Ltd.

                                                                                                                                              43
                                                                                   Fulltext of Semi-Annual Report 2017 of Shenzhen SEG Co., Ltd.
    Plaintiff: Suzhou SEG Electronics                      The other                                                    on the Progress of the
    Market Co., Ltd.                                       party                                                        Lawsuit and Arbitration
    Defendant: Zongheng International                      returned the                                                 with Zongheng
    Electronic Expo City (Suzhou) Co.,                     principal and                                                International Electronic
    Ltd.                                                   interest of                                                  Expo City (Suzhou) Co.,
                                                           loan. We                                                     Ltd.
         A loan dispute arose between
                                                           dismissed
    Suzhou      SEG       and   Zongheng
                                                           the case.
    International. Suzhou SEG filed a
    lawsuit        against      Zongheng
    International to the court.

5   (2017) Y. 0304 M. C. No. 5092
    Plaintiff: SEG Industry                                                                                             http://www.cninfo.com.cn
    Defendant:     Shenzhen    Wonder                      The
                                                                                                                        Announcement of
    Industry Co., Ltd. ("Wonder "), Liu                    properties
                                                           have been                                                    Shenzhen SEG Co., Ltd.
    Guiyun, and Liu Yu
                                                           preserved.                                         March 1, on the Receipt of the
         A dispute over the purchase and      839.41 No                    Not applicable    Not applicable
                                                           The trial is                                       2017     Notice of the Court's
    sales contract arose between SEG
                                                           underway.
    Industry and the defendant. SEG                                                                                     Case Acceptance by the
                                                           The case is
    Industry filed a lawsuit to the court,                                                                              Holding Company
                                                           pending.
    and applied for preservation of the
    properties of the defendant and its
    debt guarantors.

6   (2017) Y. 0304 M. C. No. 5088
    Plaintiff: SEG Industry                                                                                             http://www.cninfo.com.cn
    Defendant:    Shenzhen      ZTYX                       The
                                                                                                                        Announcement of
    Technology Co., Ltd., Zhe Shaojun,                     properties
                                                           have been                                                    Shenzhen SEG Co., Ltd.
    and Zhao Xiaoyan
                                                           preserved.                                         March 1, on the Receipt of the
         A dispute over the purchase and     1,480.57 No                   Not applicable    Not applicable
                                                           The trial is                                       2017     Notice of the Court's
    sales contract arose between SEG
                                                           underway.
    Industry and the defendant. SEG                                                                                     Case Acceptance by the
                                                           The case is
    Industry filed a lawsuit to the court,                                                                              Holding Company
                                                           pending.
    and applied for preservation of the
    properties of the defendant and its
    debt guarantors.


                                                                                                                                               44
                                                                               Fulltext of Semi-Annual Report 2017 of Shenzhen SEG Co., Ltd.

7   (2017) Y. 0304 M. C. No. 7976
    Plaintiff: SEG Industry
    Defendant:    Shenzhen      Comnet
    Technology    Co.,    Ltd.,   Xiao                    The
    Qingshan, Zhou Ronghua, Anhua                         properties
    Meishan Small Loan Co., Ltd., and                     have been
    Shenzhen Baiyi Technology Co., Ltd.       515.54 No   preserved. Not applicable      Not applicable
         A dispute over the purchase and                  The hearing
    sales contract arose between SEG                      is not held
    Industry and the defendant. SEG                       yet.
    Industry filed a lawsuit to the court,
    and applied for preservation of the
    properties of the defendant and its
    debt guarantors.

8   (2017) Y. 0304 M. C. No. 7977
    Plaintiff: SEG Industry
    Defendant: Shenzhen Runto Digital
    Co., Ltd., Xiao Qingshan, Zhou                        The
    Ronghua, Anhua Meishan Small                          properties
    Loan Co., Ltd., and Shenzhen Baiyi                    have been
    Technology Co., Ltd.                     1,534.5 No   preserved. Not applicable      Not applicable
         A dispute over the purchase and                  The hearing
    sales contract arose between SEG                      is not held
    Industry and the defendant. SEG                       yet.
    Industry filed a lawsuit to the court,
    and applied for preservation of the
    properties of the defendant and its
    debt guarantors.

9   Case number: (2016) J. 0102. M. C.
                                                          The case has
    No. 21435                                             been placed
    Plaintiff:   Beijing   SEG   Property    2004.74 No   on file. The Not applicable    Not applicable
                                                          hearing is
    Development Co., Ltd. ("Beijing
                                                          not held yet.
    SEG Property")


                                                                                                                                         45
                                                                                                                                 Fulltext of Semi-Annual Report 2017 of Shenzhen SEG Co., Ltd.

                                  Defendant: Beijing Furao Real Estate
                                  Development Co., Ltd. ("Beijing
                                  Furao")

                                  Beijing SEG Property (the holding
                                  subsidiary of SEG Realm Estate) and
                                  Beijing Furao entered into Beijing
                                  House Lease Contract on May 29,
                                  2015. Beijing SEG Property has
                                  fulfilled obligations hereunder, but
                                  Beijing Furao still fails to deliver
                                  houses at the south section to Beijing
                                  SEG Property, which constituted a
                                  fundamental      breach   of    contract.
                                  Beijing SEG Property requested the
                                  court to confirm that Beijing House
                                  Lease        Contract      and       the
                                  Supplementary Agreement had been
                                  rescinded on July 14, 2016 and to
                                  order Beijing Furao to pay the
                                  liquidated     damages     of      RMB
                                  8,047,400 and return double the
                                  deposit of RMB 12,000,000.

Other lawsuits and arbitrations
√ Applicable □ Not applicable

                    S/N                                                                            Estimated
                                               Basic Information on lawsuits and      Amount (RMB liabilities
                                                                                                                      Progress          Judgment result and impact      Judgment execution
                                                          arbitrations                  10,000)   incurred or
                                                                                                      not

                     1                    2016 G. 0102 M. C. No. 4612                                           The case has been      Nanning SEG shall             Both parties have appealed
                                          Nanning SEG will hand over the operating          104.19 No           decided, and both      compensate for damages to     and the judgment is not
                                          premise to Nanning Haiqi according to the                             parties have appealed. the leased premise of RMB     executed yet.

                                                                                                                                                                                             46
                                                                          Fulltext of Semi-Annual Report 2017 of Shenzhen SEG Co., Ltd.
    court ruling, and Nanning Haiqi requested                                    394,964.8 and pay the
    Nanning SEG to compensate for damage                                         attorney fee of RMB 23,000.
    and decoration losses of the rented house
    and the attorney fee.

