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神州长城(000018)公告正文

神州B:2016年第一季度报告全文(英文版)

公告日期:2016-04-30

Sino Great Wall Co., Ltd.                                     The First Quarterly Report 2016




                            Sino Great Wall Co., Ltd.

                            The First Quarterly Report 2016




                                     April 2016




                                           1
Sino Great Wall Co., Ltd.                                                          The First Quarterly Report 2016




                                              1 Important Notice


The Board of Directors ,Supervisory Committee, all directors, supervisors and senior executives of the Company
hereby guarantees that there are no misstatement, misleading representation or important omissions in this report
and shall assume joint and several liability for the authenticity, accuracy and completeness of the contents hereof.


All the directors attended the board meeting for reviewing the Quarterly Report.


Mr.Chen Lue, Person in charge of the Company, Mr. Cui Hongli, Chief financial officer and the Mr. Cui Hongli,
the person in charge of the accounting department (the person in charge of the accounting )hereby confirm the
authenticity and completeness of the financial report enclosed in this Quarterly Report .




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Sino Great Wall Co., Ltd.                                                                  The First Quarterly Report 2016




                  II. Main financial data and changes of shareholders

I.Main financial data and financial index

Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed
and accounting error correction or not.
□ Yes   √ No
                                                                                                      Changes of this period
                                                  This period            Same period of last year    over same period of last
                                                                                                           year(%)

 Operating income(RMB)                             924,667,155.55               825,262,582.68                      12.05%

 Net profit attributable to the shareholders
                                                      76,587,282.98                47,877,449.11                      59.97%
 of the listed company(RMB)

 Net profit after deducting of
 non-recurring gain/loss attributable to
                                                      76,587,282.98                47,877,449.11                      59.97%
 the shareholders of listed company
 (RMB)

 Cash flow generated by business
                                                    -318,972,753.01              -116,108,845.35                    -174.72%
 operation, net(RMB)

 Basic earning per share(RMB/Share)                             0.1714                     0.1071                     60.04%

 Diluted gains per
                                                                0.1714                     0.1071                     60.04%
 share(RMB/Share)(RMB/Share)

 Weighted average return on equity
                                                                5.63%                      3.73%                        1.90%
 (%)
                                                                                                         Changes of this
                                               End of this period           End of last period        period-end over same
                                                                                                    period-end of last year(%)

 Gross assets(RMB)                               4,487,124,027.81             4,017,462,824.63                      11.69%

 Net assets attributable to the
 shareholders of the listed company                1,361,402,634.98             1,282,256,738.74                        6.17%
 (RMB)

Items and amount of non-current gains and losses
□ Applicable √ Not applicable
No such cases in the Reporting Period




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Sino Great Wall Co., Ltd.                                                                     The First Quarterly Report 2016


II. Total Shareholders and Shares Held by Top Ten Shareholders at the End of the Reporting
Period

1. About Total Common Shareholders, Total Preference Shareholders with the Voting Power Recovered
and the Shares Held by Top Ten Common Shareholders

                                                                                                                           In shares
                                                                     Total preference
                                                                     shareholders with the voting
 Total number of common
                                                          26,580     power recovered at the end                                     0
 shareholders at the period-end
                                                                     of the reporting period(if
                                                                     any)

                                             Shares held by the top 10 shareholders

                                                                                        Amount of            Pledging or freezing
                                                         Share                           tradable
                                     Properties of
        Shareholder name                               proportio       Quantity         shares with        Status of
                                     shareholder                                                                         Quantity
                                                          n%                            Conditional       the shares

                                                                                           held
                                  Domestic Natural
 Chen Lue                                                 34.33%     153,406,462        153,186,762       Mortgage      113,621,209
                                  person

                                  Domestic Non-
 Union Holdings Co., Ltd.         State-owned legal        9.03%      40,341,032                      0
                                  person

                                  Foreign legal
 STYLE-SUCCESS LIMITED                                     5.47%      24,466,029                      0
                                  person

 Shanghai Financial               Domestic Non-
 Development Investment           State-owned legal        4.49%      20,079,080         20,079,080
 Fund(LP)                         person

                                  Domestic Natural
 He Feiyan                                                 3.23%      14,421,173         14,421,173
                                  person

 Jiutai Fund-Bank of
 Communications-Jiutai
 Huitong No.2 specific            Other                    2.50%      11,178,861         11,178,861
 customer asset management
 plan

                                  Domestic Non-
 Wuxi Hengtai Jiuding Assets
                                  State-owned legal        2.26%      10,087,004         10,087,004
 Management Centre(LP)
                                  person

 Foshan Haihui Heying             Domestic Non-
 Venture Imvestment               State-owned legal        2.25%      10,039,540         10,039,540
 Partnership(Limited              person


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Sino Great Wall Co., Ltd.                                                                      The First Quarterly Report 2016


 Partnership)

                                    Domestic Non-
 Jiangxi Taihao Venture
                                    State-owned legal         1.87%       8,366,284        8,366,284
 Investment Centre(LP)
                                    person

 Yantai ZhaoxuanYuantai             Domestic Non-
  Jiuding Venture Investment        State-owned legal         1.87%       8,353,354        8,353,354
  Centre(LP)                        person

                                    Shares held by the Top 10 Shareholders of Non-restricted shares

                                                  Number of the non-restricted shares                      Share type
             Shareholders’ Names
                                                                  held                         Share type               Quantity
                                                                                          RMB Common
 Union Holdings Co., Ltd.                                                   40,341,032                                    40,341,032
                                                                                          shares

                                                                                          Foreign shares
 STYLE-SUCCESS LIMITED                                                      24,466,029    placed in domestic              24,466,029
                                                                                          exchange

                                                                                          Foreign shares
 Rich Crown Investment Co., Ltd.                                             6,114,556    placed in domestic               6,114,556
                                                                                          exchange

                                                                                          RMB Common
 Union Development Group Co., Ltd.                                           4,011,389                                     4,011,389
                                                                                          shares

 Liuzhou Jiali Real estate Development                                                    RMB Common
                                                                             3,600,000                                     3,600,000
 Co., ltd.                                                                                shares

 Shanghai PanHou Investment
                                                                                          RMB Common
 Management Co., Ltd.-Panhou                                                1,800,000                                     1,800,000
                                                                                          shares
 momentum-Haofu No.1 Fund

                                                                                          Foreign shares
 Zeng Ying                                                                   1,720,000    placed in domestic               1,720,000
                                                                                          exchange

