Sino Great Wall Co., Ltd. The Semi-annual Report 2017
Sino Great Wall Co., Ltd.
The Semi-annual Report 2017
August 2017
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Sino Great Wall Co., Ltd. The Semi-annual Report 2017
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.
Mr.Chen Lue , The Company leader, Mr. Tang Xianyong, Chief financial officer and the Mr. Tang Xianyong, 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.
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.
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Sino Great Wall Co., Ltd. The Semi-annual Report 2017
Table of Contents
Semi-Annual Report 2017
I.Important Notice and Definitions
II. Corporate Profile and Key Financial Indicators
III. Business Profile
IV. Performance Discussion and Analysis
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. Corporate Bonds
X.Financial Report
XI. Documents available for inspection
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Sino Great Wall Co., Ltd. The Semi-annual Report 2017
Definition
Terms to be defined Refers to Definition
Company Law Refers to Company Law of the People’s Republic of China
Securities Law Refers to Securities Law of the People’s Republic of China
“CSRC” Refers to China Securities Regulatory Commission
Company,The Company, Sino Great Wall Refers to Sino Great Wall Co., Ltd.
Sino International Refers to Sino Great Wall International Engineering Co., Ltd.
BDO Refers to BDO China Shu Lun Pan Certified Public Accountants LLP
SZSE Refers to Shenzhen Stock Exchange
Reporting period Refers to January 1,2017 to June 30,2017
Wuhan Commercial worker Hospital Refers to Wuhan Commercial worker Hospital Co., Ltd.
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Sino Great Wall Co., Ltd. The Semi-annual Report 2017
II. Corporate Profile and Key Financial Indicators
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 Lue
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
Contact address Street,Economic Technology Development Street,Economic Technology Development
Zone , Beijing Zone , Beijing
Tel 010-89045855 010-89045855
Fax 010-89045856 010-89045856
E-mail 1208806865@qq.com 000018sz@sina.com
III. Other information
(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 2016 Annual Report.
IV. Summary of Accounting Data and Financial Indicators
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Sino Great Wall Co., Ltd. The Semi-annual Report 2017
Indicate by tick mark whether the Company needs to retroactively restate any of its accounting data.
□ Yes √No
Reporting period Same period of last year YoY+/-（%）
Operating income（RMB） 3,025,082,356.80 1,953,574,755.51 54.85%
Net profit attributable to the shareholders
268,606,450.03 202,299,416.64 32.78%
of the listed company（RMB）
Net profit after deducting of non-recurring
gain/loss attributable to the shareholders of 264,902,836.16 175,937,165.15 50.57%
listed company（RMB）
Cash flow generated by business operation,
-535,997,580.19 -1,256,615,959.20 57.35%
net（RMB）
Basic earning per share(RMB/Share) 0.16 0.12 33.33%
Diluted gains per
0.16 0.12 33.33%
share(RMB/Share)(RMB/Share)
Weighted average ROE(%) 14.39% 14.47% -0.08%
As at the end of the
As at the end of last year YoY+/-（%）
reporting period
Gross assets (RMB) 9,516,720,434.55 7,986,178,961.63 19.16%
Shareholders’ equity attributable to
1,956,577,635.45 1,777,948,117.49 10.05%
shareholders of the listed company（RMB）
V. 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
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese
accounting standards.
□ Applicable √Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign
accounting rules or Chinese GAAP(Generally Accepted Accounting Principles) in the period.
3.Note to the Difference in the Accounting Data based on the Accounting Standards of CAS and IAS.
□ Applicable √Not applicable
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Sino Great Wall Co., Ltd. The Semi-annual Report 2017
VI.Items and amount of non-current gains and losses
√Applicable □Not applicable
In RMB
Items Amount Notes
Govemment subsidy recognized in currentgain and loss(excluding
those closely related to the Company’s business and granted 60,363.52
under the state’s policies)
Non-operating incomeand expense other than the above 4,291,138.93
Less: Amount of influence of income tax 647,888.58
Total 3,703,613.87 --
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 2017
III. Business Profile
Ⅰ.Main Business the Company is Engaged in During the Report Period
Whether the company needs to comply with the disclosure requirements of the particular industry
Yes
Civil Engineering Construction
Sino Great Wall’s main business has two aspects: the first is construction of engineering projects, and the
second is medical & health industry investment and management. The business of construction of engineering
projects mainly includes international and domestic large-scale project contracting, with the international business
mainly centering on the countries and regions along “One Belt, One Road”, and currently, the international
business covers many countries and regions such as the Middle East, Southeast Asia and Africa. The Business
scope covers building project, infrastructure project, commercial complex project etc. For the domestic business,
with the company’s continuous improvement of construction qualifications, the company’s construction income in
PPP projects, building construction, municipal Engineering, infrastructure and new energy field has gradually took
the dominant position, while the proportion of income of pure decoration business slightly decreased. The medical
& health industry investment and management mainly adopts a number of ways such as the acquisition of the
existing hospital, the construction of the new hospital and operating hospital PPP project to enter the operation and
management of medical & health industry, thus to achieve the development of both the construction business and
the medical & health business.
Currently, the company’s construction qualifications include: first-class qualification as general contractor
of housing & construction project, first-class qualification as specialized contractor of architectural decoration
engineering design and construction, first-class qualification as specialized contractor of building curtain wall
engineering, first-class qualification as specialized contractor of ground foundation engineering, first-class
qualification as specialized contractor of firefighting facilities engineering, first-class qualification as specialized
contractor of waterproof anti-corrosion insulation engineering, second-class qualification as general contractor of
mechanical and electrical engineering construction, second-class qualification as specialized contractor of bridge
construction, second-class qualification as general contractor of petrochemical engineering construction,
second-class qualification as general contractor of municipal public engineering construction, second-class
qualification as specialized contractor of tunnel construction, second-class qualification as specialized contractor
of fabrication and installation of hydraulic metal structure, second-class qualification as general contractor of
water conservancy and hydropower project construction, third-class qualification as general contractor of railway
engineering construction, second-class qualification as general contractor of metallurgical engineering
construction, qualification regardless of grades as specialized contractor of special engineering, third-class
qualification as specialized contractor of highway pavement engineering, third-class qualification as specialized
contractor of highway subgrade engineering etc. The scope covers the engineering qualifications of building,
highway, railway, municipal utilities, water conservancy and hydropower, petrochemical, electric power and other
types of engineering.
For the international business, as of the end of the reporting period, the bid-winning but not yet completed
orders have amounted to more than RMB 40 billion, showing a good business development. For the domestic
business, the company, through introducing the management pundits and technical experts of fields such as
medical-care and architecture, constructed a competitive business team with the senior talented personnel, and
sped up the national business layout of PPP business. Since 2016, the company has won a number of health-care
PPP projects and infrastructure PPP projects, which would provide a good project support for the company's
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Sino Great Wall Co., Ltd. The Semi-annual Report 2017
future business performance.
Ⅱ.Major Changes in Main Assets
1. Major Changes in Main Assets
Main assets Major changes
Equity assets There is no change in equity assets.
Fixed assets Fixed assets increased by0.89% year on year. the change is subtle.
Intangible assets Intangible assets decreased by 2.99% year on year, the change is subtle.
Construction in progress increased of 3,788,297.42 yuan at the beginning of the period
Construction in process . Mainly due to the current Suzhou plant fire construction and overseas project tower
crane installation.
2. Main Conditions of Overseas Assets
□ Applicable √ Not applicable
Ⅲ.Analysis On core Competitiveness
Whether the company needs to comply with the disclosure requirements of the particular industry
Yes
Civil Engineering Construction
Sino Great Wall Co.,Ltd is a leading construction & engineering contractor in China with business covers
various types construction & engineering contracting. The implementation of the National Strategy of “One Belt,
One Road” will provide a good opportunity for the company's overseas business development. The company
continues to increase efforts to open up overseas markets, thus the overseas project orders have maintained a
rapid annual growth rate. With the continuous improvement of relevant construction qualifications, the company’s
domestic business also will have a lot of good opportunities as the country has been continuously promoted PPP
projects. The company's comprehensive strength, overseas influence and market competitiveness have increased
year by year.
1. Strategic positioning advantage
The “Construction & Engineering contracting” and “Medical & Health Business” will be the company’s two
strategic directions for future development. In 2013, the company set up the development goal “Making bigger
and stronger overseas business, and to become the world's leading international comprehensive construction &
building service provider”. In 2015, the company set up the “Medical & Health business” as another essential
development direction. All of those are to comprehensively cater the needs of the national strategies of “One Belt,
One Road” and “Medical & Health Industry Development”. The good prospects of “One Belt, One Road” projects
and “Medical & Health Industry” will provide a broad market space for the company’s business development. In
terms of engineering contracting, the early-development advantage of overseas business enables the company to
have rich management experiences and high-quality customers and establish talented teams, thus laid a solid
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Sino Great Wall Co., Ltd. The Semi-annual Report 2017
foundation for the company’s overseas business development. In terms of the Medical & Health business, the
company has set up project teams in many domestic places such as Sichuan, Henan and Hubei, and the company
has purchased Wuhan Commercial and Vocational Hospital Co.,Ltd and won the bids of many medical and health
PPP projects. Also, the company has established cooperative relationships with many hospitals and has recruited
many kinds of talents in terms of medical, hospital management, investment and financing etc, thus provided a
strong support for the Medical & Health business development.
2. Standardized and high-efficient management system, fully market-oriented operation mechanism
With the increasingly expanding of the company scale and business scope, the management for the company is
becoming more complex. However, the company timely set up the sound management system and the
authorization system to standardize the approval procedures, reduce the management hierarchy tiers and improve
the work efficiency and execution, thus ensured the efficient operation of the company’s business operation. For
the operation mechanism, the company bravely faces the fierce competition in the market, adheres to the
market-oriented development, respects the objective laws of the market and constantly improves its management
level, thus to timely response to changes in the market and continuously improve the company's market image,
construction quality and profitability.
3. Integrated design and construction advantages
The company has a wide range, high-ranking construction qualifications, and the company has integrated
design and construction experiences and good project management capabilities, so the company is able to provide
integrated design and construction services in terms of civil engineering, decoration, mechanical and electrical
installation and full industry chain of curtain wall, and the company can independently complete the whole
process of construction project. The company can form a comprehensive advantage in the field of building
engineering, so it can reasonably schedule the procurement, labor use and construction plan, as well as the
company can constantly optimize the process to reduce the project costs. The company’s excellent design ability,
sound construction quality, high-efficient construction planning and the comprehensive high-quality service
greatly enhanced the customers’ satisfaction.
4. Costs advantages and quality-control advantages
The core management staff of the company all have more than 10 years experiences of building and
engineering construction. Upon the deep understanding of the industry, the company established a relatively
perfect material procurement, labor management and quality control system. Through the price ceiling mode for
procurement, the company screens the suppliers in the early stage of a project, thus to ensure that the procurement
costs of the project materials would be in a reasonable scope. By locking the technical requirements and time
requirements of the project, the company can lock the labor costs. The company has set up strict quality-control
system for the design drawing, raw material procurement and each aspect of the project construction management,
thus to strictly ensue the project construction quality, so the company has won good reputation and got trust and
recognition by a great number of customers.
5. Talent advantage
The company's core management team staff has many years of experience in construction work and has
strong business ability and rich experience, with strong management ability and technological level. The company
always adheres to the talent concept of "Employees are the most valuable wealth of the company", and an active
and positive management team is the cornerstone of the company's stable, healthy and sustainable development.
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Sino Great Wall Co., Ltd. The Semi-annual Report 2017
IV. Performance Discussion and Analysis
Ⅰ.General
In the first half of 2017, along with the continuous implementation and further promotion of the three
strategies of the "One belt, one road" construction and the Integrated development of Beijing, Tianjin
municipalities and Hebei Province and The Yangtze River economic belt development, the infrastructure
construction and the engineering construction enjoys a relatively good development opportunity. The company
actively seized the opportunity and strongly expanded the overseas project contracting and investment business of
"One belt, one road" projects, increased the domestic healthcare and infrastructure PPP project investment, thus
gained good results.
In terms of the overseas business development, the company has successively signed the major construction
contract with a number of countries and regions in Southeast Asia, signed Strategic Cooperation Framework
Agreement with China Nuclear Industry No. 22 Construction Co., Ltd, signed Memorandum of Understanding on
the Construction of Kampuchea Railway Network with Kampuchea Royal Group and China Railway 17 Bureau
Group Co Ltd, thus those would be conducive to expand the domestic and international engineering contracting
business and to enhance the company's competitive advantage and overall profitability. The overseas business
development maintained a good momentum of development. As of the end of the reporting period, the overseas
in-hand orders have amounted to more than RMB 40 billion. In the field of medical investment, the company, by
the means of PPP, won the PPP infrastructure project of Fugou County high speed rail area, the comprehensive
management (adjusted) PPP engineering project of Fugou county urban section, the fitness center construction
project (Phase II) ) of Fugou County, etc, with that the total investment amounted to RMB 1.061 billion.
In the future, based on the study and judgment of the prospect and the status-quo analysis of the domestic and
international construction market and the health care industry and the infrastructure industry, the company will
continue to strengthen the overseas project contracting and investment related to "One belt, one road", enhance the
investment in domestic health-care and infrastructure PPP business, and ensure the rapid development of the
company's existing business.
Furthermore, in order to ensure the stable development of domestic business, the company responded to the
national call of establishment the Xiongan New Area. For supporting the construction of Xiongan New Area, the
company planned to put the registration addresses of the company's subordinate companies including the building
construction type company-Sino Great Wall International Engineering Co., Ltd and Sino Great Wall Southwest
Construction Engineering Co. Ltd into the Xiongan New Area. After the move of the registration addresses, the
company can better carry out the business in the region, which is in line with the company's overall development
strategy.
In the report term, the company realized operation income of RMB 3,025,082,356.80, an increase of 54.85%
from the last year; realized the operating profits of RMB 331,347,066.35, an increase of 55.52% from the last year;
and the net profit attributable to the parent company was RMB 268,606,450.03, an increase of 32.78% from the last
year.
Ⅱ.Main business analysis
Refer to relevant contents of “1.Summarization” in “Discussion and Analysis of Management”.
Changes in the financial data
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Sino Great Wall Co., Ltd. The Semi-annual Report 2017
In RMB
Reporting period Same period of last year YoY+/-（%） Reason for change
Overseas projects increased,
Operating revenues 3,025,082,356.80 1,953,574,755.51 54.85% domestic PPP and general
contracting projects increased.
Operating costs 2,319,598,615.76 1,460,727,131.33 58.80% Due to increased income
Due to increased business scale
Selling expense 18,094,586.39 9,259,264.24 95.42% increases the cost of
maintenance.
Administrative expense 125,176,758.15 112,993,754.29 10.78% Due to business development.
Due to increased short-term
Finance costs 139,811,809.59 70,024,674.60 99.66%
borrowings.
Income taxes 56,227,138.25 37,862,759.83 48.50% Due to increased profits.
This year to increase R & D
R &D 入 91,252,470.70 64,858,681.88 40.69%
investment.
Mainly the current period the
Net cash generate by payment collection is better,
-535,997,580.19 -1,256,615,959.20 57.35%
operating activities more than the previous year
growth.
Net cash generated by Mainly due to investment in PPP
-265,219,280.44 -100,287,677.86 -164.46%
investing activities project company.
Net cash generated by Due to the current return of
1,308,613,716.28 1,383,660,404.96 -5.42%
financing activities borrowing.
Net increase in cash and Mainly due to the increase in the
502,768,417.94 28,377,720.07 1,671.70%
cash equivalents net flow of operating activities.
Mainly due to the normal
implementation of the
Prepayments 187,002,578.78 319,206,798.63 -41.42% procurement contracts and part
of the advance payment turning
into the costs
Mainly due to increase of paid
deposit for bid and contract
Other account receivable 923,145,857.89 651,012,132.91 41.80%
performance for undertaking the
large-scale projects
Mainly due to the investment in
Other non-current asset 365,192,873.00 116,902,258.30 212.39% the establishment of PPP project
company
Mainly due to the increase in
Short-term loans 2,750,186,595.11 1,966,058,357.59 39.88%
credit
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Sino Great Wall Co., Ltd. The Semi-annual Report 2017
Mainly due to the reclassification
Non-current liability due in
814,408,879.06 175,958,998.04 362.84% of long-term borrowings due
1 year
within one year
Mainly due to the reclassification
Long-term loan 444,341,594.32 786,858,878.82 -43.53% of long-term borrowings due
within one year
Mainly due to the increase in
Net profit attributable to the
268,606,450.03 202,299,416.64 32.78% business scale during the
owners of parent company
reporting period
Mainly due to the smooth
Cash received from sales of
1,722,890,541.67 805,577,789.73 113.87% progress of the project business
goods or rending of services
and a good collection
Major changes to the profit structure or sources of the Company in the reporting period
□ Applicable √Not applicable
No such cases in the reporting period。
Breaqkdown of main business
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(%)
(%) (%)
Industry
EPC 2,036,940,961.32 1,518,629,390.71 25.45% 42.36% 47.50% -2.59%
Decoration works 988,141,395.48 800,969,225.05 18.94% 92.03% 86.19% 2.54%
Product
Area
Domestic 1,428,218,809.70 1,017,468,548.83 28.76% -2.02% -3.17% 0.84%
Overseas 1,596,863,547.10 1,302,130,066.93 18.46% 222.11% 217.59% 1.16%
III.Non-core business analysis
□ Applicable √Not applicable
IV.Analysis of assets and liabilities
1.Significant changes in asset composition
In RMB
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Sino Great Wall Co., Ltd. The Semi-annual Report 2017
End of same period of last
End of Reporting period
year
Change in
As a As a
percentage( Reason for significant change
percentage percentage
Amount Amount %)
of total of total
assets(%) assets(%)
Monetary Mainly due to the increase in current
1,720,256,083.77 18.08% 114,361,163.46 1.98% 16.10%
funds loans
Mainly due to the progress of the
Account implementation of large projects,
4,828,966,377.80 50.74% 3,162,231,825.59 54.69% -3.95%
receivable project income increased, the reporting
period has not yet received payment.
At the end of the period, the amount of
raw materials and inventory increased,
Inventory 301,728,576.28 3.17% 245,856,552.73 4.25% -1.08%
and the unsettled part of the project
was completed.
Mainly due to the acquisition of
Fixed assets 127,345,176.80 1.34% 95,739,662.33 1.66% -0.32% commercial hospitals in the current
period.
Mainly due to the completion of the
Construction installation of the Kuwaiti project
3,788,297.42 0.04% 2,101,034.12 0.04% 0.00%
in process crane and the completion of the
construction of the Suzhou factory.
Short-term Due to the increase in bank borrowings
2,750,186,595.11 28.90% 1,786,708,647.08 30.90% -2.00%
loans in the current period.