2   2016 G. 0102 M. C. No. 4612
    Nanning Haiqi requested Nanning SEG to
    return the shop front occupied by CCB and                                    Nanning SEG shall pay the
                                                           The case has been                                    The counterparty has
    compensate for the occupation expense                                        occupation expense at the
                                                           decided, and the                                     appealed, and CCB
    (temporarily RMB 3,779.8) and the            7.93 No                         price of RMB 44,388.39 per
                                                           counterparty has                                     transferred the shop front
    liquidated damages of RMB 71,255.7.                                          year and the attorney fee of
                                                           appealed.                                            on July 3, 2017.
    Defendant 1 was ordered to compensate for                                    RMB 8,000.
    the attorney fee of RMB 8,000 paid by the
    plaintiff.

3   2016 G. 0102 M. C. No. 672
                                                           The case is undecided
    The Company sued against CCB Taoyuan        88.64 No                         Not applicable                 Not applicable
                                                           yet.
    Sub-branch for breach of contract.

4   2016 G. 0102 M. C. No. 672
    CCB Taoyuan Sub-branch filed a
    counterclaim against the Company and                   The case is undecided
                                                 8.72 No                         Not applicable                 Not applicable
    requested the Company to rescind the                   yet.
    contract, compensate for decoration
    expenses, and pay the attorney fee.

5   (2015) X. M. C. Zi. No. 1573
                                                           The case has been     Nanning SEG shall pay RMB
    Leng Dacheng sued against Nanning SEG       24.58 No                                                   Executed
                                                           decided.              61,020.
    for an economic contract dispute

6   (2015) X. M. C. Zi. No. 1574                                                                                Executed
    Nanning Ruixi Digital Product Store sued               The second instance   Nanning SEG shall pay RMB
                                                24.03 No
    against Nanning SEG for an economic                    has been decided.     85,725.58.
    contract dispute

7   (2015) X. M. C. Zi. No. 1575                                                                                Executed
    Nanning Network Computer Accessory                     The case has been     Nanning SEG shall pay RMB
                                                16.78 No
    Business Department sued against Nanning               decided.              47,408.
    SEG for an economic contract dispute

                                                                                                                                         47
                                                                            Fulltext of Semi-Annual Report 2017 of Shenzhen SEG Co., Ltd.

8    (2016) Y. 0304 M. C. No. 22821                                                The Company has applied for
                                                             The Company is the
     The Company sued against the merchant         6.26 No                         enforcement, and the        In progress
                                                             prevailing party.
     Wu Yupu for unpaid rents.                                                     payment is not made yet.

9    (2016) Y. 0304 M. C. No. 24424
     Shenzhen Quanxinhao Co., Ltd. sued
     against the Company and requested the                   The hearing is not
     Company to cancel 3,802,500 stocks of           0 No    held yet on September Not applicable                Not applicable
     Dalian Beeda Technology (Group) Co., Ltd.               27, 2017.
     pledged to the Company and to pay the
     litigation expense.

10                                                                                 The Company is the
                                                                                   prevailing party. The
     (2013) S. F. F. M. E. C. Zi. No. 12066                  The case has been                                   Principal and interest
                                                   200 No                          principal and interest have
     (2014) S. F. F. Z. Zi. No. 05055                        settled.                                            repaid
                                                                                   been repaid. No impact is
                                                                                   caused.

11   (2016) Y. 0304 Z. No. 11461
     (2015) S. F. F. M. E. C. Zi. No. 14590
                                                                                   The Company is the
     SEG Credit sued against Shenzhen Weike                                        prevailing party and is
     Oumei Investment Co., Ltd., Huang             310 No    In progress                                         Judicial foreclosure
                                                                                   disposing of the pledge. No
     Shengwen, and Li Jing for failure to repay                                    loss is expected.
     capital with interest according to the loan
     contract.

12   (2015) S. F. F. M. E. C. Zi. No. 14589
     2016) Y. 0304 Z. No. 11460
                                                                                   The Company is the
     SEG Credit sued against Shenzhen Weike                                        prevailing party and is
     Oumei Investment Co., Ltd., Huang             220 No    In progress                                         Judicial foreclosure
                                                                                   disposing of the pledge. No
     Shengwen, and Li Jing for failure to repay                                    loss is expected.
     capital with interest according to the loan
     contract.

13   (2016) Y. 0304 M. C. No. 11100                                                The Company is the
     SEG Credit sued against Li Xin and Chen                 The case has been     prevailing party and is
                                                   148 No                                                        Houses seized and the
     Huajun for failure to repay capital with                settled.              disposing of the pledge.
                                                                                                                 pledge disposed of
     interest according to the loan contract.                                      Houses are seized. Some

                                                                                                                                          48
                                                                            Fulltext of Semi-Annual Report 2017 of Shenzhen SEG Co., Ltd.
                                                                                   impacts are expected.

14   (2016) Y. 0304 M. C. No. 17376
     SEG Credit sued against Ling Xiao,
                                                                                   The principal and interest has
     Shenzhen Songlian Communication Co.,                    The case has been
                                                    500 No                         been settled. No losses are    Payment for goods settled
     Ltd. and Chen Lingling for failure to repay             settled.
                                                                                   incurred.
     capital with interest according to the loan
     contract.

15   (2017) Y. 0304 M. C. No. 14559
     (2017) Y. 0304 Z. B. No. 1675
     SEG Credit sued against Zhou Ronghua,                   The case is undecided
     Shenzhen Runto Digital Co., Ltd., Cheng        300 No                         Not applicable                Not applicable
                                                             yet.
     Sumin, and Xiao Qingshan for failure to
     repay capital with interest according to the
     loan contract.




                                                                                                                                         49
                                                                            Fulltext of Semi-Annual Report 2017 of Shenzhen SEG Co., Ltd.


IX. Punishment and rectification

□ Applicable √ Not applicable
There is no punishment and rectification in the reporting period.


X. Integrity of the Company and its controlling shareholders and actual controllers

□ Applicable √ Not applicable


XI. Implementation of the equity incentive plan, employee stock ownership plan, or other employee
incentives

□ Applicable √ Not applicable
There is no the equity incentive plan, employee stock ownership plan, or other employee incentives in the reporting period.


