Stock code: 000058, 200058 Stock abbreviation: SHEN SEG, SHEN SEG B Notice No.: 2021-013
Abstract of 2020 Annual Report of Shenzhen SEG Co., Ltd.
I. Important Notice
The abstract of 2020 Annual Report is excerpted from the full text of 2020 Annual Report. For more details about theoperating result, financial condition, and future development planning, investors shall read carefully the said full textpublished on the designated media by China Securities Regulatory Commission (CSRC).
All directors other than the following directors have attended the meeting of the Board of Directors and deliberatedthe annual report.
Name of director not present
| Name of director not present | Position of director not present | Reason for absence | Name of proxy |
| Gao Jian Bai | Director | For work | Zhang Liang |
| Zhang Jian | Director | For work | Zhang Liang |
Notice of non-standard audit opinions
□ Applicable √ Not applicable
Proposal for profit distribution of common shares or proposal for transfer of capital reserves into share capital duringthe reporting period deliberated by the Board of Directors
√Applicable □Not applicable
Transfer of capital reserves to share capital
□ Yes √ No
Profit distribution plan for the common shares deliberated and approved by the Board of Directors: distribute a cashbonus of 0.1 yuan (tax included) to all shareholders for every 10 shares based on 1,235,656,249 shares, 0 bonusshares(tax included) and no common reserves transfer into share capital either.Proposal for profit distribution of preferred shares during the reporting period adopted in the resolution of the Boardof Directors
□Applicable ?Not applicable
II. Company Profile
1. Basic Information
| Stock abbreviation | SHEN SEG, SHEN SEG B | Stock code | 000058, 200058 | |
| Listed on | Shenzhen Stock Exchange | |||
| Contact Information | Secretary of the Board of Directors | Securities affairs representative | ||
Name
| Name | Peng Aiyun | Xiang Qianqian |
| Office address | 31/F, Tower A, Stars Plaza, Huaqiang Road (N), Futian District, Shenzhen | 31/F, Tower A, Stars Plaza, Huaqiang Road (N), Futian District, Shenzhen |
| Fax | 0755-83975237 | 0755-83975237 |
| Phone | 0755-83747939 | 0755-83741808 |
| segcl@segcl.com.cn | xiangqq@segcl.com.cn |
2.Main Business or Products Profile During the Reporting Period
In 2020, the company's main business included market circulation business centered on thecommunications market and electronic professional market, smart city and city services businesscentered on property management and management services, and strategic emerging business centeredon inspection and testing and new energy.
3. Main Accounting Data and Financial Indexes
(1) Main Accounting Data and Financial Indexes in Recent Three Years
Are retrospective adjustments made to previous financial statements?
□Yes √No
In RMB
| 2020 | 2019 | Year-on-year increase/decrease | 2018 | |
| Operating income | 1,403,665,817.37 | 1,493,227,561.06 | -6.00% | 1,605,787,472.11 |
| Net profit attributable to shareholders of the listed company | 25,924,861.87 | 78,447,278.89 | -66.95% | 27,852,740.23 |
| Net profit attributable to shareholders of the listed company after deduction of non-recurring profit and loss | -23,361,507.86 | -1,694,690.46 | -1,278.51% | 17,223,506.49 |
| Net cash flow from operating activities | 243,544,355.42 | 430,499,191.36 | -43.43% | 167,674,153.73 |
| Basic EPS (Yuan/share) | 0.0210 | 0.0635 | -66.93% | 0.0225 |
| Diluted EPS (yuan/share) | 0.0210 | 0.0635 | -66.93% | 0.0225 |
| Weighted average ROE | 1.37% | 4.17% | -2.80% | 1.47% |
| Year-end of 2020 | Year-end of 2019 | Increase/decrease at the end of current year over the end of last year | Year-end of 2018 |
Total assets
| Total assets | 5,830,977,104.07 | 6,190,598,894.81 | -5.81% | 7,128,009,738.20 |
| Net assets attributable to shareholders of the listed company | 1,905,722,149.42 | 1,899,384,178.95 | 0.33% | 1,867,881,216.44 |
(2) Quarterly Main Accounting Data
In RMB
| Q 1 | Q 2 | Q 3 | Q 4 | |