Long-term Due to the increase in bank borrowings
444,341,594.32 4.67% 420,458,334.52 7.27% -2.60%
loans in the current period.
2.Asset and Liabilities Measured by Fair Value
□ Applicable √ Not applicable
3. Restricted asset rights as of end of the reporting period
As of the end of the reporting period, there were no such circumstances where any main assets of the
Comapnyweresealed, distrained, forzed, impawned, pledged or limited in any other way.
Ⅴ.Investment situation
√ Applicable □Not applicable
Investments made in the reporting period Investments made in same period of last +/- %
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Sino Great Wall Co., Ltd. The Semi-annual Report 2017
year
135,075,100.00 97,000,000.00 39.25%
2.Condition of Acquiring Significant Share Right Investment during the Report Period
□ Applicable √ Not applicable
3.Situation of the Significant Non-equity Investment Undergoing in the Report Period
□ Applicable √ Not applicable
4.Investment of Financial Asset
（1）Securities investment
□ Applicable √ Not applicable
（2）Investment in Derivatives
□ Applicable √ Not applicable
The Company had no investment in derivatives in the reporting period.
VI. Sales of major assets and equity
1. Sales of major assets
□ Applicable √ Not applicable
The Company had no sales of major assets in the reporting period.
2.Sales of major equity
□ Applicable √ Not applicable
Ⅶ.Analysis of the Main Share Holding Companies and Share Participating Companies
√ Applicable □ Not applicable
Situation of Main Subsidiaries and the Joint-stock Company with over 10% net profit influencing to the Company
In RMB
Main
Company Registered Operating
Company type business Industry Total assets Net assets Turnover Net profit
name capital profit
scope
Sino Great Constructio Building
Wall n general decoration 470,136,09 8,490,666,7 2,052,478,2 2,959,812,9 382,673,8 329,920,483.
Subsidiaries
Internation contracting, and other 9 22.89 10.74 69.97 00.71 53
al labor constructio
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Sino Great Wall Co., Ltd. The Semi-annual Report 2017
Engineerin subcontracti n industries
g Co., Ltd. ng;
engineering
survey and
design;
professional
contracting;
engineering
design for
the
construction
decoration;
building
curtain wall
design,
Engineering
and
technical
research and
experimenta
l
developmen
t.etc.
Subsidiaries obtained or disposed in the reporting period
□ Applicable √ Not applicable
Notes
VIII．Structured vehicle controlled by the Company
□ Applicable √ Not applicable
IX. Prediction of business performance for January -September 2017
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
X.Risks facing the Company and countermeasures
（1）Influence of Macro Economy and Policy
The construction industry and the health-care industry, in which the Company are engaging, are influenced
greatly by macro economy and policies. The uncertainty in international and domestic economic situation and the
changes of national policy will bring potential risks to the Company’s market development and operating
management.
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Sino Great Wall Co., Ltd. The Semi-annual Report 2017
Solutions: Pay constant attention to the international and domestic economic situation to make reasonable
prejudgement. Make timely adjustment for operating strategy and marketing policy and make pre-arranged
planning which copes with market changes to guarantee the smooth realization for business goals in 2017.
(2)Risks Aggravated by the Market Competition
With more competitions which domestic enterprises and international construction market take part in, the
Company’s overseas business operating will be impacted more or less.
Solutions: Strengthen team construction and take first-mover advantage of the Company’s overseas business.
Draw lessons from the past, improve the capacity of management and control for the Company’s own projects to
constantly heighten the Company’s core competitiveness.
(3)Management Risks Brought by Constant Business Scope Enlargement
In views of the period where the Company is in speedy development, the Company has transferred from the
sub-contractor of professional decoration to the general contractor of building construction, and the speedy
development in overseas business puts forward higher demands to the Company’s organization operating and
project management.
Solutions: Strengthen learning and training, constantly improve the quality of the on-the-job managers and
technicists, introduce high-level personnel and improve the overall management capacity and the technical
capacity of the Company to fully adapt to the pace of the Company’s speedy development
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Sino Great Wall Co., Ltd. The Semi-annual Report 2017
V. Important Events
1. Annual General Meeting and Extraordinary Shareholders’ Meetings in the Reporting Period
1.Annual General Meeting
Investor Index to disclosed
Meeting Type Convened date Disclosure date
participation ratio information
2016 Annual General
Meeting (No.2017-042)
published on Securities
2016 Annual General Annual General Times,Hong Kong
39.58% May 19,2017 May 20,2017
Meeting Meeting Commercial Daily and
Juchao Website
（http://www.cninfo.com.cn
）on May 20,2017.
2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √Not applicable
II. Proposal for profit distribution and converting capital Reserve into share atial for the reporting period
□ Applicable √Not applicable
For the reporting period, the Company plans not to distribute cash dividends or bonus shares or convert capital
reserve into share capital.
III. The fulfilled commitments in the reporting period and under-fulfillment commitments by the end of the
reporting period made by the company, shareholder, actual controller, acquirer, director, supervisor,
senior management personnel and other related parities.
√ Applicable □ Not applicable
Time of
Period of
Commitment making Fulfillme
Commitment Type Contents commitme
maker commitme nt
nt
nt
Commitment on share
No No No No No
reform
18
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
Commitment in the
acquisition report or
No No No No No
the 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 manage my shares
of Victor Onward Holdings, within 36 months
from the date new shares list 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 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
Strict
Commitments in Chen Lue, He after the transaction has been completed, the March
Stock lock 36 months performi
assets reorganization Feiyan lock-up periods of my shares of Victor 19,2015
ng
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
19
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
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
Strict
to the public transfer through the stock market March
Chen Lue Stock lock 36 months performi
or by agreement, within 36 months from the 19,2015
ng
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 completed, I and other
companies controlled by me (if any), except
for listed companies and their holding
subsidiaries, will not possess the funds of
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
Strict
No capital with listed companies or Sino Great Wall, March
Chen Lue Long-term performi
occupation which has nothing to do with normal 19,2015
ng
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.
Cash In view of the fact that the houses rented by March Strict
Chen Lue Long-term
compensat Sino Great Wall and it’s son subsidiaries, 19,2015 performi
20
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
ion subsidiaries, haven’t rental registration, I ng
promise, if Sino Great Wall and its son
subsidiaries, subsidiaries, were penalized by
real estate management 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
Cash Strict
existed in the Libo project, I promise as March
Chen Lue compensat Long-term performi
follows: if Sino Great Wall got penalized by 19,2015
ion ng
government 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 of the litigation and arbitration
cases, including 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,
Cash Strict
exceed the amount of liabilities which March
Chen Lue compensat Long-term performi
recognized in the “Audit Report” made for 19,2015
ion ng
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.
21
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
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
Cash compensate by cash for parent-subsidiary Strict
March
Chen Lue compensat companies of Sino Great Wall’s losses which Long-term performi
19,2015
ion are caused by operation and finance due to the ng
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 to law, which
resulted in any losses to Sino Great Wall ,
including the competent authorities’
Cash Strict
requirement for Sino Great Wall or its March
Chen Lue compensat Long-term performi
subsidiary to make supplementary payment, 19,2015
ion ng
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 ”.
Cash “At present, Suzhou Lvbang has possessed March Strict
Chen Lue Long-term
compensat one state-own land use right, of which the 19,2015 performi
22
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
ion land certificate is Suzhou Guo Yong(2014) ng
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
rural construction bureau, of which other
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”) signed among Victor Onward
Holdings, all shareholders of Sino Great Wall
Cash and Union Development Group Co., Ltd Strict
March
Chen Lue compensat (hereinafter referred to as“ Union Group”) on Long-term performi
19,2015
ion October 13, 2014, all the creditor’s rights and ng
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
23
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
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 Lue
and He Feiyan Concerning on Performance
Compensation” and its supplemental
agreement , Chen Lue’s promised Sino Great
Wall that the net profit deducted by incidental
Performan losses and attributable to the parent
Strict
Chen Lue , He ce companies’ owners after audition of 2015, May
Long-term performi
Feiyan commitme 2016 and 2017 shall be respectively more 11,2015
ng
nt 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 Lue and He
Feiyan will compensate for listed company in
accordance with “Performance Compensation
Agreement” and its supplemental agreement
1. This reorganization is planned to place in
asset. At present, complete separation has
existed between me or other enterprises under
my possession (if any) and the listed company
ndependen
in staff, asset, finance, institution and business Strict
Chen Lue; He t September
of Sino Great Wall. Independence exists in Long-term performi
Feiyan, competitio 30,2015
both staff, asset, finance, institution and ng
n
business and no confusion exists. 2. I
undertake, after this reorganization, to ensure
the continued complete separation between
me or other enterprises under my
24
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
possession(if any) and the listed company in
staff, asset, finance, institution and business,
sustaining the independence in the listed
company’s staff, asset, finance, institution and
business, as follows: (1).The Ensurance of
Independence for Listed Company’s
Personnel Ensure that the general manager,
the vice-general manger, the chief financial
officer, the board 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
25
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
makes the financial decision-making
independently, I will not intervene the
utilization 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. "
“Once I or our unit acquire the newly-added
share of Victor Onward Company through this Strict
Chen Lue; He Related March
transaction, no transfers will occur in any way Lont-term performin
Feiyan; transaction 19,2015
within 12 months from the listing date, g
including but not limited to public transfer by
26
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
securities market or transfer by agreement,
and no entrusting for others to manage my
holding share of Victor Onward Holdings .
Once the above-mentioned lockup period
expires, I will implement the selling or
transferring of the newly-added share of
Victor Onward Holdings according to the
relevant provision of CSRC and SZSE.
During the assets reorganization, the house
property and land without property certificate
in the disposed assets within the plant area of
Kuixin Community of Kuichong Street of
Longgang District and the expected
compensations, as well as the expected
compensations concerning to the 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
Union certificate as well as regaining of plots
Strict
Development Income planned as schools, Union will return the March
Long-term performin
Group Co., disposal benefits to Victor Onward Holdings, in 10 19,2015
g
Ltd. 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
27
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
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
Through Issuing Shares (hereinafter referred
to as Agreement) signed on October 13, 2014
by the company and all shareholders of Victor
Onward Co. Ltd.. and Sino Great Wall, Victor
Onward Holdings should obtain the letter of
approval 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
Union appointed by the company is in charge of
Cash Strict
Development paying off debts or reaching agreement on the March
compensat Long-term performin
Group Co., solution with the creditor. When there are 19,2015
ion g
Ltd 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.
28
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
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
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.
1.Guarantee that interest will be transferred to
other units or individuals which are with
compensation or without fair conditions,
All directors Strict
neither other ways which are harmful to the July
of the Fill returns Long-term performin
Company’s interest will be 7,2016
company g
adopted;2.Guarantee restraint conduction for
the duty consuming behavior of directors and
senior managers;3.Guarantee that no capital
29
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
of the Company will be employed for
engaging in investment or consumption which
are not involved with duty
performance;4.Guarantee that the
compensation system formulated by the board
of director or Compensation and Assessment
Committee is linked with the exertion
situation of the Company’s return filling
solution;5. Shall stock incentive mechanism
subsequently be introduced by the Company,
the exertion condition of the Company’s stock
incentive mechanism which is intended to be
published is guaranteed to be linked with the
exertion situation of the Company’s return
filling solution;6.When stock incentive
mechanism is intended to be carried out
subsequently , I promise, within the legal
range, to prompt the exertion condition of the
Company’s stock incentive mechanism which
is intended to publish is guaranteed to be
linked with the exertion situation of the
Company’s return filling solution;7. I promise
the commitments above will be fulfilled
strictly, and guarantee actual fulfillment for
the Company’s return filling solution. Shall
any commitments be violated or be refused to
fulfill by me, I will fulfill corresponding
obligations of explanation and apology
according to relevant regulations of Guidance
on First Issue, Refinancing, Major Asset
Reorganization and Dilution for Return at
Sight by CSRC, and will approve the
supervision measures or self-discipline
supervision measures made by CSRC, SZSE
and China Association for Public Companies.
Any losses occurred upon he Company or the
shareholders, I am willing to undertake the
responsibility for corresponding
compensation in accordance with laws.
Guarantee that no operating management will Strict
Chen Lue, He July
Fill returns be intervened with exceeded authority, and no Long-term performin
Feiyan 7,2016
interest of the Company will be expropriated. g
Commitments make in
No No No No
initial public offering
30
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
or re-financing
Equity incentive
No No No No
commitment
Other commitments
for medium and small No No No No
shareholders
Completed on
Yes
time(Y/N)
If the commitments is
not fulfilled on time,
shall explain the Nil
specify reason and the
next work plan
IV. 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.
V.Explanations given by board of directors and supervisory board regarding “ Modified auditor’s” Issued
by CPAs firm for the reporting period
□ Applicable √ Not applicable
VI. Explanations given by Board of Directors regarding “ Modified auditor’s Report” Issuedfor last year
□ Applicable √ Not applicable
VII. Bankruptcy and restructuring
□ Applicable √ Not applicable
No such cases in the reporting period.
VIII. Legal lmatters
Signifieant lawsuits or arbitrations
□ Applicable √ Not applicable
No such cases in the reporing period.
Other legal matters
□ Applicable √ Not applicable
31
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
IX. Punishments and rectifications
□ Applicable √ Not applicable
No such cases in the reporing period.
X. Credit conditions of the Company as well as its Controlling shareholder and actual Controller
□ Applicable √ Not applicable
XI.Equity incentive plans, employee stock ownership plans or other incentive measures for employees
√ Applicable □Not applicable
The second meeting of the seventh board of directors, the second meeting of the seventh board of supervisors and
the 2015 third extraordinary general shareholder meeting were respectively convened by the company on Nov 5,
2015 and Nov 23, 2015, at which the Proposal on the First Phase of Employee Stock Ownership Plan (draft) of
Shenzhen Victor Onward Textile Industrial Co., Ltd was examined and approved.
Please refer to the published on November 7, 2015 and November 24, 2017, the securities times, the Hong Kong
Commercial Daily and cninfo (www.cninfo.com.cn) on the relevant announcement.
On December 24, 2015, the company as the asset trustor of the ESOP asset management plan, together with the
asset manager- Xingzheng Securities Asset Management Co.,Ltd and the asset trustee- China Everbright Bank
Co.,Ltd signed the contract of No.57 Xing Zheng Zi Guan Xin Zhong Assets Management Contract of the
Collection Assets Management Plan which concretely explained and stipulated the information included the basic
information of the collection plan, participating in and withdrawal of the collection plan, guarantee, classification
of the collection plan, the management methods and the management rights of the customer assets in the
collection plan, the establishment of the collection plan, the expenses of the collection plan, the proceeds and its
distribution of the collection plan, investment philosophy and investment strategy, investment decision-making
and risk control, restrictions and prohibited behaviors of investment, information disclosure of the collection plan,
transfer of the share of the collection plan, non-transaction transfer ownership and freezing and so on.
Please refer to the published on December 29, 2015, the securities times, the Hong Kong Commercial Daily
and cninfo (www.cninfo.com.cn) on the relevant announcement.
As of January 7, 2016, the company’s first phase of the employee stock ownership plan has completed the
share-purchasing by means of buying in the secondary security market, of which the average position price is
RMB44.7578 per share, the total purchase quantity is 0.833187 million shares which account for 0.1864% of the
company's total share capital, and the total turnover is RMB37.29163 million. The lock-up period of the shares
purchased under the plan is 12 months commenced from the date of this announcement.
Please refer to the published on January 8, 2016, the securities times, the Hong Kong Commercial Daily and
cninfo (www.cninfo.com.cn) on the relevant announcement.
XII.Material related transactions
1. Related transactions in connection with daily operation
□ Applicable √ Not applicable
32
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
No such cases in the reporing period.
2. Related-party transactions arising from asset acquisition or sold
□Applicable √ Not applicable
No such cases in the reporing period.
3. Related-party transitions with joint investments
□Applicable √ Not applicable
No such cases in the reporing period.
4. Credits and liabilities with related parties
□Applicable √ Not applicable
No such cases in the reporing period.
5. Other significant related-party transactions
□Applicable √ Not applicable
No such cases in the reporing period.
XIII.Particulars about the non-operating occupation of funds by the Controlling shareholderand 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.
XIV. Siginficant contracts and execution
1.Entrustments, contracting and leasing
（1）Entrustment
□Applicable √ Not applicable
No such cases in the reporing period.
（2）Contracting
□Applicable √ Not applicable
No such cases in the reporing period.
33
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
（3）Leasing
□Applicable √ Not applicable
No such cases in the reporing period.
