Sino Great Wall Co., Ltd. The Semi-annual Report 2016
Sino Great Wall Co., Ltd.
The Semi-annual Report 2016
August 2016
1
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
I. Important Notice, Table of Contents and Definitions
The Board of Directors and the directors, Supervisory Committee and supervisors and Senior Executives of the
Company hereby warrant that at the year , there are no misstatement, misleading representation or important
omissions in this report and shall assume joint and several liability for the authenticity, accuracy and completeness
of the contents hereof.
All the directors attended the board meeting for reviewing the Semi-Annual Report.
The Company has no plan of cash dividends carried out, bonus issued and capitalizing of common reserves either.
Mr.Chen Lve , The Company leader, Mr. Cui Hongli, Chief financial officer and the Mr. Cui Hongli, the person in
charge of the accounting department (the person in charge of the accounting )hereby confirm the authenticity and
completeness of the financial report enclosed in this semi-annual report.
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Sino Great Wall Co., Ltd. The Semi-annual Report 2016
Table of Contents
Semi-Annual Report 2016
I.Important Notice, Table of contents and Definitions
II. Basic Information of the Company
III. Summary of Accounting Data and Financial Indicators
IV. Report of the Board of Directors
V. Important Events
VI. Change of share capital and shareholding of Principal Shareholders
VII. Situation of the Preferred Shares
VIII.Information about Directors, Supervisors and Senior Executives
IX. Financial Report
X. Documents available for inspection
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Sino Great Wall Co., Ltd. The Semi-annual Report 2016
Definition
Refers
Terms to be defined Definition
to
Refers
Company Law Company Law of the People’s Republic of China
to
Refers
Securities Law Securities Law of the People’s Republic of China
to
Refers
“CSRC” China Securities Regulatory Commission
to
Refers
Company,The Company, Sino Great Wall Sino Great Wall Co., Ltd.
to
Refers
Sino International Sino Great Wall International Engineering Co., Ltd.
to
Refers
BDO BDO China Shu Lun Pan Certified Public Accountants LLP
to
Refers
SZSE Shenzhen Stock Exchange
to
Refers
Reporting period January 1,2016 to June 30,2016
to
Refers
Wuhan Commercial & Vocational Hospital Wuhan Commercial & Vocational Hospital Co.,Ltd
to
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Sino Great Wall Co., Ltd. The Semi-annual Report 2016
II. Basic Information of the Company
I．Company Information
Stock abbreviation: Sino Great Wall Sino-B Stock code： 000018 200018
Stock exchange for listing Shenzhen Stock Exchange
Name in Chinese 神州长城股份有限公司
Chinese Abbreviation 神州长城 神州 B
English name (If any) Sino Great Wall Co., Ltd.
English Abbreviation (If any) Sino Great Wall Sino-B
Legal Representative Chen Lve
II. Contact person and contact manner
Board secretary Securities affairs Representative
Name Yang Chunling Liu Guofa
Sino Great Wall Building, No.3 Jinxiu
Sino Great Wall Building, No.3 Jinxiu Street,Economic
Contact address Street,Economic Technology Development Zone ,
Technology Development Zone , Beijing
Beijing
Tel 010-89045855 010-89045855
Fax 010-89045856 010-89045856
E-mail 1208806865@qq.com 000018sz@sina.com
3.Other
(1)Way to contact the Company
Whether registrations address, offices address and codes as well as website and email of the Company changed in
reporting period or not
□ Applicable □√ Not Applicable
The registered address, office address and their postal codes, website address and email address of the Company
did not change during the reporting period. The said information can be found in the 2015 Annual Report.
（2）About information disclosure and where this report is placed
Did any change occur to information disclosure media and where this report is placed during the reporting period?
□ Applicable √ Not applicable
The newspapers designated by the Company for information disclosure, the website designated by CSRC for
disclosing this report and the location where this report is placed did not change during the reporting period. The
said information can be found in the 2015 Annual Report.
（3）Registration changes of the Company
Whether registration has changed in reporting period or not
□ Applicable √ Not applicable
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Sino Great Wall Co., Ltd. The Semi-annual Report 2016
Date/place for registration of the Company, registration nmber for enterprise legal license number of taxation
registration and organization code have no change in reporting period, found more details in annual report 2015.
III. Summary of Accounting Data and Financial Indicators
1.Summary of accounting /Financial Data
May the Company make retroactive adjustment or restatement of the accounting data of the previous years due to
change of the accounting policy and correction of accounting errors.
□Yes √No
Reporting period Same period of last year YoY+/-（%）
Operating income（RMB） 1,953,574,755.51 2,081,209,219.16 -6.13%
Net profit attributable to the shareholders
202,299,416.64 165,342,341.12 22.35%
of the listed company（RMB）
Net profit after deducting of non-recurring
gain/loss attributable to the shareholders of 175,937,165.15 165,020,064.04 6.62%
listed company（RMB）
Cash flow generated by business operation,
-1,256,615,959.20 -243,795,872.83 415.44%
net（RMB）
Basic earning per share(RMB/Share) 0.12 0.10 20.00%
Diluted gains per
0.12 0.10 20.00%
share(RMB/Share)(RMB/Share)
Weighted average ROE(%) 14.47% 12.84% 1.63%
As at the end of the
As at the end of last year YoY+/-（%）
reporting period
Gross assets (RMB) 5,781,742,089.91 4,017,462,824.63 43.92%
Shareholders’ equity attributable to
1,514,525,228.17 1,282,256,738.74 18.11%
shareholders of the listed company（RMB）
II. Differences between accounting data under domestic and overseas accounting standards
1. Differences of net profit and net assets disclosed in financial reports prepared under international and
Chinese accounting standards.
□ Applicable √Not applicable
No difference.
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and
Chinese accounting standards.
□ Applicable √Not applicable
No difference .
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Sino Great Wall Co., Ltd. The Semi-annual Report 2016
III.Items and amount of non-current gains and losses
√Applicable □Not applicable
In RMB
Items Amount Notes
Except the effective hedge business related to the normal
operation business of the Company, the profit and loss in the
changes of fair values caused by the holding of tradable financial Proceeds from the sales of bank
46,868.49
assets and tradable financial liabilities as well as the investment financial products
returns in disposal of tradable financial assets, tradable financial
liabilities and saleable financial assets
According to the Land Transfer
(Expropriation) Compensation
Agreement of Shenzhen Dapeng
New District People's Hospital
Construction Project, the
Other non-operating income and expenditure except for the compensation shall be made for
26,315,383.00
aforementioned items the expropriation of the land and
on-ground buildings in Kuixin
community which belongs to the
company’s Kuiyong branch
located in Shenzhen Dapeng New
district.
Total 26,362,251.49 --
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Compaines Offering their Securities to the Public-Non-recurring Gains and Losses and
its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure
for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as
recurring gains and losses, it is necessary to explain the reason.
□ Applicable √ Not applicable
None of Non-recurring gain /loss items recorgnized as recurring gain /loss/itesm as defined by the information
disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period.
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Sino Great Wall Co., Ltd. The Semi-annual Report 2016
IV. Report of the Board of Directors
I. General
Since 2015, SGW Co., LTD has shorten the interior fitting business in China , extensively developed the ove
rseas EPC projects and investment opportunity, and strengthen the Medical Care and PPP investment. Affected b
y the slowdown in the domestic construction market and so forth factors, the company’s domestic decoration busi
ness had got a slowdown in a certain extent, gross profit margin is low. As for the company's overseas business d
evelopment, , SGW successively signed a major construction contracts in southeast Asia and Africa, other countri
es and regions. SGW signed a memorandum of understanding about Ethiopia medical industrial park with China's
transportation construction Co.,Ltd. International engineering branch. The overseas business has kept good growth
rate, overseas revenue grew by 103.64% year on year, which covers the rate of74.62% of total revenue of SGW
Co., LTD.
For the Medical Care, SGW Co., LTD has acquired Wuhan Commercial & Vocational Hospital Co.,Ltd (here
inafter referred to as "Wuhan Commercial & Vocational Hospital ") . Moreover, SGW invested the PPP Project of
the first Phase of Lu YI Xian Ren Ming Hospital Removal and Construction Works. SGW Co., Ltd won the bid o
f Guizhou Zhong Shan Liang DU Hong Qiao Third-Grade Class-A Hospital Project. And the medical care invest
ment and PPP project have a very good beginning.
To look forward, based on the analysis to the Construction Market of domestic and Abroad and current state
and future development prospect, SGW Co., Ltd will go on strengthening the EPC Contracting and investment alo
ng the “ One Road, One Belt” Countries, enhance the investment of Medical Care and PPP business to keep the ra
pid growth of current business. Besides, in order to secure the stable growth of domestic business, the Company w
ill actively respond to the Government Policy, Seize the development opportunity , where Chinese Government an
d Social Capital work together, fully develop the PPP investment and construction opportunity. SGW Co. Ltd wi
ll improve its business scope and profitability so as to lay a solid foundation for the everlasting development.
During the reporting period, the company realized the total revenue of RMB 1953.5748 million, a decrease
of 6.13% compared to the same period of last year; realized the operating profits of RMB 213.0631 million, a
decrease of 5.79% compared to the same period of last year; realized the net profits attributable to shareholders of
the listed company of RMB 202.2994 million, an increase of 22.35% compared to the same period of last year.
II. Analysis on principal Business
Year-on-year changes in major financial statistics
In RMB
YOY
This report period Same period last year Cause change
change（%）
Operating income
1,953,574,755.51 2,081,209,219.16 -6.13% 。
Operating cost 1,460,727,131.33 1,690,684,183.21 -13.60%
Sale expenses 9,259,264.24 7,502,905.30 23.41%
Mainly due to the setting-up of overseas
group company and overseas regional
Administrative expenses 112,993,754.29 64,838,318.67 74.27%
companies in the second half year of 2015.
Due to the increase of overseas
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Sino Great Wall Co., Ltd. The Semi-annual Report 2016
management personnel in the current
reporting period compared to the previous
period.
Due to the increase of borrowing from
Financial expenses 70,024,674.60 17,908,021.84 291.02%
financial institutions in the current period
Due to the change of income tax rate of the
Income taqx expenses 37,862,759.83 61,167,289.27 -38.10%
company’s subsidiary
R&D investment 64,858,681.88 64,725,606.72 0.21%
Due to the project cash deposit as
collateral and expenditure of advanced
Net cash flows from
-1,256,615,959.20 -243,795,872.83 415.44% payment increased largely as the overseas
operating activities
business increased rapidly in the current
period
Due to the payable of Wuhan Commercial
Net cash flows from
-100,287,677.86 -16,471,509.45 508.86% & Vocational Hospital Co.,Ltd in the
investing activities
current period.
Net cash flows from Due to the borrowing from bank increased
1,383,660,404.96 177,769,654.93 678.34%
financing activities in the current period
Net increase in cash and
28,377,720.07 -82,539,347.92 -134.38%
cash equivalents
Major changes in profit composition or cources during the report period
□ Applicable √ Not applicable
The profit composition or sources of the Company have remained largely unchanged during the report period.
Delay of future development and plan disclosed in Company’s IPO prospectus, fund raising prospectus and capital
reorganization report into this report period.\
□ Applicable √ Not applicable
No future development and plan disclosed in Company’s IPO prospectus, fund raising prospectus and capital
reorganization report into this report period.
Implementation of business plans disclosed in previous periods in this period.
In view of the international and domestic economic situation, the company formulated the business plan of
"strengthening the domestic decoration main business, expanding overseas construction market and promoting the
layout in the health-care industry to ensure steady growth of business performance". During the reporting period,
the company's overseas business maintained good growth, in the first half of the complete overseas business
income is 1.458 billion RMB, the new signing and the winning project engineering 7.6 billion RMB; Company
steadily promoting health investment, acquisition of Wuhan Commercial and Vocational Hospital, hospital PPP
projects fall to the ground, one after another good operating plan execution.
III. Composition of principal businesses
In RMB
Increase/decrease Increase/decrease
Increase/decrease
of principal of gross profit
of reverse in the
Operating Gross profit business cost over rate over the
operating costs same period of
revenue rate(%) the same period same period of
the previous
of previous year the previous year
year(%)
(%) (%)
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Sino Great Wall Co., Ltd. The Semi-annual Report 2016
Industry
Decoration works 514,581,944.96 430,177,995.85 16.40% -63.02% -63.21% 0.42%
Engineering
61,377.29 989,075.00 65.43% -44.58% -68.76% 26.76%
design
EPC 1,430,818,506.77 1,029,560,060.48 28.04% 113.63% 102.36% 4.01%
Product
None
Area
Domestic 495,748,253.47 409,999,729.35 17.30% -63.69% -64.17% 1.11%
Overseas 1,457,710,561.70 1,050,727,401.98 27.92% 103.64% 92.34% 4.23%
IV. Analysis on Assets and Liabiliti
Great Wall Co., Ltd., an comprehensive building operation enterprise, specializes in designing and
constructing for the building decoration engineering as well as relevant engineering operation. The Company’s
building operation business mainly includes overseas engineering contract and domestic engineering decoration,
electromechanics installment and curtain wall design and operation. In recent years, with the larger strength in
extending the Company’s overseas market, the increasing quantity and scale of overseas project and the strong
growth in overseas business, the Company’s competitive advantages are mainly reflected as the following aspects:
1. Service advantages of integration
The Company owns Grade A qualification of specific building decoration engineering and design, Grade I
qualification to professionally contract the building decoration engineering, Grade I qualification to professionally
contract electromechanic installment engineering and Grade I qualification to professionally contract the curtain
wall installment engineering. Meanwhile, the Company owns the qualification to operate the external engineering
contract. The complete design and operation qualification owned by the Company enable itself to provide the
clients with the integration service of the whole industrial-chain operation and design in decoration,
electromechanics installment and curtain wall. The Company has experienced in operation and ability on project
management with the whole industrial-chain integration services, such as project design, civil engineering,
electromechanics, refined decoration and the fire safety of curtain wall, where the Company can independently
complete the whole process of operation business for the building engineering project. In the area of building
engineering, the Company can form a joint-force advantage, reasonably arrange purchase, labor and the operation
plan for projects, optimizing the progress of project, effectively shorten the project time limit, decreasing the
overall cost of the project and realizing the maximum in the project profit.
2. Preemptive advantages and brand effect of overseas business
Judging from the international and domestic economic situations and the construction market, the company
assessed the situation ahead of others and made the layout of the overseas market, to form marketing team for
overseas construction business in advance, cultivate abilities of project management training and business
negotiation, and accumulate experience in the construction project. Familiar with the political and economic
environment in overseas markets, the construction market environment and labor market and labor regulations, the
company can make reasonable estimates about construction projects, effectively control construction projects and
win customers' acceptance by offering the engineering of perfect quality. With winning the bid and completion of
local landmarks, the company's visibility and influence in countries of the Middle East, Southeast Asia has been
increasing promoted establishing a good corporate image and brand image.
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Sino Great Wall Co., Ltd. The Semi-annual Report 2016
3. Advantages of talented personnel
Talent competition is the core part of enterprise competition, as talents are the most valuable asset of
enterprises. In order to ensure the stability of the company's personnel, various effective measures has be carried
out, including continuing to introduce talents, mobilizing and inspiring the enthusiasm and creativity of employees
work, sharing incentives for business growth with employees, and giving part of the company directors,
supervisors and senior management personnel and business backbones the privileged rights to purchase
non-public shares. In this way, listed companies and employees share a mutual benefits, and their subjective
initiative would be inspired, promoting the company's rapid development of overseas and domestic business The
Company’s core business management team, experienced in operating and skillfully marketing, is of high quality
and capability, like management capability, leaving good support for development of the company in future.
4.Distribution Advantage of Healthcare Industry
The Company mainly adopts the model of PPP.With the correlated approach of Construction plus Healthcare,
the Company purchases or co-operates the current hospital and invests to build new hospitals as well as other
healthcare projects. Since 2015, the Company has taken healthcare industry as another key point for the future
development, and the Company has purchased Commercial Employees Hospital of Wuhan,and has invested in
relocation project period I of People’s Hospital of Luyi as well as winning the bidding of the project of Guizhou
Zhongshan Liangdu Hongqiao Top Three Hospital, where distribution goes well in healthcare industry.
V. Analysis on investment Status
1. External Equity investment
（1）External investment
√Applicable □Not applicable
External investment
Investment amount (January-June
Investment Amount (January-June 2015)（RMB） Change rate(%)
2016)(RMB)
9,700.00 0.00 100.00%
Particulars of investees
Proportion in the
Name Principal business
investees’ equity(%)
Preventive health care section, internal medicine, surgery,
obstetrics and gynecology, pediatrics, ophthalmology,
otolaryngology, department of stomatology, department of
dermatology, infection disease department, oncology,
department of anesthesiology, medical laboratory, department of
Wuhan Commercial & Vocational
pathology, medical imaging department, department of 100.00%
Hospital Co.,Ltd
traditional Chinese medicine, integrated traditional Chinese
medicine and Western Medicine, hemodialysis room. (The
business scope and the operating period complied with the
business scope and the operating period of the approved license).
(Items subject to the approval by laws shall be carried out after
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Sino Great Wall Co., Ltd. The Semi-annual Report 2016
the approval by the relevant departments)
（2）Holding of the equipty in financial enterprises
□ Applicable √ Not applicable
There was no Holding of the equipty in financial enterprises.
（3）Securities investment
□ Applicable √ Not applicable
There was no investment in securities by the Company in the Reporting period.
（4）Explanation on Holding Equity in Other Listed Companies
□ Applicable√ Not applicable
There was no holding equity in other listed companies in the reporting period.
II.Information nof trust management, derivative investment and entrusted loan
（1）Trust management
□ Applicable √Not applicable
There was no trust management of the Company in the Reporting period.
（2）Derivative investment
□ Applicable√ Not applicable
There was no derivative investment of the Company in the reporting period.
（3）Entrusted loan
□ Applicable√ Not applicable
There was no entrusted loan of the Company in the reporting period.
III.Application of the Raised funds
√ Applicable □ Not applicable
（1）General application of the raised funds
√ Applicable □ Not applicable
In RMB’0000
Total amount of the raised capital 25,500
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Sino Great Wall Co., Ltd. The Semi-annual Report 2016
Total raised capital invested in the report period 3,366.36
Total accumulative raised capital invested 4,966.36
Amount of raised capital of which the purpose was changed in the
0
report period
Accumulative amount of raised capital of which the purpose has been
0
changed
Proportion of raised capital of which the purpose has been changed
0.00%
(%)
Notes to use of raised capital
As of June 30, 2016, the accumulative use of the raised funds by the company was RMB 49,663,565.80, and for the reporting
period, the amount of RMB 33,663,565.80 of raised funds was used. As of the end of the reporting period, the company invested a
total of RMB 32,265,103.15 to the overseas marketing network construction project, the amount of RMB 276,000 was invested for
the second phase construction of the informationalization project, the transaction related taxes and fees and intermediary fees were
RMB 17,122,462.65, the balance of the raised funds that have not been used was RMB 205,336,422.92; besides, there was RMB
150,000,000 of idle raised funds temporarily used for supplementing the company’s liquidity, the interest income of the special
account for raised funds was RMB 348,438.57, the handling charge of the special account for raised funds was RMB 639.26 and
the actual balance of the special account for raised funds was RMB55,684,222.23.
（2）Promised projects of raised capital
√ Applicable □ Not applicable
In RMB’0000
Date
Accumul Investme
when the
Total ated nt Has any
Project Total Amount project Benefit
raised amount progress Has the material
changed(i investme inested in has realized
Committed investment capital invested ended the predicted change
ncluding nt after the reached in the
projects and investment invested at the end reporting result be taken
partial adjustme reporting the reporting
as of the period(% realized place in
change) nt (1) period predicted period
commited reporting )(3)=(2)( feasibility
applicabl
period(2) 1)
e status
Committed investment projects
1. Overseas marketing
network construction No 10,000 10,000 3,226.51 3,226.51 32.27% Yes No
project
2.Informatization
No 2,500 2,500 27.6 27.6 1.10% Yes No
Construction Phase II
3.Related taxes and
agency fees of this No 13,000 13,000 112.25 1,712.25 13.17% Yes No
transaction
Subtotal of committeed
-- 25,500 25,500 3,366.36 4,966.36 -- -- -- --
investment projects
Investment orientation for und arising out of plan
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Sino Great Wall Co., Ltd. The Semi-annual Report 2016
No
Total -- 25,500 25,500 3,366.36 4,966.36 -- -- 0 -- --
Situation about not
coming up to schemed
progress or expected Not applicable
revenue and the reason
( in specific project)
Notes to significant
change in feasibility of No
the project
Amount, application Not applicable
and application
progress of the
unbooked proceeds
About the change of Not applicable
the implementation
site of the projects
invested with the
proceeds
Adjustment of the Not applicable
implementation way of
investment funded by
raised capital
About the initial Not applicable
investment in the
projects planned to be
invested with the
proceeds and the
replacement
Applicable
For maximizing the using efficiency of the raised funds and reducing the financial costs, the company shall,
with full consideration of the funds use plan for the projects invested by the raised funds, use RMB
Using the idle
150,000,000.00 to temporarily supplement the liquidity, with a term not exceeding 12 months and such
proceeds to
amount was expected to be returned to the special account for raised funds before May 30, 2017. Such item
supplement the
had been examined and approved in the 9th board meeting of seventh session board of directors of the
working capital on
company, and the company's board of supervisors, independent directors and the sponsor all had issued a
temporary basis
consent to it. During the use term, the company did not change the purpose of the raised funds, not affect
the normal conduct of the investment plans by the raised funds and not carry out the securities investment
and so forth risky investment.
Balance of the Not applicable
proceeds in process of
project implementation
and the cause
About application and Unused raise funds to raise money deposited in the account
14
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
status of the proceeds
unused
Problems existing in
application of the
proceeds and the Not applicable
information disclosure
or other issues
（3）Changes of raised funds projects
□ Applicable √ Not applicable
The Company had no raised funds in company reporting period.
（4）Fund-raising project
Fund-raising project overview Disclosure date Disclosure index
Special report of raised storage and usage August 27,2016 http://www.cninfo.com.cn
4.Analysis on principal subsidiaries and Mutual Shareholding Companies
√Applicable □Not applicable
Particulars about the principal subsidiaries and Mutual shareholding companies
In RMB
Leading Total Operating
Company Compan Sectors Registered Net assets Tumover Net Profit
products and assets(RMB profit
Name y type engaged in capital (RMB) (RMB) (RMB)
services ) (RMB)
Construction
general
contracting,
labor
subcontracting;
engineering
Sino Great Contract of survey and
Wall construction design;
Internationa Subsidiar project, professional 5,149,598,5 1,379,172,8 1,953,458,8 246,681,8 208,881,098.
70,136,099
l ies decoration, contracting; 75.25 29.79 15.17 84.71 88
Engineering healthcare engineering
Co., Ltd. investment design for the
construction
decoration;
building curtain
wall design,
etc.
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Sino Great Wall Co., Ltd. The Semi-annual Report 2016
V. Significant projects of investments with non-raised funds
□ Applicable √ Not applicable
The company has no project invested by raised fund in the reporting period.
VI. Prediction of business performance for January -September 2016.
Estimation of accumulative net profit from the beginning of the year to the end of next report period to be loss
probably or the warning of its material change compared with the corresponding period of the last year and
explanation of reason.
√ Applicable □Not applicable
Forenotice of earning :√Year-on-year increase
Type of data filet for the prediction
Same period of
Year beginning to end of next
the previous Increase or decrease%
report period
year
Estimated amount of
accumulative net 29,000 -- 34,000 24,295.28 Increase 20.00% -- 40.00%
profit(RMB’0000)
Basic earnings per shares
0.17 -- 0.20 0.14 Increase 21% -- 43%
(Yuan/share)
The company's overseas business was steadily developed with a growing momentum, which led to
that the company’s profits were steadily increasing, therefore the company implemented the plan of
Notes to forenotice of
increasing shares by converting capital reserve into share capital-on the basis of 28 shares increased
earnings
for every 10 shares, which rendered that earnings per share from the begging of the year to the next
reporting period decreased a little compared to the same period last year/
VII. Explanation of the Board of Directors and the Supervisor Committee concerning the “Non-standard
audit report ” issued by the CPAs firm for the reporting period
□ Applicable √ Not applicable
VIII.Explanation by the Board of Directors about the “ non-standard audit report “ for lastyear.
□ Applicable √ Not applicable
IX. Profit distribution carried out in the report period
Execution or adjustment of profit distribution, especially cash dividend, and capitalizing of reserves in the report
period.
√ Applicable □Not applicable
During the reporting period, upon the base of total share capital of 446,906,582 shares on the date of December 31,
2015, 28 shares were increased for every 10 shares to all the shareholders by converting capital reserve into share
capital, therefore the total increased shares by converting capital reserve into share capital were 1,251,338,429
16
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
shares, so the total share capital were 1,698,245,011 shares after such share increasing by converting capital
reserve into share capital.
Special explanation of the cash dividend policy
Whether conformed with the regulations of the Articles of
association or the requirements of the resolutions of the Yes
shareholders’ meeting:
Whether the dividend standard and the proportion were definite
Yes
and clear:
Whether the relevant decision-making process and the system
Yes
were complete:
Whether the independent director acted dutifully and exerted the
Yes
proper function:
Whether the medium and small shareholders had the chances to
fully express their suggestions and appeals, of which their legal Yes
interest had gained fully protection:
Whether the conditions and the process met the regulations and
was transparent of the adjustment or altered of the cash dividend Not a;pplicable
policy:
X. Preplan for profit distribution and turning capital reserve into share capital in the reporting period
□ Applicable √ Not applicable
The Company planed that no to distribute cash dividend, bonus shares and there was no turning of capital reserve
into share capital.
XI. Particulars about researches, visits and interviews received in this reporting period
√ Applicable □ Not applicable
Reception Way of Types of Discussion topics and
Reception time Vistors rece3ived
place reception visitors provision of materials
Information of the
company's overseas orders
BOD office and overseas staffing; the
Onsite Organizati GF Securities . Tang Xiao, GF
January 20,2016 of the company’s advantages of
investigation on Securities.Yue Hengyu
Company entering into the medical
industry. No document
provided
Guohai Securities. Wang Xin, Yinhua The situation and
BOD office Fund. Su Jingran, Yinhua Fund. Li advantages of the
Onsite Organizati
February 1,2016 of the Xiaohui,South Fund. Cao Fan. Minsheng company's overseas
investigation on
Company Securities. Yan Xiaoqing, Minsheng business; the mode of the
Securities.Wang Xiao, BOBBNS. Wang company's investment to
17
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
Liang,CMS. Wang Binpeng,Great Weal hospitals, negotiated
Wealth Assets. Zhang Yuehong,Shibei priorities, impacts to the
Investment. Pan Hongxing,CRT. Xiao company’s business
Chuanzhe and CRT. Li Yanhua. performance and staffing of
the medical team. No
document provided
The mode of the company's
investment to hospitals,
Wanmeng Shengshi. Liu Zhikai, negotiated priorities,
BOD office Wanmeng Shengshi. Sun Yuqi, Wanmeng impacts to the company’s
Onsite Organizati
March 3,2016 of the Shengshi Gong Pu, Hanhe Capital. Xue business performance;
investigation on
Company Tao,Essences. Song Yilu, Essences. Xia Information of the
Tian and Huaxia Life. Xie Dacheng. company's overseas orders
and overseas staffing. No
document provided
Engineering information of
the company’s domestic
BOD office
Onsite Organizati Mingji International Investment .Zhu and foreign business and
March 11,2016 of the
investigation on Quan. the considerations on the
Company
medical field investment.
No document provided
Information of the
company’s business
BOD office
Onsite Organizati Xingshi Investment. Feng Du, Yin Hua performance, orders in hand
May 4,2016 of the
investigation on Fund. Zhang Ke. and the mode of investment
Company
to hospitals. No document
provided
Hina Brodercasting Culture Media
Group.Xiong Shengyou, Hina The company’s basic
Brodercasting Culture Media Group. Qin information, development
BOD office
Onsite Organizati Weichuan, Guotai Junan . Chen strategy and information of
May 24,2016 of the
investigation on Xiao,Guotai Junan . Shen Zhenhao, Holly medical business
Company
Hight . Jia Shuai, Daxing Sixiang. Zhang development. No document
Liang,Guohai Securities. Wang Xin and provided
Guohai Securities. Li Xiang.
18
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
V. Important Events
1.Governance of the Company
During the reporting period, The company has strictly abided by the relevant laws, rules and regulations requested
on “Corporate Law”, “Securities Law”, “Listing Rules of Shenzhen Stock Exchange” and
“Governance Rules of Listed Companies” and by China Securities Regulatory Commission, established and
perfected the internal control management system, and constantly made the deep improvement of the corporate
governance activities to further standardize the company operations and improve the management level. The
company’s governance meets the basic requirements of regular documents on the governance of the listed
companies issued by China Securities Regulatory Commission.On March 14,2016,The Proposal on Revising the
Articles of Association of the Company and the Proposal on Revising the Company's Internal Control System
were examined and approved in the 5th board meeting of the company’s seventh session board of directors, which
had comprehensively revised the company’s Articles of Association and each management system.