| Operating income | 192,164,935.58 | 584,728,114.87 | 301,827,368.72 | 324,945,398.20 |
| Net profit attributable to shareholders of the listed company | -11,787,492.80 | 70,858,321.63 | 34,247,890.09 | -67,393,857.05 |
| Net profit attributable to shareholders of the listed company after deduction of non-recurring profit and loss | -18,662,797.99 | 59,340,958.96 | 13,451,259.45 | -77,490,928.28 |
| Net cash flow from operating activities | -30,503,048.76 | 81,027,122.88 | 102,532,507.71 | 90,487,773.59 |
Whether there are significant differences between the above-mentioned financial index or its total number and therelevant financial index disclosed in the company’s quarterly report and semi-annual report
□Yes √No
4. Share Capital and Shareholders
(1) Number of Common Shareholders and Number of Preferred Shareholders Restored withThe Voting Rights, and Information on Top 10 Shareholders
In Share
| Total number of common stock shareholders at the end of the reporting period | 76,438 | Total number of common stock shareholders at end of the previous month before the disclosure date of the annual report | 72,992 | Total number of preference shareholders with voting rights recovered at end of reporting period (if any) | 0 | Total number of preference shareholders with voting rights recovered at end of the previous month before the disclosure date of the annual report (if any) | 0 | |||||||
| Shareholders holding more than 5% of the shares or the top 10 shareholders | ||||||||||||||
| Name of | Nature of | Sharehold | Number | Changes | Number | Number of | Information on pledged or frozen | |||||||
shareholder
| shareholder | shareholder | ing proportion | of shares held at period-end | of shares during the reporting period (+,-) | of restricted shares held | shares without restriction | shares | |
| Share status | Quantity | |||||||
| Shenzhen SEG Group Co., Ltd. | State-owned legal person | 56.70% | 700,618,759 | 0 | 450,857,239 | 249,761,520 | / | / |
| LI SHERYN ZHAN MING | Overseas natural person | 0.73% | 9,063,952 | 7,110,852 | 0 | 9,063,952 | / | / |
| Liu Guocheng | Domestic natural person | 0.59% | 7,250,502 | 94,700 | 0 | 7,250,502 | / | / |
| Hou Xiulan | Domestic natural person | 0.41% | 5,100,000 | 5,100,000 | 0 | 5,100,000 | / | / |
| Yang Fan | Domestic natural person | 0.33% | 4,087,000 | 4,087,000 | 0 | 4,087,000 | / | / |
| Liu Guohong | Domestic natural person | 0.28% | 3,402,503 | 84,405 | 0 | 3,402,503 | / | / |
| Gong Qianhua | Overseas natural person | 0.24% | 2,940,000 | 0 | 0 | 2,940,000 | / | / |
| Hong Kong Securities Clearing Company Ltd. | Overseas legal person | 0.19% | 2,384,525 | 2,384,525 | 0 | 2,384,525 | / | / |
| Xu Yueying | Domestic natural person | 0.16% | 1,972,000 | 72,000 | 0 | 1,972,000 | / | / |
| Yu Yangyong | Domestic natural person | 0.12% | 1,516,900 | 1,516,900 | 0 | 1,516,900 | / | / |
| Strategic investors or general legal persons become the top 10 shareholders due to the placement of new shares (if any) | N/A | |||||||
| Explanations on the association relationship or concerted action among the above-mentioned shareholders | Shenzhen SEG Group Co., Ltd has no association with other shareholders, nor it is a concerted action unit as set forth in the Management Methods for Disclosure of Information on Changes in Shares Held by Shareholders of the Listed Company. It is unknown whether other shareholders have an association or are concerted action units or not. | |||||||
(2) Number of Preferred Shareholders and Shares Held by Top 10 Preferred Shareholders
□ Applicable ?Not applicable
In the reporting period, preferred shareholders do not hold shares.
(3) Property Rights and Rontrol Relationship Between the Company and Actual Controllerin Form of a Block Diagram
Shenzhen SASACShenzhenInvestmentHolding Co., Ltd.Shenzhen State-owned EquityManagement Co.,
Ltd.
Shenzhen CapitalHoldings Co.,Ltd.
China OrientAssetManagement Co.,Ltd.
China Great Wall
AssetManagement Co.,Ltd.
ShenzhenKunpeng EquityInvestment Co.,
Ltd.
Shenzhen SEG Group Co., Ltd.
Shenzhen SEG Co., Ltd.