2.Significant guarantees
√ Applicable □Not applicable
（1）Guarantees
In RMB’0000
Guarantee of the Company for the controlling subsidiaries (Exclude controlled subsidiaries)
Relevant
Date of Guarantee
disclosure Complete
Name of happening Actual for
date/No. of Amount of Guarantee implemen
the (Date of mount of Guarantee type associated
the Guarantee term tation
Company signing guarantee parties
guaranteed or not
agreement) (Yes or no)
amount
Total of external guarantee Total of external guarantee
approved in the report term 0 actually occurred in the report 0
(A1) term (A2)
Total of external guarantee Total of external guarantee
approved as of end of report 0 actually occurred as of end of 0
term (A3) report term (A4)
Guarantee of the company for its subsidiaries
Guarantee Amount of Amount of Actual date of
Actual amount Type of Complet Related
provided guarantee and date the occurring (signing Term
of guarantee guarantee ed or not guarantee
to of disclosure guarantee date of agreements
The joint
Sino Great
March 31,2016 14,000 July 12,2016 14,000 liability 1 year No No
Wall
guaranty
The joint
Sino Great
March 31,2016 13,000 October 28,2016 13,000 liability 1 year No No
Wall
guaranty
The joint
Sino Great
March 31,2016 7,000 February 28,2017 7,000 liability 1 year No No
Wall
guaranty
The joint
Sino Great
March 31,2016 20,000 April 11,2017 20,000 liability 1 year No No
Wall
guaranty
The joint
Sino Great
March 31,2016 15,000 July 19,2016 15,000 liability 1 year No No
Wall
guaranty
34
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
The joint
Sino Great
March 31,2016 5,000 August 8,2016 5,000 liability 1 year No No
Wall
guaranty
The joint
Sino Great
March 31,2016 20,000 October 31,2016 20,000 liability 1 year No No
Wall
guaranty
The joint
Sino Great
March 31,2016 25,000 December 20,2016 25,000 liability 1 year No No
Wall
guaranty
The joint
Sino Great
March 31,2016 18,000 January 3,2017 18,000 liability 1 year No No
Wall
guaranty
The joint
Sino Great
May 19,2017 12,000 June 7,2017 12,000 liability 1 year No No
Wall
guaranty
The joint
Sino Great
December 27,2016 8,400 March 31,2017 8,400 liability 2.5 year No No
Wall
guaranty
The joint
Sino Great
December 27,2016 10,000 January 10,2017 10,000 liability 3 year No No
Wall
guaranty
The joint
Sino Great
March 31,2016 9,700 February 21,2017 9,700 liability 0.5 year No No
Wall
guaranty
Sino The joint
Internation 30,000 December 21,2016 30,000 liability 1 year No No
al guaranty
Sino The joint
Internation 25,714 August 25,2016 25,714 liability 1 year No No
al guaranty
Sino The joint
Internation 25,000 January 13,2017 25,000 liability 1 year No No
al guaranty
Sino The joint
Internation 20,000 January 13,2017 20,000 liability 1 year No No
al guaranty
Sino The joint
Internation 20,000 June 21,2016 20,000 liability 1 year No No
al guaranty
Sino 10,000 August 22,2016 10,000 The joint 1 year No No
35
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
Internation liability
al guaranty
Sino The joint
Internation 50,000 November 22,2016 50,000 liability 1 year No No
al guaranty
Sino The joint
Internation 20,000 April 19,2016 20,000 liability 2 year No No
al guaranty
Sino The joint
Internation 30,000 May 10,2017 30,000 liability 3 year No No
al guaranty
Sino The joint
Internation 80,000 April 17,2017 80,000 liability 1 year No No
al guaranty
Sino The joint
Internation 5,000 May 27,2017 5,000 liability 1 year No No
al guaranty
Sino The joint
Internation 40,000 June 23,2017 40,000 liability 1 year No No
al guaranty
Sino The joint
Internation 10,000 June 28,2017 10,000 liability 1 year No No
al guaranty
Total of guarantee for Total of actual guarantee
subsidiaries 900,000 for subsidiaries in the 227,100
approved in the Period (B1) Period (B2)
Total of guarantee for Total of actual guarantee
subsidiaries 227,100 for subsidiaries at 227,100
approved at Period-end (B3) Period-end (B4)
Guarantee of the subsidiaries for the controlling subsidiaries
Guarante
Relevant Complet e
Date of
Name of disclosure e for
Amount happening Actual
the date/No. of Guarantee Guarant impleme associate
of (Date o mount of
Company the type ee term ntation d
guarantee signing guarantee
guaranteed guaranteed or parties
agreement)
amount not (Yes or
no)
Total guarantee quota to the Total amount of guarantee to the
0 0
subsidiaries approved in the subsidiaries actually incurred in
36
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
reporting period (C1) the reporting period (C2)
Total guarantee quota to the Total balance of actual guarantee
subsidiaries approved at the end 0 to the subsidiaries at the end of 0
of the reporting period (C3) the reporting 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
900,000 227,100
（A1+B1+C1） the Period（A2+B2+C2）
Total of actual guarantee at
Total of guarantee at Period-end
227,100 Period-end 227,100
（A3+B3+C3）
（A4+B4+C4）
The proportion of the total amount of actually guarantee in thenet
116.06%
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 0
70% directly or indirectly（E）
Explanations on possibly bearing joint and several
None
liquidatingresponsibilities for undue guarantees ( If any)
Explanations on external guarantee against regulated
None
procedures(If any)
Description of the guarantee with complex method
（2）Illegal providing of external guarantees
□ Applicable √Not applicable
No illegal providing of external guarantees in the report period.
3. Other significant contracts
□Applicable √ Not applicable
No such cases in the reporing period.
XV.Social responsibilities
1.Overview of the annual targeted poverty alleviation
37
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
（1）Half-year poverty relieving summary
（2）Information of the listed company’s annual work in targeted poverty alleviation
Measurement
Index Quantity / Status
unit
I. General situation —— ——
II.Itemized investment —— ——
1.Industrial development for getting rid of poverty —— ——
2.Transferred to employment to get rid of poverty —— ——
3.Relocation to get rid of poverty —— ——
4.Education to get rid of poverty —— ——
5.Improving Health to get rid of poverty —— ——
6.Ecological protection to poverty alleviation —— ——
7.Bottom-line Safeguard —— ——
8.Social poverty alleviation —— ——
9.Other items —— ——
III.Awards (content, level) —— ——
（3）Subsequent targeted poverty alleviation program
2. Information of performance of other social responsibilities
For details, please see the Social Responsibility Report disclosed by the company on the same day.
Listed company and its subsidiary belongs to the key pollution enterprise listed by Department of Environmental
Protection
No
XVI.Other material events
√ Applicable □Not applicable
On July 7, 2016, At the 10th board meeting of the 7th session board of directors held by the company, the
Proposal about Sino Great Wall Co.,Ltd's Non-public Issuance of A Share was examined and approved, planning
to issue shares to Sino Great Wall (Beijing) Investment Co., Ltd, Beijing An'ben Helath-care Investment Holdings
Co.,Ltd and Mr. Zheng Jihua with the raising money of RMB 2.5 billion. On October 14, 2016, CSRC accepted
the company's application of Non-public Issuance of Shares.
On February 16,2017, At the 16th board meeting of the 7th session board of directors held by the company,
the Proposal about Adjusting the Non-public Share Issuance Plan of the Company was examined and approved,
with the total amount of raising money adjusted to be RMB 900 million.
On March 22,2017, The company's application of non-public A-share issuance had been examined and
38
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
approved by the Issuance Examination Commission of CSRC. On July 21, 2017, the company received the
Approval for Sino Great Wall Co.,Ltd's Non-public Share Issuance by CSRC (No. 1145-2017 CSRC Permission).
The company's board of directors will, in accordance with the relevant laws and regulations, the requirement of
the above-said approval document and the authorization of the company's shareholders' general meeting, handle
the relevant matters of this non-public share issuance within the stipulated term and fulfill the obligation of
information disclosure in a timely manner.
XVII. Material events of subsidiaries
□ Applicable √ Not applicable
39
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
VI. Change of share capital and shareholding of Principal Shareholders
I.Changes in share capital
1. Changes in share capital
In shares
Before the change Increase/decrease（+，-） After the Change
Amount Proportion Capitalization
Share Bonus Proportio
of common Other Subtotal Quantity
allotment shares n
reserve fund
I. Share with
conditional 681,035,811 40.10% -360,375 -360,375 680,675,436 40.08%
subscription
3.Other
681,035,811 40.10% -360,375 -360,375 680,675,436 40.08%
domestic shares
Of which：
Domestic legal 42,479,672 2.50% 0 0 42,479,672 2.50%
person shares
Domestic
natural person 638,556,139 37.60% -360,375 -360,375 638,195,764 37.58%
shares
II. Shares with
unconditional 1,017,209,200 59.90% 360,375 360,375 1,017,569,575 59.92%
subscription
1.Common
753,405,969 44.36% 360,375 360,375 753,766,344 44.39%
shares in RMB
.Foreign shares
in domestic 263,803,231 15.53% 0 0 263,803,231 15.53%
market
III. Total of
1,698,245,011 100.00% 0 0 1,698,245,011 100.00%
capital shares
Reasons for share changed:
□ Applicable √ Not applicable
Approval of Change of Shares
□ Applicable √ Not applicable
Ownership transfer of share changes
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to
40
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
common shareholders of Company in latest year and period
□ Applicable √ Not applicable
Other information necessary to disclose for the company or need to disclosed under requirement from security
regulators
□ Applicable √ Not applicable
2. Change of shares with limited sales condition
□ Applicable √ Not applicable
II.Issuing and listing
□ Applicable √ Not applicable
III. Shareholders and shareholding
In Shares
Total number of preferred
Total number of common
shareholders that had restored the
shareholders at the end of the 60,193 0
voting right at the end of the
reporting period
reporting period (if any) (note 8)
Shareholding of shareholders holding more than 5% shares
Number of Number os share
Proportion Changes in Amount of Amount of
Nuture of shares held pledged/frozen
Shareholders of shares reporting restricted un-restricted
shareholder at period State of
held（%） period shares held shares held Amount
-end share
Domestic Natural
Chen Lue 34.36% 583,454,556 +510,000 581,722,696 1,731,860 Mortgage 455,260,594
person
STYLE-SUCC Foreign legal
5.47% 92,970,910 0 0 92,970,910
ESS LIMITED person
Domestic Non-
Union Holdings
State-owned legal 5.18% 87,935,921 0 0 87,935,921
Co., Ltd.
person
Domestic Natural
He Feiyan 3.23% 54,800,458 0 54,800,458
person
Jiutai Fund －
Bank of
Communication Other 2.50% 42,479,672 0 42,479,672
s － Jiutai
Huitong No.2
41
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
specific
customer asset
management
plan
Rich Crown
Foreign legal
Investment Co., 1.37% 23,235,313 0 0 23,235,313
person
Ltd.
Bank of China
－Fortis Income
Growth
Other 1.12% 18,961,320 +761,000 0 18,961,320
Securities
Investment
Fund
Jiangxi Taihao Domestic Non-
Venture legal person
1.11% 18,791,879 0 0 18,791,879
Investment State-owned legal
Centre(LP） person
Qianhai life
insuranceCo.,
Other 1.04% 17,725,200 +17,725,200 0 17,725,200
ltd－Haley
year
Qinghai Heyi Domestic Non-
Industry legal person
0.79% 13,356,984 0 0 13,356,984
Development State-owned legal
Co., Ltd. person
Strategy investors or general legal
person becomes top 10 shareholders
None
due to rights issued (if
applicable)See Notes 3）
Chen Lue and He Feiyan are consortium officers; Union Development Group Ltd. is the
Explanation on associated
controlling shareholder of the above-mentioned shareholder Shenzhen Union Holdings Ltd.
relationship or concerted action of
and third shareholder Rich Crown Investment Co., Ltd. The other tradable shareholders
the above shareholders
neither knew whether there exists associated relationship between them.
Shareholding of top 10 shareholders of unrestricted shares
Quantity of unrestricted shares held at the end of the Share type
Name of the shareholder
reporting period Share type Quantity
Foreign shares placed
STYLE-SUCCESS LIMITED 92,970,910 92,970,910
in domestic exchange
Union Holdings Co., Ltd. 87,935,921 RMB Common shares 87,935,921
Rich Crown Investment Co., Ltd. 23,235,313 Foreign shares placed 23,235,313
42
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
in domestic exchange
Bank of China－Fortis Income
18,961,320 RMB Common shares 18,961,320
Growth Securities Investment Fund
Jiangxi Taihao Venture Investment
18,791,879 RMB Common shares 18,791,879
Centre(LP）
Qianhai life insuranceCo., ltd－
17,725,200 RMB Common shares 17,725,200
Haley year
Qinghai Heyi Industry Development
13,356,984 RMB Common shares 13,356,984
Co., Ltd.
China International finance Co.,
12,109,500 RMB Common shares 12,109,500
Ltd.
Huatai Securities Co., Ltd. 11,127,400 RMB Common shares 11,127,400
Huang Huaian 10,115,000 RMB Common shares 10,115,000
Explanation on associated
relationship or consistent action
The controlling shareholder of the above-mentioned largest shareholder Shenzhen Union
among the top 10 shareholders of
Holdings Ltd. and third shareholder Rich Crown Investment Co., Ltd.. Is Union Development
non-restricted negotiable shares and
Group Ltd.
that between the top 10 shareholders
of non-restricted negotiable shares
and top 10 shareholders
Notes to the shareholders involved
in financing securities (if any)(See None
Notes 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.
IV. 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.
43
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
VII. Situation of the Preferred Shares
□Applicable √Not applicable
The Company had no preferred shares in the reporting period
44
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
VIII. Information about Directors, Supervisors and Senior Executives
I. Change in shares held by directors, supervisors and senior executives
√ Applicable □Not applicable
Amount
Amount of of Number of
Number of
shares shares restricted Number of
Shares held at Shares held restricted
increased decrease stock restricted stock
Office the at the stock granted
Name Position at the d at the granted at granted at the
status year-begin(sh year-ending at the
reporting reportin the year-ending(shar
are) （share） reporting
period(sha g year-begin e)
period(share)
re) period(s . share)
hare)
Chairman,
Chen
General In office 582,944,556 510,000 0 583,454,556
Lue
Manager
Vice
chairman,
Li
Duputy In office 11,400 0 0 11,400 0 0 0
Erlong
General
Manager
Yang Secretary to
Chunlin the board of In office 0 35,500 0 35,500 0 0 0
g directors
Total -- -- 582,955,956 545,500 0 583,501,456 0 0 0
II. Change in shares held by directors, supervisors and senior executives
□ Applicable √ Not applicable
45
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
IX. Corporate Bond
Whether the company has corporate bonds that have been publicly issued and listed on the stock exchange, and
not yet due or due butnot folly cashed on the approval date of annual report
No
46
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
X. Financial Report
I. 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.
August 10,2017
In RMB
Items Year-end balance Year-beginning balance
Current asset：
Monetary fund 1,720,256,083.77 1,340,815,821.83
Settlement provision
Outgoing call loan
Financial assets measured at fair
value with variations accounted into
current income account
Derivative financial assets
Bill receivable 781,067,587.68 1,074,390,642.58
Account receivable 4,828,966,377.80 3,725,170,208.31
Prepayments 187,002,578.78 319,206,798.63
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts
receivable
Interest receivable
Dividend receivable
Other account receivable 923,145,857.89 651,012,132.91
47
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
Repurchasing of financial assets
Inventories 301,728,576.28 332,904,930.36
Assets held for sales
Non-current asset due in 1 year 7,961,594.15 13,462,942.89
Other current asset 11,484,244.83 35,450,194.47
Total of current assets 8,761,612,901.18 7,492,413,671.98
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 127,345,176.80 128,483,747.74
Construction in progress 3,788,297.42
Engineering material
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 104,308,769.67 106,203,443.55
R & D petrol
Goodwill 58,874,144.79 58,874,144.79
Long-germ expenses to be amortized 5,117,815.00 7,003,035.93
Differed income tax asset 90,480,456.69 76,298,659.34
Other non-current asset 365,192,873.00 116,902,258.30
Total of non-current assets 755,107,533.37 493,765,289.65
Total of assets 9,516,720,434.55 7,986,178,961.63
Current liabilities
Short-term loans 2,750,186,595.11 1,966,058,357.59
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 2017
current income account
Derivative financial liabilities
Bill payable 606,158,083.17 706,883,375.54
Account payable 1,505,466,836.91 1,313,948,990.25
Advance payment 533,399,418.80 573,784,072.58
Selling of repurchased financial assets
Fees and commissions receivable
Employees’ wage payable 18,517,014.15 18,797,546.69
Tax payable 316,908,006.38 313,483,669.78
Interest payable 5,544,518.54 6,428,493.55
Dividend payable 101,894,700.66
Other account payable 265,482,611.11 222,414,975.01
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 814,408,879.06 175,958,998.04
Other current liability 30,382,980.72
Total of current liability 6,917,966,663.89 5,328,141,459.75
Non-current liabilities：
Long-term loan 444,341,594.32 786,858,878.82
Bond payable 100,000,000.00
Including：preferred stock
Sustainable debt
Long-term payable
Long=term payable employees’s
remuneration
Special payable
Expected liabilities 4,878,343.68 13,225,861.70
Differed income
Differed income tax liability 26,513,069.28 27,469,888.77
Other non-current liabilities
Total non-current liabilities 575,733,007.28 827,554,629.29
Total of liability 7,493,699,671.17 6,155,696,089.04
49
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
Owners’ equity
Share capital 1,698,245,011.00 1,698,245,011.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves -1,303,571,952.69 -1,299,349,701.74
Less：Shares in stock
Other comprehensive income
Special reserves 81,827,887.68 65,687,868.14
Surplus reserves 84,394,441.23 84,394,441.23
Common risk provision
Undistributed profit 1,395,682,248.23 1,228,970,498.86
Total of owner’s equity belong to the
1,956,577,635.45 1,777,948,117.49
parent company
Minority shareholders’ equity 66,443,127.93 52,534,755.10
Total of owners’ equity 2,023,020,763.38 1,830,482,872.59
Total of liabilities and owners’ equity 9,516,720,434.55 7,986,178,961.63
Legal Representative: Chen Lue
Person in charge of accounting：Tang Xianyong
Accounting Dept Leader:Tang Xianyong
2. Balance sheet of Parent Company
In RMB
Items Year-end balance Year-beginning balance
Current asset：
Monetary fund 421,061,159.27 168,691,344.34
Financial assets measured at fair value
with variations accounted into current
income account
Derivative financial assets
Bill receivable
Account receivable 6,346.00
Prepayments 2,264,166.67 1,000,000.00
50
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
Interest receivable
Dividend receivable
Other account receivable 2,418,962,011.73 1,672,200,041.98
Inventories
Assets held for sales
Non-current asset due in 1 year
Other current asset 1,576,001.07 1,404,744.25
Total of current assets 2,843,863,338.74 1,843,302,476.57
Non-current assets：
Disposable financial asset
Expired investment in possess
Long-term receivable
Long term share equity investment 3,181,451,536.66 3,176,451,536.66
Property investment
Fixed assets 65,573.03 4,121.50
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
Deferred income tax asset 252,427.22 336,569.60
Other non-current asset 184,035,100.00 48,960,000.00
Total of non-current assets 3,365,804,636.91 3,225,752,227.76
Total of assets 6,209,667,975.65 5,069,054,704.33
Current liabilities
Short-term loans 1,671,230,000.00 980,000,000.00
Financial liabilities measured at fair
value with variations accounted into
current income account
Derivative financial liabilities
Bill payable 111,236,631.80 68,000,000.00
51
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
Account payable
Advance payment
Employees’ wage payable 571,016.83 701,792.11
Tax payable 97,131,554.92 97,085,106.00
Interest payable 4,146,356.25 5,150,639.24
Dividend payable 101,894,700.66
Other account payable 68,510,268.86 13,252,762.06
Liabilities held for sales
Non-current liability due in 1 year 600,000,000.00
Other current liability
Total of current liability 2,654,720,529.32 1,164,190,299.41
Non-current liabilities：
Long-term loan 400,000,000.00 700,000,000.00
Bond payable 100,000,000.00
Including：preferred stock
Sustainable debt
Long-term payable
Employees’ wage payable
Special payable
Expected liabilities
Deferred income
Deferred income tax liability
Other non-current liabilities
Total of Non-current liabilities 500,000,000.00 700,000,000.00
Total of liability 3,154,720,529.32 1,864,190,299.41
Owners’ equity
Share capital 1,698,245,011.00 1,698,245,011.00
Other equity instrument
Including：preferred stock
Sustainable debt
Capital reserves 1,237,956,472.37 1,237,956,472.37
Less：Shares in stock
Other comprehensive income
Special reserves
52
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
Surplus reserves 26,309,287.00 26,309,287.00
Undistributed profit 92,436,675.96 242,353,634.55
Total of owners’ equity 3,054,947,446.33 3,204,864,404.92
Total of liabilities and owners’ equity 6,209,667,975.65 5,069,054,704.33
3.Consolidated Income Statement
In RMB
Items Report period Same period of the previous year
I. Income from the key business 3,025,082,356.80 1,953,574,755.51
Incl：Business income 3,025,082,356.80 1,953,574,755.51
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 2,693,735,290.45 1,740,558,572.84
Incl：Business cost 2,319,598,615.76 1,460,727,131.33
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 1,942,587.29 9,026,652.11
Sales expense 18,094,586.39 9,259,264.24
Administrative expense 125,176,758.15 112,993,754.29
Financial expenses 139,811,809.59 70,024,674.60
