Full Texrt of 2015 Annual Report of Shenzhen SEG Co., Ltd.
Shenzhen SEG Co., Ltd.
2015 Annual Report
March 2016
Full Texrt of 2015 Annual Report of Shenzhen SEG Co., Ltd.
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 Wang Li, the Chief Financial Officer Liu Zhijun and the
responsible person of the accounting institution (Accountant in charge) Ying Huadong
hereby declare that the Financial Statements enclosed in this annual report are true,
accurate and complete.
Except the diractor listed below, all the directors have attended this board meeting reviewing
the semi-annual report.
Title of director not
Name of director unattended Cause of absence Name of attorney
attended personally
Li Luoli Independent director Business trip Song Pingping
The future plans, development strategies, and forward-looking statements involved in the
annual report do not constitute any tangible commitment to investors. Investors should pay
attention to investment risks.
The profit distribution plan passed by the Board of Directors is to issue cash RMB 0.30 (tax
included) as dividends with 0 bonus shares per 10 shares (tax included) to all shareholders
with RMB 784,799,010 as the base without transferring the capital reserve to share capital.
Full Texrt of 2015 Annual Report of Shenzhen SEG Co., Ltd.
CONTENTS
Chapter 1 Important Notice, Contents, and Definitions ..........................................2
Chapter 2 Company Profile and Main Financial Indexes ........................................7
Chapter 3 Overview of Business ...............................................................................12
Chapter 4 Management Discussion and Analysis ...................................................14
Chapter 5 Important Matters ...................................................................................43
Chapter 6 Changes in Share Capital and Information on Shareholders .............. 74
Chapter 7 Preferred Shares.......................................................................................80
Chapter 8 Information on Directors, Supervisors, Senior Executives and Employees
Chapter 9 Corporate Governance ............................................................................91
Chapter 10 Financial Report...................................................................................105
I. Company Profile ...................................................................................................134
III. Basis of preparation of the financial statements.............................................136
V. Taxes171
VII. Change in consolidation scope ........................................................................201
No changes are made to the consolidation scope in the current reporting period.201
VIII. Equity in other entities ...................................................................................201
X. Related parties and associated transactions .....................................................206
Note *1: Under the cooperation agreement signed by and between both parties, Xi'an
Hairong SEG Electronics Market Co., Ltd. pays the rental according to 70% of profits of the
electronics market. Therefore, the amount of rental in the future is uncertain. 210
Note *2: The rental of Shenzhen SEG Electronics Market Management Co., Ltd. is adjusted
according to the CPI. Therefore, the amount of rental in the future is uncertain.210
Note *3: Under the cooperation agreement signed by and between both parties, Wujiang
SEG Electronics Market Co., Ltd. pays the rental according to 70% of pretax profits of the
electronics market. Therefore, the amount of rental in the future is uncertain. 210
XII. Events after the balance sheet date................................................................. 211
Full Texrt of 2015 Annual Report of Shenzhen SEG Co., Ltd.
XIII. Notes to other important matters ..................................................................212
Continued: ................................................................................................................212
Chapter 11 Documents for Reference.....................................................................222
Full Texrt of 2015 Annual Report of Shenzhen SEG Co., Ltd.
Definitions
Definition Refers to Description
This Company, the Company Refers to Shenzhen SEG Co., Ltd.
Shenzhen SEG Group Co., Ltd. Refers to Shenzhen SEG Group Co., Ltd.
Huakong SEG Refers to Shenzhen Huakong SEG Co., Ltd.
SEG Baohua Refers to Shenzhen SEG Baohua Enterprise Development Co., Ltd.
Xi'an SEG Refers to Xi’an SEG Electronics Market Co., Ltd.
Suzhou SEG Refers to Suzhou SEG Electronics Market Co., Ltd.
Xi'an Hairong SEG Refers to Xi’an Hairong SEG Electronics Market Co., Ltd.
Nanjing SEG Refers to Shenzhen SEG Electronics Market Management Co., Ltd.
Shanghai SEG Refers to Shanghai SEG Electronics Market Co., Ltd.
Nantong SEG Refers to Nantong SEG Times Square Management Co., Ltd.
Changsha SEG Refers to Changsha SEG Development Co., Ltd.