XII. Major connected transactions




                                                                                                                                      50
                                                                                                                                     Fulltext of Semi-Annual Report 2017 of Shenzhen SEG Co., Ltd.
1. Transactions related to routine operation

√ Applicable □ Not applicable

                                                                                                         Amount of Percentage Exceeding
                                                                                Pricing
   Party of                          Type of                                                 Price of     connected       in         the
                                                    Content of connected      principle of                                                    Clearing
  connected      Association        connected                                               connected    transaction transactions approved                Disclosure           Disclosure index
                                                        transaction            connected                                                       form
 transaction                       transaction                                             transaction      (RMB     of the same quota or                    date
                                                                              transaction
                                                                                                           10,000)       kind        not

             A holding
             company owned
Huizhou                                                                       In
             by the               Receiving                                                                                                  In
SEG                                                                           accordance
             management           property       Receiving property                                                                          accordance April 18,
Property                                                                      with the   52,900 yuan           5.29      0.01% No
             board of a           management     management fees                                                                             with the   2017
Service Co.,                                                                  market
             subsidiary of its    services                                                                                                   agreement
Ltd.                                                                          pricing
             controlling
             shareholder

                                                 1-416, Tower 101, SEG
                                                 Industrial Zone; 1F, Optical
                                                 Fiber Building;              In
                                                                                                                                             In
Shenzhen                                         6F, Plant No. 2; 403,        accordance 40.57                                                                         Notice on Anticipated Connected
               A controlling      Leasing the                                                                                                accordance
SEG Group                                        Qingyi Building, Nanyuan with the       yuan/square           95.1      0.18% No                                      Transaction Items In 2017 Annual
               shareholder        property                                                                                                   with the
Co., Ltd.                                        Road; 48 houses with the     market     meter                                                                          Routine Operations of Shenzhen
                                                                                                                                             agreement
                                                 total construction area of pricing                                                                                       SEG Co., Ltd. posted on the
                                                 3,907.13 MMin Qing'an                                                                                                           CNINF website
                                                 Building, No. 1705                                                                                                       (http://www.cninfo.com.cn)

                                                 1F, SEG Kangle Building;
                                                 8F, SEG Industrial
                                                 Building; West Zone,
                                                 Tower 2, 8F, SEG             In
                                                                                                                                             In
Shenzhen                                         Industrial Building; 3F,     accordance 67.53
               A controlling      Leasing the                                                                                                accordance
SEG Group                                        Tower 101, Shangbu           with the   yuan/square         391.87      0.74% No
               shareholder        property                                                                                                   with the
Co., Ltd.                                        Industrial Zone; Room 506,   market     meter
                                                                                                                                             agreement
                                                 Tower 303, Pengji Shangbu    pricing
                                                 Bachelor Apartment; 61
                                                 houses including the
                                                 connecting corridor in 4F,
                                                                                                                                                                                                    51
                                                                                                                       Fulltext of Semi-Annual Report 2017 of Shenzhen SEG Co., Ltd.
                                           Tower A & Tower B, 101
                                           Zhenxing Road, with the
                                           total construction area of
                                           9,672.12 MM

                                                                        In
                             Providing                                                                                      In
Shenzhen                                                                accordance
             A controlling   property      Providing property                      114,500                                  accordance
SEG Group                                                               with the                  11.45    0.02% No
             shareholder     management    management services                     yuan                                     with the
Co., Ltd.                                                               market
                             services                                                                                       agreement
                                                                        pricing

                                                                        In
Shenzhen                     Providing                                                                                      In
             A subsidiary of                                            accordance
SEG Talent                   property      Providing property                      102,400                                  accordance
             its controller                                             with the                  10.24    0.02% No
Training                     management    management services                     yuan                                     with the
             share holder                                               market
Center                       services                                                                                       agreement
                                                                        pricing

Shenzhen                                                                In
                             Providing                                                                                      In
SEG High     A subsidiary of                                            accordance
                             property      Providing property                                                               accordance
Technology   its controller                                             with the   91,600 yuan     9.16    0.01% No
                             management    management services                                                              with the
Investment   share holder                                               market
                             services                                                                                       agreement
Co., Ltd.                                                               pricing

                             Entrusted to                               In
                                                                                                                            In
Shenzhen                     manage the      Entrusted to manage the    accordance
             A controlling                                                                                                  accordance
SEG Group                    underground underground parking area       with the   68,800 yuan     6.88    0.01% No
             shareholder                                                                                                    with the
Co., Ltd.                    parking area of of SEG Square              market
                                                                                                                            agreement
                             SEG Square                                 pricing

                                                                        In
                                                                                                                            In
Shenzhen                                                                accordance
             A controlling   Leasing the   61st and 62nd floors of                 786,900                                  accordance
SEG Group                                                               with the                  78.69    0.13% No
             shareholder     property      SEG Square                              yuan                                     with the
Co., Ltd.                                                               market
                                                                                                                            agreement
                                                                        pricing

Total                                                                       --          --       608.68   --          --         --          --                    --




                                                                                                                                                                                 52
                                                                                Fulltext of Semi-Annual Report 2017 of Shenzhen SEG Co., Ltd.



2. Connected transactions arising from asset or equity sales and acquisition

√ Applicable □ Not applicable

                                                         Book      Estimate
                                         Pricing
                                                      value of      d value
                   Type of              principle                                                    Transacti
                                                          the        of the    Price of
                  connecte Content of       of                                                       on profit
Related Associati                                     transferr   transferre   transfer   Clearing
                      d      connected connecte                                                       or loss Disclosu    Disclosure index
 party     on                                         ed assets    d assets     (RMB       form
                  transacti transaction     d                                                          (RMB    re date
                                                        (RMB        (RMB       10,000)
                     on                 transacti                                                     10,000)
                                                       10,000)     10,000)
                                           on
                                                       (if any)    (if any)

                          55% of the
                          equity of
                          SEG
                          Kangle,
                                                                                                                      Proposal of Issuing
                          100% of
                                                                                                                      Stocks and Paying
                          the equity
                                                                                                                      Cash to Acquire Assets
                          of SEG
Shenzh                                                                           Issuance of                          and Raise Supporting
       Controlli          Property
en SEG                                Fair                                       shares and                  February Fund and Affiliate
       ng        Stock    Developme                   87,707.8 515,714. 515,714.
Group                                 market                                     payment for                0 4, 201 Transaction of
       sharehold purchase nt, 100% of                        6      72       72
Co.,                                  value                                      consideratio                       6 Shenzhen SEG Co.,
       er                 the equity
Ltd.                                                                             ns                                   Ltd. posted on the
                          of
                                                                                                                      CNINF website
                          SegMaker,
                                                                                                                      (http://www.cninfo.co
                          and 79.02%
                                                                                                                      m.cn)
                          of the
                          equity of
                          SEG Real
                          Estate

Reason for great difference (if any)
                                          The transfer price is consistent with the estimated value. Difference between the transfer price and
between the transfer price and book value
                                          book value is caused by appreciation in appraisal.
or estimated value

                                           1. In the reporting period, the operating income of SEG Real Estate is RMB 188,374,000, and the
                                           net profit attributable to the parent company is RMB 14,154,800.
                                           2. In the reporting period, the operating income of SEG Kangle is RMB 26,265,300, and the net
                                           profit attributable to the parent company is RMB 12,502,700.
Impact on the operating result and         3. In the reporting period, the operating income of SEG Property is RMB 27,900,000, and the net
financial condition of the Company         profit attributable to the parent company is RMB 6,560,000.
                                           4. In the reporting period, the operating income of SegMaker is RMB 66,571,000, and the net
                                           profit attributable to the parent company is RMB 616,615,300.
                                           In the reporting period, the total operating income of the four target companies is RMB
                                           309,110,000, and the total net profit attributable to the parent company is RMB 49,830,000.