Asset impairment loss 89,110,933.27 78,527,096.27
Add：Gains from change of fir value
（“-”for loss）
Investment gain（“-”for loss） 46,868.49
Incl: investment gains from affiliates
Gains from currency exchange（“-”for
loss）
Other income
53
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
III. Operational profit（“-”for loss） 331,347,066.35 213,063,051.16
Add ：Non-operational income 4,444,624.78 29,133,269.00
Including：Income from disposal of
non-current assets
Less：Non business expenses 93,122.33 2,755,912.00
Incl：Loss from disposal of non-current
assets
IV.Total profit(“-”for loss) 335,698,568.80 239,440,408.16
Less：Income tax expenses 56,227,138.25 37,862,759.83
V. Net profit 279,471,430.55 201,577,648.33
Net profit attributable to the owners of
268,606,450.03 202,299,416.64
parent company
Minority shareholders’ equity 10,864,980.52 -721,768.31
VI. Other comprehensive income -132.50
Net of profit of other comprehensive inco
me attributable to owners of the parent co -132.50
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
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
54
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
ncial statements
6.Other
7.Net of profit of other comprehensive i
ncome attributable to Minority
shareholders’ equity
VII. Total comprehensive income 279,471,430.55 201,577,515.83
Total comprehensive income attributable
268,606,450.03 202,299,284.14
to the owner of the parent company
Total comprehensive income attributable
10,864,980.52 -721,768.31
minority shareholders
VIII. Earnings per share
（I）Basic earnings per share 0.16 0.12
(II)Diluted earnings per share 0.16 0.12
The current business combination under common control, the net profits of the combined party before achieved ne
t profit of RMB 0 last period the combined party realized RMB 0
Legal Representative: Chen Lue
Person in charge of accounting：Tang Xianyong
Accounting Dept Leader:Tang Xianyong
4. Income statement of the Parent Company
In RMB
Items Amount in this period Amount in last period
I. Income from the key business 111,018.01 115,940.34
Incl：Business cost 1,482.50 0.00
Business tax and surcharge 244,690.66
Sales expense
Administrative expense 10,577,092.07 13,785,695.93
Financial expenses 37,367,434.56 19,950,608.66
Asset impairment loss -57,423.85 -1,530.70
Add：Gains from change of fir value
（“-”for loss）
Investment gain（“-”for loss）
Incl: investment gains from affiliates
Other income
II. Operational profit（“-”for loss） -48,022,257.93 -33,618,833.55
55
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
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) -48,022,257.93 -7,303,450.55
Less：Income tax expenses
IV. Net profit（“-”for net loss） -48,022,257.93 -7,303,450.55
V.Net of profit of other comprehensive i
ncome
（I）Other comprehensive income items
that will not be reclassified into
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 -48,022,257.93 -7,303,450.55
VII. Earnings per share：
56
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
（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
1,722,890,541.67 805,577,789.73
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
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 10,169,861.98 3,004.17
Other cash received from business
2,967,473,297.47 339,397,760.63
operation
Sub-total of cash inflow 4,700,533,701.12 1,144,978,554.53
Cash paid for purchasing of
1,452,656,023.95 1,158,556,976.75
merchandise and services
Net increase of client trade and advance
Net increase of savings n central bank
57
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
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 181,877,746.19 101,231,096.05
Taxes paid 157,274,185.63 86,805,215.28
Other cash paid for business activities 3,444,723,325.54 1,055,001,225.65
Sub-total of cash outflow from business
5,236,531,281.31 2,401,594,513.73
activities
Cash flow generated by business
-535,997,580.19 -1,256,615,959.20
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
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
12,946,912.79
investment activities
Cash paid for construction of
fixed assets, intangible assets 18,675,205.60 16,234,590.65
and other long-term assets
Cash paid as investment 246,074,074.84
Net increase of loan against pledge
Net cash received from subsidiaries and
470,000.00 97,000,000.00
other operational units
Other cash paid for investment
activities
Sub-total of cash outflow due to
265,219,280.44 113,234,590.65
investment activities
Net cash flow generated by investment -265,219,280.44 -100,287,677.86
III.Cash flow generated by financing
58
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
Cash received as investment 0.00
Incl: Cash received as investment from
minor shareholders
Cash received as loans 2,753,197,500.00 2,195,182,638.00
Cash received from bond placing
Other financing –related ash received 103,516,162.13
Sub-total of cash inflow from financing
2,753,197,500.00 2,298,698,800.13
activities
Cash to repay debts 1,349,438,184.19 317,642,499.29
Cash paid as dividend, profit, or
95,084,766.20 36,392,124.49
interests
Incl: Dividend and profit paid by
subsidiaries to minor shareholders
Other cash paid for financing activities 60,833.33 561,003,771.39
Sub-total of cash outflow due to
1,444,583,783.72 915,038,395.17
financing activities
Net cash flow generated by financing 1,308,613,716.28 1,383,660,404.96
IV. Influence of exchange rate
-4,628,437.71 1,620,952.17
alternation on cash and cash equivalents
V.Net increase of cash and cash
502,768,417.94 28,377,720.07
equivalents
Add: balance of cash and cash
943,705,322.41 582,743,756.81
equivalents at the beginning of term
VI ..Balance of cash and cash
1,446,473,740.35 611,121,476.88
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
128,210.00 139,273.00
rending of services
Tax returned
Other cash received from business
2,072,983,202.47 578,645,723.03
operation
Sub-total of cash inflow 2,073,111,412.47 578,784,996.03
Cash paid for purchasing of
59
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
merchandise and services
Cash paid to staffs or paid for staffs 219,753.50 132,268.03
Taxes paid 147,356.70 1,313,588.98
Other cash paid for business activities 2,697,856,678.81 1,893,003,110.13
Sub-total of cash outflow from business
2,698,223,789.01 1,894,448,967.14
activities
Cash flow generated by business
-625,112,376.54 -1,315,663,971.11
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 65,440.00
and other long-term assets
Cash paid as investment 135,075,100.00
Net cash received from subsidiaries and
5,000,000.00 97,000,000.00
other operational units
Other cash paid for investment
activities
Sub-total of cash outflow due to
140,140,540.00 97,000,000.00
investment activities
Net cash flow generated by investment -140,140,540.00 -97,000,000.00
III.Cash flow generated by financing
Cash received as investment
Cash received as loans 1,908,030,000.00 1,455,000,000.00
Cash received from bond placing
Other financing –related ash received
Sub-total of cash inflow from financing 1,908,030,000.00 1,455,000,000.00
60
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
activities
Cash to repay debts 820,000,000.00
Cash paid as dividend, profit, or
70,346,435.20 17,063,887.14
interests
Other cash paid for financing activities 60,833.33
Sub-total of cash outflow due to
890,407,268.53 17,063,887.14
financing activities
Net cash flow generated by financing 1,017,622,731.47 1,437,936,112.86
IV. Influence of exchange rate
0.00
alternation on cash and cash equivalents
V.Net increase of cash and cash
252,369,814.93 25,272,141.75
equivalents
Add: balance of cash and cash
168,691,344.34 239,145,251.31
equivalents at the beginning of term
VI ..Balance of cash and cash
421,061,159.27 264,417,393.06
equivalents at the end of term
61
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
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
Less Other
instrusment
: Compr Comm Minor
Items Total of owners’
Shar ehensi Specialized on risk shareholders’
prefe equity
Share Capital Sust Capital reserves Surplus reserves Attributable profit
rred es in ve reserve provisi equity
Othe
aina
stoc r stoc Incom on
ble
k k e
debt
I.Balance at the end of
1,698,245,011.00 -1,299,349,701.74 65,687,868.14 84,394,441.23 1,228,970,498.86 52,534,755.10 1,830,482,872.59
last year
Add: Change of
accounting policy
Correcting of previous
errors
Merger of entities
under common control
Other
II.Balance at the
beginning of current 1,698,245,011.00 -1,299,349,701.74 65,687,868.14 84,394,441.23 1,228,970,498.86 52,534,755.10 1,830,482,872.59
year
III.Changed in the
-4,222,250.95 16,140,019.54 166,711,749.37 13,908,372.83 192,537,890.79
current year
62
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
（1）Total
comprehensive 268,606,450.03 10,864,980.52 279,471,430.55
income
（II）Investment or
decreasing of capital -4,222,250.95 3,043,392.31 -1,178,858.64
by owners
1．Ordinary Shares in
vested by hareholders
2 ． Holders of other e
quity instruments inve
sted capital
3．Amount of shares
paid and accounted as
owners’ equity
4．Other -4,222,250.95 3,043,392.31 -1,178,858.64
（III）Profit allotment -101,894,700.66 -101,894,700.66
1.Providing of surplus
reserves
2.Providing of
common risk
provisions
3．Allotment to the
owners (or -101,894,700.66 -101,894,700.66
shareholders)
4．Other
(IV) Internal
transferring of
63
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
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 16,140,019.54 16,140,019.54
1. Provided this year 35,597,306.04 35,597,306.04
2．Used this term 19,457,286.50 19,457,286.50
（VI）Other
IV. Balance at the end
1,698,245,011.00 -1,303,571,952.69 81,827,887.68 84,394,441.23 1,395,682,248.23 66,443,127.93 2,023,020,763.38
of this term
Amount in last year
In RMB
Amount in last year
Owner’s equity Attributable to the Parent Company
Other Equity Other
instrusment Less: Commo Minor
Items Total of owners’
Compr
Shares Specialized Surplus n risk shareholders’
Share Capital preferr Capital reserves ehensi Attributable profit equity
in reserve reserves provisio equity
ed Sust Other ve
stock n
stock aina Incom
64
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
ble e
debt
I.Balance at the end of
446,906,582.00 -50,367,862.22 46,014,941.54 84,394,441.23 755,308,636.19 -1,713,075.19 1,280,543,663.55
last year
Add: Change of
accounting policy
Correcting of previous
errors
Merger of entities
under common control
Other
II.Balance at the
beginning of current 446,906,582.00 -50,367,862.22 46,014,941.54 84,394,441.23 755,308,636.19 -1,713,075.19 1,280,543,663.55
year
III.Changed in the
1,251,338,429.00 -1,248,981,839.52 19,672,926.60 473,661,862.67 54,247,830.29 549,939,209.04
current year
（1）Total
473,661,862.67 -1,327,357.60 472,334,505.07
comprehensive income
（II）Investment or
decreasing of capital 1,251,338,429.00 2,356,589.48 55,575,187.89 1,309,270,206.37
by owners
1． Ordinary Shares in
1,251,338,429.00 1,251,338,429.00
vested by hareholders
2．Holders of other eq
uity instruments invest
ed capital
3．Amount of shares
65
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
paid and accounted as
owners’ equity
4．Other 2,356,589.48 55,575,187.89 57,931,777.37
（III）Profit allotment
1.Providing of surplus
reserves
2.Providing of
common risk
provisions
3．Allotment to the
owners (or
shareholders)
4．Other
(IV) Internal
transferring of owners’ -1,251,338,429.00 -1,251,338,429.00
equity
1. Capitalizing of
capital reserves (or to -1,251,338,429.00 -1,251,338,429.00
capital shares)
2. Capitalizing of
surplus reserves (or to
capital shares)
3．Making up losses by
surplus reserves.
4. Other
(V). Special reserves 19,672,926.60 19,672,926.60
66
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
1. Provided this year 56,095,547.05 56,095,547.05
2．Used this term 36,422,620.45 36,422,620.45
（VI）Other
IV. Balance at the end
1,698,245,011.00 -1,299,349,701.74 65,687,868.14 84,394,441.23 1,228,970,498.86 52,534,755.10 1,830,482,872.59
of this term
67
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
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 Speciali
Items Less: Shares Surplus Total of owners’
Attributable
Share Capital preferred Capital reserves Comprehensive zed
Sustainabl Other in stock reserves profit equity
stock Income reserve
e debt
I.Balance at the
1,698,245,011.00 1,237,956,472.37 26,309,287.00 242,353,634.55 3,204,864,404.92
end of last year
Add: Change of
accounting
policy
Correcting of
previous errors
Other
II.Balance at the
beginning of 1,698,245,011.00 1,237,956,472.37 26,309,287.00 242,353,634.55 3,204,864,404.92
current year
III.Changed in the
-149,916,958.59 -149,916,958.59
current year
（1）Total
comprehensive -48,022,257.93 -48,022,257.93
income
68
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
（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
-101,894,700.66 -101,894,700.66
allotment
1.Providing of
surplus reserves
2．Allotment to the
owners (or -101,894,700.66 -101,894,700.66
shareholders)
3．Other
(IV)Internal
transferring of
owners’ equity
1. Capitalizing of
capital reserves (or
to capital shares)
69
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
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
1,698,245,011.00 1,237,956,472.37 26,309,287.00 92,436,675.96 3,054,947,446.33
end of this term
Amount in last year
In RMB
Amount in last year
Other Equity instrusment Other
Items Less: Shares Comprehe Specialized Surplus Total of owners’
Attributable
Share Capital preferred Capital reserves
Sustainabl Other in stock nsive reserve reserves profit equity
stock
e debt Income
I.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
end of last year
Add: Change of
70
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
accounting
policy
Correcting of
previous errors
Other
II.Balance at the
beginning of 446,906,582.00 2,489,294,901.37 26,309,287.00 257,161,771.72 3,219,672,542.09
current year
III.Changed in the
1,251,338,429.00 -1,251,338,429.00 -7,303,450.55 -7,303,450.55
current year
（1）Total
comprehensive -7,303,450.55 -7,303,450.55
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
71
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
allotment
1.Providing of
surplus reserves
2．Allotment to the
owners (or
shareholders)
3．Other
(IV)Internal
transferring of 1,251,338,429.00 -1,251,338,429.00
owners’ equity
1. Capitalizing of
capital reserves (or 1,251,338,429.00 -1,251,338,429.00
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
72
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
IV. Balance at the
1,698,245,011.00 1,237,956,472.37 26,309,287.00 249,858,321.17 3,212,369,091.54
end of this term
73
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
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 Lue 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 Lue 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..
At the Company's general meeting of shareholders held on May 6, 2016, the 2015 Plan of Conversion of Capital
Reserves into Share Capital was adopted. The detailed plan was: to increase capital reserves to all the shareholders
with 28 shares for 10 shares based on 446,906,582 shares in total as at December 31, 2015 and to increase
1,251,338,429 shares in total. After the increase, total share capital of the Company was increased to
1,698,245,011 shares.
As at December 31, 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 Lue 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 Street, Dapeng New District,
Shenzhen. Legal representative: Chen Lue. 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.
The financial statements have been approved by the Board of Directors on August 10,2017.
As at June 30, 2017, subsidiaries within the scope of the consolidated financial statements of the Company
are as follows:
Name of subsidiaries
Sino Great Wall International Engineering Co., Ltd.
74
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
Beijing Sino Great Wall Decoration Design Co., Ltd.
Suzhou Lvbang Wood Technology Co., Ltd.
Herabenna Interior Design Guangzhou Co., Ltd.
Sino Great Wall Group Co., Limited
Shanghai Ling Rui International Trade Company Limited
Shenzhen Hongtulve Industrial Co., Ltd.
Inrich Me Engineering Co., Limited
Sino Great Wall New Energy (Beijing) Co., Ltd.
SINOGREATWALL(PHILIPPINES)INTERNATIONALCORPORITION
SGWHPEngineeringConstructionSDN.BHD
SINOGREATWALL（USA）INC
Shenzhen Yatian Decoration Design Engineering Co., Ltd.
Sino Great Wall International Engineering (MACAU) Co., Limited
SINO GREAT WALL INTERNETIONAL ENGINEERING(CNMI)CO.,LLC
Sino Great Wall (Beijing) Investment Fund Management Co., Ltd.
Sino Great Wall Real estate (Hubei) Co., Ltd.
Sino Great Wall Development (Hengqin) Co., Ltd.
PT.SINO GREAT WALL INVESTMENT INDONESIA
PT.SINO GREAT WALL CONSTRUCTION INDONESIA
SINO GREAT WALL INTERNETIONAL ENGINEERING(MM)CO.,LTD
Sino Great Wall Southwest Construction Engineering Co., Ltd.
Sino Great Wall Jianyee Engineering Co., Ltd.
Wuhan Commercial Workers Hospital Co., Ltd.
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
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
75
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
Specific accounting policies and accounting estimates tips:
Nil
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.
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
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
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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
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
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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
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.
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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.
(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
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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
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
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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）Receivables that are individually significant but with provision for bad debts made on an
individual basis:
（2）Provision for bad debts of accounts receivable made on credit risk characteristics portfolio
basis:
Group Name Method
For those subject to provision for bad debts under aging analysis method:
√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%
Accounts on percentage basis in group：
□ Applicable √Not applicable
Accounts on other basis in group：
□ Applicable √Not applicable
（3）Receivables that are individually insignificant but with provision for bad debts made on an individual
basis:
The Company complies with the disclosure requirements of the No.7 Industry Information Disclosure Guideline
of Shenzhen Stock Exchange-the Listed Company that Engaged in Civil Engineering and Construction Business.
12.Inventories
Is the company subject to any disclosure requirements for special industries?
Yes
Civil Engineering Construction
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
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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.
(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
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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
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
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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
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
Cost measurement
Depreciation or amortization method
The investment property refers to the real estate held for earning rentals or/and capital appreciation or both,
including leased land use right, land use right held for transfer upon appreciation, and leased building
(including self-built buildings or buildings developed for renting or buildings under construction or
development for future renting).
The Company measures its existing investment property at cost. For investment properties measured with the
cost model - in terms of buildings for renting, the same depreciation policy as that for fixed assets of the
Company is adopted and land use rights for renting are implemented with the same amortization policy as
that for intangible assets.
16.Fixed assets
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（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
3-5 5 19-31.67
other 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
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
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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.
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
20.Oil & gas assets
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
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Sino Great Wall Co., Ltd. The Semi-annual Report 2017
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:
Item Estimated useful lives Basis
Land use right 50 years Land use certificate
software 5 years By reference to the same 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.
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.
（2）Internal research and development expenditure accounting policy
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
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Sino Great Wall Co., Ltd. The Semi-annual Report 2017
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
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
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Sino Great Wall Co., Ltd. The Semi-annual Report 2017
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
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
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Sino Great Wall Co., Ltd. The Semi-annual Report 2017
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
Is the company subject to any disclosure requirements for special industries?
Yes
Civil Engineering Construction
The Company complies with the disclosure requirements of the No.7 Industry Information
Disclosure Guideline of Shenzhen Stock Exchange-the Listed Company that Engaged in Civil
Engineering and Construction Business.
