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个股公告正文

深赛格B:2017年年度报告(英文版)

日期:2018-04-24附件下载

    Shenzhen SEG Co., Ltd.
    
    2017 Annual Report
    
    2018-028
    
    April 2018
    
    Chapter 1 Important Notice, Contents, and Definitions
    
    The Board of Directors, the Board of Supervisors, the directors, the supervisors, and the
    
    senior executives guarantee that the annual report is authentic, accurate, and complete, and
    
    that it has no false records misleading statements or major omissions and they commit to the
    
    individual and joint legal liabilities.
    
    Chairman of the Board of Directors Chen Huijie, the Chief Financial Officer Liu Zhijun and
    
    the responsible person of the accounting institution (Accountant in charge) Ying Huadong
    
    hereby declare that the Financial Statements enclosed in this annual report are true,
    
    accurate and complete.
    
    All directors other than the following directors have attended this board meeting and
    
    reviewed the annual report.
    
        Nameofdirectornotpresent      Positionofdirectornot      Reasonforabsence         Nameofproxy
                                      present
    Yu Qian                     Director               Forwork              ChenHuijie
    Li Luoli                     Independentdirector       Forwork              FanZhiqing
    Song Pingping                 Independentdirector       Forwork              FanZhiqing
    
    
    The future plans, development strategies and other forward-looking statements mentioned in
    
    the annual report do not constitute substantial commitments to investors of the Company.
    
    Investors are advised to pay attention to investment risks.
    
    According to the profit distribution plan deliberated and adopted by the meeting of the
    
    Board of Directors, based on 1,235,656,249 share capital, the Company will distribute cash
    
    dividend of RMB 0.55 (tax included) for every 10 shares and 0 bonus share (tax included) to
    
    all shareholders, and will not transfer reserves into share capital.
    
    CONTENTS
    
    Chapter 1 Important Notice, Contents, and Definitions ..........................................2
    
    Chapter 2 Company Profile and Main Financial Indexes........................................6
    
    Chapter 3 Overview of Business ...............................................................................11
    
    Chapter 4 Management Discussion and Analysis ...................................................14
    
    Chapter 5 Important Matters ...................................................................................46
    
    Chapter 6 Changes in Share Capital and Information on Shareholders............117
    
    Chapter 7 Preferred Shares.....................................................................................124
    
    Chapter 8 Information on Directors, Supervisors, Senior Executives and Employees 126
    
    Chapter 9 Corporate Governance ..........................................................................138
    
    Chapter 10 Corporate Bonds ..................................................................................153
    
    Chapter 11 Financial Report...................................................................................154
    
    Chapter 12 Documents Available for Reference....................................................154
    
    Definitions
    
                 Definition               Refersto                     Description
    This Company,theCompany,thelisted         Refersto   ShenzhenSEGCo.,Ltd.
    company, ShenSEG
    Shenzhen SEGGroupCo.,Ltd.              Refersto   ShenzhenSEGGroupCo.,Ltd.
    Longgang SEG                         Refersto   ShenzhenSEGElectronicsMarketManagementCo.,Ltd.
    Suzhou SEG                          Refersto   SuzhouSEGElectronicsMarketManagementCo.,Ltd.
    Suzhou SEGDigital                     Refersto   SuzhouSEGDigitalPlazaManagementCo.,Ltd.
    Nanjing SEG                          Refersto   ShenzhenSEGNanjingElectronicsMarketManagementCo.,
                                                Ltd.
    Xi'an SEG                            Refersto   Xi'anSEGElectronicsMarketCo.,Ltd.
    Xi'an HairongSEG                      Refersto   Xi'anHairongSEGElectronicsMarketCo.,Ltd.
    Changsha SEG                         Refersto   ChangshaSEGDevelopmentCo.,Ltd.
    Wujiang SEG                          Refersto   WujiangSEGMarketManagementCo.,Ltd.
    Wuxi SEG                            Refersto   WuxiSEGElectronicsMarketCo.,Ltd.
    Shunde SEG                          Refersto   ShundeSEGElectronicsMarketManagementCo.,Ltd.
    Nanning SEG                          Refersto   NanningSEGDigitalPlazaManagementCo.,Ltd.
    Shanghai SEG                         Refersto   ShanghaiSEGElectronicsMarketCo.,Ltd.
    SEG Baohua                          Refersto   ShenzhenSEGBaohuaEnterpriseDevelopmentCo.,Ltd.
    SEG Industrial                         Refersto   ShenzhenSEGIndustrialInvestmentCo.,Ltd.
    SEG Credit                           Refersto   ShenzhenSEGCreditCo.,Ltd.
    Nantong SEG                          Refersto   NantongSEGTimesPlazaManagementCo.,Ltd.
    Nantong SEGOperation                   Refersto   NantongSEGCommercialOperationManagementCo.,Ltd.
    SEG Intelligent                         Refersto   SuzhouSEGIntelligentTechnologyCo.,Ltd.
    SEG Investment                        Refersto   ShenzhenSEGInvestmentManagementCo.,Ltd.
    Longyan Application                     Refersto   ShenzhenSEGLongyanNewEnergyApplicationand
                                                Development Co.,Ltd.
    SEG LongyanTechnology                 Refersto   ShenzhenSEGLongyanEnergyTechnologyCo.,Ltd.
    Hangzhou SEGLongyan                  Refersto   HangzhouSEGLongyanEnergyTechnologyCo.,Ltd.
    SEG Lianzhong                        Refersto   ShenzhenSEGLianzhongInternetTechnologyCo.,Ltd.
    SEG Zhongtong                        Refersto   ShenzhenSEGZhongtongTechnologyCo.,Ltd.
    SEG RealEstateInvestment                Refersto   ShenzhenSEGRealEstateInvestmentCo.,Ltd.
                 Definition               Refersto                     Description
    SEG PropertyDevelopment                Refersto   ShenzhenSEGPropertyDevelopmentCo.,Ltd.
    SEG Recreation                        Refersto   ShenzhenSEGRecreationEnterpriseDevelopmentCo.,Ltd.
    SegMaker                            Refersto   ShenzhenSegMakerCo.,Ltd.
    SEG PropertyManagement                 Refersto   ShenzhenSEGPropertyManagementCo.,Ltd.
    SEG NewUrban                        Refersto   ShenzhenSEGNewUrbanConstructionDevelopmentCo.,Ltd.
    SEG Yicheng                          Refersto   ShenzhenSEGYichengScienceandTechnologyCo.,Ltd.
    Target companies                       Refersto   SEGRealEstate,SEGPropertyDevelopment,SEGRecreation
                                                and SegMakerthatmajorassetsareinjectedinto
    Xi'an SEGKanghong                     Refersto   Xi'anSEGKanghongRealEstateCo.,Ltd.
    Huizhou Stars                         Refersto   HuizhouStarsRealEstateDevelopmentCo.,Ltd.
    Beijing SEG                          Refersto   BeijingSEGPropertyDevelopmentCo.,Ltd.
    SEG Wisdom                          Refersto   SEGWisdomSportsandCultureDevelopmentCo.,Ltd.
    Mellow OrangeHotel                    Refersto   ShenzhenMellowOrangeBusinessHotelManagementCo.,Ltd
    Maker Hotel                          Refersto   SEGMakerHotelManagementCo.,Ltd.
    Huakong SEG                         Refersto   ShenzhenHuakongSEGCo.,Ltd.
    SEG Navigations                       Refersto   ShenzhenSEGGPSScientificNavigationsCo.,Ltd.
    CEEC                               Refersto   ChinaInternationalConsumerElectronicsExhibition/Exchange
                                                Center
    Longyan EnergyTechnology                Refersto   LongyanEnergyTechnology(Hangzhou)Co.,Ltd.
    Wangyu Technology                     Refersto   ShanghaiWangyuInformationTechnologyCo.,Ltd.
    Zhonghai SEGIntelligentParking            Refersto   ShenzhenZhonghaiSEGIntelligentParkingDevelopmentCo.,
                                                Ltd.
    Tencent                              Refersto   ShenzhenTencentComputerSystemCo.,Ltd.
    Fujian Babycat                         Refersto   FujianBabycatAnimationTechnologyCo.,Ltd.
    Zhuhai Zhongtong                       Refersto   ZhuhaiZhongtongLexingNetworkTechnologyCo.,Ltd.
    Allied eSports                         Refersto   TianjinAlliedeSportsInternetTechnologyCo.,Ltd.
    Shenzhen SASAC                       Refersto   State-ownedAssetsSupervisionandAdministrationCommission
                                                of ShenzhenMunicipality
    CSRC                               Refersto   ChinaSecuritiesRegulatoryCommission
    Shenzhen SecuritiesRegulatoryBureau         Refersto   ShenzhenSecuritiesRegulatoryBureauofChinaSecurities
                                                Regulatory Commission
    Articles ofAssociation                    Refersto   ArticlesofAssociationofShenzhenSEGCo.,Ltd.
    Unless otherwisespecified,theamountreferred    Refersto   AmountinRMB
    to inthereport
    Reporting period                        Refersto   FromJanuary1,2017toDecember31,2017
    
    
    Chapter 2 Company Profile and Main Financial Indexes
    
    I. Basic Information
    
    Stock abbreviation        SHENSEG,SHENSEGB         Stockcode            000058,200058
    Changed stockabbreviation(if None
    any)
    Listed on               ShenzhenStockExchange
    Company nameinChinese   ShenzhenSEGCo.,Ltd.
    Company nameinChinese   SHENSEG
    Company nameinEnglish(if SHENZHENSEGCO.,LTD.
    any)
    Company nameabbreviations None
    in English(ifany)
    Legal representative       ChenHuijie
    Registered address        31/F,TowerA,StarsPlaza,HuaqiangRoad(N),FutianDistrict,Shenzhen
    Post code              518028
    Office address           31/F,TowerA,StarsPlaza,HuaqiangRoad(N),FutianDistrict,Shenzhen
    Post code              518028
    Website                http://www.segcl.com.cn
    E-mail                 segcl@segcl.com.cn
    
    
    II. Contact Information
    
                                    SecretaryoftheBoardofDirectors       Securitiesaffairsrepresentative
    Name                         PengAiyun
    Contact address                   31/F,TowerA,StarsPlaza,HuaqiangRoad
                                 (N), FutianDistrict,Shenzhen
    Phone                         0755-83747939
    Fax                           0755-83975237
    E-mail                         segcl@segcl.com.cn
    
    
    III. Information Disclosure and Filing Site
    
    Media selectedbytheCompanyforinformation     ChinaSecuritiesJournal,SecuritiesTimes,SecuritiesDailyandHongKong
    disclosure                              CommercialDaily
    Website selectedbyCSRCforpublishingtheannual  http://www.cninfo.com.cn(CninfoWebsite)
    report
    The placewheretheannualreportispreparedand    Secretary'sOfficeofBoardofDirectors,31/F,TowerA,StarsPlaza,
    kept                                  HuaqiangRoad(N),FutianDistrict,Shenzhen
    
    
    IV. Changes in Registration Information
    
    Organization code                 91440300279253776E
                                 Changes tobusinessscopeonJuly6,2005:Domesticcommerce,goodssupplyand
                                 sale (excludingcommoditiesunderspecialoperation,controlandsale),industrial
    Changes inmainbusinesssincethe      investment(licensesforspecificprojectsshallbesubjecttoapplicationona
    Company's listing(ifany)            case-by-casebasis),economicinformationconsultancy,propertylease,realestate
                                 agency, andoperationofSEGelectronicsmarkets(thelicensefortheprofessional
                                 market shallbefurtherappliedfor).
                                 Alteration ofregistrationinformationonSeptember28,2016:Thebusinessscopeof
                                 the Companyischangedtoinvestmentinindustrialprojects(specificitemstobe
                                 declared separately);operationandmanagementofelectronicsmarkets;onlinetrade;
                                 Internet technologydevelopment;advertisingbusiness;housingleasing;salesof
                                 computers, software,auxiliaryequipment,andelectronicproducts;culturalandartistic
                                 exchange activityplanning(excludingperformances);exhibitionactivities;investment
                                 in andmanagementofchildren'sindustrialchainprojects;children'splayground
                                 equipment leasing(excludingfinancialleasingactivities);playgroundmanagementand
                                 services (limitedtobranchmanagement);cateringservices(limitedtobranch
                                 management); businessmanagementconsulting;educationconsulting;wholesaleand
                                 retail ofpre-packagedfood,unpackedfood,anddairyproducts(includinginfant
                                 formula milkpowder)(limitedtobranchmanagement);salesofstationery,craftgifts,
                                 toys, children'sclothing,electronicproducts,handicrafts,anddailynecessities;
                                 photography services;technicaldevelopmentofnewenergy;EPCofphotovoltaic
                                 power generationandbuildingintegratedphotovoltaic(BIPV)engineering;technical
                                 development andservicesofCdTefilmsolarcellmodules;investmentinphotovoltaic
                                 power plants,contractingofBIPVcurtainwallengineering;domestictrade(excluding
                                 franchised goods,proprietarygoods,andgoodsunderspecialcontrol).(Anyitem
                                 subject toapprovalpursuanttolawscanbeoperatedonlyafterapproval.)Information
                                 services (limitedtoInternetinformationservices);salesoffood;manufacturingand
                                 sales ofCdTesolarcellmodules.
    Changes indominantstockholders(ifany) None
    
    
    V. Other Relevant Information of the Company
    
    The accounting firm employed by the Company:
    
    Name oftheaccountingfirm     DaHuaCertifiedPublicAccountants(SpecialGeneralPartnership)
    Address oftheaccountingfirm    Room1101,11/F,Tower7,No.16Block,XisihuanRoad(M),HaidianDistrict,Beijing
    Name ofthecertifiedpublic      ZhangZhaochengandLiuGuoping
    accountant
    
    
    The sponsor firm employed by the Company for fulfilling the duties of continuous supervision in the reporting
    
    period:
    
    □ Applicable √ Not applicable
    
    The financial advisor employed by the Company for fulfilling the duties of continuous supervision in the
    
    reporting period:
    
    √ Applicable □ Not applicable
    
      Name offinancialadvisor     Officeaddressoffinancial        Nameofhandler      Continuoussupervisionperiod
                                  advisor
    China MerchantsSecuritiesCo., 38-45F,JiangsuBuilding,YitianWang Xinlei, Luo Li (changed From March 2017 to December
    Ltd.                   Road,FutianDistrict,Shenzhen inApril2018)            2018
    
    
    VI. Main Accounting Data and Financial Indexes
    
    Are retrospective adjustments made to previous financial statements?
    
    √ Yes □ No
    
    Reason for retrospective adjustments or restatement
    
    According to 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 China Securities Regulatory
    
    Commission (CSRC), the Company issued 450,857,239 shares to the controlling shareholder SEG Group to
    
    acquire assets of four target companies. Such share issuance for asset acquisition is business combination under
    
    common control. According to the Accounting Standards for Enterprises No. 20 – Business Combination, the
    
    opening balance in the balance sheet statement and the amount incurred in the same period last year are subject
    
    to retrospective adjustment.
    
                                                           Year-on-year
                             2017             2016          increase/decr          2015
                                                              ease
                                        Before       After       After       Before       After
                                      adjustment    adjustment    adjustment    adjustment    adjustment
     Operatingincome(Yuan)     1,981,307,55  672,384,276.  1,371,044,98      44.51%  741,533,676.  1,812,676,97
                                 8.23         47        2.11                    93        9.61
     Netprofitattributableto      219,553,261.  107,560,213.  246,062,783.             74,242,090.4
     shareholdersofthelisted            10         41         31     -10.77%          9  176,302,276.
     company(Yuan)                                                                        77
     Netprofitattributableto
     shareholdersofthelisted     148,677,556.  29,705,359.6  22,248,698.5             84,931,560.6
     companyafterdeductionof           32          3          9     568.25%          8  67,551,197.9
     non-recurringprofitandloss                                                                 2
     (Yuan)
     Netcashflowarisingfrom    507,386,549.  -120,030,057  443,535,540.      14.40%   -12,453,523.  -204,641,269
     operatingactivities(Yuan)           21         .68         78                    82         .58
     BasicEPS(Yuan/Share)          0.1777      0.1371      0.1991     -10.76%      0.0946      0.1427
     DilutedEPS(Yuan/Share)         0.1777      0.1371      0.1991     -10.76%      0.0946      0.1427
     WeightedaverageROE          11.96%       7.11%      11.15%       0.81%       5.19%       8.24%
                                                           Year-on-year
                                           End of2016        increase/decr        Endof2015
                           Endof2017                           ease
                                        Before       After       After       Before       After
                                      adjustment    adjustment    adjustment    adjustment    adjustment
     Totalassets(Yuan)         6,992,590,42  2,548,276,26  6,923,273,09       1.00%  2,614,660,52  5,980,165,40
                                 0.75        5.32        3.64                   4.37        1.09
     Netassetsattributableto      1,917,228,37  1,548,200,64  2,412,301,07             1,475,126,22
     shareholdersofthelisted           0.15        7.55        0.04     -20.52%        9.16  2,129,168,59
     company(Yuan)                                                                       9.26
    
    
    VII. Differences in 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
    
    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.
    
    3. Reason for differences in accounting data under international accounting standards and Chinese
    
    accounting standards
    
    □ Applicable √ Not applicable
    
    VIII. Major quarterly financial indexes
    
    Unit: Yuan
    
                                      Quarter1        Quarter2        Quarter3        Quarter4
    Operating income                     264,775,121.17   1,124,185,810.84    264,775,121.17   1,124,185,810.84
    Net profitattributabletoshareholdersofthe     31,609,057.25     18,399,728.17     19,184,279.34    150,360,196.34
    listed company
    Net profitattributabletoshareholdersofthe
    listed companyafterdeductionof            30,418,650.93       360,232.34     19,569,428.60     98,329,244.46
    non-recurring profitandloss
    Net cashflowfromoperatingactivities        44,232,089.23     48,893,189.51    187,037,443.86    227,223,826.61
    
    
    Are there any significant differences between the financial indexes or their totals in the preceding table and those
    
    described in the disclosed quarterly reports or annual reports?
    
    □ Yes √ No
    
    IX. Items and amount of non-recurring profit and loss:
    
    √ Applicable □ Not applicable
    
    Unit: Yuan
    
                 Item               Amountof2017   Amountof2016 Amountof2015       Remarks
                                                                         Gainsonreductionof
    Profit orlossondisposalofnon-current                                          holding-sharesofHuakong
    assets (includingthewrite-offofassets        54,066,201.12   89,459,793.78    -257,269.63 SEGandsalesoftheequity
    depreciation reserves)                                                      ofWuxiSEGduringthe
                                                                         reportingperiod.
    Tax return,reductionorexemptionwith
    unauthorized approvalorwithoutany
    official approvaldocument
    Government subsidiesrecognizedin
    current profitorloss(exceptthoseclosely
    related tocorporatebusinessandenjoyed        6,416,623.72    9,828,264.76    980,956.24
    according tonationalstandardsorcertain
    quota)
    Fund appropriationchargesfor
    non-financial entitiesrecognizedin            2,376,532.33    3,097,500.00   3,414,955.63
    current profitorloss
    Gains onlessacquisitioncostsof
    subsidiaries, associatesandjointventures
    than theaccruedfairvalueofthe
    investee's identifiablenetassets
    Profit orlossonnon-monetaryassets
    exchange
    Profit orlossoninvestmentorasset          15,843,427.61    9,844,238.42  15,188,228.82
    management inproxy
    Provision forimpairmentofassetsdueto
    force majeure(suchasnaturaldisasters)
    Profit orlossondebtrestructuring
    Corporate restructuringcosts,suchas                      -1,439,958.00         0.00
    staffing expensesandintegrationcosts
    Profit orlossonthepartexceedingthe
    fair valueinunfairtransactions
    Current netprofitorlossofsubsidiaries
    incurred bybusinesscombinationunder        10,632,970.71   197,406,948.04 127,043,092.65
    common controlfromthebeginningof
    the reportingperiodtothedateofmerger
    Profit orlossoncontingenciesunrelated
    to businessoperationoftheCompany
    Profit orlossonchangesinfairvaluedue
    to holdingoftradingfinancialassetsand
    trading financialliabilitiesandinvestment
    income fromdisposaloftradingfinancial
    assets, tradingfinancialliabilitiesand
    available-for-sale financialassetsapart
                 Item               Amountof2017   Amountof2016 Amountof2015       Remarks
    from validhedgingoperationsrelatedto
    business operationoftheCompany
    Transferred-back impairmentprovision
    for accountsreceivable,forwhich                               0.00    469,871.93
    separate impairmenttestsarecarriedout
    Profit orlossonconsignmentloan
    Profit orlossonchangesinfairvalueof
    investment propertysubsequently
    measured bythefairvalue
    Impact ofone-timeadjustmentonthe
    current profitorlossasrequiredby
    taxation oraccountinglawsand
    regulations
    Trustee feefromentrustedoperation            143,444.42      188,679.24    200,000.00
                                                                         Lossesfromlitigation
    Other non-operatingincomeandexpenses       8,349,713.60    -3,068,241.76  -13,043,897.59 compensationofHainan
    except theabove-mentioneditems                                              nanhaimingzhurealestate
                                                                         andFuraoeatate
    Other itemsconformingtothedefinition
    of non-recurringprofitandloss
    Subtotal                             97,828,913.51   305,317,224.48 133,995,938.05
    Less: Amountofaffectedincometax          24,815,042.12   21,534,040.30   5,819,109.22
      Amountofinfluenceofminority            2,138,166.61   59,969,099.47  19,425,749.98
    shareholders' equity(aftertax)
    Total                                70,875,704.78   223,814,084.72 108,751,078.85         --
    
    
    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
    
    Chapter 3 Overview of 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 2017, the Company has completed major assets restructuring, further improved the overall market size, share
    
    and profitability, and promoted the transformation and upgrading of the original traditional business. In the major
    
    assets restructuring, the Company purchased 100% of the equity of SegMaker, 55% of the equity of SEG
    
    Recreation, 100% of the equity of SEG Property Development and 79.02% of the equity of SEG Real Estate held
    
    by SEG Group by 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 document on the major assets restructuring issued by the CSRC. In the reporting
    
    period, the Company has completed asset transfer and issued 450,857,239 shares to SEG Group on March 6,
    
    2017.
    
    After restructuring, the main business of the Company has not changed substantially, including the development
    
    and operation of electronics markets and supporting projects, property leasing and management services,
    
    commercial real estate (industrial park) business, microcredit business, budget hotel business, trade and channel
    
    business. Business model: On the basis of the electronics markets, commercial real estate (industrial parks),
    
    marker business, and new energy business, the Company combines multiple business models, develops the
    
    overall resource advantages, 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 and operation of industrial parks, and builds a new SEG industrial ecosystem. By innovation in the
    
    business model, investment, M&A, the Company transforms itself into a platform for diversified strategic
    
    emerging industries and becomes a leader in high-end manufacturing and services.
    
    (II) Current situation of industries
    
    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, and deploys full industry chains.
    
    2. Commercial(industrial park) 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 new normal. The government
    
    becomes more rational and attaches more importance to market regulation and control. As the market
    
    mechanism and the investor sentiment grow mature, commercial real estate will step into a rational and stable
    
    development stage.
    
    2. Maker industry
    
    Relying on its advantages in the electronic component industry, Shenzhen has initially formed three maker
    
    clusters, namely Qianhai, Citizens 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.
    
    (II) Industrial position of the Company
    
    Having been dedicated to the electronics market industry for nearly 30 years, the Company is the founder of the
    
    electronics market operation model in 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
    
              Mainassets                            DescriptionofSignificantChanges
                                Inthereportingperiod,theequityincreasedby4.08%yearonyear,mainlybecause
                                (1)Inthereportingperiod,theCompanycontributedRMB17,500,000toShenzhen
    Equity                        ZhonghaiSEGIntelligentParkingDevelopmentCo.,Ltd.,accountingfor29.75%ofits
                                equity.
                                (2)Inthereportingperiod,theCompanyreduced10,000,000holding-sharesofHuakong
                                SEGandthelong-termequityinvestmentofRMB9,125,600.
                                Inthereportingperiod,fixedassetsincreasedby19.94%yearonyear,mainlybecause
    Fixed assets                    SEGLianzhongpurchasedcomputers,broadcastingequipment,stagesandLEDsystems
                                (RMB11,914,100).
                                Inthereportingperiod,intangibleassetsincreasedby1087.08%yearonyear,mainly
    Intangible assets                 becauseShenzhen-ShantouCooperationZoneSEGLongyanEnergyTechnologyCo.,
                                Ltd.paidRMB28,010,000forthelanduserightinthereportingperiod.
                                In the reporting period, construction in progress increased by 93.42% year on year,
                                mainlydueto(1)expensesincurredbyrenovationofEconomicBuildingHuaqiangnorth
    Construction inprogress            eSxhpeennzsheesni,nRcuercrreedatbioyndeBcuoirladtiinogn,oafnSdkySlaEnGdMInudsuesutrmialofBYuiicldhienngg(SRcMienBce2a0n,0d6T0e,0ch0n0o);lo(g2y)
                                (RMB 4,175,800). (3)mainly because Shenzhen-Shantou Cooperation Zone SEG
                                LongyanEnergyTechnologyCo.,Ltd.PaidRMB9,918,300for  consturction.
    Prepayment                    In the reporting period, prepayment decreased by 93.42% year on year,mainly because
                                SEGIndustrialredusedtheprepaymentofRMB30,359,900.
                                In the reporting period, other non-current assets increased by 575.77% year on year,
    Other non-currentassets            mainlybecause Shenzhen-Shantou CooperationZoneSEGLongyan EnergyTechnology
                                Co.,Ltd.paidRMB91,709,300forsomeequipment.
    
    
    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 Electronic 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
    
    Shenzhen Branded Markets "Influential 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 30 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 cooperated with Longyan Energy Technology, Wangyu Technology, Alibaba,
    
    Fujian Babycat, Tencent, and Zhuhai Zhongtong in such new business fields as new energy, e-sports,
    
    e-commerce, animation, and makers. The Company has promoted 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.
    
    Chapter 4 Operation Discussion and Analysis
    
    I. Overview
    
    In 2017, the Company has completed major assets restructuring. Benefiting from injection of core property and
    
    other business assets into the electronics market in Huaqiangbei area, the electronics market business size of the
    
    Company has expanded, laying a solid foundation for further development. Benefiting from injection of
    
    commercial real estate and property assets, the existing business of the Company will interwork. In this way, the
    
    Company has further enhanced its core competitiveness and going-concern ability.
    
    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 complex business model, vigorously promotes transformation and upgrading of the electronics
    
    market business, and continuously improves its operating capacity. At the same time, the Company actively
    
    explores innovation programs involving new energy, e-sports, and makers, and transforms itself into a platform
    
    for diversified strategic emerging industries. The Company develops the commercial real estate business
    
    according to the diversified development strategy featuring "real estate + culture + sports + finance +
    
    technology", integrates cultural real estate and sports real estate, enriches the content experience business types,
    
    expands its development scale, and promotes its market position.
    
    In the reporting period, the total revenue of the Company amounted to RMB 2,030,440,000 and increased by
    
    39.11% year on year. The total profit amounted to RMB 1,428,260,000 and increased by 2.72% year on year.
    
    The revenue and profit increased mainly because: (1) the income from property sales of SEG Real Estate
    
    increased; (2) after centralizing core property resources of Huaqiangbei, the property lease and management
    
    business made steady progress and the revenue and profit increased year on year.
    
    II. Analysis of Main Business
    
    1. Overview
    
    Is it the same as the overview disclosed in operation discussion and analysis?
    
    □ Yes √ No
    
    After restructuring, the main business of the Company includes the development and operation of electronics
    
    markets and supporting projects, property leasing services, commercial real estate (industrial park) business,
    
    microcredit business, budget hotel business, and trade and channel business.
    
    (I) Electronics market business and property leasing & management business
    
    With the rapid development of multiple shopping channels and changes in consumer behaviors, the electronics
    
    markets have been continuously impacted. In face of the difficulties, the Company actively transforms and
    
    upgrades its existing electronics market business, and adopts a complex business model to create a
    
    comprehensive electronics market where multiple business types co-exist. The Company also constantly
    
    improves services, enhances communication with the government, and perfects the original business types so as
    
    to ensure the Company's stable operating capacity and create new profit opportunities.
    
    The Company has developed strategic cooperation with Allied eSports, Wangyu Technology and Fujian Babycat,
    
    and has gradually expanded from operation of a single business platform to the content production and operation.
    
    As of December 2017, the Company's e-sports and children’s amusement park projects have been running
    
    steadily, and the transformation and development strategy have delivered results.
    
    Operation of new projects in the reporting period:
    
    Children's amusement park project: The park in Nantong branch store has been running steadily. The project
    
    team has developed a new park in Longgang branch store which is to finish decoration, prepare devices and
    
    apply for certificates.
    
    Internet café and e-sports project: The "Nantong Area Finals of the 2nd SEG E-Sports Suzhou-Nantong
    
    Competition" and "Nantong Area Finals of the 3rd SEG E-Sports Suzhou-Nantong Competition" have been
    
    successfully held in the Nantong branch store. The Nantong branch store has also cooperated with Nantong TV
    
    Station and local colleges to jointly host multiple e-sports events, including Nantong Tencent Hundreds of City
    
    Tournament and Daluandou. The Suzhou branch store and Soochow University jointly held the first e-sports
    
    competition of Soochow University.
    