100%100%
4.75%38.1%26.12%13.72%9.80%7.51%
7.7922%
100%
56.70%
5. Information on Corporate Bonds
Has the Company issued and listed on the stock exchange corporate bonds that are not due or due but cannot berepaid in full on the approved release data of the annual report?Yes.
(1) Basic Information on Corporate Bonds
Shenzhen SASACShenzhenInvestmentHolding Co., Ltd.Shenzhen State-owned EquityManagement Co.,
Ltd.
Shenzhen CapitalHoldings Co.,Ltd.
China OrientAssetManagement Co.,Ltd.
China Great Wall
AssetManagement Co.,Ltd.
ShenzhenKunpeng EquityInvestment Co.,
Ltd.
Shenzhen SEG Group Co., Ltd.
Shenzhen SEG Co., Ltd.
100%100%
4.75%38.1%26.12%13.72%9.80%7.51%
7.7922%
100%
56.70%
Bond name
| Bond name | Bond abbreviation | Bond code | Offering date | Maturity date | Bond balance (RMB 10,000) | Interest rate |
| Corporate bonds publicly issued by Shenzhen SEG Co., Ltd. to qualified investors in 2018 （1st issue）（category I） | 18 SEG 01 | 112836.SZ | 2018-12-25 | 2021-12-25 | 70,000 | 4.60% |
(2) Latest Tracking Rating and Rating Changes of Corporate Bonds
CSCI Pengyuan Credit Rating Co., Ltd. issued the “2020 Tracking Credit Rating Report on 2018 Public Offering ofCorporate Bonds to Qualified Investors（1
st
issue）（category I and II) of Shenzhen SEG Co., Ltd. (hereinafterreferred to as the “Tracking Credit Rating Report”) on June 22, 2020, the credit rating of the “18 SEG 01” and “18SEG 02” bonds maintained at AAA, and the long-term credit rating of the company’s main body maintained at AA,the rating outlook remained stable. The results of this tracking rating have not changed from the previous ratingresults. For details of the Tracking Credit Rating Report, please refer to the company’s announcement published on
www.cninfo.com.cn on June 24, 2020.
(3) Main Accounting Data and Financial Index in Latest Two Years as of the End of theReporting Period
In 10,000 Yuan
Item
| Item | 2020 | 2019 | Rate of change over the same period |
| Asset-liability ratio | 57.44% | 59.45% | -2.01% |
| EBITDA - total debt ratio | 17.37% | 24.28% | -6.91% |
| Interest coverage ratio | 1.69 | 2.55 | -33.73% |
III. Operation Discussion and Analysis
1. Brief Introduction of the Operation During the Reporting Period
During the reporting period, facing of the sudden impact of the COVID-19 epidemic, the company focused onepidemic prevention and safety on the one hand, and production and operation on the other hand, and implementedcomprehensive reforms oriented to promoting business development, which further improved the level ofcorporate governance. Through strict safety and epidemic prevention control and delicacy management, theelectronic professional market was the first to resume work and production, continued to improve the servicequality and customer experience of the electronic professional market, promoted the transformation anddevelopment of the electronic professional market, and consolidated the industry position of the electronicprofessional market. The company resolved the operating risks of SEG New City and Xi'an Kanghong throughspecial efforts and achieved phased progress; the independently developed 600KN super-large electromagneticvibration test system has passed the third-party inspection, marking that the company has successfully rankedamong the forefront in the field of inspection and testing vibration; in response to the national policy of "carbonneutralizing and carbon peaking", actively promoted new energy business development, completed the acceptanceof Hangzhou production line, and steadily developed the photovoltaic application business.
The company has implemented the "electronic market +" strategy, supported by the professional electronic market,property management and management services, and through a combination of reform and innovation, investmentand mergers and acquisitions, and independent cultivation, it has actively transformed to a strategic emergingindustry development platform, and continued to improve and strengthen the company's core competitiveness andsustainable development capabilities to achieve the company's high-quality development.
During the reporting period, the company completed a total operating income of 1,403.67 million yuan, ayear-on-year decrease of 89.56 million yuan, falling 6%; realized a total profit of 71.18 million yuan, ayear-on-year decrease of 127.78 million yuan, falling 64.23%. The main reason for the changes in income was thatthe Company implemented the decision and deployment of rent reduction by Shenzhen Municipal Committee &Government, rent reduction or exemption during the reporting period was 115.16 million yuan. After the reductionin rent, the company’s income up slightly on a year-on-year basis; in addition to the above rent reductions, themain reason for the change in total profit was that the sales of financial equity decreased and the associatedenterprises suffered year-on-year losses, and the investment income decreased by 89.26 million yuan on a
year-on-year basis. Excluding the above effects, total profit increased year-on-year.