Fulfillment of agreed performance (if
                                           Same as above
any)


3. Connected transactions arising from joint external investment

□ Applicable √ Not applicable
No connected transaction arising from joint external investment is incurred in the reporting period.



                                                                                                                                             53
                                                                             Fulltext of Semi-Annual Report 2017 of Shenzhen SEG Co., Ltd.


4. Claim and debt with related parties

√ Applicable □ Not applicable
Are there non-operating claims and debts with related parties?
√Yes □No
Claim receivable from related parties:
□pplicable √ Not applicable


Debt payable to related parties:

                                                                  Increased    Recovered
                                                                                                                  Interest in the
                                                      Opening   amount in the amount in the                                          Closing
                                                                                                                    reporting
 Related party    Association         Cause        balance (RMB   reporting     reporting          Interest                       balance (RMB
                                                                                                                  period (RMB
                                                      10,000)   period (RMB period (RMB                                              10,000)
                                                                                                                     10,000)
                                                                   10,000)       10,000)

                                                                                               8%, 0%,
                                                                                              No interest is
                                                                                              collected for
                                                                                              considerations
                                   Capital                                                    of stock
                                   borrowing                                                  reform, but
Shenzhen SEG
             Controlling           and                                                        SEG Group
Group Co.,                                             17,181.03     67,804.57         10,000                            849.39     74,985.61
             shareholder           consideration                                              collects 8% of
Ltd.
                                   for stock                                                  interest for the
                                   purchase                                                   fund
                                                                                              supporting
                                                                                              SEG Real
                                                                                              Estate.




5. Other major connected transactions

□ Applicable √ Not applicable
The Company has no other major connected transaction in the reporting period.


XIII. Non-operating capital occupancy by controlling shareholders and affiliates

□ Applicable √ Not applicable
There is no non-operating capital occupancy by controlling shareholders and affiliates in the reporting period.


XIV. Major contracts and performance

1. Trusteeship, contracting, and leasing

(1) Trusteeship

□ Applicable √ Not applicable
The Company has no trusteeship in the reporting period.




                                                                                                                                           54
                                                                            Fulltext of Semi-Annual Report 2017 of Shenzhen SEG Co., Ltd.


(2) Contracting

□ Applicable √ Not applicable
The Company has no contracting in the reporting period.


(3) Leasing

□ Applicable √ Not applicable
The Company has no leasing in the reporting period.


2. Major guarantee

√ Applicable □ Not applicable


(1) Guarantee


                             Company's external guarantee situation (excluding the guarantee to its subsidiaries)

                       Disclosure
                                                                                                                                  Guaranteed
                        date of                    Actual date of
                                                                                                                                    for a
 Name of guarantee      notices     Guarantee     occurrence (date Actual guarantee       Guarantee         Guarantee   Completed
                                                                                                                                  connected
      object           related to    quota         of signing the      amount               type             period       or not
                                                                                                                                   party or
                       guarantee                    agreement)
                                                                                                                                     not
                         quota

Mortgage guarantee
clients of China   May 26,                                                              Joint liability
                                         26,000 June 30, 2017                15,893.8                     One year      No        No
CITIC Bank, SEG 2017                                                                    guarantee
New City Branch

Housing guarantee
clients of China
                                                                                        Joint liability
Construction Bank,                       45,000 May 05, 2015                 4,077.37                     Three years   No        No
                                                                                        guarantee
Huizhou Stars
Branch

Clients purchasing
the SEG New City
                                                 February 07,                           Joint liability
house properties                                                               568.51                     Five years    No        No
                                                 2017                                   guarantee
(China Construction
Bank)

Clients purchasing
the SEG New City
house properties                                                                        Joint liability
                                         30,000 May 06, 2016                 9,355.64                     Ten years     No        No
(Bank of                                                                                guarantee
Communications of
China)

Clients purchasing
the SEG New City
house properties                                                                        Joint liability
                                         20,000 July 04, 2016                  967.08                     Three years   No        No
(Bank of Agriculture                                                                    guarantee
and Commerce of
China)




                                                                                                                                         55
                                                                          Fulltext of Semi-Annual Report 2017 of Shenzhen SEG Co., Ltd.


Clients purchasing
the SEG New City
                                                                                      Joint liability
house properties                                May 06, 2016               6,803.16                     Ten years     No        No
                                                                                      guarantee
(China Merchants
Bank)

Clients purchasing
the SEG New City                                                                      Joint liability
                                        30,000 May 06, 2016                9,027.07                     Ten years     No        No
house properties                                                                      guarantee
(Bank of China)

Clients purchasing
the SEG New City
                                                                                      Joint liability
house properties                        50,000 May 06, 2016                       0                     One year      No        No
                                                                                      guarantee
(Agricultural Bank
of China)

Total amount of approved external                                Total amount of actually
guarantee quota in the reporting                          26,000 occurred external guarantee in                                  46,692.62
period (A1)                                                      the reporting period (A2)

Total amount of approved external                                Total amount of actual external
guarantee quota by the end of the                        201,000 guarantee balance by the end of                                 46,692.62
reporting period (A3)                                            the reporting period (A4)

                                      Guarantee situation between the Company and its subsidiaries

                       Disclosure
                                                                                                                                Guaranteed
                        date of                  Actual date of
                                                                                                                                  for a
 Name of guarantee      notices     Guarantee   occurrence (date Actual guarantee       Guarantee         Guarantee   Completed
                                                                                                                                connected
      object           related to    quota       of signing the      amount               type             period       or not
                                                                                                                                 party or
                       guarantee                  agreement)
                                                                                                                                   not
                         quota



Total amount of approved                                          Total amount of actually
guarantee quota for its                                           occurred guarantee for its
subsidiaries in the reporting                                     subsidiaries in the reporting
period (B1)                                                       period (B2)

Total amount of approved                                          Total amount of actual guarantee
guarantee quota for its                                           balance for its subsidiaries by
subsidiaries by the end of the                                    the end of the reporting period
reporting period (B3)                                             (B4)

                                         Guarantee situation between the Company subsidiaries

                       Disclosure
                                                                                                                                Guaranteed
                        date of                  Actual date of
                                                                                                                                  for a
 Name of guarantee      notices     Guarantee   occurrence (date Actual guarantee       Guarantee         Guarantee   Completed
                                                                                                                                connected
      object           related to    quota       of signing the      amount               type             period       or not
                                                                                                                                 party or
                       guarantee                  agreement)
                                                                                                                                   not
                         quota

Shenzhen SEG New
                                                                                      Joint liability
City Development                        50,000 October 30, 2015              50,000                     Two years     No        Yes
                                                                                      guarantee
Group Ltd.