    SEG-OURGAME e-sports stadium: The e-sports stadium in Shenzhen branch store has completed construction
    
    and fire inspection and is put into for trial operation. In September 2017, the stadium successfully held the
    
    "Overwatch Masters Cup" China Finals which attracted thousands of scene audience and more than 1 million
    
    online audience in two days. In October, the stadium successfully held "CS:GO Urban Elite Competition" as
    
    authorized by Perfect World. In December, the stadium held "QQ Space Arena of Valor Star Tournament" jointly
    
    with Tencent.
    
    The property leasing services of the Company cover the property leasing business of its headquarters and
    
    holding subsidiaries, including SEG Baohua, SEG Real Estate, SegMaker, SEG Recreation, and Nantong SEG
    
    Business Operation Company. In the reporting period, the Company has improved its property management
    
    capabilities and service quality, cut down costs and expenses, and attracted more investments. Thanks to these
    
    effective operation measures, the occupancy rates of SEG Baohua and SEG Recreation properties maintain at
    
    99%, and the overall performance of the property leasing services is stable.
    
    SEG Business Apartment of SegMaker was transformed from Building 6 of SEG Court located in the metro
    
    business district in Huaqiangbei and Huaqiangnan. Based on characteristics of the customer housing demands in
    
    Huaqiangbei, SegMaker carried out the customer-based diversified operation strategy, renovated and improved
    
    the hardware environment, introduced third-party service provider resources, and offered both short-term lease
    
    and long-term lease. In this way, the customer loyalty is built, and the occupancy rate maintains at a high level.
    
    Beijing SEG, a holding subsidiary of SEG Real Estate, rented the offices of Beijing Air China Property Hotel
    
    Management Co., Ltd. Air China Plaza Branch located at Air China Plaza, No. 36, Xiaoyun Road, Chaoyang
    
    District, Beijing. Beijing SEG intends to develop it into an operational service business center. It is the first
    
    project that SEG Real Estate launched in North China and also an important step for business deployment across
    
    the country. This will enhance the brand influence of SEG Real Estate.
    
    In the reporting period, the operating income of electronics markets and property leasing and management
    
    business amounted to RMB905,290,000, increasing by 9.23% year on year. The total profit amounted to RMB
    
    195,590,100, slightly decreasing year on year, mainly because the Company has continuously promoted the
    
    diversification, transformation and upgrading of electronics markets, brought in different industries in line with
    
    the transformation goal with preferential policies while keeping the original business types, and increase
    
    investment in new project development. As a result, the profit of the Company has decreased.
    
    (II) Commercial real estate (industrial park) business
    
    After restructuring, the real estate business of the Company is about the development, construction and operation
    
    of urban complexes (industrial parks).
    
    Development of the real estate business in the reporting period:
    
    1. Nantong SEG Times Plaza project
    
    Since its opening, Nantong SEG Times Plaza has improved the internal management quality and coordinated
    
    resources for targeted investment attraction to continuously increase the customer flow and enhance the regional
    
    influence and market value of SEG brand. In 2017, the Animation Industrial Park of Nantong SEG Times Plaza
    
    received the special fund from Nantong municipal government. At the same time, as the original animation
    
    products of the industrial park won the Best Works Award of Jiangsu, the influence of the animation industrial
    
    park is enhanced. Engineering settlement audit: In the reporting period, the completion rate of the second audit
    
    of Nantong SEG Times Plaza is 74% (based on the project cost ratio).
    
    2. SEG New Urban Plaza (Phase II) project (SEG ECO Center)
    
    SEG New Urban Plaza (Phase II) project is invested and developed by SEG New Urban, a holding subsidiary of
    
    SEG Real Estate. This project is located at the intersection of Bulong Road and Lianzhong Road, Buji
    
    Sub-district, Longgang District, Shenzhen. With a total development area of 108,000 m2, SEG New Urban Plaza
    
    (Phase II) is an iconic complex project integrating 5A offices, regional flagship stores, entry lux business
    
    apartments and business headquarters bases. The project won the title of "Shenzhen Major Project" and listed as
    
    a key project in Guangdong as recommended by Development and Reform Commission of Shenzhen. As of
    
    December 2017, the inspection and acceptance of the project has been completed.
    
    3. Huizhou Stars SEG Holiday Plaza project
    
    Huizhou Stars SEG Holiday Plaza is developed in three phases. As a commercial complex covering shopping,
    
    leisure, catering, culture and entertainment, it is designed to be a life and fashion culture center. Currently, the
    
    project is in development and construction of Phase I. The project covers 100,000 m2, comprising 5A offices and
    
    experience-oriented commercial shopping center. 5A offices of SEG Holiday Plaza Phase I – SEG Building was
    
    the best-selling offices in Huicheng District in 2015 and 2016. The commercial shopping center of SEG Holiday
    
    Plaza was officially open on April 14, 2016.
    
    By the end of December 2017, offices of SEG Holiday Plaza have almost been sold. Since opening, by
    
    continuous marketing and promotions, optimization of the merchant structure, and improvement of the shopping
    
    experience, SEG Holiday Plaza has become a community-based shopping center with the most distinctive
    
    culture, leisure and entertainment features. In the reporting period, SEG Holiday Plaza Phase II is in progress.
    
    4. Xi'an SEG Plaza project
    
    This project is located on Gaoxin 6th Road, Hi-tech Zone, Xi'an. The project will bring in such business types as
    
    electronic markets, leisure and entertainment, catering, finance, high-end offices and apartments, create a
    
    professional office cluster with regional spin-off effect and a experience-oriented urban complex centering on
    
    electronics markets, cinemas and leisure restaurants. In the reporting period, the Land Use Certificate, Land
    
    Planning Permit and Construction Planning Permit have been obtained for the project.
    
    In the reporting period, the operating income of the commercial real estate (industrial park) business amounted to
    
    RMB 883,600,000, increasing by 256.24% year on year, mainly because SEG Real Estate' income from real
    
    estate sales increased.
    
    (III) Microcredit business
    
    As China tightened financial risk control and financial regulation became strict in 2017, the loan interest rate in
    
    the microcredit industry declined. To reduce operating risks, SEG Credit reduced its business size, standardized
    
    its business process, and strengthening interest collection. These measures ensure normal operation of SEG
    
    Credit. However, the economic indicators obviously go down. In the reporting period, the operating income of
    
    the microcredit business amounted to RMB 49,130,000, decreasing by 44.50% year on year. To avoid potential
    
    financial risks, in March 2018, the Company decided to transfer 62% of the equity of SEG Credit held by the
    
    Company and its holding subsidiaries (see the Announcement on the Connected Transaction of Transfer of 62%
    
    of the Equity of SEG Credit Held by the Company and its Holding Subsidiaries released by the Company in
    
    designated information disclosure media. The transaction was deliberated and adopted at the 30th interim
    
    meeting of the 7th Board of Directors and the first extraordinary general meeting of 2018. After transfer, the
    
    Company will discontinue the microcredit business.
    
    (IV) Budget hotel business
    
    The Company has opened five budget hotels: four Mellow Orange Hotel branches (separately located on
    
    Changsha Wuyi Road, Changsha Xingsha, Shenzhen Bao'an, and Dongmen, and one SEG Maker Hotel in
    
    Huaqiangbei. In the reporting period, the operating income of the budget hotel business amounted to RMB
    
    42,050,000, increasing by 68.80% year on year, mainly because the Mellow Orange Hotel in Dongmen and SEG
    
    Maker Hotel were open.
    
    (V) Trade and channel business
    
    In the reporting period, the operating income of the trade and channel business amounted to RMB 150,360,000,
    
    decreasing by 47.12% year on year, mainly because: SEG Industrial has discontinued the trade business other
    
    than the government procurement platform business; SEG Intelligent Technology adjusted the smart home
    
    business and no longer underwrite large projects.
    
    2. Income and Cost
    
    (1) Formation of operating income
    
    Unit: Yuan
    
                               2017                          2016                Year-on-year
                       Amount       Percentageof       Amount       Percentageof    increase/decrease
                                   operatingincome                  operatingincome        (%)
    Total operating       2,030,445,390.62           100%   1,459,575,791.50           100%          39.11%
    income
    By sector
    Electronics market
    and propertyleasing     905,285,927.82         44.59%    793,204,704.80         54.34%         14.13%
    and management
    Real estate           883,601,001.00         43.52%    248,736,375.89         17.04%         255.24%
    development
    Trade               150,361,821.40          7.41%    284,331,867.85         19.48%         -47.12%
    Finance              49,137,832.39          2.42%     88,530,809.39          6.07%         -44.50%
    Hotel                42,058,808.01          2.07%     24,915,964.23          1.71%         68.80%
    E-commerce                                        19,856,069.34          1.36%
    By region
    Shenzhen           1,692,018,637.57         83.33%    908,164,964.11         62.22%         86.31%
    Xi'an                57,222,951.89          2.82%     61,087,396.36          4.19%          -6.33%
    Suzhou              138,598,817.14          6.83%    177,711,494.88         12.18%         -22.01%
    Changsha             23,401,682.40          1.15%     24,597,175.67          1.69%          -4.86%
    Nanjing              23,846,790.75          1.17%     24,795,038.43          1.70%          -3.82%
    Shunde               3,132,622.73          0.15%      3,020,405.16          0.21%          3.72%
    Beijing                 134,077.67          0.01%
    Huizhou              87,472,427.54          4.31%    254,378,434.59         17.43%         -65.61%
    Wuxi                 4,617,382.93          0.23%      5,820,882.30          0.40%         -20.68%
    
    
    (2) Information on industries, products or regions accounting for over 10% of operating income or
    
    operating profit
    
    √ Applicable □ Not applicable
    
    Should the Company abide by the disclosure requirements of special industries?
    
    No.
    
    Unit: Yuan
    
                                                        Year-on-year   Year-on-year    Year-on-year
                 Operatingincome  Operatingcost  Grossprofitrate increase/decrease increase/decrease increase/decrease
                                                        ofoperating   ofoperatingcost  ofgrossprofit
                                                          income                     rate
    By sector
    Electronics
    market and       905,285,927.82  615,786,444.11       31.98%       14.13%       12.89%        2.39%
    property leasing
    and management
    Real estate       883,601,001.00  594,819,985.74       32.68%       255.24%       354.32%       -31.00%
    development
    Trade           150,361,821.40  146,430,367.50        2.61%       -47.12%       -48.57%     -1919.71%
    Finance          49,137,832.39    5,219,910.64       89.38%       -44.50%       -58.01%        3.98%
    Hotel            42,058,808.01   36,837,858.28       12.41%       68.80%       69.72%        -3.67%
    By region
    Shenzhen       1,692,018,637.57 1,112,543,601.01       34.25%       86.31%       79.58%        7.75%
    Xi'an            57,222,951.89   45,835,666.33       19.90%        -6.33%        3.01%       -26.74%
    Suzhou          138,598,817.14  135,546,900.46        2.20%       -22.01%       -17.01%       -72.78%
    Changsha         23,401,682.40   15,723,374.20       32.81%        -4.86%        2.39%       -12.67%
    Nanjing          23,846,790.75   26,326,585.42       -10.40%        -3.82%        -9.47%       -39.85%
    Shunde           3,132,622.73    2,939,384.53        6.17%        3.72%        2.31%       26.48%
    Beijing            134,077.67    6,204,734.56     -4527.72%
    Huizhou          87,472,427.54   50,124,623.44       42.70%       -65.61%       -63.00%        -8.65%
    Wuxi            4,617,382.93    3,849,696.32       16.63%       -20.68%       -22.56%       13.91%
    
    
    If the statistical caliber of main business data is adjusted in the reporting period, the Company shall use the main
    
    business data of the previous year collected at the end of the reporting period after adjustment of statistical
    
    caliber.
    
    □ Applicable √ Not applicable
    
    (3) Is the Company's material sales revenue more than its service revenue?
    
    □ Yes √ No
    
    (4) Performance of executed major sales contracts as of the reporting period
    
    □ Applicable √ Not applicable
    
    (5) Formation of operating cost
    
    Industry classification
    
    Unit: Yuan
    
                                        2017                     2016             Year-on-year
        claIsnsdifuisctartyionItem        Amount     Percentageof     Amount     Percentageof  increase/decrease
                                           operatingcost                operatingcost       (%)
    Electronics     Electronics
    market and     marketand       615,786,444.11       44.01%  545,456,587.10       53.73%       12.89%
    property leasing  propertyleasing
    and management andmanagement
                                        2017                     2016             Year-on-year
       claIsnsdifuisctartyionItem        Amount     Percentageof     Amount     Percentageof  increase/decrease
                                           operatingcost                operatingcost       (%)
    Realestate     Realestate       594,819,985.74       42.51%  130,925,844.41       12.90%       354.32%
    development    development
    Trade         Trade           146,430,367.50       10.47%  284,740,411.64       28.05%       -48.57%
    Finance       Finance           5,219,910.64        0.37%   12,430,171.06        1.22%       -58.01%
    Hotel         Hotel            36,837,858.28        2.63%   21,705,084.88        2.14%       69.72%
                                        2017                     2016             Year-on-year
       Industry         Item
      classification                  Amount     Percentageof     Amount     Percentageof  increase/decrease
                                           operatingcost                operatingcost       (%)
    Electronics
    marketand     Leaseand        398,239,211.88       64.67%  366,902,709.81       67.27%        8.54%
    propertyleasing  propertycosts
    andmanagement
    Electronics     Total
    marketand     remunerationfor    93,931,218.48       15.25%   79,454,260.39       14.57%       18.22%
    propertyleasing  employees
    andmanagement
    Electronics
    marketand     Depreciationand    44,827,864.28        7.28%   24,733,292.44        4.53%       81.25%
    propertyleasing  amortization
    andmanagement
    Electronics     Marketand
    marketand     propertyservice     78,788,149.47       12.79%   74,366,324.46       13.63%        5.95%
    propertyleasing  costs
    andmanagement
                                        2017                     2016             Year-on-year
     Productcategory     Item                   Percentageof                Percentageof  increase/decrease
                                Amount      operatingcost     Amount     operatingcost       (%)
    Trade         Goodssalescost    136,585,828.21       93.28%  262,813,004.51       92.30%       -48.03%
    Trade         Leasecost                          0.00%    4,060,000.00        1.43%
    Trade         Manpowercost      2,043,243.43        1.40%     984,567.12        0.35%       107.53%
    Trade         Others            7,801,295.86        5.33%   16,882,840.01        5.93%       -53.79%
                                        2017                     2016             Year-on-year
       Industry         Item
      classification                  Amount     Percentageof     Amount     Percentageof  increase/decrease
                                           operatingcost                operatingcost       (%)
                                        2017                     2016             Year-on-year
       claIsnsdifuisctartyionItem        Amount     Percentageof     Amount     Percentageof  increase/decrease
                                           operatingcost                operatingcost       (%)
    Realestate     Realestatecost    594,819,985.74       100.00%  130,925,844.41       100.00%       354.32%
    development
                                        2017                     2016             Year-on-year
       Industry         Item
      classification                  Amount     Percentageof     Amount     Percentageof  increase/decrease
                                           operatingcost                operatingcost       (%)
    Finance       Leasecost          849,905.88       16.28%     835,447.71        6.72%        1.73%
    Finance       Financial  service    4,370,004.76       83.72%   11,594,723.35       93.28%       -62.31%
                 cost
                                        2017                     2016             Year-on-year
       claIsnsdifuisctartyion Item        Amount     Percentageof     Amount     Percentageof  increase/decrease
                                           operatingcost                operatingcost       (%)
    Hotel         Total remuneration   8,170,482.92       22.18%    5,110,635.15       23.55%       59.87%
                 foremployees
    Hotel         Deposition    and   6,133,311.79       16.65%    3,243,021.27       14.94%       89.12%
                 amortization
    Hotel         Leasecost        12,936,830.53       35.12%    8,258,888.25       38.05%       56.64%
    Hotel         Others            9,597,233.04       26.05%    5,092,540.21       23.46%       88.46%
    
    
    (6) Is the consolidation scope changed in the reporting period?
    
    √ Yes □ No
    
    14 new entities are incorporated in and two entities are removed from the scope of the consolidated financial
    
    statements in the current period, including::
    
    1. Subsidiaries, special purpose entities, and business entities that gain control by way of commissioning
    
    management or renting newly incorporated in the consolidation scope in the current period
    
                   Name                                    Reasonforchange
     Shenzhen-Shantou  Cooperation  Zone  SEG  Newlyestablished
     LongyanEnergyTechnologyCo.,Ltd.
     ShenzhenSEGLianzhongInternetTechnology    Newlyestablished
     Co.,Ltd.
     ShenzhenSEGZhongtongTechnologyCo.,Ltd.   Newlyestablished
     ShenzhenSegMakerCo.,Ltd.               Businesscombinationundercommoncontrol
     ShenzhenSEGRecreationEnterprise          Businesscombinationundercommoncontrol
     DevelopmentCo.,Ltd.
     ShenzhenSEGPropertyDevelopmentCo.,Ltd.   Businesscombinationundercommoncontrol
     ShenzhenSEGRealEstateInvestmentCo.,Ltd.   Businesscombinationundercommoncontrol
     HuizhouStarsRealEstateDevelopmentCo.,Ltd.  Businesscombinationundercommoncontrol
    
    
    Shenzhen SEG Property Management Co., Ltd. Business combination under common control
    
     ShenzhenSEGNewUrbanConstruction        Businesscombinationundercommoncontrol
     DevelopmentCo.,Ltd.
     ShenzhenSEGNewUrbanCommercial         Businesscombinationundercommoncontrol
     OperationCo.,Ltd.
     BeijingSEGPropertyDevelopmentCo.,Ltd.     Businesscombinationundercommoncontrol
     Xi'anSEGKanghongRealEstateCo.,Ltd.       Businesscombinationundercommoncontrol
     Shenzhen HonggeCulturalDevelopmentCo.,     Businesscombinationundercommoncontrol
     Ltd.
    
    
    2. Subsidiaries, special purpose entities, and business entities that lose control by way of commissioning
    
    management or leasing removed from the consolidation scope in the current period
    
                    Name                                     Reasonforchange
    Suzhou SEGElectronicsMarketManagementCo.,  Transferofthemanagementright
    Ltd.
    WuxiSEGElectronicsMarketCo.,Ltd.         Transferofalltheequity
    
    
    (7) Information about significant changes or adjustments of business, product or service in the reporting
    
    period
    
    □ Applicable √ Not applicable
    
    (8) Information on main customers and main suppliers
    
    Information about the Company's major customers
    
    Sales amountoftop5customers(Yuan)                                                  146,527,447.10
    Percentage ofthetotalsalesamountoftop5customersto                                            7.40%
    the annualsales
    Percentage ofthesalesamountofrelatedpartiesamong                                              0.00%
    top 5customerstotheannualsales
    
    
    Information about top 5 customers
    
      No.             CustomerName             Salesamount(Yuan)     Percentageoftheannualsalesamount
    1       ShenzhenNanfangYunheTechnologyCo.,             49,076,962.97                        2.12%
            Ltd.
    2       ShenzhenSuningYunshangSalesCo.,Ltd.             40,672,562.23                        2.11%
    3       TBruarfefaicuPolice Office of Public Security            28,753,641.51                        1.45%
    4       JiangHua(Housing)                          17,640,860.95                        0.89%
    5       LiYuanmei(Housing)                         16,402,241.90                        0.83%
    Total                  --                         152,546,269.56                        7.40%
    
    
    Other information on main customers
    
    □ Applicable √ Not applicable
    
    Information about major suppliers
    
    Total purchaseamountoftop5suppliers(Yuan)                                             209,388,422.70                                      146,527,447.10
    Percentage ofthetotalpurchaseamountoftop5suppliers                                           14.97%                                            7.22%
    to theannualpurchase
    Percentage ofthepurchaseamountofrelatedparties                                                0.00%                                            0.00%
    among top5customerstotheannualpurchaseamount
    
    
    Information about top 5 suppliers
    
       No.            Nameofsupplier           Purchaseamount(Yuan)     Percentageoftheannualpurchase
    1        LCihminitaedHuashi  Enterprises  Company            41,946,122.20                        2.07%
    2        ChinaTellingTelecomCo.,Ltd.                   41,784,580.54                        2.06%
             Shenzhen Futian District Security Guard
    3        Service  Company  (office  property            28,753,641.51                        1.42%
             managementfee)
    4        SCuoz.,hLoutd.Shuntong Network Technology            17,640,860.95                        0.87%
    5        DSuezvheoloupmenTtiCanox.,iLantdg.Real   Estate            16,402,241.90                        0.81%
    Total                   --                        146,527,447.10                        7.22%
    
    
    Other information on main suppliers
    
    □ Applicable √ Not applicable
    
    3. Expense
    
    Unit: Yuan
    
                                                Year-on-year
                          2017         2016      increase/decrease      Descriptionofsignificantchanges
                                                   (%)
    Sale expenses           43,173,370.45  41,555,812.57          3.89% pTehreiroed.isno significant change in the reporting
    Management expenses    144,029,063.26 142,779,706.02          0.88% Tpehreiroed.isno significant change in the reporting
                                                            (NantongSEG Times Plaza has been put into
    Financial cost           21,598,611.36  10,466,615.20        106.36% use. The capitalization of the borrowing costs
                                                            oftheprojectisceased..
    
    
    4. Investment in research and development
    
    □ Applicable √ Not applicable
    
    5. Cash Flow
    
    Unit: Yuan
    
             Item                   2017                  2016          Year-on-yearincrease/decrease
                                                                               (%)
    Subtotal ofcashinflowfrom             2,234,172,041.17          2,716,002,642.14                -17.74%
    operating activities
    Subtotal ofcashoutflowin              1,726,785,491.96          2,272,467,101.36                -24.01%
    operating activities
    Net cashflowfromoperating              507,386,549.21            443,535,540.78                 14.40%
    activities
    Subtotal ofcashinflowfrom             2,304,214,897.00            818,350,725.81                181.57%
    investing activities
    Subtotal ofcashoutflowin              2,491,257,058.69            897,641,866.86                177.53%
             Item                   2017                  2016          Year-on-yearincrease/decrease
                                                                               (%)
    investing activities
    Net cashflowfrominvesting             -187,042,161.69            -79,291,141.05
    activities
    Subtotal ofcashinflowfrom             1,083,037,998.48          1,731,367,812.30                -37.45%
    financing activities
    Subtotal ofcashoutflowin              1,583,423,874.22          1,599,151,616.44                 -0.98%
    financing activities
    Net cashflowarisingfrom               -500,385,875.74            132,216,195.86               -478.46%
    financing activities
    Net increaseincashandcash             -180,041,035.27            496,460,611.06               -136.26%
    equivalents
    
    
    1. Subtotal of cash inflow from operating activities decreases by 17.74% year on year in the reporting period,
    
    mainly because 1) SEG Industrial and Suzhou Intelligent cut back the trade business and the cash inflow
    
    decreases; 2) cash inflow generated by sales of SEG E-commerce last year is not included in the reporting
    
    period.
    
    2. Subtotal of cash outflow from operating activities decreases by 24.01% year on year in the reporting period,
    
    mainly because 1) SEG Industrial cut back the trade business and the purchasing expenses decrease; 2) cash
    
    outflow generated by sales of SEG E-commerce last year is not included in the reporting period.
    
    3. Subtotal of cash inflow from investing activities increases by 181.57% year on year in the reporting period,
    
    mainly due to increase in investment in bank financing.
    
    4. Subtotal of cash outflow from investing activities increases by 177.53% year on year in the reporting period,
    
    mainly due to increase in investment in bank financing.
    
    5. Subtotal of cash inflow from financing activities decreases by 37.45% year on year in the reporting period,
    
    mainly due to decrease of the scale of financing of SEG Real Estate Investment
    
    6. Subtotal of cash outflow from financing activities decreases by 478.46% year on year in the reporting period,
    
    mainly due to decrease of the scale of financing of SEG Real Estate Investment
    
    7. Net increase in cash and cash equivalents decrease by 136.26% year on year in the reporting period, mainly
    
    due to decrease in the cash received from borrowings and increase in the cash paid for investment.
    
    Description of main factors of significant year-on-year change
    
    √ Applicable □ Not applicable
    
    Reasons for the big difference between the net cash flow arising from operating activities and the annual net
    
    profit in the reporting period
    
    □ Applicable √ Not applicable
    
    III. Analysis of Non-major Business
    
    √ Applicable □ Not applicable
    
    Unit: Yuan
    
                    Amount    Percentageof              Reason                 Sustainableornot
                               totalprofit
                                        1. Incomefrom reduction of holding-shares
                                        of HuakongSEG;                  1.2.3.Unsustainable
    Investment income  71,999,915.73       16.81% 2.Salesofholding-sharesofWuxiSEG;
                                        3. Financingincome;                4.Sustainable
                                        4. Incomefrominvestmentinassociates.
    Changes infair
    value recognizedin        0.00       0.00%
    profit orloss
                                        SEG Industrial accrued the provision for
    Asset impairment   22,034,872.24       5.15% bad debts and provision for loan losses of Partiallysustainable
                                        SEG Credit.
    Non-operating     13,033,764.81       3.04% Government subsidies and income from
                                        counter-party default                Partiallysustainableincome
                                        Losses arise from the termination of the
                                        contract  between SEG Real Estate and
                                        Shenzhen   Jinhongyuan   Construction
    Non-operating      6,468,223.22       1.51% Material Co., Ltd.. The Company paid the
    expenses                              lSiEtigGa.tioAnftesrettrleemmeonvtaslpoafyabboleothbsyNofanSnEinGgUnsustainable
                                        CPARK, the decoration expense is written
                                        off beforeamortization.
    