(1) Electronic Market Circulation
The company's electronic market circulation business covers two major brands, i.e., SEG electronics market andSEG communications market. There are more than 20 companies with holdings, shareholdings, and authorizedoperations, with a total operating area of more than 350,000 square meters. Among them, the holding electronicmarkets mainly include Shenzhen SEG Electronics Market, SEG Communications Market, Xi’an SEG, ChangshaSEG, Xi’an Hairong SEG, Nanjing SEG, Wujiang SEG, Shenzhen Longgang SEG, Shunde SEG, etc.
During the reporting period, in the face of the impact of the COVID-19 epidemic, the company effectivelyassumed the responsibility for epidemic prevention, fully organized epidemic prevention and control work,formulated epidemic prevention and control plans and emergency plans, and all employees rushed to the front lineto do their best to ensure customers, materials, and operations. The company built a solid line of defense forepidemic prevention and control at the operation frontline of electronic professional market, took the lead inpromoting the resumption of production and work in the electronic professional market, and ensured that theelectronic professional market and the company's properties maintain stable operation. There was no case ofCOVID-19 infection throughout the year, and the “Red Tent” action carried out by the company in HuaqiangbeiElectronics Street was reported by CCTV News, providing a reference for the resumption of production and workacross the country. During the epidemic, the company’s various businesses represented by the electronic marketcirculation business faced great pressure on operating performance, but the company still actively responded to thenational call, resolutely implemented the spirit of the municipal party committee and municipal governmentdocuments, and implemented rent reduction and exemption twice for eligible tenants, accumulatively reduced rentsby 115 million yuan, and the company overcame the difficulties with merchants and demonstrated theresponsibility of state-owned enterprises.
During the reporting period, the company complied with the changes in market consumption habits, graduallyextended to the upstream and downstream of the industrial chain based on the existing electronic marketcirculation business, accelerated the integration of new business formats, and gradually built a moderncomprehensive electronic professional market in which multiple formats coexisted with consumer experience asthe core, maintained the stable operation of the electronic market circulation business, and continued to promotethe transformation and upgrading of the electronic market circulation business.
(2) Smart Cities and Urban Services (including Real Estate Development)
During the reporting period, the company steadily promoted the adjustment of industrial structure, accelerated theremoval of existing inventories and made breakthrough progress. At the same time, the company vigorouslydeveloped smart city and urban service business driven by "technological innovation and high-quality service",deepened user value through refined and standardized management, enhanced customer experience, and continuedto promote the improvement of urban service business service quality. In 2020, the company continued to expandnew businesses and completed the acquisition of Xindongsheng Property on the basis of overcoming the impact ofthe epidemic and achieving stable and safe operations by strengthening team building, creating a positive andpioneering cultural atmosphere, establishing an efficient communication mechanism and a positive incentiveassessment mechanism, the newly increased property service management area exceeded 10 million square meters,and the scale of operation and management, service quality, core competitiveness, and brand influence continued
to increase.
The company seized the historical opportunities in the Guangdong-Hong Kong-Macao Greater Bay Area, thecompany actively made layout at optical fiber sensing, smart parking and other smart city businesses, andgradually transformed to a service provider for a better life in a comprehensive smart community with technology,digitization and intelligence through independent research and development, introduction of talents andtechnologies, and school-enterprise cooperation.
The Company Needs to Comply with the Disclosure Requirements of the "Shenzhen StockExchange Industry Information Disclosure Guidelines No. 3 - Listed Companies Engaged inReal Estate Business"A. Macro economy and market situation analysisDuring the reporting period, the central government’s policy of “housing residence instead of vicious speculation”remained unchanged. In the first half of the year, due to the impact of the COVID-19 epidemic, the economy facedgreater downward pressure, the real estate market in some second and third tier cities fell to some extent, thecentral fiscal and monetary policies worked together, and the real estate market rapidly recovered under the loosemonetary environment. In the second half of the year, real estate regulation and control policies somewhat shifted.The central government emphasized that real estate should not be used as a short-term economic stimulus means,the real estate financial supervision continued to be strengthened by stabilizing land prices, house prices, andexpectations, and the "three red lines" pilot was implemented. At the same time, some first-tier cities havesuccessively upgraded their regulatory policies to stabilize housing prices and promote the rational return of themarket.