Mellow Orange Hotel Refers to Shenzhen Mellow Orange Business Hotel Management Co., Ltd
Longgang SEG Refers to Shenzhen SEG Electronics Market Management Co., Ltd.
SEG Industry Refers to Shenzhen SEG Industrial Investment Co., Ltd.
SEG E-Commerce Refers to Shenzhen SEG E-Commerce Co., Ltd.
SEG Credit Refers to Shenzhen SEG Credit Co., Ltd.
SEG Navigations Refers to Shenzhen SEG GPS Scientific Navigations Co., Ltd.
Wujiang SEG Refers to Wujiang SEG Electronics Market Co., Ltd.
Shunde SEG Refers to Shunde SEG Electronics Market Management Co., Ltd
Wuxi SEG Refers to Wuxi SEG Electronics Market Co., Ltd
Nanning SEG Refers to Nanning SEG Digital Plaza Management Co., Ltd.
Yantai SEG Refers to Yantai SEG Times Square Development Co., Ltd.
Suzhou SEG Digital Refers to Suzhou SEG Digital Plaza Management Co., Ltd.
Zhengzhou SEG Refers to Zhengzhou SEG Digital Plaza Management Co., Ltd.
Xi'an Fengdong SEG Refers to Xi'an Fengdong New Town SEG Times Square Properties Co.,
Full Texrt of 2015 Annual Report of Shenzhen SEG Co., Ltd.
Definition Refers to Description
Ltd.
Nantong SEG Operation Refers to Nantong SEG Commercial Operation Management Co., Ltd.
SEG Investment Refers to Shenzhen SEG Investment Management Co., Ltd.
SEG Chuangpinhui Refers to Chuangpinhui Branch of Shenzhen SEG Co., Ltd
SEG Logistics Refers to Shenzhen SEG Logistics Co., Ltd.
An integrated information platform for market management with
SEG Universal Refers to the functions of access control management, micro-payment,
query system and information distribution.
State-owned Assets Supervision and Administration Commission
Shenzhen SASAC Refers to
of Shenzhen Municipality
CSRC Refers to China Securities Regulatory Commission
Shenzhen Securities Regulatory Bureau of China Securities
Shenzhen Securities Regulatory Bureau Refers to
Regulatory Commission
The Articles of Association Refers to The Articles of Association of Shenzhen SEG Co., Ltd.
Unless otherwise specified, the amount referred
Refers to Amount in RMB
to in the report
Full Texrt of 2015 Annual Report of Shenzhen SEG Co., Ltd.
Chapter 2 Company Profile and Main Financial Indexes
I. Basic Information
Stock abbreviation SHEN SEG, SHEN SEG B Stock code 000058, 200058
Changed stock abbreviation (if
None
any)
Listed on Shenzhen Stock Exchange
Company name in Chinese 深圳赛格股份有限公司
Company name in Chinese SHEN SEG
Company name in English (if
SHENZHEN SEG CO.,LTD.
any)
Company name abbreviations
None
in English (if any)
Legal representative Wang Li
Registered address 31/F, Tower A, Stars Plaza, Huaqiang Road (N), Futian District, Shenzhen
Post code
Office address 31/F, Tower A, Stars Plaza, Huaqiang Road (N), Futian District, Shenzhen
Post code
Website http://www.segcl.com.cn
E-mail segcl@segcl.com.cn
II. Contact Information
Secretary of the Board of Directors Securities affairs representative
Name Zheng Dan Zhang Xin
31/F, Tower A, Stars Plaza, Huaqiang Road 31/F, Tower A, Stars Plaza, Huaqiang Road
Contact address
(N), Futian District, Shenzhen (N), Futian District, Shenzhen
Phone 0755-83747939 0755-83747939
Fax 0755-83975237 0755-83975237
E-mail segcl@segcl.com.cn segcl@segcl.com.cn
III. Information Disclosure and Filing Site
Media selected by the Company for information China Securities Journal, Securities Times, Securities Daily and Hong Kong
disclosure Commercial Daily
Website selected by CSRC for publishing the annual
http://www.cninfo.com.cn (Cninfo Website)
report
The place where the annual report is prepared and Secretary's Office of Board of Directors, 31/F, Tower A, Stars Plaza,
kept Huaqiang Road (N), Futian District, Shenzhen
Full Texrt of 2015 Annual Report of Shenzhen SEG Co., Ltd.