    
    IV. Assets and Liabilities
    
    1. Significant Changes in Asset Formation
    
    Unit: Yuan
    
                        End of2017                Endof2016
                                                                 Increase/decre    Descriptionof
                    Amount    Percentageof     Amount     Percentageof     ase      significantchanges
                               totalassets                 totalassets
    Monetary funds   951,482,605.92       13.61% 1,131,523,641.19       16.34%      -2.74%
    Accounts         61,934,101.56       0.89%   58,949,389.88       0.85%      0.03%
    receivable
    Inventory      3,551,100,320.71       50.78% 3,378,533,067.95       48.80%      1.98%
    Investment       676,888,184.90       9.68%   708,470,470.81       10.23%      -0.55%
    properties
    Long-term equity  211,973,322.32       3.03%   203,657,322.71       2.94%      0.09%
    investment
    Fixed assets       62,404,988.93       0.89%   52,029,921.10       0.75%      0.14%
    Construction in    71,745,514.32       1.03%   37,092,227.51       0.54%      0.49%
    progress
    Short-term       534,792,000.00       7.65%   355,000,000.00       5.13%      2.52%
    borrowing
    Long-term       754,750,000.00       10.79% 1,030,000,000.00       14.88%      -4.08%
    borrowing
    
    
    2. Assets and liabilities measured based on fair value
    
    √ Applicable □ Not applicable
    
    Unit: Yuan
    
                                       Cumulative
                   Opening   Changeinfair changeinfair   Impairment    Amountof    Amountof    Closing
         Item        balance    valueofthe     value     accruedinthe purchaseinthe  salesinthe    balance
                            currentperiod recognizedin  currentperiod  currentperiod  currentperiod
                                       the equity
    Financial assets
    1.
    Available-for-sale    683,290.58             -317,372.09                                   365,918.49
    financial assets
    Subtotal of        683,290.58             -317,372.09                                   365,918.49
    financial assets
    Total            683,290.58             -317,372.09                                   365,918.49
    Financial              0.00                                                             0.00
    liabilities
    
    
    3. Restricted asset rights as of the end of the reporting period
    
    √Applicable □Not applicable
    
    (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:
    
             Owner             Housename       Netvalueattheendofthe            Remarks
                                                 reportingperiod
    Shenzhen SEGCo.,Ltd.      4FofSEGPlaza                   42,436,948.47   Mortgagedforbankborrowings
    Shenzhen SEGCo.,Ltd.      SomefloorsofWindowto            50,543,203.67   Mortgagedforbankborrowings
                          Modernization
    Shenzhen SEGCo.,Ltd.      31FofStarsPlaza                  8,984,817.19   Mortgagedforbankborrowings
    Shenzhen SEGCo.,Ltd.      Otherhouses                      6,432,454.33   Mortgagedforbankborrowings
    Shenzhen SEGRealEstate    SeehouseslistedinNote             89,019,246.92   Mortgagedforbankborrowings
    Investment Co.,Ltd.        VII(45)
    Huizhou StarsRealEstate     SomehousesofSEG                42,436,948.47   Mortgagedforbankborrowings
    Development Co.,Ltd.       HolidayPlaza
             Total                                       50,543,203.67
    
    
    (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. Investment
    
    1. General
    
    √ Applicable □ Not applicable
    
     Investmentinthereportingperiod(Yuan)  Investmentoverthesameperiodofthe         Increase/decrease(%)
                                         previousyear(Yuan)
                     5,527,301,497.49                   167,406,096.68                      3,201.73%
    
    
    2. Significant equity investment in the reporting period
    
    √ Applicable □ Not applicable
    
    Unit: Yuan
    
                                                                                    Progress as        Investment
                Main  Investment   Investment  Shareholding  Sourceof            Investment Product   ofthe   Projected  profitor   Lawsuit  Disclosure   Disclosure
     Investeename business   mode      amount    percentage   capital     Partner    horizon    type   balance   income  lossofthe  involved  date(ifany)  index(ifany)
                                                                                     sheetdate          current
                                                                                                      period
                                                           Shenzhen
                                                           Rongqi
                                                           Mechanical
                                                  Issuance of andElectrical
    Shenzhen SEG Real                                 shares  and Equipment
    Real Estate   estate   Acquisition 2,113,984,200. 79.02%    payment of Co.,Ltd.,    Long-term  Real    Transfer   0.00    188,968,96 No
    Investment    develop          00                   consideratio employeesof          estate   completed         3.11
    Co., Ltd.     ment                                ns       SEGReal                                                            http://www.cnin
                                                           Estate,and                                                           fo.com.cn
                                                           thelabor
                                                           unionofSEG                                                         Announcement
                                                           RealEstate                                                           SofEGCSoh.e,nzLhtedn.
               Electron Acquisition                                                 Electroni                                         on Transfer of
    Shenzhen SEG ics                                  Issuance of                   cs                                              Underlying
    Recreation    market           310,244,700.0           shares  and HarbinHaige          markets Transfer          24,428,418.         January 25, Assets for Share
    Enterprise    and             0          55.00%    payment of GroupCo.,   Long-term  and    completed 0.00    15       No      2017      Issuance   and
    Development  property                              consideratio Ltd                property                                          Cash  Payment
    Co., Ltd.     manage                              ns                          leasing                                           to     Acquire
               ment                                                           services                                          Assets    and
    Shenzhen SEG       Acquisition                      Issuance of                                                                   Raise Funds &
    Property     Property          135,235,900.0           shares  and                   Property Transfer          13,319,993.                  Connected
    Development  manage          0          100.00%    payment of None      Long-term  manage  completed 0.00    34       No               Transactions
    Co., Ltd.     ment                                consideratio                   ment
                                                  ns
               Electron Acquisition                      Issuance of                   Electroni
    Shenzhen    ics                                  shares  and2,597,682,400.         cs     Transfer          36,856,492.
    SegMaker Co., market,                     100.00%    payment of None      Long-term                0.00             No00markets, completed         31
    Ltd.        hotel,                                consideratio                   hotels,
               property                              ns                          property
               manage                                                          manage
               ment,                                                           ment,
               and                                                            and
               makers                                                          makers
                                                           Longyan                                                            http://www.cnin
                                                           Energy                                                             fo.com.cn
                                                           Technology                                                          Announcement
                                                           (Hangzhou)
                                                           Co.,Ltd.,                                                            SofESGheCnoz.h,eLntd.
                                                           Shenzhen            CdTe
    SEG Longyan                                             Raytai              filmPV                                          Eonsttahbelishmentof
    Energy      New   Newly-    82,500,000.00 50.00%    Self-owned Technology  Long-term  power   In       0.00    -8,094,335. No      November
    Technology   energy  established                      capital    Photovoltaic          station  preparation        55               12,2016   SEGLongyan
    Co., Ltd.                                                 Engineering           and                                             TEencehrngoylogyCo.,
                                                           Co.,Ltd.and          BIPV                                            Ltd.andLaunch
                                                           Shenzhen
                                                           Energy                                                             oFfiltmhePCVdTe
                                                           Nanjing                                                             IndustrialBase
                                                           HoldingCo.,                                                          Project
                                                           Ltd.
    Shenzhen SEG                                             TianjinAllied
    Lianzhong    Internet Newly-                        Self-owned eSports              Internet  In              -2,684,853.         November
    Internet      access  established  13,640,000.00 55.00%    capital    Internet     Long-term  access  preparation 0.00    00       No      16,2016
    Technology   service                                       Technology           services
    Co., Ltd.                                                 Co.,Ltd.
        http://www.cnin
                                                           Zhuhai                                                             fo.com.cn
                                                           Zhongtong                                                           Announcement
                                                           Lexing                                                             ofShenzhen
    Shenzhen SEG Wi-Fi                                        Network             Wi-Fi                                            SthEeGCo.,Ltd.on
    Zhongtong    project  Newly-    980,000.00   49.00%    Self-owned Technology  Long-term  project  In       0.00    -397,708.99 No      April    7,
    Technology   ofChina established                      capital    Co.,Ltd.and          ofChina preparation                        2017      Establishmentof
    Co., Ltd.     Railway                                       Shenzhen            Railway                                          SAhlleiendzheeSnpSoErtGs
                                                           Donglinde                                                           Co.,Ltd.and
                                                           Investment
                                                           Co.,Ltd.                                                            LEa-Supnocrhtsofthe
        StadiumProject
    Shenzhen SEG SEG                                         Shenzhen            SEG                                            http://www.cninNewly-Self-owned                                                          August  11,
    Yicheng     maker           1,020,000.00  51.00%             eMaxCity   Long-term        Opening   0.00    -200,019.14 No               fo.com.cnestablishedcapital                       maker                                  2017
    Science and   educatio                                       Technology           educatio                                          Announcement
    Technology   n   and                                      Co.,Ltd.             n   and                                         of    Shenzhen
    Co., Ltd.     technolo                                                         technolo                                          SEGCo.,Ltd.on
               gy                                                             gy                                              the
               experien                                                         experien                                          Establishmentof
               ce                                                             ce                                              Shenzhen  SEG
               museum                                                         museum                                          Yicheng Science
        and Technology
        Co.,  Ltd.  and
        Construction &
        Operation   of
        SEG    Maker
        Education  and
        Technology
        Experience
        Museum
                               5,255,287,200.
                                       Total--       --             00    --        --        --        --       --      --        0.00 252,1906.,9235 --       --         --
    
    
    3. Significant non-equity investment in progress in the reporting period
    
    √ Applicable □ Not applicable
    
    Unit: Yuan
    
        Reasonsfor
        failureto
                                                Amount of    Accumulated                               Accumulated  achievethe
                   Investment  Fixedasset  Industries    investment   amountinvested  Sourceof            Projected   incomeasof    plan    Disclosure  Disclosure
      Projectname      mode    investment? involvedin    duringthe    asoftheendof   capital    Progress    income   theendofthe  schedule  date(ifany)  index(if
                                      investment reportingperiod  thereporting                                reporting    objective              any)
                                                              period                                   period      and
        expected
        income
    Nantong SEG                                                         Self-owned                                        Nantong
    Times Plaza     Self-built     No       Realestate   152,295,046.49  749,559,894.08 capitaland      -         0     -17,365,331.27     -     SEGTimes  Self-built
                                                                      bankloan                                         Plaza
    Land use right of Self-constructed Yes      Newenergy   28,010,000.00   28,010,000.00 Self-owned          -         -           -
    SEG Longyan in                                                      capital
    Shenzhen-Shantou
    Cooperation Zone
    CdTe  Production                                                      Self-owned
    Line   of  SEG Self-constructed Yes      Newenergy   91,709,251.00   91,709,251.00 capital             -         -           -
    Longyan
    Total              --         --        --      272,014,297.49  869,279,145.08    --        --          0.00 -17,365,331.27    --        --        --
    
    
    4. Financial assets investment
    
    (1) Security investment
    
    √ Applicable □ Not applicable
    
    Unit: Yuan
    
                                                           Profitor
                                                           lossfrom            Amount
                    Shortform            Accounting             changes  Accumulative    of    Amountof  Profitorloss
     Stock type  Stock   ofthe      Initial    measurement Openingbook  infair  changesinfair purchase  salesinthe    inthe    Closingbook  Accountingitem   Sourceof
               code  security  investmentcost   mode       value     valuein  valuecounted   inthe    current    reporting     value                   capital
                                                             the    intoequity   current    period     period
                                                           current              period
                                                            period
    Domestic         Youhao              Measurement                                                                  Available-for-saleSelf-owned
    and overseas 600778 Group        90,405.00 offairvalue    683,290.58          -317,372.09     0.00       0.00      0.00   365,918.49 financialassets  capital
    shares
    Domestic         Huakong             Measurement                                                                  Long-term     Self-owned
    and overseas 000068 SEG     194,153,799.52 ofequity    174,552,073.99             -126.75        -9,125,553.30 5,871,204.49 171,297,598.43 investment     capital
    shares                              method
    Domestic         SEG                Measurement                                                                  Available-for-saleSelf-owned
    and overseas 832770 Navigations  8,275,321.43 ofcost      13,515,392.83                      0.00       0.00      0.00 13,515,392.83 financialassets  capital
    shares                              method
    Total                    202,519,525.95    --    188,750,757.40          -317,498.84     0.00 -9,125,553.30 5,871,204.49 185,178,909.75      -           -
    
    
    (2) Investment of derived products
    
    □ Applicable √ Not applicable
    
    No investment in derivatives is involved in the reporting period.
    
    5. Use of the collected capital
    
    □ Applicable √ Not applicable
    
    In the reporting period, there was no usage of raised capital.
    
    VI. Sales of Major Assets and Equity
    
    1. Sales of Major Assets
    
    √ Applicable □ Not applicable
    
                                       Netprofit
                                      contributed        Proportion
                                        bythe          ofthenet                                         Implemented
                                      assettothe          profit                   Association  Transfer  Transfer asscheduled
                              Transaction  listed   Impactof contributed  Pricing            withthe    ofall    ofall    ornot?If
                       Date of    price   company  thesale   bythe   principle  Connected counterparty property  creditor's not,indicate Disclosure
    Counterparty Soldassets   sale     (RMB   fromthe   onthe   assetsto   forthe  transaction? (applicable  rightsof rightsand reasonsand   date      Disclosureindex
                               10,000)  beginning Company thelisted   saleof          toconnected  assets    debts    measures
                                        ofthe   (Note3)  company   assets           transactions) involved? involved? takenbythe
                                       periodto         tototalnet                                          Company
                                      the dateof          profit
                                      sale (RMB
                                       10,000)
    Zhejiang    51% of the                                                                                                Announcement  on  the
    Xinyuan    equity   of                                                                                                ProgressofTransferofthe
    Market     Wuxi  SEG October      354.2    72.73 88.18       0.40% Fairvalue No      Not      Yes     Yes     Transferred  November Equity  of  Wuxi  SEG
    Management Electronics 30,2017                                                 applicable                          7,2017   Electronics Market Co.,
    Co., Ltd.   Market Co.,                                                                                                Ltd.    disclosed    on
             Ltd.    http://www.cninfo.com.cn
    Secondary  10,000,000                                                                                                 Announcement  on  the
    market     sharesof   December   5,521.06     32.6 5,497.85    25.04%Fairvalue No      Not      Yes     Yes     Transferred  January5, Progress of Reduction of
    investors   Huakong   31,2017                                                 applicable                          2018    Holding-shares      of
             SEG    Shenzhen Huakong SEG
        Co.,  Ltd. disclosed  on
        http://www.cninfo.com.cn
    
    
    2. Sales of Major Equity
    
    √ Applicable □ Not applicable
    
                                        Net profit
                                        contributed          Proportion
                                        bytheasset          ofthenet                                    Implemented
                                        tothelisted  Impactof    profit                    Association          asscheduled
                               Transaction  company  thesaleon contributed   Pricing            withthe  Transferof  ornot?If
    Counterparty Soldassets Dateofsale price(RMB  fromthe     the      bythe   principlefor Connected counterparty   allthe   not,indicate Disclosure    Disclosureindex
                                10,000)   beginning  Company  assetstothe thesaleof transaction? (applicable   equity   reasonsand    date
                                          ofthe    (Note3)    listed     assets           toconnected involved?   measures
                                         periodto           companyto                  transactions)         takenbythe
                                        the dateof           totalnet                                      Company
                                        sale(RMB            profit
                                         10,000)
    Zhejiang    51% of the                                                                                                Announcement  on  the
    Xinyuan    equity   of                                                                                                ProgressofTransferofthe
    Market     Wuxi  SEG October 30,    354.20     72.73 88.18         0.40% Fairvalue  No       None     Yes      Transferred  November  Equity  of  Wuxi  SEG
    Management Electronics 2017                                                                                    7,2017    Electronics Market Co.,
    Co., Ltd.   Market Co.,                                                                                                Ltd.    disclosed    on
             Ltd.    http://www.cninfo.com.cn
        Announcement  on  the
    Secondary  10,000,000                                                                                                 Progress of Reduction of
    market     sharesof   December    5,521.06      32.65,497.85      25.04% Fairvalue  No       None     Yes      Transferred  January5,  Holding-shares      of
    investors   Huakong   31,2017                                                                                  2018     Shenzhen Huakong SEG
             SEG    Co., Ltd.  disclosed on
        http://www.cninfo.com.cn
    
    
    VII. Analysis of Controlling and Holding Companies
    
    √ Applicable □ Not applicable
    
    Unit: Yuan
    
     Company   Companytype      Mainbusiness        Registeredcapital         Totalassets           Netassets        Operating   Operatingprofit    Netprofit
       name                                                                                            income
     Company   Companytype      Mainbusiness        Registeredcapital         Totalassets           Netassets        Operating   Operatingprofit    Netprofit
       name                                                                                            income
     SEG      Subsidiary     Microcredit
     Credit                                          150,000,000.00         416,546,602.66        190,973,138.86  49,137,832.39   1,731,652.48      755,531.44
     SEG                  Propertyoperationand
     Baohua    Subsidiary     managementandhotel            61,617,600.00         164,183,305.34        116,255,173.57  96,869,873.70  40,250,767.43    30,152,624.56
                          business
                          Channelretailterminalof
     SEG      Subsidiary     electronicproductsand                                                                        -11,422,331.0
     Industrial              propertyoperationand            25,500,000.00          86,982,253.64        36,145,581.24  82,198,407.50                -8,500,999.650
                          management
     Nanning   Subsidiary     Operationandmanagement
     SEG                  ofelectronicsmarket             8,000,000.00            64,219.87          -883,662.28           -           -             -
     Longgang  Subsidiary     Operationandmanagement
     SEG                  ofelectronicsmarket             3,000,000.00          25,648,253.66         6,214,456.90  13,256,096.92   2,014,495.42     1,548,656.61
     Shunde    Subsidiary     Operationandmanagement
     SEG                  ofelectronicsmarket             6,000,000.00          6,043,296.95         3,451,771.93   3,132,622.73    169,533.17      200,442.34
     Changsha   Subsidiary     Operationandmanagement
     SEG                  ofelectronicsmarket             35,000,000.00          96,936,531.45         75,116,508.50  23,401,682.40   7,182,897.53     5,354,076.32
     Xi'anSEG  Subsidiary     Oofpeelreacttiroonnaicnsdmmaarnkaegtement         3,000,000.00          39,257,518.45        16,829,133.65  35,732,862.15   9,655,346.25     8,208,153.78
     Xi'an                 Operationandmanagement
     Hairong    Subsidiary     ofelectronicsmarket             3,000,000.00          26,441,880.62         6,055,411.99  21,490,089.74   2,905,148.41     2,544,567.25
     SEG
     Nanjing    Subsidiary     Operationandmanagement
     SEG                  ofelectronicsmarket             20,000,000.00          22,378,697.30         1,691,287.42  23,846,790.75  -2,772,942.84    -2,745,645.37
     Wujiang   Subsidiary     Operationandmanagement
     SEG                  ofelectronicsmarket             3,000,000.00          14,989,334.58         3,986,746.31  16,791,648.67    718,985.39      538,287.33
     WuxiSEG  Subsidiary     Operationandmanagement
     Company   Companytype      Mainbusiness        Registeredcapital         Totalassets           Netassets        Operating   Operatingprofit    Netprofit
       name                                                                                            income
                          ofelectronicsmarket                      -                  -                 -   4,617,382.93    791,454.88      727,345.49
     Suzhou    Subsidiary     Operationandmanagement
     SEG                  ofelectronicsmarket                      -                  -                 -  23,307,308.98  -3,998,924.05    -3,991,359.40
     Suzhou                Operationandmanagement
     SEG      Subsidiary     ofelectronicsmarket             8,000,000.00          23,471,668.99         3,403,166.56  30,336,445.59   5,398,270.56     5,452,461.09
     Digital
     SEG      Subsidiary     Trade
     Intelligent                                        10,000,000.00          8,001,776.17         4,307,026.47  68,163,413.90  -1,643,178.68    -2,247,926.00
     Nantong   Subsidiary     Real estate development
     SEG                  andmanagement               30,000,000.00         890,241,708.04        12,634,668.73   4,761,928.47  -8,967,360.38    -8,968,942.11
     Nantong
     SEG
     Commerci  Subsidiary     Propertymanagement                                                                        -12,576,044.9-20,966,086.75        -17,088,193.56  12,689,564.59               -12,586,376.86
     al    5
     Operation
     Yicheng
     Science                SEG maker education and
     and       Subsidiary     technology    experience         1,020,000.00            837,422.08           819,980.86           -    -200,019.14     -200,019.14
     Technolog              museum
     y
     SEG
     Investmen  Subsidiary     FundInvestment                1,500,000.00          1,500,838.76         1,498,838.76           -     -1,161.24       -1,161.24
     t
     Longyan
     Energy    Subsidiary     New  energy  technology
     Technolog              development                 165,000,000.00         160,053,861.94        156,905,664.45      5,602.56  -8,094,254.94    -8,094,335.55
     y
     SEG      Subsidiary     Internet   and   related
     Lianzhong              services                     24,800,000.00          22,721,321.93         22,115,147.00    109,154.98  -2,684,853.00    -2,684,853.00
     SEG      Subsidiary     Software and information
     Zhongton              technologyservices              2,000,000.00          1,602,291.01         1,602,291.01           -    -397,708.99     -397,708.99
      Company  Companytype      Mainbusiness        Registeredcapital         Totalassets           Netassets        Operating   Operatingprofit    Netprofit
       name                                                                                             income
     g
     SEG                  Electronics market leasing
     Recreation  Subsidiary     management    services;         5,000,000.00          96,160,776.03        35,940,457.53  53,247,077.93  32,564,858.07    24,428,418.15
                          propertyleasing
     SEG
     Property    Subsidiary     Propertymanagement
     Developm                                          5,000,000.00         144,504,017.25        74,293,428.82  59,405,595.75  17,919,391.79    13,319,993.34
     ent
                          Electronics market leasing
     SegMaker   Subsidiary     management    services;                                                         134,667,240.3
                          property  leasing;  hotel        10,000,000.00         355,621,583.83        255,029,470.70           7  49,295,628.51    36,856,492.31
                          management
     SEG Real              Property leasing; property
     Estate      Subsidiary     management;  real  estate       102,500,000.00       3,719,643,993.47        980,502,203.50  1,222,751,774  256,639,097.4   188,968,963.11
                          development                                                                          .10           2
                          Manufacturing      and
     Huakong    Shareholding   operation of color picture                                                         412,929,685.1
     SEG      company      taunbdeg(lCasPsTa)p,pCaPraTtumsaterials,      1,006,671,464.00       2,803,698,323.72      1,092,604,871.02           8  42,111,282.37    32,644,084.17
     Shanghai   Shareholding   Operationandmanagement
     SEG      company      ofelectronicsmarket             5,000,000.00          15,400,297.98         9,820,675.31   7,209,054.03    658,646.70      527,804.99
     CEEC     Shareholding   Electronicsexhibition                                                                        -15,051,102.9
               company                                30,000,000.00          14,013,554.94         6,766,534.86   8,764,271.43               -15,051,507.200
    
    
    Information on the acquisition and disposal of subsidiaries in the reporting period
    
    √ Applicable □ Not applicable
    
                 Companyname              Modeofacquisitionanddisposalofsubsidiariesinthereporting        Impactontheoverallbusinessoperationandperformance
                                                             period
    Shenzhen-Shantou CooperationZoneSEGLongyan
    Energy TechnologyCo.,Ltd.                                 Newly-established                 Itisinpreparationandnotopenforbusinessyet.
    Shenzhen SEGLianzhongInternetTechnologyCo.,                   Newly-established                 Inthereportingperiod,theoperatingincomeisRMB109,200andthelossis
    Ltd.                                                                               RMB2,684,900.
    Shenzhen SEGZhongtongTechnologyCo.,Ltd.                     Newly-established                 Itisinpreparationandnotopenforbusinessyet.
    Shenzhen SegMakerCo.,Ltd.                 Businesscombinationundercommoncontrol               Inthereportingperiod,theoperatingincomeisRMB134,667,200andthe
                                                                                      profitisRMB36,856,500.
    Shenzhen SEGRecreationEnterpriseDevelopment   Businesscombinationundercommoncontrol               Inthereportingperiod,theoperatingincomeisRMB53,247,100andthe
    Co., Ltd.                                                                            profitisRMB24,428,400.
    Shenzhen SEGPropertyDevelopmentCo.,Ltd.     Businesscombinationundercommoncontrol               Inthereportingperiod,theoperatingincomeisRMB59,405,600andthe
                                                                                      profitisRMB13,320,000.
    Shenzhen SEGRealEstateInvestmentCo.,Ltd.     Businesscombinationundercommoncontrol               Inthereportingperiod,theoperatingincomeisRMB106,006,700andthe
                                                                                      profitisRMB38,367,800.
    Huizhou StarsRealEstateDevelopmentCo.,Ltd.    Businesscombinationundercommoncontrol               Inthereportingperiod,theoperatingincomeisRMB87,018,000andthe
                                                                                      profitisRMB8,353,600.
    Shenzhen SEGPropertyManagementCo.,Ltd.     Businesscombinationundercommoncontrol               Inthereportingperiod,theoperatingincomeisRMB186,813,800andthe
                                                                                      profitisRMB14,710,000.
    Shenzhen SEGNewUrbanConstruction          Businesscombinationundercommoncontrol               Inthereportingperiod,theoperatingincomeisRMB850,037,400andthe
    Development Co.,Ltd.                                                                  profitisRMB146,652,700.
    Shenzhen SEGNewUrbanCommercialOperation   Businesscombinationundercommoncontrol               Inthereportingperiod,theoperatingincomeisRMB0andthelossisRMB
    Co., Ltd.                                                                            10,580,700.
    Beijing SEGPropertyDevelopmentCo.,Ltd.       Businesscombinationundercommoncontrol               Inthereportingperiod,theoperatingincomeisRMB92,500andthelossis
                                                                                      RMB2,764,700.
    Xi'an SEGKanghongRealEstateCo.,Ltd.        Businesscombinationundercommoncontrol               Inthereportingperiod,theoperatingincomeisRMB0andthelossisRMB
                                                                                      3,857,400.
    Shenzhen HonggeCulturalDevelopmentCo.,Ltd.   Businesscombinationundercommoncontrol               Inthereportingperiod,theoperatingincomeisRMB0andtheprofitis
                                                                                      RMB0.
    Suzhou SEG Electronics Market Management Co., Transferofmanagementrights                         Inthereportingperiod,theoperatingincomeisRMB23,307,300andthe
    Ltd.                                                                               lossisRMB3,991,400.
    Wuxi SEGElectronicsMarketCo.,Ltd.          Equitytransfer                                   Inthereportingperiod,theoperatingincomeisRMB4,617,400andthe
                                                                                      profitisRMB727,300.
    
    
    Information on controlling and holding companies
    
    1. In the reporting period, the operating income of SEG Industrial decreases by 55.27% year on year, mainly because it discontinued related trade in 2017, resulting in
    
    significant decrease in the trade business.
    
    2. In the reporting period, the operating income of SEG Credit decreases by 37.29% year on year, mainly because the credit business is cut down, resulting in declining
    
    income.
    
    3. In the reporting period, the operating income of Nanjing SEG decreases by 39.69% year on year, mainly because the property rent concession leads to decrease in rent
    
    expenses and losses.
    
    4. In the reporting period, the total profit of Wujiang SEG decreases by 66.69% year on year, mainly because it signed the property lease contract in May 2017, which leads
    
    to increase in rent expenses and decrease in the total profit.
    
    5. In the reporting period, the total profit of Suzhou SEG Digital increases by RMB 4,902,300 year on year. Decrease in the rent cost leads to increase in the profit.
    
    6. In the reporting period, the operating income of Nantong SEG Commercial Operation increases by RMB 11,811,400 and the total profit decreases by RMB 8,085,000
    
    year on year, mainly because Nantong SEG Times Plaza started business in October 2016 and the income from rents and management expenses increased in 2017. As the
    
    fixed expenses and operating costs of the plaza is far higher than the income from rents and management expenses, the loss of this year is RMB 12,586,400 and increases
    
    year on year.
    
    7. In the reporting period, the operating income of SEG Intelligent decreases by 26.83% and the total profit decreases by 34.71%, mainly because the Company adjusted
    
    business types and discontinued digital direct sales, resulting in decrease in the operating income.
    
    8. In the reporting period, the Company sold all its equity of Wuxi SEG. In the reporting period, the operating income of the Company attributable to the listed company
    
    decreases by 20.68% year on year. (For details, see the Announcement on the Progress of Transfer of the Equity of Wuxi SEG Electronics Market Co., Ltd. (No. 2017-071)
    
    released on the information disclosure media designated by the Company on November 7, 2017.
    
    VIII. Information on Structured Entity Controlled by the Company
    
    □ Applicable √ Not applicable
    
    IX. Development outlook of the Company
    
    (I) Development planning of the Company
    
    In 2018, according to the 13th five-year plan, based on its development reality and existing resource capacities,
    
    the Company will rely on the listed company platform, make full use of the capital market, integrate internal and
    
    external resources, carry out capital operations in the form of "external industrial M&A" and "investment fund",
    
    and transform itself into a platform for strategic emerging industries. On the basis of the electronics markets and
    
    commercial real estate (industrial parks), the Company will also combine multiple business models, develop the
    
    overall resource advantages, accelerate transformation and upgrading of the original electronics market, expand
    
    from operation of a single business platform to the content production and operation, and create a business
    
    model combining multiple business types, including the maker ecosystem, culture & education, intelligent
    
    technology, sports & entertainment, virtual experience and e-sports.
    
    (II) Fulfillment of investment plan of the Company
    
    2017 annual project investment plan of the Company focuses on business transformation and upgrading. The
    
    expected total investment amount is RMB 581,300,000. The fulfillment is shown in the table below:
    
    Unit: RMB 10,000
    
     No.          Projectname           Annual   Cumulative              Projectprogress
                                     budget    completed
                                    investment  investment
      1   NantongSEGTimesPlaza             14,500     6,556The constructioncostofthelastyearispaid.
      2   Newinvestmentproject               43,630     23,926
      (1)                                             Construction land has been obtained for the project.
                                                     Three shareholders have contributed capital (accounting
                                                     for 84%). The project construction planning has been
                                                     approved. Relevantequipmentpurchasingcontractshave
         SEG LongyanPVproject             27,500     21,250been   drafted   and   submitted   for   review.
                                                     Shenzhen-Shantou CooperationZoneSEGLongyanwas
                                                     incorporated at the end of March 2017 which serves to
                                                     establish plants. The land leveling and compaction and
                                                     equipment purchasingareunderway.
      (2)                                             1.NantongSEGe-sportsInternetcaférunssteadily.
         Allied  eSports and small e-sports                  2. Suzhou SEG e-sports Internet caféwas put into trial
         stadium project                     3,650     2,578operation onJune20,2017andrunssteadilynow.
                                                     3. Shenzhene-sportsstadiumwasputintotrialoperation
                                                     in September,2017.
      (3) RailwayWi-Fiproject                  980       98
      (4)                                             Shenzhen Hongtu SEG Investment Management Co.,
                                                     Ltd. has completed the business registration formalities
         Hongtu SEGfundproject             10,000        -for shareholder changes, and ishandling the registration
                                                     formalities with Asset Management Association of
                                                     China.
      (5) Newhotelinvestmentproject                         The Mellow Orange Hotel in Dongmen was officially
                                        1,500         -open on May1, 2017. The Companyis looking fornew
                                                     hotel projects.
    Total                                58,130     30,482
    
    
    Reason for the difference between the 2017 project investment plan and the fulfillment: 1. Hongtu SEG
    
    Intelligent Industrial Fund is under approval and has not been funded yet; 2. the Company is looking for new
    
    hotel projects; 3. for prudence, the Company does not invest in new electronics market projects.
    
    (III) Summary of progress of development strategies and operation plans disclosed earlier in the reporting
    
    period
    
    According to the development strategies and operation plans disclosed by the Company in the annual report of
    
    2016, in the reporting period, the main work done by the Company is as follows:
    
    1. Completion of major assets restructuring
    
    In order to reduce horizontal competition at the maximum, enhance the profitability and core competitiveness of
    
    listed company, fully integrate the business of electronics markets by relying on the platform of the listed
    
    company, eventually fulfill the integration, transformation and upgrading of current business of the listed
    
    company, facilitate the Company to develop toward diversified business, extend the industrial chain, expand the
    
    profit margins of the listed company, and enhance the influence of the listed brand, the Company carried out
    
    major assets restructuring in 2016.
    
