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神州长城(000018)公告正文

神州B:2016年第三季度报告全文(英文版)

公告日期:2016-10-26

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




                               Sino Great Wall Co., Ltd.

                            The Third Quarterly Report 2016




                                     October 2016




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



II. Main financial data and changes of shareholders

I.Main accounting 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




                                                   End of the report period                End of last year                Year-on –year change

        Gross assets(RMB)                                    6,474,979,794.34                  4,017,462,824.63                             61.17%

      Net assets attributable to the
shareholders of the listed company                             1,611,589,702.33                  1,282,256,738.74                             25.68%
                 (RMB)

                                                                                                     Between beginning of
                                                                          Year-on             year                             Change from the same
                                                  This report period                                 the year to the end of
                                                                          change9%)                                               period last year
                                                                                                       the report period

Operating income(RMB)                              1,280,022,467.68                      53.22%          3,233,597,223.19                   10.87%

Net     profit    attributable      to     the
shareholders of the listed company                     100,866,553.43                      30.68%             303,165,970.06                  25.00%
(RMB)

Net     profit after       deducting of
non-recurring gain/loss attributable
                                                       100,801,973.68                      29.45%             283,301,863.47                  16.61%
to    the    shareholders      of        listed
company(RMB)

 Cash flow generated by business
                                                          --                          --                   -1,686,338,825.47                414.80%
        operation, net(RMB)

Basic              earning                 per
                                                                 0.0594                    30.84%                    0.1785                   25.00%
share(RMB/Share)

Diluted              gains                 per
                                                                 0.0594                    30.84%                    0.1785                   25.00%
share(RMB/Share)(RMB/Share)

Weighted         average     income/asset
                                                                 6.43%                     -2.26%                    20.95%                   -7.98%
ratio(%)

                                                                                                                                              In RMB

                                                                                    Amount from beginning of
                                         Items                                      the year to the end of the                   Notes
                                                                                           report period

Gain/loss from disposal of non-current assets (includes the                                                60,234


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


  recovered part of asset impairment provision already provided)

Govemment subsidies recognized in current gain and
  loss(excluding those closely related to the Company’ business                2,522.16
  and granted under the state’s policies)

Except the effective hedge business related to the normal
  operation business of the Company, the profit and loss in the
  changes of fair values caused by the holding of tradable
                                                                             245,263.08
  financial assets and tradable financial liabilities as well as the
  investment returns in disposal of tradable financial assets,
  tradable financial liabilities and saleable financial assets

                                                                                           Mainly because the company is
                                                                                             Located in Shenzhen City,
                                                                                             Dapeng New District,
Other non-business income and expenditures other than the above            26,180,786.00     Kuichong Office, Kuixin
                                                                                             community of land and
                                                                                             buildings on the ground by the
                                                                                             collection of compensation

Less: Influenced amount of income tax                                       6,624,698.65

Total                                                                      19,864,106.59                  --

For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses and
its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure
for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as
recurring gains and losses, it is necessary to explain the reason.
□ Applicable√ Not applicable
None of Non-recurring gain /loss items recognized as recurring gain /loss/items as defined by the information
disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period.




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Sino Great Wall Co., Ltd.                                                                   The Third 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
Total number of common shareholders at the
                                                            55,398 the voting power recovered at the                                   0
period-end
                                                                      end of the reporting period(if any)

                                             Shares held by the top 10 shareholders

                                                                                           Amount of           Pledging or freezing
                                                          Share
                                    Properties of                                        tradable shares
      Shareholder name                                  proportion        Quantity                          Status of the
                                     shareholder                                        with Conditional                    Quantity
                                                            %                                                  shares
                                                                                              held
                                 Domestic Natural
Chen Lve                                                   34.33%         582,944,556       582,109,696 Pledge              431,760,594
                                 person

                                 Domestic Non
Union Holdings Co., Ltd.         State-owned legal           6.38%        108,295,921                   0
                                 person