                                                                                                                                       56
                                                                                Fulltext of Semi-Annual Report 2017 of Shenzhen SEG Co., Ltd.


Total amount of approved                                                Total amount of actually
guarantee quota for its                                                 occurred guarantee for its
                                                                      0                                                               50,000
subsidiaries in the reporting                                           subsidiaries in the reporting
period (C1)                                                             period (C2)

Total amount of approved                                             Total amount of actual guarantee
guarantee quota for its                                              balance for its subsidiaries by
                                                              50,000                                                                  50,000
subsidiaries by the end of the                                       the end of the reporting period
reporting period (C3)                                                (C4)

Total guarantee amount of the Company (the sum of the first three items)

Total amount of approved                                             Total amount of actually
guarantee quota in the reporting                              26,000 occurred guarantee in the                                     96,692.62
period (A1+B1+C1)                                                    reporting period (A2+B2+C2)

Total amount of approved                                            Total amount of actual guarantee
guarantee quota by the end of the                           251,000 balance by the end of the                                      96,692.62
reporting period (A3+B3+C3)                                         reporting period (A4+B4+C4)

Proportion of the total actual guarantee balance (A4+B4+C4) to the
                                                                                                                                      53.9%
Company's net assets

Herein:

Guarantee balance provided for shareholders, actual controllers,
                                                                                                                                           0
and other connected parties (D)

Debt guarantee balance directly or indirectly provided for
                                                                                                                                           0
guarantee objects with an asset-liability ratio higher than 70% (E)

Amount of the total guarantee amount minuses 50% of net assets
                                                                                                                                    7,003.85
(F)

Sum of the previous three guarantee amounts (D+E+F)                                                                                 7,003.85


(2) Illegal external guarantee

□ Applicable √ Not applicable
The Company has no illegal external guarantee in the reporting period.

3. Other major contracts

√ Applicable □ Not applicable




                                                                                                                                          57
                                                                                                                                     Fulltext of Semi-Annual Report 2017 of Shenzhen SEG Co., Ltd.



                                                                             Estimated
                                                               Book value
                                                                              value of
                                                                 of assets
                                                                               assets                   Base date of                                                                  Fulfillment as
                                                               involved in                 Appraisal                                   Transaction     Connected
 Contracting                                        Date of                 involved in                    asset          Pricing                                                     of the end of
                Counterparty    Contract subject               the contract                agency (if                                 price (RMB     transaction or     Association
   party                                            signing                 the contract                appraisal (if    principle                                                    the reporting
                                                                  (RMB                       any)                                       10,000)           not
                                                                               (RMB                        any)                                                                           period
                                                                10,000) (if
                                                                             10,000) (if
                                                                   any)
                                                                                any)

Shenzhen SEG SEG Credit Co.,    Short-term         January                                                              Market                                        Controlling
                                                                     3,000                   None                                                    No                               Fulfilled
Group Co., Ltd. Ltd.            financing          13, 2016                                                             pricing                                       subsidiary

Shenzhen SEG SEG Credit Co.,    Short-term         April 12,                                                            Market                                        Controlling
                                                                     3,000                   None                                                         No                          Fulfilled
Group Co., Ltd. Ltd.            financing          2017                                                                 pricing                                       subsidiary

Shenzhen SEG SEG Credit Co.,    Short-term         April 14,                                                            Market                                        Controlling
                                                                     3,000                   None                                                         No                          Being fulfilled
Group Co., Ltd. Ltd.            financing          2017                                                                 pricing                                       subsidiary

Shenzhen SEG SEG Credit Co.,    Short-term         April 20,                                                            Market                                        Controlling
                                                                     4,500                   None                                                         No                          Being fulfilled
Group Co., Ltd. Ltd.            financing          2017                                                                 pricing                                       subsidiary

Shenzhen SEG SEG Credit Co.,    Short-term         May 17,                                                              Market                                        Controlling
                                                                     6,000                   None                                                         No                          Being fulfilled
Group Co., Ltd. Ltd.            financing          2017                                                                 pricing                                       subsidiary

Shenzhen SEG SEG Credit Co.,    Short-term         May 19,                                                              Market                                        Controlling
                                                                     3,500                   None                                                         No                          Being fulfilled
Group Co., Ltd. Ltd.            financing          2017                                                                 pricing                                       subsidiary

                SPDB Shenzhen
Shenzhen SEG                    Financial          April 7,                                                             Market
                Branch Tairan                                        8,300                   None                                                         No          None               Fulfilled
Group Co., Ltd.                 management         2017                                                                 pricing
                Sub-branch

                SPDB Shenzhen
Shenzhen SEG                    Financial          April 10,                                                            Market
                Branch Tairan                                        3,000                   None                                                         No          None               Fulfilled
Group Co., Ltd.                 management         2017                                                                 pricing
                Sub-branch

Shenzhen SEG ABC Shenzhen                          May 11,                                                              Market
                                Borrowing                           18,000                   None                                                         No          None            Being fulfilled
Group Co., Ltd. Branch                             2017                                                                 pricing

Shenzhen SEG ABC Shenzhen                          April 27,                                                            Market
                                Credit granting                     25,000                   None                                                         No          None            Being fulfilled
Group Co., Ltd. Branch                             2017                                                                 pricing


                                                                                                                                                                                                     58
                                                                                                       Fulltext of Semi-Annual Report 2017 of Shenzhen SEG Co., Ltd.