    For restructuring, the Company intended to purchase 100% of the equity of SegMaker, 55% of the equity of SEG
    
    Recreation, 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 cash to acquire assets, in which the percentage of payment
    
    by the equity is 86.90% and that of cash payment 13.10%. At the same time, in order to improve the efficiency of
    
    restructuring, the Company intended to raise the supporting fund for the restructuring from no more than 10
    
    specific investors by means of non-public offering, with the total raised fund no more than 38.78% of the
    
    transaction price of the assets to be acquired. According to the appraised value, the total amount of assets did not
    
    exceed RMB 2 billion.
    
    On November 15, 2016, China Securities Regulatory Commission Acquisition and Restructuring Committee
    
    conditionally approved Shenzhen SEG issuing shares and paying cash to acquire assets and raising supporting
    
    fund as well as related party transaction issues on the 85th Acquisition and Restructuring Committee Working
    
    Meeting of 2016.
    
    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 China Securities Regulatory Commission (CSRC), which approved the Company to issue 450,857,239 shares
    
    to SEG Group to acquire relevant assets and raise supporting funds for the said share issuance and asset
    
    acquisition by non-public offering of no more than 201,207,243 new shares. The said approval document issued
    
    by China Securities Regulatory Commission will be valid within 12 months after the issuance.
    
    The transfer formalities of the subject assets were completed on January 19, 2017, and the 450,857,239 new
    
    shares in A-share by non-public offering were listed for trading on March 6, 2017.
    
    On February 15, 2017, the Company received the Acceptance Confirmation of the Application for Share
    
    Registration issued by Shenzhen Branch of China Securities Depository and Clearing Company Limited,
    
    specifying that the new shares were to be listed on March 6, 2017.
    
    Since March 2017, the Company has started non-public offering as planned. The Company held investor
    
    research meeting to find strategic investors for non-public offering. A total of 82 institutional and individual
    
    investor subscription intention letters were collected. The Company also organized roadshows to vigorously
    
    promote non-public offering.
    
    On January 5, 2018, the Company released the Announcement on Expiration of the Approval on Issuing Shares,
    
    Acquiring Assets by Cash and Raising Supporting Funds. Due to changes in the capital market, since the
    
    approval document was received, the stock price of the Company was different from the bottom issue price for
    
    raising supporting funds most of the time. The Company fails to raise supporting funds within the approved
    
    validity period. According to the approval document of CSRC, such approval automatically expires.
    
    2. Transformation and upgrading of electronics markets and implementation of new businesses are actively
    
    carried out by the Company.
    
    (1) Consumer Electronic Exhibition/Exchange Center (CEEC) Project
    
    On May 10, 2016, Shenzhen Futian Investment Development Co., Ltd., Shum Yip Land Company Limited and
    
    Shenzhen SEG Co., Ltd. jointly invested and established Shenzhen International Consumer Electronic
    
    Exhibition/Exchange Center Co., Ltd. On March 28, 2018, CEEC started business in Shum Yip UpperHills,
    
    Futian District, Shenzhen. CEEC was jointly built by the Ministry of Industry and Information Technology and
    
    Shenzhen Municipality according to the executed framework agreement. CEEC is designed to create a
    
    world-level consumer electronic exhibition/exchange center that integrates new high-end consumers' electronic
    
    product release, exhibition, user experience, investment and discussion, cooperation and transaction, based in
    
    Shenzhen, serving the whole country, and facing the world. More than 300 international and domestic consumer
    
    electronic brands have settled here.
    
    (2) Railway Wi-Fi project
    
    The Company, Zhuhai Zhongtong Lexing Network Technology Co., Ltd. and Shenzhen Donglinde Investment
    
    Co., Ltd. jointly founded Shenzhen SEG Zhongtong Technology Co., Ltd. (SEG Zhongtong) on April 7, 2017
    
    and participated in the Wi-Fi project of China Railway Corporation. For this purpose, the Company formed the
    
    operation team of SEG Zhongtong to advance work. On July 5, 2017, the CMII ID for the railway Wi-Fi device
    
    of SEG Zhongtong was issued by the Ministry of Industry and Information Technology and Shenzhen
    
    Municipality. On December 4, 2017, the railway Wi-Fi device passed the test of China Railway Test &
    
    Certification Center. Currently, the Company is discussing the railway Wi-Fi project to determine the future
    
    plan.
    
    (3) SEG Taobao e-commerce project
    
    This project is designed for strategic cooperation business between the Company and Taobao. It is intended to
    
    build online and offline business platforms and create innovative value-added services of O2O electronics
    
    markets. After exploration and efforts for nearly one year, due to the impact of the market environment, item
    
    restriction and other objective factors, the project cannot yield considerable income for the Company in short
    
    time. Based on the actual condition of the project, the Company discontinued the SEG Taobao e-commerce
    
    project in October 2017.
    
    (4) Maker business
    
    After restructuring, the maker business of the Company mainly includes the business of SEG CPARK and the
    
    business of SegMaker.
    
    In 2017, to further develop the teenager maker culture and education project and develop a complete SEG maker
    
    ecosystem, the Company and Shenzhen eMaxCity Technology Co., Ltd. jointly contributed RMB 10 million to
    
    found Shenzhen SEG Yicheng Science and Technology Co., Ltd. (subject to business registration) which is
    
    intended to build and operate SEG maker education and technology experience museum and Chinese teenager
    
    STEAM science education standard base (see the Announcement of Shenzhen SEG Co., Ltd. on the Establishment
    
    of Shenzhen SEG Yicheng Science and Technology Co., Ltd. and Construction & Operation of SEG Maker
    
    Education and Technology Experience Museum disclosed by the Company on August 11, 2017). The original
    
    project personnel of SEG CPARK are included into the business team of this company.
    
    Skyland Future Technology Museum, SEG maker education and technology experience museum in CEEC, was
    
    officially open to the public on March 28, 2018. With the augmented MR/VR technology, Skyland Future
    
    Technology Museum creates immersive interactive experience scenes, presents curriculum knowledge that
    
    cannot be directly experienced or practiced in true-to-life 3D scenes, and provides teenagers with comprehensive
    
    and systematic STEAM education.
    
    The maker business of SEG CPARK centers on the maker ecosystem and integrates SEG Business Center, SEG
    
    Business Apartment and SegMaker+. Established in June 2015, SegMaker+ relies on the maker business of
    
    Huaqiangbei and business sectors of SEG Group, integrates industry, brand, and capital advantages of SEG
    
    Group, coordinates the industry and market resources in the electronic information industry, provides product
    
    release, display, roadshow, promotion, transaction, financing, and maker communication, training, and other
    
    services for the maker community, supports the industrialization of maker products, and promotes the integration
    
    of the industrial chain and the innovation chain.
    
    In 2017, SegMaker+ opened two new branch stores, and SEG Seed Incubator was open. The sharing office
    
    business forms replicable mature model. In 2017, SegMaker+ held the Innovation and Entrepreneurship Contest,
    
    Innovation and Entrepreneurship Summit Forum, and roadshow meetings in 2017. SegMaker+ won four titles:
    
    "Shenzhen Innovation and Entrepreneurship Demonstration Base", "Shenzhen Overseas Student Pioneer Park",
    
    "Guangdong Maker Space experimental Unit", and "Municipal Incubator Pioneer Park". SegMaker+ had more
    
    advantages in performing the innovation and entrepreneurship service function of the government. In the
    
    reporting period, SegMaker+ was also awarded "1st Batch of Shenzhen Innovation and Entrepreneurship Bases"
    
    and "Shenzhen Overseas Student Pioneer Park" from the Development and Reform Commission of Shenzhen,
    
    Human Resources and Social Security Bureau of Shenzhen, and received the special support fund from the
    
    People's Government of Shenzhen. SegMaker+ hosted "Canada High-end Project Roadshow Meeting", "Taiwan
    
    Youth Entrepreneurship Seminar", "China-Italy Innovation and Entrepreneurship Investment Cooperation
    
    Meeting", "2017 Huaqiangbei·SEG Maker Star Feast", "Huawei LiteOS Hackathon (Shenzhen vs Taiwan)
    
    Contest" and many other maker activities, where SegMaker+ communicated with maker teams from home and
    
    abroad, Mainland China, Hong Kong, Macao, and Taiwan. On the one hand, these activities achieved good social
    
    effects, enhanced publicity of SegMaker+, and brought more maker project resources, laying a foundation for the
    
    sustainable development of SegMaker+.
    
    (5) Hongtu SEG Intelligent Industrial Investment Fund project
    
    As of the end of the reporting period, Shenzhen Hongtu SEG Investment Management Co., Ltd. and Hongtu
    
    SEG Intelligent Industrial Investment Fund (Limited Partnership) has completed business registration and is
    
    handling registration formalities with Asset Management Association of China. Project reserves and research are
    
    also in progress.
    
    (6) New energy business
    
    The new energy market has high potentials, is environment-friendly and ecological, and is an industry
    
    encouraged and supported by the government. Among all enterprises that are engaged in the CdTe solar PV
    
    industry, Advanced Solar Power (Hangzhou) Co., Ltd., as an enterprise that possesses the CdTe film cell module
    
    technology with completely independent intellectual property, is a technically leading enterprise in the industry
    
    both at home and abroad. SEG Longyan is committed R&D and manufacturing of CdTe solar cell modules, and
    
    invests in and contracts for distributed PV power stations and BIPV projects.
    
    Production and construction: In April 2017, Shenzhen-Shantou SEG Longyan won the bid for the land use right
    
    of the state-owned construction land (plot No. E2016-0025) located at Ebu Town, Shenzhen-Shantou
    
    Cooperation Zone and intended to use it for the CdTe film PV industrial base project (Shenzhen-Shantou Park
    
    project). Shenzhen-Shantou SEG Longyan carried out land leveling and construction. To advance the
    
    construction of the new energy project and promote the launch of the solar cell module production line, SEG
    
    Longyan and Longyan Energy Technology agreed to rent the existing No. 2 Plant of Longyan Energy to build
    
    and run the first production line. SEG Longyan invested and established a wholly-owned subsidiary in Hangzhou,
    
    namely Hangzhou SEG Longyan, which is responsible for the investment and operation of the first production
    
    line. For details, see the Announcement on Shenzhen SEG Longyan Energy Technology Co., Ltd.'s Investment
    
    and Establishment of Hangzhou SEG Longyan Energy Technology Co., Ltd. disclosed by the Company in
    
    designated information disclosure media on January 19, 2018. Hangzhou SEG Longyan is to start trial
    
    production in 2018 Q4.
    
    Market development: In 2017, (1) SEG Longyan completed the construction and grid connection of the 300 KW
    
    distributed CdTe PV power station; (2) SEG Longyan signed a general contract for the 80 KW PV power station
    
    project; (3) SEG Longyan won the subject of CSOT 2.1 MW distributed power station.
    
    (IV) Main business development problems of the Company
    
    1. Horizontal competition in the electronics market is increasingly intense. Due to weak macro-economic
    
    recovery and continuous impact of e-commerce, the competition for customer and manufacturer resources is
    
    fierce. As the industry grows slump, prices wars become an important way of scrambling for resources and
    
    maintaining the occupancy rate. In the future, decrease in the rent income for the purpose of maintaining the
    
    occupancy rate will add to operation difficulties of the electronics market. Some electronics market business falls
    
    into trouble due to problems of partners.
    
    2. Nantong SEG Times Plaza project faces certain operation risks. Due to increase in the supply of Nantong
    
    commercial real estate in a short time and serious homogeneous competition, based on analysis of the present
    
    and future macro-environment of Nantong commercial real estate, challenges remains in the operation of
    
    Nantong SEG Times Plaza project.
    
    3. New energy business competition is intensifying. On the one hand, the conversion efficiency of
    
    mono-crystalline and polycrystalline products is significantly improved while the conversion efficiency of film
    
    PV modules is hard to improve. On the other hand, as PV modules have plenty of capacity in Chin and the
    
    market competition is fierce, those with outdated capacity are to be eliminated.
    
    (V) Key tasks of the Company in 2018
    
    1. To be a platform for strategic emerging industries, the Company will accelerate the effective integration of
    
    business, personnel, organization, capital and information resources and develop business models and
    
    management models that match the new platform. The Company will also make full use of the capital market
    
    and develop the strategic emerging industries through investment and M&A.
    
    2. The Company will strengthen institutional innovation, advance the mixed-ownership reform, actively respond
    
    to the call of the central government for "strengthening, optimizing, and expanding" state-owned enterprises, and
    
    establish and improve incentive mechanisms that suit the development of the Company with pilot programs in
    
    investees.
    
    3. The Company will accelerate the construction of plants and production lines in Shenzhen-Shantou Park and
    
    the establishment and operation of production lines in Hangzhou SEG Longyan, and strive for government
    
    support.
    
    4. Based on the existing electronics markets, the Company will utilize the service advantages and customer
    
    resources of electronics markets, further develop the maker business, culture & education, intelligent technology,
    
    sports & entertainment, virtual experience and e-sports, further create innovative value-added electronics market
    
    services combining multiple business types, actively try innovative projects, vigorously promote the
    
    transformation and upgrading of the original traditional business, and enhance its profitability and core
    
    competitiveness.
    
    5. The Company will further promote the development and operation of commercial real estate (industrial parks),
    
    coordinate resources, and accelerate the construction, investment promotion, sales and operation of commercial
    
    real estate (industrial parks) on the premise of product quality and work safety. The Company will adhere to the
    
    diversified development strategy featuring "real estate + culture + sports + finance + technology", integrate
    
    cultural real estate and sports real estate, enrich the content experience business types, expand its development
    
    scale, and promote its market position.
    
    6. The Company will improve the management quality, strengthen standard operation, and duly perform the
    
    information disclosure obligation of the listed company. The Company will enhance communication with
    
    investors and potential investors and enhance investors' understanding and recognition of the Company. The
    
    Company will manage investor relations at multiple channels and levels, effectively safeguard the legitimate
    
    rights and interests of investors, particularly small and medium investors. The Company will further develop and
    
    implement the total risk management and internal control management systems, strengthen the responsibilities of
    
    the risk subject, raise awareness of decision-making, further improve the risk management and control
    
    mechanism, and conduct risk assessment throughout the cycle of major investment projects.
    
    (VI) Risk warning
    
    The future development planning and investment plan mentioned above do not reflect the profit estimation of
    
    2018 by the Company. The results depend on multiple factors such as changes in market condition, and
    
    uncertainties exist. Investors shall pay special attention to it.
    
    X. Statement of receipt of surveys, communication and visits
    
    1. Registration form for investigations, communication and Interviews in the reporting period
    
    √ Applicable □ Not applicable
    
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       March15,2017       Phonecall        Individual    CshoamrephaonldyehrassreglievaesnedabreyptlhyeaScceocurdriitnigestoDtehpeorseitgoirsytearnodf
                                                  ClearingCorporation.
                                                  Inquireaboutthemainbusiness,transformation,andprivate
      February 8,2017       Phonecall        Individual    placementoftheCompany.TheCompanyhasgivenareply
                                                  accordingtotheactualprogressdisclosed.
                                                  Inquireaboutthemainbusiness,transformation,andprivate
      February22,2017     Fieldresearch       Institution    placementoftheCompany.Fordetails,seethedisclosureon
                                                  irm.cninfo.com.cn.
                                                  InquireaboutthenumberofshareholdersasofFebruary28.
      February28,2017      Phonecall        Individual    TheCompanyhasgivenareplyaccordingtotheregisterof
                                                  shareholdersreleasedbytheSecuritiesDepositoryand
                                                  ClearingCorporation.
                                                  InquireaboutthenumberofshareholdersasofApril15.The
       April20,2017       Phonecall        Individual    Companyhasgivenareplyaccordingtotheregisterof
                                                  shareholdersreleasedbytheSecuritiesDepositoryand
                                                  ClearingCorporation.
                                                  InquireaboutthenumberofshareholdersasofApril28.The
        May5,2017        Phonecall        Individual    Companyhasgivenareplyaccordingtotheregisterof
                                                  shareholdersreleasedbytheSecuritiesDepositoryand
                                                  ClearingCorporation.
                                                  Inquireaboutvotingresultsofthegeneralmeetingofthe
        May8,2017        Phonecall        Individual    Company.TheCompanyhasgivenareplyaccordingtothe
                                                  disclosednoticeofthegeneralmeeting.
                                                  InquireaboutthefinancialdataofQ2.TheCompanyasked
       June 30,2017        Phonecall        Individual    investorstopayattentionto2017semi-annualreportofthe
                                                  Companytobedisclosed.
                                                  InquireaboutthenumberofshareholdersasofJune30.The
        July5,2017        Phonecall        Individual    Companyhasgivenareplyaccordingtotheregisterof
                                                  shareholdersreleasedbytheSecuritiesDepositoryand
                                                  ClearingCorporation.
                                                  Inquireabout the operating result of the Company in the first
       July 10,2017        Phonecall        Individual    half of 2017. The Company advises investors to refer to the
                                                  semi-annualreport2017.
      August 15,2017       Phonecall        Individual    Inquire about the progress of raising supporting funds. The
                                                  Companyhasgivenareplyaccordingtotheactualprogress.
                                                  InquireaboutthenumberofshareholdersasofAugust15.The
      August 17,2017       Phonecall        Individual    Companyhasgivenareplyaccordingtotheregisterof
                                                  shareholdersreleasedbytheSecuritiesDepositoryand
                                                  ClearingCorporation.
                                                  Inquireaboutwhenanewdirectorwilltakepositionafter
                                                  resignationoftheChairmanoftheBoardofDirectors.The
      September1,2017      Phonecall        Individual    Companyhasrepliedthatthechairmanwillbere-electedsoon
                                                  accordingtotheArticlesofAssociationandrelevant
                                                  provisions.
     September 10,2017      Phonecall        Individual    Inquire  about  the  main  business,  transformation  and
                                                  supportingfund raising of the Company. The Company has
          Time            Means           Type               Basicinformationoninvestigation
                                                  givenareplyaccordingtotheactualprogressdisclosed.
                                                  InquireaboutthenumberofshareholdersasofSeptember15.
     September 18,2017      Phonecall        Individual    TheCompanyhasgivenareplyaccordingtotheregisterof
                                                  shareholdersreleasedbytheSecuritiesDepositoryand
                                                  ClearingCorporation.
                                                  Inquireaboutthedirectors,supervisorsandseniorexecutives'
      October 11,2017      Phonecall        Individual    increasingholdingsoftheCompany.TheCompanyhasgiven
                                                  areplyaccordingtotheactualprogressdisclosed.
                                                  InquireaboutthefinancialdataofQ3.TheCompanyasked
      October 17,2017      Phonecall        Individual    investorstopayattentionto2017Q3reportoftheCompanyto
                                                  bedisclosed.
                                                  InquireaboutthenumberofshareholdersasofOctober15.
      October 20,2017      Phonecall        Individual    TheCompanyhasgivenareplyaccordingtotheregisterof
                                                  shareholdersreleasedbytheSecuritiesDepositoryand
                                                  ClearingCorporation.
                                                  InquireaboutthenumberofshareholdersasofOctober31.
      November4,2017      Phonecall        Individual    TheCompanyhasgivenareplyaccordingtotheregisterof
                                                  shareholdersreleasedbytheSecuritiesDepositoryand
                                                  ClearingCorporation.
     November 13,2017      Phonecall        Individual    Inquireaboutstocksuspension.TheCompanyhasgivena
                                                  replyaccordingtotheannouncementdisclosed.
     November 15,2017      Phonecall        Individual    Inquireaboutstockresumption.TheCompanyhasgivena
                                                  replyaccordingtotheactualprogressdisclosed.
     November 21,2017    Fieldresearch       Individual    Fordetails,seetheinformationdisclosedbytheCompanyon
                                                  irm.cninfo.com.cn.
                                                  Inquireabouttheprogressofcontrollingshareholders'
     November 27,2017      Phonecall        Individual    increasingholdingsoftheCompany.TheCompanyhasgiven
                                                  areplyaccordingtotheactualprogressdisclosed.
                                                  InquireaboutthereasonfortheresignationoftheSecretaryof
     December 12,2017      Phonecall        Individual    theBoard.TheCompanyhasgivenareplyaccordingtothe
                                                  announcementdisclosed.
                                                  InquireaboutthenumberofshareholdersasofNovember30.
     December 05,2017      Phonecall        Individual    TheCompanyhasgivenareplyaccordingtotheregisterof
                                                  shareholdersreleasedbytheSecuritiesDepositoryand
                                                  ClearingCorporation.
                                                  InquireabouttheprogressoftheCompany'sreducingholdings
     December 14,2017      Phonecall        Individual    ofHuakongSEG.TheCompanyadvisedinvestorstopay
                                                  attentiontotheprogressreportdisclosedinthedesignated
                                                  informationdisclosuremedia.
                                                  InquireabouttheoperatingresultofQ4.TheCompanyasked
     December 18,2017      Phonecall        Individual    investorstopayattentionto2017annualreportofthe
                                                  Companytobedisclosed.
                                                  InquireaboutthereasonfortheresignationoftheSecretaryof
     December 21,2017      Phonecall        Individual    theBoard.TheCompanyhasgivenareplyaccordingtothe
                                                  announcementdisclosed.
    Frequency ofreception                                                                      35
    Number ofinstitutionsreceived                                                                32
    Number ofindividualsreceived                                                                33
    Number ofotherobjectsreceived                                                                0
    Is thereanyimportantinformationdisclosed?                                                       No
    
    
    Chapter 5 Important Matters
    
    I. Plan of common share profit distribution and plan of transfer of capital reserves into share
    
    capital
    
    Information on the establishment, implementation or adjustment of the ordinary share profit distribution policy,
    
    especially the cash dividend policy:
    
    □ Applicable √ Not applicable
    
    According to the Articles of Association and Shareholder Return Plan for the Next Three Years (2015-2017), the
    
    Annual Profit Distribution Plan of 2016 was formulated by the Company in 2017 and passed by the Board of
    
    Directors and general meeting. The Company accrued 10% of the profit available for distribution (RMB
    
    11,880,703.37) as the statutory surplus reserve, and distributed cash dividend of RMB 0.30 (tax included) for
    
    every 10 shares to all shareholders based on the total share capital of 1,235,656,249 shares after the Company
    
    issued shares to SEG Group through public offering. The total amount of profit distribution of the Company was
    
    RMB 37,069,687.47, in which the cash dividend accounted for 100%. The Company did not transfer reserves
    
    into share capital this year. The annual profit distribution plan of 2016 was completed on August 21, 2017.
    
                                 Special explanationofcashdividendpolicy
    Does itcomplywiththeArticleofAssociationoftheCompany  Yes
    or theresolutionsofthemeetingofshareholders?
    Are thedividendstandardandratioexplicitandclear?        Yes
    Are thedecision-makingprocedureandmechanismperfect?    Yes
    Do independentdirectorsfulfilltheirobligationsandplaytheir  Yes
    role?
    Is thereanychannelformediumandsmallshareholderstofully
    express themselves?Aretheirlegitimaterightsandinterestsfully Yes
    protected?
    Are theconditionsandprocedureforadjustmentorchangeof   Yes
    cash dividendpolicycompliantandtransparent?
    
    
    Information on the ordinary share profit distribution plan (proposal) and the plan of transfer of capital reserves
    
    into share capital (proposal) in the recent three years (including the reporting period)
    
    Pursuant to the Accounting Standard for Business Enterprise 2014, the investment in subsidiaries by the
    
    Company was calculated based on the basis of cost method, the profit of parent company remained bigger
    
    differences with consolidated profit. In accordance with relevant provisions of the Company Law, the profit
    
    distribution was implemented with the parent company as the main body. Therefore, the profit distribution of the
    
    Company in 2017, 2016, and 2015 was implemented depending on the distributable profit of the parent
    
    company.
    
    1. According to audit by Da Hua Certified Public Accountants Co., Ltd., the net profit of the parent company
    
    attributable to the listed company in 2017 is RMB 169,074,330.91, the undistributable profit at the beginning of
    
    the year is RMB 146,342,426.58, and the profit available for distribution among shareholders is RMB
    
    315,416,757.49. According to the Articles of Association and Shareholder Return Plan for the Next Three Years
    
    (2015-2017) of Shenzhen SEG Co., Ltd., the profit distribution proposal of 2017 is as follows: The Company has
    
    accrued 10% of the net profit of the current year (RMB 11,880,703.37) as the statutory surplus reserve, and plans
    
    to distribute cash dividend of RMB 0.55 (tax included) for every 10 shares to all shareholders based on
    
    1,235,656,249 share capital. The Company plans not to transfer capital reserves into share capital in 2017.
    
    2. Profit distribution proposal and the proposal for transfer of capital reserves into share capital in 2016:
    
    According to audit by Da Hua Certified Public Accountants Co., Ltd., the net profit of the parent company
    
    attributable to the listed company in 2016 amounted to RMB 118,807,033.67, the undistributed profit at the
    
    beginning of the year is RMB 63,085,510.75, and the current profit available for distribution among shareholders
    
    was RMB 181,892,544.42. According to the Articles of Association and Shareholder Return Plan for the Next
    
    Three Years (2015-2017), the annual profit distribution plan of 2016 is as follows: The Company will accrue
    
    10% of the profit available for distribution (RMB 11,880,703.37) as the statutory surplus reserve, and distribute
    
    cash dividend of RMB 0.30 (tax included) for every 10 shares to all shareholders based on the total share capital
    
    of 1,235,656,249 shares after the Company issued shares to SEG Group through public offering. The total
    
    amount of profit distribution of the Company is RMB 37,069,687.47, in which the cash dividend accounts for
    
    100%. The Company plans not to transfer reserves into share capital this year.
    
    3. Profit distribution proposal and the proposal for transfer of capital reserves into share capital in 2015:
    
    According to audit by Da Hua Certified Public Accountants Co., Ltd., the net profit of the parent company
    
    attributable to the listed company in 2015 amounted to RMB 92,305,001.57, the undistributed profit at the
    
    beginning of the year is RMB -22,209,989.62, and the current profit available for distribution among
    
    shareholders was RMB 70,095,011.95. The annual profit distribution plan of 2015 was as follows: The statutory
    
    surplus reserve was RMB 7,009,501.20, accrued at 10% of the profit available for distribution. Based on
    
    784,799,010 share capital of the Company as of December 31, 2015, the Company distributed cash dividend of
    
    RMB 0.30 (tax included) for every 10 shares to all shareholders. The total amount of profit distribution of the
    
    Company in 2015 was RMB 23,543,970.30, in which the cash dividend accounted for 100%. The Company did
    
    not transfer capital reserves into share capital.
    
    Table of distribution of ordinary share cash dividends by the Company in the recent three years (including the
    
    reporting period)
    
    Unit: Yuan
    
                                     Netprofit     Ratioofnetprofit
                                    attributableto     attributableto
                                     ordinary         ordinary      Amountofcash   Percentageofcash
      Year forbonus    Amountofcash    shareholdersof    shareholdersof   dividendsotherwise dividendsotherwise
       distribution      bonus(incl.tax)   listedcompanyin   listedcompanyin     distributed        distributed
                                    consolidated      consolidated
                                  statementofbonus    statement(%)
                                       year
    2017                67,961,093.70    219,553,261.10         30.95%              0          0.00%
    2016                37,069,687.47    107,560,213.41         15.07%              0          0.00%
    2015                23,543,970.30     74,242,090.49         13.35%              0          0.00%
    
    
    The net profit of the Company was positive and the profit of the parent company to be distributed to ordinary
    
    shareholders was also positive, but the proposal for distribution of cash dividends was not put forward.
    
    □ Applicable √ Not applicable
    
    II. Plan of profit distribution and plan of transfer of capital reserves into share capital in the
    
    reporting period
    
    √ Applicable □ Not applicable
    
     Numberofbonussharesforevery10shares                                                       0
     Dividendforevery10shares(yuan)(tax                                                        0.55
     included)
     Reservestransferredintosharecapitalforevery                                                     0
     10shares
     Equitybaseofthedistributionplan                                                     1,235,656,249
     Totalcashdividend(yuan)(taxincluded)                                                 67,961,093.70
     Profitavailablefordistribution(yuan)                                                  315,416,757.49
     Percentageofcashdividendintotalprofit                                                      100%
     distribution
                                      Informationoncashdividend
     Others
             Details oftheprofitdistributionproposalortheproposalfortransferofcapitalreservesintosharecapital
         1. According to audit by Da Hua Certified Public Accountants Co., Ltd., the net profit of the parent
     company attributable to the listed company in 2017 is RMB 169,074,330.91, the undistributable profit at the
     beginning of the year is RMB 146,342,426.58, and the profit available for distribution among shareholders is
     RMB 315,416,757.49. According to the Articles of Association and Shareholder Return Plan for the Next
     ThreeYears(2015-2017)ofShenzhenSEGCo.,Ltd.,theprofitdistributionproposalof2017isasfollows:The
     Companyhas accrued 10% of the net profit of the current year (RMB 11,880,703.37) as the statutory surplus
     reserve, and plans to distribute cash dividend of RMB 0.55 (tax included) for every 10 shares to all
     shareholders based on 1,235,656,249 share capital. The Company plans not to transfer capital reserves into
     sharecapitalin2017.
    