STYLE-SUCCESS LIMITED            Foreign legal person        5.47%         92,970,910                   0

Shanghai Financial               Domestic Non
Development Investment           State-owned legal           4.49%         76,300,504        76,300,504
Fund(LP)                         person

                                 Domestic Natural
He Feiyan                                                    3.23%         54,800,458        54,800,458
                                 person

Jiutai Fund-Bank of
Communications-Jiutai
                                 Other                       2.50%         42,479,672        42,479,672
Huitong No.2 specific customer
asset management plan

                                 Domestic Non
Wuxi Hengtai Jiuding Assets
                                 State-owned legal           2.26%         38,330,615        38,330,615
Management Centre(LP)
                                 person

                                 Domestic Non
Foshan Haihui Heying Venture
                                 State-owned legal           2.25%         38,150,252        38,150,252
Imvestment Partnership(LP)
                                 person

                                 Domestic Non
Jiangxi Taihao Venture
                                 State-owned legal           1.87%         31,791,879        31,791,879
Investment Centre(LP)
                                 person

                                 Domestic Non
Yantai ZhaoxuanYuantai Jiuding
                                 State-owned legal           1.87%         31,742,745        31,742,745
Venture Investment Centre(LP)
                                 person

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


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



                                                   Quantity of unrestricted shares held at               Share type
              Name of the shareholder
                                                       the end of the reporting period          Share type        Quantity

                                                                                             RMB Common
Union Holdings Co., Ltd.                                                     108,295,921                              108,295,921
                                                                                             shares

                                                                                             Foreign shares
                                                                                             placed in
STYLE-SUCCESS LIMITED                                                         92,970,910                               92,970,910
                                                                                             domestic
                                                                                             exchange

                                                                                             Foreign shares
                                                                                             placed in
Rich Crown Investment Co., Ltd.                                               23,235,313                               23,235,313
                                                                                             domestic
                                                                                             exchange

                                                                                             RMB Common
Liuzhou Jiali Real estate Development Co., ltd.                                 9,600,000                               9,600,000
                                                                                             shares

                                                                                             Foreign shares
                                                                                             placed in
Zeng Ying                                                                       5,166,000                               5,166,000
                                                                                             domestic
                                                                                             exchange

                                                                                             Foreign shares
                                                                                             placed in
KGI ASIA LIMITED                                                                4,691,274                               4,691,274
                                                                                             domestic
                                                                                             exchange

                                                                                             Foreign shares
                                                                                             placed in
Song Wenguang                                                                   4,372,328                               4,372,328
                                                                                             domestic
                                                                                             exchange

Xingzheng Securities Assets Management -
Everbright Bank-Xingzheng Assets management                                                 RMB Common
                                                                                3,166,110                               3,166,110
Xinzhong No.57. Collection of assets management                                              shares
plan

                                                                                             Foreign shares
                                                                                             placed in
Chen Lihong                                                                     2,293,280                               2,293,280
                                                                                             domestic
                                                                                             exchange

                                                                                             Foreign shares
                                                                                             placed in
Wang Ying                                                                       2,147,140                               2,147,140
                                                                                             domestic
                                                                                             exchange

                                                   Chen Lve and He Feiyan are consortium officers; Wuxi Hengtai Jiuding
Explanation on shareholders participating in the
                                                   Assets Management Centre (LP)and Yantai Zhaoxuan Yuantai Jiuding
margin trading business
                                                   Venture Investment Centre(LP)are consortium officers; Union

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


                                                          Development Group Ltd. is the controlling shareholder of the
                                                          above-mentioned shareholder Shenzhen Union Holdings Ltd. and third
                                                          shareholder Rich Crown Investment Co., Ltd. The other tradable
                                                          shareholders neither knew whether there exists associated relationship
                                                          between them.