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.
(1)Basis and accounting methods for income related government subsidies
Government subsidies related to assets are recognized as deferred income, and included in non-operating
income by stages based on the useful life of the assets acquired and constructed;
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 current non-operating income 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 current non-operating income 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 2017
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 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.
32. Other significant accounting policies and estimates
(1)Change of main accounting policies
(1) Implementation of the Provisions on the Accounting Treatment for Value-added Tax
On December 3, 2016, the Ministry of Finance promulgated the Provisions on the Accounting Treatment for
Value-added Tax (Cai Kuai [2016] No.22), which apply to relevant transactions of the Company occurred
since May 1, 2016. Main impacts of the provisions implementation of the Company are as follows:
Name and amount of the affected items in the
Contents of and reasons for changes in accounting policies
financial statements
(1) Adjust the item "business taxes and surcharges" in the income statement to
the item "taxes and surcharges" therein. Taxes and surcharges
(2) Reclassify the real estate tax, land-use tax- vehicle and vessel use tax and Increased taxes and surcharges in this year
stamp duty incurred by business operation activities of the enterprise since May amount to RMB 433,364.39, and decreased
1, 2016 from "General and administrative expenses" to "Taxes and surcharges" general and administrative expenses in 2016
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Sino Great Wall Co., Ltd. The Semi-annual Report 2017
and the taxes incurred before May 1, 2016 will not be adjusted. The amount to RMB 433,364.39.
comparative data shall not be adjusted.
(3) Reclassify the item "taxes and surcharges payable" to transfer the VAT Increased ending balance of other current
amount where income (or profit) has been recognized but the VAT has not been liabilities amounted to RMB 30,382,980.72,
paid and which shall be recognized as the output tax amount into the item and decreased ending balance of taxes and
"other current liabilities" (or "other non-current liabilities"). Compared data surcharges payable amounted to RMB
shall not be adjusted. The comparative data shall not be adjusted. 30,382,980.72.
（2）Changes in significant accounting estimates
The Company had no changes in principal accounting estimates during the reporting period.
33.Change of main accounting policies and estimations
(1)Change of main accounting policies
□Applicable √Not applicable
（2）Change of main accounting estimations
□Applicable √Not applicable
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 0、3、6、11、17
be the balance of the output tax after
deducting the deductible input tax for the
current year
Paid based on the actual business tax, VAT
Urban maintenance and construction tax 1、5、7
and consumption tax paid
Calculated and paid at turnover tax
Enterprise income tax 15、25
actually paid.
Calculated and paid at turnover tax
Business tax 3、5
actually paid.
Calculated and paid at turnover tax
Education surtax 3
actually paid.
Calculated and paid at turnover tax
Local education surtax 2
actually paid.
In case there exist any taxpayer paying corporate income tax at different tax rates, disclose the information
Name of taxpayer Income tax rates
Sino Great Wall Co., Ltd. 25
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Sino Great Wall Co., Ltd. The Semi-annual Report 2017
Sino Great Wall Medical Investment Management Co., Ltd. 25
Sino Great Wall Infrastructure Investment Co., Ltd. 25
Wuhan Commercial Workers Hospital Co., Ltd. 25
Sino Great Wall International Engineering Co., Ltd. 15
Sino Great Wall Jianyee Engineering Co., Ltd. 25
Sino Great Wall (Beijing) Investment Fund Management Co.,
25
Ltd.
Sino Great Wall Real estate (Hubei) Co., Ltd. 25
Sino Great Wall New Energy (Beijing) Co., Ltd. 25
Qian'an Sino Solar Power Generation Co., Ltd. 25
Wu'an Juhe Photovoltaic Power Generation Co., Ltd. 25
Bozhou Guangcheng New Energy Co., Ltd. 25
Bozhou Zhaosheng Agricultural Technology Co., Ltd. 25
Bozhou Xieying Solar Power Generation Co., Ltd. 25
Shanghai Ling Rui International Trade Company Limited 25
Shenzhen Hongtulve Industrial Co., Ltd. 25
Sino Great Wall Development (Hengqin) Co., Ltd. 25
SINO GREAT WALL（USA）.INC 30
Herabenna Interior Design Guangzhou Co., Ltd. 25
Inrich Me Engineering Co., Limited 17
Sino Great Wall Southwest Construction Engineering Co., Ltd. 25
PT.SINO GREAT WALL INVESTMENT INDONESIA 25
PT.SINO GREAT WALL CONSTRUCTION INDONESIA 25
SINO GREAT WALL INTERNETIONAL
0%-5%
ENGINEERING(CNMI)CO.,LLC
Shenzhen Yatian Decoration Design Engineering Co., Ltd. 25
Sino Great Wall International Engineering (MACAU) Co.,
12
Limited
Sino Great Wall Group Co., Limited 17
SGW HP EngineeringConstructionSDN.BHD 24
SINO GREAT WALL (PHILIPPINES) INTERNATIONAL
30
CORPORITION
Beijing Sino Great Wall Decoration Design Co., Ltd. 25
Suzhou Lvbang Wood Technology Co., Ltd. 25
Sino Heji Environmental Protection Materials Co., Ltd. 25
SINO GREAT WALL INTERNETIONAL 25
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Sino Great Wall Co., Ltd. The Semi-annual Report 2017
ENGINEERING(MM)CO.,LTD
Sino Great Wall International Engineering(Thailand) Co.,Ltd. 20
2.Tax preferences
(1) Approved by the Beijing Municipal Office, SAT under the Circular on Approval of Tax Types in 2013, the
taxable income of Sino Great Wall Design was calculated at 10% of total income.
(2) 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. 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.
(3) 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 an enterprise established in the Macao Special Administrative Region and is subject to
complementary income tax at the progressive rate.
(4) 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
the rate of 15% in 2015, 2016 and 2017.
(5) The Company's wholly-owned subsidiary Wuhan Commercial Workers Hospital Co., Ltd. was entitled to the
exemption of value-added taxes since May 1, 2016 in accordance with the Notice of the Ministry of Finance and
the State Administration of Taxation on Implementing the Pilot Program of Replacing Business Tax with
Value-Added Tax in an All-round Manner (Cai Shui [2016] No.36).
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 3,388,678.83 2,974,883.16
Bank deposit 1,443,085,061.52 940,730,439.25
Other monetary capital 273,782,343.42 397,110,499.42
Total 1,720,256,083.77 1,340,815,821.83
Including: Total amount deposited abroad 231,737,123.34 197,496,287.50
Other notes
94
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
2. Financial assets measured at fair value through current profit and loss
In RMB
Items Yea-end balance Year-Beginning balance
Other notes
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 3,900,000.00 21,300,446.44
Commercial acceptance bill 777,167,587.68 1,053,090,196.14
Total 781,067,587.68 1,074,390,642.58
(2) Notes receivable pledged by the Company at the period-end
In RMB
Items Amount
Commercial acceptance bill 98,645,997.87
Total 98,645,997.87
（3）Notes receivable endorsed or discounted by the Company as at June 30,2016 but not expired on
the balance sheet date
In RMB
Amount underecognized as at June 30,
Item Amount derecognized as at June 30, 2017
2017
Bank acceptance bill 9,800,000.00
Commercial acceptance bill 57,789,095.11
Total 9,800,000.00 57,789,095.11
（4）There is no notes transferred to accounts receivable because drawer of the notes fails to exuted the contract or
agreement
In RMB
Items Amount
Other notes
5. Account receivable
95
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
(1).Classification account receivables.
In RMB
Amount in year-end Amount in year- begin
Book Balance Bad debt provision Book Book Balance Bad debt provision
Categoty value
Amount Proporti Amount Proportio Amount Proportio Amount Proportion( Book value
on(%) n(%) Proportio n(%) %)
n(%)
Receivables subject
4,148,1
to provision for bad 5,335,451 506,485, 4,828,966 423,012,1 3,725,170,2
100.00% 9.49% 82,356. 99.91% 10.20%
debts on credit risk ,726.65 348.85 ,377.80 47.95 08.31
26
characteristics basis
Receivables that are
individually
insignificant but with 3,844,3 3,844,309
0.09%
provision for bad 09.34 .34
debts made on an
individual basis
4,152,0
5,335,451 506,485, 4,828,966 426,856,4 3,725,170,2
100.00% 9.49% 26,665. 100.00% 10.20%
,726.65 348.85 ,377.80 57.29 08.31
Total 60
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
Subtotal within 1 year 4,028,468,011.86 201,423,401.18 5%
1-2 years 680,439,169.63 68,043,916.96 10%
2-3 years 448,259,638.33 134,477,891.50 30%
3-4 years 135,205,169.22 67,602,584.61 50%
4-5 years 40,710,915.07 32,568,732.06 80%
Over 5 years 2,368,822.54 2,368,822.54 100%
Total 5,335,451,726.65 506,485,348.85
Notes：
The Company complies with the disclosure requirements of the No.7 Industry Information Disclosure Guideline
of Shenzhen Stock Exchange-the Listed Company that Engaged in Civil Engineering and Construction Business.
Receivable accounts with large amount individually and bad debt provisions were provided
□Applicable √Not applicable
96
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
Account reveivable on which bad debt proisions are provided on age basis in the group
（2）Bad debt provision accrual collected or switch back
Bad debt provision accrual was RMB 78,876,794.46 ; The acmount collected or switches back amounting to
-130,997.72.
（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. 784,205,077.92 15 39,210,253.90
China Water Conservancy & Hydropower 514,481,654.72 10 25,724,082.74
Second Engineering Bureau Co., Ltd.
Oxley Gem (Cambodia) Co., ltd. 309,592,365.55 6 15,479,618.28
Zhong Ya Group 300,703,393.02 6 15,035,169.65
Oxley Diamond (Cambodia) Co., Ltd 293,445,130.01 6 14,672,256.50
Total 2,202,427,621.22 42 110,121,381.07
(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
97
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
Year-end balance Year-beginning balance
Aging
Amount Proportion Amount Proportion
Within 1 year 87,432,524.80 46.75% 311,193,306.31 97.49%
1-2 years 97,273,487.84 52.02% 5,789,414.72 1.81%
2-3 years 1,149,555.80 0.61% 1,269,897.25 0.40%
Over 3 years 1,147,010.34 0.61% 954,180.35 0.30%
Total 187,002,578.78 -- 319,206,798.63 --
Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in time:：
（2）The ending balance of Prepayments owed by the imputation of the top five parties
Name Balance in year-end Proportion
Qingyuan Hefeng New Energy Technology Co., 75,000,000.000 40.11%
Ltd.
Guangzhou Qiannuo Company 6,962,022.1 3.72%
Anhui Yameiya 5,355,000.00 2.86%
QD-CPC-INDUSTRIES COMPANY 3,438,009.40 1.84%
China steel structure (Kampuchea) Co., Ltd. 3,130,526.29 1.67%
Total 93,885,558.29 50.21%
Other notes：
7.Interest receivable
（1）Classification Interest receivable
In RMB
Name Balance in year-end Balance in Year-beginning
（2）Important overdue interest
Is there any impairment
Name Balance in year-end Overdue date Reason
and its judgment basis?
Other notes：
98
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
8.Dividend receivable
（1）Dividend receivable
In RMB
Items Amount in year-end Amount in year-beginning
（2）Dividend receivable aging over 1 years
In RMB
Whether the impairment
Items Amount in year-end Age Reason
and its judgment basis
Other notes：
9. Other accounts receivable
(1) Other accounts receivable disclosed by category
In RMB
Amount in year-end Amount in year- begin
Book Balance Bad debt provision Book Balance Bad debt provision
Classification Book
Proportio Proportio Proportion( Book value
Amount Amount Amount value Amount Amount
n(%) n(%) %)
Other receivables
subject to provision
991,698, 68,552,9 923,145,8 709,527 58,515,25 651,012,13
for bad debts on 100.00% 6.91% 99.93% 8.25%
810.35 52.46 57.89 ,391.05 8.14 2.91
credit risk
characteristics basis
Other receivables
with individually
insignificant amount 500,000 500,000.0
0.07%
but subject to .00 0
individual provision
for bad debts
991,698, 68,552,9 923,145,8 710,027 59,015,25 651,012,13
Total 100.00% 6.91% 100.00% 8.25%
810.35 52.46 57.89 ,391.05 8.14 2.91
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
99
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
Amount in year-end
Aging
Account receivable Bad debt provision Rate of alloance(%)
Within item 1 year
Subtotal within 1 year 855,499,389.99 42,774,969.50 5.00%
1-2 years 91,500,049.08 9,150,004.91 10.00%
2-3 years 32,825,953.41 9,847,786.02 30.00%
3-4 years 9,775,052.72 4,887,526.36 50.00%
4-5 years 1,028,497.40 822,797.92 80.00%
Over 5 years 1,069,867.75 1,069,867.75 100.00%
Total 991,698,810.35 68,552,952.46
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 12,514,988.27, the acount collected or switches back amounting to RMB
2,149,851.74.
Significant amount of reversed or recovered bad debt provision：
In RMB
Name Amount Method
(3) Other account receivables actually cancel after wtite-off
In RMB
Items Amount
Of Which,Other receivable write-off：
In RMB
Whether the money
is generated by
Name Nature Amount Reason program
related party
transactions
Notes：
(4) Other account receivables category by nature of money
In RMB
Naature Ending book balance Beginning book balance
100
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
Bidding margins, performance bonds and
582,846,578.91 366,310,322.14
deposits
Petty cash and current accounts between
69,312,517.17 59,867,918.12
individuals
Current accounts between entities 339,032,395.66 282,984,039.72
Others 507,318.61 865,111.07
Total 991,698,810.35 710,027,391.05
（5）The ending balance of other receivables owed by the imputation of the top five parties
In RMB
Portion in total other Bad debt provision
Name Nature Year-end balance Age
receivables(%) of year-end balance
China Electric
Current accounts
Power Construction 199,296,452.57 1 年以内 20.10% 9,964,822.63
between entities
Group Co., Ltd.
PT.WANXIANG
NICKEL Deposits 68,000,000.00 1 年以内 6.86% 3,400,000.00
INDONESIA
Hebei Xuxing urrent accounts
55,000,000.00 1 年以内 5.55% 2,750,000.00
Industry Co., Ltd. between entities
China Harbour
Engineering Deposits 51,258,276.00 1 年以内 5.17% 2,562,913.80
Company Ltd.
China Second
Metallurgy Group Performance bonds 50,000,000.00 1 年以内 5.04% 2,500,000.00
Co., Ltd.
Total -- 423,554,728.57 -- 42.72% 21,177,736.43
(6) Account receivables with government subsidies involved
In RMB
Estimated time, amount
Name Project name Amount in year-end At the end of aging
and basis
(7) Other account receivables recognition terminated due to transfer of financial assets
(8) Other account receivables transferred and assets & liability formed by its continuous involvement
Other Notes
101
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
10.Inventory
Whether the company needs to comply with the disclosure requirements of the particular industry
No
（1）Inventory types
In RMB
Year-end balance Year-beginning balance
Items
Provision for bad Provision for bad
Book Balance Book value Book Balance Book value
debts debts
Raw materials 9,258,863.69 9,258,863.69 12,078,945.75 12,078,945.75
Processing
668,934.23 668,934.23
products
Stock goods 50,339,149.57 1,404,765.68 48,934,383.89 43,492,877.62 1,404,765.68 42,088,111.94
Construction cont
ract has been com
248,587,196.30 5,051,867.60 243,535,328.70 282,911,079.94 5,051,867.60 277,859,212.34
pleted unsettled a
ssets
Low value
209,726.10 209,726.10
consumables
Total 308,185,209.56 6,456,633.28 301,728,576.28 339,361,563.64 6,456,633.28 332,904,930.36
The Company complies with the disclosure requirements of the No.7 Industry Information Disclosure Guideline
of Shenzhen Stock Exchange-the Listed Company that Engaged in Civil Engineering and Construction Business.