 ICBC-Morgan smart Internet stock                                                        RMB Common
                                                                             1,379,903                                     1,379,903
 securities investment fund                                                               shares

                                                                                          Foreign shares
 KGI ASIA LIMITED                                                            1,370,060    placed in domestic               1,370,060
                                                                                          exchange

                                                                                          Foreign shares
 China Galaxy International Securities
                                                                               963,113    placed in domestic                963,113
 (HK) Co., Ltd.
                                                                                          exchange

                                                 Chen Lue and He Yanfei are consortium officers; Wuxi Hengtai Jiuding Assets
 Explanation on associated relationship or       Management Centre (LP)and Yantai Zhaoxuan Yuantai Jiuding Venture
 concerted action of the above shareholders      Investment Centre(LP)are consortium officers;Union Development Group Ltd. is
                                                 the controlling shareholder of the above-mentioned shareholder Shenzhen Union


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Sino Great Wall Co., Ltd.                                                                      The First Quarterly Report 2016


                                               Holdings Ltd. and third shareholder Rich Crown Investment Co., Ltd. The other
                                               tradable shareholders neither knew whether there exists associated relationship
                                               between them.

 Note to the top 10 common stockholders        Among the shareholders above, Liuzhou Jiali Real estate Development Co., ltd.
 involved in margin financing & securities     holds 3,600,000 shares of the Company through stock account with credit

 lending (If any)                              transaction and guarantee of Guohai Securities Co., Ltd.

Agreed re-purchasing by the Company’s top 10 shareholders of common shares and top 10 shareholders of
unconditional common shares in the report period
□ Yes √ No
No agreed re-purchasing is performed by the Company’s shareholders in the report period.

2.Total number of preferred shareholders and shareholding of top 10 preferred shareholders by the end of the
report period

□ Applicable√ Not applicable


                                             III Significant Events

I. Major changes of main accounting statement items and financial indicators in the reporting
period, as well as reasons for the changes

√ Applicable □ Not applicable

        Items                 End of term          Beginning of term      Scale of change               Remarks on the change

                                                                                               Caused by the increase of
Short-term loans                  673,408,496.07       225,408,496.07               198.75% short-term bank loan in this
                                                                                               period

                                                                                               Caused by returning the
Other account
                                  401,331,304.86       635,200,976.60                -36.82% inter-banking lending fund to the
Payable
                                                                                               affiliated party

                                                                                               Caused by the increase of
Long -term loans                  145,669,124.50        30,140,649.14                 383.3%
                                                                                               long-term bank loan in this period

                                                                                               Caused by the increase of
                                                                                               overseas branches, overseas
Administrative
                                   42,252,271.83        29,832,508.95                 41.63% groups, photovoltatic, medical
expense
                                                                                               and other department in this
                                                                                               period

                                                                                               Caused by the increase of
Financial expenses                 14,979,885.12         6,352,212.68               135.82% short-term loan, long-term loan
                                                                                               and overseas L/C.

Asset impairment                   29,750,485.54        13,205,214.65               125.29% Caused by the increased of bad


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Sino Great Wall Co., Ltd.                                                                       The First Quarterly Report 2016


loss                                                                                            debts reserve in the company

                                                                                                The overseas income increased, and
Net profit                                                                                      the gross profit of overseas business is
attributable to the                                                                             higher than that at home; its
                                     76,587,282.98           47,877,449.11             59.97%
shareholders of the                                                                             wholly-owned subsidiary was
Parent company                                                                                  honored as new hi-tech company in
                                                                                                2015, and the income tax rate reduced.

Net Cash flow                                                                                   Mainly caused by the short credit
generated by                        -318,972,753.01         -116,108,845.35          -174.72% account period of suppliers of
business operation                                                                              overseas projects

Net cash flow                                                                                   Caused by the increase of
generated by                                       0          -6,710,715.18          -100.00% investment at the end of this report
investment                                                                                      period

Net cash flow
                                                                                                Caused by increase of short-term and
generated by                        406,096,087.93           82,619,950.02           391.52%
                                                                                                long-term loans.
financing


II. The progress of significant events and influence, as well as the analysis and explanation on
resolving proposal.

□ Applicable √ Not applicable


III. Commitments finished in implementation by the Company, shareholders, actual
controller, acquirer, directors, supervisors, senior executives or other related parties in the
reporting period and commitments unfinished in implementation at the end of the reporting
period

√Applicable □Not applicable

                                                                                                                      Period
                                                                                                         Time of                Fulfi
                       Commitment                                                                                       of
  Commitment                                Type                          Contents                       making                 llme
                            maker                                                                                     comm
                                                                                                     commitment                   nt
                                                                                                                      itment

 Commitment
 on share             No                    No         No                                                             No        No
 reform

 Commitment
 in the
 acquisition
                      No                    No         No                                                             No        No
 report or the
 report on
 equity changes



                                                                      7
Sino Great Wall Co., Ltd.                                                                 The First Quarterly Report 2016


                                          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                                                                                                  36
                   Chen Lue, He   Share   after the transaction has been completed, the         March                  perfo
 in assets                                                                                                    month
                   Feiyan         lock    lock-up periods of my shares of Victor                19,2015                rmin
 reorganization                                                                                               s
                                                                                                                       g
                                          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
                                          investigated by judicial authorities or China
                                          Securities Regulatory Commission due to
                                          false record, misleading statement or major
                                          omission of the information provided or
                                          disclosed, I will not transfer my shares of the
                                          company before the conclusion of the case has
                                          been made clear.
                                          After the above-mentioned lock-up periods, I
                                          will sell or transfer the new shares of the


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Sino Great Wall Co., Ltd.                                                               The First Quarterly Report 2016


                                       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
                                                                                                            36
                              Share    to the public transfer through the stock market      March                     perf
                   Chen Lue                                                                                 month
                              lock     or by agreement, within 36 months from the           19,2015                   orm
                                                                                                            s
                                                                                                                      ing
                                       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,
                              There
                                       etc. and try our best to avoid fund intercourse                               Strict
                              is no
                                       with listed companies or Sino Great Wall,            September1      Long-    perfo
                   Chen Lue   funds
                                       which has nothing to do with normal                    9,2015        term     rmin
                              occup
                                       operations. If Sino Great Wall got penalized                                  g
                              ied
                                       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                                 Strict
                              comp     Sino Great Wall and it’s son subsidiaries,          March           Long-    perfo
                   Chen Lue
                              ensati   subsidiaries, haven’t rental registration, I        19,2015         term     rmin
                              on                                                                                     g
                                       promise, if Sino Great Wall and its son