                SPDB Shenzhen                                                                                                                        Fulfilled
Shenzhen SEG                      Financial    June 22,                                   Market
                Branch Tairan                               5,000              None                                         No       None
Group Co., Ltd.                   management   2017                                       pricing
                Sub-branch

                SPDB Shenzhen                                                                                                                        Fulfilled
Shenzhen SEG                      Structural   June 22,                                   Market
                Branch Tairan                               4,000              None                                         No       None
Group Co., Ltd.                   deposits     2017                                       pricing
                Sub-branch

Shenzhen SEG ABC Shenzhen                      April 27,                     Cushman &
                                  Mortgage                 32,943   32,943                Fair value           32,943       No       None            Being fulfilled
Group Co., Ltd. Branch                         2017                           Wakefield

                Shenzhen Hongtu
                SEG Investment
                Management Co.,
Shenzhen SEG Ltd. and           Partnership    March 15,                                  Market
                                                            9,000              None                                         No       None            Being fulfilled
Group Co., Ltd. Shenzhen        agreement      2017                                       pricing
                Guiding Fund
                Investment Co.,
                Ltd.

                Shenzhen SEG
Shenzhen SEG Industrial                        August 1,                                  Free of                                    Controlling
                                  Borrowing                 4,200              None                                         No                       Being fulfilled
Group Co., Ltd. Investment Co.,                2014                                       interest                                   subsidiary
                Ltd.

                Suzhou SEG
Shenzhen SEG Digital Plaza                     June 8,                                    Free of                                    Controlling
                                Borrowing                   1,000              None                                         No                       Being fulfilled
Group Co., Ltd. Management Co.,                2015                                       interest                                   subsidiary
                Ltd.




                                                                                                                                                                  59
                                                                 Fulltext of Semi-Annual Report 2017 of Shenzhen SEG Co., Ltd.


XV. Social responsibility

1. Fulfillment of the social responsibility for targeted poverty alleviation

According to the national decision to fight against poverty and the work arrangements of Shenzhen CPC Committee, the
People's Government of Shenzhen, State-owned Assets Supervision and Administration Commission of Shenzhen, and
SEG Group on three-year targeted poverty alleviation, SEG Group was designated to provide poverty alleviation aid for
Zishi Village, Zishi Town, Longchuan County, Heyuan. After receiving the task, the CPC Committee and leaders of the
Company fully realized the importance, arduousness and urgency of poverty alleviation and development in the new
period. Our thoughts and actions followed the spirits conveyed by important talks of Xi Jinping, CPC General Secretary
and decisions and arrangements on targeted poverty alleviation of government at all levels and the upper CPC committee.
SEG Group promptly appointed the leader of the work team and arranged for special personnel to stay at villages for
poverty alleviation. According to unified arrangements of SEG Group, the Company and its controlling subsidiaries
aided 20 low-income families and 46 impoverished persons.
In the first half of 2017, the Company organized "targeted poverty alleviation on campus and study assistance". In March,
the Company donated caring materials to Heyuan Zishi Town Central Primary School and brought STEAM creative
programs to students. In March, the Company arranged for merchants to visit Zishi and consoled low-income families.
Planning for subsequent targeted poverty alleviation: 1. The Company will increase efforts on industrial projects for
targeted poverty alleviation, and promote the pigeon eco-breeding program in the form of enterprises + farmers
according to the uniform arrangement of Longchuan CPC Committee; 2. the Company will promote infrastructure
projects and complete the villager cultural activity plaza, road hardening project, and drinking water purification
transformation.

2. Environmental protection

Are the listed company and its subsidiaries key polluters publicized by the environmental protection department?
Not applicable

XVI. Notes to other major events

√ Applicable □ Not applicable

                                                                                   Inquiry index for the websites disclosing the
          Overview of major events                   Disclosure date
                                                                                                temporary reports

1. Related matters on major assets                  January 18, 2017              Announcement of Shenzhen SEG Co., Ltd.
restructuring progress                                                            about Obtaining Approval on Issuing Shares,
      On January 17, 2017, the Company                                            Acquiring Assets by Cash and Raising
receives the Approval on Shenzhen SEG Co.,                                        Supporting Funds as well as Related
Ltd.'s Issuing Shares, Acquiring Assets and                                       Transactions from China Securities
Raising Supporting Funds to Shenzhen SEG                                          Regulatory Commission disclosed on
Group Co., Ltd. (Z. J. X. K. [2017] No. 21)                                       http://www.cninfo.com.cn/
issued by China Securities Regulatory
                                                    January 18, 2017              Report of Shenzhen SEG Co., Ltd. about
Commission, to approve such matters as the
                                                                                  Issuing Shares, Acquiring Assets by Cash and
Company's issuing shares and acquiring assets
                                                                                  Raising Supporting Funds as well as Related
by cash and raising supporting funds.
                                                                                  Transactions (Revised) disclosed on
    At present, the Company has completed                                         http://www.cninfo.com.cn/
the share issuing and transfer of related
underlying assets acquired by cash, the capital     January 25, 2017              Announcement of Shenzhen SEG Co., Ltd.
verification procedures of the newly-added                                        about Ownership Transfer Situations of the
registered capital and the procedures of                                          Underlying Assets Related to Issuing Shares,
issuing new shares to SEG Group. But the                                          Acquiring Assets by Cash and Raising
                                                                                  Supporting Funds as well as Related



                                                                                                                              60
                                                                Fulltext of Semi-Annual Report 2017 of Shenzhen SEG Co., Ltd.


Company still need to raise supporting funds                                     Transactions disclosed on
for the non-public offering of shares from no                                    http://www.cninfo.com.cn/
more than 10 specific investors within the
valid term of the documents approved by the         March 4, 2017                Announcement of Shenzhen SEG Co., Ltd.
China Securities Regulatory Commission.                                          about Implementation Situations of Issuing
                                                                                 Shares, Acquiring Assets by Cash and Raising
                                                                                 Supporting Funds as well as Related
                                                                                 Transactions and Newly-Added Shares Listing
                                                                                 disclosed on http://www.cninfo.com.cn/

2. Event that the controlling shareholder SEG        May 15, 2017                Announcement of Shenzhen SEG Co., Ltd.
Group extends the lockup period of shares:                                       about the Controlling Shareholder SEG Group
For 20 consecutive trading days from April                                       Extending the Lockup Period of Shares
18, 2017 to May 16, 2017, the Company's                                          disclosed on http://www.cninfo.com.cn/
share price is lower than RMB 9.94/share, i.e.
the price of issuing shares to acquire assets
this time. Thus, the lockup period 450,857,239
shares issued by the Company to the
Company's controlling shareholder SEG
Group in this restructuring will be
automatically extended for another six months
after 36 months from the listing date of the
aforesaid shares.