(2) Inventory depreciation reserve
In RMB
Year-beginning Increase Decrease
Items Year-end balance
balance Accrual Other Switch back Other
Stock goods 1,404,765.68 0.00 0.00 1,404,765.68
Construction cont
ract has been com
5,051,867.60 0.00 0.00 5,051,867.60
pleted unsettled a
ssets
Total 6,456,633.28 6,456,633.28
102
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
(3) Explanation on inventories with capitalization of borrowing costs included at ending balance
(4) Assets unsettled formed by construction contract which has completed at period-end
In RMB
Items Amount
Accumulated Incurred Cost 13,922,688,136.75
Accumulated Confirmed Gross Profit 3,349,029,346.13
Less: expected loss 5,051,867.60
Settlement Amount 17,023,130,286.58
Unliquidated Completed Assets Formed in the Construction
243,535,328.70
Contract
Other notes：
11. Divided into assets held for sale
In RMB
Items Ending book value Fair value Estimated disposal cost Estimated disposal 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
7,961,594.15 13,462,942.89
one year
Total 7,961,594.15 13,462,942.89
Other notes：
13. Other current assets
In RMB
Items
Year-end balance Year-beginning balance
Input tax to be deducted 11,484,244.83 35,450,194.47
Total 11,484,244.83 35,450,194.47
Other notes：
103
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
14. Available-for-sale financial assets
(1) Available-for-sale financial assets
In RMB
Closing balance Opening balance
Items Provision fo Provision fo
Book balance Book value Book balance Book value
rimpairment rimpairment
(2) Available-for-sale financial assets measured at fair value at period-end
In RMB
Available-for-sale equity Available-for-sale Debt
Type Total
instruments instruments
(3) Available-for-sale financial assets measured by cost at the period-end
In RMB
Book balance Impairment provision Shareholdin Cash bonus
g proportion of the
Investee Period-begi Period-beg
Period Decre Period among the reporting
n Increase Decrease in Increase
-end ase -end investees period
(4) Changes of the impairment of the available-for-sale financial assets during the reporting period
In RMB
Available-for-sale Available-for-sale
Type Total
Equity instruments Debt instruments
⑸Relevant description of the end of the fair value of the equity instruments at the end of a serious decline in fair
value or non temporary decline but not related to impairment provision
In RMB
Decrease in fair
Continuous fall Provision for Reasons for
Project Investment cost Ending fair value value relative to
time (month) impairment impairment
cost
Other notes
104
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
15. Held-to-maturity investment
(1) Held-to-maturity investment
In RMB
Year-end balance Year-beginning balance
Items
Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
(2) Important held-to-maturity investment at period-end
In RMB
Project Face value Interest rate Actual interest rate Expiring date
(3) Reclassify of held-to-maturity investment in the period
Other notes
16. Long-term account receivables
（1）Long-term account receivables
In RMB
Year-end balance Year-beginning balance Discount rate
Items
Provision for Provision for range
Book balance Book value Book balance Book value
impairment impairment
(2) Long-term account receivables recognition terminated due to transfer of financial assets
(3) Long-term account receivables transferred and assets & liability formed by its continuous involvement
17. Long-term equity investment
In RMB
Increase/decrease
Closing
Adjustme
Withdraw balance
Decrease Gain/loss nt of Declarati
Opening Add Other n Closing of
Investees d of other on of cash
balance investmen equity impairme Other balance impairme
investmen Investme comprehe dividends
t changes nt nt
t nt nsive or profit
provision provision
income
105
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
I. Joint ventures
II. Associated enterprises
Other notes
18. Investment real estate
(1) Investment real estate by cost measurement
□Applicable √ Not applicable
(2) Investment real estate by fair value
□Applicable √ Not applicable
(3) Investment real estate without certificate of ownership
In RMB
Items Book balue Reason
Other notes
19. Fixed assets
(1) List of fixed assets
In RMB
Machinery
Items House, building Transportations Other equipment Total
eqiupment
I. Original price
1. Balance at
67,969,481.04 81,254,453.35 36,163,316.47 14,705,677.33 200,092,928.19
period-beginning
2.Increase in the
4,414,321.14 2,599,482.28 2,840,229.14 485,689.58 10,339,722.14
current period
(1) Purchase 3,814,321.14 2,599,482.28 2,840,229.14 485,689.58
（2） Transferred fr
600,000.00
om construction in p
rogress
(3)Increased of
Enterprise
Combination
106
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
3.Decreased amount
of the period
（1）Disposal
4. Balance at
72,383,802.18 83,853,935.63 39,003,545.61 15,191,366.91 210,432,650.33
period-end
II. Accumulated
depreciation
1.Opening balance 15,127,800.94 30,513,047.92 16,465,368.36 9,502,963.24 71,609,180.46
2.Increased amount
4,623,216.53 3,631,775.51 2,075,612.47 1,147,688.56 11,478,293.07
of the period
(1) Withdrawal 4,623,216.53 3,631,775.51 2,075,612.47 1,147,688.56 11,478,293.07
3.Decrease in the
reporting period
（1）Disposal
4.Closing balance 19,751,017.47 34,144,823.43 18,540,980.83 10,650,651.80 83,087,473.53
III. Impairment
provision
1.Opening balance
2.Increase in the
reporting period
（1）Withdrawal
3.Decrease in
the reporting period
（1）Disposal
4. Closing balance
IV. Book value
1.Book value of the
52,632,784.71 49,709,112.20 20,462,564.78 4,540,715.11 127,345,176.80
period-end
2.Book value of the
52,841,680.10 50,741,405.43 19,697,948.11 5,202,714.09 128,483,747.74
period-begin
107
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
(2) Fixed assets temporarily idled
In RMB
Accumulated Provision for
Items Original book value Book value Remark
depreciation impairment
(3) Fixed assets rented by finance leases
In RMB
Accumulated Accumulated
Items Original book value Book value
depreciation depreciation
Machinery equipment 1,626,791,238.70 102,540,637.32 1,524,250,601.38
(4) Fixed assets leased in the operating leases
In RMB
Items End book value
(5) Fixed assets without certificate of title completed
In RMB
Items Book value Reason
Other notes
20. Project under construction
(1)Project under construction
In RMB
Year-end balance Year-beginning balance
Items Book balance Provision for Book value Book balance Provision for Book value
devaluation devaluation
Suzhou Lvbang
842,027.15 842,027.15
Plant
Kuwait tower
2,946,270.27 2,946,270.27
cranes
Total 3,788,297.42 0.00 3,788,297.42
(2) Changes of significant construction in progress
In RMB
108
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
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 6,478,67 842,027. 842,027.
Lvbang 0.00 0.00 0.00 100% 0.00 0.00 0.00% 自筹
0.79 15 15
Plant
Kuwait 3,028,59 2,946,27 2,946,27
tower 0.00 0.00 0.00 97% 0.00 0.00 0.00% 自筹
7.00 0.27 0.27
cranes
9,507,26 3,788,29 3,788,29
0.00 0.00 0.00 -- -- --
Total 7.79 7.42 7.42
（3）Provision for impairment of construction projects
In RMB
Items Amount Reason
Other notes
21. Engineering Material
In RMB
Items Closing balance Opening balance
Other notes
22. Disposal of fixed assets
In RMB
Items Closing balance Opening balance
Other notes：
23. Productive biological assets
(1) Measured by cost
□ Applicable √ Not applicable
109
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
(2) Measured by fair value
□ Applicable √ Not applicable
24. Oil-and-gas assets
□ Applicable √ Not applicable
25. Intangible assets
（1）Information
In RMB
Non-patent
Items Land use right Patent Software Total
Technology
I. Original price
1.Opening
108,621,002.59 4,416,616.07 113,037,618.66
balance
2.Increased
amount ofthe 40,800.00 40,800.00
period
(1) Purchase 40,800.00 40,800.00
(2)Internal
Development
(3)Increased of
Enterprise
Combination
3.Decreased amount
of the period
（1）Disposal
4. Balance at
108,621,002.59 0.00 0.00 4,457,416.07 113,078,418.66
period-end
II.Accumulated
amortization
1. Balance at
5,054,613.34 1,779,561.77 6,834,175.11
period-beginning
2. Increase in the
1,531,394.15 404,079.73 1,935,473.88
current period
(1) Withdrawal 1,531,394.15 404,079.73 1,935,473.88
110
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
（2）Increased of
Enterprise 99,422.09
Combination
3.Decreased amount
of the period
（1）Disposal
4. Balance at
6,586,007.49 0.00 0.00 2,183,641.50 8,769,648.99
period-end
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
102,034,995.10 0.00 0.00 22,273,774.57 104,308,769.67
period -end
2.Book value at
103,566,389.25 2,637,054.30 106,203,443.55
period-beginning
The intangible assets by the end of the formation of the company's internal R & D accounted of the proportion of
the balance of intangible assets
⑵Details of Land use right failed to accomplish certification of property
In RMB
Items Book value Reason
Other notes：
111
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
26. Development expenditure
In RMB
Beginning Ending
Items Increase in the period Decrease in period
balance balance
Other notes
27. Goodwill
(1) Original book value of goodwill
In RMB
Name of the
investees or the
Opening balance Increase Decrease Closing balance
events formed
goodwill
Shenzhen Yatian
Decoration
Design 6,724,316.91 0.00 0.00 6,724,316.91
Engineering Co.,
Ltd.
Shenzhen Yatian
Decoration
Design 17,948,978.53 0.00 0.00 17,948,978.53
Engineering Co.,
Ltd.
Sino Great Wall
Jianyee
6,943,534.86 0.00 0.00 6,943,534.86
Engineering Co.,
Ltd.
Wuhan Commerc
ial & Vocational 27,257,314.49 0.00 0.00 27,257,314.49
Hospital Co.,Ltd
Total 58,874,144.79 0.00 0.00 58,874,144.79
（2）Impairment tprovision of goodwill
In RMB
Name of the
investees or the
Opening balance Increase Decrease Closing balance
events formed
goodwill
112
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
Notes of the testing process of goodwill impairment, parameters and the recognition method of goodwill
impairment losses:
Other notes:
28.Long-term amortization expenses
In RMB
Balance in Increase at this Amortization at
Items Decrease Balance in year-end
year-begin period this period
Renovation costs 12,028,199.87 0.00 2,695,428.86 0.00 9,332,771.01
Overseas guarantee
8,437,778.96 0.00 4,691,140.82 0.00 3,746,638.14
fees
Less: Long-term
borrowings maturing -13,462,942.90 5,501,348.75 0.00 0.00 -7,961,594.15
within one year
Amortization fees 0.00 0.00 0.00
Total 7,003,035.93 5,501,348.75 7,386,569.68 0.00 5,117,815.00
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
Provision for asset
575,038,301.31 88,823,111.60 484,110,666.81 74,623,400.23
impairment
Deductible losses 2,193,494.11 548,373.53 2,265,150.21 566,287.55
Provision for inventory
6,456,633.28 1,108,971.56 6,456,633.28 1,108,971.56
depreciation
Total 583,688,428.70 90,480,456.69 492,832,450.30 76,298,659.34
(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
113
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(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
90,480,456.69 76,298,659.34
assets
Deferred income
26,513,069.28 27,469,888.77
liabilities
(4)Details of income tax assets not recognized
In RMB
Items End of term Beginning of term
(5) The un-recognized deductible losses of deferred income tax assets will due in the following years:
In RMB
Year End of term Beginning of term Remark
Other notes：
30 .Other non-current assets
In RMB
Items Closing balance Opening balance
PPP project investment 300,279,100.00 48,960,000.00
Advances for purchase of long-term assets 64,913,773.00 67,942,258.30
Total 365,192,873.00 116,902,258.30
Other notes：
31 .Short-term loans
（1）Category of short-term borrowings
In RMB
Items End of term Beginning of term
Guaranteed borrowings 2,692,397,500.00 1,621,515,110.00
Commercial acceptance bills endorsed or
discounted but not expired on the balance 57,789,095.11 344,543,247.59
sheet date
Total 2,750,186,595.11 1,966,058,357.59
Notes to short-term borrowings:
(2) Situation of Overdue Outstanding Short-Term Borrowing
114
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
Final overdue outstanding short-term borrowing was zero, and situation of important overdue outstanding
short-term borrowing was as follows:
In RMB
Unit Closing balance Interest rate Time Overdue interest rate
Other notes：
32. Financial liabilities measured at fair value through current profit and loss
In RMB
Items Closing balance Opening balance
Other notes：
33. Derivative financial liabilities
□ Applicable√ Not applicable
34. Note payable
In RMB
Type Closing balance Opening balance
Commercial acceptance 354,206,203.17 397,450,000.00
Bank acceptance 251,951,880.00 309,433,375.54
Total 606,158,083.17 706,883,375.54
Amount due in next fiscal period is RMB 0.00.
35.Account payable
（1）Account payable
In RMB
Items Closing balance Opening balance
Payments for projects 1,483,162,799.23 1,295,611,654.20
Payments for purchase of long-term assets 7,923,625.18
Payment for purchase of medicines 22,304,037.68 10,413,710.87
Total 1,505,466,836.91 1,313,948,990.25
（2）Significant accounts payable that aged over one year
In RMB
The reason for not repaid or carried forwar
Items Balance in year-end
d
115
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
RMB 3579983.74 for those within 1 year
CHHE GROUP CO.LTD 15,071,239.84
and RMB 11950077.17 within 1-2 years
RMB 730929 For those within 1 year and
Rezayat Trading Co. Limited 8,944,679.73
RMB8318312.92 within 1-2 years
Total 24,015.919.57 --
Other notes：
36. Accounts received in advance
(1)Accounts received in advance
In RMB
Items End of term Beginning of term
Project engineering Fund 532,197,371.32 572,743,695.28
Accounts received in advance 1,202,047.48 1,040,377.30
Total 533,399,418.80 573,784,072.58
(2) Accounts payable with major amount and aging of over one year
In RMB
Items Closing balance Reason
（3）Information of unliquidated completed assets formed in the construction contract at the end of the
period
In RMB
Items Amount
Other notes：
37. Employee compensation payable
(1)Classification of employee compensation payable
In RMB
Items Balance in year-begin Increase at this period Decrease at this period Balance in year-end
I.
17,637,749.42 160,032,879.27 160,309,543.14 17,361,085.55
Short-term remuneration
II.
Post-employment benefit
1,159,797.27 7,062,149.91 7,066,018.58 1,155,928.60
s - defined contribution p
lans
116
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
Total 18,797,546.69 167,095,029.18 167,375,561.72 18,517,014.15
（2）Short-term remuneration
In RMB
Items Balance in year-begin Increase at this period Decrease at this period Balance in year-end
1.Wages, bonuses,
16,916,964.73 142,403,319.93 142,743,934.89 16,576,349.77
allowances and subsidies
2.Employee welfare 9,415,357.39 9,415,357.39 0.00
3. Social insurance
620,944.70 4,806,277.64 4,707,985.82 719,236.52
premiums
Including：Medical
516,068.74 4,233,553.51 4,236,120.73 513,501.52
insurance
Work injury insurance 26,369.92 373,981.55 131,371.45 93,741.05
Maternity insurance 78,506.04 3,380,951.59 340,493.64 111,993.95
4. Public reserves for
99,839.99 3,380,951.59 3,415,292.32 65,499.26
housing
5.Union funds and staff
26,972.72 26,972.72 0.00
education fee
Total 17,637,749.42 160,032,879.27 160,309,543.14 17,361,085.55
（3）Defined contribution plans listed
In RMB
Items Balance in year-begin Increase at this period Decrease at this period Balance in year-end
1. Basic old-age
1,130,824.85 6,804,645.45 6,808,963.49 1,126,506.81
insurance premiums
2.Unemployment
28,972.42 257,504.46 257,055.09 29,421.79
insurance
Total 1,159,797.27 7,062,149.91 7,066,018.58 1,155,928.60
Other notes:
38. Taxes payable
In RMB
Items Closing balance Opening balance
VAT 63,910,297.09 12,062,605.90
Enterprise Income tax 163,853,558.60 207,849,865.19
Individual income tax 760,062.36 1,515,889.41
City Construction tax 3,970,922.75 4,725,964.11
117
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
Educational surtax 3,096,846.87 3,694,729.45
Stamp Tax 244,211.68 336,646.62
Other 80,990,163.21 83,297,969.10
Land use tax 47,718.08
Land use tax 34,225.74
Total 316,908,006.38 313,483,669.78
Other notes：
39. Interest payable
In RMB
Items Closing balance Opening balance
Interest payable on short-term borrowings 3,435,696.74 4,710,255.00
Interest payable on long-term borrowings 2,108,821.81 1,718,238.55
Total 5,544,518.54 6,428,493.55
Particulars of significant overdue unpaid interest:
In RMB
Name Overdue amount Overdue reason
Other notes：
40. Dividends payable
In RMB
Items Closing balance Opening balance
Common stock dividend 101,894,700.66
Total 101,894,700.66
Note: Including significant unpaid dividends payable over one year, the unpaid reason shall be disclosed:
41. Other accounts payable
(1) Other accounts payable listed by nature of the account
Items Closing balance Opening balance
Bidding margins, performance bonds and
23,002,897.46 26,582,761.45
deposits
Current accounts between individuals and
23,743,153.38 45,650,286.49
withholding payables
Lendings to shareholders
Current accounts between entities 218,528,449.91 136,613,997.74
Others 208,110.36 13,567,929.33
118
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
Total 265,482,611.11 222,414,975.01
(2) Other payables with large amount and aging of over one year
In RMB
Items Ending balance Reason
Shenzhen Qunguangshun Construction
31,500,000.00 Unexpired yet
Labor Co., Ltd.
Total 31,500,000.00 --
Other notes：
42. Divided into liability held for sale
In RMB
Items Closing balance Opening balance
Other notes：
43.Non-current liabilities due within 1 year
In RMB
Items Closing balance Opening balance
Long-term loans due 1 year 814,408,879.06 175,958,998.04
Total 814,408,879.06 175,958,998.04
Other notes：
44.Other current liabilities
In RMB
Items Closing balance Opening balance
Output tax to be carried forward 30,382,980.72
Total 30,382,980.72
Increase or decrease in short-term bonds payable：
In RMB
Premium
Amount This
and Balance
Issuing Issuing in period for
Name Par value Term This issue Interest discount in
date amount year-beg repaymen
amortiatio year-end
in t
n
119
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
Other notes：
45. Long-term loan
(1) Category of long-term loan
In RMB
Items Balance in year-end Balance in year-begin
Pledged borrowings 100,000,000.00 500,000,000.00
Mortgage borrowings 3,746,159.00 3,175,860.22
Guarantee loan 340,595,435.32 283,683,018.60
Total 444,341,594.32 786,858,878.82
Notes of short-term loans category:
Other notes including interest rate range:
46.Bond payable
（1）Bond payable
In RMB
Items Closing balance Opening balance
Qianhai Wutong Private bond No.2016070 100,000,000.00
Total 100,000,000.00
(2) Changes on bonds payable (not including other financial instrument classified as preferred stock and
perpetual capital securities of financial liabilities)
In RMB
(3) Note to conditions and time of share transfer of convertible bonds
（4）Other financial instruments that are classified as financial liabilities
The issuance of preferred stock and other financial instruments such as perpetual debt
Table of changes in financial instruments such as preferred stock and perpetual debt
In RMB
External Balance in year-begin Increase at this period Decrease at this period Balance in year-end
financial
Amount Book value Amount Book value Amount Book value Amount Book value
instruments
120
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
Notes
47. Long-term payable
(1) Long-term payable listed by nature of the account
In RMB
Items Closing balance Opening balance
Other notes：
48. Long-term employee salary payable
（1）Long-term employee salary payable
In RMB
Items Closing balance Opening balance
(2) Changes of defined benefit plans
Present worth of defined benefit plans obligation:
In RMB
Items Closing balance Opening balance
Plan assets：
In RMB
Items Closing balance Opening balance
Net liabilities(net assets) of defined benefit plans
In RMB
Items Closing balance Opening balance
Notes to the influence of the content and related risk of defined benefit plans to the future cash flows, time and
uncertainty of the Company:
Notes to analysis results of major actuarial assumptions and sensibility of defined benefit plans
Other notes:
49. Specific payable
In RMB
Balance in Increase at this Decrease at this
Items Balance in year-end Reason
year-begin period period
Other notes：
121
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
50. Estimates liabilities
In RMB
Items Balance in year-end Balance in year-begin Reason
Provision for pending litigation
4,878,343.68 13,225,861.70
Pending litigation of the Company
Total 4,878,343.68 13,225,861.70 --
Other notes：
51.Deferred income
In RMB
Balance in Increase at this Decrease at this
Items Balance in year-end Reason
year-begin period period
Details of government subsidies
In RMB
Amount
Beginning of New subsidy in transferred to Asset-related or
Items Other changes End of term
term current period non-operational income-related
income
Other notes：
52.Other Non-current liabilities
In RMB
Items Closing balance Opening balance
Other notes：
53.Stock capital
In RMB
Increase/decrease this time (+ , - )
Balance Balance
Issuing of new Transferred
Year-beginning Bonus shares Other Subtotal year-end
share from reserves
Total of
1,698,245,011.
capital 1,698,245,011.00
00
shares
Other notes：
122
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
54. Other equity instruments
(1) Basic information of preferred stock, perpetual capital securities and other financial instruments
outstanding issued at period-end
(2) Change list of preferred stock, perpetual capital securities and other financial instruments outstanding
issued at period-end
In RMB
Financial Opening period Increase Decrease 少 Closing period
instruments
outstanding Amount Book value Amount Book value Amount Book value Amount Book value
issued
Changes, reason of change and basis of relevant accounting treatment of other equity instruments in reporting
period:
Notes:
55. Capital reserves
In RMB
Items Year-beginning balance Increase in current Decrease in current Year-end balance
Share premium -857,285,524.28 -857,285,524.28
Other -442,064,177.46 4,222,250.95 -446,286,428.41
Total -1,299,349,701.74 4,222,250.95 -1,303,571,952.69
Other notes, including changes and reason of change:
56.Treasury stock
In RMB
Decrease in the current
Items Year-beginning balance Increase in the current Year-end balance
period
Other notes, including changes and reason of change:
57. Other comprehensive income
In RMB
Amount of current period
Less ：
Previously rec
Amount for After - tax a After - tax a
Year-beginni Year-end
Items ognized in pro
the period Less： ttributable t ttributable t
ng balance balance
fit or loss in ot
before inco Income tax o the parent o minority s
her comprehen
me tax company hareholders
sive income
Other notes, including the adjustment of the recognition of initial amount of effective part of the cash flow
123
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
hedging gains and losses
58. Special reserves
In RMB
Decrease in the current
Items Year-beginning balance Increase in the current Year-end balance
period
Safety production cost 65,687,868.14 35,597,306.04 19,457,286.50 81,827,887.68
Total 65,687,868.14 35,597,306.04 19,457,286.50 81,827,887.68
Other notes, including changes and reason of change:
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
Other note, including changes and reason of change
60. Retained profits
In RMB
Items
Amount of current period Amount of previous period
After adjustments: Retained profits at the period
1,228,970,498.86 755,308,636.19
beginning
Dividend of common stock payable 1,395,800,181.16 959,222,073.64
Retained profits at the period end
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.