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Sino Great Wall Co., Ltd.                                                                The First Quarterly Report 2016


                                       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 existed in the Libo project, I
                              Cash                                                                                    Strict
                                       promise as follows: if Sino Great Wall got
                              comp                                                            March          Long-    perfo
                   Chen Lue            penalized         by    government    administration
                              ensati                                                          19,2015        term     rmin
                                       departments or suffered any economic loss
                              on                                                                                      g
                                       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
                              Cash     Sino Great Wall needs to pay caused by the                                     Strict
                              comp     final results of ligation and arbitration cases,       March          Long-    perfo
                   Chen Lue
                              ensati   exceed the amount of liabilities which                 19,2015        term     rmin
                              on                                                                                      g
                                       recognized in the “Audit Report” made for
                                       Sino Great Wall by Ruihua CPA (Special
                                       Ordinary Partnership) on the basis of the audit
                                       base day of July 31st, 2014, I promise to bear
                                       the balance by cash unconditionally so as to
                                       guarantee the parent-subsidiaries of Sino


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                                       Great Wall won’t suffer any loss.

                                       2. This commitment letter is irrevocable.

                                       1. On condition that ownership defect exists
                                       in the lease of house property of
                                       parent-subsidiary companies of Sino Great
                                       Wall and its subsidiary corporation, which
                                       resulted in inability for parent-subsidiary
                                       companies of Sino Great Wall and its
                                       subsidiary corporation to continue leasing this
                                       house property but having to relocate, or
                                       parent-subsidiary companies of Sino Great
                                       Wall and its subsidiary corporation can’t
                                       timely find suitable workplace for lawful
                                       operation in related area, I will undertake to
                              Cash     compensate by cash for parent-subsidiary                                      Strict
                              comp     companies of Sino Great Wall’s losses which         March           Long-    perfo
                   Chen Lue
                              ensati   are caused by operation and finance due to the       19,2015         term     rmin
                              on       above-mentioned matters.                                                      g
                                       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 ,
                              Cash                                                                                   Strict
                                       including the competent authorities’
                              comp                                                          March           Long-    perfo
                   Chen Lue            requirement for Sino Great Wall or its
                              ensati                                                        19,2015         term     rmin
                                       subsidiary to make supplementary payment,
                              on                                                                                     g
                                       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


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                                       suffering from any loss    ”

                                       “At present, Suzhou Lvbang has possessed
                                       one state-own land use right, of which the
                                       land certificate is Suzhou Guo Yong(2014)
                                       No.Y2014086”, locates in Danan Village,
                                       Dadian Town, Yongqiao District, Suzhou City
                                       with 32,966 square meters of area and the
                                       purpose for industry. Suzhou Lvbang
                                       possesses its own factory with 9,843.87
                                       square meters of area above-mentioned,
                                       which is the building reserved on the former
                                       selling land. Suzhou Lvbang is carrying out
                                       refurnishing and reconstruction for this
                                       factory and has acquired “License of
                                       Construction Land Planning ”with
                                       No.2014-08-001 approved and issued by
                              Cash     Yongqiao District, Suzhou City’s housing and                                 Strict
                              comp     rural construction bureau, of which other            March           Long-    perfo
                   Chen Lue
                              ensati   examination and approval procedures of               19,2015         term     rmin
                              on       construction are in the process of handling                                   g
                                       “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
                              Cash     Asset”(hereinafter referred to as                                            Strict
                              comp     “Agreement”) signed among Victor Onward            March           Long-    perfo
                   Chen Lue
                              ensati   Holdings, all shareholders of Sino Great Wall        19,2015         term     rmin
                              on       and Union Development Group Co., Ltd                                          g
                                       (hereinafter referred to as“ Union Group”) on
                                       October 13, 2014, all the creditor’s rights and



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                                              liabilities related to place-out asset before the
                                              delivery date of Victor Onward Holdings shall
                                              be Union Group’s responsibility to carry out
                                              solution; After the asset delivery date, if any
                                              losses occur to Victor Onward Holdings in
                                              reason of the liability transfer of asset
                                              delivery, personnel placement, unsettled
                                              dispute or controversy and other
                                              compensation related to place-out asset,
                                              payment obligation and punishment, Union
                                              Group or the specified third party shall
                                              sufficiently compensate all losses for Victor
                                              Onward Holdings for the above matters.
                                              I undertake, if Union Group and the specified
                                              third party refuse to compensate the losses
                                              caused by the above mentioned matters for
                                              Victor Onward Holdings according to
                                              the“ Agreement”, I will compensate by cash
                                              for the Victor Onward Company within 5
                                              working day in advance. Meanwhile, I will
                                              reserve the resource rights for Union Group
                                              and the specified third party.

                                              According to“ Agreement of Shenzhen
                                              Victor Onward Textile Industrial Co., Ltd.,
                                              Chen 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 losses and attributable
                                     Perfor                                                                                  Strict
                   Chen Lue, He               to the parent companies’ owners after audition
                                     mance                                                          May 11,         Long-    perfo
                   Feiyan                     of 2015, 2016 and 2017 shall be respectively
                                     comm                                                           2015            term     rmin
                                              more than RMB 345.8 million, RMB 438.5
                                     itment                                                                                  g
                                              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.

                   Chen Lue; He      Indep    1. This reorganization is planned to place in                                  Strict
                   Feiyan, Wuxi      enden    asset. At present, complete separation has            September3      Long-    perfo
                   Hengtai Jiuding   ce,      existed between me or other enterprises under           0,2015        term     rmin
                   Assets            comp     my possession (if any) and the listed company                                  g



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Sino Great Wall Co., Ltd.                                                                       The First Quarterly Report 2016


                   Management         etition   in staff, asset, finance, institution and business
                   Centre             in the    of Sino Great Wall. Independence exists in
                   (LP);Yantai      same      both staff, asset, finance, institution and
                   Zhaoxuan Yuantai   indust    business and no confusion exists.
                   Jiuding Venture    ry        2. I undertake, after this reorganization, to
                   Investment                   ensure the continued complete separation
                   Centre                       between me or other enterprises under my
                   (LP);Suzhou                possession(if any) and the listed company in
                   Taiyao                       staff, asset, finance, institution and business,
                   Zhongshan                    sustaining the independence in the listed
                   Jiuding                      company’s staff, asset, finance, institution and
                   Investment                   business, as follows:
                   Centre                       (1).The Ensurance of Independence for Listed
                   (LP);Jiaxing               Company’s Personnel
                   Jiahe Jiuding
                                                Ensure that the general manager, the
                   Investment
                                                vice-general manger, the chief financial
                   Centre(LP)
                                                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


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                            calculating system set up by the listed
                            company, which possess normative and
                            independent financial and accounting rules.
                            2. Ensure that the listed company
                            independently opens a bank account, not
                            sharing the same bank account with me.
                            3.Ensure that the financial staff of the listed
                            company holds no part-time post in my
                            enterprise and other enterprises under my
                            possession.
                            4. Ensure that the listed company pays taxes
                            according to law.
                            5. Ensure that the listed company makes the
                            financial decision-making independently, I
                            will not intervene the utilization 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.