(1).Shareholders and shareholders' general meeting: The Company convened and held shareholders' general
meeting strictly according to the requirements of Opinions on Standardization of Shareholders' General Meeting
of Listed Companies, formulated Rules of Procedure of Shareholders' General Meeting, ensured all shareholders,
especially medium and small shareholders, enjoy equal position and can fully exercise their own rights.
(2).Relationship between the controlling shareholder and the Company: The acts of the controlling shareholder of
the Company were standardized. It did not exceed the authority of the shareholders' general meeting to directly or
indirectly intervene with the decision-making and operating activities of the Company. The Company is
independent from its controlling shareholder in respect of personnel, assets, finance, organ and business. The
board of directors, the supervisory committee and internal organ of the Company are able to operate
independently.
(3) The Directors and The Board of Directors: the Board of Directors includes four special committees, such as
Audit Committee, Nomination Committee, Strategy Committee and Remuneration and Appraisal Committee,
which has provided a favorable support to the company for the decision-making related issues. Each special
committee has operated according to their work responsibilities and procedure rules, made research and
examination for the relative business and major issues of the company, and expressed the professional opinions in
the Board of Directors to offer support and advice for the scientific decision-making of the Board and ensure the
Board’s work more scientific and efficient. Also, the organization of the Board of Directors is in line with the
requirement of laws and regulations, and the independent directors play an important role in the corporate
decision-making. So, the company attaches importance to the function of the independent directors. In the
company’s management, the independent directors make careful review and express the independent views for the
financial audit, the affiliated transactions and other issues.
(4).Supervisors and the supervisory committee: The number and composition of the Supervisory Committee of the
Company complied with the requirements of laws and regulations. The Supervisory Committee of the Company
formulated the Rules of Procedure of the Supervisory Committee. The supervisors of the Company were able to
perform their duties seriously, take the attitude of being responsible for all shareholders and supervise the legality
and regulation conformity of the Company's finance and the duty performance of the directors, managers and
other senior executives of the Company.
(5) During the report period, the Company’s shareholders strictly fulfilled the commitments made at the
reorganization, where no over-due fulfillment of commitment existed.
19
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
(6)Information disclosure and transparency: The Company designated the secretary to the board of directors to
be responsible for information disclosure, Regulations on Management of Information Disclosure,Regulations on
Management of External Information Users and reception of shareholder and consultation. In the report period,
the Company was able to truly, accurately, completely and timely disclose relevant information according to the
provisions of laws, regulations and the Articles of Association of the Company. The Company will continue to
operate in a standardized way strictly according to the requirements of relevant laws and regulations including the
Company Law, further perfect company administration structure and establish and improve various regulations in
light of the gap with the requirements of Standards of Administration of Listed Companies, ensure the
maximization of shareholders' interests and safeguard the lawful rights and interests of all shareholders.
(7)The legitimate rights and interests of stakeholders: the company respects and safeguards the interests of the
legitimate rights and interests of stakeholders, realized the balance of the rights and interests of all parties, such as
shareholders, customers, enterprise and staff. The company adhered to the win-win relationships and mutual
developments with the stakeholders
Standardized operation is the foundation and guarantee for the healthy development of the enterprise, the
company will, in accordance with The Company Law, Provisional Code of Corporate Governance for Listed
Company, Shenzhen Stock Exchange Stock Listing Rules ,Standardize Operational Guidelines for Listed
Companies on the Main Board of Shenzhen Stock Exchange and the requirements of relevant laws and regulations,
continue to improve the internal control system and the corporate governance structure, raise the level of
standardized operation, safeguard the legitimate rights and interests of all shareholders, thus to ensure the
company’s sustainable, steady and healthy development.
There exist no difference in compliance with the corporate governance , the PRC Company Law and the relevant
provisions of CSRC.
II. Lawsuits affairs
Major lawsuits and Arbitration affairs
□ Applicable √ Not applicable
The Company has no major lawsuit or arbitration in the report period.
Other Lawsuits affairs
□ Applicable √ Not applicable
III. Query form media
□ Applicable √ Not applicable
In the reporting year, the Company had no query from media
IV. Bankruptcy or Reorganization Events
□ Applicable √ Not applicable
There Company was not involved in any bankruptcy or reorganization events in the reporting period.
V. Transaction in Assets
1. Purchase of assets
20
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
√ Applicable □Not applicable
Ratio of
Relation
the Net
with
Influence Income
Counter-pa Counter-pa
Acquired Transactio Impact on on the Caused by
rty or Connected rty Date of
or n Price (10 Progress Company's Profit and the Asset Disclosure
Ultimate Transactio （applicab Disclosure
Purchased thousand (Note 2) Business Loss of the Contributi Index
Controllin n le to (Note 5)
Assets yuan) (Note 3) Company ng to the
g Party associated
(Note 4) Listed
business
Company
situation)
in Total
Expanded
the
The
company's
contribute
medical Securities
d net
services, Times,
13 profits
improved Hong
individual (‘0000) to
Wuhan Co the layout Kong
shareholde The the listed
mmercial of the Commerci
rs ownership company
and company's al Daily
including transfer of during the May
Vocational 9,700 medical 0.00% No No and
Wang Jide, the assets period 11,2016
Hospital C services www.cninf
Fu had been from the
o.,Ltd industry o.com.cn..
jiuzhou, completed date of
and it’s www.cninf
Zeng purchase
conducive o.com.cn.
Xiankao to the end
for making On May
of the
a new 11,2016
reporting
profit
period
growth
point
2. Sale of assets
□ Applicable √ Not applicable
There is no sale of assets in the Company during the reporting period
3. Business combination
□ Applicable √ Not applicable
There is no Bubiness combination in the Company during the reporting period
VI. Implementation and Influence of Equity Incentive Plan of the Company
□ Applicable √ Not applicable
There is no equity incentive plan and its implementation in the Company during the reporting period.
VII. Significant related-party transactions
1. Related transactions in connection with daily operation
√Applicable □ Not applicable
21
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
Whether
Trading
Principl over the
limit Market Index
Subjects e of approve
Amount price of of
of the pricing Ratio in approve Date of
Related Relation Type of Price of of trade Way of similar inform
related the similar d disclosu
parties ship trade trade RMB0’ payment trade ation
transacti related trades d re
000 availabl disclos
ons transacti limited e ure
ons （RMB
or not
’0000）
(Y/N)
The
compan
y where
Qinghai the
Procure Quarterl
Heyi Compan
ment of Material Market Market y Market
Trade y’s 2,134.06 2.12 6,000 No
goods/se Goods price price settleme price
Co., director
rvices nt
Ltd. holds
the post
of legal
person
Kunwu
Jiuding
5% or
Invest
more
ment
sharehol
Manag Sale of Settleme
ders are Decorati Market Market Market
ement goods / 25.7 0.50 No nt by
subject on items price price price
Co., services contract
to the
Ltd.
same
And
control
related
party
The
compan
y where
Beijing the
Baolilai Compan Sale of Settleme
Decorati Market Market Market
Technol y’s goods / 19.8 0.038 No nt by
on items price price price
ogy Co., director services contract
Ltd. holds
the post
of legal
person
Total -- -- 2,179.56 -- 6,000 -- -- -- -- --
Details of any sales return of a large None
22
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
amount
On April 13,2016, the Company convened the 6th meeting of the 7th board of
directors,which examined and adopted “Proposal on the Company’s Daily Related
Give the actual situation in the report
Transaction in 2016”, predicting the total amount of daily transaction between the Qinghai
period where a forecast had been
Heyi Trade Co., Ltd., the related party, incurred RMB 60 million. This proposal has been
made for the total amounts of routine
examined and adopted by the annual shareholder’s meeting of the Company in 2015: The
related-party transactions by type to
related transaction amount actually incurred RMB 21.7956 million in the first half year of
occur in the current period(if any)
2016.
Reason for any significant difference
between the transaction price and the Not applicable
market refernce price (if applicable)
2. Related-party transactions arising from asset acquisition or sale
□ Applicable √ Not applicable
The Company was not involved in any related-party transactions arising from asset acquisition or sale during the
reporting period.
3. Related-party transitions with joint investments
□ Applicable √ Not applicable
The Company was not involved in any related-party transaction with joint investments during the reporting
period.
4. Credits and debt with related parties
√ Applicable □ Not applicable
The existence of non operating related credit and debt of the Company.
□Yes√ No
There existence of non operating related credit and debt of the Company of the reporting period.
Debt due to related parties：
Related Connection Reasons Opening New issue The amount Rate Interest Closing
partty relateion balance amount ofrestitution Balance
period
Controlling
shareholder business
Chen Lue 38,028.76 9,385.5 47,414.26 0.00% 0 0
and actual development
controller
Controlling
shareholder
Support
Xian and actual
business 0 15,000,000 15,000,000 0.00% 0 0
Zhijuan controller
development
Chen Lue
Niece
Effect of debts related to Mr Chen Lue and Ms. Xian Zhijuan provided financial support to the company, will help the company
operation of the expand their business, improve business performance.
23
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
Company
5. Other related-party transactions
□ Applicable √ Not applicable
The Company was not Other significant related-party transactions during the reporting period.
VIII. Particulars about the non-operating occupation of funds by the controlling shareholder
and other related parties of the Company
□ Applicable √ Not applicable
The Company was not involved in the non-operating occupation of funds by the controlling shareholder and other
related parties during the reporting period..
IX. Particulars about significant contracts and their fulfillment
I. Particulars about trusteeship, contract and lease
(1) Trusteeship
□ Applicable √ Not applicable
There was no any trusteeship of the Company in the reporting period.
(2) Contract
□ Applicable √ Not applicable
There was no any contract of the Company in the reporting period.
(3) Lease
□ Applicable √ Not applicable
There was not involved in any lease of the Company in the reporting period.
II. Guarantees provided by the company
√Applicable □Not applicable
In RMB’0000
External Guarantee (Exclude controlled subsidiaries)
Relevant Date of Guarante
Amoun Complete
disclosure happening Actual e
Name of the t of Guarante implemen
date/No. of (Date of mount of Guarantee type for
Company Guaran e term tation
the signing guarantee associate
tee or not
guaranteed agreement) d
24
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
amount parties
(Yes or
no)
Total of external guarantee Total of actual external
0 0
approved in Period(A1) guarantee in Period(A2)
Total balance of actual
Total of external guarantee
0 external guarantee at 0
approved at Period-end(A3)
Period-end(A4)
Guarantee of the Company for the controlling subsidiaries
Guarante
Relevant e
Amoun Date of Complete
disclosure for
Name of the t happening Actual implemen
date/No. of Guarantee Guarante associate
Company of (Date o mount of tation
the type e term d
guaranteed guarant signing guarantee or
guaranteed parties
ee agreement) not
amount (Yes or
no)
Sino Great The joint liability
March 15,2016 20,000 March 30,2016 20,000 1 year No No
Wall guaranty
Sino Great The joint liability
March 15,2016 15,000 April 7,2016 15,000 1 year No No
Wall guaranty
Sino Great The joint liability
March 15,2016 3,000 March 25,2016 3,000 1 year No No
Wall guaranty
Sino Great The joint liability
March 15,2016 10,000 April 26,2016 10,000 1 year No No
Wall guaranty
Sino The joint liability
12,000 January 13,2016 12,000 1 year No No
International guaranty
Sino The joint liability
10,000 January 13,2016 10,000 1 year No No
International guaranty
Sino The joint liability
20,000 January 21,2016 20,000 1 year No No
International guaranty
Sino The joint liability
10,000 April 26,2016 10,000 1 year No No
International guaranty
Sino The joint liability
20,000 April 19,2016 20,000 1 year No No
International guaranty
Sino The joint liability
15,000 June 21,2016 15,000 1 year No No
International guaranty
Sino The joint liability
40,000 June 28,2016 40,000 2 years No No
International guaranty
Sino The joint liability
2,000 September 29,2015 2,000 1 year No No
International guaranty
Sino The joint liability
2,000 November 17,2015 2,000 1 year No No
International guaranty
Sino 5,000 December 16,2015 5,000 The joint liability 1 year No No
25
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
International guaranty
Total of actual guarantee
Total of guarantee for subsidiaries
500,000 for subsidiaries in the 48,000
approved in the Period (B1)
Period (B2)
Total of actual guarantee
Total of guarantee for subsidiaries
500,000 for subsidiaries at 48,000
approved at Period-end (B3)
Period-end (B4)
Guarantee of the Company for the controlling subsidiaries
Guarante
Relevant e
Amoun Date of Complete
disclosure for
Name of the t happening Actual implemen
date/No. of Guarantee Guarante associate
Company of (Date o mount of tation
the type e term d
guaranteed guarant signing guarantee or
guaranteed parties
ee agreement) not
amount (Yes or
no)
Sino Joint liability
1,000 December 25,2015 1,000 1 year No No
International guaranty
Total amount of guarantee to
Total guarantee quota to the
the subsidiaries actually
subsidiaries approved in the 2,000 1,000
incurred in the reporting
reporting period (C1)
period (C2)
Total balance of actual
Total guarantee quota to the
guarantee to the subsidiaries
subsidiaries approved at the end of 2,000 1,000
at the end of the reporting
the reporting period (C3)
period (C4)
Total of Company’s guarantee（namely total of the large three aforementioned）
Total of guarantee in the Period Total of actual guarantee in
502,000 49,000
（A1+B1+C1） the Period（A2+B2+C2）
Total of actual guarantee at
Total of guarantee at Period-end
502,000 Period-end 49,000
（A3+B3+C3）
（A4+B4+C4）
The proportion of the total amount of actually guarantee in thenet
32.41%
assets of the Company(A4+B4+C4）
Including：
Amount of guarantee for shareholders, actual controller and its
0
associated parties（D）
The debts guarantee amount provided for the
Guaranteed parties whose assets-liability ratio exceed 48,000
70% directly or indirectly（E）
Proportion of total amount of guarantee in net assets of the
0
company exceed 50%（F）
Total guarantee Amount of the abovementioned guarantees
0
（D+E+F）
26
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
Explanations on possibly bearing joint and several
None
liquidatingresponsibilities for undue guarantees ( If any)
Explanations on external guarantee against regulated
None
procedures(Ifany)
Description of the guarantee with complex method
（1）Illegal providing of external guarantees
□ Applicable √Not applicable
No illegal providing of external guarantees in the report period.
III. Other significant contracts
√Applicable□ Not applicable
There was no other significant contract of the Company in the reporting period.
Whether
Pricin the
Contract the The Related The report on the
Counterpart g related
name of the Contract object Date transaction transacti final
contract name princip party
Company price on implementation
les transacti
on
Geological
Sino Great Wall Haoli Pricin
exploration and
International Consulting Min apartment May g USD 120
No None overlay has been
Engineering Co., Management projects 31,2016 agree million
completed, in site
Ltd. Co., Ltd. ments
construction
Geological
Sino Great Wall Pricin
MOTTAMA exploration and
International MTower Office May g USD 80
Holdings Co., No None overlay has been
Engineering Co., tower project 31,2016 agree million
Ltd. completed, in site
Ltd. ments
construction
Has enter the
Sino Great Wall Pricin
OXLEY-GEM( arena, under
International May g USD 285
CAMBODIA)C PP50 project No None preparation work
Engineering Co., 31,2016 agree million
O.,LTD. before
Ltd. ments
construction
BISKRA
Sino Great Wall China Pricin
province MKD Under preparation
International RailwayNo.14 May g
HAMMAM 4705.0982 No None work before
Engineering Co., Bureau Group 31,2016 agree
SALIHINE million construction
Ltd. Co., Ltd. ments
Hotell
Sino Great Wall Banque The republic of June Pricin USD 300 Under preparation
No None
International Congolaise de Congo 5000 sets 29,2016 g million work before
27
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
Engineering Co., l’Habitat of modern agree construction
Ltd. economy ments
applicable room
project
The republic of
Has enter the
Sino Great Wall Congo 5000 sets Pricin
PT.WANXIAN arena, under
International of modern August g RMB 1.5015
G NICKEL No None preparation work
Engineering Co., economy 1,2016 agree billion
INDONESIA before
Ltd. applicable room ments
construction
project
IV. Other significant transactions
□ Applicable √ Not applicable
There was no other significant transaction of the Company in the reporting period.
X.Commitments made by the Company or shareholders holding over 5% of the Company’s shares in the
reporting period or such commitments carried down into the reporting period
√Applicable □ Not applicable
Time of
Commitment Peiod of
Commitment Contents making Fulfillment
maker commitment
commitment
Commitment on
No No No No
share reform
Commitment in
the acquisition
report or the No No No No
report on equity
changes
Shares acquired by purchases of assets through
issuing shares: “I will not transfer the new shares
of Victor Onward Holdings acquired through this
restructuring, including but not limited to the
public transfer through the stock market or by
agreement, and I will not entrust anybody else to
Commitments in
Chen Lve, He manage my shares of Victor Onward Holdings, March Strict
assets 36 months
Feiyan within 36 months from the date new shares list 19,2015 performing
reorganization
and before the date I’ve carried out my
obligations of performance compensation under
this restructuring(subject to whatever is early,
hereinafter referred to as “lock-up periods”). If
the closing price of shares of Victor Onward
Holdings were lower than this issue price for 20
28
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
continuous trading days in 6 months after the
restructuring transaction has been completed, or
the final closing price were lower than this issue
price 6 months after the transaction has been
completed, the lock-up periods of my shares of
Victor Onward Holdings are automatically
prolonged for 6 months. (The above-mentioned
issue price will be calculated according to the
price after the adjustment of ex-dividend, etc. if
ex-dividend behaviors of the company, including
distribution of dividends, giving bonus,
conversion of share capital, rationing shares, and
etc., were happened during the above-mentioned
periods. If the restructuring transaction were
March 19,2015 36 mont hs Strict perfor ming
Shenzhen Victor Onward Textile Industrial Co.,
Ltd. The Third Quarterly Report 2015. 14
investigated by judicial authorities or China
Securities Regulatory Commission due to false
record, misleading statement or major omission of
the information provided or disclosed, I will not
transfer my shares of the company before the
conclusion of the case has been made clear. After
the above-mentioned lock-up periods, I will sell
or transfer the new shares of the company
acquired from this restructuring following
relevant regulations of China Securities
Regulatory commission and Shenzhen Stock
Exchange.
Shares acquired by matching funds raised: “I will
not transfer the new shares of Victor Onward
Holdings acquired through this issuing by any
way, including but not limited to the public
March Strict
Chen Lve transfer through the stock market or by 36 months
19,2015 performing
agreement, within 36 months from the date new
shares list. If regulation rules or regulators have
longer requirements for lock-up periods, it should
be executed accordingly.
Up to the issue day of the letter, I and other
corporations controlled by me haven’t possessed
funds of Sino Great Wall; After the transaction is March Strict
Chen Lve Long-term
completed, I and other companies controlled by 19,2015 performing
me (if any), except for listed companies and their
holding subsidiaries, will not possess the funds of
29
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
listed companies or Sino Great Wall by any way,
including cash in advance, other expenses, direct
or indirect loans, assumption, etc. and try our best
to avoid fund intercourse with listed companies or
Sino Great Wall, which has nothing to do with
normal operations. If Sino Great Wall got
penalized by government administration
departments due to the money lending which was
happened before the transaction, I will bear the
total compensation for the company’s loss
resulting from it by cash in order to guarantee
Sino Great Wall won’t suffer any loss.
Meanwhile, I will actively urge Sino Great Wall
to establish complete inner control system and
funds management system within lawful
authority.
In view of the fact that the houses rented by Sino
Great Wall and it’s son subsidiaries, subsidiaries,
haven’t rental registration, I promise, if Sino
Great Wall and its son subsidiaries, subsidiaries, March Strict
Chen Lve Long-term
were penalized by real estate management 19,2015 performing
department or suffered other losses resulting from
it, I agree to compensate the loss of the company
by cash.
During the reporting period, the project which
Sino Great Wall is involved in is the decoration
engineering construction project of Libo Grand
Hotel (hereinafter referred to as “Libo project”)
which the company contracted before the bidding
process. Sino Great Wall is not involved in any
other projects except for Libo project before
bidding process. As to the violating issues existed
in the Libo project, I promise as follows: if Sino March Strict
Chen Lve Long-term
Great Wall got penalized by government 19,2015 performing
administration departments or suffered any
economic loss resulted from it, I will compensate
the company by cash; Meanwhile, I, within lawful
authority, will also promise to urge the company
to undertake related construction projects legally
so as to avoid violating issues happened before
implementation of bidding process, i.e., at the
time for construction again.
“1. Up to October 13th,2014, the related expenses March Strict
Chen Lve Long-term
of the litigation and arbitration cases, including 19,2015 performing
30
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
the actual price, compensation, penalty, ligation
costs, etc. which the parent-subsidiary companies
of Sino Great Wall needs to pay caused by the
final results of ligation and arbitration cases,
exceed the amount of liabilities which recognized
in the “Audit Report” made for Sino Great Wall
by Ruihua CPA (Special Ordinary Partnership) on
the basis of the audit base day of July 31st, 2014,
I promise to bear the balance by cash
unconditionally so as to guarantee the
parent-subsidiaries of Sino Great Wall won’t
suffer any loss. 2. This commitment letter is
irrevocable.
1. On condition that ownership defect exists in the
lease of house property of parent-subsidiary
companies of Sino Great Wall and its subsidiary
corporation, which resulted in inability for
parent-subsidiary companies of Sino Great Wall
and its subsidiary corporation to continue leasing
this house property but having to relocate, or
parent-subsidiary companies of Sino Great Wall
and its subsidiary corporation can’t timely find
suitable workplace for lawful operation in related
area, I will undertake to compensate by cash for
parent-subsidiary companies of Sino Great Wall’s
March Strict
Chen Lve losses which are caused by operation and finance Long-term
19,2015 performing
due to the above-mentioned matters. 2. I
undertake to unconditionally bear the relevant
fines by cash for parent-subsidiary companies of
Sino Great Wall on condition that the rental house
property of parent-subsidiary companies of Sino
Great Wall and its subsidiary corporation is in
absence of handling procedures for filing house
leasing ,which resulted in that parent-subsidiary
companies of Sino Great Wall and its subsidiary
corporation are fined by property administrative
department. 3.The commitment letter is
irrevocable.
“In condition that parent-subsidiary companies of
Sino Great Wall or its son subsidiary haven’t paid
social security or housing fund for staff according March Strict
Chen Lve Long-term
to law, which resulted in any losses to Sino Great 19,2015 performing
Wall , including the competent authorities’
requirement for Sino Great Wall or its subsidiary
31
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
to make supplementary payment, to be punished
and resourced, I will bear by full-amount cash for
the fee of supplemental payment and the expense
and fee for being punished or resourced, which is
to guarantee Sino Great Wall and its subsidiary to
avoid suffering from any loss ”.
“At present, Suzhou Lvbang has possessed one
state-own land use right, of which the land
certificate is Suzhou Guo Yong(2014)
No.Y2014086”, locates in Danan Village, Dadian
Town, Yongqiao District, Suzhou City with
32,966 square meters of area and the purpose for
industry. Suzhou Lvbang possesses its own
factory with 9,843.87 square meters of area
above-mentioned, which is the building reserved
on the former selling land. Suzhou Lvbang is
carrying out refurnishing and reconstruction for
this factory and has acquired “License of
Construction Land Planning ”with
No.2014-08-001 approved and issued by
Yongqiao District, Suzhou City’s housing and
March Strict
Chen Lve rural construction bureau, of which other Long-term
19,2015 performing
examination and approval procedures of
construction are in the process of handling “I
undertake to actively supervise and urge Suzhou
Lvbang on handling procedures of the approval
process involved with factor refurnishing and
reconstruction, and which is suffered from
administrative punishment by relevant competent
authorities in reason of claiming certificate of
title, or in which any dispute or controversy exist
in construction and ownership, which shall be my
responsibility to carry out solution, and I
undertake to compensate by cash for Suzhou
Lvbang’s losses which are due to this matter,
guaranteeing no losses occur to Sino Great Wall
and Suzhou Lvbang for this matter.
“According to the “Agreement of Significant
Asset Replacement and Issue of Share to Buy
Asset”(hereinafter referred to as “Agreement”)
March Strict
Chen Lve signed among Victor Onward Holdings, all Long-term
19,2015 performing
shareholders of Sino Great Wall and Union
Development Group Co., Ltd (hereinafter referred
to as“ Union Group”) on October 13, 2014, all the
32
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
creditor’s rights and liabilities related to place-out
asset before the delivery date of Victor Onward
Holdings shall be Union Group’s responsibility to
carry out solution; After the asset delivery date, if
any losses occur to Victor Onward Holdings in
reason of the liability transfer of asset delivery,
personnel placement, unsettled dispute or
controversy and other compensation related to
place-out asset, payment obligation and
punishment, Union Group or the specified third
party shall sufficiently compensate all losses for
Victor Onward Holdings for the above matters. I
undertake, if Union Group and the specified third
party refuse to compensate the losses caused by
the above mentioned matters for Victor Onward
Holdings according to the“ Agreement”, I will
compensate by cash for the Victor Onward
Company within 5 working day in advance.
Meanwhile, I will reserve the resource rights for
Union Group and the specified third party “.
According to“ Agreement of Shenzhen Victor
Onward Textile Industrial Co., Ltd., Chen Lve
and He Feiyan Concerning on Performance
Compensation” and its supplemental agreement ,
Chen Lve’s promised Sino Great Wall that the net
profit deducted by incidental losses and
attributable to the parent companies’ owners after
Chen Lve, He May Strict
audition of 2015, 2016 and 2017 shall be Long-term
Feiyan 11,2015 performing
respectively more than RMB 345.8 million, RMB
438.5 million and RMB 538.2 million. If the net
profit of Sino Great Wall is less than the promised
net profit mentioned above , Chen Lve and He
Feiyan will compensate for listed company in
accordance with “Performance Compensation
Agreement” and its supplemental agreement
Chen Lve; He 1. This reorganization is planned to place in asset.
Feiyan, Wuxi At present, complete separation has existed
Hengtai Jiuding between me or other enterprises under my
Assets possession (if any) and the listed company in
September Strict
Management staff, asset, finance, institution and business of Long-term
30,2015 performing
Centre Sino Great Wall. Independence exists in both
（LP）;Yantai staff, asset, finance, institution and business and
Zhaoxuan Yuantai no confusion exists. 2. I undertake, after this
Jiuding Venture reorganization, to ensure the continued complete
33
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
Investment Centre separation between me or other enterprises under
（LP）;Suzhou my possession(if any) and the listed company in
Tianyao staff, asset, finance, institution and business,
Zhongshan sustaining the independence in the listed
Jiuding company’s staff, asset, finance, institution and
Investment Centre business, as follows: (1).The Ensurance of
（LP）;Jiaxing Independence for Listed Company’s Personnel
Jiahe Jiuding Ensure that the general manager, the vice-general
Investment Centre manger, the chief financial officer, the board
（LP）; secretary and the senior executives of the
Company only accept salary in listed company,
including no holding of any post except director
and supervisor in my enterprise or other
enterprises under my possession. 2.Ensure the
complete independence exists among the listed
company’s labor, personnel, and salary
management and me. 3. The director, supervisor,
general manager and other senior executives
recommended by me have all been through the
legal procedures, and I will not intervene the
company’s board and the shareholder’s decision
for appointing and dismissing personnel by
exercising official power. (2)The Ensurance of the
Asset Independence of Listed Company 1.Ensure
that the listed company possesses business system
related to operation and the relevant
completely-independent asset. 2.Ensure that no
occupation of mine exists in capitals and assets of
the listed company. 3.The Ensurance of the
Financial Independence of Listed Company
1.Ensure that the independent finance department
and the independent financial calculating system
set up by the listed company, which possess
normative and independent financial and
accounting rules. 2. Ensure that the listed
company independently opens a bank account,
not sharing the same bank account with me.
3.Ensure that the financial staff of the listed
company holds no part-time post in my enterprise
and other enterprises under my possession. 4.
Ensure that the listed company pays taxes
according to law. 5. Ensure that the listed
company makes the financial decision-making
independently, I will not intervene the utilization
34
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
of the listed company’s capital. (4)The Ensurance
of the Institutional Independence of Listed
Company 1.Ensure that the listed company sets
up perfect governance structure for the share
company’s legal person, which possesses
independent and complete institutional framework
2.Ensure that the shareholder’s meeting, the board
of director, the independent director, the
supervisor and the general managers exercise
official powers according to laws, regulations and
articles of incorporation (5)The Ensurance of the
Business Independence of Listed Company 1.
Ensure that the listed company possesses the
asset, staff, qualification and ability for
independently holding business activities, which
possesses the independent, autonomous and
sustain operation ability catering to the market. 2.
Ensure that I will not intervene the listed
company’s business activities except exercising
shareholder’s rights. 3.Ensure that I or other
enterprises under my possession will avoid
working on the listed company’s main business
which possesses substantial competition. 4.