B. Regional market analysis of major projects
The company's real estate projects are currently mainly in Shenzhen, Huizhou, Xi'an and Nantong.Shenzhen: In 2020, the total supply of commercial and office properties in Shenzhen was 1,942,800 square meters.The increase in supply brought more options for commercial and office properties, and rents were lowered by alarger margin compared with the peak periods. In the medium to long term, with the implementation of theGuangdong-Hong Kong-Macao Greater Bay Area and Shenzhen's pilot demonstration zone policies, Shenzhen'ssix major headquarters bases are gradually taking shape, and the supply and demand of Grade A office leasing maybe reversed. (Data source: Statistic data from Shenzhen Touchstone Real Estate Appraisal and Consultancy Co.,Ltd.)
Huizhou: Due to the large inventory base of Huizhou commercial and office properties, the sales progress has beenslow, and the overall supply has exceeded demand. Under the influence of the epidemic, the property market inHuizhou was in a stagnant stage, coupled with the continued tightening of policies and financial environment, thedemand for office products in the Huizhou market has plummeted, and the destocking cycle for commercialproperty has been further extended. (Data source: Centaline Property)
Xi'an: On the demand side, the market was relatively flat due to the impact of the epidemic in the first half of theyear; the market picked up in the second half of the year, with a number of large-scale transactions driving new
rental demand, and net absorption turned from negative to positive. The city's Grade A office buildings had a netabsorption of approximately 147,000 square meters, which was basically the same as in 2019. (Data source:
Savills’ report on "Xi'an Real Estate Market Review and Future Prospects in 2020")
Nantong: In 2020, Nantong's real estate investment grew rapidly, project funds were abundant, projectdevelopment was relatively active, new construction area grew rapidly, and the sales area of commercial housingincreased slightly on a year-on-year basis. The real estate market in Nantong has maintained a steadydevelopment trend against the background of the full spread of urban construction, the continuous implementationof various plans, and the still positive market expectations. (Data source: Nantong City Statistics Bureau).C. New land reserve projectsN/AD. Accumulated land reserveN/A
E. Development of main projects
City/Region
| City/Region | Project | Location | Type of operation | Equity ratio | Construction date | Development progress | Land area (㎡) | Gross floor area (㎡) | Area completed during the period(㎡) | Cumulative completed area (㎡) | Estimated total investment amount (10,000 Yuan ) | Total accumulated investment amount (10,000 Yuan ) |
| Huizhou | Huizhou SEG Holiday Plaza (Phase II) | Huizhou | Commercial, apartment | 69.54% | 2020-3-31 | Under construction | 8,225 | 23,030 | 0 | 0 | 28,160 | 18,494.38 |
| Xi’an | Xi’an SEG Plaza | Xi’an High-Tech Zone | Commercial, office and apartment | 43.46% | 2014-12-1 | Under construction | 23,014.90 | 206,374 | 0 | 0 | 210,000 | 48,479.00 |
Note: The schedule of the Xi 'an project has been delayed compared with the original expectation, mainly due to the tightening of policies in the real estate industry, the increasingpressure of project construction funds and the increasing development risks. SEG Property intends to transfer its 55% stake in Xi 'an SEG Kanghong, found more to the “PubliclyListed Transfer of 55% Equity of Xi’an SEG Kanghong Property Co., Ltd by Controlling Subsidiary and Involving the Related Transactions” published on Juchao Website dated 4July 2020. The project is being officially listed on the Shenzhen United Property and Share Rights Exchange.