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                                              4. Ensure to reduce the related transaction
                                              between me and the listed company or
                                              between other enterprises under my
                                              possession and the listed company as much as
                                              possible; When confirming necessary but
                                              unavoidable related transaction, I will ensure
                                              the fair operation according to the principle of
                                              market culture and the fair price, and fulfill
                                              the transaction procedures and the obligation
                                              of disclosing information according to
                                              relevant laws and regulations and normative
                                              document.

                   Wuxi Hengtai
                   Jiuding Assets
                   Management
                                              “Once I or our unit acquire the newly-added
                   Centre(LP);
                                              share of Victor Onward Company           through
                   Yantai Zhaoxuan
                                              this transaction, no transfers will occur in any
                   Yuantai Jiuding
                                              way within 12 months from the listing date,
                   Venture
                                              including but not limited to public transfer by
                   Investment
                                              securities market or transfer by agreement,                                     Strict
                   Centre                                                                                            12
                                     Share    and no entrusting for others to manage my              March                    perfo
                   (LP);Suzhou                                                                                     month
                                     lock     holding share of Victor Onward Holdings .              19,2015                  rmin
                   Tianyao                                                                                           s
                                              Once the above-mentioned lockup period                                          g
                   Zhongshan
                                              expires, I will implement the selling or
                   Jiuding
                                              transferring of the newly-added share of
                   Investment
                                              Victor Onward Holdings according to the
                   Centre(LP);
                                              relevant provision of CSRC and SZSE.
                   Jiaxing Jiahe
                   Jiuding
                   Investment
                   Centre(LP)

                   Wuxi Hengtai
                                              “1.Before this reorganization, the fairness and
                   Jiuding Assets
                                              reasonableness of pricing and the legitimacy
                   Management
                                              and effectiveness of decision-making
                   Centre(LP);
                                              procedure exist in the transaction(if any)
                   Yantai Zhaoxuan
                                     Relate   between me or the enterprise under my                                           Strict
                   Yuantai Jiuding
                                     d        possession(if any) and Sino Great Wall which           March           Long-    perfo
                   Venture
                                     transa   is planned to place asset in, no related               19,2015         term     rmin
                   Investment
                                     ctions   transaction with obvious unfairness exists ;                                    g
                   Centre
                                               2.After this reorganization, I or the
                   (LP);Suzhou
                                              enterprise under my possession will avoid and
                   Tianyao
                                              reduce the related transaction with listed
                   Zhongshan
                                              company as much as possible. As for any
                   Jiuding

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                   Investment                 unavoidable or reasonable related transaction,
                   Centre(LP);              I or the enterprise under my possession will
                   Jiaxing Jiahe              sign the agreement according to laws and
                   Jiuding                    fulfill the lawful procedure, and fulfill
                   Investment                 relevant approval procedure for internal
                   Centre(LP)               decision-making and timely fulfill the
                                              obligation of disclosing information according
                                              to law, following relevant laws, regulations,
                                              other normative documents and articles of
                                              listed company, which is to guarantee the
                                              fairness and reasonableness in related
                                              transaction pricing, to guarantee the fairness
                                              of transaction condition and to guarantee not
                                              to utilize the related transaction to illegally
                                              transfer the capital and profit of listed
                                              company, and not to utilize this transaction to
                                              engage in any behaviors which will cause any
                                              losses to listed company or other
                                              shareholder’s legitimate rights. Once I violate
                                              the above promises and cause losses to the
                                              listed company, I will compensate the listed
                                              company for the losses caused by the this
                                              matter.

                                              During the assets reorganization, the house
                                              property and land without property certificate
                                              in 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
                                     Incom                                                                                   Strict
                   Union                      Nanshan District have not been recorded in
                                     e                                                              March           Long-    perfo
                   Development                the assessment. Therefore, Union Group
                                     dispos                                                         19,2015         term     rmin
                   Group Co., Ltd.            promises that after the reorganization, if
                                     al                                                                                      g
                                              Union or a third party appointed by Union
                                              receives compensations or incomes related to
                                              above-mentioned disposed assets which are
                                              house property and land without property
                                              certificate as well as regaining of plots
                                              planned as schools, Union will return the
                                              benefits to Victor Onward Holdings, in 10
                                              working days since the collection. The actual
                                              costs and fees during the possession of the


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                                              house property and land and the paid as well
                                              as the unpaid but necessary costs and fees for
                                              the reception of the above-mentioned benefits
                                              for Union Group or its third party will be
                                              deducted from the income. The specific
                                              benefits and payable costs and fees should be
                                              confirmed jointly by Union Group and Victor
                                              Onward Holdings based on the actual
                                              situations. (Notes:On June 25, 2015,All
                                              shareholders of Victor Onward Holdings,
                                              Union Group and Sino Great Wall Signed
                                              supplementary agreement, and specified that
                                              the land and houses without ownership
                                              certificate of Victor Onward Holdings located
                                              at the factory area of Kuixin community of
                                              Kuichong Street office of Longgang District
                                              (the land area is about 50,000 square meters,
                                              the built-up area of houses is about 25,000
                                              square meters, among them about 18,000
                                              square meters of buildings at built-up area are
                                              within the plan of removal and collection of
                                              government,hereinafter referred as
                                              “undocumented property) still belongs to
                                              Victor Onward Holdings. And the benefits and
                                              risks of the real estate without certificate are
                                              enjoyed and assumed by Victor Onward
                                              Holdings.