Ensure to reduce the related transaction between
me and the listed company or between other
enterprises under my possession and the listed
company as much as possible; When confirming
necessary but unavoidable related transaction, I
will ensure the fair operation according to the
principle of market culture and the fair price, and
fulfill the transaction procedures and the
obligation of disclosing information according to
relevant laws and regulations and normative
document.
Wuxi Hengtai “Once I or our unit acquire the newly-added share
Jiuding Assets of Victor Onward Company through this
Management transaction, no transfers will occur in any way
Centre（LP）; within 12 months from the listing date, including
Yantai Zhaoxuan but not limited to public transfer by securities March Strict
12 months
Yuantai Jiuding market or transfer by agreement, and no 19,2015 performing
Venture entrusting for others to manage my holding share
Investment Centre of Victor Onward Holdings . Once the
（LP）;Suzhou above-mentioned lockup period expires, I will
Tianyao implement the selling or transferring of the
35
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
Zhongshan newly-added share of Victor Onward Holdings
Jiuding according to the relevant provision of CSRC and
Investment Centre SZSE.
（LP）; Jiaxing
Jiahe Jiuding
Investment Centre
（LP）
“1.Before this reorganization, the fairness and
reasonableness of pricing and the legitimacy and
effectiveness of decision-making procedure exist
in the transaction(if any) between me or the
enterprise under my possession(if any) and Sino
Great Wall which is planned to place asset in, no
Chen Lve; He related transaction with obvious unfairness
Feiyan,Wuxi exists ; 2.After this reorganization, I or the
Hengtai Jiuding enterprise under my possession will avoid and
Assets reduce the related transaction with listed company
Management as much as possible. As for any unavoidable or
Centre（LP）; reasonable related transaction, I or the enterprise
Yantai Zhaoxuan under my possession will sign the agreement
Yuantai Jiuding according to laws and fulfill the lawful procedure,
Venture and fulfill relevant approval procedure for internal
March Strict
Investment Centre decision-making and timely fulfill the obligation Long-term
19,2015 performing
（LP）;Suzhou of disclosing information according to law,
Tianyao following relevant laws, regulations, other
Zhongshan normative documents and articles of listed
Jiuding company, which is to guarantee the fairness and
Investment Centre reasonableness in related transaction pricing, to
（LP）; Jiaxing guarantee the fairness of transaction condition and
Jiahe Jiuding to guarantee not to utilize the related transaction
Investment Centre to illegally transfer the capital and profit of listed
（LP） company, and not to utilize this transaction to
engage in any behaviors which will cause any
losses to listed company or other shareholder’s
legitimate rights. Once I violate the above
promises and cause losses to the listed company, I
will compensate the listed company for the losses
caused by the this matter.
During the assets reorganization, the house
property and land without property certificate in
Union
the disposed assets within the plant area of Kuixin March Strict
Development Long-term
Community of Kuichong Street of Longgang 19,2015 performing
Group Co., Ltd.
District and the expected compensations, as well
as the expected compensations concerning to the
36
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
regaining of plots planned as schools within the
right of land use of Nanyou Industrial Park of
Nanshan District have not been recorded in the
assessment. Therefore, Union Group promises
that after the reorganization, if Union or a third
party appointed by Union receives compensations
or incomes related toabove-mentioned disposed
assets which are house property and land without
property certificate as well as regaining of plots
planned as schools, Union will return the benefits
to Victor Onward Holdings, in 10 working days
since the collection. The actual costs and fees
during the possession of the house property and
land and the paid as well as the unpaid but
necessary costs and fees for the reception of the
above-mentioned benefits for Union Group or its
third party will be deducted from the income. The
specific benefits and payable costs and fees
should be confirmed jointly by Union Group and
Victor Onward Holdings based on the actual
situations. （Notes:On June 25, 2015,All
shareholders of Victor Onward Holdings, Union
Group and Sino Great Wall Signed supplementary
agreement, and specified that the land and houses
without ownership certificate of Victor Onward
Holdings located at the factory area of Kuixin
community of Kuichong street office of
Longgang district (the land area is about 50,000
square meters, the built-up area of houses is about
25,000 square meters, among them about 18,000
square meters of buildings at built-up area are
within the plan of removal and collection of
government，hereinafter referred as
“undocumented property) still belongs to Victor
Onward Holdings. And the benefits and risks of
the real estate without certificate are enjoyed and
assumed by Victor Onward Holdings.”
According to the Term 5.5.3 of Agreement on
Major Asset Replacement and Asset Purchase
Union Through Issuing Shares (hereinafter referred to as
March Strict
Development Agreement) signed on October 13, 2014 by the Long-term
19,2015 performing
Group Co., Ltd company and all shareholders of Victor Onward
Co. Ltd.. and Sino Great Wall, Victor Onward
Holdings should obtain the letter of approval
37
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
concerning the transferred debts of the disposed
assets from the creditor (including the guarantee,
similarly hereinafter) before the date of assets
delivery. In the situation of debts on Victor
Onward Holdings due to the absence of creditor’s
consent, the company or the third party appointed
by the company is in charge of paying off debts or
reaching agreement on the solution with the
creditor. When there are losses caused by
improper solutions of the company or the third
party appointed by the company, the company or
the third party appointed by the company will
fully compensate for the caused losses of Victor
Onward Holdings in 5 working days after
receiving the notice. According to the Term 5.5.4
of Agreement, after the date of assets delivery,
any compensations, obligations of payment and
penalties caused by disposed assets as well as
unsettled disputes in Victor Onward Holdings will
be undertaken and solved by the company or the
third party appointed by the company, and Victor
Onward Holdings assumes no responsibility.
When there are losses caused by it, the company
or the third party appointed by the company will
fully compensate for the caused losses of Victor
Onward Holdings in 5 working days after
receiving the notice. According to the Term 5.6.1
of Agreement and based on the principle of “staff
arrangement according to the assets”, the labor
relations, social insurance relations including
pension, medical treatment, unemployment,
working injury and maternity, and other liable
welfare and salary of all the staff in Victor
Onward Holdings. (including but not limited to
on-post Shenzhen Victor Onward Textile
Industrial Co., Ltd. The Third Quarterly Report
2015. 25 employees, employees awaiting job
assignments, retired employees, retained
employees with suspend salary, transferred
employees, and temporary employees, etc) will be
transferred to the company or the third party
appointed by the company. Compensations or
related matters (if any) due to the termination of
labor relationship in advance with Victor Onward
38
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
Holdings, the company or the third party
appointed by the company will be in charge of the
payment. The company promises that for the
losses caused by matters such as the
above-mentioned debt transfers of disposed
assets, personnel arrangement, unsettled disputes,
potential debts, payment obligations and
penalties, the company or the third party
appointed by the company will fully compensate
for the losses of Victor Onward Holdings due to
the above-mentioned matters based on the
Agreement in cash.
Commitments
make in initial
No No No No
public offering or
re-financing
Other
commitments for
No No \No No
medium and small
shareholders
Completed on
Yes
time(Y/N)
If the
commitments is
not fulfilled on
time, shall explain No
the specify reason
and the next work
plan
XI. Particulars about engagement and disengagement of CPAs firm
Whether the semi-annual financial report had been audited?
□ Yes √ No
The semi-annual financial report has not been audited.
XII. Punishment and Rectification
□ Applicable √ Not applicable
39
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
There was no any punishment and rectification of the Company in the reporting period.
XIII. Reveal of the delisting risks of illegal or violation
□ Applicable √ Not applicable
There was no any delisting risk of illegal or violation of the Company in the reporting period.
XIV. Explanation about other significant matters
√ Applicable □Not applicable
On June 24, 2016, the company published a notice that the company is planning the item of non-public
share-issuing, therefore the trade of the company’s share shall be suspended from June 24, 2016. On July 7, 2016,
the Proposal on the Company’s Non-public A-share Issuance to Specific Objects and the relevant proposals were
examined and approved in the 10th board meeting of the 7th session board of directors, therefore the trade of the
company’s shares shall be restored from July 11, 2016. The Proposals related to the company’s non-public A-share
issuance were examined and approved in the 2016 second extraordinary general shareholder meeting on July 25,
2016.
XV. Issuance of corporate bonds
Whether the company has corporate bonds that have been publicly issued and listed on the stock exchange, and
not yet due or due but not folly cashed on the approval date of annual report
No.
VI. Change of share capital and shareholding of Principal Shareholders
1.Changes in share capital
In shares
Before the change Increase/decrease（+，-） After the Change
Amount Proporti Bon
Share Capitalization of
on us Othe Proportio
allotm common reserve Subtotal Quantity
shar r n
ent fund
es
I. Share with conditional
277,968,976 62.20% 778,313,133 778,313,133 1,056,282,109 62.20%
subscription
1.State-owned shares 0 0.00% 0 0
2.Staee-owned legal
0 0.00% 0 0
person shares
3.Other domestic shares 277,968,976 62.20% 778,313,133 778,313,133 1,056,282,109 62.20%
Of which：Domestic legal
99,888,348 22.35% 279,687,374 279,687,374 379,575,722 22.35%
person shares
Domestic natural person 178,080,628 39.85% 498,625,758 498,625,758 676,706,386 39.85%
40
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
shares
4.Share held by foreign
0 0.00% 0 0
investors
Of which：Foreign legal
0 0.00% 0 0
person shares
Foreign natural person
0 0.00% 0 0
shares
II. Shares with
168,937,606 37.80% 473,025,296 473,025,296 641,962,902 37.80%
unconditional subscription
1.Common shares in RMB 99,515,703 22.27% 278,643,968 278,643,968 378,159,671 22.27%
2.Foreign shares in domestic
69,421,903 15.53% 194,381,328 194,381,328 263,803,231 15.53%
market
III. Total of capital shares 446,906,582 100.00% 1,251,338,429 1,251,338,429 1,698,245,011 100.00%
Reasons for share changed:
√ Applicable □Not applicable
During the reporting period, upon the base of total share capital of 446,906,582 shares on the date of December 31,
2015, 28 shares were increased for every 10 shares to all the shareholders by converting capital reserve into share
capital, therefore the total increased shares by converting capital reserve into share capital were 1,251,338,429
shares, so the total share capital were 1,698,245,011 shares after such share increasing by converting capital
reserve into share capital.
Approval of Change of Shares
√ Applicable □Not applicable
The company’s 2015 annual share increasing plan by converting capital reserve to share capital was examined and
approved in the 2015 annual general shareholder meeting convened by the company on May 6, 2016.
Ownership transfer of share changes
√ Applicable □Not applicable
In June 2016, the company had implemented the company’s 2015 annual share increasing plan by converting
capital reserve to share capital, and the increased A-shares were directly put into the shareholders’ A-share
securities accounts on June 7, 2016. The increased B-shares were directly put into the shareholders’ B-share
securities accounts on June 13, 2016. When the increased shares were registered, the company’s total share capital
was increased to 1,698,245,011 shares.
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to
common shareholders of Company in latest year and period
√ Applicable □Not applicable
On June 7, 2016, the company implemented the plan of 2015 annual profit distribution and share-increasing by
converting capital reserve to share capital, thus the company’s total share capital was changed to 1,698,245,011
shares from 446,906,582 shares. Based on the total share capital after the increasing, the diluted 2015-annual
earnings per share were RMB 0.2041. The net assets per share attributable to the company’s ordinary shareholders
were RMB 0.75.
Other information necessary to disclose for the company or need to disclosed under requirement from security
regulators
41
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
□ Applicable √ Not applicable
Explanation on changes in aspect of total shares, shareholders structures as well as structure of assets and liability
of the Company
√ Applicable □Not applicable
After the company’s implementation on the plan of increasing shares by converting capital reserve to share capital,
the company’s total share capital was changed to 1,698,245,011 shares from 446,906,582 shares.
II. Shareholders and actual controlling shareholder
In Shares
Total number of preferred
Total number of common
shareholders that had restored the
shareholders at the end of the 54,275 0
voting right at the end of the
reporting period
reporting period (if any) (note 8)
Shareholding of shareholders holding more than 5% shares
Proporti Number os share
on of Number of Changes in Amount of Amount of pledged/frozen
Shareholders Nuture of shareholder shares shares held at reporting restricted un-restricted State
held period -end period shares held shares held of Amount
（%） share
Domestic Natural Mortg
Chen Lve 34.33% 582,944,556 429,808,094 582,109,696 834,860 431,760,594
person age
Domestic Non-
Union Holdings
State-owned legal 6.79% 115,295,921 72,154,889 115,295,921
Co., Ltd.
person
STYLE-SUCC
Foreign legal person 5.47% 92,970,910 68,504,881 92,970,910
ESS LIMITED
Shanghai
Financial Domestic Non-
Development State-owned legal 4.49% 76,300,504 56,221,424 76,300,504
Investment person
Fund(LP)
Domestic Natural
He Feiyan 3.23% 54,800,458 40,379,285 54,800,458
person
Jiutai Fund－
Bank of
Communication
s－Jiutai
Huitong No.2 Other 2.50% 42,479,672 31,300,811 42,479,672
specific
customer asset
management
plan
Wuxi Hengtai Domestic Non- 2.26% 38,330,615 28,243,611 38,330,615
42
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
Jiuding Assets State-owned legal
Management person
Centre（LP）
Foshan Haihui
Heying Venture
Domestic Non-
Imvestment
State-owned legal 2.25% 38,150,252 28,110,712 38,150,252
Partnership(Lim
person
ited
Partnership)
Jiangxi Taihao
Domestic Non-
Venture
State-owned legal 1.87% 31,791,879 23,425,595 31,791,879
Investment
person
Centre(LP）
Yantai
ZhaoxuanYuan
Domestic Non-
tai Jiuding
State-owned legal 1.87% 31,742,745 23,389,391 31,742,745
Venture
person
Investment
Centre(LP)
Strategy investors or general legal
person becomes top 10 shareholders due
None
to rights issued (if applicable)See Notes
3）
Chen Lve and He Yanfei are consortium officers; Wuxi Hengtai Jiuding Assets
Explanation on associated relationship Management Centre （LP）and Yantai Zhaoxuan Yuantai Jiuding Venture Investment
or concerted action of the above Centre（LP）are consortium officers,The other tradable shareholders neither knew whether
shareholders there exists associated relationship between them
Shareholding of top 10 shareholders of unrestricted shares
Quantity of unrestricted shares held at the end of Share type
Name of the shareholder
the reporting period Share type Quantity
Union Holdings Co., Ltd. 115,295,921 RMB Common shares 115,295,921
Foreign shares placed
STYLE-SUCCESS LIMITED 92,970,910 92,970,910
in domestic exchange
Foreign shares placed
Rich Crown Investment Co., Ltd. 23,235,313 23,235,313
in domestic exchange
Liuzhou Jiali Real estate
13,350,040 RMB Common shares 13,350,040
Development Co., ltd.
Foreign shares placed
Zeng Ying 6,536,000 6,536,000
in domestic exchange
Chanan Fund－China Everbright
6,288,828 RMB Common shares 6,288,828
Bank-Liu Wenjin
Foreign shares placed
KGI ASIA LIMITED 4,991,274 4,991,274
in domestic exchange
43
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
China Galaxy International Securities Foreign shares placed
3,659,829 3,659,829
(Hongkong) Co., Ltd. in domestic exchange
Foreign shares placed
Song Wenguang 3,444,966 3,444,966
in domestic exchange
Xingzheng Securities Asset
Management－China Everbright Bank
3,166,110 RMB Common shares 3,166,110
－No.57 collectin of assets management
plan for Xingzheng Securities asset
Explanation on associated relationship
or consistent action among the top 10
shareholders of non-restricted The controlling shareholder of the above-mentioned largest shareholder Shenzhen Union
negotiable shares and that between the Holdings Ltd. and third shareholder Rich Crown Investment Co., Ltd.. Is Union
top 10 shareholders of non-restricted Development Group Ltd.
negotiable shares and top 10
shareholders
Notes to the shareholders involved in
financing securities (if any)(See Notes None
4)
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a
buy-back agreement dealing in reporting period.
□ Yes √ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company
have no buy –back agreement dealing in reporting period.
III. Change of the controlling shareholder or the actual controller
Change of the controlling shareholder in the reporting period
□ Applicable √ Not Applicable
There was no any change of the controlling shareholder of the Company in the reporting period.
Change of the actual controller in the reporting period
□ Applicable √ Not applicable
There was no any change of the actual controller of the Company in the reporting period.
IV. Particulars on shareholding increase scheme during the reporting period proposed or implemented by
the shareholders and act-in-concert persons
√ Applicable □Not applicable
Name of shareholder / The planned Actual increased
Actual increased The initial date of disclosure of
Name of person acting increase proportion share-holding
shareholding proportion increasing share-holdings plan
in concert for the stake holding quantity
2.00% 422,200 0.09% July 7, 2015
Chen Lve
Description of other information
44
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
On July 7, 2015, the company disclosed the Announcement on Increasing Share-holding Plan by the Company’s
Potential Actual Controller of Chenlue. On July 7, 2015, the company received a written notice from Mr. Chenlue,
who is confident in the company’s future development based on the understandings of the current capital market
situation and planned, by the means allowed by Shenzhen Stock Exchange((including but not limited to
competitive transaction , block transaction, etc.), to increase the share-holding of the company’s A-shares and/or
B-shares of no more than 2% stake of the company’s total share capital which was based on the total share capital
after the major assets swap and the share issuance to purchase assets. According to the relevant provisions of
Measures for the Administration of the Takeover of Listed Companies, such increased stake shall not be lessened
within 6 months commenced form the date of completion of the stake-holding increasing. As of July 7, 2016, Mr.
Chenlue totally increased his stake-holding of 422,200 shares (Such quantity of the shares was before the
implementation of 2015 annual profit distribution plan, while after the implementation of 2015 annual profit
distribution plan, accordingly such quantity shall be 1,604,360 shares), which accounted for 0.094% of the
company’s total share capital.
VII. Situation of the Preferred Shares
□Applicable √Not applicable
The Company had no preferred shares in the reporting period
45
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
VIII. Information about Directors, Supervisors and Senior Executives
I. Change in shares held by directors, supervisors and senior executives
√ Applicable □Not applicable
Amount of Number of Number of
Amount of
shares restricted restricted Number of
Shares held at shares Shares held
decreased stock stock restricted stock
Office the increased at at the
Name Position at the granted at granted at granted at the
status year-begin(sh the reporting year-ending
reporting the the reporting year-ending(sh
are) period(share （share）
period(sha year-begin period(share are)
)
re) . share) )
Board
chairman,
Chen Lve In office 153,136,462 428,782,094 0 582,944,556 0 0 0
General
Manager
Hu
Director In office 0 0 0 0 0 0 0
Yongfeng
Director,D
eputy
Li Erlong In office 3,000 8,400 0 11,400 0 0 0
General
Manager
Director,D
Liang eputy
In office 0 0 0 0 0 0 0
Rong General
Manager
Wang Lei Director In office 0 0 0 0 0 0 0
Ban Bin Director In office 0 0 0 0 0 0 0
Tang Independe
In office 0 0 0 0 0 0 0
Jianxin nt Director
Zhang Independe
In office 0 0 0 0 0 0 0
Yufeng nt Director
Jiang
Independe
Chonggua In office 0 0 0 0 0 0 0
nt Director
ng
Chairman
of the
Dong
supervisor In office 0 0 0 0 0 0
Binggen
y
committee
Huang
Supervisor In office 0 0 0 0 0 0 0
Shengde
Wu Supervisor In office 0 0 0 0 0 0 0
46
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
Xiaoming
Deputy
Song
General In office 0 0 0 0 0 0
Chenling
Manager
Cui Hongli CFO In office 0 0 0 0 0 0 0
Secretary
Yang to the
In office 0 0 0 0 0 0 0
Chunling board of
directors
Total -- -- 153,139,462 428,790,494 0 582,955,956 0 0 0
II. Changes in directors, supervisors and senior management staffs
□ Applicable √ Not Applicable
Directors, supervisors and senior management staff did not change in the reporting period. For details, see the
2015 annual report.
IX. Financial Report
1. Audit report
Has this semi-annual report been audited?
□ Yes √ No
The semi-annual financial report has not been audited.
II. Financial statements
Currency unit for the statements in the notes to these financial statements:RMB
1.Consolidated Balance sheet
Prepared by : Sino Great Wall Co., Ltd.
In RMB
Items Year-end balance Year-beginning balance
Current asset：
Monetary fund 1,114,361,163.46 695,384,561.31
Settlement provision
Outgoing call loan
Financial assets measured at fair
value with variations accounted into 1,102,961.04
current income account
Derivative financial assets
Bill receivable 210,891,319.69 220,448,747.94
Account receivable 3,162,231,825.59 2,352,808,087.33
47
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
Prepayments 117,820,004.51 77,707,568.38
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts
receivable
Interest receivable
Dividend receivable
Other account receivable 467,579,684.04 239,952,886.10
Repurchasing of financial assets
Inventories 245,856,552.73 168,133,668.91
Assets held for sales
Non-current asset due in 1 year 14,020,966.88 15,717,270.60
Other current asset 13,633,979.33 14,138,411.87
Total of current assets 5,346,395,496.23 3,785,394,163.48
Non-current assets：
Loans and payment on other’s behalf
disbursed
Disposable financial asset
Expired investment in possess
Long-term receivable
Long term share equity investment
Property investment
Fixed assets 95,739,662.33 43,846,215.63
Construction in progress 2,101,034.12 10,016,928.24
Engineering material
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 107,478,930.17 9,267,746.33
R & D petrol
Goodwill 33,981,631.40 6,724,316.91
Long-germ expenses to be amortized 36,217,955.33 18,909,785.69
Differed income tax asset 59,287,367.87 47,950,278.07
Other non-current asset 100,540,012.47 95,353,390.28
Total of non-current assets 435,346,593.69 232,068,661.15
Total of assets 5,781,742,089.91 4,017,462,824.63
Current liabilities
Short-term loans 1,786,708,647.08 225,408,496.07
Loan from Central Bank
Deposit received and hold for others
Call loan received
Financial liabilities measured at fair
value with variations accounted into
48
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
current income account
Derivative financial liabilities
Bill payable 314,222,954.89 143,410,167.17
Account payable 1,015,554,995.43 1,332,619,954.77
Advance payment 73,606,960.67 64,963,842.60
Selling of repurchased financial assets
Fees and commissions receivable
Employees’ wage payable 23,317,399.59 12,669,619.20
Tax payable 247,445,787.75 284,826,290.11
Interest payable 4,210,888.11 527,969.26
Dividend payable
Other account payable 261,367,548.32 635,200,976.60
Reinsurance fee payable
Insurance contract provision
Entrusted trading of securities
Entrusted selling of securities
Liabilities held for sales
Non-current liability due in 1 year 25,175,567.33 7,135,752.00
Other current liability 68,823,529.00
Total of current liability 3,820,434,278.17 2,706,763,067.78
Non-current liabilities：
Long-term loan 420,458,334.52 30,140,649.14
Bond payable
Including：preferred stock
Sustainable debt
Long-term payable
Long=term payable employees’s
remuneration
Special payable
Expected liabilities
Differed income
Differed income tax liability 28,759,092.55 15,444.16
Other non-current liabilities
Total non-current liabilities 449,217,427.07 30,156,093.30
Total of liability 4,269,651,705.24 2,736,919,161.08
Owners’ equity
Share capital 1,698,245,011.00 446,906,582.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves -1,301,706,291.22 -50,367,862.22
Less：Shares in stock
Other comprehensive income -132.50
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Sino Great Wall Co., Ltd. The Semi-annual Report 2016
Special reserves 74,370,126.02 46,014,941.54
Surplus reserves 84,394,441.23 84,394,441.23
Common risk provision
Undistributed profit 959,222,073.64 755,308,636.19
Total of owner’s equity belong to the
1,514,525,228.17 1,282,256,738.74
parent company
Minority shareholders’ equity -2,434,843.50 -1,713,075.19
Total of owners’ equity 1,512,090,384.67 1,280,543,663.55
Total of liabilities and owners’ equity 5,781,742,089.91 4,017,462,824.63
Legal Representative: Chen Lve
Person in charge of accounting：Cui Hongli
Accounting Dept Leader: Cui Hongli
2. Balance sheet of Parent Company
In RMB
Items Year-end balance Year-beginning balance
Current asset：
Monetary fund 264,417,393.06 239,145,251.31
Financial assets measured at fair value
with variations accounted into current
income account
Derivative financial assets
Bill receivable
Account receivable 29,083.30
Prepayments 761,881.82
Interest receivable
Dividend receivable
Other account receivable 1,304,458,764.96
Inventories
Assets held for sales
Non-current asset due in 1 year
Other current asset 140,807.87
Total of current assets 1,569,778,847.71 239,174,334.61
Non-current assets：
Disposable financial asset
Expired investment in possess
Long-term receivable
Long term share equity investment 3,176,451,536.66 3,079,451,536.66
Property investment
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Sino Great Wall Co., Ltd. The Semi-annual Report 2016
Fixed assets 5,008.00
Construction in progress
Engineering material
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets
R & D petrol
Goodwill
Long-germ expenses to be amortized 23,234,735.71
Deferred income tax asset 382.68 382.68
Other non-current asset
Total of non-current assets 3,199,691,663.05 3,079,451,919.34
Total of assets 4,769,470,510.76 3,318,626,253.95
Current liabilities
Short-term loans 1,255,000,000.00
Financial liabilities measured at fair
value with variations accounted into
current income account
Derivative financial liabilities
Bill payable
Account payable
Advance payment
Employees’ wage payable 1,066,439.92
Tax payable 97,163,195.11 98,150,372.30
Interest payable 3,150,083.33
Dividend payable
Other account payable 721,700.86 803,339.56
Liabilities held for sales
Non-current liability due in 1 year
Other current liability
Total of current liability 1,357,101,419.22 98,953,711.86
Non-current liabilities：
Long-term loan 200,000,000.00
Bond payable
Including：preferred stock
Sustainable debt
Long-term payable
Employees’ wage payable
Special payable
Expected liabilities
Deferred income
Deferred income tax liability
51
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
Other non-current liabilities
Total of Non-current liabilities 200,000,000.00
Total of liability 1,557,101,419.22 98,953,711.86
Owners’ equity
Share capital 1,698,245,011.00 446,906,582.00
Other equity instrument
Including：preferred stock
Sustainable debt
Capital reserves 1,237,956,472.37 2,489,294,901.37
Less：Shares in stock
Other comprehensive income
Special reserves
Surplus reserves 26,309,287.00 26,309,287.00
Undistributed profit 249,858,321.17 257,161,771.72
Total of owners’ equity 3,212,369,091.54 3,219,672,542.09
Total of liabilities and owners’ equity 4,769,470,510.76 3,318,626,253.95
3.Consolidated Income Statement
In RMB
Items Report period Same period of the previous year
I. Income from the key business 1,953,574,755.51 2,081,209,219.16
Incl：Business income 1,953,574,755.51 2,081,209,219.16
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 1,662,031,476.57 1,855,070,717.88
Incl：Business cost 1,460,727,131.33 1,690,684,183.21
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Insurance policy dividend paid
Insurance policy dividend paid
Reinsurance expenses
Business tax and surcharge 9,026,652.11 44,597,636.60
Sales expense 9,259,264.24 7,502,905.30
Administrative expense 112,993,754.29 64,838,318.67
Financial expenses 70,024,674.60 17,908,021.84
Asset impairment loss 78,527,096.27 29,539,652.25
Add：Gains from change of fir value
25,148.61
（“-”for loss）
Investment gain（“-”for loss） 46,868.49
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Sino Great Wall Co., Ltd. The Semi-annual Report 2016
Incl: investment gains from affiliates
Gains from currency exchange（“-”for
loss）
III. Operational profit（“-”for loss） 213,063,051.16 226,163,649.89
Add ：Non-operational income 29,133,269.00 379,419.84
Including：Income from disposal of
non-current assets
Less：Non business expenses 2,755,912.00 33,439.34
Incl：Loss from disposal of non-current
31,839.34
assets
IV.Total profit(“-”for loss) 239,440,408.16 226,509,630.39
Less：Income tax expenses 37,862,759.83 61,167,289.27
V. Net profit 201,577,648.33 165,342,341.12
Net profit attributable to the owners of
202,299,416.64 165,342,341.12
parent company
Minority shareholders’ equity -721,768.31
VI. Other comprehensive income -132.50 0.00
Net of profit of other comprehensive inco
me attributable to owners of the parent co -132.50 0.00
mpany.
（I）Other comprehensive income items
that will not be reclassified into
gains/losses in the subsequent
accounting period
1.Re-measurement of defined benefit pla
ns of changes in net debt or net assets
2.Other comprehensive income under the
equity method investee can not be reclass
ified into profit or loss.
（II）
Other comprehensive income that will b -132.50 0.00
e reclassified into profit or loss.
1.Other comprehensive income under the
equity method investee can be reclassifie
d into profit or loss.