IV. Changes of Registration Information
Organization code 27925377-6
Changes to business scope on July 6, 2005: Domestic commerce, goods supply and
sale (excluding commodities under special operation, control and sale), industrial
Changes of main business since the investment (licenses for specific projects shall be subject to application on a
Company's listing (if any) case-by-case basis), economic information consultancy, property lease, real estate
agency, and operation of SEG professional electronics markets (the license for the
professional market shall be further applied for).
Changes of dominant stockholders (if any) No change.
V. Other Relevant Information of the Company
The accounting firm employed by the Company:
Name of the accounting firm BDO Dahua CPA Co., Ltd. (special general partnership)
Address of the accounting firm Room 1101, 11/F, Tower 7, No. 16 Block, Xisihuan Road (M), Haidian District, Beijing
Name of the certified public
Zhang Xing and Zhang Zhaocheng
accountant
The sponsor firm employed by the Company for fulfilling the duties of continuous supervision in the report
period:
□ Applicable √ Not applicable
The financial advisor employed by the Company for fulfilling the duties of continuous supervision in the report
period:
□ Applicable √ Not applicable
VI. Main Accounting Data and Financial Indexes
Are retrospective adjustments made to previous financial statements due to accounting policy changes or
accounting errors?
□ Yes √ No
Year-on-year
2015 2014
increase/decrease
Operating revenue (Yuan) 741,533,676.93 681,343,920.99 8.83% 597,358,257.82
Net profit attributable to shareholders of
74,242,090.49 48,380,294.05 53.46% 54,338,735.35
the listed company (Yuan)
Net profit attributable to shareholders of
the listed company after deduction of 84,931,560.68 45,920,252.23 84.95% 48,912,658.58
non-recurring gains and losses (Yuan)
Net cash flow arising from operating
-12,453,523.82 -427,933,620.94 -97.09% -122,530,546.70
activities (Yuan)
Basic EPS (Yuan/Share) 0.0946 0.0616 53.57% 0.0692
Diluted EPS (Yuan/Share) 0.0946 0.0616 53.57% 0.0692
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Weighted average ROE 5.19% 3.80% 1.39% 4.44%
Year-on-year
End of 2015 End of 2014 End of 2013
increase/decrease
Total assets (Yuan) 2,614,660,524.37 2,659,717,718.28 -1.69% 2,134,940,597.85
Net assets attributable to shareholders of
1,475,126,229.16 1,298,970,719.85 13.56% 1,250,224,375.08
the listed company (Yuan)
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 report period, the company’s net profits and net assets have no differences in the financial report disclosed
based on both the international and the Chinese accounting standards.
2. Differences in net profits and net assets reported in the financial statements disclosed under overseas
accounting standards and Chinese accounting standards
□ Applicable √ Not applicable
In the report 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.
VIII. Major Quarterly Financial Indexes
Unit: Yuan
Quarter 1 Quarter 2 Quarter 3 Quarter 4
Operating income 191,029,218.56 183,525,917.05 194,784,480.30 277,336,268.42
Net profit attributable to shareholders of the
21,348,553.12 13,557,580.49 7,280,509.44 32,160,825.24
listed company
Net profit attributable to shareholders of the
listed company after deduction of 21,168,892.76 13,529,361.55 6,782,338.84 43,450,967.53
non-recurring gains and losses
Net cash flow from operating activities -37,829,627.54 -60,758,206.08 52,310,864.17 33,823,445.63
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 semi-annual reports?
□ Yes √ No
IX. Items and amount of non-recurring gains and losses:
√ Applicable □ Not applicable
Unit: Yuan
Amount of Amount of Amount of
Item Remarks
2015 2014
Gains and losses on disposal of
-257,269.63 6,475.34 1,810,628.46 Gains on disposal of fixed assets
non-current assets (including the write-off
Full Texrt of 2015 Annual Report of Shenzhen SEG Co., Ltd.
Amount of Amount of Amount of
Item Remarks
2015 2014 2013
of assets depreciation reserves)
Won the special subsidies issued by
Futian District Bureau of Science and
Government subsidies recorded into