                                              According to the Term 5.5.3 of Agreement on

                                              Major Asset Replacement and Asset Purchase

                                              Through Issuing Shares (hereinafter referred

                                              to as Agreement) signed on October 13, 2014

                                              by the company and all shareholders of Victor
                                     Cash                                                                                     Strict
                   Union                      Onward Co. Ltd.. and Sino Great Wall, Victor
                                     comp                                                            March           Long-    perfo
                   Development                Onward Holdings should obtain the letter of
                                     ensati                                                          19,2015         term     rmin
                   Group Co., Ltd.
                                     on       approval concerning the transferred debts of                                    g

                                              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


                                                               18
Sino Great Wall Co., Ltd.                                                    The First Quarterly Report 2016


                            consent, the company or the third party

                            appointed by the company is in charge of

                            paying off debts or reaching agreement on the

                            solution with the creditor. When there are

                            losses caused by improper solutions of the

                            company or the third party appointed by the

                            company, the company or the third party

                            appointed    by     the   company       will   fully

                            compensate for the caused losses of Victor

                            Onward Holdings in 5 working days after

                            receiving the notice.

                            According to the Term 5.5.4 of Agreement,

                            after the date of assets delivery, any

                            compensations, obligations of payment and

                            penalties caused by disposed assets as well as

                            unsettled disputes in Victor Onward Holdings

                            will be undertaken and solved by the

                            company or the third party appointed by the

                            company, and Victor Onward Holdings

                            assumes no responsibility. When there are

                            losses caused by it, the company or the third

                            party appointed by the company will fully

                            compensate for the caused losses of Victor

                            Onward Holdings in 5 working days after

                            receiving the notice.
                            According to the Term 5.6.1 of Agreement
                            and based on the principle of “staff
                            arrangement according to the assets”, the
                            labor relations, social insurance relations
                            including pension, medical treatment,
                            unemployment, working injury and maternity,
                            and other liable welfare and salary of all the
                            staff in Victor Onward Holdings. (including
                            but not limited to on-post employees,
                            employees awaiting job assignments, retired
                            employees, retained employees with suspend
                            salary, transferred employees, and temporary


                                           19
Sino Great Wall Co., Ltd.                                                 The First Quarterly Report 2016


                            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.

 Commitments
 make in initial
                    No      No                                                                No       No
 public offering
 or re-financing

 Equity
 incentive          No      No                                                                No       No
 commitment

 Other
 commitments
 for medium         No      No                                                                No       No
 and small
 shareholders

 Completed on
                    Yes
 time(Y/N)

 If the
 commitments
 is not fulfilled
 on time, shall
                    No
 explain the
 specify reason
 and the next
 work plan




                                           20
Sino Great Wall Co., Ltd.                                                                          The First Quarterly Report 2016


IV.Prediction of Business performance for January- June 2016

Estimation of accumulative net profit from the beginning of the year to the end of next report period to be loss
 probably or the warning of its material change compared with the corresponding period of the last year and
 explanation of reason.

√ Applicable □ Not applicable
Forenotice of earnings: Turning loss to profit
Type of date filled for the prediction: Interval figures

                                                                                              Same period of the previous year
                                    Year beginning to end of next report period
                                                                                      Before recombination        After recombination

Estimated amount of
accumulative net                              19,000       --              22,000                        -60.86                16,534.23
profit(RMB’0000)

Basic earnings per shares
                                                 0.42      --                  0.49                      -0.004                      0.37
(Yuan/share)

                                  In 2015, the company completed major assets restructuring. Wherein, on July 29, 2015, the
                                  ownership of 100% of Sino Great Wall International Engineering Co., Ltd., namely, the underlying
                                  assets of the major assets restructuring this time, was transferred to the company. On October 26,
Notes to forenotice of            2016, the fun raised fro the major assets restructuring was fully transferred into the company’s
earnings                          account. In the later half year of 2015, the company completed the major assets restructuring. Since
                                  so, the quality of assets and operating condition in the company had fundamentally improved if
                                  compared with the past, while its profitability was greatly enhanced and the businesses in the
                                  company maintained stable and on the rise.




V Securities investments

 □ Applicable √ Not applicable

No such cases in the Reporting Period

VI. Investment in derivatives
□ Applicable √Not applicable
No such cases in the Reporting Period

VII. The registration form of acceptance of investigation, communication and interview in the
report period for future reference

√ Applicable □ Not applicable

       Reception time                  Way of reception              Types of visitors                        Basic index

 January 20,2016                  Onsite investigation          Organization                    The interactive relation with the


                                                                   21
Sino Great Wall Co., Ltd.                                                         The First Quarterly Report 2016


                                                                               investors on Shenzhen Stock
                                                                               Exchange platform about Sino Great
                                                                               Wall International Engineering Co.,
                                                                               Ltd: Record of the investors relations
                                                                               activities on January 20, 2016

                                                                               The interactive relation with the
                                                                               investors on Shenzhen Stock
                                                                               Exchange platform about Sino Great
 February 1,2016                 Onsite investigation   Organization
                                                                               Wall International Engineering Co.,
                                                                               Ltd: Record of the investors relations
                                                                               activities on February 1, 2016

                                                                               The interactive relation with the
                                                                               investors on Shenzhen Stock
                                                                               Exchange platform about Sino Great
 March 3,2016                    Onsite investigation   Organization
                                                                               Wall International Engineering Co.,
                                                                               Ltd: Record of the investors relations
                                                                               activities on March 3, 2016

                                                                               The interactive relation with the
                                                                               investors on Shenzhen Stock
                                                                               Exchange platform about Sino Great
 March 11,2016                   Onsite investigation   Organization
                                                                               Wall International Engineering Co.,
                                                                               Ltd: Record of the investors relations
                                                                               activities on March 11, 2016


VIII. External guarantee get out of line

□ Applicable √Not applicable

The Company has no external guarantee get out of the line in the Period

IX. Controlling shareholder and its related parties occupying non-business capital of the listed
company

□ Applicable √Not applicable

There are no controlling shareholder and its related parties occupying non-business capital of the listed company
in Period




                                                           22
Sino Great Wall Co., Ltd.                                                    The First Quarterly Report 2016




                                        IV. Financial Statement

I. Financial statement

1. Consolidated balance sheet


Prepared by:Sino Great Wall Co., Ltd.