3. Investing in Shenzhen SEG Zhongtong               April 7, 2017               Announcement of Shenzhen SEG Co., Ltd.
Technology Co., Ltd. and participating in the                                    about Investing in Shenzhen SEG Zhongtong
Station Train Wi-Fi Project of China Railway                                     Technology Co., Ltd. and Participating in the
Current progress of SEG Zhongtong Project:                                       Station Train Wi-Fi Project of China Railway
(1) SEG Zhongtong has obtained the Radio                                         disclosed on http://www.cninfo.com.cn/
Transmission Equipment Model Approval
Certificate issued by the Ministry of Industry
and Information Technology of the People's
Republic of China in July 2017; (2) The
operation team of SEG Zhongtong has been
established; at present the Company's
operating status is normal.

4. The Company implementing the annual               July 6, 2017                Announcement of Shenzhen SEG Co., Ltd.
equity distribution in 2016                                                      about I Profit Distribution and Capital
The Company passed the Proposal on Profit                                        Reserves Converting into Capital Stock in
Distribution and Capital Reserves Converting                                     2016 disclosed on http://www.cninfo.com.cn/
into Capital Stock in 2016 through
                                                    August 11, 2017              Implementation Announcement of Shenzhen
deliberation of the Fourth Extraordinary
                                                                                 SEG Co., Ltd. about the Annual Equity
General Meeting of Shareholders in 2017. In
                                                                                 Distribution in 2016 disclosed on
accordance with the aforesaid proposal and the
                                                                                 http://www.cninfo.com.cn/
Implementation Announcement of Shenzhen
SEG Co., Ltd. about the Annual Equity
Distribution in 2016 issued on August 11,
2017, the annual equity distribution scheme of
the Company in 2016 are as follows: based on
the total existing general capital of
1,235,656,249 shares, the Company distributes
RMB 0.3 by cash (taxes included) for every 10
shares to all shareholders; the registration date
of A shares is August 16, 2017, and the



                                                                                                                             61
                                                                Fulltext of Semi-Annual Report 2017 of Shenzhen SEG Co., Ltd.


ex-dividend date is August 17, 2017; the last
trading date of B shares is August 16, 2017,
the registration date is August 21, 2017, and
the ex-dividend date is August 17, 2017. As of
the date of this report, the Company's equity
distribution has been finished.

5. Event relating to change of directors and         July 6, 2017                Announcement of Shenzhen SEG Co., Ltd.
supervisors                                                                      about Resignation of the Company's Director
Cao Xiang, Director of the Company, and Xu                                       and Supervisor disclosed on
Ning, Supervisor of the Company, submitted a                                     http://www.cninfo.com.cn/
written resignation report to the Board of
Directors and the Board of Supervisors on July       July 21, 2017               Announcement of Shenzhen SEG Co., Ltd.
4, 2017 respectively. The Company conducted                                      about the Resolution of the Fourth
a by-election of directors and supervisors                                       Extraordinary General Meeting of
according to the relevant laws and regulations                                   Shareholders in 2017 disclosed on
and the provisions and procedures stipulated                                     http://www.cninfo.com.cn/
in the Articles of Association. At the Fourth
Extraordinary      General     Meeting      of
Shareholders in 2017, Xu Laping is appointed
as Director of the Seventh Session of the
Board of Directors, and Liu Rongzhi as
Supervisor of the Seventh Session of the
Board of Supervisors.



6. Event about establishment of Shenzhen            August 11, 2017              Announcement of Shenzhen SEG Co., Ltd.
SEG One-City Technology Co., Ltd. and                                            about Establishment of Shenzhen SEG
construction and operation of SEG Maker                                          One-City Technology Co., Ltd. and
Education Technology Experience Museum                                           Construction and Operation of SEG Maker
The Company intends to invest RMB 10                                             Education Technology Experience Museum
million jointly with Shenzhen Yingmengxin                                        disclosed on http://www.cninfo.com.cn/
Technology Co., Ltd. to set up Shenzhen SEG
One-City Technology Co., Ltd. (its name shall
be subject to industrial and commercial
registration information) for the construction
and operation of SEG Maker Education
Technology Experience Museum, among
which the Company subscribed RMB 5.1
million, accounting for 51% of the shares;
Yingmengxin contributed RMB 4.9 million,
accounting for 49%.
SEG One-City is mainly used for the
construction and operation of SEG Maker
Education Technology Experience Museum,
to meet double positioning requirements of
scientific and technological innovation
education industry and cultural and creative
industry, build China's first block-style science
and technology theme park and Chinese youth
STEAM popular education standard base, and
become the first and world-class juvenile
maker education platform integrated with
scientific and technological innovation, maker
education, experience and fun, culture and


                                                                                                                           62
                                                                  Fulltext of Semi-Annual Report 2017 of Shenzhen SEG Co., Ltd.


creativity.

7.In the first quarter of 2017, the Company
carried out the major assets restructuring to
issue shares and acquire the underlying assets.
The assets transfer formalities of four
underlying companies on January 20, 2017,
i.e. SEG Real Estate, SEG Kangle, SegMaker,
SEG Property Development. Since February
2017, the above four underlying companies
will be included in the consolidated statement,
and the Company will track and adjust the
Company's annual financial statements upon
submitting the first-quarter statement. Since
the 2016 annual financial statements of the
four companies has not yet been audited upon
submitting the first-quarter statement, and as
of the end of the reporting period, the financial
statements of the four companies have been
audited by Shenzhen Branch of Zhongtianyun
Certified Public Accountants Co., Ltd., the
audit adjustment differences cause the
difference between the opening balance sheet
adjusted retrospectively by the report and the
he     opening     balance      sheet     adjusted
retrospectively in the first-quarter statement.


XVI. Major events of subsidiaries

√ Applicable □ Not applicable

1. SEG Real Estate and Shenzhen Branch of             March 1, 2017                Announcement on the Holding Subsidiary
China Huarong Asset Management Co., Ltd.                                           Shenzhen SEG Real Estate Investment Co.,
signed the Strategic Cooperation Agreement                                         Ltd. Signing the Strategic Cooperation
Following the principles of resource sharing,                                      Agreement with Shenzhen Branch of China
complementary advantages, and cooperative                                          Huarong Asset Management Co., Ltd.
development, both parties plan to use their                                        disclosed on http://www.cninfo.com.cn/
own platforms and resource advantages, to
jointly carry out cooperation in further
financial or broader areas, strengthen
exchanges and cooperation and create
opportunities for development

2. Event about SEG Lianzhong obtaining the           February 11, 2017             Announcement of Shenzhen SEG Lianzhong
Business License                                                                   Internet Technology Co., Ltd. Obtaining the
                                                                                   Business      License     disclosed      on
                                                                                   http://www.cninfo.com.cn/

3. SEG Longyan Technology won the use                 March 14, 2017               Announcement on the Holding Subsidiary
rights of the state-owned construction land by                                     Shenzhen SEG Longyan Energy Technology
RMB 28.01 million, which is located in Ebu                                         Co., Ltd. Bidding Land disclosed on
Town, Shenzhen-Shantou Special Cooperation                                         http://www.cninfo.com.cn/ by the Company
Zone, and whose land No. is "E2016-0026",
to use for cadmium telluride thin film                 April 6, 2017               Announcement on the Holding Subsidiary
photovoltaic industry base project.                                                Winning the Land Use Rights disclosed on



                                                                                                                            63
                                                          Fulltext of Semi-Annual Report 2017 of Shenzhen SEG Co., Ltd.