    
    III. Fulfillment of Commitments
    
    1. Commitments fulfilled in the reporting period or yet to be fulfilled as of the end of the reporting period
    
    by the Company, shareholders, actual controllers, purchaser, directors, supervisors, senior executives or
    
    other associates
    
    √ Applicable □ Not applicable
    
       Commitments      Subject        Type                                Content                           Commitment Commitment  Performance
        date      term
    Commitment forshare Notapplicable
    reform
                                           "1. The Company undertakes that as of October 31, 2015, controlling shareholders of
                                           Shenzhen SEG or other related persons who occupy funds of Shenzhen SEG or the
                                           subject company due to non-operating events will repay them before the shareholders'
                                           meeting thatisintendedtoreviewtherestructuringplan;
                                           2. After restructuring, the financial independence of the listed companies shall be
                                           guaranteed andnoillegaloccupationoffundsoflistedcompanieswilloccur;
                                           3. The Company will abide by and urge listed companies to abide by relevant laws and
                                           administrative regulations such as the Code on Corporate Governance of Listed
                                           Companies, theNoticeonRegulatingtheFundsTransfersbetweenListedCompaniesand
                                           Related Parties and the External Guarantee of Listed Companies, and the Listing Rules
                               Commitmenton  oEfxcShhaenngzehebnusSintoecsksrEuxlecsh,aanngdei,mrpegrouvlaetiaownasr,erneegsusloatfocroymdpolciaunmcee;nts,and Shenzhen Stock
                    ShenzhenSEG horizontal      4. The Company will exercise the rights of shareholders according to law,and will not
                    GroupCo.,    competition,    abuse the rights of shareholders to damage the interests of listed companies and other August3,   Long-term  Inprogress
                    Ltd.        related        shareholders;                                                   2016
                               transaction,and
                               capitaloccupation 5.TheCompanywilloptimizethegovernancestructureoflistedcompanies,improvethe
    Commitments inthe                          internal control system, regulate the operation of the three organs, give full play to
    Acquisition Report                           functionsandsupervisoryroleofindependentdirectorsandtheBoardofSupervisors,and
    and theReportof                            restrictdecision-makingand operation bycontrolling shareholdersand actualcontrollers
    Changes onEquity                           oftheCompany;
                                           6. TheCompanywillfulfilltheobligationofinformationdisclosurestrictlyinaccordance
                                           with relevant provisions, actively cooperate with listed companies on information
                                           disclosure, timely inform major events incurred or to be incurred, and ensure the
                                           authenticity, accuracy,integrity,timelinessandfairnessofinformationdisclosure.Incase
                                           of breach of the foregoing commitments, the Companywill bear all lossesthus incurred
                                           to Shenzhen SEG,the subject company,other companies, enterprises,or other economic
                                           organizations controlledbytheCompany."
                                           "1. When the Company acts as the controlling shareholder of Shenzhen SEG, the
                                           Company, other companies, enterprises, or other economic organizations controlled by
                               Commitmenton  the Company,will minimize and regulate connected transactionswith Shenzhen SEG or
                    ShenzhenSEG horizontal      the subject company, other companies, enterprises, or other economic organizations
                    GroupCo.,    competition,    controlledbytheCompany.                                         August3,   Long-term  Inprogress
                    Ltd.        related        2. When the restructuring is completed, the Company,other companies, enterprises, or 2016
                               transaction,and  other economic organizations controlled by the Company will handle connected
                               capitaloccupation transactionswithShenzhenSEGorthesubjectcompanythatareunavoidableorincurred
                                           for reasonable cause at fair and reasonable market price, perform the decision-making
                                           procedure for connected transactions according to relevant laws, regulations, and
                                           normative documents, fulfill the obligation of information disclosure and handle the
                                           approval procedures according to the law, do not use the dominant position of the
                                           controlling shareholder to damage the legal rights and interests of Shenzhen SEG and
                                           other shareholders.
                                           3.  The Company, other companies, enterprises, or other economic organizations
                                           controlled bythe Companywill not use the rightsof shareholders of the listed company
                                           or the actual control abilityto manipulate or instruct the listed companyor its directors,
                                           supervisors and senior executives to have the listed companyunfairly provide or accept
                                           funds, goods,servicesorotherassets,orengageinanyactsdetrimentaltotheinterestsof
                                           listed companies. In case of breach of the following commitments, the Company will
                                           bear all losses thus incurred to Shenzhen SEG,the subject company, other companies,
                                           enterprises, orothereconomicorganizationscontrolledbytheCompany."
                                           "1. In the restructuring,relevantassets, such as somecommercial electronics marketsof
                                           SEG Group that constitute horizontal competition, have not been injected into the listed
                                           company. SEGGroupwilltrustsuchassetstoShenzhenSEGoritssubsidiariesafterthe
                                           major asset restructuring. Within5 yearsafter the majorasset restructuring, SEG Group
                                           will take all necessary measures to solve flaws of such assets, and incorporate the
                                           preceding specialized electronics markets that constitute horizontal competition into
                                           Shenzhen SEGortransferthemtothethirdpartyinafeasiblewaysuchassalesbasedon
                                           operating needsofShenzhenSEGandthecompletenessoftheownershipofsuchassets.
                                           If SEG Group fails to complete the foregoing matters as scheduled, before injecting
                                           relevant assets to Shenzhen SEG,SEG Group shall lease them to Shenzhen SEG for
                                           direct operation and enjoy the income from such property.The annual rent of Shenzhen
                                           SEG isthedepreciatedvalueofsuchproperty.Profitandlossincurredbyleasingofsuch
                                           property assetsshallbesharedbyShenzhenSEG.Thepartiesshallseparatelyenterintoa
                               Commitmenton  leasingagreement.
                    ShenzhenSEG horizontal      2. Except assets owned and business operated before the validity date of commitment,
                    GroupCo.,    competition,    whenactingasacontrollingshareholderoractualcontrollerofShenzhenSEG,inorderto August03,  Long-term  Inprogress
                    Ltd.        related        guarantee sustainable development of Shenzhen SEG, the Company will exercise 2016
                               transaction,and  supervision and restriction on operating activities of its own and affiliated enterprises
                               capitaloccupation under its control, will not establish new or acquire any assets or business same as or
                                           similar to its main business within the operation area of Shenzhen SEG,and will not be
                                           engaged in any activities that may damage the interests of Shenzhen SEG and other
                                           companies andenterprisescontrolledbyShenzhenSEG,orothereconomicorganizations.
                                           If inthefuturethereisanybusinessopportunitysameasorsimilartoothermainbusiness
                                           within  Shenzhen SEG operation area, such opportunity will preferentially be
                                           recommended to Shenzhen SEG and other companies and enterprises controlled by
                                           Shenzhen SEG,orothereconomicorganizations.However,any of the followingcasesis
                                           an exception: (1) Due to national laws, regulations and policies and other reasons, any
                                           commercial properties and real estate development projects appropriated or allocated
                                           through orientedprotocolsbythegovernmenttoSEGGroupandanyenterprisesinvested
                                           by it; or (2) when the general conditions of tender, transfer or assignment of specific
                                           commercial properties and real estate development projects have specific requirements
                                           on the bidder or assignee,Shenzhen SEG is not qualified ybut SEG Group is qualified.
                                           Commercial property and real estate development projects that are same as the main
                                           business of Shenzhen SEG or result in horizontal competition subject to the above
                                           exclusions maybeinvestedandbuiltbySEGGroupatfirst.IfShenzhenSEGthinksthat
                                           such assets are eligible to be injected into Shenzhen SEG,upon receipt of the written
                                           acquisition notice from Shenzhen SEG, SEG Group will negotiate on acquisition and
                                           transfer suchprojectstoShenzhenSEG.Incaseofbreachoftheforegoingcommitments,
                                           the Company will bear all losses thus incurred to Shenzhen SEG,the subject company,
                                           other  companies, enterprises, or other economic organizations controlled by the
                                           Company."
                                           "1. The Company will guarantee the independence of personnel of Shenzhen SEG and
                                           subject company: (1) After completion of the restructuring, the labor, personnel and
                                           compensation management of Shenzhen SEG are independent from the Company and
                                           related parties, such as other companies, enterprises, or other economic organizations
                                           controlled by the Company.(2) After completion of the restructuring, senior executives
                                           of ShenzhenSEGandthesubjectcompanyholdfull-timepositionatShenzhenSEGand
                                           the subjectcompanyandreceivecompensation,andwillnotassumeanydutiesotherthan
                                           director and supervisor in the Company and related parties, such as other companies,
                                           enterprises, or other economic organizations controlled by the Company. (3) After
                                           completion of the restructuring, the Company will not interfere with the shareholders'
                                           meeting and the Board of Directors' exercise of power in appointment/dismissal of
                                           personnel.
                                           2. The Company will guarantee the independence of organs of Shenzhen SEG and the
                                           subject company: (1) After completion of the restructuring, Shenzhen SEG and the
                                           subject companywilldevelopasoundcorporategovernancestructureandanindependent
                                           and complete organizational structure. (2) After completion of the restructuring, the
                    ShenzhenSEG Other         shareholders'meeting,theBoardofDirectors,andtheBoardofSupervisorsofShenzhen August3,
                    GroupCo.,    commitment    SEG and the subject company will exercise duties and powers according to laws, 2016      Long-term  Inprogress
                    Ltd.                     regulationsandarticlesofassociationofShenzhenSEGandthesubjectcompany.
                                           3. The Company will guarantee the independence and completeness of Shenzhen SEG
                                           and the subject company: (1) After completion of the restructuring, Shenzhen SEG and
                                           the subjectcompanywillhaveindependentandcompleteassetsrelatedtoproductionand
                                           management. (2) Aftercompletion ofthe restructuring,thesiteforbusinessoperationof
                                           Shenzhen SEG and the subject company are independent of the Company and related
                                           parties, such asother companies,enterprises, orothereconomicorganizationscontrolled
                                           by the Company. (3) After completion of the restructuring, except normal operational
                                           contacts, ShenzhenSEGandthesubjectcompanyarenotinvolvedinthefollowingcase:
                                           funds or assets are occupied by the Company and related parties, such as other
                                           companies, enterprises,orothereconomicorganizationscontrolledbytheCompany.
                                           4. The Company will guarantee the business independence of Shenzhen SEG and the
                                           subject company: (1) After completion of the restructuring, Shenzhen SEG and the
                                           subject companyownrelevantqualificationforindependentbusinessoperation,andhave
                                           the independent and sustainable market-oriented operation capability. (2) Except assets
                                           owned and business operated before the validity date of commitment, when acting as a
                                           controlling shareholderofShenzhen SEG,in ordertoguaranteesustainabledevelopment
                                           of Shenzhen SEG,the Company will exercise supervision and restriction on operating
                                           activities ofitsownandtheaffiliatedenterprisesunderitscontrol,willnotestablishnew
                                           or acquire any assets or businesses same as or similar to its main business within the
                                           operation area of Shenzhen SEG,and will also not be engaged in any activities which
                                           may damage the interests of Shenzhen SEG and other companies, enterprises, or other
                                           economic organizations controlled by Shenzhen SEG. If in the future there is any
                                           business opportunity same as or similar to other main business within Shenzhen SEG
                                           operation area, such opportunity will be preferentially recommended to Shenzhen SEG
                                           and other companies, enterprises, or other economic organizations controlled by
                                           Shenzhen SEG.(1) Due tonationallaws,regulations andpoliciesand otherreasons, any
                                           commercial properties and real estate development projects appropriated or allocated
                                           through orientedprotocolsbythegovernmenttoSEGGroupandanyenterprisesinvested
                                           by it; or (2) When the general conditions of tender, transfer or assignment of specific
                                           commercial properties and real estate development projects have specific requirements
                                           on the bidder or assignee, Shenzhen SEG is not qualified but SEG Group is qualified.
                                           Commercial property and real estate development projects that are same as the main
                                           business of Shenzhen SEG or result in horizontal competition subject to the above
                                           exclusions maybeinvestedandbuiltbySEGGroupatfirst.IfShenzhenSEGthinksthat
                                           such assets are eligible to be injected into Shenzhen SEG,upon receipt of the written
                                           acquisition notice from Shenzhen SEG, SEG Group will negotiate on acquisition and
                                           transfer such projects to Shenzhen SEG.(3) After completion of the restructuring, the
                                           Company and related parties, such as other companies, enterprises, or other economic
                                           organizations controlledbythe Company willreduce relatedtransactions withShenzhen
                                           SEG and the subject company and other companies, enterprises, or other economic
                                           organizations controlled by them; for any related transactions that are indeed necessary
                                           and unavoidable, the Company will handle them at fair price based on the market
                                           principle, and fulfill relevant approval procedures and the information disclosure
                                           obligation  according to provisions of relevant laws, regulations and normative
                                           documents.
                                           5. The Company will guarantee the financial independence of Shenzhen SEG and the
                                           subject company: (1) After completion of the restructuring, Shenzhen SEG and the
                                           subject company will establish an independent financial department, independent
                                           financial accountingsystem,andstandardandindependentfinancialaccountingrules.(2)
                                           After completion of the restructuring, Shenzhen SEG and the subject company will
                                           separately open an account in banks, and do not share accounts with the Company and
                                           related parties, such as other companies, enterprises, or other economic organizations
                                           controlled bytheCompany.(3)Aftercompletionoftherestructuring,financialpersonnel
                                           of ShenzhenSEGandthesubjectcompanywillnotholdapart-time jobintheCompany
                                           or related parties, such as other companies, enterprises, or other economic organizations
                                           controlled bytheCompany.(4)Aftercompletionoftherestructuring,ShenzhenSEGand
                                           the subjectcompanywillindependentlymakefinancialdecisions,and theCompanywill
                                           not interfere with fund usage of Shenzhen SEG and the subject company. (5) After
                                           completion of the restructuring, Shenzhen SEG and the subject company will pay taxes
                                           independently according to laws. In case of breach of the foregoing commitments, the
                                           Company willbearalllossesthusincurredtoShenzhenSEG,andthesubjectcompany."
                                           "(I) Contractsubjectsanddateofsigning
                                           Shenzhen SEG and SEG Group signed Performance Commitment and Compensation
                                           Agreement onAugust3,2016.
                                           (II) Performancecommitmentperiod
                                           Three accountingperiodsfollowingthecompletionofthetransaction(includingtheyear
                                           of completionandthefollowingconsecutivetwoaccountingperiods).Ifthetransactionis
                                           completed before December 31, 2016 (included), the performance commitment period
                                           includes 2016, 2017, and 2018. If the transaction is completed between December 31,
                                           2016 and December 31, 2017 (included), the performance commitment period includes
                                           2017, 2018, and2019. Afterthe completion of the transaction,Shenzhen SEG shall hire
                                           an accounting firm with the qualification of securities that is recognized by SEG Group
                                           within 4 months after the end of each accounting period during the performance
                                           commitment period torespectivelyissue aspecialaudit reportand/oran impairmenttest
                                           report (hereinafter referred to as the "special audit report") with respect to the promised
                                           net  profit/promised cash flow income/promised development profit (hereinafter          Three
                                           collectively referred to as "promised performance") related to assets within the          accounting
                                           transaction compensation scope agreed in the agreement, and recognize the promised          yearsfrom
                                           performance or impairment of assets within the transaction compensation scope in each
                                           year duringtheperformancecommitmentperiod.                                    cthoemypelaertioofn
                                           (III) Performancecommitmentandperformancecompensation                           of
    Commitments madeat ShenzhenSEG              Underlying assets injected into Shenzhen SEG in this transaction are subject to multiple          restructuring
    the timeof         GroupCo.,    Performance    appraisal methods: 100% of the equity of SegMaker, 55% of the equity of SEGAugust3,   (including  Inprogress
    restructuring ofmajor Ltd.        Commitment    Recreation,and79.02%oftheequityofSEGPropertyInvestmentarepricedonthebasis 2016      theyearof
    assets                                   ofappraisalconclusionwiththeasset-basedmethod,inwhichpropertyassetsaresubject          completion
                                           to the income method and market method and real estate development in the long-term          andthe
                                           equity investmentissubjecttothehypotheticaldevelopmentmethod;100%oftheequity          subsequent
                                           of SEGPropertyDevelopmentand100%ofthe equityofSEGPropertyManagement(a          two
                                           wholly-owned subsidiaryofSEGPropertyInvestment)aresubjecttotheincomemethod.          accounting
                                           Therefore, all parties recognize and agree that the performance guarantee of relevant          years)
                                           underlying assets of the transaction and the compensation methods shall be carried out
                                           according tothefollowingstipulations:
                                           1.   Performance guarantee of underlying assets appraised by income approach and
                                           performance compensation
                                           (1)  If the transaction is completed before December 31, 2016 (included), SEG Group
                                           warrants that:1)AuditednetprofitsofSEGPropertyDevelopmentafterthedeductionof
                                           non-recurring profits and losses and investment income of 2016, 2017 and 2018
                                           respectively (hereinafter referred to as "guaranteed net profits") shall not be lower than
                                           RMB 8.05 million, RMB 7.85 million and RMB 7.75 million respectively; 2) The
                                           guaranteed netprofitsofSEGPropertyManagementof2016,2017and2018shallnotbe
                                           lower than RMB 4,05 million, RMB 3.45 million and RMB 3.6 million respectively; 3)
                                           The net profits attributable to the parent company (net profits attributable to the parent
                                           company = shareholding percentage of parent company x [income actually realized by
                                           corresponding property assets (including the income of new area after renovation of
                                           property assets)-depreciation and amortization of the cost of renovation-direct cost and
                                           management costs(includingurbanpropertytax,businesstax,urbanconstructiontaxand
                                           education surtax, stamp duty, maintenance tax, insurance premium and land use tax,
                                           excluding depreciation and amortization)-relevant losses caused by renovation (if
                                           any)-other operatingcostsandtaxesofcorrespondingproperties(includingincometax)],
                                           hereinafter referredtoas"guaranteednetprofits")ofthepropertyassets(minustheparts
                                           used by the companies) of SegMaker, SEG Recreation and SEG Real Estate of 2016,
                                           2017 and2018 appraisedbyincomeapproach shall not be lowerthan RMB 63,013,500,
                                           RMB 59,995,800andRMB77,627,200respectively.
                                           (2)  If the transaction is completed after December 31, 2016 and before December 31,
                                           2017 (included), SEG Group warrants that: 1) Guaranteed net profits of SEG Property
                                           Development of 2017, 2018 and 2019 respectively shall not be lower than RMB 7.85
                                           million, RMB 7.75 million and RMB 7.75 million respectively; 2) The guaranteed net
                                           profits of SEG Property Management of 2017, 2018 and 2019 shall not be lower than
                                           RMB 3.45 million, RMB 3.60 million and RMB 3.75 million respectively; 3) The
                                           guaranteed net profits corresponding to the propertyassets (minus the parts used by the
                                           companies) of2017,2018and2019asappraisedbyincomeapproachofSegMaker,SEG
                                           Recreation and SEG Real Estate shall not be lower than RMB 59,995,800, RMB
                                           77,627,200 andRMB94,723,100respectively.
                                           (3) If the actual net profits on the foregoing assets appraised by income approach after
                                           accumulative deduction of non-operating profits and losses as of the end of any year
                                           during the performanceguaranteed period are lower than the accumulatively guaranteed
                                           net profitsofcorrespondingassetsasoftheendofsuchyear,SEGGroupshalluseShen
                                           SEG shares obtained by acquisition of relevant assets as the consideration to make
                                           compensation for Shenzhen SEG in terms of the shares issued to SEG Group according
                                           to thefollowingcalculationmethod.Forthepartnotcoveredbyshares,SEGGroupshall
                                           compensate incash:1)tocompensate100%oftheequityofSEGPropertyDevelopment
                                           and 100%ofthe equityofSEG PropertyManagementappraised byincome approach: I.
                                           Number ofsharestobecompensatedeveryyear=(accumulatedguaranteednetprofitsas
                                           of the end of the current period -actually accumulated net profits as of the end of the
                                           current period)/total guaranteed net profits of years during the compensation period x
                                           total subscribed shares-amount of compensated shares. Remarks: The "total subscribed
                                           shares" refers to the total number of shares obtained by SEG Group by subscribing all
                                           shares issuedbyShenzhenSEGat100%oftheequityofSEGPropertyDevelopmentand
                                           100% oftheequityofSEGPropertyManagementappraised,i.e.totalsubscribedshares=
                                           100% of the equity of SEG Property Development or 100% of the equity of SEG
                                           Property Managementasthe overallprice/offeringprice ofthe sharesissued this timeto
                                           purchase assets. Whenthe numberof shares ofShenzhen SEG iscalculated by100%of
                                           the equityofSEGPropertyManagement,theimpactofthe79.02%oftheequityofSEG
                                           Real Estate (the parent company of SEG Property Management) held by SEG Group
                                           should be taken into consideration. II. The part not covered by shares will be
                                           compensated bySEG Groupincash.Amountofextracashtobecompensated=number
                                           of sharesnotcoveredxofferingpriceofthesharesissuedthistimetopurchaseassets.
                                           2)   Compensationofpropertyassetsheldbyalltargetcompaniesappraisedbyincome
                                           approach
                                           I.   Number of shares to be compensated every year = (accumulated guaranteed net
                                           profits asofthe endofthe current period -actuallyaccumulatednetprofitsasofthe end
                                           of thecurrentperiod)/totalguaranteednetprofitsofyearsduringthecompensationperiod
                                           x totalsubscribedshares-amountofcompensatedshares.Remarks:The"totalsubscribed
                                           shares" in the foregoing formula refers to the total number of shares obtained by SEG
                                           Group by subscribing all shares issued by Shenzhen SEG at the price of the property
                                           assets (including the property assets appraised by income approach and are held by
                                           SegMaker, SEG Recreation and SEG Real Estate) appraised by income approach, i.e.
                                           total subscribed shares = appraised price of the property assets appraised by all target
                                           companies with income approach/the offering price of the shares issued this time to
                                           purchase assets.WhenthenumberofsharesofShenzhenSEGiscalculated,theimpactof
                                           the percentagesofsharerightsofalltargetcompaniesheldbySEGGroupshallbetaken
                                           into consideration.II.ThepartnotcoveredbyshareswillbecompensatedbySEGGroup
                                           in cash. Amount of extra cash to be compensated = number of shares not covered x
                                           offering priceofthesharesissuedthistimetopurchaseassets.
                                           (4)  When the performance guaranteed period expires, Shenzhen SEG shall hire the
                                           Certified Public Accountants with securities practice qualification recognized by both
                                           parties tocarryoutimpairmenttestontheforegoingassetsappraisedbyincomeapproach
                                           and issue the impairment test report. If the impairment amount at the end of the current
                                           period of the assets appraised by income approach is greater than the total number of
                                           shares compensated during the performance guaranteed period x offering price of the
                                           shares issued this time to purchase assets + total amount of cash compensated, SEG
                                           Group shallmakecompensationfortheimpairedpartofsuchassetsofShenzhenSEG:1)
                                           Number of shares compensated for the impaired part of the assets appraised by income
                                           approach = impairment amount at the end of the current period of the underlying assets
                                           appraised byincome approach/offeringprice of the shares issued this time - total shares
                                           already compensated during theperformanceguaranteedperiod. 2) Thepart not covered
                                           by shares will be compensated by SEG Group in cash. Amount of extra cash to be
                                           compensated = number of shares not covered x offering price of the shares issued this
                                           time topurchaseassets.
                                           (5)  Under anycircumstances,the totalnumberofsharescompensatedarisingfromthe
                                           actual netprofitslessthantheguaranteednetprofitsandtheimpairmenttestintotalshall
                                           be limited to the total number of Shen SEG shares (including share increase by transfer
                                           and stockdividends) obtainedby subscription with100% of the equityof SEGProperty
                                           Development, 100% of the equity of SEG Property Management and property assets of
                                           target companies appraised by SEG Group with income approach. The part not covered
                                           will be compensated in cash by SEG Group, which is limited to the cash consideration
                                           paid forShenSEGshareswithsuchassets.
                                           2.   Performanceguaranteeofunderlyingassetsappraisedbyhypotheticaldevelopment
                                           method andperformancecompensation
                                           (1)  SEG Group warrantsthat the actualdevelopmentprofits (hereinafter referredto as
                                           "guaranteed development profits") of SEG ECO Phase I Project, Shenzhen SEG
                                           International  Electronics Industry Center Project of Shenzhen SEG New City
                                           Construction and Development Co., Ltd. (hereinafter referred to as "SEG New City
                                           Development"), Xi'an SEGPlaza Project of Xi'an SEG(subsidiary ofSEG Real Estate),
                                           and the remainingbuildingofOrientalVeniceProject andSEGHolidayPlazaProject of
                                           Huizhou Stars Real Estate Development Co., Ltd. (subsidiary of SEG Real Estate) shall
                                           not be lower than RMB 104,007,500, RMB 449,494,900, RMB 661,619,900, RMB
                                           18,501,000 andRMB154,605,400respectively.
                                           (2)  The compensation period of the transaction is three fiscal years from the year of
                                           completion of the transaction (included). When the restructuring compensation period
                                           expires, ShenzhenSEGshallhiretheCertifiedPublicAccountantwithsecuritiespractice
                                           qualification recognized by both parties to carry out audit on the realized profits of the
                                           foregoing real estate projects appraised by hypothetical development method (including
                                           the development profits realized in the transitional period) and unrealized development
                                           profits (ifany),andissuespecialauditreportsrespectively.If,duringtheperiodfromthe
                                           appraisal base date to the expiry date of the three-year guaranteed period, the achieved
                                           sales area of the real estate projects under the underlying assets (hereinafter referred to
                                           the "achieved sales area") fails to reach 90% of the remaining sellable area as of the
                                           appraisal basedateorthesellableareaaftercompletion, SEGGroupagreestoextendthe
                                           performance guaranteed period of the real estate projects appraised by hypothetical
                                           development method to the end of the year when the achieved sales area reaches 90%
                                           (i.e. December 31 of that year). All the real estate projects appraised by hypothetical
                                           development methodshallbe subjectto the foregoingstipulationsseparately.During the
                                           transaction compensation period, the amount of the capital raised this time with impact
                                           shall be deducted from realized and unrealized development profits (if any) of the real
                                           estate projectsappraisedbyhypotheticaldevelopmentmethod,thecalculationformulaof
                                           the amountofthe supportingcapitalraisedthis timewithimpactis asbelow:amount of
                                           the supporting capital raised this time with impact on the performance guarantee =
                                           amount of the supporting capital raised this time actually used in funded projects x
                                           interest of loan from the bank of corresponding period x (1 - income tax rate of the
                                           implementation subjectofimplementationofthefundedprojects)xactualdaysofcapital
                                           use/365, in which the interest of loan from the bank of corresponding period shall be
                                           determined bytheinterestrateofloanof1to3yearsofthePeople'sBankofChinaofthe
                                           corresponding periodoftheactualoperationplus20%extra,andtheactualdaysofuseof
                                           the capital raised shall be calculated bythe natural daysduring the period fromthe date
                                           on which the raised capital is provided to the implementation subject of the funded
                                           project till the earlier one of the expiry date of the compensation period and the date on
                                           which relevantcapitalisrepaid tothe listedcompany.If the total amountofthe realized
                                           development profits and the unrealized development profits (if any) of such real estate
                                           projects islower than the guaranteeddevelopment profits, SEG Group shall compensate
                                           Shenzhen SEG with the shares used by Shenzhen SEG as payment consideration
                                           acquired from relevant project subscription according to the following calculation
                                           method, and SEG Group shall compensate in cash the part not covered by shares: 1)
                                           number of shares to be compensated = [accumulated realized development profits from
                                           the base date of appraisal to the expiry date of the performance guarantee period -
                                           unrealized developmentprofitsoftheprojects(ifany)]/guaranteeddevelopmentprofitsx
                                           total subscribed shares.Remarks:In the foregoingformula,the "total subscribed shares"
                                           refer to the total number of shares obtained by SEG Group by using the real estate
                                           projects held indirectly that are appraised by hypothetical development method to
                                           subscribe the total shares issued by Shenzhen SEG. When the number of shares
                                           subscribed ofShenzhenSEGiscalculated,theimpactofthepercentageofequityofSEG
                                           Real EstateheldbySEGGroupandthatoftheforegoingrealestateprojectsheldbySEG
                                           Real Estate shall be taken into consideration. The realized development profits in the
                                           foregoing formula refer to the net profits of the projects after deducting corresponding
                                           inventory developmentcostalreadycarriedforward,expensesandtaxesfromtherealized
                                           sales income of real estate projects as of the expiry date of the restructuring
                                           compensation period. The unrealized development profits refer to that if there are
                                           development products not sold yet in corresponding real estate projects when the
                                           restructuring  compensation  period  expires, the  unrealized development profits
                                           corresponding to the remaining development products shall be determined according to
                                           the followingmethods:unrealizeddevelopmentprofits=estimatedunitsalespriceofthe
                                           remaining development products x area - book cost corresponding to development
                                           products - estimated sales cost - estimated sales cost - measured land VAT- measured
                                           income tax. Remarks: In the estimated unit sales price of the remaining development
                                           products, if a sales contract has been signed, the unit price set out in the contract shall
                                           prevail, and ifno salescontract hasbeen signed, the unit salespriceshall be determined
                                           by the unit sales price of the same type of products sold earlier; the area shall be
                                           determined by the actually sold sales area corresponding to the development product;
                                           estimated sales cost shall be determined according to the percentage of the sales cost
                                           corresponding to the sales product in the sales income; estimated sales taxes shall be
                                           determined according to the fee standard of the real estate industry; and measured land
                                           VATandincometaxshallbecalculatedaccordingtorelevantstandardsofthetaxlaws.
                                           2)   The part not covered by shares will be compensated by SEG Group in cash.
                                           Amount ofextracashtobecompensated=numberofsharesnotcoveredxofferingprice
                                           of thesharesissuedthistimetopurchaseassets.
                                           (3)  When the performance guaranteed period expires, Shenzhen SEG shall hire the
                                           Certified Public Accountant with securities practice qualification recognized by both
                                           parties to carry out impairment test on the foregoing assets appraised by hypothetical
                                           development method and issue the impairment test report. If the impairment amount at
                                           the end of period of the real estate projects appraised by hypothetical development
                                           method is greater than the total number of shares compensated during the performance
                                           guaranteed periodxofferingpriceofthesharesissuedthistimetopurchaseassets+total
                                           amount ofcashcompensated,SEGGroupshallmakecompensationfortheimpairedpart
                                           of suchassetsofShenzhenSEG:1)Numberofsharescompensatedfortheimpairedpart
                                           of the real estate projects appraised by hypothetical development method = impairment
                                           amount at the end of period of the real estate projects appraised by hypothetical
                                           development method/offering price of the shares issued this time - total shares already
                                           compensated during the performance guaranteed period. 2) The part not covered by
                                           shares will be compensated by SEG Group in cash. Amount of extra cash to be
                                           compensated = number of shares not covered x offering price of the shares issued this
                                           time topurchaseassets.
                                           (4)  Under any circumstances, the total of the total amount of actually realized
                                           development profits and unrealized development profits (if any)and the total numberof
                                           compensated sharesoccurredduetoimpairmenttestshallnotexceedthetotalnumberof
                                           shares of Shenzhen SEG (including the shares increased by transferring and stock
                                           dividends) obtainedbySEGGroupsubscribingthesharesissuedbyShenzhen SEGwith
                                           the real estate projects appraised by hypothetical development method. The insufficient
                                           part willbe compensatedin cashbySEG Group withthe limitasthe cashconsideration
                                           paid forShenSEGshareswithsuchprojects.
                                           3.   Performancecompensationofassetsappraisedbymarketapproach
                                           (1)  Forthepropertyassetsappraised bymarketapproach, ShenzhenSEGshall engage
                                           certified public accountants that possess the qualification in practicing the securities
                                           business in the end of every year during the performanceguaranteed period to carryout
                                           impairment test, and issue impairment test report. SEG Group shall compensate
                                           Shenzhen SEG with the shares used by Shenzhen SEG as payment consideration
                                           acquired fromrelevantassetssubscriptionaccordingtothefollowingcalculationmethod,
                                           and SEGGroupshallcompensateincashthepartnotcoveredbyshares:1)Totalnumber
                                           of  shares to be compensated = impairment amount at the end of the current
                                           period/offering price of the shares issued this time to purchase assets -number of shares
                                           already compensated. 2) The part not covered by shares will be compensated by SEG
                                           Group incash.Amountofextracashtobecompensated=numberofsharesnot covered
                                           x offeringpriceofthesharesissuedthistimetopurchaseassets.
                                           (2)  Under anycircumstances,the totalnumberofsharescompensatedarisingfromthe
                                           impairment test shall not exceed the total amount of Shenzhen SEG shares acquired by
                                           SEG Groupwiththepropertyassetsappraisedbymarketapproachpreviously(including
                                           share increase by transfer and stock dividends). The part not covered by shares and the
                                           amount compensated in cash in total shall not exceed the cash consideration paid for
                                           Shenzhen SEG shares acquired by SEG Group with such property assets. Relevant
                                           compensation methods for the foregoing 100% of the equity of SEG Property
                                           Development, 100% of the equityof SEG Property management and the propertyassets
                                           held by the target companies appraised by income approach and the real estate projects
                                           appraised byhypotheticaldevelopmentmethodaswellasotherpropertyassetsappraised
                                           by market approach are independent. The number of shares compensated by assets
                                           appraised byothermethodsisnotconsideredwhenthenumberofsharescompensatedis
                                           calculated. When the number of shares to be compensated and/or amount of cash
                                           calculation ofeachyeariscalculatedaccordingtorelevantstipulationsmentionedabove,
                                           if the number of compensated shares calculated is smaller than 0, take 0, i.e. the shares
                                           compensated willnotberefunded;ifthecashcompensationamountcalculatedissmaller
                                           than 0, take 0, and the cash compensated will not be refunded. When the impairment
                                           amount is calculated, the impactof capital increase, decrease,acceptance of the giftand
                                           profit distribution of the shareholders of underlying assets during the performance
                                           guaranteed periodontheamountofimpairmentshallbeeliminated.
                                           (IV) Triggeringconditionforperformancecompensation
                                           After the completion of the transaction, if assets within the transaction compensation
                                           scope asspecifiedinthespecialauditreportareimpairedorfailtoachievethepromised
                                           performance, SEG Group shall make compensation to Shenzhen SEG as agreed in the
                                           agreement.
                                           (V) Performancecompensationmethod
                                           After the completion of the transaction, if assets within the transaction compensation
                                           scope are impaired or fail to achieve the promised performance, SEG Group shall
                                           compensate ShenzhenSEGincashorshares.
                                           (VI) Effectivenessandterminationoftheagreement
                                           The agreementismadeupon signatureandsealbythe legalrepresentativeor authorized
                                           agent ofeachparty.AsanintegralpartoftheAssetPurchaseFacility,theagreementshall
                                           come intoeffectfromthedateofeffectivenessoftheAssetPurchaseFacility.
                                           When the Asset Purchase Facility is rescinded, terminated, or deemed as invalid, the
                                           agreement isalsorescinded,terminated,orinvalid.
                                           (VII) Liabilityforbreachoftheagreement
                                           Except for in case of force majeure, violation of any terms of the agreement by either
                                           party constitutes breach of the agreement. The default party shall compensate for all
                                           losses arisingfrombreachoftheagreementtothenon-breachingparty.
                                           "1. In the restructuring,relevantassets, such as somecommercial electronics marketsof
                                           SEG Group that constitute horizontal competition, have not been injected into the listed
                                           company. SEGGroupwilltrustsuchassetstoShenzhenSEGoritssubsidiariesafterthe
                                           major asset restructuring. Within5 yearsafter the majorasset restructuring, SEG Group
                                           will take all necessary measures to solve flaws of such assets, and incorporate the