2.Gains and losses from changes in fair v
alue available for sale financial assets
3.Held-to-maturity investments reclassifi
ed to gains and losses of available for sal
e financial assets
4.The effective portion of cash flow hedg
es and losses
5.Translation differences in currency fina
-132.50 0.00
ncial statements
6.Other
53
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
7.Net of profit of other comprehensive i
ncome attributable to Minority 0.00 0.00
shareholders’ equity
VII. Total comprehensive income 201,577,515.83 165,342,341.12
Total comprehensive income attributable
202,299,284.14 165,342,341.12
to the owner of the parent company
Total comprehensive income attributable
-721,768.31
minority shareholders
VIII. Earnings per share
（I）Basic earnings per share 0.12 0.10
(II)Diluted earnings per share 0.12 0.10
The current business combination under common control, the net profits of the combined party before achieved ne
t profit of RMB 198,300,449.93, last period the combined party realized RMB 165,342,341.12.
Legal Representative:Chen Lve
Person in charge of accounting：Cui Hongli
Accounting Dept Leader: Cui Hongli
4. Income statement of the Parent Company
In RMB
Items Amount in this period Amount in last period
I. Income from the key business 115,940.34 1,917,380.00
Incl：Business cost 0.00 168,586.00
Business tax and surcharge 149,728.00
Sales expense
Administrative expense 13,785,695.93 3,135,693.00
Financial expenses 19,950,608.66 -866,617.00
Asset impairment loss -1,530.70
Add：Gains from change of fir value
（“-”for loss）
Investment gain（“-”for loss）
Incl: investment gains from affiliates
II. Operational profit（“-”for loss） -33,618,833.55 -670,010.00
Add ：Non-operational income 29,071,295.00
Including：Income from disposal of
non-current assets
Less：Non business expenses 2,755,912.00
Incl：Loss from disposal of non-current
assets
III.Total profit(“-”for loss) -7,303,450.55 -670,010.00
Less：Income tax expenses
IV. Net profit（“-”for net loss） -7,303,450.55 -670,010.00
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Sino Great Wall Co., Ltd. The Semi-annual Report 2016
V.Net of profit of other comprehensive i
0.00 40,084.00
ncome
（I）Other comprehensive income items
that will not be reclassified into
40,084.00
gains/losses in the subsequent
accounting period
1.Re-measurement of defined benefit pl
ans of changes in net debt or net assets
2.Other comprehensive income under th
e equity method investee can not be recl
assified into profit or loss.
（II）
Other comprehensive income that will b
e reclassified into profit or loss.
1.Other comprehensive income under th
e equity method investee can be reclassi
fied into profit or loss.
2.Gains and losses from changes in fair
value available for sale financial assets
3.Held-to-maturity investments reclassif
ied to gains and losses of available for s
ale financial assets
4.The effective portion of cash flow hed
ges and losses
5.Translation differences in currency fin
ancial statements
6.Other
VI. Total comprehensive income -7,303,450.55 -629,926.00
VII. Earnings per share：
（I）Basic earnings per share
(II)Diluted earnings per share
5. Consolidated Cash flow statement
In RMB
Items Amount in this period Amount in last period
I.Cash flows from operating activities
Cash received from sales of goods or
805,577,789.73 878,764,409.16
rending of services
Net increase of customer deposits
and capital kept for brother company
Net increase of loans from central bank
Net increase of inter-bank loans from
55
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
other financial bodies
Cash received against original insurance
contract
Net cash received from reinsurance
business
Net increase of client deposit and
investment
Net increase of amount from disposal
financial assets that measured by fair
value and with variation reckoned into
current gains/losses
Net increase of inter-bank fund
received
Net increase of trade financial asset
disposal
Net increase of repurchasing business
Tax returned 3,004.17
Other cash received from business 339,397,760.63
180,660,797.51
operation
Sub-total of cash inflow 1,144,978,554.53 1,059,425,206.67
Cash paid for purchasing of
1,158,556,976.75 988,366,445.02
merchandise and services
Net increase of client trade and advance
Net increase of savings n central bank
and brother company
Cash paid for original contract claim
Cash paid for interest, processing fee
and commission
Cash paid for policy dividend
Cash paid to staffs or paid for staffs 101,231,096.05 69,516,152.17
Taxes paid 86,805,215.28 53,832,357.06
Other cash paid for business activities 1,055,001,225.65 191,506,125.25
Sub-total of cash outflow from business
2,401,594,513.73 1,303,221,079.50
activities
Cash flow generated by business
-1,256,615,959.20 -243,795,872.83
operation, net
II.Cash flow generated by investing
Cash received from investment
12,800,000.00
retrieving
Cash received as investment gains 146,912.79
Net cash retrieved from disposal of
fixed assets, intangible assets, and other 89,678.00
long-term assets
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Sino Great Wall Co., Ltd. The Semi-annual Report 2016
Net cash received from disposal of
subsidiaries or other operational units
Other investment-related cash received
Sub-total of cash inflow due to
12,946,912.79 89,678.00
investment activities
Cash paid for construction of
fixed assets, intangible assets 16,234,590.65 16,557,303.16
and other long-term assets
Cash paid as investment
Net increase of loan against pledge
Net cash received from subsidiaries and
97,000,000.00
other operational units
Other cash paid for investment
3,884.29
activities
Sub-total of cash outflow due to
113,234,590.65 16,561,187.45
investment activities
Net cash flow generated by investment -100,287,677.86 -16,471,509.45
III.Cash flow generated by financing
Cash received as investment
Incl: Cash received as investment from
minor shareholders
Cash received as loans 2,195,182,638.00 348,000,000.00
Cash received from bond placing
Other financing –related ash received 103,516,162.13 177,282,072.41
Sub-total of cash inflow from financing
2,298,698,800.13 525,282,072.41
activities
Cash to repay debts 317,642,499.29 287,031,864.55
Cash paid as dividend, profit, or
36,392,124.49 10,302,041.01
interests
Incl: Dividend and profit paid by
subsidiaries to minor shareholders
561,003,771.39
Other cash paid for financing activities 50,178,511.92
Sub-total of cash outflow due to 915,038,395.17
347,512,417.48
financing activities
1,383,660,404.96
Net cash flow generated by financing 177,769,654.93
IV. Influence of exchange rate
1,620,952.17 -41,620.57
alternation on cash and cash equivalents
57
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
V.Net increase of cash and cash 28,377,720.07
-82,539,347.92
equivalents
Add: balance of cash and cash
582,743,756.81 243,759,954.90
equivalents at the beginning of term
VI ..Balance of cash and cash 611,121,476.88
161,220,606.98
equivalents at the end of term
6. Cash flow statement of the Parent Company
In RMB
Items Amount in this period Amount in last period
I.Cash flows from operating activities
Cash received from sales of goods or
139,273.00 1,917,380.00
rending of services
Tax returned
Other cash received from business
578,645,723.03 2,058,967.00
operation
Sub-total of cash inflow 578,784,996.03 3,976,347.00
Cash paid for purchasing of
merchandise and services
Cash paid to staffs or paid for staffs 132,268.03 781,594.00
Taxes paid 1,313,588.98 662,064.00
Other cash paid for business activities 1,893,003,110.13 3,715,030.00
Sub-total of cash outflow from business
1,894,448,967.14 5,158,688.00
activities
Cash flow generated by business
-1,315,663,971.11 -1,182,341.00
operation, net
II.Cash flow generated by investing
Cash received from investment
retrieving
Cash received as investment gains
Net cash retrieved from disposal of
fixed assets, intangible assets, and other
long-term assets
Net cash received from disposal of
subsidiaries or other operational units
Other investment-related cash received
Sub-total of cash inflow due to
investment activities
Cash paid for construction of
fixed assets, intangible assets
and other long-term assets
58
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
Cash paid as investment
Net cash received from subsidiaries and
97,000,000.00
other operational units
Other cash paid for investment
activities
Sub-total of cash outflow due to
97,000,000.00
investment activities
Net cash flow generated by investment -97,000,000.00
III.Cash flow generated by financing
Cash received as investment
Cash received as loans 1,455,000,000.00
Cash received from bond placing
Other financing –related ash received
Sub-total of cash inflow from financing
1,455,000,000.00
activities
Cash to repay debts
Cash paid as dividend, profit, or
17,063,887.14
interests
Other cash paid for financing activities 0.00
Sub-total of cash outflow due to
17,063,887.14
financing activities
Net cash flow generated by financing 1,437,936,112.86
IV. Influence of exchange rate
alternation on cash and cash equivalents
V.Net increase of cash and cash
25,272,141.75 -1,182,341.00
equivalents
Add: balance of cash and cash
239,145,251.31 8,480,977.00
equivalents at the beginning of term
VI ..Balance of cash and cash
264,417,393.06 7,298,636.00
equivalents at the end of term
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Sino Great Wall Co., Ltd. The Semi-annual Report 2016
7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RMB
Amount in this period
Owner’s equity Attributable to the Parent Company
Other Equity
instrusment Other Minor Total of
Itme Less: Common
Capital Comprehen Specialized Surplus Attributable shareholders’ owners’
Share Capital Shares risk
preferre Sustain reserves sive reserve reserves profit equity equity
Other in stock provision
d stock able Income
debt
I.Balance at the end of -50,367,862.2 46,014,941 84,394,441.2 1,280,543,663
446,906,582.00 755,308,636.19 -1,713,075.19
last year 2 .54 3 .55
Add: Change of
accounting policy
Correcting of previous
errors
Merger of entities under
common control
Other
II.Balance at the
-50,367,862.2 46,014,941 84,394,441.2 1,280,543,663
beginning of current 446,906,582.00 755,308,636.19 -1,713,075.19
2 .54 3 .55
year
III.Changed in the 1,251,338,429. -1,251,338,42 28,355,184 231,546,721.1
-132.50 203,913,437.45 -721,768.31
current year 00 9.00 .48 2
（1）Total 201,577,648.3
202,299,416.64 -721,768.31
comprehensive income 3
（II）Investment or
decreasing of capital by
60
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
owners
1．Ordinary Shares inv
ested by hareholders
2．Holders of other equ
ity instruments invested
capital
3．Amount of shares
paid and accounted as
owners’ equity
4．Other
（III）Profit allotment 165,552.20 165,552.20
1.Providing of surplus
reserves
2.Providing of
common risk provisions
3．Allotment to the
owners (or
shareholders)
4．Other 165,552.20 165,552.20
(IV) Internal
1,251,338,429. -1,251,338,42
transferring of owners’
00 9.00
equity
1. Capitalizing of capital
1,251,338,429. -1,251,338,42
reserves (or to capital 0.00
00 9.00
shares)
2. Capitalizing of
surplus reserves (or to
capital shares)
3．Making up losses by
surplus reserves.
61
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
4. Other
28,355,184
(V). Special reserves 28,355,184.48
.48
28,355,184
1. Provided this year 28,355,184.48
.48
2．Used this term
（VI）Other 1,448,468.61
IV. Balance at the end of 1,698,245,011. -1,301,706,29 74,370,126 84,394,441.2 1,512,090,384
-132.50 959,222,073.64 -2,434,843.50
this term 00 1.22 .02 3 .67
Amount in last year
In RMB
Amount in last year
Owner’s equity Attributable to the Parent Company
Other Equity
instrusment Other Minor Total of
Items Less: Common
preferr Capital Compre Specialized Surplus Attributable shareholders’ owners’
Share Capital Sustai Shares risk
ed Other reserves hensive reserve reserves profit equity equity
nable in stock provision
stock Income
debt
I.Balance at the end of 176,467,549.0 21,813,200.1 49,347,406.2 761,471,188.4
70,136,099.00 -85.60 443,707,019.71
last year 0 0 3 4
Add: Change of
accounting policy
Correcting of previous
errors
Merger of entities under
common control
Other
II.Balance at the 70,136,099.00 176,467,549.0 -85.60 21,813,200.1 49,347,406.2 443,707,019.71 761,471,188.4
62
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
beginning of current 0 0 3 4
year
III.Changed in the -12,203,238.7 153,139,152.6
50.30 165,342,341.12
current year 5 7
（1）Total
comprehensive income
（II）Investment or
decreasing of capital by
owners
1．Ordinary Shares inv
ested by hareholders
2．Holders of other equ
ity instruments invested
capital
3．Allotment to the
owners (or
shareholders)
4．Other
165,342,391.4
（III）Profit allotment 50.30 165,342,341.12
2
1.Providing of surplus
reserves
2.Providing of
common risk provisions
3．Allotment to the
owners (or
shareholders)
4．Other 50.30 165,342,341.12
(IV) Internal
transferring of owners’
63
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
equity
1. Capitalizing of capital
reserves (or to capital
shares)
2. Capitalizing of
surplus reserves (or to
capital shares)
3．Making up losses by
surplus reserves.
4. Other
-12,203,238.7 -12,203,238.7
(V) Special reserves
5 5
1. Provided this year
-12,203,238.7
2．Used this term
5
（VI）Other
IV. Balance at the end of 176,467,549.0 49,347,406.2 914,610,341.1
70,136,099.00 -35.30 9,609,961.35 609,049,360.83
this term 0 3 1
8. Statement of change in owner’s Equity of the Parent Company
Amount in this period
In RMB
Amount in this period
Other Equity instrusment Other
Specializ
Items Less: Shares in Comprehen Attributable Total of owners’
Share Capital preferre Capital reserves ed Surplus reserves
Sustaina Other stock sive profit equity
d stock reserve
ble debt Income
I.Balance at the end of last
446,906,582.00 2,489,294,901.37 26,309,287.00 257,161,771.72 3,219,672,542.09
year
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Sino Great Wall Co., Ltd. The Semi-annual Report 2016
Add: Change of
accounting policy
Correcting of previous
errors
Other
II.Balance at the
446,906,582.00 2,489,294,901.37 26,309,287.00 257,161,771.72 3,219,672,542.09
beginning of current year
III.Changed in the current
1,251,338,429.00 -1,251,338,429.00 -7,303,450.55 -7,303,450.55
year
（1）Total comprehensive
-7,303,450.55 -7,303,450.55
income
（II）Investment or
decreasing of capital by
owners
1．Ordinary Shares invest
ed by hareholders
2．Holders of other equit
y instruments invested cap
ital
3．Allotment to the owners
(or shareholders)
4．Other
（III）Profit allotment
1.Providing of surplus
reserves
2．Allotment to the owners
(or shareholders)
3．Other
(IV)Internal transferring
1,251,338,429.00 -1,251,338,429.00 0.00
of owners’ equity
65
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
1. Capitalizing of capital
reserves (or to capital 1,251,338,429.00 -1,251,338,429.00 0.00
shares)
2. Capitalizing of surplus
reserves (or to capital
shares)
3．Making up losses by
surplus reserves.
4. Other
(V) Special reserves
1. Provided this year
2．Used this term
（VI）Other
IV. Balance at the end of
1,698,245,011.00 1,237,956,472.37 26,309,287.00 249,858,321.17 3,212,369,091.54
this term
Amount in last year
In RMB
Amount in last year
Other Equity instrusment
Other
Itmes Less: Shares Specialized Attributable Total of owners’
Share Capital preferre Capital reserves Comprehensiv Surplus reserves
Sustaina Other in stock reserve profit equity
d stock e Income
ble debt
I.Balance at the
169,142,356.00 31,606,598.00 26,309,287.00 -100,562,791.00 126,495,450.00
end of last year
Add: Change of
accounting
policy
Correcting of
previous errors
Other
II.Balance at the 169,142,356.00 31,606,598.00 26,309,287.00 -100,562,791.00 126,495,450.00
66
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
beginning of
current year
III.Changed in the
-629,926.00 -629,926.00
current year
（1）Total
comprehensive -629,926.00 -629,926.00
income
（II）Investment or
decreasing of
capital by owners
1．Ordinary Share
s invested by hareh
olders
2．Holders of oth
er equity instrume
nts invested capital
3．Allotment to the
owners (or
shareholders)
4．Other
（III）Profit
allotment
1.Providing of
surplus reserves
2．Allotment to the
owners (or
shareholders)
3．Other
(IV)Internal
transferring of
67
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
owners’ equity
1. Capitalizing of
capital reserves (or
to capital shares)
2. Capitalizing of
surplus reserves
(or to capital
shares)
3．Making up
losses by surplus
reserves.
4. Other
(V) Special
reserves
1. Provided this
year
2．Used this term
（VI）Other
IV. Balance at the
169,142,356.00 31,606,598.00 26,309,287.00 -101,192,717.00 125,865,524.00
end of this term
68
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
III.Basic Information of the Company
Sino Great Wall Co., Ltd. (hereinafter referred to as the "Company" or "Sino Great Wall") is formerly known as
Shenzhen Victor Onward Textile Industrial Company Limited which is formerly known as Xinnan Printing and
Dyeing Factory Co., Ltd.. Established in 1980, Xinnan Printing and Dyeing Factory Co., Ltd. is the first wholly
foreign-owned enterprise in Shenzhen. In April 1984, Xinnan Printing and Dyeing Factory Co., Ltd. was changed
into a foreign joint venture and was renamed Shenzhen Victor Onward Printing and Dyeing Co., Ltd.. On
November 19, 1991, approved by the Government of Shenzhen City, Shenzhen Victor Onward Printing and
Dyeing Co., Ltd. was restructured into a joint stock limited company and was renamed Shenzhen Victor Onward
Textile Industrial Company Limited.
Domestic listed RMB ordinary shares ("A" shares; stock code: 000018) and overseas-listed foreign investment
shares ("B" shares; stock code: 200018) issued by the Company were listed for trading on the Shenzhen Stock
Exchange in 1992.
On July 23, 2015, approved by the China Securities Regulatory Commission under the Official Reply to
Approving Shenzhen Victor Onward Textile Industrial Company Limited to Make Major Assets Restructuring and
Issue Shares to Chen Lve and Other Shareholders to Purchase Assets and Raise Supporting Funds (Z.J.X.K. [2015]
No.1774), the Company issued 251,849,593 shares to Chen Lve and other 167shareholders to purchase 100% of
equities of Sino Great Wall International Engineering Co., Ltd. held by them and issued to them 25,914,633
non-public offering shares, which raised funds of RMB 254,999,988.72.
As at September 24, 2015, equities of the listed company were changed to be registered in the name of the
Company. Both parties fully completed the transfer of equities and the relevant formalities of industrial and
commercial registration of changes, so the Company already owned 100% of equities in the listed company.
Meanwhile, according to the Confirmation on Delivery of Exchange-Out Assets, as at the date of delivery (namely
July 31, 2015), all assets and liabilities of the Company had been exchanged out. On September 24, 2015,
Shenzhen Branch of the China Securities Depository and Clearing Corporation Li mited had completed the
relevant securities registration formalities for the above new shares.
On July 29, 2015, the listed company received the new registered capital of RMB 251,849,593 paid by all the
shareholders of Sino Great Wall. Ruihua Certified Public Accountants issued the Verification Report (R.H.Y.Z.
[2015] No.48250011) on July 30, 2015. Registered capital after the change was RMB 420,991,949 and share
capital RMB 420,991,949. On December 4, 2015, Shenzhen Victor Onward Textile Industrial Company Limited.
was renamed Sino Great Wall Co., Ltd..
As at June 30, 2016, total share capital of the Company was 1,698,245,011 shares, in which there were
1,434,441,780 circulating A shares and 263,803,231 circulating B shares. Chen Lve who holds 582,944,556 A
shares, accounting for 34.33% of the total share capital, is the Company's controlling shareholder and actual
controller.
Registered address of the Company: No.26 Kuipeng Road, Baishi Gang, Kuichong Town, Longgang District,
Shenzhen. Legal representative: Chen Lve. The Company falls under textile printing and dyeing industry. The
Company mainly engages in dyeing and printing production, processing and sales of all kinds of pure cotton, pure
linen, polyester cotton, ramie cotton, high-grade blended fabrics and finished garments.
During the reporting period, the company had completed the purchase of Wuhan Commercial & Vocational
Hospital Co.,Ltd and the company shall incorporate it into the consolidated financial statements.
IV.Basis for the preparation of financial statements
1.Basis for the preparation
The company is based on continuous operation, according to the actual transactions and events, in accordance wit
h "Accounting Standards for Enterprises - Basic Standards" issued by the Ministry of Finance and specific corpora
te accounting standards, corporate accounting standards application guide, explained Accounting Standards and ot
69
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
her regulations (hereinafter referred to as "Enterprise Accounting Standards") are recognized and used to measure,
on this basis, combined with China Securities Regulatory Commission, "public offering of securities of the Comp
any disclosure Rule No. 15 - financial Reporting general Provisions" (2014 revised) , the financial report was base
d on it.
2. Continuous operation.
The Company since 12 months after the reporting period does not exist on the company's continued viability of si
gnificant concern events or circumstances.
V. Significant accounting policies and accounting estimates
Specific accounting policies and accounting estimates tips:
1. Statement on the Accounting Standard Followed by the Company
The financial statements prepared by the Company comply with the requirements of corporate accounting
standards. They truly and completely reflect the financial situations, operating results, equity changes and cash
flow, and other relevant information of the company.
2.Fiscal Year
The Company adopts the Gregorian calendar year commencing on January 1 and ending on December 31 as the
fiscal year.
The reporting period is from January 1, 2016 to June 30, 2016.
3.Operating cycle
The Company has an operating cycle of 12 months.
4. Functional currency
RMB is the currency of the Company and domestic subsidiaries in the primary economic environment. The
functional currency of the Company and domestic subsidiaries is RMB. Currency of the Company in preparing its
financial statements is RMB.
5. Accounting treatment methods of business combinations under common control and not under common
control
Business combinations under common control: The assets and liabilities acquired by the Company in business
combinations are measured at the book value of assets and liabilities of the combinee (including the goodwill
arising from the acquisition of the combinee by the ultimate controller) in the consolidated financial statements of
the ultimate controller on the combination date. The stock premium in the capital reserves should be adjusted at
the difference between the book value of the net assets acquired in combinations and that of consideration paid for
the combination (or total par value of shares issued). If the stock premium in the capital reserves is insufficient to
cover the differences, the retained earnings should be adjusted.
Business combinations not under common control: The Company shall, on the acquisition date, measure the assets
surrendered and liabilities incurred or assumed by the Company for a business combination at their fair values.
The Company shall recognize the difference of the combination costs in excess of the fair value of the identifiable
net assets acquired from the acquiree as goodwill. The Company shall recognize the difference of the combination
costs in short of the fair value of the identifiable net assets acquired from the acquiree in the current profit and loss
after review.
Intermediary service charges such as audit fee, legal service fee, appraisal and consultancy fee paid for business
combinations and other directly relevant expenses are included in the current profit and loss when incurred; the
transaction costs for the issuance of equity securities for business combinations shall be used to offset equities.
6.Preparation method for consolidated financial statements
1.Scope of consolidation
The scope of consolidation of the consolidated financial statements of the Company is recognized based on the
control and all subsidiaries (including the divisible part of the investee controlled by the Company) shall be
included in the consolidated financial statements.
2. Procedures for consolidation
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Sino Great Wall Co., Ltd. The Semi-annual Report 2016
The Company prepares the consolidated financial statements based on its own financial statements and those of its
subsidiaries according to other relevant information. When the Company prepares its consolidated financial
statements, it shall regard the whole enterprise group as an accounting entity to reflect the overall financial
position, operating results and cash flows of the enterprise group according to the requirements for recognition,
measurement and presentation of the relevant accounting standards for business enterprises and the unified
accounting policies.
Accounting policies and accounting periods adopted by all subsidiaries included in the scope of consolidation of
the consolidated financial statements shall be consistent with those of the Company. If accounting policies and
accounting periods adopted by the subsidiaries are inconsistent with those of the Company, in the preparation of
the consolidated financial statements, necessary adjustments shall be made according to the accounting policies
and accounting periods of the Company. For the subsidiaries acquired through business combination not under
common control, adjustments to their financial statements shall be made based on the fair values of net
identifiable assets on the acquisition date. For the subsidiaries acquired through business combination under
common control, adjustments to their financial statements shall be made based on the fair values of their assets
and liabilities (including goodwill from acquisition of the subsidiaries by the ultimate controller) in the financial
statements of the ultimate controller.
The share of owner's equity, net profits and losses in the current year and comprehensive income in the current
year of subsidiaries attributable to minority shareholders should be separately presented under the item "owner's
equity" in the consolidated balance sheet, the item "net profit" and the item "total comprehensive income" in the
consolidated income statement. The difference of the loss in the current year shared by minority shareholders of
the subsidiaries in excess of the share of minority shareholders in the owner's equity at the beginning of the year
of the subsidiaries should be used to offset the minority equity.
（1）Increase in subsidiaries or business
During the reporting period, if the Company increased subsidiaries or business from business combinations under
common control, the beginning balance of the consolidated balance sheet shall be adjusted; the incomes, expenses
and profits from the beginning of the current year of the combinations of the subsidiaries or business to the end of
the reporting period shall be included in the consolidated income statement; cash flows from the beginning of the
current year of the combinations of the subsidiaries or business to the end of the reporting period shall be included
in the consolidated statement of cash flows. Relevant items in the comparative financial statements of the
subsidiaries shall be adjusted accordingly, as if the reporting entity after the business combination exists when the
ultimate controller starts its control.
Where the Company can control the investee under common control due to additional investments and other
reasons, adjustments shall be made as if parties involved in the combination have existed in the current state when
the ultimate controller start its control. Equity investments held before the Company controls the combinee, and
the relevant profit and loss, other comprehensive income and other changes in net assets that are recognized from
the later of the date when the Company obtains the original equity and the date when the combiner and the
combinee are under common control to the combination date, shall be used to offset the retained earnings at the
beginning of the year or the current profit and loss during the period of the comparative statements.
During the reporting period, if the Company increased subsidiaries or business from business combinations not
under common control, the beginning balance in the consolidated balance sheet shall not be adjusted; the incomes,
expenses and profits of the subsidiaries or business from the acquisition date to the end of the reporting period
shall be included in the consolidated income statement; cash flows of the subsidiaries and business from the
acquisition date to the end of the reporting period shall be included in the consolidated statement of cash flows.
Where the Company can implement control over an investee not under common control due to additional
investment or other reasons, the equity held by the combinee before the purchase date is remeasured at the fair
value on the purchase date of the equity, and the difference between the fair value and the book value shall be
included in the current investment income. In the event that the equity of the acquiree held prior to the acquisition
date involves changes to other comprehensive income under the equity method and other changes to owners'
equity except for net profit and loss, other comprehensive income and profit distribution, other comprehensive
income and other changes in the owner's equity associated therewith are transferred to investment income of the
period to which the acquisition date belong, except for other comprehensive income arising from changes in net
liabilities or net assets due to the re-measurement of defined benefits plan by the investee.
（2）Disposal of subsidiaries or business
A .General method of disposal
During the reporting period, if the Company disposes subsidiaries or business, the incomes, expenses and profits
from the subsidiaries or business from the beginning of the year to the disposal date shall be included in the
consolidated income statement; cash flows of the subsidiaries and business from the beginning of the year to the
71
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
disposal date shall be included in the consolidated statement of cash flows.
The difference of total amount of the consideration from disposal of equities plus the fair value of the remaining
equities less the shares calculated at the original shareholding ratio in net assets and goodwill of the original
subsidiary which are continuously calculated as of the acquisition date or combination date is included in the
investment income of the period at the loss of control. Other comprehensive incomes associated with the equity
investments of the original subsidiary, or the changes in owners' equity other than net profit or loss, other
comprehensive income and profit distribution, are transferred into investment income of the period when control
is lost, except for other comprehensive income from the change in net liability or net asset due to the investor's
re-measurement of designated benefit plan.
B .Disposal of subsidiaries by stages
Where the Company disposes the equity investments in subsidiary through multiple transactions and by stages
until it loses the control, if the effect of the disposal on the terms and conditions of all transactions of equity
investments in subsidiary and economic effect meet one or more of the following circumstance, it usually
indicates that the multiple transactions should be accounted for as a package deal:
i. The transactions are concluded at the same time or under the consideration of mutual effect;
ii. The transactions as a whole can reach a complete business result;
iii. The occurrence of a transaction depends on that of at least one other transactions; and/or
iv. A single transaction is uneconomical but it is economical when considered together with other transactions.
Where various transactions of disposal of equity investments in subsidiaries until loss of the control belong
to a package deal, accounting treatment shall be made by the Company on the transactions as a transaction to
dispose subsidiaries and lose the control; however, the difference between each disposal cost and net asset
share in the subsidiaries corresponding to each disposal of investments before loss of the control should be
recognized as other comprehensive income in the consolidated financial statements and should be transferred into
the current profit or loss at the loss of the control.
Where various transactions of disposal of equity investments in subsidiaries until loss of the control do not belong
to a package deal, before the loss of the control, accounting treatment shall be made according to the relevant
policies for partial disposal of equity investments in the subsidiary without losing control; at the loss of the control,
accounting treatment shall be made according to general treatment methods for disposal of subsidiaries.
（3）Purchase of minority equity of subsidiaries
The difference between long-term equity investments acquired by the Company through purchase of minority
interest and the subsidiary’s identifiable net assets attributable to the Company calculated continuously from the
acquisition date (or the combination date) in accordance with the increased shareholding ratio shall be charged
against stock premium within capital reserves in the consolidated balance sheet; when stock premium within
capital reserves is insufficient to offset, the retained earnings shall be adjusted.