                                                 March 31,2016
                                                                                                         In RMB

                    Items                    At the end of term                   Beginning of term

              Current asset:

              Monetary fund                                 821,348,742.05                      695,384,561.31

          Settlement provision

 Outgoing call loan

   Financial assets measured at fair
 value with variations accounted into                         1,113,492.32                        1,102,961.04
 current income account

      Derivative financial assets

  Bill receivable                                           221,856,161.20                      220,448,747.94

  Account receivable                                     2,759,708,357.93                     2,352,808,087.33

   Prepayments                                               73,129,375.81                       77,707,568.38

  Insurance receivable

 Reinsurance receivable

 Provisions of Reinsurance contracts
 receivable

   Interest receivable

   Dividend receivable

  Other account receivable                                  257,897,479.34                      239,952,886.10

  Repurchasing of financial assets

  Inventories                                                79,374,208.07                      168,133,668.91

   Assets held for sales

   Non-current asset due in 1 year                           14,498,260.05                       15,717,270.60

   Other current asset                                       12,891,321.58                       14,138,411.87



                                                       23
Sino Great Wall Co., Ltd.                                       The First Quarterly Report 2016


 Total of current assets                   4,241,817,398.35                      3,785,394,163.48

 Non-current assets:

 Loans and payment on other’s behalf
 disbursed

   Disposable financial asset

   Expired investment in possess

  Long-term receivable

  Long term share equity investment

  Property investment

   Fixed assets                                 42,651,966.95                       43,846,215.63

   Construction in progress                     10,352,667.40                       10,016,928.24

 Engineering material

   Fixed asset disposal

   Production physical assets

  Gas & petrol

  Intangible assets                              9,151,528.43                        9,267,746.33

  R & D petrol

  Goodwill                                       6,724,316.91                        6,724,316.91

 Long-germ expenses to be amortized             15,932,503.99                       18,909,785.69

 Deferred income tax asset                      52,413,080.50                       47,950,278.07

  Other non-current asset                      108,080,565.28                       95,353,390.28

 Total of non-current assets                   245,306,629.46                      232,068,661.15

 Total of assets                           4,487,124,027.81                      4,017,462,824.63

 Current liabilities

   Short-term loans                            673,408,496.07                      225,408,496.07

  Loan from Central Bank

  Deposit received and hold for others

  Call loan received

 Financial liabilities measured at fair
 value with variations accounted into
 current income account

      Derivative financial liabilities

   Bill payable                                135,767,417.39                      143,410,167.17

   Account payable                         1,362,855,428.34                      1,332,619,954.77

  Advance payment                               40,121,518.95                       64,963,842.60


                                          24
Sino Great Wall Co., Ltd.                                       The First Quarterly Report 2016


  Selling of repurchased financial
 assets

 Fees and commissions receivable

  Employees’ wage payable                      23,434,735.00                       12,669,619.20

  Tax payable                                  272,420,557.54                      284,826,290.11

  Interest payable                               1,399,279.72                          527,969.26

  Dividend payable

   Other account payable                       401,331,304.86                      635,200,976.60

  Reinsurance fee payable

  Insurance contract provision

  Entrusted trading of securities

 Entrusted selling of securities

   Liabilities held for sales

 Non-current liability due in 1 year            12,794,047.68                        7,135,752.00

 Other current liability                        58,823,529.00

 Total of current liability                2,982,356,314.55                      2,706,763,067.78

 Non-current liabilities:

   Long-term loan                              145,669,124.50                       30,140,649.14

  Bond payable

   Including:preferred stock

   Sustainable debt

   Long-term payable

 Long-term payable employees’s
 remuneration

  Special payable

  Expected liabilities

      Deferred income

          Deferred income tax liability             17,023.85                           15,444.16

 Other non-current liabilities

 Total non-current liabilities                 145,686,148.35                       30,156,093.30

 Total of liability                        3,128,042,462.90                      2,736,919,161.08

 Owners’ equity

             Share capital                     446,906,582.00                      446,906,582.00

          Other equity instrument

   Including:preferred stock


                                          25
Sino Great Wall Co., Ltd.                                                                The First Quarterly Report 2016


   Sustainable debt

  Capital reserves                                                   -50,367,862.22                         -50,367,862.22

   Less:Shares in stock

 Other comprehensive income

 Special reserves                                                     48,573,554.79                          46,014,941.54

   Surplus reserves                                                   92,986,069.52                          84,394,441.23

  Common risk provision

 Undistributed profit                                                823,304,290.89                         755,308,636.19

 Total of owner’s equity belong to the
                                                                  1,361,402,634.98                        1,282,256,738.74
 parent company

 Minority shareholders’ equity                                       -2,321,070.07                           -1,713,075.19

 Total of owners’ equity                                         1,359,081,564.91                        1,280,543,663.55

 Total of liabilities and owners’ equity                         4,487,124,027.81                        4,017,462,824.63


Legal Representative:Chen Lue               Person in charge of accounting:Cui Hongli      Accounting Dept Leader:Cui
Hongli

2.Parent Company Balance Sheet
                                                                                                                     In RMB



                    Items                             At the end of term                      Beginning of term

 Current asset:

 Monetary fund                                                       349,184,323.76                         239,145,251.31

 Financial assets measured at fair
 value with variations accounted into
 current income account

 Derivative financial assets

  Bill receivable

  Account receivable                                                       7,040.00                               29,083.30

   Prepayments                                                        30,000,000.00

   Interest receivable

   Dividend receivable

 Other account receivable                                            351,215,958.44

   Inventories

 Assets held for sales

   Non-current asset due in 1 year



                                                                26
Sino Great Wall Co., Ltd.                                       The First Quarterly Report 2016


 Other current asset

 Total of current assets                       730,407,322.20                      239,174,334.61

 Non-current assets:

   Disposable financial asset

 Expired investment in possess

  Long-term receivable

  Long term share equity investment        3,079,451,536.66                      3,079,451,536.66

  Property investment

   Fixed assets                                      5,451.25

   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                            382.68                               382.68

  Other non-current asset

 Total of non-current assets               3,079,457,370.59                      3,079,451,919.34

 Total of assets                           3,809,864,692.79                      3,318,626,253.95

 Current liabilities

   Short-term loans                            500,000,000.00

 Financial liabilities measured at fair
 value with variations accounted into
 current income account
   Derivative financial liabilities

   Bill payable

   Account payable

  Advance payment

  Employees’ wage payable                        428,275.54

  Tax payable                                   97,953,522.86                       98,150,372.30

  Interest payable                               1,090,083.33

  Dividend payable


                                          27
Sino Great Wall Co., Ltd.                                         The First Quarterly Report 2016


   Other account payable                              49,268.86                          803,339.56

 Classified as held for sale debt
        Non-current liability due in 1
 year
 Other current liability