                                           preceding specialized electronics markets that constitute horizontal competition into
                                           Shenzhen SEGortransferthemtothethirdpartyinafeasiblewaysuchassalesbasedon
                                           operating needsofShenzhenSEGandthecompletenessoftheownershipofsuchassets.
                                           If SEG Group fails to complete the foregoing matters as scheduled, before injecting
                                           relevant assets to Shenzhen SEG,SEG Group shall lease them to Shenzhen SEG for
                                           direct operation and enjoy the income from such property.The annual rent of Shenzhen
                               Commitmenton  SEGisthedepreciatedvalueofsuchproperty.Profitandlossincurredbyleasingofsuch
                               horizontal      propertyassetsshallbesharedbyShenzhenSEG.Thepartiesshallseparatelyenterintoa
                    ShenzhenSEG competition,    leasingagreement.                                               August3,
                    GroupCo.,    related        2. Except assets owned and business operated before the validity date of commitment,2016      Long-term  Inprogress
                    Ltd.        transaction,and  whenactingasacontrollingshareholderoractualcontrollerofShenzhenSEG,inorderto
                               capitaloccupation sguupaerarvnitseieonsuasntdainreasbtlreictdioenveolonpompeenrtationfgSachteinvizthieesnoSfEitGs,otwhneaCnodmapfafinliyatewdilelnteexreprrcisisees
                                           under its control, will not establish new or acquire any assets or business same as or
                                           similar to its main business within the operation area of Shenzhen SEG,and will not be
                                           engaged in any activities that may damage the interests of Shenzhen SEG and other
                                           companies andenterprisescontrolledbyShenzhenSEG,orothereconomicorganizations.
                                           If inthefuturethereisanybusinessopportunitysameasorsimilartoothermainbusiness
                                           within  Shenzhen SEG operation area, such opportunity will preferentially be
                                           recommended to Shenzhen SEG and other companies and enterprises controlled by
                                           Shenzhen SEG,orothereconomicorganizations.However,anyof the followingcasesis
                                           an exception: (1) Due to national laws, regulations and policies and other reasons, any
                                           commercial properties and real estate development projects appropriated or allocated
                                           through orientedprotocolsbythegovernmenttoSEGGroupandanyenterprisesinvested
                                           by it; or (2) when the general conditions of tender, transfer or assignment of specific
                                           commercial properties and real estate development projects have specific requirements
                                           on the bidder or assignee,Shenzhen SEG is not qualified ybut SEG Group is qualified.
                                           Commercial property and real estate development projects that are same as the main
                                           business of Shenzhen SEG or result in horizontal competition subject to the above
                                           exclusions maybeinvestedandbuiltbySEGGroupatfirst.IfShenzhenSEGthinksthat
                                           such assets are eligible to be injected into Shenzhen SEG,upon receipt of the written
                                           acquisition notice from Shenzhen SEG, SEG Group will negotiate on acquisition and
                                           transfer suchprojectstoShenzhenSEG.Incaseofbreachoftheforegoingcommitments,
                                           the Company will bear all losses thus incurred to Shenzhen SEG,the subject company,
                                           other  companies, enterprises, or other economic organizations controlled by the
                                           Company."
                                           "1. When the Company acts as the controlling shareholder of Shenzhen SEG, the
                                           Company, other companies, enterprises, or other economic organizations controlled by
                                           the Company,will minimizeand regulate connected transactionswith Shenzhen SEG or
                                           the subject company, other companies, enterprises, or other economic organizations
                                           controlled bytheCompany.
                                           2. When the restructuring is completed, the Company,other companies, enterprises, or
                                           other economic organizations controlled by the Company will handle connected
                                           transactions withShenzhenSEGorthesubjectcompanythatareunavoidableorincurred
                               Commitmenton  for reasonable cause at fair and reasonable market price, perform the decision-making
                    ShenzhenSEG horizontal      procedure for connected transactions according to relevant laws, regulations, and
                    GroupCo.,    competition,    normative documents, fulfill the obligation of information disclosure and handle the August3,   Long-term  Inprogress
                    Ltd.        related        approval procedures according to the law, do not use the dominant position of the 2016
                               transaction,and  controlling shareholder to damage the legal rights and interests of Shenzhen SEG and
                               capitaloccupation othershareholders.
                                           3.  The Company, other companies, enterprises, or other economic organizations
                                           controlled bythe Companywill not use the rightsof shareholders of the listed company
                                           or the actual control abilityto manipulate or instruct the listed companyor its directors,
                                           supervisors and senior executives to have the listed companyunfairly provide or accept
                                           funds, goods,servicesorotherassets,orengageinanyactsdetrimentaltotheinterestsof
                                           listed companies. In case of breach of the foregoing commitments, the Company will
                                           bear all losses thus incurred to Shenzhen SEG,the subject company, other companies,
                                           enterprises, orothereconomicorganizationscontrolledbytheCompany."
                                           1. The subject company is a limited liability company or stock-limited company
                                           established and validly existing according to law with legitimate business qualification;
                                           the subject company has obtained all approvals, permission, authorization and permits
                    ShenzhenSEG              required for its setting up and operation of business, all such approvals, permission,
                    GroupCo.,    Other         authorization and permits are valid and there exists no reasons or situations which may August3,   Long-term  Inprogress
                    Ltd.        commitment    causetheaboveapprovals,permission,authorizationandpermitsinvalid.           2016
                                           2. The subject company has not been involved in any severe violation of laws or
                                           regulations during productionoperation nor anysituations wheretermination is required
                                           according to the requirements of relevant laws, regulations, normative documents and
                                           articles of association. As of the date of issuance of this commitment letter, the subject
                                           company has no pending or predictable significant lawsuit, arbitration or administrative
                                           penalty with amount of subject of morethan one million or which will generateadverse
                                           impact onitsoperation.
                                           3. The subject company will independently and fully fulfill the labor contracts it signed
                                           with employees.
                                           4. If the subject companyis subject to anyrecoveryof fees or penaltyfrom the relevant
                                           competent organization in industrial and commerce, tax, employee salaries, social
                                           insurance, housing fund,business qualificationor competent authoritiesdue to anyfacts
                                           existing beforethisrestructuring,theCompanywillfullyindemnifythesubject company
                                           for all fees owned by subject company and assume all losses occurred by subject
                                           company andShenzhenSEGasaresultofthis.
                                           5. The subject company legally possesses the ownership and/or right of usage of office
                                           space, office equipment, trademark and other assets as necessary to guarantee normal
                                           production operation, has independent and complete assets and business structure, has
                                           legal ownership to its main assets with independent, complete and clear indication of
                                           ownership.
                                           6. The subject company has not been involved in any lawsuit, arbitration, judicial
                                           mandatory enforcement and other situations which interferes with the transfer of
                                           company ownership,andhasnotincurredanyexternalguaranteethatisagainstlawsand
                                           articles ofassociation oftheCompany.Aftercompletion ofthisrestructuring,ifanyloss
                                           is causedtoShenzhenSEGandthesubjectcompanyduetotheCompany'sbreachofthe
                                           above commitment, the Company agrees to assume the above mentioned liability of
                                           indemnity/compensation toShenzhenSEG/subjectcompany.
                                           "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                   Theassetshave
                                           are clear. The Company has no objection to the share ownership, share quantity, and                   been
                    ShenzhenSEG              share holding percentage of SEG Property. The Company has no disputes over share          Before
                    GroupCo.,    Other         ownershipwithSEGPropertyandothershareholders.                        August3,   completion  tthrainssferredand
                    Ltd.        commitment    2. In case any dispute over ownership of the 3.85% shares of SEG Property of which 2016      of        commitment
                                           ownership hasnotbeendetermineasofJuly26, 2016occursinthefuture,theCompany          restructuring hasbeen
                                           commits toSEGPropertythattheCompanywillprovideanynecessaryassistanttoSEG                   fulfilled.
                                           Property to solve the dispute, protect SEG Property from any loss caused thereby, and
                                           undertake correspondingresponsibilities."
                                           "1. The Company will guarantee the independence of personnel of Shenzhen SEG and
                                           subject company: (1) after completion of the restructuring, the labor, personnel and
                                           compensation management of Shenzhen SEG are independent from the Company and
                    ShenzhenSEG              related parties, such as other companies, enterprises, or other economic organizations
                    GroupCo.,    Other         controlled by the Company.(2) Guarantee that after completion of this restructuring the August3,   Long-term  Inprogress
                    Ltd.        commitment    senior executives of Shenzhen SEG and the subject company hold full-time position at2016
                                           Shenzhen SEGand the subjectcompanyand receivecompensation, and willnot assume
                                           any duties other than director and supervisor in the Company and other companies,
                                           enterprises orothereconomicorganizationsandother relatedpartiesundercontrolofthe
                                           Company. (3) Guarantee not to after completion of this restructuring interfere with the
                                           shareholders'  meeting and board of directors meeting's exercise of power in
                                           appointment/dismissal ofpersonnel.
                                           2. Guaranteetheindependence ofinstitutionsofShenzhenSEGandsubjectcompany(1)
                                           guarantee thataftercompletionofthisrestructuringShenzhenSEGandsubjectcompany
                                           will have sound corporategovernancestructure and independent, completeorganization.
                                           (2) Guaranteethataftercompletionofthisrestructuringtheshareholders'meeting,board
                                           of directors meeting and board of supervisors meeting of Shenzhen SEG and subject
                                           company will exercise duties and powers according to laws, regulations and articles of
                                           association ofShenzhenSEGandsubjectcompany.
                                           3. The Company will guarantee the independence and completeness of Shenzhen SEG
                                           and the subject company: (1) After completion of the restructuring, Shenzhen SEG and
                                           the subjectcompanywillhaveindependentandcompleteassetsrelatedtoproductionand
                                           management. (2) Guarantee that after completion of this restructuring the site for
                                           business operation of Shenzhen SEG and subject company are independent of the
                                           Company and other companies, enterprises or other economic organizations and other
                                           related parties under controloftheCompany.(3) Exceptnormaloperational intercourse,
                                           guarantee thataftercompletionofthisrestructuringShenzhenSEGandsubjectcompany
                                           do not exist any situation that funds or assets are possessed by the Company and other
                                           companies, enterprises or other economic organizations and other related parties under
                                           control oftheCompany.
                                           4. Guaranteethe businesses of Shenzhen SEGand subject companyare independent (1)
                                           guarantee thataftercompletionofthis restructuringShenzhenSEGandsubjectcompany
                                           have relevant qualification for independently carrying out operational activities, and
                                           possess independent, sustainable market-oriented operational capability. (2) Except the
                                           assets owned and business operated before validity date of commitment, during the
                                           period as controlling shareholder of Shenzhen SEG, in order to guarantee sustainable
                                           development ofShenzhenSEG,theCompanywillexercisesupervisoryandrestrictionon
                                           operating activitiesofitsownandtheaffiliatedenterprisesunderitscontrol,andwillnot
                                           establish neworacquireanyassetsorbusinessessameorsimilarwithitsmainbusinesses
                                           within theoperationareaofShenzhenSEG,andwillalsonotbeengagedinanyactivities
                                           which may damage the interests of Shenzhen SEG and other companies, enterprises or
                                           other economic organizations under control of Shenzhen SEG; if in future there exists
                                           any business opportunity same or similar with other main businesses within Shenzhen
                                           SEG operationarea,suchopportunitywillpreferentiallyrecommendedtoShenzhenSEG
                                           and other companies, enterprises or other economic organizations under control of
                                           Shenzhen SEG.(1) Due tonationallaws,regulations andpoliciesand otherreasons, any
                                           commercial properties and real estate development projects appropriated or allocated
                                           through orientedprotocolsbythegovernmenttoSEGGroupandanyenterprisesinvested
                                           by it; or (2) When the general conditions of tender, transfer or assignment of specific
                                           commercial properties and real estate development projects have specific requirements
                                           on the bidder or assignee, Shenzhen SEG is not qualified but SEG Group is qualified.
                                           Commercial property and real estate development projects that are same as the main
                                           business of Shenzhen SEG or result in horizontal competition subject to the above
                                           exclusions maybeinvestedandbuiltbySEGGroupatfirst.IfShenzhenSEGthinksthat
                                           such assets are eligible to be injected into Shenzhen SEG,upon receipt of the written
                                           acquisition notice from Shenzhen SEG, SEG Group will negotiate on acquisition and
                                           transfer such projects to Shenzhen SEG. (3) Guarantee that after completion of this
                                           restructuring,  the Company and other companies, enterprises, other economic
                                           organizations orotherrelatedpartiesundercontroloftheCompanywillreduceconnected
                                           transactions withShenzhen SEGand subject companyand other companies,enterprises,
                                           other economic organizations or other related parties under their control; for any
                                           connected transactions which are indeed necessary and unavoidable, guarantee to carry
                                           out fair operation following market principle at fair price and fulfill relevant approval
                                           procedure and information disclosureobligations according to theprovisions of relevant
                                           laws, regulationsandnormativedocuments.
                                           5. The Company will guarantee the financial independence of Shenzhen SEG and the
                                           subject company: (1) After completion of the restructuring, Shenzhen SEG and the
                                           subject company will establish an independent financial department, independent
                                           financial accountingsystem,andstandardandindependentfinancialaccountingrules.(2)
                                           After completion of the restructuring, Shenzhen SEG and the subject company will
                                           separately open an account in banks, and do not share accounts with the Company and
                                           related parties, such as other companies, enterprises, or other economic organizations
                                           controlled bytheCompany.(3)Aftercompletionoftherestructuring,financialpersonnel
                                           of ShenzhenSEGandthesubjectcompanywillnotholdapart-time jobintheCompany
                                           or related parties, such as other companies, enterprises, or other economic organizations
                                           controlled bytheCompany.(4)Aftercompletionoftherestructuring,ShenzhenSEGand
                                           the subjectcompanywillindependentlymakefinancialdecisions,and theCompanywill
                                           not interfere with fund usage of Shenzhen SEG and the subject company. (5) After
                                           completion of the restructuring, Shenzhen SEG and the subject company will pay taxes
                                           independently according to laws. In case of breach of the foregoing commitments, the
                                           Company willbearalllossesthusincurredtoShenzhenSEG,andthesubjectcompany."
                                           1. The Companydoes not exist anyof the following situations as specified in Clause 6,
                                           Administrative Measures On Acquisition Of Listed Companies: (1) Damage legitimate
                                           rights and interestsof the companyacquired and its shareholdersutilizing acquisition of
                                           listed company; (2) With large amount of outstanding debts and this in-debt status has                   Theassetshave
                                           lasted for a certain period of time; (3) Has actual or alleged serious illegal activities in          Before     been
                    ShenzhenSEG Other         recent three years; (4) Has serious behaviors of breaching promises in securities market August3,   completion  transferredand
                    GroupCo.,    commitment    inrecentthreeyears;(5)Othersituationsinwhichnoacquisitionoflistedcompaniesare 2016               this
                    Ltd.                     allowedaccordingtolawsandadministrativeregulationsandintheopinionsofCSRC.            orefstructuringcommitment
                                           2. The Company and its main managers have not suffered from any administrative                   hasbeen
                                           punishment (administrativepunishmentobviouslyunrelatedtosecuritymarketexcluded),                   fulfilled.
                                           criminal punishment, major civil lawsuit or arbitration related to economic disputes
                                           within thelastfiveyears.Incaseofbreachoftheforegoingcommitments,theCompany
                                           will bearalllossesthusincurredtoShenzhenSEG,andthesubjectcompany."
                    ShenzhenSEG              "1. The Company is an enterprise incorporated in China that owns the full capacity for          Before     Theassetshave
                    GroupCo.,    Other         civil conduct and has the legal body qualification for participating in the restructuring, August3,   completion  been
                    Ltd.        commitment    signingagreementswithShenzhenSEG,andperformingrightsandobligationsunderthe 2016      of        transferredand
                                           agreement.                                                              restructuring this
                                           2. Except that the property located at 4F, Block 2, SEG Industrial Building of SEG                   commitment
                                           Property Investmentfunded bythe Companyisto handle the transferformality(with no                   hasbeen
                                           legal impediment),theCompanyhasfulfilledtheobligationofcontributingcapitaltothe                   fulfilled.
                                           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 arenocircumstancesthatmayaffectthelegalexistenceofthesubjectcompany.
                                           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. Theequitiesheldbythe Companyin the subjectcompanyareactuallylegallyowned.
                                           There isnodisputeorpotentialdisputeoverownershipofequities,notrust,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 SEGafterchangeofregistration.
                                           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. TheCompanypromises to completeformalitiesforownership transferofthese
                                           equities withintheagreedperiod.
                                           6. BeforetheequitiesareregisteredunderShenzhenSEGafterchangeofregistration,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, suchasdisposalofassets,externalguarantee,oradditional majordebts,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, theseactionscanbetakenonlyafterwrittenapprovalofShenzhenSEG.
                                           7. The Company undertakes that there are not any ongoing or potential litigation,
                                           arbitration, or dispute that mayaffect 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 agreementsdo not contain restrictiveclauses that mayaffectthe Company's
                                           equity transfer.In case of breach of the foregoing commitments, the Company will bear
                                           all lossesthusincurredtoShenzhenSEG."
                    ShenzhenSEG              "The Company has not disclosed any insider information about the restructuring or          Before
                    GroupCo.,    Other         utilized such insider information for insider trading. In case of breach of the foregoing August3,   completion  Fulfilled
                    Ltd.        commitment    commitments,theCompanywillbearalllossesthusincurredtoShenzhenSEG."      2016      of
        restructuring
                    ShenzhenSEG Other         "1. Shares of Shenzhen SEG subscribed by the Company in the restructuring will be August3,
                    GroupCo.,    commitment    lockedupfor36monthsfromthedateoflisting.SharesofShenzhenSEGacquiredinthe 2016      Long-term  Inprogress
                    Ltd.                     restructuringshallnotbetradedortransferredormanagedbyothersunderentrustmentor
                                           repurchased by Shenzhen SEG within 36 months from the date of completion of the
                                           offering. Afterthecompletionofthisoffering,additionalsharesheldduetobonusshares
                                           and converted equity capital shall be also subject to the foregoing agreement. When the
                                           foregoing lockupperiodexpires,sharetransferandtransactionwillbesubjecttothevalid
                                           laws, regulations,andprovisions,rules,andrequirementsofChinaSecuritiesRegulatory
                                           Commission andShenzhenStockExchange.
                                           2. If the closing price of Shenzhen SEG stocks is lower than the initial offer price for
                                           consecutively 20tradingdayswithin6monthsafterthecompletionoftherestructuringor
                                           the closingpriceofShenzhenSEGstocksislowerthantheinitialofferpriceattheendof
                                           6 months after the completion of the restructuring, the lockup period of Shenzhen SEG
                                           stocks willbeautomaticallyextendedfor6months.
                                           3. If the information provided or disclosed in the restructuring is suspected of false
                                           representations, misleadingstatements,ormaterialomissionsandthejudicialauthorityor
                                           China Securities RegulatoryCommission investigatesand places the caseon file, shares
                                           of ShenzhenSEGheldbytheCompanywillnotbetransferred.
                                           4. Beforetherestructuring,allstocksofShenzhenSEGheldbytheCompanyshallnotbe
                                           transferred within12monthsafterthecompletionoftherestructuring.
                                           5. If relevant laws, regulations, and normative documents have special requirements on
                                           the lockup period of shares, these laws, regulations, and normative documents shall
                                           prevail.
                                           6. If the foregoing lockup period is not consistent with the latest regulation requirement
                                           of the security regulatory authority, the Company agrees to adjust it according to the
                                           latest regulation opinionof the regulation suggestionof the securityregulatory authority
                                           and implement the relevant provision of China Securities Regulatory Commission and
                                           Shenzhen StockExchangeafterthelockupperiodexpires.
                                           "1. Intherecent5years,theCompanyhasnotbeensubjecttoanyadministrativepenalty
                                           (except thosenotrelatedtothesecuritiesmarket)orcriminalpenalty.
                                           2. Intherecent5years,exceptforthosecasesthathavebeenconcluded,suchasthecase
                                           of Hainan SEGInternational Trustand InvestmentCompany,Zhongshi case,GTJAcase
                                           and Dasheng case, the Company is not involved in other major civil proceedings or
                    ShenzhenSEG              arbitration(thesubjectindisputeof10millionyuan)relatedtoeconomicdisputes.              Before
                    GroupCo.,    Other         3. The Company has never been suspected of insider trading related to major asset August3,   completion  Fulfilled
                    Ltd.        commitment    restructuring and placed on file for investigation or placed on file with the case not 2016      of
                                           settled. Intherecent5years,theCompanyhasneverfailedtorepaylargedebtsorfulfill          restructuring
                                           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 toShenzhenSEG."
                    BoHongxi,                "1. I have not been subject to any administrative penalty by the CSRC in recent 36          Before
                    CaoXiang,Fan Other                                                                    August3,   completionmonths,orpubliccensurebytheStockExchangeintherecent12months.                             Fulfilled
                    Zhiqing,Li   commitment    2. I havenot been investigatedbyjudicial authorities dueto allegedcrimesor byCSRC 2016      of
                    Luoli,Liu                                                                                     restructuring
                    Fusong,Liu                duetoallegedirregularities.
                    Zhijun,Ru                In case of breach of the following commitments, I will bear all losses thus incurred to
                    Guiqin,Song               ShenzhenSEG."
                    Pingping,Tang
                    Chongyin,
                    WangLi,Xu
                    Ning,YuQian,
                    Zhang
                    Guangliu,
                    ZhangHaifan,
                    ZhengDan,
                    ZhuLongqing
                                           "1. Intherecent5years,theCompanyhasnotbeensubjecttoanyadministrativepenalty
                                           or criminal penalty or involved in other major civil proceedings or arbitration related to
                    Directors,                 economicdisputes.
                    supervisors,               2. The Company has never been suspected of insider trading related to major asset          Before
                    andsenior    Other         restructuring and placed on file for investigation or placed on file with the case not August3,   completion
                    executivesof  commitment    settled.Intherecent5years,theCompanyhasneverfailedtorepaylargedebtsorfulfill 2016      of        Fulfilled
                    ShenzhenSEG              commitments, or been subject to administrative supervision measures by the CSRC or          restructuring
                    GroupCo.,                disciplinary action by the Stock Exchange due to insider trading related to major assets
                    Ltd.                     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                    "1. In the recent 3 years,the Company has not been subject to anymajoradministrative
                    Recreation,                punishment or criminal punishment or involved in other major civil proceedings or
                    SEGProperty              arbitrationrelatedtoeconomicdisputes.
                    Development,              2. The Company has never been suspected of insider trading related to major asset
                    SEGProperty                                                                                   Before
                               Other         restructuring and placed on file for investigation or placed on file with the case notInvestment,August3,   completion
                    SEGNewCity commitment    sceotmtlemdi.tmInenthtse,roecrebnete5nyseuabrjse,ctthetoCaodmmpiannisytrhaatisvenesvueprefraviilseidontomreepaasyurleasrgbeydtehbetsCoSrRfuClfiolrl2016      of        Fulfilled
                    Construction,              disciplinary action by the Stock Exchange due to insider trading related to major assets          restructuring
                    SEGProperty              restructuring, or been held criminally liable by the judicial authorities according to law.
                    Management,
                    Huizhou                  ISnhecnazsheeonfSbErGea."chof the following commitments, I will bear all losses thus incurred to
                    Qunxing,Xi'an
                    SEG,Beijing
                                           "1. SEG Group has legal ownership of lands, properties, and equities transferred to
                    ShenzhenSEG              SegMakerwithoutcompensationbeforetherestructuring,andthereisnodisputeoverthe          Before
                    GroupCo.,    Other         ownership of transferred assets. Except for some mortgaged properties that require the August3,   completion  Fulfilled
                    Ltd.        commitment    consent of the mortgagee, there is no legal obstacle to the registration of ownership2016      of
                                           change.                                                                restructuring
                                           2. TheCompanyundertakestocompletetheformalitiesofownershipregistrationchange
                                           of assetstransferredtoSegMakerbeforetheBoardofDirectorsreviewstherestructuring
                                           draft. TheCompanywillcompensateSegMakerinfullifSegMakerisheldresponsibleor
                                           punished, or suffer any other loss due to the Company's violation of the foregoing
                                           commitment ordefectsofthetransferredassets."
                                           "As of the date ofissuanceof the commitmentletter,SEGRecreation owns9 properties
                                           with the total construction area of 12,941.28 m2. The actual proprietor of the property
                                           located at 1F,Block 1, SEG Industrial Building with an area of 902 m2 is SEG Group.
                                           Due totheprovisionthatindustrialbuildingsinShenzhenshallbetransferredasawhole,
                                           the transfer registration formality for the property has not been handled. The actual
                                           proprietor of Room 508, Block 4, SEG Residential Quarter is SEG Recreation, 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 Recreation but
                                           whose actual proprietor is SEG Group and the property whose registered proprietor is
                                           SEG Group but whose actual proprietor isSEG Recreation. SEG Group will assist SEG
                                           Recreation in completing the division and transfer registration formalities for the
                                           foregoing properties. After the restructuring, if Shenzhen SEG suffersany losses due to
                                           ownership ofsuchproperties,SEGGroupwillcompensateShenzhenSEGinfull.
                                           2. The construction in process-assembly workshop that SEG Group uses to contribute
                                           capital to SEG Property Investment is 4F,Block 2, SEG Industrial Building (real estate
                                           proprietorship certificate No.: S. F. D. Zi. No. 3000759297) with the total area of
                                           1,936.71 m2. The property was delivered to SEG Property Investment upon capital
                    ShenzhenSEG              contribution, but the transfer formality could not be handled without the certificate on          Before
                    GroupCo.,    Other         capital contribution. Due to negligenceof the handler,the propertywas registered under August3,   completion  Fulfilled
                    Ltd.        commitment    SEG Group together withother properties ofSEGIndustrial Buildingbelongingto SEG 2016      of
                                           Group. Due to the restriction of transfer of industrial buildings as a whole, the transfer          restructuring
                                           formality hasnotbeenhandled.SEGPropertyInvestmenthasbeenoccupying,using,and
                                           acquiring operating revenue from the property since capital contribution. The Company
                                           will assist SEG Property Investment in completing the transfer registration formality of
                                           the foregoingproperty.Aftertherestructuring,ifShenzhenSEGsuffersanylossesdueto
                                           ownership ofsuchproperties,SEGGroupwillcompensateShenzhenSEGinfull.
                                           3. The Company will help and propel the subject company and its subsidiaries to
                                           complete ownership registration of land and 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, andchangeinplannedlandpurpose);or(2)cannothandletherelevantland
                                           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 ofnonstandardlanduserightsandproperties(excludingresultsnotcaused
                                           by the subject company and its subsidiaries, such as force majeure, laws, policies,
                                           government management, and change in planned land purpose), and sufferactual losses
                                           including but not limited to compensation, fines, expenses, and interests damage, the
                                           Company willcompensatethesubjectcompanyanditssubsidiariesinfull.
                                           Before issuancedateoftherestructuringreportofShenzhenSEG,SEGGroupwillfinish
                                           formalities related to transfer of ownership of the property (4F,Block 2, SEG Industrial
                                           Building). IfSEGGroupfailstofinishtheformalitiesatexpiration,SEGGroupagreesto          Before
                    ShenzhenSEG Other         compensate SEG Property Investment RMB 1.5 million in currency, and allows SEG August3,   completion
                    GroupCo.,    commitment    Property Investment to continue to use the property for free until SEG Group transfers 2016      of        Fulfilled
                    Ltd.                     the ownership of the property to SEG Property Investment. SEG Group agrees to          restructuring
                                           compensate SEG Property Investment for any operating loss or other economic loss of
                                           SEG PropertyInvestmentcausedbySEGGroup'sfailureintransferringtheownershipof
                                           the property.
                                           "After updating and restructuring of SEG Industrial Building, SEG Economy Building,
                                           and SEGRecreationIndustryBuilding, theareaofaddedpartthatbelongstoSegMaker,
                                           SEG RecreationandSEGPropertyis2,855.20m2.SEGGroupundertakesthattheuseof
                                           the temporarybuildings belonged to SegMaker,SEG Recreation and SEG Property will
                                           be renewedafterexpiration of thetwo-year use duration. Incasewhen, due to failurein
                                           renewal of use of temporary buildings, the listed company has any loss or the income
                                           during theperiodfromexpirationoftheperformancecommitmentperiodtoexpirationof
                                           the evaluated income expected period is lower than the expected compensation, or the
                                           listed company has any loss because the temporary buildings are required to be
                                           dismantled bygovernmentalorgansduringtheperiodfromexpirationoftheperformance
                                           commitment period to expiration of the evaluated income expected period, SEG Group
                                           will compensatethelistedcompanytimelyandinfullamountaccordingtothefollowing
                                           compensation methods:
                                           1. SEGGrouphasmadecommitmentsfortheperformanceofthesubjectcompanywithin
                    ShenzhenSEG              three years after completion of major asset restructuring. Influence of the updating and
                    GroupCo.,    Other         restructuringprojecthasbeentakenintoaccountinthecommitments.              August3,   Long-term  Inprogress
                    Ltd.        commitment    2. The amount of compensation for the income that is lower than the expected income 2016
                                           during theperiodfromexpirationoftheperformancecommitmentperiodtoexpirationof
                                           the evaluatedincomeexpectedperiod=(thepredictedaccumulatedincometotheendof
                                           the report period - actual accumulated income to the end of the report period) - the
                                           compensated amount.
                                           3. The loss caused when the temporary buildings are required to be dismantled by
                                           governmental organs during the period from expiration of the performancecommitment
                                           period to expiration of the evaluated incomeexpected period = thedismantling cost and
                                           compensation amount related - (the accumulated total income to the time the buildings
                                           are dismantled- predicted accumulated income during the predication period). Note: the
                                           predicted income refers to the net value remained after the predicted total income from
                                           the newly added temporary buildings in the evaluation reports of the subject companies
                                           minuses the allocated investment cost during the operating period and the amount
                                           influenced by permanent rent termination predicted in the evaluation report. Shenzhen
                                           SEG should employ an audit agency with security practice qualification recognized by
                                           SEG Group to provide a formal audit report on the compensation methods for the
                                           property investment within the compensation scope of the report period within four
                                           months at the end of each accounting yearduring the compensation period. SEG Group
                                           should compensate in cash any property investment and compensation items within the
                                           compensation scope of the report period. Shenzhen SEG should calculate the payable
                                           compensation amount within 15 working days upon final specific review opinions
                                           provided by the audit agency, and send a written notice to SEG Group. Within 30
                                           working daysupon receiptofthewrittennoticefromShenzhen SEG,SEGGroupshould
                                           pay thecompensationincashinfullamount."
                                           "1. In case when, after the restructuring, the land/property use should be changed based
                                           on theactualoperatingdemandsofthesubjectcompanyorbecausethesubjectcompany
                                           is required by the relevant house property management organ or the land regulatory
                    ShenzhenSEG              department to change the land/propertyuse, SEG Group will assist the subject company
                    GroupCo.,    Other         infinishingtherelevantformalities.                                    August3,   Long-term  Inprogress
                               commitment    2.Incasewhenthesubjectcompanysuffersfromadministrativepenaltybyrelevantland 2016Ltd.
                                           and/or  house property management department because the actual use of the
                                           land/property is different from those recorded in the certificate, SEG Group will
                                           compensate the subject company for any expenditures and economic loss caused
                                           thereby."
                                           "1. Sincetheissuancedateofthiscommitmentletter,SEGGroupwillassistSegMakerin
                                           restoring for business purpose the part currently functioning as a parking garage on the          Withinfive
                                           first floorofthepodiumofSEGJingyuanBuildingwithinfiveyears.                       yearsfrom
                    ShenzhenSEG Other         2. If the restoration workcannotbe finished within the above mentionedperiod of time, August3,   thedateof
                    GroupCo.,    commitment    SEG Group agrees to process the subject assets as follows: (1) paying in cash the 2016      issueofthe  Inprogress
                    Ltd.                     evaluatedvalueofthe parkinggarageand the bank interest ofthe evaluatedvaluein the          commitment
                                           same period from the restructuring closing date to the expiration of this commitment          letter
                                           time; or(2)purchasingincashthefirstfloorofthepodiumofSEGJingyuanBuildingat
                                           a pricenolessthantheevaluatedvalueofthebuildingduringthisrestructuring."
                                           "1. If after the restructuring, Shen SEG is requested to make a supplementary payment
                    ShenzhenSEG              forlandtransferandpaytheoverduefineduetoinconsistencybetweentheactualuseand
                    GroupCo.,    Other         the registered use of the aboveproperty,the Companyundertakes to bear such expenses August3,   Long-term  Inprogress
                    Ltd.        commitment    infull.                                                       2016
                                           2. Incaseofbreachoftheforegoingcommitments,theCompanywillbearalllossesthus
                                           incurred toShenSEG."
                               Commitmenton  According to the ArticleFive of the Equity TransferAgreementsigned bythe Company
                               horizontal      with SEG Group when the Company was listed, SEG Group agreed that the Company
    Commitment madeat SGhroenuzphCeno.S,EG competition,    aSnEdGitGsrsouubpsidaitatrhieesNanadtioansaslocTiarateddemcoarmkpBanuireesauto;SusEeGthGereoiugphtatgrraedeedmtahraktstrheegiCstoemrepdabnyyJuly1,1996 Long-term  Inprogress
    the timeofinitial               relatedLtd.     used the aforesaid trademarks or similar signs as the Company's logo and used the
    public offeringsor              transaction,and  trademarks and signs during its operation; the Company need not pay any fee to SEG
    refinancing                   capitaloccupation Groupforusingtheaforesaidtrademarksorsigns.
                    ShenzhenSEG Commitmenton  As for the problem pointed out by Shenzhen Office of China Securities Regulatory September  Long-term  Inprogress
                    GroupCo.,    horizontal      Commission during on-site inspection in 2007 in the Company that the Company and 14,2007
                    Ltd.        competition,    SEG Group are competitive in the electronic business, the Company has received a
                               related        writtenCommitmentLetterfromSEGGrouponSeptember14,2007.Thecontentofthe
                               transaction,and  Commitment Letteris as follows: "Thecompetition in electronicbusiness between SEG
                               capitaloccupation GroupandShenzhenSEGCo.,Ltd.occursduetohistoricalreasonsandobjectivemarket
                                           development background. SEG Group hereby commits that, we will not separately
                                           operate businessessimilartothoseofShenzhenSEGinthesamecity."
        As100%ofthe
        equityof
        SegMakerthat
        holdsSEG
                                           The 6th interim meeting of the 5th Board of Directors held on January 26, 2011                   Communication
                               Commitmenton  deliberatedandadoptedtheProposalofSolvingtheHorizontalCompetitionbetweenthe          From      Marketwas
                    ShenzhenSEG horizontal      CompanyandItsControllingShareholder.Afterfriendlyconsultation,SEGGroupagreed          February1,  transferredto
                    GroupCo.,    competition,    to entrusttheCompanyto operateandmanagewithfullauthoritySEGCommunications January26,  2011to    theCompany,
                    Ltd.        related        Market under direct management of SEG Group. Therefore,the two parties have signed 2011      January31,  theCompanyis
                               transaction,and  the entrustment operation and management contract, and SEG Group will pay the          2017      nolonger
                               capitaloccupation CompanyRMB200,000Yuanasentrustmanagementexpenses.                                    commissioned
        tooperateSEG
        Communication
        Market,andhas
        fulfilledthis
        commitment.
    Commitment on     Notapplicable
    equity incentives
                    Somedirectors,
                    supervisors,
                    senior                   Somedirectors,supervisors,seniorexecutives,andmiddlemanagersofShenzhenSEG
                    executives,and Other         GroupCo.,Ltd.thatincreaseholdingsundertakesnottoreduceholding-sharesofthe    September  March26,
                    middle      commitment    Companyorcarryoutinsidertrading,tradingofsharesinthesensitiveperiod,or      26,2017   2019      Inprogress
                    managersof               short-termtradingaccordingtorelevantprovisionsintheperiodofincreaseinholdings,
                    ShenzhenSEG              withinthestatutoryperiodandforaperiodof12monthsaftercompletionoftheplan.
    Other commitments   GLtrdo.upCo.,
    made tothemedium
    and smallshareholders Directors,
    of theCompany     supervisors,
                    senior                   Directors,supervisors,seniorexecutives,middlemanagers,andmanagersoflevel-3
                    executives,                subsidiariesoftheCompanythatincreaseholdingsundertakesnottoreduce
                    middle      Other         holding-sharesoftheCompanyorcarryoutinsidertrading,tradingofsharesinthe     September  September  Inprogress
                    managers,and commitment    sensitiveperiod,orshort-termtradingaccordingtorelevantprovisionsintheperiodof   26,2017   26,2018
                    managersof               increaseinholdings,withinthestatutoryperiodandfor12monthsaftercompletionof
                    level-3                   theplan.
                    subsidiariesof
                    ShenzhenSEG
                    Co.,Ltd.that
                    increase
                    holdings
                                           Due toconfidenceinthefuturedevelopmentprospectoftheCompanyandrecognitionof
                    ShenzhenSEG Commitmenton  the Company's value, the holding shareholder of the Company, Shenzhen SEG Group
                    GroupCo.,    increasein      Co., Ltd. plans to increase holding-shares of the Company according to relevantNovember  November  Inprogress
                    Ltd.        holdings       provisionsoftheCSRCandShenzhenStockExchange,andundertakesnot toreducethe15,2017   15,2018
                                           newly-increased holding-sharesoftheCompanyintheperiodofincreaseinholdingsand
                                           for12 monthsafterincreaseinholdings.
    Whether commitments Yes
    were fulfilledontime
    