                                                                           http://www.cninfo.com.cn/ by the Company

4. The Company's holding grandson company      May 26, 2017                Announcement on Shenzhen SEG Property
SEG Property increases investment to                                       Management Co., Ltd. Increasing Investment
introduce strategic investors and supporting                               to Introduce Strategic Investors And
implementation management and core                                         Supporting Implementation Management and
backbone for holding, so as to optimize the                                Core Backbone for Holding disclosed on
capital allocation, improve operational                                    http://www.cninfo.com.cn/ by the Company
efficiency, and achieve benefit growth and
sustainable development.

5. The Company's holding grandson company      May 26, 2017                Announcement on Shenzhen SEG New City
SEG New City provides a phased guarantee                                   Construction and Development Co., Ltd.
with a loan limit of RMB 260 million for the                               Providing a Phased Guarantee for The
mortgage customers who purchase their                                      Mortgage Customers Who Purchase Their
development projects                                                       Development      Projects    disclosed   on
                                                                           http://www.cninfo.com.cn/ by the Company

                                               June 13, 2017               Announcement on the Resolution of the
                                                                           Second Extraordinary General Meeting of
                                                                           Shareholders    in   2017     disclosed  on
                                                                           http://www.cninfo.com.cn/ by the Company




                                                                                                                      64
                                                                                     Fulltext of Semi-Annual Report 2017 of Shenzhen SEG Co., Ltd.




             Chapter 6 Changes in Share Capital and Information on Shareholders
I. Changes in share capital

1. Changes in share capital

                                                                                                                                           Unit: Share

                                     Before the change                        Increase/decrease by (+, -)                         After the change

                                                                                           Share
                                                                                         converted
                                                                 Issue of    Bonus
                                    Quantity       Percentage                              from      Other       Subtotal       Quantity       Percentage
                                                                new shares   share
                                                                                         provident
                                                                                           Fund

I. Restricted shares                   77,439          0.01% 450,857,239             0           0   -11,000 450,846,239        450,923,678      36.49%

1. State-owned shares                          0       0.00%             0           0           0           0              0              0       0.00%

2.     Shares    held     by
                                               0       0.00% 450,857,239             0           0           0 450,857,239      450,857,239      36.49%
state-owned legal persons

3. Other domestic shares               77,439          0.01%             0           0           0   -11,000       -11,000          66,439         0.01%

Including: Shares held by
                                               0       0.00%             0           0           0           0              0              0       0.00%
domestic legal persons

Shares held by domestic
                                       77,439          0.01%             0           0           0   -11,000       -11,000          66,439         0.01%
natural persons

4. Shares held by foreign
                                               0       0.00%             0           0           0           0              0              0       0.00%
units

Including: Shares held by
                                               0       0.00%             0           0           0           0              0              0       0.00%
foreign legal persons

Shares held by         foreign
                                               0       0.00%             0           0           0           0              0              0       0.00%
natural persons

II. Unrestricted shares            784,721,571       99.99%              0           0           0    11,000        11,000      784,732,571      63.51%

1. RMB common shares               538,260,253       68.59%              0           0           0    11,000        11,000      538,271,253      43.56%

2.    Domestically        listed
                                   246,461,318       31.40%              0           0           0           0              0   246,461,318      19.95%
foreign shares

3. Overseas listed foreign
                                               0       0.00%             0           0           0           0              0              0       0.00%
shares

4. Others                                      0       0.00%             0           0           0           0              0              0       0.00%

III. Total shares                  784,799,010      100.00% 450,857,239              0           0           0 450,857,239 1,235,656,249        100.00%

Reason for changes
√ Applicable □ Not applicable
(1) On January 17, 2017, the Company received the Approval on Shenzhen SEG Co., Ltd.'s Issuing Shares to Shenzhen
SEG Group Co., Ltd. to Acquire Assets and Raise Supporting Funds (Z. J. X. K. [2017] No. 21) issued by the CSRC.



                                                                                                                                                      65
                                                                              Fulltext of Semi-Annual Report 2017 of Shenzhen SEG Co., Ltd.


Shenzhen SEG was approved to issue 450,857,239 shares to Shenzhen SEG Group for asset purchase. The said shares
were issued on March 6, 2017, and the total share capital of the Company is increased to 1,235,656,249 shares.
(2) The Company completed the general election of the Board of Directors and the Board of Supervisors in July 2016.
The number of restricted shares held by directors, supervisors, and senior executives are changed.
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 last year and previous report period
√ Applicable □ Not applicable
None
Other contents as deemed necessary by the Company or required by the securities regulatory authority to be disclosed
□ Applicable √ Not applicable

2. Changes in restricted shares

√ Applicable □ Not applicable
                                                                                                                                      Unit: Share

                   Restricted shares in Restricted shares                               Restricted shares at
                                                                   Increase in                                    Reason for
Shareholder name    the beginning of     released in the                                  the end of the                           Date of release
                                                                restricted shares                                 restriction
                       the period       reporting period                                      period

Shenzhen SEG                                                                                                   Seasoned equity
                                     0                      0        450,857,239               450,857,239                       2020.9.5
Group Co., Ltd.                                                                                                offering

                                                                                                           Restricted shares
Xu Ning                        15,000                       0                       0               15,000 held by senior        2019.7.15
                                                                                                           executives

                                                                                                            Restricted shares
Liu Zhijun                      7,500                       0                       0                 7,500 held by senior       2019.7.15
                                                                                                            executives

                                                                                                           Restricted shares
Zheng Dan                      31,939                       0                       0               31,939 held by senior        2019.7.15
                                                                                                           executives

                                                                                                           Restricted shares
Zhu Longqing                   12,000                       0                       0               12,000 held by senior        2019.7.15
                                       &