2016-03-29-深交所-深赛格Ｂ_2015年年度报告（英文版）_222页_5mb

Shenzhen SEG Co., Ltd. 2015 Annual Report Summary

Core Content Overview

This summary outlines the key aspects of the 2015 annual report of Shenzhen SEG Co., Ltd., including important notices, company profile, financial performance, business overview, and strategic directions.

Main Financial Indexes

I. Basic Information

• Stock Abbreviation: SHEN SEG, SHEN SEG B
• Stock Code: 000058, 200058
• Listing Exchange: Shenzhen Stock Exchange
• Company Name in Chinese: 深圳赛格股份有限公司
• Legal Representative: Wang Li
• Registered Address: 31/F, Tower A, Stars Plaza, Huaqiang Road (N), Futian District, Shenzhen
• Postal Code: 518028
• Website: http://www.segcl.com.cn
• Email: segcl@segcl.com.cn

VI. Main Accounting Data and Financial Indexes (2015 vs. 2014 vs. 2013)

Important Notices

• The Board of Directors, Board of Supervisors, and senior executives guarantee the authenticity, accuracy, and completeness of the annual report.
• The Chairman of the Board, CFO, and responsible person of the accounting institution declare the financial statements are true and accurate.
• One director (Li Luoli) did not attend the board meeting reviewing the semi-annual report, and was represented by Song Pingping.
• Future plans and forward-looking statements do not constitute commitments to investors and should be viewed with caution due to investment risks.

Business Overview

I. Main Business and Operation Model

• Main Businesses: Development and operation of specialized electronics markets, property lease services, trade and channel services, e-commerce, value-added microcredit services, and hotel services.
• Operation Model: The Company focuses on three commercial platforms (electronics market, commercial real estate, and Chuangpinhui), expanding into mainstream industries related to the electronic information sector. It combines physical markets with e-commerce and channels to form a compound business model.
• Innovation: The Company utilizes "Internet+" strategies, big data systems, and collaborates with major internet enterprises to build an integrated resource-sharing platform for business, suppliers, purchasers, and consumers.

III. Industrial Position

• The Company has a leading position in the electronics market industry and has established a professional electronics market chain covering the Pearl River Delta, Yangtze River Delta, and beyond.
• SEG Electronics Market is recognized as the largest specialized electronics market in China and Asia, with significant brand influence both domestically and internationally.

Key Financial Highlights

• Operating Income: RMB 846,675,900, up 12.53% year-on-year.
• Total Profit: RMB 143,068,600, up 28.01% year-on-year.
• Profit Increase Drivers:
  • Growth in small loan and microcredit businesses.
  • Increased income from property rental and hotel operations.
  • Profit from Huakong SEG's 20% equity stake (up from losses in 2014).

Non-Recurring Gains and Losses

• The Company reported non-recurring gains and losses for 2015, with a total of -RMB 10,689,470.19.
• Key items:
  • Gains and losses on disposal of non-current assets: -RMB 257,269.63
  • Government subsidies: RMB 980,956.24
  • Fund appropriation charges: RMB 3,414,955.63
  • Impairment provision for accounts receivable: RMB 469,871.93
  • Trustee fee from entrusted operation: RMB 200,000.00
  • Other non-operating income and expenses: -RMB 13,043,897.59
• The Company did not classify any non-recurring items as recurring.

Strategic Directions and Business Trends

• The development of the Internet and mobile Internet has significantly impacted traditional electronics markets, leading to the need for transformation and innovation.
• The Company is actively exploring new business models and enhancing its operational and innovative capabilities.
• It emphasizes the integration of physical and online markets to create an "online + offline" interactive platform.
• The Company is leveraging its geographical and industrial advantages to support the "maker" movement and promote innovation in the physical electronics market.

Governance and Compliance

• The Company's financial statements are prepared and filed by the BDO Dahua CPA Co., Ltd. (special general partnership).
• The accounting data under Chinese and International Standards showed no significant differences.
• The Company has no major overseas assets.

Key Risks and Uncertainties

• Uncertain Rental Income:
  • Rental income for Xi'an Hairong SEG is based on 70% of profits, making future amounts uncertain.
  • Rental income for Shenzhen SEG Electronics Market is adjusted according to the CPI, leading to uncertainty.
  • Rental income for Wujiang SEG is based on 70% of pretax profits, also making future amounts uncertain.
• Legal Disputes:
  • Nanning SEG faced potential compensation due to water damage to a leased property.
  • Suzhou SEG had a legal dispute with Suzhou Track Traffic Group over a metro project, resulting in potential compensation.