 Total of current liability                      599,521,150.59                       98,953,711.86

 Non-current liabilities:

   Long-term loan

  Bond payable

   Including:preferred stock

   Sustainable debt

    Long-term payable
 Long-term payable to
 employees
   Special payable

  Expected liabilities

 Deferred income

 Deferred income tax liability

   Other non-current liabilities

 Total of Non-current liabilities

 Total of liability                              599,521,150.59                       98,953,711.86

 Owners’ equity

         Share capital                           446,906,582.00                      446,906,582.00

        Other equity instrument

   Including:preferred stock

   Sustainable debt

  Capital reserves                           2,489,294,901.37                      2,489,294,901.37

   Less:Shares in stock

 Other comprehensive income
 Special reserves

 Surplus reserves                                 26,309,287.00                       26,309,287.00

 Undistributed profit                            247,832,771.83                      257,161,771.72

 Total of owners’ equity                    3,210,343,542.20                      3,219,672,542.09

 Total of liabilities and owners’ equity    3,809,864,692.79                      3,318,626,253.95




                                            28
Sino Great Wall Co., Ltd.                                                    The First Quarterly Report 2016


3.Consolidated Income statement

                                                                                                         In RMB



                     Items                  Amount in this period             Amount in last period
 I. Income from the key business                            924,667,155.55                      825,262,582.68

 Incl:Business income                                      924,667,155.55                      825,262,582.68

      Interest income

  Insurance fee earned

 Fee and commission received

 II. Total business cost                                    829,822,766.63                      761,590,182.07

 Incl:Business cost                                        725,086,112.57                      685,216,235.95

       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                             15,324,842.63                       24,352,158.65

      Sales expense                                           2,429,168.94                        2,631,851.19

  Administrative expense                                     42,252,271.83                       29,832,508.95

     Financial expenses                                      14,979,885.12                        6,352,212.68

  Asset impairment loss                                      29,750,485.54                       13,205,214.65

  Add:Gains from change of fir value
                                                                 10,531.28                            11,511.52
 (“-”for loss)

   Investment gain(“-”for loss)

  Incl: investment gains from affiliates

 Gains from currency exchange(“-”for
 loss)

 III. Operational profit(“-”for loss)                    94,854,920.20                       63,683,912.13

      Add :Non-operational income                                                                  347,480.50

   Including:Income from disposal of
                                                                                                       4,455.00
 non-current assets

   Less:Non business expenses                                                                         1,500.00

 Incl:Loss from disposal of non-current

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Sino Great Wall Co., Ltd.                                          The First Quarterly Report 2016


 assets

 IV.Total profit(“-”for loss)                    94,854,920.20                       64,029,892.63

 Less:Income tax expenses                         18,875,632.10                       16,152,443.52

 V. Net profit                                     75,979,288.10                       47,877,449.11

 Net profit attributable to the owners of
                                                   76,587,282.98                       47,877,449.11
 parent company

 Minority shareholders’ equity                      -607,994.88

 VI. Other comprehensive income

 Net of profit of other comprehensive in
 come attributable to owners of the pare
 nt company.

 (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 t
 he equity method investee can not be re
 classified into profit or loss.

 (II)
 Other comprehensive income that will
 be reclassified into profit or loss.

 1.Other comprehensive income under t
 he equity method investee can be reclas
 sified into profit or loss.

 2.Gains and losses from changes in fair
  value available for sale financial assets

 3.Held-to-maturity investments reclassi
 fied to gains and losses of available for
 sale financial assets

 4.The effective portion of cash flow he
 dges and losses

 5.Translation differences in currency fi
 nancial statements

 6.Other


 Net of profit of other comprehensive in
 come attributable to Minority


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Sino Great Wall Co., Ltd.                                                               The First Quarterly Report 2016


 shareholders’ equity

 VII. Total comprehensive income                                  75,979,288.10                             47,877,449.11

 Total comprehensive income
 attributable to the owner of the parent                          76,587,282.98                             47,877,449.11
 company

  Total comprehensive income
                                                                    -607,994.88
 attributable minority shareholders

 VIII. Earnings per share

 (I)Basic earnings per share                                            0.1714                                   0.1071

  (II)Diluted earnings per share                                          0.1714                                   0.1071

If there are entities merged under common control, their net profit realized before the merger were totaled to
RMB***. While it was RMB*** previous period.

Legal Representative: Chen Lue             Person in charge of accounting:Cui Hongli      Accounting Dept Leader: Cui
Hongli

4. Income statement of the Parent Company

                                                                                                                    In RMB



                  Items                           Amount in this period                  Amount in last period
 I. Income from the key business                                     63,540.00                                 948,730.00

   Less:Business cost                                                     0.00                                 84,293.00

 Business tax and surcharge                                                                                     74,864.00

      Sales expense

  Administrative expense                                           3,778,977.94                              1,909,174.00

     Financial expenses                                            5,615,092.65

  Asset impairment loss                                               -1,530.70

   Add:Gains from change of fir
 value (“-”for loss)

   Investment gain(“-”for loss)

   Incl: investment gains from
 affiliates

 II. Operational profit(“-”for loss)                          -9,328,999.89                               -677,137.00

      Add :Non-operational income

   Including:Income from disposal
 of non-current assets


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Sino Great Wall Co., Ltd.                                           The First Quarterly Report 2016


   Less:Non business expenses
 Incl:Loss from disposal of
 non-current assets
 III.Total profit(“-”for loss)                    -9,328,999.89                         -677,137.00

  Less:Income tax expenses

 IV. Net profit(“-”for net loss)                -9,328,999.89                         -677,137.00

 V.Net of profit of other comprehensiv
                                                                                          -203,899.00
 e income

   (I)Other comprehensive income
 items that will not be reclassified into
                                                                                          -203,899.00
 gains/losses in the subsequent
 accounting period

 1.Re-measurement of defined benefit
 plans of changes in net debt or net ass
 ets

 2.Other comprehensive income under
  the equity method investee can not b
 e reclassified into profit or loss.

 (                  II                   )
 Other comprehensive income that wil
 l be reclassified into profit or loss.

 1.Other comprehensive income under
  the equity method investee can be re
 classified into profit or loss.