(4) Partial disposal of long-term equity investments in subsidiaries without losing control
The difference between the proceeds from partial disposal of equity investments in the subsidiary and the share of
identifiable net assets of the subsidiary attributable to the Company which are calculated continuously from the
acquisition date (or the combination date) and which are corresponding to the disposal of long-term equity
investments without losing control shall be charged against stock premium within capital reserves in the
consolidated balance sheet; when stock premium within capital reserves is insufficient to offset, the retained
earnings shall be adjusted.
7. Joint venture arrangements classification and Co-operation accounting treatment
8..Recognition Standard of Cash & Cash Equivalents
The company recognizes its cash in vault & the deposits that are ready for payment at any time as cash when
preparing the cash flow statement.which are featured with short term (expire within 3 months since purchased),
high liquidity, easy to convert to know cash, low in risk of value change, could be recognized as cash equivalents.
9. Foreign currency transactions and translation of foreign currency statements
1.Foreign currency transactions
Foreign currency transactions are translated into functional currency at the approximate rate of spot
exchange rate on the day when the transactions occur.
The balance of foreign currency monetary items as at the balance sheet date are translated at the spot
exchange rate on the balance sheet date and the exchange differences arising therefrom shall be included in
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Sino Great Wall Co., Ltd. The Semi-annual Report 2016
the current profit and loss, except those exchange differences arising from the special borrowings of foreign
currency related to the acquired and constructed assets qualified for capitalization that will be capitalized at
the borrowing expenses.
2.Translation of foreign currency statements
Assets and liabilities in the balance sheet are translated at the spot exchange rates on balance sheet date;
owners' equity items, except for the item of “undistributed profits”, are translated at the spot exchange rates
on the dates when the transactions occur. The income and expenses items in income statements are translated
at the approximate rate of spot exchange rate prevailing on the date when transactions occur.
Where the Company disposes of an overseas business, it shall transfer the exchange difference relating to the
overseas business to the current profit and loss.
10. Financial instruments
Financial instruments include financial assets, financial liabilities and equity instruments.
1.Classification of financial instruments
At the initial recognition, financial assets and financial liabilities are classified as: financial assets or financial
liabilities measured at fair value through current profit and loss, including financial assets or financial liabilities
held for trading (and financial assets or financial liabilities directly designated to be measured at fair value
through current profit and loss); held-to-maturity investments; receivables; available-for-sale financial assets; and
other financial liabilities, etc.
2.Recognition basis and measurement method of financial instruments
(1)Financial assets (financial liabilities) measured at fair value through current profit and loss
Financial assets (financial liabilities) measured at fair value through current profit and loss are initially recognized
at the fair value upon acquisition (net of cash dividends declared but not yet paid or bond interest due but not yet
received) and the related transaction costs are included in current profit and loss.
The interest or cash dividends to be received during the holding period is or are recognized as investment income.
Change in fair values is included in the current profit and loss at the end of the period.
Difference between the fair value and initial book-entry value is recognized as investment income upon disposal;
meanwhile, adjustment is made to gains or losses from changes in fair values.
(2) Held-to-maturity investments
Held-to-maturity investments are initially recognized at the sum of the fair value (net of bond interest due but not
yet received) and related transaction costs upon acquisition.
The interest income will be calculated and determined according to the amortized cost and effective interest rate
during the holding period and included in investment income. The effective interest rates are determined upon
acquisition and remain unchanged during the expected remaining period, or a shorter period if applicable.
Upon disposal, the difference between the purchase price obtained and the book value of the investment is
recognized in investment income.
(3) Receivables
For creditor’s rights receivable arising from external sales of goods or rendering of service by the Company and
other creditor's rights of other enterprises (excluding liability instruments quoted in an active market) held by the
Company, including accounts receivable and other receivables, the initial recognition amount shall be the contract
price or agreement price receivable from purchasing party. Receivables with financing nature are initially
recognized at their present values.
Upon recovery or disposal, the difference between the purchase price obtained and the book value of the
receivables is recognized in current profit and loss.
(4) Available-for-sale financial assets
Financial assets (financial liabilities) measured at fair value through current profit and loss are initially recognized
at the fair value and related transaction expenses upon acquisition (net of cash dividends declared but not yet paid
or bond interest due but not yet received).
The interest or cash dividends to be received during the holding period is or are recognized as investment income.
The interest or cash dividends should be measured at fair value and their changes in fair value should be included
in other comprehensive income. However, for an equity instrument investment that has no quoted price in an
active market and whose fair value cannot be reliably measured, and for derivative financial asset linked to the
said equity instrument investment and settled by delivery of the same equity instrument, they shall be measured at
cost.
Difference between the proceeds and the book value of the financial assets is recognized as investment income
upon disposal; meanwhile, amount of disposal corresponding to the accumulated change in fair value which is
originally and directly included in other comprehensive income shall be transferred out and recognized as the
current profit and loss.
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Sino Great Wall Co., Ltd. The Semi-annual Report 2016
(5) Other financial liabilities
They are initially recognized at the sum of the fair value and the associated transaction costs. Other financial
liabilities are subsequently measured at amortized cost.
3.Recognition and measurement of transfer of financial assets
When a financial assets transfer occurs, the financial assets will be derecognized when substantially all the risks
and rewards on the ownership of the financial assets have been transferred to the transferee; and they will not be
derecognized if substantially all the risks and rewards on the ownership of the financial assets have been retained.
The principle of substance over form is adopted to determine whether a financial asset meets the above
de-recognition conditions for the financial asset. The transfer of a financial asset of the Company is classified into
the entire transfer and the partial transfer of financial asset. Where the entire transfer of the financial asset meets
the de-recognition conditions, the difference of the following two amounts will be included in current profit and
loss:
(1) The book value of the transferred financial asset;
(2) The sum of the consideration received from the transfer and the accumulated amount of the changes in fair
value originally and directly included in owners’ equity (the situation where the financial asset transferred is an
available-for-sale financial asset is involved in).
If the partial transfer of financial asset satisfies the criteria for derecognition, the entire book value of the
transferred financial asset shall be split into the derecognized and recognized part according to their respective fair
value and the difference between the amounts of the following two items shall be included in the current profit
and loss:
(1) The book value of derecognized part;
(2) The sum of the consideration for the derecognized part and the portion of de-recognition corresponding to
the accumulated amount of the changes in fair value originally and directly included in owners' equity (the
situation where the financial asset transferred is an available-for-sale financial asset is involved in).
If the transfer of a financial asset does not meet the derecognition criteria, the financial asset shall continue to be
recognized, and the consideration received will be recognized as a financial liability.
4 .Derecognition criteria of financial liabilities
Where the present obligations of financial liabilities have been discharged in whole or in part, the financial
liability is derecognized or any part thereof will be derecognized; if the Company signs an agreement with
creditors to replace the existing financial liabilities by undertaking new financial liabilities, and the new financial
liabilities are substantially different from the existing ones in terms of contract terms, the existing financial
liabilities will be derecognized, and at the same time, the new financial liability will be recognized.
Where substantial revisions are made to some or all of the contractual stipulations of the existing financial liability,
the Company shall derecognize the existing financial liability wholly or partly, and at the same time recognize the
financial liability with revised contractual stipulations as a new financial liability.
Upon whole or partial derecognition of financial liabilities, the difference between the book value of the financial
liabilities derecognized and the consideration paid (including non-cash assets surrendered or new financial
liabilities assumed) shall be included in the current profit and loss.
Where the Company repurchases part of a financial liability, the entire book value of the financial liability shall be
split into the derecognized part and continuously-recognized part according to their respective fair value on the
repurchase date. The difference between the book value allocated to the derecognized part and the considerations
paid (including non-cash assets surrendered and the new financial liabilities assumed) shall be included in the
current profit and loss.
5 .Recognition method of fair value of financial assets and financial liabilities
Where there is an active market for financial instruments, the fair values shall be recognized at quoted prices in
the active market. Where there is no active market, the fair values shall be recognized with valuation techniques.
At the time of valuation, the Company adopts the techniques that are applicable in the current situation and
supported by enough available data and other information, selects the input values consistent with the features of
assets or liabilities considered by market participants in relevant asset or liability transactions, and gives priority
to using relevant observable inputs. Unobservable inputs are used only under the circumstance when it is
impossible or unobservable inputs to obtain relevant observable inputs.
6.Test method and accounting treatment of depreciation of financial assets (excluding receivables)
Except for the financial assets measured at fair values through current profit and loss, the book value of financial
assets on the balance sheet date should be checked. If there is objective evidence that a financial asset is impaired,
provision for impairment shall be made.
(1) Provision for impairment of available-for-sale financial assets:
If the fair value of available-for-sale financial assets has significantly declined at the end of the period, or it is
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Sino Great Wall Co., Ltd. The Semi-annual Report 2016
expected that the trend of decrease in value is non-temporary after considering of various relevant factors, the
impairment shall be recognized, and accumulated losses from decreases in fair value originally and directly
included in owners' equity shall be all transferred out and recognized as impairment loss.
For available-for-sale debt instruments whose impairment losses have been recognized, if their fair values rise in
the subsequent accounting period and such rise is objectively related to the matters occurring after the recognition
of impairment loss, the previously recognized impairment loss shall be reversed and recorded into the current
profit and loss.
Impairment losses on available-for-sale equity instruments should not be reversed through profit and loss.
(2) Provision for impairment of held-to-maturity investments:
Measurement of provision for impairment loss on held-to-maturity investments is treated in accordance with the
measurement method of impairment loss on accounts receivable.
11. Accounts receivable
（1）Accounts receivable with material specific amount and specific provisioned bad debt preparation.
The Company recognizes account receivables that are
individually significant (more than or equal to RMB 10 million)
Judgment criteria or amount standard of material specific amount
and other receivables of a single current entities (more than or
or amount criteria equal to RMB 2 million) as individually significant receivables.
On the balance sheet date, the Company separately conducts an
impairment test on accounts receivable that are individually
significant. Where they are impaired after such test, the
impairment loss is recognized at the difference between the
present value of its future cash flows lower than the book value
and the provision for bad debts shall be made; accounts
Provision method with material specific amount and provision of
receivable that are not impaired after the separate test, together
specific bad debt preparation
with accounts receivable that are individually insignificant, are
divided into several portfolios according to similar credit risk
features. The impairment loss is calculated and recognized at a
certain percentage of these portfolios of accounts receivable in
the balance on the balance sheet date and the provision for bad
debts shall be made.
(2)The accounts receivable of bad debt provisions made by credit risk Group
Name Method for recognition of impairment allowances
Group of account age The age analysis
Accounts on age basis in the portfolio：
√applicable□ not applicable
Age Rate for receivables(%) Rate for other receivables(%)
Within 1 year（Included 1 year） 5.00% 5.00%
1－2 years 10.00% 10.00%
2－3 years 30.00% 30.00%
3－4 years 50.00% 50.00%
4－5 years 80.00% 80.00%
Over 5 years 100.00% 100.00%
Accounts on percentage basis in group：
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Sino Great Wall Co., Ltd. The Semi-annual Report 2016
□ applicable √not applicable
Accounts on other basis in group：
√applicable□ not applicable
(3)Account receivable with non-material specific amount but specific bad debt preparation
On the balance sheet date, the Company recognizes impairment
losses and makes provision for bad debts of other individually
Reason of specific bad debt preparation provision： significant receivables with signs of impairment at the
differences of the present values of their future cash flows in
short of their book values.
On the balance sheet date, the Company separately conducts an
impairment test on accounts receivable that are individually
insignificant but are provided for bad debts on individual basis.
Provision method of bad debt preparation
Where they are impaired after such test, the impairment losses
are recognized at the difference between the present value of
future cash flows lower than the book value and the provision for
bad debts shall be accordingly made;
12.Inventories
1.Classification of inventories
Inventories are classified into: raw materials and engineering construction, etc..
2.Valuation method of inventories dispatched
The inventories are measured at weighted average method when dispatched.
3.Recognition basis for net realizable values of inventories of different categories
Net realizable values of merchandise inventories held directly for sale, such as finished goods, stock commodities,
and available-for-sale materials, are measured at the estimated selling prices less estimated sales expenses and
relevant taxes and surcharges in the normal production process. Net realizable values of material inventories
which need further processing are measured at the estimated selling prices less the estimated costs of completion,
estimated sales expenses and relevant taxes and surcharges in the normal production process. Net realizable values
of inventories held for the purpose of fulfillment of sales contracts or service contracts are calculated on the basis
of the contract prices; if the quantity of inventories held exceeds that stated in the contract, the net realizable
values of the excessive part are calculated on the basis of normal selling prices.
The provisions for inventory depreciation reserve are made on an individual basis at the end of the period, for
inventories with large quantities and relatively low unit prices, the provisions for inventory depreciation reserve
are made on a category basis. For inventories related to the product portfolios manufactured and sold in the same
area, and of which the final usage or purpose is identical or similar thereto, and which is difficult to be separated
from other items for measurement purposes, the provisions for inventory depreciation reserve are made on a
portfolio basis.
Except that there is clear evidence that the market price is abnormal on the balance sheet date, the net realizable
value of inventory items shall be recognized at the market price on the balance sheet date.
Net realizable value of inventory items at the end of the year is recognized at the market price on the balance sheet
date.
4. Inventory system
Perpetual inventory system is adopted.
5.Amortization methods for low-cost consumables and packaging materials
(1) One-off amortization method is adopted for low-cost consumables;
(2) One-off amortization method is adopted for packaging materials.
13. Classified as the assets held for sale
1. Recognition criteria for the classification of the assets held for sale
The company will recognize the combination parts of the enterprise (or non-current assets) which
simultaneously meet the following requirements, as the components of the assets held for sale.
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(1) The components should be immediately sold under the current condition only according to the usual terms of
the parts sold.
(2) The enterprise has made resolution for the disposal of the components, the approval of shareholders’ meeting
or relevant authority agency if the shareholder’s approval is requested by the rules.
(3) The enterprise has signed the irrevocable transfer agreement with the transferee.
(4) The transfer shall be completed within one year.
14.Long-term equity investment
1.Standards for joint control and significant influence
The term ‘common control’ refers to the joint control, according to the relevant provisions, over an arrangement,
of which the relevant activities should be agreed and decided by the participants that share the control. Where the
Company and other investors exert common joint control over the investee and the Company is entitled to net
assets of the investee, the investee is the joint venture of the Company.
Significant influence refers to the power to participate in making decisions on the financial and operating policies
of an enterprise, but not the power to control, or jointly control, the formulation of such policies with other parties.
Where the Company is able to exert significant influence over the investee, the investee is its associate.
2.Recognition of initial investment costs
(1) Long-term equity investments acquired from business combination
Business combination under the same control: if the Company makes payment in cash, transfers non-cash assets
or bears debts and issues equity securities as the consideration for the business combination, the book value of the
owner's equity of the acquiree in the consolidated financial statements of the ultimate controller is recognized as
the initial cost of the long-term equity investment on the combination date. In case the Company can exercise
control over the investee under common control for additional investment or other reasons, the initial investment
cost of long-term equity investments is recognized at the share of book value of net asset of the acquiree after the
combination in the consolidated financial statements of the ultimate controller on the combination date. The stock
premium should be adjusted at the difference between the initial investment cost of long-term equity investments
on the combination date and the book value of long-term equity investments before the combination plus the book
value of consideration paid for additional shares; if there is no sufficient stock premium for write-downs, the
retained earnings are adjusted.
Business combination not under common control: The Company recognizes the combination cost determined on
the combination date as the initial cost of long-term equity investments. Where the Company can control the
investee not under common control from additional investments, the initial investment cost should be changed to
be accounted for under the cost method and recognized at the sum of the book value of equity investments
originally held and newly increased investment cost.
(2) Long-term equity investment acquired by other means
For a long-term equity investment acquired through making payments in cash, its initial cost is the actually paid
purchase cost.
For a long-term equity investment acquired from issuance of equity securities, its initial cost is the fair value of
the issued equity securities.
If the exchange of non-monetary assets has commercial substance and the fair values of assets traded out and
traded in can be measured reliably, the initial cost of long-term equity investment traded in with non-monetary
assets are determined based on the fair values of the assets traded out and the relevant taxes and surcharges
payable unless there is any conclusive evidence that the fair values of the assets traded in are more reliable; if the
exchange of non-monetary assets does not meet the above criteria, the book value of the assets traded out and the
relevant taxes and surcharges payable are recognized as the initial cost of long-term equity investment traded in.
For a long-term equity investment acquired from debt restructuring, its initial cost is determined based on the fair
value.
3.Subsequent measurement and recognition of gains and losses
(1) Long-term equity investments accounted for under the cost method
Long-term equity investments in subsidiaries are accounted for under the cost method. Except for the actual price
paid for acquisition of investment or the cash dividends or profits contained in the consideration which have been
declared but not yet distributed, the Company recognizes the investment income in the current year at the cash
dividends or profits declared by the investee.
(2) Long-term equity investments accounted for under the equity method
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Long-term equity investments in associates and joint ventures are accounted for under the equity method. If the
cost of initial investment is in excess of the proportion of the fair value of the net identifiable assets in the investee
when the investment is made, the difference will not be adjusted to the initial cost of the long-term equity
investments; if the cost of initial investment is in short of the proportion of the fair value of the net identifiable
assets in the investee when the investment is made, the difference will be included in the current profit and loss.
The Company shall recognize the investment income and other comprehensive income at the shares of net profit
and loss and other comprehensive income realized by the investee which the Company shall enjoy or bear and
adjust the book value of long-term equity investments at the same time; the Company shall calculate the shares
according to profits or cash dividends declared by the investee and correspondingly reduce the book value of
long-term equity investments; the book value of long-term equity investments shall be adjusted according to the
investee's other changes in owner's equity other than net profit and loss, other comprehensive income and profit
distribution, which should be included in owner's equity.
The share of the investee's net profit or loss should be recognized after adjustments are made to net profit of the
investee based on the fair value of identifiable net assets of the investee upon acquisition of investments and
according to accounting policies and accounting period of the Company. When holding the investment, the
investee should prepare the consolidated financial statements, it shall account for the investment income based on
the net profit, other comprehensive income and the changes in other owner's equity attributable to the investee.
The Company shall write off the part of incomes from internal unrealized transactions between the Company and
associates and joint ventures which are attributable to the Company according to the corresponding ratio and
recognize the profit and loss on investments on such basis. Where the losses from internal transactions between
the Company and the investee fall into the scope of assets impairment loss, the full amount of such losses should
be recognized. For transactions on investments or sales of assets between the Company and associates and joint
ventures, where such assets constitute business, they should be accounted for according to the relevant policies
disclosed in this note "Accounting treatment of business combinations under common control and not under
common control" and "Preparation of consolidated financial statements".
When the Company recognizes its share of loss incurred to the investee, treatment shall be done in following
sequence: firstly, the book value of the long-term equity investment shall be reduced. Secondly, where the book
value thereof is insufficient to cover the share of losses, investment losses are recognized to the extent of book
value of other long-term equities which form net investment in the investee in substance and the book value of
long term receivables shall be reduced. Finally, after all the above treatments, if the Company is still responsible
for any additional liability in accordance with the provisions stipulated in the investment contracts or agreements,
provisions are recognized and included into current investment loss according to the obligations estimated to
undertake.
(3) Disposal of long-term equity investments
For disposal of long-term equity investments, the difference between the book value and the actual price shall be
included in the current investment income.
For long-term equity investments accounted for under the equity method, when the Company disposes such
investments, accounting treatment should be made to the part that is originally included in other comprehensive
income according to the corresponding proportion by using the same basis for the investee to directly dispose the
relevant assets or liabilities. Owner's equity recognized at the changes in the investee's other owner's equity other
than net profit or loss, other comprehensive income and profit distribution shall be transferred to the current profit
and loss according to the proportion, except for other comprehensive income from changes arising from
re-measurement of net liabilities or net assets of defined benefit plan.
In case the joint control or significant influence over the investee is lost for disposing part of equity investments or
other reasons, the remaining equity will be changed to be accounted for according to the recognition and
measurement principles of financial instruments. The difference between the fair value and the book value on the
date of the loss of joint control or significant influence should be included in the current profit and loss. For other
comprehensive income recognized from accounting of the original equity investments under the equity method,
accounting treatment should be made by using the same basis for the investee to directly dispose the relevant
assets or liabilities when the equity method is no longer adopted. Owner's equity recognized from the investee's
changes in other owner's equity other than net profit or loss, other comprehensive income and profit distribution
should all transferred to the current profit and loss when the equity method confirmed is no longer adopted.
Where the Company loses the control over the investee due to disposal of partial equity investments or other
reasons, when it prepares individual financial statements, if the remaining equity after disposal can exercise joint
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control or significant influence on the investee, such investments should be changed to be accounted for under the
equity method and the remaining equity should be deemed to have be adjusted on acquisition, namely when the
equity method is adopted for accounting; if the remaining equity after disposal can exercise joint control or
significant influence on the investee, such equity will be changed to be accounted for according to recognition and
measurement standards of financial instruments and the difference between fair value and book value on the date
of loss of the control or significant influence should be included in the current profit and loss.
Where equity after the disposal is acquired from business combinations due to additional investments or other
reasons, when the Company prepares individual financial statements, if the remaining equity after the disposal is
accounted for under the cost method or equity method, other comprehensive income and other owners' equity
recognized from equity investments that are held before the acquisition date and are accounted for under the
equity method should be carried forward in proportion; if the remaining equity after the disposal is changed to be
accounted for according to recognition and measurement standards of financial instruments, other comprehensive
income and other owners' equity should be carried forward at full amount.
15. Investment real estate
The measurement mode of investment property
Not applicable
16.Fixed assets
（1）Confirmation conditions
Fixed assets refer to physical assets owned for purpose of production, service providing, leasing or
management, and operation with service life of more than one year. Fixed assets are recognized when all of the
following conditions are satisfied：(1)Financial benefits attached to the fixed asset is possibly inflowing to the
Company;(2) The cost of the fixed asset can be reliable measured.
（2）Depreciation method
Evpected useful Estinated residual value Annual depreciation rat
Type Depreciation method
life（Year） rate e（%）
House and Building Straight-line method 20 5 4.75
Machinery and
Straight-line method 10 5 9.5
equipment
Transportation
Straight-line method 7 5 13.57
equipment
Electronic
equipment and other 3-5 5 19.00-31.67
equipment Straight-line method
（3）Cognizance evidence and pricing method of financial leasing fixed assets
The fixed assets acquired under financing lease are recognized if one of the following conditions is specified by
the Company and the leaser in their lease agreement:
(1) Upon the expiration of the lease term, the ownership of the leased asset has been transferred to the Company;
(2) The Company has the option to purchase the asset and the purchase price is far lower than the asset’s fair
value at the time of the option being exercised;
(3) The lease term covers the most of the useful life of the leased asset;
(4) The present value of the minimum payment by the Company on the lease commencement date is almost equal
to the asset’s fair value.
On the lease commencement date, the book entry value of a fixed asset acquired under financing lease is
measured at the asset’s fair value or the present value of the minimum lease payment, whichever is the lower. The
minimum lease payment is recorded as the book entry value of the long-term payables, and the difference between
them is deemed as the unrecognized financing expenses.
17.Construction in process
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Projects under construction are recorded as fixed assets at necessary expenditures incurred before preparing the
asset to reach the condition for its intended use. For construction in progress that has reached working condition
for intended use but for which the completion of settlement has not been handled, it shall be transferred into fixed
assets at the estimated value according to the project budget, construction price or actual cost, etc. from the date
when it reaches the working condition for intended use and the fixed assets shall be depreciated in accordance
with the Company’s policy for fixed asset depreciation; adjustment shall be made to the estimated value based on
the actual cost after the completion of settlement is handled, but depreciation already provided for will not be
adjusted.
18.Borrowing costs
1.Recognition principles of capitalization of borrowing costs
Borrowing costs include the interest of borrowings, the amortization of discount or premium, auxiliary expenses,
exchange differences incurred by foreign currency borrowings, etc.
The borrowing costs incurred to the Company and directly attributable to the acquisition and construction or
production of assets eligible for capitalization should be capitalized and recorded into asset costs; other borrowing
costs should be recognized as costs according to the amount incurred and be included into current profit and loss.
Assets eligible for capitalization refer to fixed assets, investment property, inventories and other assets which may
reach their intended use or sale status only after long-time acquisition and construction or production activities.
Borrowing costs may be capitalized only when all the following conditions are met at the same time:
(1) Asset disbursements, which include those incurred by cash payment, the transfer of non-cash assets or the
undertaking of interest-bearing debts for acquiring and constructing or producing assets eligible for capitalization,
have already been incurred;
(2) Borrowing costs have already been incurred;
(3) The acquisition and construction or production activities which are necessary to prepare the assets for their
intended use or sale have already been started.
2.Capitalization period of borrowing costs
Capitalization period refers to the period from commencement of capitalization of borrowing costs to its
cessation; period of suspension for capitalization is excluded.
Capitalization of borrowing costs should cease when the acquired and constructed or produced assets eligible for
capitalization have reached the working condition for their intended use or sale.
When some projects among the acquired and constructed or produced assets eligible for capitalization are
completed and can be used separately, the capitalization of borrowing costs of such projects should be ceased.
If all parts of the acquired and constructed or produced assets are completed but the assets cannot be used or sold
externally until overall completion, the capitalization of borrowing costs should be ceased at the time of overall
completion of the said assets.
3.Period of capitalization suspension
If the acquisition and construction or production activities of assets eligible for capitalization are abnormally
interrupted and such condition lasts for more than three months, the capitalization of borrowing costs should be
suspended; if the interruption is necessary procedures for the acquired, constructed or produced assets eligible for
capitalization to reach the working conditions for its intended use or sale, the borrowing costs continue to be
capitalized. Borrowing costs incurred during the interruption are recognized as the current profit and loss and
continue to be capitalized until the acquisition, construction or production of the asset restarts.
4.Measurement of capitalization rate and capitalized amounts of borrowing costs
As for special borrowings borrowed for acquiring and constructing or producing assets eligible for capitalization,
borrowing costs of special borrowing actually incurred in the current period less the interest income of the
borrowings unused and deposited in bank or return on temporary investment should be recognized as the
capitalization amount of borrowing costs.
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As for general borrowings used for acquiring and constructing or producing assets eligible for capitalization, the
interest of general borrowings to be capitalized should be calculated by multiplying the weighted average of asset
disbursements of the part of accumulated asset disbursements exceeding special borrowings by the capitalization
rate of used general borrowings. The capitalization rate is calculated by weighted average interest rate of general
borrowings.
19.Biological Assets
None
20.Oil & gas assets
None
21..Intangible assets
(1) Valuation method, service life and impairment test
1.Measurement method of intangible assets
(1) The Company initially measures intangible assets at cost on acquisition;
The cost of an externally acquired intangible asset comprises its purchase price, related taxes and surcharges and
any other directly attributable expenditure of preparing the asset for its intended use. If the deferred payment of
purchase price of intangible assets exceeding normal credit terms is substantially of financial nature, the cost of
intangible assets should be determined at the present value of the purchase price.
The intangible assets acquired and used by the debtor to repay debt in debt restructuring should be recorded at the
fair value of the intangible assets. The difference between the book value of restructured debts and the fair value
of intangible assets used to repay debt should be included in the current profit and loss.
On the premise that non-monetary assets trade is of commercial nature and the fair value of the assets traded in or
out can be measured reliably, the intangible assets traded in with non-monetary assets should be recognized at the
fair value of the assets traded out, unless any unambiguous evidence indicates that the fair value of the assets
traded in is more reliable; as to the non-monetary assets trade not meeting the aforesaid premise, the book value of
the assets traded out and related taxes and surcharges payable should be recognized as the cost of the intangible
assets, with gains or losses not recognized.
(2) Subsequent measurement
The useful lives of intangible assets are analyzed on acquisition.
For intangible assets with definite useful lives, the Company shall adopt the straight-line method for amortization
within the period during which they can bring economic benefits to the Company; where the period during which
they can bring economic benefits to the Company cannot be forecast, those intangible assets shall be deemed as
assets with indefinite lives and no amortization will be made.
2.Estimate of useful life of intangible assets with limited useful life:
Estimated useful
Item Basis
lives
Land use right 50 years Land use certificate
5 years By reference to the same
software industry
The useful life and amortization method of intangible assets with limited useful lives should be reviewed.
After review, the useful life of intangible assets and amortization method at the end of the year are not different
from previous estimates.
3.Specific criteria for classification of research phase and development phase
Research phase: the phase for the creative and planned investigation and research to acquire and understand new
scientific or technological knowledge.
Development stage: the phase for the application of research achievements and other knowledge to a certain plan
or design, prior to the commercial production or use, so as to produce any new material, device or product, or
substantially improved material, device and product.
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Expenditure of an internal research and development project on the research phase shall be included in current
profit and loss when it occurs.