    
    2. The attainment of forecasts for the assets or projects of the Company which were profitable and the
    
    description of the reasons with the reporting period remaining in the forecasting period
    
    □ Applicable √ Not applicable
    
    IV. Non-operating Capital Occupation on the Listed Company by the Controlling
    
    Shareholders and Related Parties
    
    □ Applicable √ Not applicable
    
    No non-operating capital occupation on the listed company by controlling shareholders and related parties is
    
    involved in the reporting period.
    
    V. Explanations of the Board of Directors, the Board of Supervisors and Independent
    
    Directors (if any) to the "Non-standard Audit Report" made by the accounting firm in the
    
    reporting period
    
    □ Applicable √ Not applicable
    
    VI. Information on changes in accounting policies, accounting estimates and accounting
    
    methods compared with the financial reports of the last year
    
    √ Applicable □ Not applicable
    
    On May 10, 2017, the Ministry of Finance issued the Revised Accounting Standards for Business Enterprises No.
    
    16 — Government Subsidies (2017) (C. K. [2017] No. 15), which is implemented from June 12, 2017.
    
    The Accounting Standards for Business Enterprises No. 42 — Non-Current Assets and Disposal Groups Held for
    
    Sale and Termination of Business Operation specify the classification, measurement, and presentation of
    
    non-current assets and disposal groups held for sale and presentation of termination of business operation.
    
    VII. Information on retroactive restatements in corrections of major accounting errors in the
    
    reporting period
    
    □ Applicable √ Not applicable
    
    There is no retrospective restatement due to corrections on significant accounting errors in the reporting period.
    
    VIII. Information on changes in the scope of consolidation compared with the financial
    
    report of the last year
    
    √ Applicable □ Not applicable
    
    35 entities are included in the current consolidated financial statements, namely:
    
                 Companyname                 Typeof      Level     Proportionof     Proportionofvoting
                                            subsidiary             shareholding(%)       rights(%)
     ShenzhenSEGBaohuaEnterpriseDevelopment        Holding       I          66.58            66.58
     Co.,Ltd.                                 subsidiary
     ShenzhenMellowOrangeBusinessHotel            Holding       II         66.58            66.58
     ManagementCo.,Ltd                        subsidiary
                 Companyname                 Typeof      Level     Proportionof     Proportionofvoting
                                            subsidiary             shareholding(%)       rights(%)
     ShenzhenSEGIndustrialInvestmentCo.,Ltd.       Wholly-owned     I          100             100
                                            subsidiary
     ChangshaSEGDevelopmentCo.,Ltd.              Holding       I           46              51
                                            subsidiary
     ShenzhenSEGElectronicsMarketManagement     Share-controlled     I           70              70
     Co.,Ltd.                                 subsidiary
     ShenzhenSEGCreditCo.,Ltd.                   Holding       I           65              65
                                            subsidiary
     ShenzhenSEGNanjingElectronicsMarket         Wholly-owned     I           62              62
     ManagementCo.,Ltd.                        subsidiary
     Xi'anHairongSEGElectronicsMarketCo.,Ltd.       Holding       I           51              51
                                            subsidiary
     WujiangSEGElectronicsMarketCo.,Ltd.          suHbosliddiinagry I           51              51
     Shunde SEG Electronics Market Management Co.,   Wholly-owned     I          100             100
     Ltd.                                    subsidiary
     NanningSEGElectronicsMarketManagementCo.,   Wholly-owned     I          100             100
     Ltd.                                    subsidiary
     NantongSEGTimesPlazaDevelopmentCo.,Ltd.    Whsuobllsyi-doiawrnyedI          100             100
     YantaiSEGTimesPlazaDevelopmentCo.,Ltd.       suHbosliddiinagry I           90              90
     Nantong SEG Commercial Operation Management   Wholly-owned     I          100             100
     Co.,Ltd.                                 subsidiary
     SuzhouSEGDigitalPlazaManagementCo.,Ltd.     Whsuobllsyi-doiawrnyedI          100             100
     Xi'an Fengdong New Town SEG Times Plaza   Wholly-owned     I          100             100
     PropertiesCo.,Ltd.                          subsidiary
     SuzhouSEGIntelligentTechnologyCo.,Ltd.       Wholly-owned     I          100             100
                                            subsidiary
     ShenzhenSEGLongyanNewEnergyApplication       Holding       I           50              50
     andDevelopmentCo.,Ltd.                     subsidiary
     ShenzhenSEGInvestmentManagementCo.,Ltd.    Wholly-owned     I          100             100
                                            subsidiary
     ShenzhenSEGLongyanEnergyTechnologyCo.,       Holding       I           50              50
     Ltd.                                    subsidiary
                 Companyname                 Typeof      Level     Proportionof     Proportionofvoting
                                            subsidiary             shareholding(%)       rights(%)
     Shenzhen-ShantouCooperationZoneSEGLongyan   Wholly-owned     II          100             100
     EnergyTechnologyCo.,Ltd.                   subsidiary
     ShenzhenSEGLianzhongInternetTechnologyCo.,     Holding       I           55              55
     Ltd.                                    subsidiary
     ShenzhenSEGZhongtongTechnologyCo.,Ltd.        Holding       I           49              49
                                            subsidiary
     ShenzhenSegMakerCo.,Ltd.                 Wholly-owned     I          100             100
                                            subsidiary
     ShenzhenSEGRecreationEnterpriseDevelopment      Holding       I           55              55
     Co.,Ltd.                                 subsidiary
     ShenzhenSEGPropertyDevelopmentCo.,Ltd.      Wholly-owned     I          100             100
                                            subsidiary
     ShenzhenSEGRealEstateInvestmentCo.,Ltd.        Holding       I          79.02            79.02
                                            subsidiary
     HuizhouStarsRealEstateDevelopmentCo.,Ltd.       Holding       II          88              88
                                            subsidiary
     ShenzhenSEGPropertyManagementCo.,Ltd.        Holding       II          45              45
                                            subsidiary
     ShenzhenSEGNewUrbanConstruction             Holding       II         72.05            72.05
     DevelopmentCo.,Ltd.                        subsidiary
     ShenzhenSEGNewUrbanCommercialOperation    Wholly-owned     III          100             100
     Co.,Ltd.                                 subsidiary
     BeijingSEGPropertyDevelopmentCo.,Ltd.          Holding       II          50              50
                                            subsidiary
     Xi'anSEGKanghongRealEstateCo.,Ltd.           Holding       II          55              55
                                            subsidiary
     Shenzhen HonggeCulturalDevelopmentCo.,Ltd.    Wholly-owned     II          100             100
                                            subsidiary
    
    
    For reasons for the difference between the proportion of shareholding and the proportion of voting rights and the
    
    basis for control of the investee with half or less than half of the voting rights, see "(I) Equity in subsidiaries of
    
    Note VIII Equity in other entities".
    
    14 new entities are incorporated in and two entities are removed from the scope of the consolidated financial
    
    statements in the current period, including:
    
    1. Subsidiaries, special purpose entities, and business entities that gain control by way of commissioned
    
    management or renting newly incorporated in the consolidation scope in the current period
    
                             Name                                    Reasonforchange
     Shenzhen-Shantou Cooperation Zone SEG Longyan Energy Technology Co.,  Newlyestablished
     Ltd.
     ShenzhenSEGLianzhongInternetTechnologyCo.,Ltd.                 Newlyestablished
     ShenzhenSEGZhongtongTechnologyCo.,Ltd.                       Newlyestablished
     ShenzhenSegMakerCo.,Ltd.                                   Businesscombinationundercommoncontrol
     ShenzhenSEGRecreationEnterpriseDevelopmentCo.,Ltd.              Businesscombinationundercommoncontrol
     ShenzhenSEGPropertyDevelopmentCo.,Ltd.                       Businesscombinationundercommoncontrol
     ShenzhenSEGRealEstateInvestmentCo.,Ltd.                       Businesscombinationundercommoncontrol
     HuizhouStarsRealEstateDevelopmentCo.,Ltd.                      Businesscombinationundercommoncontrol
     ShenzhenSEGPropertyManagementCo.,Ltd.                       Businesscombinationundercommoncontrol
     ShenzhenSEGNewUrbanConstructionDevelopmentCo.,Ltd.            Businesscombinationundercommoncontrol
     ShenzhenSEGNewUrbanCommercialOperationCo.,Ltd.               Businesscombinationundercommoncontrol
     BeijingSEGPropertyDevelopmentCo.,Ltd.                         Businesscombinationundercommoncontrol
     Xi'anSEGKanghongRealEstateCo.,Ltd.                          Businesscombinationundercommoncontrol
     Shenzhen HonggeCulturalDevelopmentCo.,Ltd.                     Businesscombinationundercommoncontrol
    
    
    2. Subsidiaries, special purpose entities, and business entities that lose control by way of commissioning
    
    management or leasing removed from the consolidation scope in the current period
    
                    Name                                     Reasonforchange
    Suzhou SEGElectronicsMarketManagementCo.,  Transferofthemanagementright
    Ltd.
    WuxiSEGElectronicsMarketCo.,Ltd.         Transferofalltheequity
    
    
    IX. Engagement and dismissal of the accounting firm
    
    Engaged accounting firm
    
    Name ofaccountingfirmengagedfromChina     DaHuaCertifiedPublicAccountants(SpecialGeneralPartnership)
    Remuneration fortheaccountingfirmengagedfrom 105
    China (RMB10,000)
    Duration ofauditservicesofferedbyaccounting    6
    firm engagedfromChina
    Name ofcertifiedpublicaccountsfromthe       ZhangZhaochengandLiuGuoping
    accounting firmengagedfromChina
    Duration ofauditservicesofferedbyCPAsof     3yearsbyZhangZhaochengand1yearbyLiuGuoping
    accounting firmengagedfromChina
    Name ofaccountingfirmengagedfromoutside    Notapplicable
    China (ifany)
    Remuneration fortheoverseasaccountingfirm    0
    (RMB 10,000)
    Consecutive yearsofserviceofferedbytheoverseas Notapplicable
    accounting firm(ifany)
    Name ofcertifiedpublicaccountsfromtheoverseas Notapplicable
    accounting firm
    
    
    Is another accounting firm engaged in current period?
    
    □ Yes √ No
    
    Engagement of internal control audit accounting firm, financial adviser or sponsor
    
    □ Applicable √ Not applicable
    
    X. Information on Listing Suspension or Abortion after Disclosure of Annual Report
    
    □ Applicable √ Not applicable
    
    XI. Bankruptcy and Reorganization
    
    □ Applicable √ Not applicable
    
    No bankruptcy and reorganization matter is involved in the reporting period.
    