F. Sales of main projects
City/Reg
ion
| City/Region | Project | Location | Type of operation | Equity ratio | Gross floor area | Area available for sale (㎡) | Accumulated pre-sale (sales) area (㎡) | Pre-sale (sales) area for the period (㎡) | Amount of pre-sale (sales) for the period (10,000 Yuan ) | Accumulative settlement area (㎡) | Settlement area for the period (㎡) | Settlement amount for the period (10,000 Yuan ) |
| Shenzhen | SEG New City Plaza (Phase II) | Shenzhen | Office, logistics, commercial and apartment | 61.12% | 105,874 | 105,874 | 65,906.73 | 7,319.27 | 28,408.15 | 65,487.44 | 8,586.69 | 30,346.32 |
| Shenzhen | SEG New City Plaza (Phase I) | Shenzhen | Logistics, commercial and supporting dormitory | 61.12% | 72,563 | 72,563 | 10,465.30 | - | - | 10,465.30 | - | - |
| Huizhou | Oriental Venice Garden (Phase I, II) | Huizhou | Residential | 69.54% | 219,470 | 256,349 | 243,375 | 761.48 | 926.83 | 243,242.03 | 1,360.03 | 1,369.35 |
| Huizhou | Huizhou SEG Holiday Plaza (Phase I) | Huizhou | Commercial | 69.54% | 73,761 | 92,233 | 38,517.02 | 656.02 | 825.65 | 38,479.51 | 964.51 | 1,199.66 |
| Nantong | Nantong SEG Time Square | Nantong | Commercial office | 100% | 100,529.20 | 67,653.85 | 19,471.72 | 6,123.52 | 7,734.42 | 17,513.36 | 5,970.03 | 6,574.95 |
G. Rental of main projectsDuring the reporting period, the company experienced some fluctuations in property leasing due to the impact of COVID-19. The company has achieved the overall stale operation ofproperty leasing through methods such as reducing the rents and fees, refined standardized management and strict epidemic prevention and control.H. Primary land development
□ Applicable ?Not applicable
I. Financing channel
Financing channel
| Financing channel | Financing balance at period-end | Financing cost ranges/Average financing cost | Term structure | |||
| Within one year | 1-2 years | 2-3 years | Over 3 years | |||
| Bank loans | ||||||
| -mortgage loan | 13,000 | 6.86% | 10-year | |||
| -mortgage loan | 16,400 | 5.225% | 5-year | |||
| -mortgage loan | 4,125 | 5.4625% | 5-year | |||
| -mortgage loan | 18,500 | 7.301% | 7-year | |||
| -mortgage loan | 26,000 | 7.056% | 15-year | |||
| Note | ||||||
| Bonds | ||||||
| Non-bank loans | ||||||
| Trust financing | ||||||
| Fund financing | ||||||
| Other | ||||||
| Total | 78,025 | |||||
J. Development strategy and business plan for the coming year
| plans to increase the land reserves | Start up schedule | Panned selling conditions | Relevant financing arrangement |
N/A
| N/A | Huizhou SEG Holiday Plaza project (Phase II) is expected to completed in 2021 with 100% progress of main structure and construction works, and 90% progress of water and electricity installation. | 1. Sales plan of SEG New City: completed the sales area of 458.21㎡ for apartments and achieved a clearance sales; 2. Sales plan of Huizhou SEG: (1) SEG Holiday Plaza project (Phase II) is expected to obtain a pre-sale license and officially sell at the end of 2021; (2) SEG Holiday Plaza project (Phase I) plans to sell an office building area of 2,490.35㎡; (3) SEG Holiday Plaza project (Phase I) plans to sell 301 parking spaces. 3. Sales plan of Nantong SEG: completed sales of approximately 4,910㎡ office products in No.1-3 Tower Building | N/A |
K. Providing guarantee to commercial property purchasers for the bank mortgages? Applicable □Not applicable
In 10,000 Yuan
| External guarantee | ||||||||
| Guarantee object | Disclosure date of the announcement related to guarantee amount | Guarantee amount | Actual date of occurrence (date of signing the agreement) | Actual guarantee amount | Type of guarantee | Guarantee period | Whether the performance has been completed (Y/N) | Whether it is a guarantee for related parties (Y/N) |
| SEG New City- Mortgage guarantee clients of CITIC Bank (Shenzhen Zhaocheng Investment Group Co., Ltd.) | 2017-5-26 | 26,000.00 | 2017-7-6 | 0.00 | Joint liability guarantee | Two years from the date of expiration of the performance period of the debt under the main contract | Y | N |
SEG New City-House purchasingclients (Bank of Communication)
| SEG New City-House purchasing clients (Bank of Communication) | 2016-8-4 | 30,000.00 | 2016-5-6 | 2,651.00 | Joint liability guarantee | 10-year | N | N |
| SEG New City-House purchasing clients(China Merchants Bank) | 2016-8-4 | 50,000.00 | 2016-5-6 | 1,736.00 | Joint liability guarantee | 10-year | N | N |
| SEG New City-House purchasing clients (Bank of China) | 2016-8-4 | 30,000.00 | 2016-5-6 | 809.00 | Joint liability guarantee | 10-year | N | N |