(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
124
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
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 3,024,948,121.79 2,319,597,133.26 1,953,458,815.17 1,460,727,131.33
Other business 134,235.01 1,482.50 115,940.34
Total 3,025,082,356.80 2,319,598,615.76 1,953,574,755.51 1,460,727,131.33
62. Business tax and subjoin
In RMB
Items Amount of current period Amount of previous period
Urban construction tax 1,042,829.78 490,781.57
Education surcharg 655,066.85 407,123.13
Property tax 68,451.48
Land use tax 47,718.08
Stamp tax 128,521.10
Other 8,128,747.41
Total 1,942,587.29 9,026,652.11
Other notes
63.Sales expenses
In RMB
Items Amount of current period Amount of previous period
Wage 4,603,916.86 3,018,618.91
Office fee 4,078,158.29 3,108,540.71
Travel 393,660.38 561,434.40
Business expenses 128,844.14 217,201.30
Advertising 47,834.95 2,675.00
Advertising 7,849,265.92 1,844,249.85
Other 992,905.85 506,544.07
Total 18,094,586.39 9,259,264.24
Other notes：
125
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
64. Administrative expenses
In RMB
Items Amount of current period Amount of previous period
Wage 68,871,087.57 55,087,982.62
Office fee 8,687,944.68 6,868,345.55
Rental fees 7,347,823.86 8,847,563.59
Travel expenses 5,571,017.05 6,178,764.80
Entertainment expenses 3,996,369.24 4,279,243.33
Depreciation of fixed assets 6,270,469.80 1,049,628.12
Vehicle costs 1,479,810.31 1,406,039.97
Amortization of long-term prepaid
1,939,541.82 2,346,368.89
expenses
Consulting fees 7,555,211.52 14,430,715.98
Entertainment expenses 823,301.14 1,465,461.90
Factoring fee 1,408,333.33
Conference expenses 58,389.00 120,939.59
Tax fee 311,342.47 256,826.82
Cultivate fee 37,574.26 5,041.50
Insurance fee 582,826.56 3,473.00
Other 10,713,417.51 9,186,385.90
Transportation changes 930,631.36 52,639.40
Total 125,176,758.15 112,993,754.29
Other notes：
65. Financial expenses
In RMB
Items Amount of this period Amount of last period
Interest expenses 96,401,355.73 130,325,289.46
Less: Interest income 4,508,510.14 3,936,374.12
Gains or losses on exchange 28,659,038.33 -75,709,807.87
Discount interest 2,767,616.98 19,445,217.45
Guarantee expenses 8,617,206.29
Handling charges and others 7,875,102.40 57,312,903.03
Total 139,811,809.59 70,024,674.60
Other notes：
126
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
66.Loss of assets impairment
In RMB
Items Amount of this period Amount of last period
Losses on bad debts 89,110,933.27 78,474,915.67
Losses on inventory depreciation 52,180.60
Total 89,110,933.27 78,527,096.27
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
Other notes：
68. Investment income
In RMB
Items Amount of this period Amount of last period
Hold the investment income during from
0.00 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
70. Non-operating 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
of fixed assets
Government Subsidy 60,363.52
127
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
Demolition compensation 29,071,295.00
Other 4,384,261.26 2,040.00
Total 4,444,624.78 29,133,269.00
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
Other notes：
71. Non-operating expenses
In RMB
The amount of non-operating
Items
Amount of current period Amount of previous period gains & lossed
Compensation for demolition
2,755,912.00
and relocation
Other 93,122.33
Total 93,122.33 2,755,912.00
Other notes：
72 .Income tax expenses
(1) Table of income tax expenses
In RMB
Items Amount of current period Amount of previous period
Current income tax expenses 68,435,528.34 48,703,354.96
Deferred income tax expenses -12,208,390.09 -10,840,595.13
Total 56,227,138.25 37,862,759.83
(2) Adjustment progress of accounting profit and income tax
In RMB
Itmes Amount of current period
Total profits 335,698,568.80
128
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
Income tax expense 56,227,138.25
Other notes
73 .Other comprehensive income
More details can be seen in Note.
74.Items of Cash flow statement
（1）Other cash received from business operation
In RMB
Items Amount of current period Amount of previous period
2,967,473,297.47 339,397,760.63
Total 2,967,473,297.47 339,397,760.63
Notes：
(2)Other cash paid related to operating activities
In RMB
Items Amount of current period Amount of previous period
Handling charges 9,715,737.69 10,189,145.12
Margin and deposit expenses 390,616,487.26 39,131,360.77
Selling expenses 1,218,208.55 871,447.72
General and administrative expenses 103,574,686.71 76,645,222.04
Current accounts 2,939,598,205.33 928,164,050.00
Total 3,444,723,325.54 1,055,001,225.65
Notes：
（3）Other Cash received related to investment activities
In RMB
Items Amount of current period Amount of previous period
Notes：
（4）Other Cash payable related to investment activities
In RMB
Items Amount of current period Amount of previous period
129
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
Notes
（5）Other Cash received related to Financing activities
In RMB
Items Amount of current period Amount of previous period
103,516,162.13
Total 103,516,162.13
Notes：
（6）Other Cash payable related to Financing activities
In RMB
Items Amount of current period Amount of previous period
60,833.33 561,003,771.39
Total 60,833.33 561,003,771.39
Notes：
75. Supplement Information for cash flow statement
（1）Supplement Information for cash flow statement
In RMB
Supplement Information Amount of current period Amount of previous period
I. Adjusting net profit to cash flow from
-- --
operating activities
Net profit 279,471,430.55 201,577,648.33
Add: Impairment loss provision of assets 89,110,933.27 78,527,096.27
Depreciation of fixed assets, oil and gas
6,270,469.80 1,119,746.80
assets and consumable biological assets
Amortization of intangible assets 1,754,011.80 439,145.36
Amortization of Long-term deferred
1,939,541.82 2,276,250.23
expenses
Financial cost 139,811,809.59 70,024,674.60
Decrease in deferred income tax assets -14,181,797.35 -11,803,334.90
Increased of deferred income tax liabilities -956,819.50 -15,444.16
Decrease of inventories 30,297,693.75 -77,722,883.82
Decease of operating receivables -1,224,519,302.24 -2,294,877,180.26
130
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
Increased of operating Payable 155,004,448.32 773,838,322.35
Net cash flows arising from operating
-535,997,580.19 -1,256,615,959.20
activities
II. Significant investment and financing
-- --
activities that without cash flows:
III．Movement of cash and cash equivalents： -- --
Ending balance of cash equivalents 1,446,473,740.35 611,121,476.88
Less: Beginning balance of cash equivalents 943,705,322.41 582,743,756.81
Net increase of cash and cash equivalents 502,768,417.94 28,377,720.07
(2)Composition of cash and cash equivalents
In RMB
Amount
Including --
Including --
Including --
Other notes：
(3) Net Cash receive of disposal of the subsidiary
In RMB
Amount
Including --
Including --
Including --
Other notes：
（4）Composition of cash and cash equivalents
In RMB
Items Balance in year-end Balance in year-Beginning
I. Cash 1,446,473,740.35 943,705,322.41
III. Balance of cash and cash equivalents at
1,446,473,740.35 943,705,322.41
the period end
Other notes：
76. Note of statement of changes in the owner's equity
Explain "other" project name and adjustment amount of the adjustment of closing balance in previous year, etc.:
Nil
77. The assets with the ownership or use right restricted
131
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
In RMB
Items Book value in year-end Reason
Other notes：
78. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
Closing foreign currency Closing convert to RMB
Items Exclange rate
balance balance
Including：USD 33,816,938.40 6.7744 229,089,468.49
HKD -8,234,837.94 0.8679 -7,147,214.61
Rials 31,097.75 1.8568 57,742.31
Rupee 269,427,343.24 0.0438 11,809,000.45
pataca 109,600.89 0.8264 90,570.89
Peso 10,085,495.29 0.1340 1,351,456.38
Kyat 20,512,343.15 0.0049 100,305.36
Ringgit 1,508,191.53 1.5779 2,379,751.85
Dinar (Kuwait) 104,883.85 22.3364 2,342,727.64
Rouble 3,135,458.67 0.1142 358,069.38
THB 420,982.91 0.1993 83,914.52
Including：USD 118,593,051.33 6.7744 803,396,766.93
Rupee 1,182,656,378.30 0.0438 51,835,829.06
pataca 1,362,817.67 0.8264 1,126,191.64
Dinar (Kuwait) 47,478,207.47 22.3364 1,060,492,233.33
Rials 277,150,183.20 1.8568 514,612,460.17
Ringgit 58,282,333.00 1.5779 91,962,782.44
Dinar(Algeria) 24,867,193.21 0.0626 1,556,934.97
Advances to suppliers
Including：USD 2,555,658.93 6.7744 17,313,055.86
Rials 16,552,970.07 1.8568 30,735,554.83
Rupee 5,924,310.66 0.0438 259,662.54
Dinar (Kuwait) 1,023,018.55 22.3364 22,850,551.54
Other receivable
Including：USD 7,432,468.55 6.7744 50,350,514.95
HKD 356,732.06 0.8679 309,614.89
Rupee 20,641,209.29 0.0438 904,704.20
132
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
Ringgit 669,499.59 1.5779 1,056,392.94
Peso 146,997.00 0.1340 19,697.60
Dinar(Algeria) 1,988,230.25 0.0626 124,483.10
Kyat 1,937,932.91 0.0049 9,476.49
THB 3,127,800.00 0.1993 623,464.37
riyal 111,041,331.00 1.8568 206,181,543.40
Euro 15,000,000.00 7.7496 116,244,000.00
Dinar (Kuwait) 1,415,831.68 22.3364 31,624,582.74
Account payble
Including：USD 48,671,722.90 6.7744 329,721,719.62
Riyal 7,458,671.85 1.8568 13,849,261.89
Rupee 363,137,877.76 0.0438 15,916,333.18
Peso 44,130.43 0.1340 5,913.48
Ringgit 20,163,759.48 1.5779 31,816,080.98
Kyat 1,336,107,728.00 0.0049 6,533,566.79
Dinar (Kuwait) 6,108,370.68 22.3364 136,439,010.86
Advances from customers
Including：USD 1,255,736.84 6.7744 8,506,863.65
Dinar(Algeria) 109,160,169.07 0.0626 6,834,518.19
Euro 1,998,722.68 7.7496 15,489,301.28
THB 3,299,680.02 0.1993 657,725.22
Other payable
Including：USD 822,106.20 6.7744 5,569,276.24
Peso 8,447.15 0.1340 1,131.92
riyal 142,769.54 1.8568 265,094.48
HKD 120,030,000.00 0.8679 104,176,437.60
Dinar (Kuwait) 287,361.27 22.3364 6,418,616.27
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
133
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
79. Hedging
Disclose hedging items by type of hedging as well as relevant arbitrage tool, qualitative and quantitative
information for arbitrage project:
80.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
Other notes：
（2）Combination cost and goodwill
In RMB
Combination cost
Notes to determination method, consideration and changes of fair value of combined cost:
The main formation reason for the large goodwill:
Other notes:
(3) The identifiable assets and liabilities of acquiree at purchase date
In RMB
Fair value on the acquisition date Book value on the acquisition date
Determination method for fair value of the identifiable assets and liabilities:
Contingent liability of the acquiree bear during combination:
Other explanation:
(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 controlduring 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
134
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(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：
(2) Combination cost
In RMB
Combination cost
Notes to contingent consideration or other changes:
Other notes:
(3) The book value of the assets and liabilities of the combined party at combining date
In RMB
Combination date Last closing period
Notes to contingent consideration or other changes:
Other notes:
3. Counter purchase
Basic information of trading, the basis of transactions constitute counter purchase, the retain assets , liabilities of
the listed companies whether constituted a business and its basis, the determination of the combination costs, the
amount and calculation of adjusted rights and interests in accordance with the equity transaction process.
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
Notes to reasons for the changes in combination scope (Newly established subsidiary and subsidiary of liquidation)
and relevant information:
6.Other
IX. Equity in other entities
135
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1. Equity in subsidiary
(1) The structure of the enterprise group
Principal place Registered Nature of Shareholding ratio (%) Way of
Name of subsidiaries
of business place business Directly Indirectly acquisition
Medical Establishmen
Sino Great Wall Medical Investment Management Co., Ltd. Beijing Beijing investment 100 t
Investment
management,
import and Establishmen
Sino Great Wall Infrastructure Investment Co., Ltd. Beijing Beijing export 100 t
Wuhan Commercial Workers Hospital Co., Ltd. Wuhan Wuhan Health care 100 Acquisition
Sino Great Wall International Engineering Co., Ltd. Beijing Beijing Decoration 100 Acquisition
Sino Great Wall Jianyee Engineering Co., Ltd. (formerly known
as Sichuan Haoyao Constructional Engineering Co., Ltd.) Chengdu Chengdu Construction 60 Acquisition
Investment
and property
management;
economy and
trade Establishmen
Sino Great Wall (Beijing) Investment Fund Management Co., Ltd. Beijing Beijing consulting 100 t
Real estate Establishmen
Sino Great Wall Real Estate (Hubei) Co., Ltd. Wuhan Wuhan development 80 t
New energy Establishmen
Sino Great Wall New Energy (Beijing) Co., Ltd. Beijing Beijing technology 100 t
Solar
photovoltaic Establishmen
Qian'an Sino Solar Power Generation Co., Ltd. Qian'an Qian'an power station 100 t
Solar
photovoltaic
power Establishmen
Wu'an Juhe Photovoltaic Power Generation Co., Ltd. Wu'an Wu'an generation 100 t
Solar power Establishmen
Bozhou Guangcheng New Energy Co., Ltd. Bozhou Bozhou generation 100 t
Establishmen
Bozhou Zhaosheng Agricultural Technology Co., Ltd. Bozhou Bozhou Agriculture 100 t
Solar power Establishmen
Bozhou Xieying Solar Power Generation Co., Ltd. Bozhou Bozhou generation 100 t
Establishmen
Shanghai Ling Rui International Trade Company Limited Shanghai Shanghai Trade 100 t
Investment,
research and
development
and sales,
trade as well
as import and Establishmen
Shenzhen Hongtulve Industrial Co., Ltd. Shenzhen Shenzhen export 100 t
Design and Establishmen
Sino Great Wall Development (Hengqin) Co., Ltd. Zhuhai Hengqin construction 85 t
136
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
Principal place Registered Nature of Shareholding ratio (%) Way of
Name of subsidiaries
of business place business Directly Indirectly acquisition
Commercial
activities
The United The United allowed by Establishmen
SINO GREAT WALL (USA). INC States States law 100 t
Establishmen
Herabenna Interior Design Guangzhou Co., Ltd. Guangzhou Guangzhou Design 100 t
Mechanical
and electrical
engineering,
scientific
research,
trade and
investment Establishmen
Inrich Me Engineering Co., Limited Hong Kong Hong Kong consulting 100 t
Sino Great Wall Southwest Construction Engineering Co., Ltd.