4.Specific criteria for capitalization of expenditures at the development phase
Expenditure on the development phase of an internal research and development project shall be recognized as
intangible assets only when the following conditions are simultaneously satisfied:
(1) It is feasible technically to finish intangible assets for use or sale;
(2) It is intended to finish and use or sell the intangible asset;
(3) The ways whereby the intangible asset is to generate economic benefits, including those whereby it is able
prove that there is a potential market for the products manufactured by applying this intangible asset or that there
is a potential market for the intangible asset itself; if the intangible asset will be used internally, its usefulness shall
be proved;
(4) It is able to finish the development of the intangible assets, and able to use or sell the intangible assets, with
the support of sufficient technologies, financial resources and other resources; and
(5) The expenditure attributable to the intangible asset during its development phase can be measured reliably.
22.Impairment of long-term assets
For the long-term equity investments, investment property, fixed assets, construction in progress, intangible assets,
and other long-term assets measured at cost model, if there are signs of impairment, an impairment test will be
conducted on the balance sheet date. If the recoverable amount of the asset is less than its book value after test,
assets impairment provision will be made at the difference and included into impairment loss. The recoverable
amount is determined at the higher of the net of the fair value less disposal costs and the present value of the
expected future cash flows. The assets impairment provision is calculated and made on an individual basis. If it is
difficult for the Company to estimate the recoverable amount of the individual asset, the recoverable amount of an
asset group to which the said asset belongs to will be determined. Asset group is the smallest asset group that can
independently generate cash inflows.
For goodwill, impairment test shall be conducted at least in the end of each year.
The Company conducts an impairment test for the goodwill. The book value of goodwill arising from business
combinations is amortized to relevant asset groups with a reasonable method from the date of acquisition; or
amortized to relevant combination of asset groups if it is difficult to be amortized to relevant asset groups. When
the book value of goodwill is amortized to the relevant assets group or combination of assets groups, it shall be
evenly amortized according to the proportion of the fair value of each assets group or combination of assets
groups in the total fair value of the relevant assets groups or combinations of assets groups. Where the fair value
cannot be reliably measured, it should be amortized according to the proportion of the book value of each asset
group or combination of assets groups in the total book value of assets groups or combinations of assets groups.
When making an impairment test on the relevant assets groups or combination of assets groups containing
goodwill, if any indication shows that the assets groups or combinations of assets groups may be impaired, the
Company shall first conduct an impairment test on the assets groups or combinations of assets groups not
containing goodwill, calculate the recoverable amount and compare it with the relevant book value to recognize
the corresponding impairment loss. Then the Company shall conduct an impairment test on the assets groups or
combinations of assets groups containing goodwill, and compare the book value of these assets groups or
combinations of assets groups (including the book value of the goodwill apportioned thereto) with the recoverable
amount. Where the recoverable amount of the relevant assets groups or combinations of assets groups is lower
than the book value thereof, the Company shall recognize the impairment loss of the goodwill.
The above losses from asset impairment shall not be reversed in subsequent accounting periods once recognized.
23.Long-term deferred expenses
Long-term deferred expenses refer to various expenses which have been already incurred but will be born
in this period and in the future with an amortization period of over 1 year.
1.Amortization method
Long-term deferred expenses are amortized evenly over the beneficial period.
2.Amortization years
The amortization period is determined in accordance with the contract or expected beneficial period.
24.Employee compensation
1.Accounting treatment of short-term compensation
During the accounting period of an employee' providing services for the Company, the Company should recognize
the short-term compensation actually incurred as liabilities and include it in the current profit and loss or the
relevant asset costs.
During the accounting period when employees serve the Company, the corresponding amount of employee
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compensation is calculated and determined according to the provision basis and provision proportion as stipulated
in the provisions on the social insurance premiums and housing funds paid for employees by the Company, as
well as trade union funds and employee education funds.
If the employee benefits are of non-monetary, they are measured at fair value if they can be reliably measured.
2.Accounting treatment of post-employment benefits
Defined contribution plans
The Company pays basic endowment insurance and unemployment insurance for employees according to the
relevant provisions of the local government, calculate payables according to payment base and proportion
specified by the local government and recognizes them as liabilities, and includes them into the current profit and
loss or the relevant asset costs.
3.Accounting treatment of dismissal benefits
The Company recognizes the employee compensation arising from dismissal benefits as liabilities and include it
in the current profit and loss when the Company cannot unilaterally withdraw dismissal benefits which are
provided for termination of labor relation plan or layoff proposal, or when the Company recognizes costs or
expenses (which is earlier) associated with restructuring of payment of dismissal benefits.
(4) Accounting methods for other long-term employee benefits
25. Estimated liabilities
1.Recognition criteria for estimated liabilities
Where all the following conditions are met simultaneously for any obligation pertinent to any contingency
including litigation, debt guarantee, onerous contract and reorganization, the Company will recognize such
contingency as estimated liabilities:
(1) The obligation is a present obligation of the Company;
(2) The performance of such obligation is likely to result in outflow of economic benefits from the Company;
and
(3) The amount of the obligation can be measured reliably.
2.Measurement of estimated liabilities
Estimated liabilities of the Company is initially measured as the best estimate of expenses required for the
performance of the relevant present obligations.
When the Company determines the best estimate, it should have a comprehensive consideration of risks with
respect to contingencies, uncertainties and the time value of money. If the time value of money is significant, the
best estimate shall be determined after discounting the relevant future outflow of cash.
The best estimate shall be accounted as follows in different circumstances:
If there is continuous range (or interval) for the necessary expenses, and probabilities of occurrence of all the
outcomes within this range are equal, the best estimate shall be determined at the average amount of upper and
lower limits within the range.
If there is no continuous range (or interval) for the necessary expenses, or probabilities of occurrence of all the
outcomes within this range are unequal although such a range exists, in case that the contingency involves a single
item, the best estimate shall be determined at the most likely outcome; if the contingency involves two or more
items, the best estimate should be determined according to all the possible outcomes with their relevant
probabilities.
When all or some of the expenses necessary for the liquidation of estimated liabilities of the Company are
expected to be compensated by a third party, the compensation should be separately recognized as an asset only
when it is virtually certain that the reimbursement will be obtained. The amount recognized for the reimbursement
should not exceed the book value of estimated liabilities.
26.Share-based payments
The Company's share-based payments are transactions in which the Company grants equity instruments or
undertakes equity-instrument-based liabilities in return for services from employees [or other parties]. The
share-based payments of the Company consist of equity-settled share-based payments and cash-settled
share-based payments.
Where equity-settled share-based payments are exchanged for providing services by employees, their fair values
are measured at those of employees’ equity instruments. Where the Company makes share-based payments in
restricted stocks and the employee makes capital contributions to subscribe such shares, such shares should not be
circulated or transferred before they reach unlocked conditions and before they are unlocked; if the unlocked
conditions specified in the final equity incentive plan fail to be reached, then the Company should repurchase the
shares at the price agreed in advance. When the Company received the payment of the employee for the
subscription of restricted stocks, it should recognize share capital and capital reserves (share premiums) in
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accordance with the payment for subscription received. The Company should fully recognize a liability at the
repurchase obligations and recognize treasury stock at the same time. On each balance sheet date within the
vesting period, the Company will, based on the newly-acquired subsequent information such as the changes in the
number of the vested employees and whether the specified performance is reached, make the best estimate on the
number of the vesting equity instruments. On such basis, the services received in the current period should be
included in the relevant cost or expenses according to fair value on the date of grant and capital reserves should be
accordingly increased. No adjustments should be made to the recognized relevant costs or expenses and total
owners' equity after the vesting date. However, when the right can be exercised immediately after the grant, it
should be included in the relevant costs or expenses at the fair value on the date of grant. The capital reserves
should be increased accordingly.
For share-based payments finally failing to be exercised, costs or expenses should not be recognized, unless the
conditions for vesting are market conditions or non-vesting conditions. At this time, whether market conditions or
non-vesting conditions are met or not, it is deemed to have vesting rights if non-market conditions in all the
vesting conditions are met.
If the terms of the equity-settled share-based payments were modified, the services received should be recognized
at least in accordance with the terms of the unmodified terms. Moreover, the modification of fair value of equity
instruments granted from any increase, or beneficial changes to the employee on the modification date should be
recognized as increases in services obtained.
If the equity-settled share-based payments were cancelled, they should be handled as accelerated exercise of rights
on the date of cancellation and the amount that is not yet recognized should be immediately recognized. Where
employees or other parties could choose to meet non-vesting conditions but failed to meet the conditions in the
vesting period, they should be handed as cancelling the equity-settled share-based payments. But, if new equity
instruments were granted and such new equity instruments granted are recognized to be used to replace the
cancelled equity instruments on the date of grant of new equity instruments, then the alternative equity
instruments for granted should be handled in the way same as the revision to terms and conditions on handling the
original equity instruments.
27. Preferred shares, perpetual capital securities and other financial instruments
28.Revenue
1.General recognition principles for revenues from sales of goods:
(1) The Company has transferred significant risks and rewards of ownership of the goods to the buyer;
(2) The Company retains neither continuing managerial involvement to the degree usually associated with
ownership nor effective control over the goods sold;
(3) The amount of revenues can be measured reliably;
(4) The related economic benefits are likely to flow into the Company;
(5) The costs incurred or to be incurred in respect of the transaction can be measured reliably.
2 .Specific principles
(1) Revenues from rendering of services
Revenues from rendering of services of the Company mainly refer to revenues from engineering design. If the
outcome of transactions can be estimated reliably, revenues shall be recognized at the important timing specified
in the design contract. That is to say, revenues shall be recognized at the percentage of workload of completed
design at the important timing in total design workload and expected recoverable contract amount.
Where the outcome of transactions on rendering of services cannot be reliably estimated, the revenues from
rendering of services shall be recognized at labor costs that have been incurred and that are expected to be
compensated. The labor costs that have been incurred are recognized as the expenses in the current period. Labor
costs that have been incurred but that are not expected to be compensated shall not be recognized as revenues.
When contracts or agreements of the Company concluded with other enterprises include sales of goods and
rendering of services, if the part of sales of goods and that of rendering of services can be distinguished and be
separately measured, they shall be treated separately; if the part of sales of goods and that of rendering of services
cannot be distinguished or can be distinguished but cannot be separately measured, the whole contract shall be
treated as sales of goods.
(2) Revenues from construction contracts
If the outcome of a construction contract can be reliably estimated, the revenues and costs from the construction
contract shall be recognized at the percentage of completion method on the balance sheet date. The percentage of
completion of the contract is recognized at the percentage of the accumulated contract costs actually incurred in
the estimated total costs.
Note: Calculation formula
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Sino Great Wall Co., Ltd. The Semi-annual Report 2016
Where the outcome of a construction contract cannot be estimated reliably, if contract costs are not expected to be
recoverable, contract revenue is recognized to the extent of actual contract costs that are expected to be
recoverable and the contract costs are recognized as contract expenses immediately when incurred. If contract
costs are not expected to be recoverable, they are recognized as expenses immediately when incurred and contract
revenue is not recognized. When uncertainties that make the outcome of a construction contract unable to be
estimated reliably do not exist, revenues and costs associated with construction contracts should be recognized
with the completion percentage method.
If the estimated total contract costs exceed the estimated total contract revenue, the expected loss is recognized as
current expenses.
Accumulated cost incurred and accumulative gross profit (loss) recognized as well as settled payments of the
construction contract should be presented at the net amount after the offset in the balance sheet. The part of
accumulated cost incurred plus accumulative gross profit (loss) recognized exceeding settled payments of the
construction contract should be presented as inventories; the part of accumulated cost incurred plus accumulative
gross profit (loss) recognized in short of settled payments of the construction contract should be presented as
advances from customers.
（3）Hospital income
Hospital income comes mainly from outpatient and inpatient, affirm income time when patients finished
settlement.Income from outpatient service, because in the patient of outpatient treatment, do not need to be
hospitalized, is a short treatment time, the clinic will be in the hospital after the settlement, pay treatment and is
expended, affirm income financial on the day after receipt of the money.
Resident income, because the hospital patients need to be in the hospital treatment for a period of time, when the
hospital new prepaid a part of the medical model, the first not affirm income. At discharge, the settlement of the
hospitalization medical treatment, the patient draw up invoices for the hospital to the patient, the financial confirm
the income of hospital patients.
29.Government subsidies
(1)Basis and accounting methods for assets related government subsidies
1.Type
Government subsidies are monetary assets and non-monetary assets freely obtained by the Company from the
government. They are divided into government subsidies related to assets and government subsidies related to
income.
Government subsidies related to assets refer to government subsidies which are acquired by the Company for
construction or form long-term assets in other ways, including the financial allocation for purchasing fixed assets
or intangible assets, the financial discount for special loan of fixed assets and others. Government subsidies
related to income refer to government subsidies other than government subsidies related to assets.
2.Timing of recognition
If a government subsidy is a monetary asset, it shall be measured in the light of the amount received or receivable.
If a government subsidy is a non-monetary asset, it shall be measured at its fair value; and if its fair value cannot
be obtained in a reliable way, it shall be measured at a nominal amount. Government subsidies measured at the
nominal amount are directly included in the current profit or loss.
3.Accounting treatment
For asset-related government grants, the Company will recognize them as deferred income, and include them in
non-operating income according to the useful lives of the related assets constructed or acquired;
if government subsidies related to income are used to compensate the Company’s relevant expenses or losses in
future periods, such government subsidies should be recognized as deferred income on acquisition and be
included in the current profit and loss during the period of recognition of the relevant expenses; if government
subsidies related to income are used to compensate the Company’s relevant expenses or losses incurred, such
government subsidies are directly included into the current profit and loss on acquisition.
30. Deferred income tax assets and deferred income tax liabilities
Deferred income tax assets are recognized at deductible temporary differences to the extent that it shall not exceed
the taxable income probably obtained in future period to be against the deductible temporary difference. For
deductible losses and tax credits that can be carried forward to subsequent periods, deferred tax assets arising
therefrom are recognized to the extent that future taxable income will be probable to be available against
deductible losses and tax credits.
Taxable temporary differences are recognized as deferred income tax liabilities except in special circumstances.
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Sino Great Wall Co., Ltd. The Semi-annual Report 2016
Such special circumstances include: the initial recognized of goodwill; other transactions or events that are not a
business combination and affect neither accounting profit nor taxable profit (tax loss).
If the Company has the legal right of netting and intends to settle in net amount or to obtain assets and discharge
liabilities simultaneously, the current income tax assets and current income tax liabilities of the Company shall be
presented based on the net amount after offset.
When the Company has the legal right for netting of current income tax assets and current income tax liabilities
and the income tax assets and income tax liabilities are related to the income tax levied on the same taxpayer by
the same tax administrative department or are related to different taxpayers but, within each future period of
reversal of important income tax assets and income tax liabilities, the taxpayers involved intend to settle current
income tax assets and current income tax liabilities or acquire assets and liquidate liabilities at the same time, the
Company's income tax assets and income tax liabilities shall be presented at the net amount after the offset.
31.Leases
1.Accounting treatment of operating leases
(1) The Company's rental expenses paid for leased assets shall, within the whole lease term excluding the
rent-free period, be amortized with the straight-line method and included in current expenses. Initial direct costs
related to lease transactions paid by the Company shall be included in the current expenses.
When assets lessor bears costs related to the lease borne by the Company, the Company shall deduct the part of
expenses from the total rents and amortize the rents after deduction over the lease term and include them in
current expenses.
(2) The Company's rental expenses collected for leased assets shall, within the whole lease term excluding the
rent-free period, be amortized with the straight-line method and recognized as the relevant rental income. Initial
direct cost associated with leasing transactions paid by the Company should be included in the current cost; the
cost of large amount shall be capitalized and included by stages in the current income according to the same base
recognized at the income related to leasing over the whole leasing period.
When the Company bears costs related to the lease borne by the leasee, the Company shall deduct te part of
expenses from the total rents and amortize the rents after deduction over the lease term.
2.Accounting treatment of finance leases
(1) Assets acquired under finance leases: at the inception of the leases, the Company shall recognize the
book-entry value of leased assets at the lower of their fair values or their present values of the minimum lease
payments, and shall recognize the book-entry value of long-term payables at the amounts of the minimum lease
payments, and shall recognize the differences between the above two book-entry values as unrecognized financing
charges. Under the effective interest method, the Company amortizes the unrecognized financing charges over the
lease term and includes them in the financial expenses. The Company records the initial direct expenses in the
values of leased assets.
(2) Assets leased under finance leases: On the lease beginning date, the Company recognizes the difference of
finance leasing receivables plus unguaranteed residual value and their present value as unrealized financing
income and recognized the unrealized financing income as rental income in each period when the rents will be
received in the future. The initial direct expenses of the Company related to lease are included into the initial
measurement of financing lease payment receivable, and the income recognized in lease period is decreased
accordingly.
□Applicable √Not applicable
32. Other significant accounting policies and estimates
(1)Change of main accounting policies
None
（2）Change of main accounting estimations
None
33.Change of main accounting policies and estimations
(1)Change of main accounting policies
None
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Sino Great Wall Co., Ltd. The Semi-annual Report 2016
（2）Change of main accounting estimations
None
34.Other
VI.Taxation
1.Main categories and rates of taxes
Tax type Tax basis Tax rate(%)
The output tax is calculated based on
taxable income in accordance with tax
laws, and value added tax payable should
VAT 11、36
be the balance of the output tax after
deducting the deductible input tax for the
current year
Calculated and paid at taxable operating
3、5
Business tax income
Calculated and paid at business tax,
value-added tax and consumption tax 1、5、7
Urban maintenance and construction tax actually paid
Enterprise income tax Calculated and paid at taxable income 15、25
In case there exist any taxpayer paying corporate income tax at different tax rates, disclose the information
Name of taxpayer Income tax rates
2.Tax preferences
（1）According to the provisions of the Circular of the State Administration of Taxation on Issuing the Tentative
Measures for the Collection and Administration of Income Tax on Enterprises That Have Operations in Different
Regions and That Pay Taxes in a Consolidated Manner (G.S.F. [2008] No. 28) issued on March 10, 2008, for
business institutions and establishments without the status of a legal person that are established in different
regions within the territory of China, namely those engaging in production and operating activities in different
regions, their head offices (parent companies) are enterprises that pay taxes in a consolidated manner. The parent
company pays taxes in a consolidated manner. The parent company pays taxes in a consolidated manner. Head
office and branches prepay enterprise income tax in installment, 50% of which is shared by all branches and 50%
of which is prepaid by the head office. Branches share the prepayments in the proportion of 35%, 35% and 30% of
operating income, employee compensation and total assets; final settlement of annual enterprise income tax shall
be made by the parent company at the tax authority and will no longer be allocated to branches.
（2）The Company's subsidiaries Sino Great Wall Group Co., Limited (hereinafter referred to as "Sino Hong
Kong") and Inrich Me Engineering Co., Limited (hereinafter referred to as "Inrich Me Engineering") are
enterprises established in the Hong Kong Special Administrative Region and are subject to enterprise profit tax at
the rate of 16.5%; Sino Great Wall International Engineering (MACAU) Co., Limited (hereinafter referred to as
"Sino Macau") is en enterprise established in the Macao Special Administrative Region and is subject to
complementary income tax at the progressive rate.
（3）The Company's wholly-owned subsidiary Sino Great Wall International Engineering Co., Ltd. (hereinafter
referred to as "Sino International") obtained the high-tech enterprise certificate (No. GR201511003125) jointly
approved and issued by Beijing Municipal Science and Technology Commission, Beijing Municipal Finance
Bureau, Beijing Municipal Office, SAT and Beijing Local Taxation Bureau on November 24, 2015. The certificate
was issued on November 24, 2015 and valid for 3 years, so Sino International would pay enterprise income tax at
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Sino Great Wall Co., Ltd. The Semi-annual Report 2016
the rate of 15% in 2015, 2016 and 2017.
(4) According to the Notice of Ministry of Finance and State Administration of Taxation on Full Implementation
of Replacing the Business Tax with the VAT, the company’s wholly-owned subsidiary-Wuhan Commercial &
Vocational Hospital Co.,Ltd shall enjoy the preferential policy with VAT exemption from May 1, 2016.
3.Other
VII. Notes to the major items of consolidated financial statement
1.Monetary funds
In RMB
Items Year-end balance Year-beginning balance
Cash on hand 1,421,081.59 1,349,587.20
Bank deposit 523,011,174.45 343,390,159.56
Other monetary capital 589,928,907.42 350,644,814.55
Total 1,114,361,163.46 695,384,561.31
Including: Total amount deposited abroad 64,361,377.79 60,170,773.67
2. Financial assets measured at fair value through current profit and loss
In RMB
Items Year-end balance Year-beginning balance
Financial assets measured at fair value through current profit
0 1,102,961.04
and loss
Total 0 1,102,961.04
3.Derivative financial assets
□ Applicable √ Not applicable
4.Note receivables
(1)Classification Note receivable
In RMB
Items Year-end balance Year-beginning balance
Bank acceptance bill 891,520.48 4,040,251.87
Commercial acceptance bill 209,999,799.21 216,408,496.07
Total 210,891,319.69 220,448,747.94
(2) Notes receivable pledged by the Company at the period-end
In RMB
Items Amount
（3）Notes receivable endorsed or discounted by the Company as at June 30,2016 but not expired on
the balance sheet date
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Sino Great Wall Co., Ltd. The Semi-annual Report 2016
In RMB
Amount underecognized as at June 30,
Item Amount derecognized as at June 30, 2016
2016
Bank acceptance bill 20,601,564.61
Commercial acceptance bill 107,157,999.08
Total 20,601,564.61 107,157,999.08
5. Account receivable
(1).Classification account receivables.
In RMB
Amount in year-end Amount in year- begin
Book Balance Bad debt provision Book Balance Bad debt provision
Category Book
Amount Proportio Amount Proportio Amount Proportio Amount Proportion( Book value
value
n(%) n(%) n(%) %)
Receivables subject
2,638,7
to provision for bad 3,535,94 373,709, 3,162,231 285,934,0 2,352,808,0
100.00% 10.57% 42,183. 100.00% 10.84%
debts on credit risk 0,852.18 026.59 ,825.59 96.56 87.33
89
characteristics basis
2,638,7
3,535,94 373,709, 3,162,231 285,934,0 2,352,808,0
Total 42,183.
0,852.18 026.59 ,825.59 96.56 87.33
89
Receivable accounts with large amount individually and bad debt provisions were provided
□Applicable √Not applicable
Account reveivable on which bad debt proisions are provided on age basis in the group
√ Applicable □ not applicable
In RMB
Amount in year-end
Aging
Account receivable Bad debt provision Rate of alloance(%)
Within item 1 year
Within 1 year 2,320,366,583.60 148,165,313.55 5.00%
1-2 years 838,376,994.69 83,837,699.47 10.00%
2-3 years 260,707,518.15 78,212,255.45 30.00%
3-4 years 102,177,573.37 51,088,786.69 50.00%
4-5 years 9,536,054.65 7,628,843.72 80.00%
Over 5 years 4,776,127.72 4,776,127.71 100.00%
Total 3,535,940,852.18 373,709,026.59
Notes：
（2）Bad debt provision accrual collected or switch back
Bad debt provision accrual was RMB58,627,821.32 ; The acmount collected or switches back amounting to
37,413,023.19.
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Sino Great Wall Co., Ltd. The Semi-annual Report 2016
（3）The current accounts receivable write-offs situation
In RMB
Items Amount written off
Account receivables actually written-off during the reporting period：
In RMB
Nature of account Reason for written Verification Arising from related
Name Amount written off
receivables -off procedures transactions (Y/N)
Explanation for write-off of account receivables:
（4）The ending balance of other receivables owed by the imputation of the top five parties
Amount in year-end
Name
Account receivable Proportion(%) Bad debt provision
China Harbour Engineering Company Ltd. 492,333,328.54 14.73 24,616,666.43
China Water Conservancy & Hydropower 310,280,223.17 8.95 15,514,011.16
Second Engineering Bureau Co., Ltd.
Zhong Ya Group 232,270,000.92 7.14 11,613,500.05
Oxley Diamond (Cambo 209,683,175.54 6.35 10,484,158.78
Henan No.1 Thermal Power Construction 178,865,404.63 5.51 8,943,270.23
Co., Ltd.
Total 1,423,432,132.80 42.67 71,171,606.64
(5) Account receivable which terminate the recognition owning to the transfer of the financial assets
(6) The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts
receivable
Other notes：
6.Prepayments
（1）Age analysis
In RMB
Year-end balance Year-beginning balance
Aging
Amount Proportion Amount Proportion
Within 1 year 109,659,061.20 93.07% 70,146,608.20 90.27%
1-2 years 5,273,833.77 4.50% 5,258,018.08 6.77%
2-3 years 1,681,622.82 1.40% 1,090,606.22 1.40%
Over 3 years 1,205,486.72 1.03% 1,212,335.88 1.56%
Total 117,820,004.51 -- 77,707,568.38 --
Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in time:：
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Sino Great Wall Co., Ltd. The Semi-annual Report 2016
（2）The ending balance of Prepayments owed by the imputation of the top five parties
Name Balance in year-end Proportion
Shenzhen Qianhai Yifang Supply chain 45,000,000.00 38.43
Management Co., Ltd.
DANCO For Building Materials Co. 14,892,674.54 12.72
Kaiyuan（Tianjing）Building materials Sales Co., 2,972,088.60 2.54
Ltd.
ABB LLC QATAR 2,712,624.20 2.32
TIANJIN TEXTILE GROUP IMPORT AND 2,206,750.71 1.88
EXPORT INC.
Total 67,784,138.05 57.89
Other notes：
7.Interest receivable
None
8.Dividend receivable
None
9.Other receivable
（1）Disclosure of calassification of other receivables
In RMB
Amount in year-end Amount in year-begin
Amount in Amount in
Amount in year-end Amount in year-begin
Category year-begin Book year-end
Book value
Amount Proportio Amount Proportio value Amount Proportio Amount Proportion(
n(%) n(%) n(%) %)
Other receivables
provided bad debt 510,129, 42,550,0 467,579,6 261,942 21,989,49 239,952,88
100.00% 8.34% 99.82% 8.39%
provision in credit 746.12 62.09 84.03 ,379.50 3.40 6.10
risk groups
Other account
receivable with
478,000 478,000.0
minor individual 0.18% 100.00%
.00 0
amount but bad debt
provision is provided
Total 510,129, 42,550,0 467,579,6 262,420 100.00% 22,467,49 8.56% 239,952,88
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Sino Great Wall Co., Ltd. The Semi-annual Report 2016
746.12 62.09 84.03 ,379.50 3.40 6.10
Other receivable accounts with large amount and were provided had debt provisions individually at end of period.
□Applicable √Not applicable
Other receivable accounts in Group on which bad debt provisions were provided on age analyze basis：
√Applicable □Not applicable
In RMB
Amount in year-end
Aging
Other receivable Bad debt provision Proportion（%）
Within item 1 year
Within 1 year 395,480,734.49 19,536,993.94 5.00%
1-2 years 67,082,013.00 6,708,201.30 10.00%
2-3 years 41,702,166.65 12,510,649.99 30.00%
3-4 years 2,248,477.69 1,124,238.85 50.00%
4-5 years 1,393,184.91 1,114,547.93 80.00%
Over 5 years 1,555,430.09 1,555,430.09 100.00%
Total 510,129,746.12 42,550,062.09
Notes:
Other receivable account in Group on which bad debt provisions were provided on percentage basis：
□Applicable √Not applicable
Other Receivable accounts on which bad debt provisions are provided by other ways in the portfolio：
□Applicable √Not applicable
（2）Bad debt provision accrual collected or switch back
Bad debt provision accrual was 19,848,625.05, the acount collected or switches back amounting to RMB
1,920,113.09.
(3)Other receivables actually written off in the repotring period
Nono
（4）Other receivables Nature of fund classification information
In RMB
Nature End of term Beginning of term
Bidding margins, performance bonds and
218,269,868.30 168,213,515.22
deposits
Petty cash and current accounts between
36,810,307.53 40,331,852.58
individuals
Current accounts between entities 246,530,131.21 53,815,203.95
Others 8,519,439.08 59,807.75
Total 510,129,746.12 262,420,379.50
（5）The ending balance of other receivables owed by the imputation of the top five parties
In RMB
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Sino Great Wall Co., Ltd. The Semi-annual Report 2016
Portion in total other Bad debt provision
Name Nature Year-end balance Age
receivables(%) of year-end balance
China Electric
Current accounts
Power Construction 228,768,436.44 Within 1 year 45.32% 11,438,421.82
between entities
Group Co., Ltd.
Leading Group
Office for
Reconstruction and
Extension Project of Performance bonds 39,490,000.00 2-3years 7.82% 11,847,000.00
Jingfeng Hotel of the
General Logistics
Department of PLA
Chengdu Qinyuan
Real Estate
Performance bonds 30,000,000.00 Within 1 year 5.94% 1,500,000.00
Development Co.,
Ltd.
Xinjiang
Hongguangshan Performance bonds 26,189,000.00 2-3 years 5.19% 7,856,700.00
Hotal Co., Ltd.