| SEG New City-House purchasing clients (China Construction Bank) | 2017-8-29 | No maximum limit | 2017-2-7 | 88.00 | Joint liability guarantee | 5-year | N | N |
| Nantong SEG- House purchasing clients (Rural Commercial Bank) | 2018-9-22 | 1,000.00 | 2018-7-10 | 130.00 | Joint liability guarantee | Not exceed ten years | N | N |
| Nantong SEG-House purchasing clients (Shanghai Pudong Development Bank) | 2018-9-22 | 7,000.00 | 2018-7-10 | 906.00 | Joint and several guarantee | Not exceed ten years | N | N |
| Nantong SEG-House purchasing clients (Industrial Bank) | 2018-9-22 | 700.00 | 2018-7-10 | 38.00 | Joint and several guarantee | Not exceed ten years | N | N |
L. Directors, Supervisors and Senior Executives co-invests with the listed company (applicable to the directors, supervisors and senior executives of the listed company as theinvestment body)
□ Applicable ?Not applicable
M. Progress of the related commercial real estate business during the reporting period(a) Nantong SEG Time Square ProjectDuring the reporting period, main business of the Nantong SEG is inventory sales, and achieved 6,123.52㎡ subscribed sales area. By the end of December 2020, Nantong SEG hasachieved a total subscribed sales area of 19,471.72㎡.(b) SEG New City Plaza ProjectDuring the reporting period, SEG New City Plaza (Phase II) has achieved a subscribed sales area of 7,319.27㎡. As of the end of December 2020, SEG New City Plaza (Phase II) hasachieved a total subscribed sales area of 65,906.73㎡. The logistic property of SEG New City and Building 2, Phase I have signed a sales contract. Found more to the “Announcement
on Signing of the Material Contracts for Daily Operations” published on Juchao Website dated 26 May 2020.(c) Huizhou Stars SEG Holiday Plaza ProjectThe Huizhou Stars (Phase II) is progressing as planned during the reporting period and the main project pile foundation construction has been completed.(d) Xi’an SEG Plaza ProjectDuring the reporting period, according to the strategic layout, the company actively promoted the transfer of Xi’an SEG Plaza. Found more to the “Publicly Listed Transfer of55% Equity of Xi’an SEG Kanghong Property Co., Ltd by Controlling Subsidiary and Involving the Related Transactions” published on Juchao Website dated 4 July 2020. Theproject is being officially listed on the Shenzhen United Property and Share Rights Exchange.
(3) Strategic Emerging Industries
The company's strategic emerging industries mainly include inspection and testing business and new energy business.
During the reporting period, the company's inspection and testing business independently developed the 600KN super-large electromagnetic vibration test system, as well as theprogram design, modeling verification and analysis of the high-low cycle composite high-cycle fatigue test system for aero-engine blades, of which the 600KN super-largeelectromagnetic vibration test system passing the third-party inspections and going into use signified that the company has successfully ranked among the forefront in the field ofinspection, testing and vibration, and the company's core competitiveness has continued to increase; at the same time, the company's use of independent technology to providehigh-quality services for China Aerospace has been recognized.
During the reporting period, the company responded to the country’s “carbon peaking and carbon neutralizing” policy, adjusted its new energy business operation strategy, vigorouslydeveloped the construction of distributed photovoltaic power plants, and used photovoltaic power generation technology as the basis to extend its business development to solarthermal, charging, energy storage, etc. The company completed the construction of the Shenzhen Higreen rooftop power station project and the China Star Optoelectronics Technologyrooftop power station project, and successfully achieved grid-connected power generation; it established a joint venture with Longjiang Trading to promote the layout of thephotovoltaic industry in Heilongjiang Province, cultivate the photovoltaic market, and actively promote photovoltaic energy storage, solar thermal, photovoltaic charging piles,customized photovoltaic products and other businesses. The Hangzhou production line has completed acceptance and obtained third-party certification. The power generation glassproduced by the company has the advantages of beautiful appearance, flexible customization, and adjustable light transmittance. As a green building material, it has a wide range ofapplication scenarios in the field of building integrated photovoltaics (BIPV).