(formerly known as Sichuan Dinghui Construction Co., Ltd.) Chengdu Chengdu Construction 100 Acquisition
Real estate or Establishmen
PT.SINO GREAT WALL INVESTMENT INDONESIA Indonesia Indonesia lease 99.9 t
Establishmen
PT.SINO GREAT WALL CONSTRUCTION INDONESIA Indonesia Indonesia Construction 67 t
SINO GREAT WALL INTERNETIONAL Design and Establishmen
ENGINEERING(CNMI)CO.,LLC Saipan Saipan construction 100 t
Design and
Shenzhen Yatian Decoration Design Engineering Co., Ltd. Shenzhen Shenzhen construction 100 Acquisition
Sino Great Wall International Engineering (MACAU) Co., Design and Establishmen
Limited Macao Macao construction 96 4 t
Construction,
design, trade
and
investment Establishmen
Sino Great Wall Group Co., Limited Hong Kong Hong Kong consulting 100 t
Design and Establishmen
SGW HP EngineeringConstructionSDN.BHD Malaysia Malaysia construction 100 t
Building
construction
and import
SINO GREAT WALL (PHILIPPINES) INTERNATIONAL and export Establishmen
CORPORITION Philippines Philippines trade 100 t
Design and Establishmen
Beijing Sino Great Wall Decoration Design Co., Ltd. Beijing Beijing consulting 100 t
Production Establishmen
Suzhou Lvbang Wood Technology Co., Ltd. Suzhou Suzhou and sales 100 t
Production Establishmen
Sino Heji Environmental Protection Materials Co., Ltd. Heji Heji and sales 80 t
SINO GREAT WALL INTERNETIONAL Design and Establishmen
ENGINEERING(MM)CO.,LTD Myanmar Myanmar construction 80 t
Establishmen
Sino Great Wall International Engineering (Thailand) Co., Ltd. Thailand Thailand 48.998 t
137
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
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:
(2) Significant not wholly owned subsidiary
In RMB
Profit or Loss Owned by Dividends Distributed to
Shareholding Ratio of Equity Balance of the
the Minority the Minority
Name of Subsidiary Minority Shareholders Minority Shareholders in
Shareholders in the Shareholders in the
(%) the End of the Period
Current Period Current Period
Holding proportion of minority shareholder in subsidiary different from voting proportion:
Other notes:
(3) The main financial information of significant not wholly owned subsidiary
In RMB
Year-end balance Year-beginning balance
Non Current Non Non Current Non
Name Current Total Total Current Total Total
current Liabilitie current current Liabilitie current
assets assets liabilities assets assets liabilities
assets s liabilities assets s liabilities
Amount of current period Amount of previous period
Cash flows Cash flows
Total Total
Name Business from Business from
Net profit Comprehensi Net profit Comprehensi
income operating income operating
ve income ve income
activities activities
Other notes:
(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
Other notes
2. The transaction of the Company with its owner’s equity share changed but still controlling the 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
In RMB
Other notes
138
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
3. Equity in joint venture arrangement or associated enterprise
(1) Significant joint venture arrangement or associated enterprise
Proportion Accounting
treatment of the
Main operating investment of
Name Registration place Business nature
place Directly Indirectly joint venture or
associated
enterprise
Notes to holding proportion of joint venture or associated enterprise different from voting proportion:
Basis of holding less than 20% of the voting rights but has a significant impact or holding 20% or more voting
rights but does not have a significant impact:
（2）Main financial information of Significant joint venture
In RMB
Amount of current period Amount of previous period
Other notes
(3) Main financial information of significant associated enterprise
In RMB
Amount of current period Amount of previous period
Other notes
(4) Summary financial information of insignificant joint venture or associated enterprise
In RMB
Amount of current period Amount of previous period
Joint venture: -- --
The total number of the following -- --
Associated enterprise： -- --
The total number of the following -- --
Other notes
In RMB
(5) Note to the significant restrictions of the ability of joint venture or associated enterprise transfer funds
to the Company
(6) The excess loss of joint venture or associated enterprise
In RMB
The cumulative recognized The derecognized losses or the The noncumulative
Name losses in previous share of net profit in reporting unrecognized losses in reporting
accumulatively derecognied period period
139
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
Other notes
(7) The unrecognized commitment related to joint venture investment
(8) Contingent liabilities related to joint venture or associated enterprise investment
4. Significant common operation
Main operating place Proportion/share portion
Name Registration place Business nature
Registration place Directly Indirectly
Note to holding proportion or share portion in common operation different from voting proportion:
Basis of common operation as a single entity, classify as common operation
Other notes
5. Equity of structure entity not including in the scope of consolidated financial statements
Related notes to structure entity not including in the scope of consolidated financial statements
6.Other
X. The risk related financial instruments
XI. The disclosure of the fair value
1. Closing fair value of assets and liabilities calculated by fair value
In RMB
Closing fair value
Items Fir value measurement Fiar value measurement Fiar value measurement
Total
items at level 1 items at level 2 items at level 3
II. Consistent fair value -- -- -- --
II. Inconsistent fair
-- -- -- --
valuemeasurement
2. Market price recognition basis for consistent and inconsistent fair value measurement items at level 1
3. Valuation technique adopted and nature and amount determination of important parameters for
consistent and inconsistent fair value measurement items at level 2
4. Valuation technique adopted and nature and amount determination of important parameters for
consistent and inconsistent fair value measurement items at level 3
5. Sensitiveness analysis on unobservable parameters and adjustment information between opening and
closing book value of consistent fair value measurement items at level 3
6. Explain the reason for conversion and the policy governing when the conversion happens if conversion
happens among consistent fair value measurement items at different levels
7. Changes in the valuation technique in the current period and the reason for change
8. Fair value of financial assets and liabilities not measured at fair value
9.Other
XII. Related party and related party transactions
1. Parent company information of the enterprise
Name Registered address Natrue Regisrated capital The parent company The parent company
140
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
of the Company's of the Company’s
shareholding ratio vote ratio
Notes
The finial control of the company was:
Other notes：
2. Subsidiaries of the Company
Situation of the enterprise subsidiaries refer to the Notes.
3. Information on the joint ventures and associated enterprises of the Company
The details of significant joint venture and associated enterprise of the Company
Information on other joint venture and associated enterprise of occurring related party transactions with the
Company in reporting period, or form balance due to related party transactions in previous period:
ious period:
Name Relationship
Other notes
4.Other Related parties information of the enterprise
Other Related parties name Relation of other Related parties with the company
Other notes
5. Related transactions.
（1）Related transactions on purchasing goods and receiving services
Acquisition of goods and reception of labor service
In RMB
Content of related Amount of current Amount of previous Over the trading limit
Related parties Amount of last period
transaction or not?
period period
Related transactions on sale goods and receiving services
In RMB
Related parties Content of related transaction Amount of current period Amount of previous period
Notes
（2）Related trusteeship or contracting
Related trusteeship or contracting in which the Company is the undertake
In RMB
Name of the Name of the Asset situation of Gains from the
Start date Terminating date Pricing basis
employer undertaker the undertaker deal in report
141
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
period
Notes
(3) Information of related lease
The company eas lessor:
In RMB
The lease income confirmed in The lease income confirmed in
Name of lessee Category of leased assets
this year last year
The Company was lessee：
In RMB
The lease income confirmed in
Lessor Category of leased assets Category of leased assets
this year
Notes
（4）Related guarantee condition
The Company as a guarantor
In RMB
Guarantor Amount Starting date Stop date If completed or not
The Company was secured party
In RMB
Have the
Amount of the Starting date of Maturity date of guarantee
Warrantor
guarantee the guarantee the guarantee been
performed?
Chen Lve and Sino Great Wall Co., Ltd. 150,000,000.00 March 21, 2016 March 21, 2017 No
Chen Lve, Sino Great Wall Co., Ltd. and
He Feiyan 150,000,000.00 July 19, 2016 July 19, 2017 No
September 28,
Chen Lve and Sino Great Wall Co., Ltd. 130,000,000.00 October 28, 2016 2017 No
Qinghai Heyi Mining Co., Ltd. March 10, 2016 March 9, 2017 No
Chen Lve 500,000,000.00 March 10, 2016 March 9, 2017 No
Chen Lve 12,000,000.00 January 13, 2016 January 13, 2018 No
Chen Lve 12,000,000.00 March 29, 2016 March 29, 2018 No
Chen Lve 12,000,000.00 March 27, 2016 March 27, 2018 No
Chen Lve, Sino Great Wall Co., Ltd. and
He Feiyan 140,000,000.00 July 12, 2016 July 12, 2017 No
Beijing Zhongguancun Sci-tech Financing
Guaranty Co., Ltd. And Chen Lve 230,000,000.00 February 22, 2016 March 22, 2018 No
February 11,
Chen Lve 11,000,000.00 February 11, 2015 2018 No
Chen Lve 11,000,000.00 July 30, 2015 July 30, 2018 No
142
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
Have the
Amount of the Starting date of Maturity date of guarantee
Warrantor
guarantee the guarantee the guarantee been
performed?
Sino Great Wall International Engineering
Co., Ltd., Chen Lve and He Feiyan 257,140,000.00 August 25, 2016 August 25, 2017 No
Sino Great Wall International Engineering
Co., Ltd. and Chen Lve 200,000,000.00 January 21, 2016 January 20, 2017 No
Chen Lve 50,000,000.00 July 29, 2016 January 28, 2017 No
Sino Great Wall International Engineering
Co., Ltd. and Chen Lve 200,000,000.00 June 21, 2016 June 20, 2017 No
Sino Great Wall International Engineering
Co., Ltd., Chen Lve and He Feiyan 100,000,000.00 August 22, 2016 August 22, 2017 No
September 29, September 28,
Chen Lve and He Feiyan 100,000,000.00 2016 2018 No
Chen Lve 400,000,000.00 June 28, 2016 June 28, 2018 No
Sino Great Wall International Engineering
Co., Ltd., Chen Lve and He Feiyan 200,000,000.00 April 19, 2016 April 18, 2018 No
December 15,
Chen Lve 10,000,000.00 2016 June 14, 2017 No
Sichuan Jinyu Financing Guaranty Co., February 16,
Ltd., Ye Meifu and Yang Qiuhua 8,000,000.00 February 17, 2016 2017 No
Sino Great Wall Co., Ltd. 400,000,000.00 June 28, 2016 June 27, 2017 No
Sino Great Wall Co., Ltd. 180,000,000.00 January 3, 2017 January 2, 2018 No
February 13,
Sino Great Wall Co., Ltd. 100,000,000.00 April 29, 2016 2017 No
Sino Great Wall International Engineering November 22, November 22,
Co., Ltd. and Chen Lve 500,000,000.00 2016 2017 No
Sino Great Wall International Engineering December 21, December 20,
Co., Ltd., Chen Lve and He Feiyan 300,000,000.00 2016 2017 No
December 20, December 19,
Sino Great Wall Co., Ltd. 250,000,000.00 2016 2017 No
Sino Great Wall Co., Ltd. 50,000,000.00 March 25, 2016 March 25, 2017 YES
Sino Great Wall International Engineering February 28,, February 28,
Co., Ltd., Chen Lve 70,000,000.00 2017 2018 No
Sino Great Wall International Engineering
Co., Ltd., Chen Lve 200,000,000.00 April 11,, 2017 March 31, 2018 No
Sino Great Wall International Engineering
Co., Ltd., Chen Lve 120,000,000.00 June 7, 2017 May 22, 2018 No
Sino Great Wall International Engineering Suptember 30,
Co., Ltd., Chen Lve 84,000,000.00 March 31, 2017 2019 No
Sino Great Wall International Engineering
Co., Ltd., Chen Lve 40,000,000.00 June 23, 2017 June 22, 2018 No
Sino Great Wall International Engineering
Co., Ltd., Chen Lve and He Feiyan 97,000,000.00 February 21,2017 Augest 22, 2017 No
Sino Great Wall International Engineering Octomber 31, Octomber 31,
Co., Ltd., Chen Lve and Li Erlong 200,000,000.00 2017 2018 No
143
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
Have the
Amount of the Starting date of Maturity date of guarantee
Warrantor
guarantee the guarantee the guarantee been
performed?
Chen Lve, Sino Great Wall Co., Ltd. and Li
Erlong 50,000,000.00 May 27, 2017 May 26, 2018 No
Chen Lve, Sino Great Wall Co., Ltd. 80,000,000.00 April 17, 2017 April 17, 2018 No
Chen Lve, Sino Great Wall Co., Ltd. and
He Feiyan 300,000,000.00 May 10, 2017 May 10, 2020 No
Chen Lve, Sino Great Wall Co., Ltd. and
He Feiyan 200,000,000.00 January 13, 2017 January 12, 2018 No
Chen Lve, Sino Great Wall Co., Ltd. and
He Feiyan 300,000,000.00 January 13, 2017 January 12, 2018 No
Chen Lve, Sino Great Wall Co., Ltd. and
He Feiyan 100,000,000.00 June 28, 2017 June 27, 2018 No
(5) Inter-bank lending of capital of related parties：
In RMB
Amount borrowed and
Related party Initial date Due date Notes
loaned
Borrowed
Loaned
(6) Related party asset transfer and debt restructuring
In RMB
Related party Amount borrowed and loaned
Amount of current period Amount of previous period
(7) Rewards for the key management personnel
In RMB
Items Amount of current period Amount of previous period
Rewards for the key management
911,750 885,300
personnel
（8）Other related party transactions
6.Payables and receivables of the related party
（1）Receivable
In RMB
Amount at year end Amount at year beginning
Name Related party
Balance of Book Bad debt Provision Balance of Book Bad debt Provision
144
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
（2）Payables
In RMB
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
5.Other
XIV. Commitments
1.Importance commitment events
Important commitments of existence of balance sheet date
145
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
2. Contingency
(1) Significant contingency at balance sheet date
(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
In RMB
Influence number to the
Reason of unable to estimate
Items Content financial position and operating
influence number
results
2. Profit distribution
3. Sales return
4.Notes of ohter significant events
XVI. Other signifiant enents
1.The accounting errors correction in previous period
（1）Retrospective restatement
In RMB
Name of the influenced report
Content Processing program Cumulative impact
items during comparison period
（2）Prospective application
Content Processing program Reason of adopting prospective application
146
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
2. Debt restructuring
3. Replacement of assets
（1）Non-monetary assets exchange
（2）Other assets replacement
4. Pension plan
5.Discontinuing operation
In RMB
Termination of
the business
profits
Items Income Expense Total profits Income tax Net profit
attributable of the
parent company
owner
Other notes
6. Segment information
(1) Recognition basis and accounting policies of reportable segment
(2) The financial information of reportable segment
In RMB
Items Offset during segments Total
(3) There was no reportable segment, or the total amount of assets and liabilities of each part of reportable
segment, shall disclose the reason.
（4）Other notes
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.Classification accojunt receivables.
In RMB
Amount in year-end Amount in year-beginning
Classification
Book Balance Bad debt provision Book Book Balance Bad debt provision Book value
147
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
Amount Proportio Amount Amount value Amount Proporti Amount Proportion(
n(%) on(%) %)
Account receivables
provided bad debt
0.00 0.00 0.00 6,680.00 100.00% 334.00 5.00% 6,346.00
provision in credit
risk groups
Ttotal 0.00 0.00% 0.00 0.00% 6,680.00 100.00% 334.00 6,346.00
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 RMB334.00.
Significant amount of reversed or recovered bad debt profision：
In RMB
Name Amount Method
Shenzhen Kwai Chung family building rent 334.00 Customer return
Total 334.00 --
(3) Particulars of the actual verification of accounts receivable during the reporting period
In RMB
Items Amount
Of which: significant actual verification of accounts receivable：
In RMB
Whether occurredc
Name Nature Amount Reason Procedure bacause of related
party transaction
Notes：
(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
148
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
(6) The amount of the assets and liabilities formed by the transfer and the continues involvement of account
receivable.
Other notes：
2.Other receivable
1．Category of Other receivable
In RMB
Amount in year-end Amount in year-beginng
Book Balance Bad debt provision Book Balance Bad debt provision
Classification Book
Amount Proportio Amount Proportio Amount Proportio Amount Proportion( Book value
value
n(%) n(%) n(%) %)
Other account
receivables 1,672,9
2,419,687,6 725,631. 2,418,962 782,721.3 1,672,200,0
provided bad debt 100.00% 0.03% 82,763. 100.00% 0.05%
43.19 46 ,011.73 1 41.98
provision in credit 29
risk groups
1,672,9
2,419,687,6 725,631. 2,418,962 782,721.3 1,672,200,0
Ttotal 100.00% 0.03% 82,763. 100.00% 0.05%
43.19 46 ,011.73 1 41.98
29
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：
□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 5
7,089.85.
Where the current bad debts back or recover significant amounts:
In RMB
Name Amount Method
Xu Ce 55,450.12 Employee return loan
Wang Lin 1,639.73 Employee return loan
Total 57,089.85 --
149
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
（3）Particulars of the actual verification of other accounts receivable during the reporting period.
In RMB
Items Amount
Of which : Significant actual verification of other account receivable：
In RMB
Whether occurred
Name Nature Amount Reason Procedure because of related
party transactions
Notes：
（4）Other account receivable classified by account nature
In RMB
Nature Closing book value Opening book value
Current account 2,333,637,893.28 1,657,328,337.13
Petty cash 5,667,408.88 1,272,085.13
Deposit 80,382,341.03 14,382,341.03
Other
Total 2,419,687,643.19 1,672,982,763.29
(5) The top five other account receivable classified by debtor at period end
In RMB
Name Nature Closing balance Aging Proportion %
Sino Great Wall
Account current 2,163,019,166.37 Within 1 year 89.50%
International
Engineering Co., Ltd.,
Wuhan Commercial and
Vocational Account current 107,800,000.00 1-2 years 4.46%
Hospital Co.,Ltd,
Fuping hi tech Industrial
Within 1 year
Development Zone Deposit 50,000,000.00 2.07%
Management Committee
Beijing Hongda
Within 1 year
Construction Service Account current 45,000,000.00 1.86%
Co., Ltd.
Zhongshan
Within 1 year
Economic Development Deposit 10,000,000.00 0.41%
Zone Finance Bureau
150
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
Total -- 2,375,819,166.37 -- 98.31%
(6) Accounts receivable involved with government subsidies
In RMB
Estimated received time,
Name of units Project of government Closing balance Closing age
amount and basis
(7) Other account receivable which terminate the recognition owning to the transfer of the financial assets
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other
accounts receivable
Other Notes：
3.Long-term equity investment
In RMB
Year-end balance Year-beginning balance
Items Bad debt Bad debt
Book balance Book value Book balance Book value
provision provision
Investment to the
3,181,451,536.66 0.00 3,181,451,536.66 3,176,451,536.66 0.00 3,176,451,536.66
subsidiary
Total 3,181,451,536.66 3,181,451,536.66 3,176,451,536.66 3,176,451,536.66
（1）Investment to the subsidiary
In RMB
Withdrawn
Closing balance
impairment
Name Opening balance Increase Decrease Closing balance of impairment
provision in the
provision
reporting period
Sino Great Wall
International 3,079,451,536.66 0.00 0.00 3,079,451,536.66 0.00 0.00
Engineering Co.,
Ltd.,
Wuhan Commerci
al and Vocational 97,000,000.00 0.00 0.00 97,000,000.00 0.00 0.00
Hospital Co.,Ltd,
Sino Great Wall
Medical
Investment 0.00 5,000,000.00 0.00 5,000,000.00 0.00 0.00
Management Co.,
Ltd.
151
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
Total 3,176,451,536.66 5,000,000.00 0.00 3,181,451,536.66 0.00
（2）Investment to joint ventures and associated enterprises
In RMB
Increase /decrease in reporting period
Closing
Adjustme
Withdraw balance
Decrease Gain/loss nt of Declarati
Opening Add Other n Closing of
Name d of other on of cash
balance investmen equity impairme Other balance impairme
investmen Investme comprehe dividends
t changes nt nt
t nt nsive or profit
provision provision
income
I. Joint ventures
II. Associated enterprises
（3）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 0.00 0.00
Other operations 111,018.01 1,482.50 115,940.34 0.00
Total 111,018.01 1,482.50 115,940.34 0.00
Other notes：
5.Investment income
In RMB
Items Amount of current period Amount of previous period
152
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
6.Other
XVIII. Supplementary Information
1.Current non-recurring gains/losses
√ Applicable □Not applicable
In RMB
Items Amount Notes
Government grants included in current
profits and losses (except for government
grants closely related to the enterprise 60,363.52
business, obtained by quota or quantity at
unified state standards)
Other non-operating income and expenditure
4,291,138.93
except for the above items
Less: Influenced amount of income tax 647,888.58
Total 3,703,613.87 --
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
Return on net assets .
Profit of the report period
Weighted（%）
Basic earnings per share Diluted gains per share
Net profit attributable to the Common stock
14.39% 0.16 0.16
shareholders of Company.
Net profit attributable to the Common stock
shareholders of Company after deducting of 14.19% 0.16 0.16
non-recurring gain/loss.
3. 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
(2) Differences between the net profit and net asset in the financial reports prepared under IAS and Chinese
153
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
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
154
Sino Great Wall Co., Ltd. The Semi-annual Report 2017
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.
Legal representative: Chen Lue
Sino Great Wall Co., Ltd.
August 12, 2017
155
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