 2.Gains and losses from changes in fa
 ir value available for sale financial as
 sets

 3.Held-to-maturity investments reclas
 sified to gains and losses of available
 for sale financial assets

 4.The effective portion of cash flow h
 edges and losses


 5.Translation differences in currency
 financial statements

              6.Other

 VI. Total comprehensive income                     -9,328,999.89                         -881,036.00

 VII. Earnings per share:

 (I)Basic earnings per share


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Sino Great Wall Co., Ltd.                                                        The First Quarterly Report 2016


  (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
                                                          520,278,123.47                            476,713,459.34
 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 the financial assets
 that are measured at fair value and
 whose movement is counted to the
 current gain and loss

 Cash received as interest, processing
 fee and commission

 Net increase of inter-bank fund
 received

 Net increase of repurchasing
 business

     Tax returned

 Other cash received from business
                                                          623,823,935.88                            249,789,551.75
 operation

     Sub-total of cash inflow                         1,144,102,059.35                              726,503,011.09

 Cash paid for purchasing of
                                                          556,084,798.41                            338,006,945.73
 merchandise and services


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Sino Great Wall Co., Ltd.                                       The First Quarterly Report 2016


 Net increase of client trade and
 advance

 Net increase of savings n central
 bank and brother company

 Cash paid for original contract claim

  Cash paid for interest, processing
 fee and commission

  Cash paid for policy dividend

 Cash paid to staffs or paid for staffs         48,399,981.65                       37,341,995.96

  Taxes paid                                    28,333,891.29                       12,195,272.46

 Other cash paid for business
                                               830,256,141.01                      455,067,642.29
 activities

 Sub-total of cash outflow from
                                          1,463,074,812.36                         842,611,856.44
   business activities

 Cash flow generated by business
                                           -318,972,753.01                        -116,108,845.35
 operation, net

 II.Cash flow generated by investing

 Cash received from investment
 retrieving

 Cash received as investment gains

 Net cash retrieved from disposal of
 fixed assets, intangible assets, and
 other long-term assets

 Net cash received from disposal of
 subsidiaries or other operational
 units

 Other investment-related cash
 received

 Sub-total of cash inflow due to
 investment activities

 Cash paid for construction of fixed
         assets, intangible assets and                                               6,710,715.18
         other long-term assets

 Cash paid as investment

 Net increase of loan against pledge

 Net cash received from subsidiaries
 and other operational units

 Other cash paid for investment


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Sino Great Wall Co., Ltd.                                            The First Quarterly Report 2016


 activities

 Sub-total of cash outflow due to
                                                                                          6,710,715.18
 investment activities

 Net cash flow generated by
                                                                                          -6,710,715.18
 investment

 III.Cash flow generated by financing

 Cash received as investment

 Incl: Cash received as investment
 from minor shareholders

 Cash received as loans                             744,000,000.00                       91,000,000.00

 Cash received from bond placing

 Other financing –related ash received                                                  98,000,000.00

 Sub-total of cash inflow from
                                                    744,000,000.00                      189,000,000.00
 financing activities

 Cash to repay debts                                181,766,458.58                       90,276,762.40

 Cash paid as dividend, profit, or
                                                     11,329,317.49                        6,151,142.58
 interests

 Incl: Dividend and profit paid by
 subsidiaries to minor shareholders

 Other cash paid for financing
                                                    144,808,136.00                        9,952,145.00
 activities

 Sub-total of cash outflow due to
                                                    337,903,912.07                      106,380,049.98
 financing activities

 Net cash flow generated by financing               406,096,087.93                       82,619,950.02

 IV. Influence of exchange rate
 alternation on cash and cash                                                              -162,583.65
 equivalents

 V.Net increase of cash and cash
                                                     87,123,334.92                      -40,362,194.16
 equivalents

 Add: balance of cash and cash
                                                    582,745,756.81                      243,759,954.90
 equivalents at the beginning of term

 VI ..Balance of cash and cash
                                                    669,869,091.73                      203,397,760.74
 equivalents at the end of term


6. Cash Flow Statement of the Parent Company

                                                                                                 In RMB




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Sino Great Wall Co., Ltd.                                                   The First Quarterly Report 2016


                    Items                 Amount in this period              Amount in last period
 I.Cash flows from operating
 activities

 Cash received from sales of goods or
                                                                77,390.00                          948,730.00
 rending of services

  Tax returned

 Other cash received from business
                                                           266,261,121.80                          940,105.00
 operation

 Sub-total of cash inflow                                  266,338,511.80                        1,888,835.00

 Cash paid for purchasing of
 merchandise and services

 Cash paid to staffs or paid for staffs                                                            440,272.00

 Taxes paid                                                   258,400.59                           395,215.00

 Other cash paid for business
                                                           652,575,425.78                          873,515.00
 activities

 Sub-total of cash outflow from
                                                           652,833,826.37                        1,709,002.00
   business activities

 Cash flow generated by business
                                                        -386,495,314.57                            179,833.00
 operation, net

 II.Cash flow generated by investing

 Cash received from investment
 retrieving

 Cash received as investment gains

 Net cash retrieved from disposal of
 fixed assets, intangible assets, and
 other long-term assets

 Net cash received from disposal of
 subsidiaries or other operational
 units

 Other investment-related cash
 received

  Sub-total of cash inflow due to
 investment activities

 Cash paid for construction of fixed
         assets, intangible assets
 and other long-term assets

         Cash paid as investment

 Net cash received from subsidiaries


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Sino Great Wall Co., Ltd.                                          The First Quarterly Report 2016


 and other operational units

 Other cash paid for investment
 activities

 Sub-total of cash outflow due to
 investment activities

 Net cash flow generated by
 investment

 III.Cash flow generated by financing

   Cash received as investment

      Cash received as loans                      500,000,000.00

  Cash received from bond placing

 Other financing –related ash received

  Sub-total of cash inflow from
                                                  500,000,000.00
 financing activities

   Cash to repay debts

 Cash paid as dividend, profit, or
                                                    3,465,612.98
 interests

 Other cash paid for financing
 activities

  Sub-total of cash outflow due to
                                                    3,465,612.98
 financing activities

 Net cash flow generated by financing             496,534,387.02

 IV. Influence of exchange rate
 alternation on cash and cash
 equivalents

 V.Net increase of cash and cash
                                                  110,039,072.45                          179,833.00
 equivalents

 Add: balance of cash and cash
                                                  239,145,251.31                       23,480,977.00
 equivalents at the beginning of term

 VI ..Balance of cash and cash
                                                  349,184,323.76                       23,660,810.00
 equivalents at the end of term


II. Auditor’ report

Is the First Quarterly Report be audited?
□ Yes        √No

The First Quarterly report is not audited.



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