    XII. Major lawsuits and arbitrations
    
    √ Applicable □ Not applicable
    
                                           Amount        Estimated                 Judgment     Judgment
    Basic informationaboutlawsuitsandarbitrations       (RMB:10,000) incluiarrbeidlitoiersnotProgress         result    and execution    Disclosuredate    Disclosureindex
                                                                                impact
                                                                                Firstinstance
                                                                                judgment:
                                                                                NanningSEG
                                                                                shallpaythe
                                                                                liquidated
                                                                                damagesof
                                                                                RMB
                                                                                666,666.66and
                                                                                paythecase   Itisbeing
                                                                                acceptancefee executed.As
                                                                                ofRMB5,416. ofApril4,
    Case number:2016G.0102M.C.No.3653                     Yes.The                    Second      Nanning                  http://www.cninfo.com.cn
    Dispute overtheleasecontractarosebetweenNanning              estimated    Thesecondinstance  instance      Xingning                 Announcementof
    Haiqi RealEstateDevelopmentCo.,Ltd.andShenzhen         1026.3 liabilityof    wasdecided.The   judgment:    Courtblocked September26,2016 ShenzhenSEGCo.,Ltd.
    SEG Co.,Ltd.                                         RMB       Companyhasapplied NanningSEG  twoaccounts               onReceiptofCourt
                                                      666,700.00 is  forretrial.        shallpaythe   ofthe                    SummonsandtheCivil
                                                      accrued.                    liquidated    Companyand              Complaint
                                                                                damagesof   deducted
                                                                                RMB8      RMB
                                                                                million,paythe 8,476,600
                                                                                attorneyfeeof
                                                                                RMB263,000
                                                                                toNanning
                                                                                Haiqi,andpay
                                                                                thecase
                                                                                acceptancefee
                                                                                ofRMB
                                                                                134,238.
    Case number:2016G.0102M.C.No.3654                                Thefirstinstancewas b1e.tTwheeecnotnhteract                   Ahtntpn:o//uwncwewm.ecnntinoffo.com.cn
    Dispute overthepropertyservicecontractbetween                           decided.The246.98No.                       partiesshallbe Notexecuted June2,2017
    Nanning YuanpengPropertyServiceCo.,Ltd.and                            counterpartyhas                                       ShenzhenSEGCo.,Ltd.terminated.
    Shenzhen SEGCo.,Ltd.                                             appealed.         2.Allother                           LonawthseuiPtrwoigthreNssaonfntihneg
                                                                                claimsof                            YuanpengProperty
                                                                                Yuanpengshall                        ServiceCo.,Ltd.
                                                                                bedismissed.
                                                                                NanningSEG
                                                      Yes. The                    shallpaythe
    2016 G.0102M.C.No.4612                               estimated                   decorationloss TheCompany              http://www.cninfo.com.cn
    Nanning HaiqiRealEstateDevelopmentCo.,Ltd.sued              liabilityof    Thesecondinstance  ofRMB     haspaidthe104.19August28,2017
                                                                 againstNanningSEGforcompensationforthedecoration            RMB       wasdecided.      394,964.8and  executed                  oSefmShi-eAnnzhneunalSREeGpoCrot.2,L01td7.
    loss.                                               417,964.8is                 paythe      money.
                                                      accrued.                    attorneyfeeof
                                                                                RMB23,000.
                                                                 Astheparties                                        http://www.cninfo.com.cn
                                                                 reachedasettlement,                                    Announcementof
    (2016) J.Z.A.Zi.No.2294                                           thecounterparty                                       SohnetnhzehPenroSgEreGssCoof.,thLetd.
    Arbitration casebetweenShenzhenSEGCo.,Ltd.and                         compensatedforour            Not2460No                        Notapplicable           June2,2017
    Zongheng InternationalElectronicExpoCity(Suzhou)                         lossesofRMB                applicable                 wLaitwhsZuoitnagnhdenAgrbitration
    Co., Ltd.                                                       3,500,000,andwe                                     InternationalElectronic
                                                                 canceledthe
                                                                 arbitration.                                          LEtxdp.oCity(Suzhou)Co.,
        http://www.cninfo.com.cn
                                                                 Thepartiesreacheda                                   Announcementof
    2016 S.0505M.C.No.5176                                         settlement.The                                       SohnetnhzehPenroSgEreGssCoof.,thLetd.
    Loan disputebetweenSuzhouSEGElectronicsMarket                         counterpartyrepaid             Not1900.08No                        Notapplicable           June2,2017     LawsuitandArbitration
    Management Co.,Ltd.andZonghengInternational                           theloaninterestto              applicable                 withZongheng
    Electronic ExpoCity(Suzhou)Co.,Ltd.                                  us.Wethecanceled
                                                                 arbitration.                                          EInxtpeornCatiitoyn(aSluEzhleocut)roCnoi.c,
        Ltd.
                                                                 Thepropertieshave  Ourclaimsare                         http://www.cninfo.com.cn
    (2017) Y.0304M.C.No.5092                                        beenpreserved.The  substantially                          Announcementof
    Dispute overthepurchaseandsalescontractamong                           firstinstancewas    supported,    Not839.41No                                            January5,2018   ShenzhenSEGCo.,Ltd.
    Shenzhen WonderIndustryCo.,Ltd.,LiuGuiyunandLiu                       decided.The      exceptforthe  applicable                 ontheProgressofthe
    Yu                                                           counterpartyhas    claimforthe                          LawsuitInvolving
                                                                 appealed.         overduefine.                          HoldingSubsidiaries
                                                                 Thepropertieshave  Ourclaimsare                         http://www.cninfo.com.cn
    (2017) Y.0304M.C.No.5088                                        beenpreserved.The  substantially                          Announcementof
    Dispute overthepurchaseandsalescontractamong                           firstinstancewas    supported,    Not1480.57No                                            January5,2018   ShenzhenSEGCo.,Ltd.
    Shenzhen YixinZhongtianTechnologyCo.,Ltd.,Zhe                         decided.The      exceptforthe  applicable                 ontheProgressofthe
    Shaojun, andZhaoXiaoyan                                           counterpartyhas    claimforthe                          LawsuitInvolving
                                                                 appealed.         overduefine.                          HoldingSubsidiaries
    (2017) Y.0304M.C.No.7976
    SEG IndustrialsuedagainstShenzhenComnetTechnology                      Theproperties has                                     http://www.cninfo.com.cn
    Co., Ltd.,XiaoQingshan,ZhouRonghua,AnhuaMeishan                       beenheardandhas             Not515.54No                        Notapplicable           August28,2017   Semi-AnnualReport2017
    Small LoanCo.,Ltd.,andShenzhenBaiyideTechnology                       notyetbeen                  applicable                 ofShenzhenSEGCo.,Ltd.
    Co., Ltd.foradisputeoverthepurchaseandsales                            adjudicated
    contract.
    (2017) Y.0304M.C.No.7977
    SEG IndustrialsuedagainstShenzhenRunnengDigital                         TTheproperties has                                   http://www.cninfo.com.cn
    TechnologyCo.,Ltd.,XiaoQingshan,ZhouRonghua,                         beenheardandhas             Not1534.5No                        Notapplicable           August28,2017   Semi-AnnualReport2017
    Anhua MeishanSmallLoanCo.,Ltd.,andShenzhen                          notyetbeen                  applicable                 ofShenzhenSEGCo.,Ltd.
    Baiyide TechnologyCo.,Ltd.foradisputeoverthe                           adjudicated
    purchase andsalescontract.
    Case number:(2016)J.0102.M.C.No.21435                                             After                               http://www.cninfo.com.cn
    Plaintiff: BeijingSEGPropertyDevelopmentCo.,Ltd.        2004.74 No         Thecasehasbeen   mediationby  Executed    August28,2017
    Defendant: BeijingFuraoRealEstateDevelopmentCo.,                        settled.          thecourt,the                          SoefmShi-eAnnzhneunalSREeGpoCrot.2,L01td7.
    Ltd.                                                                         casehasended.
    
    
    XIII. Punishment and Rectification Issues
    
    □ Applicable √ Not applicable
    
    No punishment and rectification is involved in the reporting period.
    
    XIV. Integrity of the Company and its Controlling Shareholders and Actual Controllers
    
    □ Applicable √ Not applicable
    
    XV. Implementation of Equity Incentive Plan, Employee Shareholding Plan or Other
    
    Employee Incentives
    
    □ Applicable √ Not applicable
    
    No stock incentive plan and implementation is involved in the reporting period.
    
    XVI. Major Connected Transactions
    
    1. Transactions related to routine operation
    
    √ Applicable □ Not applicable
    
                                             Pricing           Amountof           Approved Exceeding          Available
      Partyof           Transaction    Contentof    principleof  Priceof  connected Percentagein transaction   the    Clearing   similar  Disclosure
     connected Association            connected             connected transaction   similarconnectedamount   approved                            Disclosureindex
     transaction            type      transaction    transaction transaction  (RMB   transactions   (RMB   quotaor    form    market    date
                                                              10,000)             10,000)    not             price
                              1-416, Building
                              101, SEG
                              Industrial Zone;
                              1F, OpticalFiber
                              Building;
    Shenzhen  Controlling Renting the 6F, Plant No. 2; Determined 40.57                                       According         April18,
    SEG Group shareholder property   403,     Qingyi bythe     Yuan/m2      190.20      0.18% 200      not      to    the-
    Co., Ltd.                    Building,       market                                               agreement          2017
                              Nanyuan Road; 48
                              houses in Qing'an
                              Building,    No.
                              1705,   covering
                              3,907.13 m2
                                                             Amountof           Approved Exceeding          Available
      Partyof           Transaction    Contentof    priPnrcicipinlegofPriceof  connected Percentagein transaction   the    Clearing   similar  Disclosure
     connected Association            connected             connected transaction   similarconnectedamount   approved                            Disclosureindex
     transaction            type      transaction    transaction transaction  (RMB   transactions   (RMB   quotaor    form    market    date
                                                              10,000)             10,000)    not             price
                              1F,       SEG
                              Recreation
                              Building; 8F,SEG
                              Industrial
                              Building;   West
                              Zone, 8F,Building
                              2, SEG Industrial
                              Building;    3F,
                              Building    101,
    Shenzhen                    ShangbuIndustrial Determined                                            According
    SEG Group Controlling Renting the Zone; Room 506,          67.53        783.73      0.74% 800      No      to    the-
    Co., Ltd.   shareholder property   Building    303,bythe     Yuan/m2                                     agreement
                              Pengji   Shangbu market
                              Bachelor
                              Apartment;    61
                              houses  including
                              the   connecting
                              corridor  in  4F,                                                                    April18,
                              Tower A& Tower                                                                    2017
                              B, 101 Zhenxing
                              Road,   covering
                              9,672.12 m2.
    Shenzhen           Offering   Offering property Determined                                            According
    SEG Group Cshoanretrhoolllidnegrpmraonpaegrteymentmanagement     bythe     1R1M4,B500   88.71      0.02% 80       No      to    the-
    Co., Ltd.                    services        market                                               agreementservices            http://www.cninfo.com.cn
    Shenzhen  Subsidiary  Offering   Offering property Determined                                            According                 Announcementof
    SEG Talent ofits     property   management              RMB         31.5      0.02% 222      No      to    the-               ShenzhenSEGCo.,Ltd.
    Training   controlling  management services        bythe     102,400                                     agreement
    Center    shareholder services                 market                                                                       on2017ExpectedDaily
    Shenzhen  Subsidiary  Offering                                                                                           OperatingConnected
    SEG High  ofits     property   Offering property Determined RMB                                       According                 Transactions
    Technology controlling  management management     bythe     91,600        18.31      0.01% 200      No      to    the-
    Investment shareholder services    services        market                                               agreement
    Co., Ltd.
                                                             Amountof           Approved Exceeding          Available
      Partyof           Transaction    Contentof    priPnrcicipinlegofPriceof  connected Percentagein transaction   the    Clearing   similar  Disclosure
     connected Association    type      connected    connected  connected transaction   similar    amount   approved                            Disclosureindex
     transaction                     transaction    transaction transaction  (RMB   transactions   (RMB   quotaor    form    market    date
                                                              10,000)             10,000)    not             price
                     Entrusting
                     the       Entrusting    the
    Shenzhen           management management   of Determined                                            According
    SEG Group Controlling of     the the  underground          RMB         14.34      0.01% 30       No      to    the-
    Co., Ltd.   shareholder punardkeirnggroulnodtparkinglotofSEG mbyarthkeet 68,800                                      agreement
                     of    SEG Plaza
                     Plaza
    Shenzhen  Controlling Leasing the 61F  &  62F  of Determined RMB                                       According
    SEG Group shareholder property   SEGPlaza      bythe     786,900      157.38      0.13% 260      No      to    the-
    Co., Ltd.                                 market                                               agreement
    Total                                       --        --      1284.17     --                --       --       --       --           --
    Details ofreturnsonsoldgoodsoflargeamount       Notapplicable
    Actual implementationofroutineconnectedtransactions
    to occurinthecurrentperiodwithtotalamountestimated Notapplicable
    by categoryinthereportingperiod(ifany)
    Reasons foragreatdifference(ifapplicable)betweenthe  Notapplicable
    transaction priceandthemarketreferenceprice
    
    
    2. Connected transactions arising from asset or equity sales and acquisition
    
    √ Applicable □ Not applicable
    
                                                         Book value   Estimated
      Party of               Typeof     Contentof     Pricing      ofthe    valueofthe    Priceof               Transaction
      connected   Association   connected    connected    principleof   transferred   transferred    transfer    Clearingform   profitor    Disclosure
     transaction              transaction    transaction    connected     assets      assets      (RMB                loss(RMB     date        Disclosureindex
                                               transaction     (RMB      (RMB      10,000)                 10,000)
                                                          10,000)      10,000)
     Shenzhen    Controlling   Stock      55% of the  Fairmarket                                 Issuanceof               February4,  http://www.cninfo.com.cn
     SEG Group  shareholder   purchase    equity    of  value        87,707.86   515,714.72   515,714.72  sharesand            0       2016  Proposal  of  Shenzhen
     Co.,Ltd.                         SEG                                                 paymentfor                        SEG Group Co., Ltd. for
                                   Recreation,                                             considerations                      Share Issuance and Cash
                                   100%  of the                                                                           Payment   to   Acquire
                                   equity    of                                                                           Assets and Raise Funds
                                   SEG Property                                                                           &         Connected
                                   Development,                                                                           Transactions
                                   100%  of the
                                   equity    of
                                   SegMaker,
                                   and  79.02%
                                   of the equity
                                   of SEG Real
                                   Estate
     Reasonforagreatdifference(ifany)betweenthetransfer    Thetransferpriceisconsistentwiththeestimatedvalue.Differencebetweenthetransferpriceandbookvalueiscausedbyappreciation
     priceandbookvalueorestimatedvalue                inappraisal.
                                               1.Inthereportingperiod,theoperatingincomeofSEGRealEstateisRMB122,2751,800,andthenetprofitattributabletotheparent
                                               companyisRMB120,198,700.
                                               2.Inthereportingperiod,theoperatingincomeofSEGRecreationisRMB53,247,100,andthenetprofitattributabletotheparent
     Impactontheoperatingresultandfinancialconditionofthe  companyisRMB24,428,400.
     Company                                   3.Inthereportingperiod,theoperatingincomeofSEGPropertyisRMB59,405,600,andthenetprofitattributabletotheparent
                                               companyisRMB13,320,000.
                                               4.Inthereportingperiod,theoperatingincomeofSegMakerisRMB134,667,200,andthenetprofitattributabletotheparentcompany
                                               isRMB36,856,500.
     Fulfillmentofagreedperformance(ifany)              In the reporting period, the total operating income of the four target companies is RMB 1,470,071,700, and the total net profit
                                               attributabletotheparentcompanyisRMB194,803,600.
    
    
    3. Connected transactions arising from joint external investment
    
    □ Applicable √ Not applicable
    
    There is no connected transaction arising from joint external investment in the reporting period.
    
    4. Claim and debt with related parties
    
    √ Applicable □ Not applicable
    
    Debt payable to related parties
    
                                             Increased  Recovered            Interestin
                                   Opening    amountin   amountin               the      Closing
       Related                        balance      the       the      Interest    reporting    balance
        party    Association    Cause     (RMB    reppeorriotidngreppeorriotidng rate      period      (RMB
                                    10,000)     (RMB     (RMB               (RMB     10,000)
                                             10,000)     10,000)              10,000)
                                                               8%,0%;
                                                               Thereisno
                                                               interest on
                                                               the  stock
                                                               exchange
                          Considera                              price, and
     Shenzhen    Controlling   tionfor                                the  other
     SEG Group  shareholder  stock      17,795.14   69,104.79   15,069.60  Seger         576.25    71,830.33
     Co.,Ltd.               purchase                                Group's
                                                               funding
                                                               support
                                                               rate   for
                                                               Seger Real
                                                               Estate  is
                                                               8%
    
    
    5. Other Important Transactions
    
    □ Applicable √ Not applicable
    
    XVII. Important contracts and implementation
    
    1. Trusteeship, Contracting, and Leasing Issues
    
    (1) Trusteeship Issues
    
    □ Applicable √ Not applicable
    
    No trusteeship issue is involved in the reporting period.
    
    (2) Contracting Issues
    
    □ Applicable √ Not applicable
    
    No contracting issue is involved in the reporting period.
    
    (3) Leasing Issues
    
    □ Applicable √ Not applicable
    
    No leasing issue is involved in the reporting period.
    
    2. Major guarantees
    
    √ Applicable □ Not applicable
    
    (1) Guarantee
    
    Unit: ten thousand yuan
    
                ExternalguaranteeoftheCompanyanditssubsidiaries(excludingguaranteeforitssubsidiaries)
                     Disclosur          Actualdateof                                      Guaran
                     edateof            occurrence     Actual                              teefor
      Nameofguarantee   notices   Guarante     (dateof     guarantee   Guarantee   Guarantee   Fulfille    a
          object       relatedto   equota    signingthe     amount      type      period    dornot  related
                     guarantee           agreement)                                        party
                      quota                                                            ornot
     Mortgageguarantee                                         Joint
     clientsofChina     May26,     26000      2017.7.6   21,000.00  liability    oneyear    No     No
     CITICBank,SEG    2017                                   guarantee
     NewCityBranch
     Housingguarantee                                         Joint
     clientsofChina                                           liability    Three
     ConstructionBank,             45,000      2015.5.5    4,561.82  guarantee   years      yes     No
     HuizhouStars
     Branch
     Mortgageguarantee                                         Joint
     clientsofChina               30,000       2016.5.6   19,216.50  liability    tenyears    No     No
     CITICBank,SEG                                          guarantee
     NewCityBranch
     Clientspurchasing                                          Joint
     theSEGNewCity                                          liability
     houseproperties              50,000       2016.5.6       0.00  guarantee   oneyear    No     No
     (AgriculturalBank
     ofChina)
     Clientspurchasing                                          Joint
     theSEGNewCity                                          liability
     houseproperties                                           guarantee
     (Bankof                   20,000       2016.7.4    1,582.00           threeyears  No     No
     Agricultureand
     Commerceof
     China)
     Clientspurchasing                                          Joint
     theSEGNewCity                                          liability
     houseproperties              50,000       2016.5.6   11,802.00  guarantee   tenyears    No     No
     (ChinaMerchants
     Bank)
     Clientspurchasing                                          Joint
     theSEGNewCity             30,000       2016.5.6   15,609.00  liability    tenyears    No     No
     houseproperties                                           guarantee
     (BankofChina)
     Clientspurchasing                                            Joint
     theSEGNewCity                                           liability
     houseproperties                          2017.2.7     930.00   guarantee  fiveyears   Yes     No
     (ChinaConstruction
     Bank)
     Totalamountofapproved                           Totalamountofactually
     externalguaranteequotainthe               26,930.00  occurredexternal                       74,701.32
     reportingperiod(A1)                              guaranteeinthereporting
                                                 period (A2)
     Totalamountofapproved                           Totalamountofactual
     externalguaranteequotabythe              201,000.00  externalguarantee                      74,701.32
     endofthereportingperiod(A3)                       balancebytheendofthe
                                                 reporting period(A4)
                                 GuaranteeoftheCompanyforitssubsidiaries
                     Disclosur          Actualdateof                                      Guaran
                     edateof            occurrence     Actual                       Comple  teedfor
      Nameofguarantee   notices   Guarante     (dateof     guarantee   Guarantee   Guarantee   tedor     a
          object       relatedto   equota    signingthe     amount      type      period     not    related
                     guarantee           agreement)                                        party
                      quota                                                            ornot
     Totalamountofapproved                           Totalamountofactual
     guaranteequotaforits                             guaranteeincurredforits
     subsidiariesinthereporting                          subsidiariesinthe
     period(B1)                                     reportingperiod(B2)
     Totalamountofapproved                           Totalamountofactual
     guaranteequotaforits                             guaranteebalanceforits
     subsidiariesbytheendofthe                         subsidiariesbytheendof
     reportingperiod(B3)                              thereportingperiod(B4)
                                     Guarantee betweensubsidiaries
                     Disclosur          Actualdateof                                      Guaran
                     edateof            occurrence     Actual                       Comple  teedfor
      Nameofguarantee   notices   Guarante     (dateof     guarantee   Guarantee   Guarantee   tedor     a
          object       relatedto   equota    signingthe     amount      type      period     not    related
                     guarantee           agreement)                                       partyor
                      quota                                                             not
     ShenzhenSEGNew                                        Joint
     UrbanConstruction             50000     2015.10.30     50000  liability    Twoyears   Yes     Yes
     DevelopmentCo.,                                          guarantee
     Ltd.
     Totalamountofapproved                           Totalamountofactual
     guaranteequotaforits                           0  guaranteeincurredforits                  50,000.00
     subsidiariesinthereporting                          subsidiariesinthe
     period(C1)                                     reportingperiod(C2)
     Totalamountofapproved                           Totalamountofactual
     guaranteequotaforits                     50,000.00  guaranteebalanceforits                  50,000.00
     subsidiariesbytheendofthe                         subsidiariesbytheendof
     reportingperiod(C3)                              thereportingperiod(C4)
                       TotalguaranteeamountoftheCompany(sumoftheforegoingthreeitems)
     Totalamountofapproved                           Totalamountofactual
     guaranteequotainthereporting               26,930.00  guaranteeincurredinthe                 124,701.32
     period(A1+B1+C1)                               reportingperiod
                                                 (A2+B2+C2)
     Totalamountofapproved                           Totalamountofactual
     guaranteequotabytheendofthe             251,000.00  guaranteebalancebythe                 124,701.32
     reportingperiod(A3+B3+C3)                        endofthereporting
                                                 period (A4+B4+C4)
     Percentageofthetotalactualguaranteeamount(A4+B4+C4)in                                      65.04%
     theCompany'snetassets
     Including:
     Guaranteebalanceforshareholders,actualcontrollers,and                                              0
     otherrelatedparties(D)
     Debtguaranteebalancedirectlyorindirectlyforguarantee                                              0
     objectswithanasset-liabilityratiohigherthan70%(E)
     Amountofthetotalguaranteeamountminus50%ofnetassets                                     28,839.90
     (F)
     Sumoftheforegoingthreeguaranteeitems(D+E+F)
     Notetoguaranteenotyetduewithactualorpotentialguarantee
     responsibilityinthereportingperiod(ifany)
     Notetoexternalguaranteeagainsttheprescribedprocedure(if
     any)
    
    
    (2) Illegal external guarantee
    
    □ Applicable √ Not applicable
    
    The Company has no illegal external guarantee in the reporting period.
    
    3. Information on cash asset management entrusted to others
    
    (1) Entrusted financing
    
    √ Applicable □ Not applicable
    
    Information on entrusted financing in the reporting period
    
    Unit: ten thousand yuan
    
                        Source offund    Amountofentrusted                    Overdueamount
           Type         underentrusted        financing      Balancenotyetdue     unrecovered
                          financing
         Bankfinancial  Self-ownedfund            247,524.00          43,021.00                0
              product
     Total                                      247,524.00          43,021.00                0
    
    
    Information on risky entrusted financing with a significant amount or featuring low security, poor liquidity, and
    
    no capital guarantee
    
    Unit: ten thousand yuan
    
                                                                                                     Actual   Actual                    Entrust
                                                                                                     loss and  return    Accrued           ed      Summa
                Type                                                  Fund  Remuneratio   Referenc  Expecte  gain     of gains  provision  Through   financi   ry  and
     Name    of  of     Producttype       Amount   Fund                         n                                 and              legal            related
     trustee       truste                          source  Startdate  Enddate   eusag  confirmation   eyiealndnuald(ifaynieyl)dianmoutnhtelosses    simpairmfoerprocedur   inngpltahnequery
                e                                                          method                      reportin  in  the  nt(ifany)  esornot   future   index
                                                                                                     g period  reportin                   ornot   (ifany)
        gperiod
     Industrial     Bank   Jinxueqiu 2015 1st  2300            2016.11.  2017.2.3        Floating      4.10%           9.82     9.82             Yes      Yes
     Bank              No.3301C                       28                    income
     Industrial     Bank   Jinxueqiu 2015 1st  10000           2016.12.  2017.1.10       Floating      4.10%           32.58    32.58            Yes      Yes
     Bank              No.3301B                       12                    income
     China  Citic  Bank   Interbankdeposit    1000            2016.12.  2017.1.3        Floating      3.40%           0.47     0.47             Yes      Yes
     Bank                                            29                    income
     Shanghai
     Pudong      Bank   Tiantianli  No.  1  8300            2017.4.7  2017.5.5        Floating      3.05%           19.01    19.01            Yes      Yes
     Development        2301147031                                            income
     Bank
     Shanghai
     Pudong      Bank   Yuetianli         3000            2017.4.1  2017.5.11       Floating      4.40%           10.85    10.85            Yes      Yes
     Development        2301137335                      0                     income
     Bank
     Shanghai
     Pudong      Bank   Yuetianli         5000            2017.6.2  2017.7.21       Floating      5.15%           22.58    22.58            Yes      Yes
     Development        2301137335                      2                     income
     Bank
     Shanghai           Fixed holding term
     Pudong      Bank   of  the  Company  4000            2017.6.2  2017.7.27       Fixedincome  4.00%           15.55    15.55            Yes      Yes
     Development        JG901                          2
     Bank
     Shanghai
     Pudong      Bank   Yuetianli         8400            2017.9.2  2017.10.2       Floating      5.00%           34.52    34.52            Yes      Yes
     Development        2301137335                      6       7             income
     Bank
     Shanghai
     Pudong      Bank   Yuetianli         10000           2017.12.  2018.1.26       Floating                                             Yes      Yes
     Development        2301137335                      27                    income
     Bank
     Industrial and  Bank   ICBC    financial  3000            2016.10.  2017.1.16       Floating      3.90%                                   Yes      Yes
     Commercial         win-win and profit                 15                    income                      29.81    29.81
     Bank     of        increase
     China             SZWL1550
     Industrial and        ICBC    financial
     Commercial   Bank   win-win and profit  1000            2016.12.  2017.1.16       Floating      3.70%                                   Yes      Yes
     Bank     of        increase                         6                     income                      4.16     4.16
     China             SZWL1560
     Industrial and        ICBC    financial
     Commercial   Bank   win-win and profit  2000            2017.1.4  2017.2.14       Floating      3.70%                                   Yes      Yes
     Bank     of        increase                                               income                      8.31     8.31
     China             SZWL1550
     Industrial and        ICBC    financial
     Commercial   Bank   win-win and profit  2000            2017.1.4  2017.4.7        Floating      3.90%                                   Yes      Yes
     Bank     of        increase                                               income                      19.87    19.87
     China             SZWL1560
     Industrial and        ICBC    financial
     Commercial   Bank   win-win and profit  3000            2017.1.1  2017.4.20       Floating      3.90%                                   Yes      Yes
     Bank     of        increase                         7                     income                      29.81    29.81
     China             SZWL1560
     Industrial and        ICBC    financial
     Commercial   Bank   win-win and profit  2000            2017.2.1  2017.12.2       Floating      3.50%                                   Yes      Yes
     Bank     of        increaseSZDL1301                 5       6             income                      60.03    60.03
     China
     Industrial and        ICBC    financial
     Commercial   Bank   win-win and profit  1000            2017.1.1  2017.3.1        Floating      3.70%                                   Yes      Yes
     Bank     of        increase                         9                     income                      4.16     4.16
     China             SZWL1550
     Industrial and        ICBC    financial
     Commercial   Bank   win-win and profit  1000            2017.3.7  2017.4.17       Floating      3.70%                                   Yes      Yes
     Bank     of        increase                                               income                      4.16     4.16
     China             SZWL1550
     Industrial and        ICBC    financial
     Commercial   Bank   win-win and profit  2000            2017.4.1  2017.7.12       Floating      4.20%                                   Yes      Yes
     Bank     of        increase                         0                     income                      21.40    21.40
     China             SZWL1560
     Industrial and        ICBC    financial
     Commercial   Bank   win-win and profit  3000            2017.4.2  2017.7.27       Floating      4.20%                                   Yes      Yes
     Bank     of        increase                         5                     income                      32.10    32.10
     China             SZWL1560
     Industrial and        ICBC    financial                 2017.4.2                FloatingBank1000                    2017.6.5                   4.00%                                   Yes      Yes
     Commercial         win-win and profit                 5                     income                      4.49     4.49
     Bank     of        increase
     China             SZWL1550
     Industrial and        ICBC    financial
     Commercial   Bank   win-win and profit  1000            2017.6.5  2017.7.16       Floating      4.20%                                   Yes      Yes
     Bank     of        increase                                               income                      4.72     4.72
     China             SZWL1550
     Industrial and        ICBC    financial
     Commercial   Bank   win-win and profit  2000            2017.7.1  2017.10.1       Floating      4.40%                                   Yes      Yes
     Bank     of        increase                         5       6             income                      22.42    22.42
     China             SZWL1560
     Industrial and        ICBC    financial
     Commercial   Bank   win-win and profit  1000            2017.7.2  2017.9.4        Floating      4.20%                                   Yes      Yes
     Bank     of        increase                         5                     income                      4.72     4.72
     China             SZWL1550
     Industrial and        ICBC    financial
     Commercial   Bank   win-win and profit  3000            2017.8.2  2017.11.3       Floating      4.40%                                   Yes      Yes
     Bank     of        increase                                               income                      33.63    33.63
     China             SZWL1560
     Industrial and        ICBC    financial
     Commercial   Bank   win-win and profit  1000            2017.9.2  2017.11.7       Floating      4.40%                                   Yes      Yes
     Bank     of        increase                         7                     income                      4.94     4.94
     China             SZWL1550
     Industrial and        ICBC    financial
     Commercial   Bank   win-win and profit  2000            2017.10.  2018.1.18       Floating      4.70%                                   Yes      Yes
     Bank     of        increase                         17                    income                      -       -
     China             SZWL1560
     Industrial and        ICBC    financial
     Commercial   Bank   win-win and profit  3000            2017.11.  2018.2.3        Floating      4.70%                                   Yes      Yes
     Bank     of        increase                         3                     income                      -       -
     China             SZWL1561
     Industrial and        ICBC    financial
     Commercial   Bank   win-win and profit  1000            2017.11.  2017.12.2       Floating      4.40%                                   Yes      Yes
     Bank     of        increase                         10       1             income                      4.94     4.94
     China             SZWL1550
     Industrial and        ICBC    financial
     Commercial   Bank   win-win and profit  1000            2017.12.  2018.2.5        Floating      4.40%                                   Yes      Yes
     Bank     of        increase                         26                    income                      -       -
     China             SZWL1550
     Industrial and        ICBC    financial                 From                   Floating
     Commercial   Bank   win-win and profit  2000            2017/12/                            3.50%                                   Yes      Yesincome-       -
     Bank     of        increaseSZDL1301                 27
     China
     Bank     of  Bank   BOC      wealth                 2016.12.  2016.12.3       Floating                     1.3     1.3              Yes      Yes
     China             accumulationplan                  5       0             income
     China             Qianyuan       -                 2016.12.                Floating
     Construction   Bank   Premium 2016 No.  500            29       2017.3.31       income      4.30%           5.36     5.36             Yes      Yes
     Bank              86
     China             Qianyuan  –  Silu                 2017.1.2                Floating
     Construction   Bank   (Premium) 2017-01  500            0       2017.5.18       income      3.90%           6.3     6.3              Yes      Yes
     Bank              financialproduct
                      BOC      wealth
     Bank     of  Bank   accumulation       200            2017.1.2  2017.4.7        Floating      3.90%           1.65     1.65             Yes      Yes
     China             financial plan 2017                 0                     income
                    &en