2. Whether there are Major Changes in Main Business During the Reporting Period
□Yes ?No
3. Products Accounting for over 10% of the Company’s Main Business Income or Main Business Profit? Applicable □Not applicable
| Operating income | Operating profit | Gross margin | Increase/decrease of operating income y-o-y | Increase/decrease of operating profit y-o-y | Increase/decrease of gross margin y-o-y | |
| According to industries | ||||||
| Electronic market and property leasing & management | 944,630,133.94 | 140,130,131.71 | 28.99% | -11.35% | -47.74% | -14.46% |
| Real estate development | 394,902,826.71 | -67,499,629.65 | 32.72% | 18.16% | 19.39% | -12.35% |
| Trade | 1,415,745.67 | -427,182.12 | -5.86% | -94.28% | 96.83% | 79.10% |
| Hotel | 27,435,486.46 | -6,987,329.96 | -25.73% | -39.46% | -351.43% | -251.69% |
| New energy | 4,728,345.15 | -7,390,144.39 | 29.18% | 48.66% | -150.69% | -18.66% |
| Inspection & testing | 30,553,279.44 | 11,505,263.86 | 70.61% | 51.54% | 54.09% | 2.63% |
4. Whether the Characteristics of Management Seasonal or Cyclical Need Special Attention
□Yes ?No
5. During the Reporting Period, Note of Major Changes in Operating Income, Operating Cost, Total NetProfit Attributable to Common Stock Shareholders of Listed Company or Composing by Comparing withthe Previous Reporting Period
? Applicable □Not applicableIn 2020, the Company’s total operation income was 1,403.67 million yuan with 6.00% down on a y-o-y basis, the company’s totaloperation cost was 984.81 million yuan with a decline of 0.06% on a y-o-y basis and the net profit attributable to shareholder of listedcompany amounted to 25.92 million yuan, a y-o-y down of 66.95%. Main reasons for the decline of net profit attributable toshareholder of listed company including: (1) the company implements the rent reduction that decided and deployed by ShenzhenMunicipal Committee and Government, approximately 115.16 million Yuan rents reduced; (2) due to the decrease in sale of financialequity and y-o-y loss of associates, the investment income has 89.26 million yuan declined on a y-o-y basis.
6. Facing Delisting
□ Applicable √Not applicable
7. Relevant Items with Financial Report Concerned
(1) Particulars about the Changes in Aspect of Accounting Policy, Accounting Estimates and CalculationMethod Compared with the Financial Report of Last Year
√ Applicable □Not applicable
(1)Change of accounting policies caused by the Accounting Standards for Business Enterprises changed
The Company implemented the “Accounting Standards for Business Enterprise No.14- Revenue” (hereinafter referred to as NewRevenue Standard) that revised by the Ministry of Finance since 1 January 2020. According to the provisions of the relevant old andnew standards, the information of comparable periods is not adjusted. The cumulative impact of the implementation of new standardson the first implementation date is retrospectively adjusted to the amount of retained earnings at the beginning of the reporting periodand other related items in the financial statement.
Main impact of the implementation of new revenue standards on the Company’s financial statement dated 1 Jan. 2020:
Item
| Item | Balance Sheet | ||
| 2019-12-31 | Impact of new revenue standard adjustments | 2020-1-1 | |
| Account received in advance | 219,807,547.13 | -219,807,547.13 | |
| Contract liability | 219,805,326.00 | 219,805,326.00 | |
| Other current liability | 2,221.13 | 2,221.13 |
(2) Since 1 Jan. 2020, the company has implemented the Interpretation of Accounting Standards for Business Enterprise No.13 issuedby the Ministry of Finance in 2019, and change of the accounting policy is accounted for using the future application method.
(2) Retroactive Restatement due to Corrections of Major Accounting Errors During the Reporting Period
□ Applicable √Not applicable
There is no retroactive restatement due to corrections of major accounting errors during the reporting period
(3) Changes in Consolidation Scope Compared with the Financial Report of Last Year
√ Applicable □Not applicable
Compared with the previous period, the number of entities included in consolidation scope of the financial statement for the currentperiod has one enterprise increased and one enterprise decreased:
1.The subsidiaries, special purpose entities and operation entities with control rights resulted by means of trustee operations or leasesthat newly incorporated into the consolidation scope for the current period:
| Name | Reasons for change |
| Shenzhen Xindongsheng property Management Co., Ltd. | Enterprise combined under the different control |
2.The subsidiaries, special purpose entities and operation entities with control rights lost by means of consignment operations orleasing that no longer included in the consolidation scope for the current period:
| Name | Reasons for change |
| Nanning SEG Electronic Market Management Co., Ltd. | Liquidation |