First United General Deposits 21,317,541.47 1-2 years 4.22% 2,131,754.15
Total -- 345,764,977.91 -- 68.49% 34,773,875.97
10.Inventories
（1）Inventories types
In RMB
Year-end balance Year-beginning balance
Items Book balance Provision for bad Book value Book balance Provision for bad Book value
debts debts
Raw materials 17,306,050.90 17,306,050.90 13,086,673.87 13,086,673.87
Stock
11,623,307.31 1,404,762.68 10,218,544.63 7,538,609.26 1,352,585.08 6,186,024.18
commodities
Engineering
209,966,380.82 209,966,380.82 148,457,514.11 148,457,514.11
construction
Materials in
8,365,576.38 8,365,576.38 403,456.75 403,456.75
transit
Total 247,261,315.41 1,404,762.68 245,856,552.73 169,486,253.99 1,352,585.08 168,133,668.91
（2）Inventory Impairment provision
In RMB
Increased in current period Decreased in current period
Year-beginning
Items Year-end balance
balance Provision Other Transferred back Other
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Sino Great Wall Co., Ltd. The Semi-annual Report 2016
Stock
1,352,585.08 52,177.60 1,404,762.68
commodities
Total 1,352,585.08 52,177.60 1,404,762.68
(3) Explanation on inventories with capitalization of borrowing costs included at ending balance
11. Assets divided as held-to-sold
In RMB
Items Book value Fair value Disposition expenses Disposition time
Other notes：
12. Non-current assets due within 1 year
In RMB
Items
Year-end balance Year-beginning balance
Long-term borrowings maturing within
14,020,966.88 15,717,270.60
one year
Total 14,020,966.88 15,717,270.60
Other notes：
13. Other current assets
In RMB
Items
Year-end balance Year-beginning balance
Input tax to be deducted 13,633,979.33 14,138,411.87
Total 13,633,979.33 14,138,411.87
Other notes：
14. Available-for-sale financial assets
None
15. Investment held-to-maturity
None
16. Long-term accounts receivable
None
17. Long-term equity investment
None
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Sino Great Wall Co., Ltd. The Semi-annual Report 2016
18. Investment property
(1) Investment property adopted the cost measurement mode1
□ Applicable √ Not applicable
(2) Investment property adopted fair value measurement mode
□ Applicable √ Not applicable
(3) Details of investment property failed to accomplish certification of property
None
19. Fixed assets
（1）Fixed assets
In RMB
Houses & Machinery
Items Transportations Other Total
buildings eqiupment
I. Original price
1.Opening balance 10,193,831.80 15,035,917.90 27,339,595.16 5,460,583.58 58,029,928.44
2.Increased amount ofthe 44,519,558.20
48,408,486.23 1,718,700.00 3,126,300.00 97,773,044.46
period
(1) Purchase 3,908,230.18 716,263.14 4,624,493.32
(2) Transferred from con
struction in prog 5,419,716.92 3,218,758.20 8,638,475.15
ress
(3)Increased of
42,988,769.31 41,300,800.00 1,718,700.00 3,126,300.00 89,134,569.31
Enterprise Combination
3. Decrease in the
current period
（1）Disposal
4. Balance at
38,182,128.68 34,701,224.13 32,097,141.34 7,801,079.72 112,781,573.87
period-end
II.Accumulated
amortization
1. Balance at
74,769.21 602,256.64 11,569,621.16 1,937,065.80 14,183,712.81
period-beginning
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2. Increase in the current
20,697,522.10 25,949,610.20 1,969,837.69 1,886,530.09 50,503,500.08
period
(1) Withdrawal 277,332.75 1,095,358.20 1,100,453.69 390,062.09 2,863,206.73
（2）Increased of
20,420,189.35 24,854,252.00 869,384.00 1,496,468.00 47,640,293.35
Withdrawal
3. Decrease in the current
period
（1）Disposal
4. Balance at
20,772,291.31 26,551,866.84 13,539,458.85 3,823,595.89 64,687,212.89
period-end
III. Impairment provision
1. Balance at
period-beginning
2.Increased amount of
the period
(1) Withdrawal
3. Decrease in the
current period
（1）Dispose
4. Balance at
period-end
IV.Book value
1.Book value at period
37,830,026.72 33,003,609.29 19,427,066.49 5,478,959.83 95,739,662.33
-end
2.Book value at
10,119,062.59 14,433,661.26 15,769,974.00 3,523,517.78 43,846,215.63
period-beginning
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Sino Great Wall Co., Ltd. The Semi-annual Report 2016
(2) List of temporarily idle fixed assets
None
(3) Fixed assets leased in from financing lease
None
(4) Fixed assets leased out from operation lease
None
20.Project under construction
（1）Project under construction
In RMB
Year-end balance Year-beginning balance
Items Book balance Provision for Book Net value Book balance Provision for Book Net value
devaluation devaluation
Suzhou Lvbang
4,978,670.79 4,978,670.79
Plant
Kuwait tower
2,101,034.12 2,101,034.12 5,038,257.45 5,038,257.45
cranes
Total 2,101,034.12 2,101,034.12 10,016,928.24 10,016,928.24
(2) Changes of significant construction in progress
In RMB
Includin
Capitalis g：
Amount Transferr ation of Current Capitalis
Increase Balance
at year ed to Other Proporti Progress interest amount ation of Source
Name Budget at this in
beginnin fixed decrease on(%) of work accumul of interest of funds
period year-end
g assets ated capitaliz ratio（%)
balance ation of
interest
Suzhou 6,478,67 4,978,67 441,046. 5,419,71
Lvbang Other
0.79 0.79 13 6.92
Plant
Kuwait 5,298,25 5,038,25 202,074. 3,139,29 2,101,03
tower Other
7.45 7.45 12 7.45 4.12
cranes
11,776,9 10,016,9 643,120. 8,559,01 2,101,03
-- -- --
Total 28.24 28.24 25 4.37 4.12
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Sino Great Wall Co., Ltd. The Semi-annual Report 2016
(3) List of the withdrawal of the impairment provision of the construction in progress
None
21. Engineering material
None
22. Liquidation of fixed assets
None
23. Productive biological assets
(1) Productive biological assets adopted cost measurement mode
□ Applicable √ Not applicable
(2) Productive biological assets adopted fair value measurement mode
□ Applicable √ Not applicable
24. Oil and gas assets
□ Applicable √ Not applicable
25.Intangible assets
（1）List of intangible assets
In RMB
Non-patent
Items Land use right Patent Software Total
Technology
I. Original price
1.Opening balance 7,714,044.00 2,452,559.29 10,166,603.29
2.Increased amount
ofthe period
(1) Purchase 361,487.18 361,487.18
(2)Internal Development
(3)Increased of Enterprise
97,642,600.00 525,000.00 98,167,600.00
Combination
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Sino Great Wall Co., Ltd. The Semi-annual Report 2016
3.Decreased amount of the
period
（1）Disposal
4. Balance at period-end 105,097,783.41 2,381,146.76 107,478,930.17
II.Accumulated
amortization
1. Balance at 181,202.41 717,654.55 898,856.96
period-beginning
2. Increase in the current 77,658.18 240,245.16 317,903.34
period
(1) Withdrawal 77,658.18 240,245.16 317,903.34
（2）Increase of withdrawal 0 0 0
3.Decreased amount of the
period
（1）Disposal
4. Balance at period-end 258,860.59 957,899.71 1,216,760.30
III. Impairment provision
1. Balance at
period-beginning
2. Increase in the current
period
(1) Withdrawal
3.Decreased amount of the
period
（1）Disposal
4. Balance at period-end
4. Book value
1.Book value at period -end 105,097,783.41 2,381,146.76 107,478,930.17
2.Book value at
7,532,841.59 1,734,904.74 9,267,746.33
period-beginning
The proportion the intangible assets formed from the internal R&D through the Company amount the balance of
the intangible assets at the period-end
26. R&D expenses
Current research and development spending is RMB 64.8587 million.
99
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
27. Goodwill
（1）Original book value of goodwill
In RMB
Amount at
Increase in the current period Decrease in the current period Amount at
Name period-beginni
period-end
ng
Shenzhen Yatian
Decoration Design
6,724,316.91 6,724,316.91
Engineering Co.,
Ltd.
Wuhan Commercial
& Vocational 27,257,314.49 27,257,314.49
Hospital Co.,Ltd
Total 6,724,316.91 27,257,314.49 33,981,631.40
（2）Impairment of goodwill
None
28.Long term amortize expenses
In RMB
Increase in this
Items Balance in year-begin Amortized expenses Other loss Balance in year-end
period
Renovation costs 14,879,816.11 1,182,947.82 2,449,698.71 13,613,065.22
Overseas guarantee
19,747,240.18 5,906,237.56 13,841,002.62
fees
Less: Long-term
borrowings maturing -15,717,270.60 -1,681,158.09 -14,036,112.51
within one year
Amortization of
22,800,000.00 22,800,000.00
advisory fees
Total 18,909,785.69 23,982,947.82 8,355,936.27 -1,681,158.09 36,217,955.33
Other notes
29.Deferred income tax assets/deferred income tax liabilities
(1)Details of the un-recognized deferred income tax assets
In RMB
Balance in year-end Balance in year-begin
Items Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
100
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
Provision for asset
379,263,022.08 57,764,223.79 308,401,589.95 46,440,178.39
impairment
Deductible losses 4,729,047.45 1,171,953.41 4,729,047.45 1,171,953.41
Provision for inventory
1,404,762.68 351,190.67 1,352,585.08 338,146.27
depreciation
Total 385,396,832.21 59,287,367.87 314,483,222.48 47,950,278.07
(2)Details of the un-recognized deferred income tax liabilities
In RMB
Balance in year-end Balance in year-begin
Items Temporarily Deductable Deferred Income Tax Temporarily Deductable Deferred Income Tax
or Taxable Difference liabilities or Taxable Difference liabilities
Taxable temporary
28,759,092.55 28,759,092.55 102,961.04 15,444.16
differences
Total 28,759,092.55 28,759,092.55 102,961.04 15,444.16
(3) Deferred income tax assets or liabilities listed by net amount after off-set
In RMB
Trade-off between the Opening balance of
Trade-off between the End balance of deferred
deferred income tax deferred income tax
Items deferred income tax income tax assets or
assets and liabilities at assets or liabilities after
assets and liabilities liabilities after off-set
period-begin off-set
Deferred income tax
59,287367.87 47,950,278.07
assets
Deferred income
28,759,092.55 15,444.16
liabilities
(4) List of unrecognized deferred income tax assets
None
(5) Deductible losses of unrecognized deferred income tax assets will due the following years
None
30. Other non-current assets
In RMB
Items End of term Beginning of term
Advances for purchase of long-term assets 100,540,012.47 95,353,390.28
Total 100,540,012.47 95,353,390.28
Other notes：
101
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
31 .Short-term loans
（1）Category of short-term borrowings
In RMB
Items End of term Beginning of term
Guaranteed borrowings 1,679,550,648.00 210,000,000.00
Commercial acceptance bills endorsed or
discounted but not expired on the balance 107,157,999.08 15,408,496.07
sheet date
Total 1,786,708,647.08 225,408,496.07
Notes ：
(2) List of the short-term loans overdue but not return
None
32. Financial liabilities measured at fair value through current profit and loss
None
33. Derivative financial liabilities
□ Applicable√ Not applicable
34. Note payable
In RMB
Items End of term Beginning of term
Bank acceptance 314,222,954.89 143,410,167.17
Total 314,222,954.89 143,410,167.17
The amount payable at the end of this term is RMB 0.00.
35. Accounts payable
(1) Details of accounts payable are as follows
In RMB
Items End of term Beginning of term
Project engineering Fund 988,847,920.66 1,331,950,114.27
Purchases of long-term assets 1,615,001.40 669,840.50
Goods 25,092,073.37
Total 1,015,554,995.43 1,332,619,954.77
102
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
(2) Accounts payable with major amount and aging of over one year
In RMB
Items End of term Beginning of term
Ceylon Steel Corporation Ltd 11,301,426.09 No settlement period
CUMMINS QATAR LLC 14,294,662.75 No settlement period
Total 25,596,088.84 --
Other notes：
36. Accounts received in advance
(1)Accounts received in advance
In RMB
Items End of term Beginning of term
Project engineering Fund 71,596,504.10 64,963,842.60
Accounts received in advance 2,010,456.57
Total 73,606,960.67 64,963,842.60
(2) Accounts received in advance with major amount and aging of over one year
None
(3) Assets settled formed by construction contract which has un-completed at period-end
None
37. Employees’ wage payable
(1) Details
In RMB
Items Beginning of term Increased this period Decreased this period End of term
I. Short-term wages 11,696,032.04 178,042,993.62 167,689,173.05 22,353,800.61
II. Welfare after leaving
of position-fixed 973,587.16 11,213,327.29 11,146,980.89 963,598.98
provision scheme
Total 12,669,619.20 189,256,320.91 178,836,153.94 23,317,399.59
(2) Details of short term wages
In RMB
Items Beginning of term Increased this period Decreased this period End of term
1.Wage, bonus,
10,957,918.68 157,078,284.50 146,607,604.08 21,732,547.10
allowance and subsidies
2. Employee welfare 8,416,493.99 8,416,493.99
3. Social insurance 678,746.36 6,155,891.89 6,296,998.78 537,639.51
Incl. Medical insurance 567,258.19 5,548,679.30 5,650,331.07 465,606.37
103
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
Labor injury insurance 48,777.45 176,589.60 206,506.67 18,860.35
Maternity insurance 62,710.72 430,623.10 440,161.04 53,172.79
4. Housing fund 59,367.00 4,855,735.40 4,831,488.36 83,614.00
5. Labour union fee and
1,536,587.84 1,536,587.84
employee education fee
Total 11,696,032.04 178,042,993.62 167,689,173.05 22,353,800.61
(3) Details of fixed provision scheme
In RMB
Items Beginning of term Increased this period Decreased this period End of term
Basic endowment
928,655.00 10,610,149.46 10,525,287.95 937,088.87
insurance premiums
Unemployment insurance
44,932.16 603,177.83 621,692.94 26,510.11
premiums
Total 973,587.16 11,213,327.29 11,146,980.89 963,598.98
Other notes：
38. Taxes payable
In RMB
Items Balance in year-end Balance in year-begin
VAT 367,314.45
Business tax 90,446,358.29 99,853,626.46
Enterprise income tax 145,877,663.27 172,280,720.23
Individual income tax 452,994.06 545,880.47
Urban maintenance and construction tax 5,860,575.19 6,413,578.69
Education surtax 4,617,917.03 5,106,621.62
Stamp tax and other taxes 90,148.95 258,548.19
Land use tax 65,905.22
Property tax 34,225.74
Total 247,445,787.75 284,826,290.11
Other notes：
39. Interest payable
In RMB
Items Balance in year-end Balance in year-begin
Interest payable on short-term borrowings 3,683,223.39 330,945.21
Interest payable on long-term borrowings 527,664.72 197,024.05
Total 4,210,888.11 527,969.26
40. Dividend payable
None
104
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
41 .Other payables
(1) Other payables by items
In RMB
Items Balance in year-end Balance in year-begin
Bidding margins, performance bonds and
54,271,289.84 19,625,824.93
deposits
Current accounts between individuals and
16,061,227.85 42,269,479.45
withholding payables
Lendings to shareholders 523,963,781.16
Current accounts between entities 190,987,095.04 49,313,976.16
Others 47,935.59 27,914.90
Total 261,367,548.32 635,200,976.60
(2) Other payables with large amount and aging of over one year
None
42. Divided into liability held for sale
None
43. Non-current liability due within one year
In RMB
Items Balance in year-end Balance in year-begin
Long-term loans due within 1 year 7,135,752.00
Long-term loans due within 1 year 25,175,567.33
Total 25,175,567.33 7,135,752.00
Other notes：
44. Other current liability
In RMB
Items Balance in year-end Balance in year-begin
Domestic L/C 68,823,529.00
Total 68,823,529.00
45. Long-term loan
(1) Category of long-term loan
In RMB
Items Balance in year-end Balance in year-begin
105
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
Pledged borrowings 19,480,800.00 19,480,800.00
Mortgage borrowings 20,977,534.52 10,659,849.14
Guarantee loan 380,000,000.00
Total 420,458,334.52 30,140,649.14
Notes of short-term loans category:
Other notes including interest rate range:
46.Bond payable
（1）Bond payable
None
(2) Changes on bonds payable (not including other financial instrument classified as preferred stock and
perpetual capital securities of financial liabilities)
(3) Note to conditions and time of share transfer of convertible bonds
(4) Note to other financial instrument classified as financial liabilities
None
47.Long-term payable
（1）Details
None
48. Long-term employee salary payable
（1）Long term payable staff salary list
None
（2）Defined contribution plans listed
None
49. Specific payable
None
50. Estimates liabilities
None
106
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
51. Deferred income
None
52. Other non-current liability
None
53.Stock capital
In RMB
Changed（+，-）
Balance in Balance in
Issuance of Bonus Capitalization of
year-begin Other Subtotal year-end
new share shares public reserve
Total of capital
446,906,582.00 1,251,338,429.00 1,251,338,429.00 1,698,245,011.00
shares
Other notes：
54.Other equity instruments
None
55.Capital reserves
In RMB
Items Opening balance Increase in the period Decrease in the period Closing balance
Capital (share capital)
394,052,904.72 394,052,904.72
premium
Other capital reserves -444,420,766.94 1,251,338,429.00 -1,695,759,195.94
Total -50,367,862.22 1,251,338,429.00 -1,301,706,291.22
Other explanation, including changes in the current period, reasons for the change:
56. Treasury stock
None
57. Other comprehensive income
In RMB
Occurred current term
Beginning of Amount Less: Less: Attributable Attributable End of
Items
term occurred accounted as Income tax to the to minority term
before other gains expenses parent co. shareholder
107
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
income tax previously but after tax s after tax
of the transferred to
period gain/loss this
period
I. Net amount included in other
comprehensive income that cannot be
0.00
transferred to profit or loss in the
future
II. Other Comprehensive income that
will be reclassified subsequently to 0.00 -132.50 -132.50 -132.50
profit or loss
Foreign currency translation
-132.50 -132.50
differences
Total other comprehensive income -132.50 -132.50 0.00 -132.50
Notes：
58. Special reserves
In RMB
Balance as at January 30, Increase in the reporting Decrease in the reporting Balance as at June 30,
Item
2016 period period 2016
Work safety costs 46,014,941.54 28,355,184.48 74,370,126.02
Total 46,014,941.54 28,355,184.48 74,370,126.02
Notes ：
59.Surplus reserve
In RMB
Items Year-beginning balance Increase in the current Decrease in the current Year-end balance
period period
Statutory surplus reserve 84,394,441.23 84,394,441.23
Total 84,394,441.23 84,394,441.23
Notes：
60. Retained profits
In RMB
Items Amount of this period Amount of last period
Undistributed profits at the beginning of the year
755,308,636.19
after adjustment
Retained profits at the end of the year 959,222,073.64
As regards the details of adjusted the beginning undistributed profits
(1)As the retroactive adjustment on Enterprise Accounting Standards and its related new regulations, the affected
beginning undistributed profits are RMB 0.00.
108
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
(2) As the change of the accounting policy, the affected beginning undistributed profits are RMB 0.00.
(3) As the correction of significant accounting error, the affected beginning undistributed profits are RMB 0.00 .
(4) As the change of consolidation scope caused by the same control, the affected beginning undistributed profits
are RMB 0.00.
(5) Other adjustment of the total affected beginning undistributed profits are RMB 0.00 .
61. Business income, Business cost
In RMB
Amount of current period Amount of previous period
Items
Income Cost Income Cost
Main Business 1,953,458,815.17 1,460,727,131.33 2,081,209,219.16 1,855,045,569.26
Other Business 115,940.34
Total 1,953,574,755.51 1,460,727,131.33 2,081,209,219.16 1,855,045,569.26
62. Business tax and subjoin
In RMB
Items Amount of this period Amount of last period
Business tax 8,128,747.41 40,170,349.00
Urban maintenance and construction tax 490,781.57 2,418,770.12
Education surtax 407,123.13 2,008,517.48
Total 9,026,652.11 44,597,636.60
Other notes：
63.Sales expenses
In RMB
Items Amount of this period Amount of last period
Employee compensation 3,018,618.91 3,893,894.54
Travel expenses 561,434.40 507,329.70
Entertainment expenses 217,201.30 671,038.48
Advertising and promotion expenses 2,675.00 155,680.00
Engineering maintenance fees 1,844,249.85 756,877.26
Others 506,544.07 1,518,085.32
Total 9,259,264.24 7,502,905.30
Other notes：
109
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
64.Administrative expenses
In RMB
Items Amount of this period Amount of last period
Employee compensation 55,087,982.62 38,266,641.97
Office costs 6,868,345.59 3,379,583.54
Rental fees 8,847,563.59 6,300,885.83
Travel expenses 6,178,764.80 2,177,580.26
Entertainment expenses 4,279,243.33 1,620,694.08
Depreciation of fixed assets 1,049,628.12 1,143,010.68
Vehicle costs 1,406,039.97 1,255,364.65
Amortization of long-term prepaid
2,346,368.89
expenses
Consulting fees 14,430,715.98 4,528,756.34
Recruitment fee 1,465,461.90 615,851.00
Factoring fee 1,408,333.33
Conference expenses 120,939.59 59,104.20
Tax fee 256,826.82
Cultivate fee 5,041.50
Insurance fee 3,473.00
Other 9,186,385.90 6,106,697.12
Transportation changes 52,639.40
Total 112,993,754.29 64,838,318.67
Other notes：
65. Financial expenses
In RMB
Items Amount of this period Amount of last period
Interest expenses 59,352,770.47 9,194,573.49
Less: Interest income -1,381,042.14 -617,254.61
Gains or losses on exchange -16,705,659.50 -1,095,650.66
Discount interest 6,317,701.34 1,538,894.32
Guarantee expenses 8,016,900.00
Handling charges and others 14,424,004.43 44,926,847.92
70,024,674.60
Total 17,908,021.84
Other notes：
66.Loss of assets impairment
In RMB
Items Amount of this period Amount of last period
Losses on bad debts 78,474,915.67 29,539,652.25
Losses on inventory depreciation 52,180.60
110
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
Total 78,527,096.27 29,539,652.25
Other notes：
67. Gains from changes in fair value
In RMB
Source of the gains from changes in fair
Amount of this period Amount of last period
value
Financial assets measured at fair value
25,148.61
through current profit and loss
Total 25,148.61
Other notes：
68. Investment income
In RMB
Items Amount of this period Amount of last period
Hold the investment income during from
46,868.49
available-for-sale financial assets
Total 46,868.49
Other notes：
69. Non-Operation income
In RMB
Items Amount of current period Amount of previous period Recorded in the amount of the
non-recurring gains and losses
Including：Gains from disposal
59,934.00 4,455.00
of fixed assets
Government Subsidy 342,246.00
Demolition compensation 29,071,295.00
Other 2,040.00 28,263.84
Total 29,133,269.00 379,419.84
Government subsidy reckoned into current gains/losses
In RMB
Whether the
impact of
Whether Amount of Amount of Assets-relate
Issuing subsidies on
Items Reason Nature special current previous d/income
subject the current
subsidies period period -related
profit and
loss
342,246.00
111
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
Total -- -- -- -- -- 342,246.00 --
Other notes：
70. Non-operating expenses
In RMB
The amount of non-operating
Items
Amount of current period Amount of previous period gains & lossed
Total losses from disposal of
31,839.34
non-current assets
Including: losses on disposal of
31,839.34
fixed assets
Compensation for demolition
2,755,912.00
and relocation
Other 1,600.00
Total 2,755,912.00 33,439.34
Other notes：
71 .Income tax expenses
(1) Table of income tax expenses
In RMB
Items Amount of current period Amount of previous period
Current income tax expenses 48,703,354.96 68,552,202.33
Deferred income tax expenses -10,840,595.13 -7,384,913.06
Total 37,862,759.83 61,167,289.27
(2) Adjustment progress of accounting profit and income tax
In RMB
Itmes Amount of current period
Total profits 239,440,408.16
Income tax expense 37,862,759.83
Other notes
72 .Other comprehensive income
More details can be seen in Note.
73.Items of Cash flow statement
（1）Other cash received from business operation
In RMB
Items Amount of current period Amount of previous period
Interest income 1,381,804.78 617,254.61
112
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
Margin and deposit 718,703,565.11 179,701,296.90
Government grants 342,246.00
Total 720,085,369.89 180,660,797.51
Notes：
(2)Other cash paid related to oprating activities
In RMB
Items Amount of current period Amount of previous period
Handling charges 10,189,145.12 2,780,709.64
Margin and deposit expenses 39,131,360.77 58,908,338.12
Selling expenses 871,447.72 1,620,247.76
General and administrative expenses 76,645,222.04 9,364,752.58
Current accounts 928,164,050.00 118,832,077.15
Total 1,055,001,225.65 191,506,125.25
Notes ：
（3）Cash received from other operating activities
None
（4）Cash payable from other investing activities
In RMB
Items Amount of current period Amount of previous period
Handling charges 3,884.29
Total 3,884.29
Notes：
（5）Cash received from other investing activities
In RMB
Items Amount of current period Amount of previous period
Individual financing funds paid 103,516,162.13 162,063,503.00
Receipt margin 15,218,569.41
Cost of financing 22,800,000.00
Total 561,003,771.39 177,282,072.41
Notes ：
（6）Cash paid for other financing activities
In RMB
Items Amount of current period Amount of previous period
Note margin paid 54,000,000.00 14,945,629.92
Individual financing funds paid 484,203,771.39 35,232,882.00
Total 50,178,511.92
538,203,771.39
Notes ：
113
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
74. Supplement Information for cash flow statement
（1）Supplement Information for cash flow statement
In RMB
Items Amount of current period Amount of previous period
I. Adjusting net profit to cash flow from
-- --
operating activities
Net profit 201,577,648.33 165,342,341.12
Add: Impairment loss provision of assets 78,527,096.27 29,539,652.25
Depreciation of fixed assets, oil and gas
1,119,746.80 1,146,313.55
assets and consumable biological assets
Amortization of intangible assets 439,145.36 232,435.80
Amortization of Long-term deferred
2,276,250.23 5,559,124.62
expenses
Loss on disposal of fixed assets, intangible
27,384.34
assets and other long-term deferred assets
Financial cost 70,024,674.60 9,637,817.15
Decrease in deferred income tax assets -11,803,334.90 -7,384,913.06
Increased of deferred income tax liabilities -15,444.16
Decrease of inventories -77,722,883.82 -1,299,687.82
Decease of operating receivables -2,317,677,180.26 -683,739,985.10
Increased of operating Payable 773,838,322.35 279,485,944.32
Other -42,342,300.00
Net cash flows arising from operating
-1,279,415,959.20 -243,795,872.83
activities
II. Significant investment and financing
-- --
activities that without cash flows:
III．Movement of cash and cash equivalents： -- --
Ending balance of cash equivalents 611,121,476.88 161,220,606.98
Less: Beginning balance of cash equivalents 582,743,756.81 243,759,954.90
Net increase of cash and cash equivalents 611,121,476.88 -82,539,347.92
(2)Composition of cash and cash equivalents
In RMB
Items Year-end balance Year-beginning balance
I. Cash 567,009,471.93 582,743,756.81
Including：Cash at hand 1,339,706.04 1,349,587.20
Demand bank deposit 386,144,573.21 104,244,908.25
114
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
Demand other monetary funds 179,525,192.72 238,006,010.05
III. Balance of cash and cash equivalents at
the period end 567,009,471.93 582,743,756.81
Other notes：
75. Notes on items of changes of owner’s equity
Name and adjusted amount on “Other” at balance of year-end of last year:
76. Assets with ownership or right-to-use restricted
In RMB
Item Book value as at December 31, 2015 Reason for restriction
Monetary fund 410,403,714.70 Deposit and letter of guarantee
Accounts receivable balance 1,214,497,227.15 Pledge
Total 1,624,900,941.85 --
Other notes：
77.Foreign currency monetary items
(1)Foreign currency monetary items
In RMB
Balance in foreign currency as RMB amount translated as at
Item Exchange rate
at June 30,2016 June 30,2015
Including: USD 5,168,928.51 6.6312 34,276,198.74
HKD 64,111.39 0.8547 54,796.01
OMR 49,576.30 1.8281 90,630.43
INR 368,616,372.61 0.0455 16,772,044.95
MOP 72,341.68 0.8329 60,253.39
PHP 10,102,444.08 0.1413 1,427,475.35
BUK 23,170,122.97 0.00566 131,142.90
MYR 934,385.85 1.6527 1,544,259.49
KWD 1,544,539.22 21.9735 33,938,932.55
Including: USD 73,329,588.87 6.6312 486,263,169.71
INR 700,449,263.53 0.0455 31,870,441.49
MOP 2,653,756.40 0.8329 2,210,313.71
KWD 28,955,403.59 21.9735 636,251,560.78
OMR 169,968,269.44 1.8281 310,718,993.36
MYR 21,483,689.85 1.6527 35,506,094.22
DZD 24,867,193.21 0.0602 1,497,005.03
Advances to suppliers
Including: USD 1,149,893.23 6.6312 7,625,171.99
115
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
OMR 6,576,121.91 1.8281 12,021,808.46
MYR 3,854,014.63 1.6527 6,369,529.98
INR 2,803,329.71 0.0455 127,551.50
KWD 3,738,463.20 21.9735 82,147,121.13
Other receivable
Including: USD 11,684,265.66 6.6312 77,480,702.44
HKD 135,408.00 0.8547 115,733.22
INR 17,774,389.26 0.0455 808,734.71
MYR 294,838.19 1.6527 487,279.08
PHP 116,997.00 0.1413 16,531.68
DZD 1,565,029.76 0.0602 94,214.79
BUK 26,110,932.74 0.00566 147,787.88
THB 1,022,031.04 0.1893 193,470.48
OMR 15,055,152.94 1.8281 27,522,325.09
KWD 655,443.27 21.9735 14,402,382.69
Account payble
Including: USD 48,258,439.99 6.6312 320,011,367.26
OMR 70,125,770.93 1.8281 128,196,921.84
INR 372,263,752.01 0.0455 16,938,000.72
PHP 44,130.43 0.1413 6,235.63
MYR 1,650,796.07 1.6527 2,728,270.66
KWD 6,883,490.56 21.9735 151,254,379.82
Advances from customers
DZD 89,827,578.85 0.0602 5,407,620.25
EUR 1,998,692.23 7.3888 14,767,937.15
Account payble
Including: USD 78,183.29 6.6312 518,449.03
DZD 255,913.35 0.0602 15,405.98
PHP 8,447.15 0.1413 1,193.58
OMR 140,982.17 1.8281 257,729.50
INR 45,167,823.54 0.0455 2,055,135.97
HKD 35,533.62 0.8547 30,370.59
KWD 113,842.95 21.9735 2,501,528.06
Other notes：
(2) Explanation on foreign operational entity, as for major foreign operational entity, disclosed foreign main
operation land, book-keeping currency and basis; and disclosed reasons if the book-keeping currency changed
√ Applicable □Not applicable
116
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
78. Hedging
Disclose hedging items by type of hedging as well as relevant arbitrage tool, qualitative and quantitative
information for arbitrage project:
79.Other
VIII. Changes of consolidation scope
1. Enterprise consolidation not under the same control
（1）Business combinations not under common control in the reporting period
In RMB
Revenue of Net profit of
Recognition
Timing of Costs for Proportion of Method of the acquiree the acquiree
Acquistition basis of the
Acquiree acquisition of acquisition of equities acquisition of from the from the
date acquisition
equities equities acquired (%) equities acquisition acquisition
date
date date
Complete the
change of
business
Wuhan Com
registration in
mercial &
97,000,000.0 Cash June 21, 2016
Vocational June 30,2016 100.00% 2016/06/30
0 purchase As of June
Hospital Co.,
30th the
Ltd
proportion of
payment over
50%
Other notes：
（2）Combination cost and goodwill
In RMB
Wuhan Commercial & Vocational Hospital Co.,Ltd
Combination cost
--Cash 97,000,000.00
Total of Combination cost 97,000,000.00
Amount of goodwill/combination cost less than the share of fair
27,257,314.49
value of identifiable net assets acquired
117
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Other notes:
(3) The identifiable assets and liabilities of acquiree at purchase date
In RMB
Wuhan Commercial & Vocational Hospital Co.,Ltd
Fair value on the acquisition date Book value on the acquisition date
Monetary capital 136,947,976.79 136,947,976.79
Account receivable 30,436,350.81 30,436,350.81
Inventory 3,254,649.29 3,254,649.29
Fixed assets 41,494,275.96 17,471,988.78
Intangible assets 98,167,600.00 7,153,516.99
Account payable 25,910,334.27 25,910,334.27
Net assets acquired 98,501,778.07 -16,534,592.13
Notes：
(4) The profit or loss from equity held by the date before acquisition in accordance with the fair value measured
again
Whether there is a transaction that through multiple transaction step by step to realize enterprises merger and
gaining the control during the Reporting Period
□ Yes √ No
(5) Note to merger could not be determined reasonable consideration or Identifiable assets, Fair value of liabilities
of the acquiree at acquisition date or closing period of the merge
（6）Other notes
2. Business combination under the same control
(1) Business combination under the same control during the Reporting Period
In RMB
Income from Net profits
the from the
Recognition Income Net profits
period-begin reporting
Combined Proportion of Combination basis of during the during the
Basis to the period to the
party the profits date combination period of period of
combination combination
date comparison compairsion
date of the date of the
combination combination
Other notes：
118
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
3. Counter purchase
Basic information of transactions, basis of transactions constituting counter purchase, whether assets and
liabilities reserved by listed companies constituting business and their basis, confirmation of combined cost, the
amount occurred when adjusting rights and interests in accordance with equity transaction and its calculation:
4. The disposal of subsidiary
Whether there is a single disposal of the investment to subsidiary and lost control
□ Yes √ No
Whether there are multiple transactions step by step dispose the investment to subsidiary and lost control in
Reporting Period
□ Yes √ No
5. Other reasons for the changes in combination scope
None
6.Other
IX. Equity in other entity
1. Equity in the subsidiary
（1）Constitute of enterprise group
Share-holding ratio
Subsidiary Main operation Registered place Business nature Acquired way
Directly Indirectly
Sino Great Wall
International
100.00% Acquisition
Engineering Co.,
Ltd. Beijing Beijing Decoration
Beijing Sino
Great Wall
100.00% Establish
Decoration Design and
Design Co., Ltd. Beijing Beijing consulting
Suzhou Lvbang
Wood Technology Production and 100.00% Establish
Co., Ltd. Suzhou Suzhou sales
Herabenna
Interior Design
100.00% Establish
Guangzhou Co.,
Ltd. Guangzhou Guangzhou Design
Sino Great Wall Construction,
Group Co., design, trade and 100.00% Establish
Limited Hong Kong Hong Kong investment
119
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
consulting
Shanghai Ling
Rui International
100.00% Establish
Trade Company
Limited Shanghai Shanghai Trade
Investment,
research and
Shenzhen development and
100.00% Establish
Hongtulve sales, trade as
Industrial Co., well as import
Ltd. Shenzhen Shenzhen and export
Mechanical and
electrical
engineering,
scientific 100.00% Establish
Inrich Me research, trade
Engineering Co., and investment
Limited Hong Kong Hong Kong consulting
Sino Great Wall
New Energy
100.00% Establish
(Beijing) Co., New energy
Ltd. Beijing Beijing technology
SINOGREATWA
LL(PHILIPPINE
S)INTERNATIO Building 100.00% Establish
construction and
NALCORPORIT
import and export
ION Philippines Philippines trade
SGWHPEngineer
ingConstructionS 100.00% Establish
Design and
DN.BHD Malaysia Malaysia construction
SINOGREATWA Commercial
activities allowed 100.00% Establish
LL（USA）.INC
The United States The United States by law
Shenzhen Yatian
Decoration
Design 70.00% Acquisition
Engineering Co., Design and
Ltd. Shenzhen Shenzhen construction
Sino Great Wall
International
Engineering 96.00% 4.00% Establish
(MACAU) Co., Design and
Limited Macao Macao construction
Wuhan Commerc
ial and Vocational
Wuhan Wuhan 100.00% Establish
Hospital Co.,Ltd
Sino Great Wall
Real Estate real estate
Wuhan Wuhan 80.00% Set Up
(Hubei) CO., development
LTD
Luyi Shuguang Luyi Luyi medical project 51.00% Acquisition
120
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Medical Industry (industry)
Investment investment,
Construction consultation and
CO., LTD service
solar energy
photovoltaic
Wu’an Juhe power generation
Photovoltaic Pow project
Wu’an Wu’an 100.00% Set Up
er Generation CO construction,
., LTD operation and
maintenance
solar energy
photovoltaic
Bozhou power generation
Guangcheng New project
Bozhou Bozhou 100.00% Set Up
Energy LLC construction,
operation and
maintenance
solar energy
photovoltaic
Qian’an Sino
power generation
Solar Energy
Qian’an Qian’an project 100.00% Set Up
Generation CO.,
construction,
LTD
operation and
maintenance
asset
Sino Great Wall management
(Beijing) investment,
Investment Fund Beijing Beijing economic and 100.00% Set up
Management trade consultation
CO., LTD
SINO GREAT
WALL commercial
INTERNATION activity allowed
Saipan Saipan 100.00% Set Up
AL by law
ENGINEERING(
CNMI) CO.,LTD.
Sino Heji environment
Suzhou Suzhou 80% Set Up
Environmental protection
121
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Protection material research
Material CO., and development,
LTD production and
sales
PT.SINO GREAT Construction, real
WALL estate investment,
Indonesia Indonesia 99.90% Set Up
INVESTMENT infrastructure
INDONESIA investment, etc.
PT.SINO GREAT
WALL
Indonesia Indonesia Construction 67% Set Up
CONSTRUCTIO
N INDONESIA
Notes: holding proportion in subsidiary different from voting proportion:
Basis of holding half or less voting rights but still been controlled investee and holding more than half of the
voting rights not been controlled investee:
Significant structure entities and controlling basis in the scope of combination:
Basis of determine whether the Company is the agent or the principal:
Other notes:
In July, 2016, SGW complete acquisition of Luyi Shuguang Medical Industry Investment Construction CO., LTD ,
but not including in the consolidation scope of current period.
(2) Significant not wholly owned subsidiary
Notes
Gains/loss of the period Dividend announced in Balance of equity of
Share portion of minor
Name of the subsidiaries attributable to minor the period to minor minor shareholders at
shareholders
shareholders shareholders end of period
Other notes：
(3) Material financial information of major non-fully-owned subsidiaries
None
(4) Significant restrictions of using enterprise group assets and pay off enterprise group debt
（5）Provide financial support or other support for structure entities incorporate into the scope of consolidated
financial statements
Other notes：
2. Changes in the owner's equity share of the subsidiary and the transaction is still controlled subsidiary
(1) Note to owner’s equity share changed in subsidiary
(2) The transaction’s influence to equity of minority shareholders and attributable to the owner's equity of
the parent company
None
122
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3. Equity in arrangement of joint venture or associated enterprises
None
4. Important common management
None
5. Equity in structured entities not included in the consolidated financial statements
Note of structured entities not included in the consolidated financial statements:
6.Other
X. The risk associated with financial instruments
XI. The disclosure of the fair value
1. Closing fair value of assets and liabilities calculated by fair value
None
2．Sustained and non-sustained first-level fair value measurement project price determinations is to acquire
identical assets on measurement date or the unadjusted quoted of liabilities in active markets.
3．Sustained and non-sustained second-level fair value measurement project, adopted valuation techniques and
significant parameters qualitative and quantitative information can be the directly or indirectly observable of
related assets or liabilities except first-level observables.
4．Sustained and non-sustained third-level fair value measurement project, adopted valuation techniques and
significant parameters qualitative and quantitative information can be the unobservable inputs of related assets or
liabilities.
123
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
5. The adjustment information about book value between the beginning and the end of the period and the
unobservable parameter sensitivity analysis of the sustained third-level fair value measurement projects
6. The sustained third-level fair value measurement projects that conversion has occurred among various levels in
the current period, the reasons for change and the policy determining the conversion point
7. Valuation techniques change occurred during the current period and the reasons for change
8. The fair value situations of the financial assets and financial liabilities not measured by the fair value
9.Other
XII. Related parties and related-party transactions
1.Parent company information of the enterprise
Shareholding ratio in the
Name Amount of shares held Voting ratio in the company(%)
company(%)
Chen Lve 582,944,556 34.33 34.33
2.Subsidiaries of the Company
See Note to subsidiaries of the Company.
3. Information on the joint ventures and associated enterprises of the Company
None
4.Other Related parties information
Other related party Relationship to the Company
Brother-in-law of the shareholder and actual controller of the
He Sen
Company
He Feiyan Wife of the shareholder and actual controller of the Company
Li Erlong etc. Directors, supervisors and senior officers of the Company
Qinghai Heyi Commercial Co., Ltd. Enterprise controlled by Wang Lei, the director of the Company
Qinghai Heyi Mining Co., Ltd. Enterprise controlled by Wang Lei, the director of the Company
Kunwu Jiuding Investment Holdings Co., Ltd. and its related Shareholder of the Company holding more than 5% shares, under
parties the common control with the Company
Wholly-owned subsidiary of the company in which the director
Beijing Baolilai Technology Co., Ltd. of the Company acts as a director
Other notes
5. Related party transactions
(1)Purchase or sale of goods, and rendering or receipt of labor services
Table of purchase of goods and receipt of labor services
In RMB
Related parties Content Reporting period Trading limit Over the Prior period
124
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
approved trading
limit or not
Qinghai Heyi Commercial Co.,
Material fund 21,340,600.00 60,000,000.00 No 1,750,600.00
Ltd.
Table of sales of goods and rendering of services
In RMB
Same period of last
Related parties Subjects of the related transactions Current term
term
Kunwu Jiuding Investment Holdings Co., Ltd.
257,000.00
and its related parties Funds for decoration projects
Beijing Baolilai Technology Co., Ltd. Funds for decoration projects 198,000.00 5,800,000.00
Notes
(2) Related trusteeship/contract
(3) Information of related lease
(4) Related-party guarantee
The Company was guarantor
In RMB
Execution accomplished
Secured party Guarantee amount Start date End date
or not
Chen Lve, He Feiyan 12,000.00 2016/01/13 2017/01/13 No
Chen Lve 10,000.00 2016/01/13 2017/01/12 No
Chen Lve 20,000.00 2016/01/21 2017/01/20 No
Chen Lve 10,000.00 2016/04/26 2017/04/26 No
Chen Lve, He Feiyan 10,000.00 2016/04/26 2017/04/25 No
Chen Lve, He Feiyan 20,000.00 2016/04/19 2018/04/18 No
Chen Lve 15,000.00 2016/06/21 2017/06/20 No
Chen Lve, Sino Greal
Wall Investment
40,000.00 2016/06/28 2018/06/27 No
(Beijing) Co., Ltd., He
Feiyan
Chen Lve, He Feiyan 2,000.00 2015/09/29 2016/09/29 No
Chen Lve 2,000.00 2015/11/17 2016/11/16 No
Chen Lve, He Feiyan 5,000.00 2015/12/16 2016/12/15 No
Chen Lve, He Feiyan 3,000.00 2016/03/25 2017/03/25 No
Chen Lve 10,000.00 2016/04/08 2017/04/08 No
Qinghai Heyi
Commercial Co., Ltd., 10,000.00 2016/04/27 2017/04/27 No
Chen Lve
Chen Lve 550.00 2015/02/11 2018/02/11 No
125
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
Chen Lve 550.00 2015/02/11 2018/02/11 No
Chen Lve 550.00 2015/07/28 2018/07/28 No
Chen Lve 550.00 2015/07/28 2018/07/28 No
Chen Lve 1,200.00 2016/01/13 2018/01/13 No
Chen Lve 1,200.00 2016/03/27 2018/03/27 No
Chen Lve 1,200.00 2016/03/27 2018/03/27 No
Chen Lve 5,000.00 2016/01/29 2016/07/28 No
Chen Lve 3,000.00 2016/03/04 2016/09/03 No
Notes
(5) Inter-bank lending of capital of related parties：
In RMB
Related parties Amount Start date End date Notes
Borrowing
Chen Lue 93,855,000.00 2016/01/01 2016/06/30
Xian Zhijuan 15,000,000.00 2016/01/01 2016/06/30
Lendings
(6) Related party asset transfer and debt restructuring
(7) Rewards for the key management personnel
In RMB
Items Current term Same period of last term
Remunerations of key managements 747,550 747,550
(8) Other related-party transactions
6. Receivables and payables of related parties
（1）Receivables
In RMB
Amount at year end Amount at year beginning
Name Related party Bad debt
Balance of Book Balance of Book Bad debt Provision
Provision
Kunwu Jiuding Investment
Account receivable Holdings Co., Ltd. and its 2,549,331.88 242,083.52 2,500,737.20 125,036.86
related parties
Beijing Baolilai Technology
2,816,000.00 140,800.00
Co., Ltd.
Advances to Qinghai Heyi Commercial
18,902,151.50
suppliers Co., Ltd.
126
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（2）Payables
In RMB
Name Related party Closing book balance Opening book valance
Qinghai Heyi Commercial Co.,
Account payable 1,750,581.64
Ltd.
Qinghai Heyi Commercial Co.,
Other account payable 0.00 2,999,209.78
Ltd.
7. Related party commitment
8.Other
XIII. Stock payment
1. The Stock payment overall situation
□ Applicable √ Not applicable
2. The Stock payment settled by equity
□ Applicable √ Not applicable
3. The Stock payment settled by cash
□ Applicable √ Not applicable
4. Modification and termination of the stock payment
None
5.Other
XIV. Commitments
1.Importance commitment events
Important commitments of existence of balance sheet date
As of June 30, 2016，The Company has no need to be disclosed commitment events
2. Contingency
(1) Significant contingency at balance sheet date
Contingent liabilities arising from pending litigation or arbitration and financial impacts thereof
127
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(1) Construction contract dispute case with Langfang Aomei Jiye Real Estate Development Co., Ltd.
On July 5, 2012, Langfang Aomei Jiye Real Estate Development Co., Ltd. submitted a civil case to the People's
Court of Langfang Economic and Technological Development Zone, claiming for terminating the Agreement on
Exterior Decoration Project for Shilangfang, Jinrong Street, Langhefang signed with the Company.
On May 29, 2013, Langfang Aomei Jiye Real Estate Development Co., Ltd. further claimed to the People's Court
of Langfang Economic and Technological Development Zone for ordering the Company to pay renovation costs
of RMB 1,616,354.00 caused by poor construction quality and losses on removed main materials of RMB
1,714,131.45.
On April 2, 2014, the People's Court of Langfang Economic and Technological Development Zone adjudged in
the Civil Judgment ([2012] L.K.M.C.Z. No.908) that Langfang Aomei Jiye Real Estate Development Co., Ltd.
shall pay funds for the project of RMB 1,915,487.91 to the Company and the Company shall pay renovation costs
and losses on main materials of RMB 2,540,572.32 to Langfang Aomei Jiye Real Estate Development Co., Ltd..
On May 28, 2014, the Company appealed to the People's Court of Langfang Economic and Technological
Development Zone. At present, the case is still pending.
(2) Project construction contract dispute case with Yu Jiaqiang
On April 21, 2014, Yu Jiaqiang submitted a civil case to the People's Court of Shijingshan District, Beijing,
claiming for ordering Beijing Tongrun Jingyuan Real Estate Development Co., Ltd., China Xin Xing Bao Xin
Construction Company and Sino Great Wall Decoration Engineering Co., Ltd. to pay funds for project in arrears
of about RMB 2 million and pay legal fares. At present, the case is still pending.
(3) Processing contract dispute case with Beijing Qianzhaofeng Stone Co., Ltd.
On April 12, 2015, Beijing Qianzhaofeng Stone Co., Ltd. submitted a civil case to the People's Court of Tongzhou
District, Beijing, claiming for ordering the Company to pay to Beijing Qianzhaofeng Stone Co., Ltd. funds for
stone in arrears, processing charges and interest. At present, the case is still pending.
(4) Sales contract dispute case with Beijing China Arts Panuo Display Art Development Co., Ltd.
On May 27, 2015, Beijing China Arts Panuo Display Art Development Co., Ltd. applied to Beijing Arbitration
Commission for an arbitration, requesting the Company to pay to Beijing China Arts Panuo Display Art
Development Co., Ltd. funds for furniture and the interest thereon, and to undertake all arbitration fees and
security fees. At present, the case is still waiting for arbitration.
(5) Sales contract dispute case with Tang Art Furniture Co., Ltd.
On November 2, 2015, Tang Art Furniture Co., Ltd. submitted a civil case to the People's Court of Yinhai District,
the Guangxi Zhuang Autonomous Region, claiming for ordering the Company to pay to Tang Art Furniture Co.,
Ltd. funds for goods and liquidated damages and claiming for ordering Beihai Jinchang Real Estate Development
Co., Ltd. to pay the debts on behalf of the Company. The Company and Beihai Jinchang Real Estate Development
Co., Ltd. were required to pay all legal costs. At present, the case is still pending.
(6) Sales contract dispute case with Beijing Yazhilv Commercial Co., Ltd.
On February 29, 2016, Beijing Yazhilv Commercial Co., Ltd. submitted a civil case to the People's Court of
Tongzhou District, Beijing, claiming for ordering the Company to repay to Beijing Yazhilv Commercial Co., Ltd.
arrears and liquidated damages for late payment and bear legal fees. At present, the case has not been heard yet.
(7) Construction contract dispute case with Shanxi Tianyuan Chenghui Investment Group Co., Ltd.
On November 17, 2014, the Company submitted a civil case to the Intermediate People's Court of Changzhi City,
Shanxi, claiming for ordering Shanxi Tianyuan Chenghui Investment Group Co., Ltd. to pay to the Company
funds for projects and liquidated damages for late payment and bear the legal fees. At present, the case is still
pending.
128
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
(2) The Company have no significant contingency to disclose, also should be stated
There was no significant contingency in the Company.
3.Other
XV. Events after balance sheet date
1. Significant events had not adjusted
On July7, 2016, the Proposal of the Company Meeting the Conditions of Non-public A-share Issuance and so
forth proposals were examined and approved in the 10th board meeting of the 7th session board of directors. In
order to improve the company's capital structure, enhance the capital strength and improve the company's
solvency and profitability, the company planned to non-publicly issue no more than 240,153,697 A-shares
(hereinafter referred to as "this issuance" or "this non-public issuance") to specific objects, which shall raise no
more than RMB 2,500,000,000. After deducting the share-issuing expenses, the net raised funds shall be used for
supplementing the liquidity and repaying the bank loans.
On July 25, 2016, the Proposal of the Company Meeting the Conditions of Non-public A-share Issuance and so
forth proposals were examined and approved in the 2016 second extraordinary general shareholder meeting. At
present, the company has completed the preparation work of the application documents for the company’s
non-public A-share issuance.
129
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2.Profit distribution
3.Sales return
4. Notes of other significant events
XVI. Other significant events
1. The accounting errors correction in previous period
2. Debt restructuring
3. Replacement of assets
（1）Non-monetary assets exchange
（2）Other assets replacement
4. Pension plan
5. Discontinuing operation
6. Segment information
7. Other important transactions and events have an impact on investors decision-making
8.Other
XVII.Notes s of main items in financial reports of parent company
1.Account receivable
（1）Account receivable
In RMB
Year-end balance Year-beginning balance
Book Balance Provision for bad Book Balance Provision for bad debts
Category debts Book
Book value
Amo Proporti Proportion value Proportio Proportion
unt on% Amount % Amount n% Amount %
Account receivable with
significant specific
30,614.00 100.00% 1,530.70 5.00% 29,083.30
amount that were
provisioned had debt
130
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
preparation separately
Total 30,614.00 1,530.70 29,083.30
Receivable accounts with large amount individually and bad debt provisions were provided
□Applicable √not Applicable
Using age methods to provision for bad debts of account receivable in group：
□Applicable √not Applicable
Using percentage balance method of provision for bad debts of account receivable in group：
□Applicable √not Applicable
Using other methods to provision for bad debts of account receivable in group：
(2) Accounts receivable withdraw, reversed or collected during the Reporting Period
The withdrawal amount of the bad debt provision during the Reporting Period was of RMB0.00; the amount of
the reversed or collected part during the Reporting Period was of RMB1,530.70.
(3) Particulars of the actual verification of accounts receivable during the Reporting Period
(4) Top five of account receivable of closing balance collected by arrears party
(5) Derecogniziton of account receivable due to the transfer of financial assets
(6) The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts
receivable
Other notes：
2.Other receivable
（1）Other receivable
In RMB
Year-end balance Year-beginning
Provision for Provision for bad
Book balance Book balance
bad debts debts
Category Book
Propor Propor Book value Propor
Amou Proporti value
Amount tion(% Amount tion(% tion(% Amount
nt on(%)
) ) )
Other Receivables
provided bad debt
1,304,458,764.96 1,304,458,764.96
provision in credit
risk groups
Total 1,304,458,764.96 1,304,458,764.96
Other Receivable accounts with large amount individually and bad debt provisions were provided
□Applicable √not Applicable
Using age methods to provision for bad debts of account receivable in group：
131
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□Applicable √not Applicable
Using percentage balance method of provision for bad debts of account receivable in group：
□Applicable √not Applicable
Using other methods to provision for bad debts of account receivable in group：
□Applicable √not Applicable
（2）Accrual period, recovery or reversal of bad debts situation
The current amount of provision for bad debts is RMB 0.00; recovery or payback for bad debts Amount is RMB 0
.00.
Where the current bad debts back or recover significant amounts:
(3) Particulars of the actual verification of other accounts receivable during the Reporting Period
(4) Other account receivable classified by account nature
In RMB
Nature Book balance at year end Book balance at year beginning
Current account 1,299,197,909.13 0
Petty cash 3,023,431.53 0
Deposit 237,424.30 0
Cash deposit 2,000,000.00
Total 1,304,458,764.96 0
(5) The top five other account receivable classified by debtor at period-end
(6) Account receivable involving government subsidies
(7) Other account receivable derecognized due to the transfer of financial assets
(8) Amount of transfer other account receivable and assets and liabilities formed by its continuous involvement
Other notes：
3. Long-term equity investments
In RMB
Amount at year end Amount at year beginning
Items
Book balance Bad debts Book value Book balance Bad debts Book value
The investment in
3,176,451,536.66 0.00 3,176,451,536.66 3,079,451,536.66 0.00 3,079,451,536.66
subsidiaries
Total 3,176,451,536.66 0.00 3,176,451,536.66 3,079,451,536.66 0.00 3,079,451,536.66
（1）The investment in subsidiaries
In RMB
132
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
Amount at year
beginning Increase in the Decrease in The current The end
Amount at year
Name provision for balance
current period the current end
impairment impairment
period
Wuhan Commercial &
0.00 97,000,000.00 97,000,000.00
Vocational Hospital Co.,Ltd
Sino Great Wall International
3,079,451,536.66 3,079,451,536.66
Engineering Co., Ltd.
Total 3,079,451,536.66 97,000,000.00 3,176,451,536.66 0.00
（2）Other notes
4. Business income and Business cost
In RMB
Items Amount of current period Amount of previous period
Business income Business cost Business income Business cost
Main operations 1,917,380.00 168,586.00
Other operations 115,940.34
Total 115,940.34 1,917,380.00 168,586.00
Other notes：
5.Investment income
None
.6.Other
XVIII. Supplement information
1. Particulars about current non-recurring gains and loss
√Applicable□ Not applicable
In RMB
Items Amount Notes
Except the effective hedge business related to the normal
operation business of the Company, the profit and loss in
the changes of fair values caused by the holding of
tradable financial assets and tradable financial liabilities 46,868.49 Proceeds from the sales of bank financial products
as well as the investment returns in disposal of tradable
financial assets, tradable financial liabilities and saleable
financial assets
Other non-operating income and expenditure except for 26,315,383.00 According to the Land Transfer (Expropriation)
133
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
the aforementioned items Compensation Agreement of Shenzhen Dapeng
New District People's Hospital Construction
Project, the compensation shall be made for the
expropriation of the land and on-ground buildings
in Kuixin community which belongs to the
company’s Kuiyong branch located in Shenzhen
Dapeng New district.
Total 26,362,251.49 --
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses and
its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure
for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as
recurring gains and losses, it is necessary to explain the reason.
□ Applicable √Not applicable
2 Return on net assets and earnings per share
Earnings per share（RMB）
Profit of the report period Return on net assets . Weighted（%）
Basic earnings per share Diluted gains per share
Net profit attributable to the
Common stock shareholders of 14.00% 0.12 0.12
Company.
Net profit attributable to the
Common stock shareholders of
12.20% 0.1 0.1
Company after deducting of
non-recurring gain/loss.
3.The differences between domestic and international accounting standards
(1) Differences between the net profit and net asset in the financial reports prepared under IAS and Chinese
Accounting Standard
□ Applicable √Not applicable
(2) Differences between the net profit and net asset in the financial reports prepared under IAS and Chinese
Accounting Standard
□ Applicable √Not applicable
(3) Explain reasons for the differences between accounting data under domestic and overseas accounting
standards, for audit data adjusting differences had been foreign audited, should indicate the name of the foreign
institutions
4.Other
134
Sino Great Wall Co., Ltd. The Semi-annual Report 2016
X. Documents available for inspection
1. Text of financial statement with signature and seals of legal person, person in charge of accounting works and
person in charge of accounting institution.
2. Original and official copies of all documents which have been disclosed on Securities Times and Hong Kong
Commercial Daily in the report period.
English translation for reference Only Should there be any discrepancy between the two versions, the Chinese
version shall prevail.
Sino Great Wall Co., Ltd.
August 25, 2016
135
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