                                                          Among the shareholders above, Liuzhou Jiali Real estate Development Co.,
Participation of top 10 unconditional common share
                                                          ltd. holds 9,600,000 shares of the Company through stock account with
shareholders in securities margin trading (if any)
                                                          credit 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

                            Year-end       balance Same period of the        Changes               Remarks on the change
                            (RMB)                    previous year(RMB)        (%)

   Net             profit                                                                Mainly due to the increase in the company's
   attributable to the                                                                   overseas income, consolidated gross profit
                                   303,165,970.06          242,528,351.45       25.00%
   shareholders of the                                                                   margin and income tax, business tax
   Parent company                                                                        changes

   Monetary fund                   974,281,429.82          695,384,561.31       40.11% Mainly due to bank loans increased

                                                                                         Mainly due to in the implementation of
                                                                                         large projects progressed smoothly, the
   Account receivable             3,450,378,757.45       2,352,808,087.33       46.65%
                                                                                         project revenue increased, the reporting
                                                                                         period has not yet received

                                                                                         Mainly due to advance payment for
   Advance payment                 169,726,021.06           77,707,568.38      118.42%
                                                                                         construction projects increased

                                                                                         Mainly due to increase in raw materials at
   Inventory                       250,298,204.27          168,133,668.91       48.87% the end of the reporting period, and
                                                                                         unsettled increase in completed

   Fixed assets                    102,651,662.49           43,846,215.63      134.12% Mainly due to the acquisition of Wuhan


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


                                                                               Commercial Hospital and overseas tower
                                                                               crane installation is completed

  Construction          in                                                     Mainly due to overseas tower crane
                                 2,347,992.64      10,016,928.24     -76.56%
  process                                                                      installation is completed

  Other            account                                                     Mainly due to margin and current account
                               822,416,213.32     239,952,886.10     242.74%
  receivable                                                                   increase

  Short-term                                                                   Mainly due to increase in bank loans in the
                             1,639,271,777.92     225,408,496.07     627.24%
  Borrowing                                                                    current period

                                                                               Mainly due to vendor settlement using more
  Bills payable                559,111,364.29     143,410,167.17     289.87%
                                                                               bill settlement

                                                                               Mainly due to overseas projects to increase
  Account payable            1,022,563,948.28    1,332,619,954.77    -23.27%
                                                                               overseas suppliers accounts shorter

                                                                               Mainly due to in the current period, the
  Other            account
                               211,602,174.99     635,200,976.60     -66.69% funds for the inter-bank borrowing are
  payable
                                                                               returned

  Long-term                                                                    Mainly due to increase in current bank
                               988,390,314.20      30,140,649.14    3179.26%
  borrowing                                                                    borrowings

                                                                               Mainly due to increase the current business
  Sales expense                 18,366,539.49      10,539,011.91      74.27%
                                                                               expansion efforts

                                                                               Mainly due to the second half of 2015
  Administrative                                                               overseas companies and overseas regional
                               196,940,207.67     107,914,317.65      82.50%
  expense                                                                      companies, overseas management personnel
                                                                               increased

                                                                               Mainly due to in the current period,
  Financial expenses           106,481,367.68      24,205,661.13     339.90% borrowings          of   financial   institutions
                                                                               increased

                                                                               Mainly due to an increase in accounts
  Asset       impairment
                               112,230,752.62      48,824,874.34     129.86% receivable resulted in an increase in asset
  loss
                                                                               impairment

                                                                               Mainly due to in the report period,
  Non-business
                                29,136,122.16         405,739.61    7080.99% compensation fees for land acquisition and
  income
                                                                               construction (structures) were collected

                                                                               Mainly due to during the reporting period,
  Net       Cash     flow
                                                                               the company's overseas business grew
  generated            by    -1,686,338,825.47   -327,571,330.51     414.80%
                                                                               rapidly, project margin and advances to a
  business operation
                                                                               substantial increase in expenditure

  Net cash flow
                                                                               Mainly due to investment in the current
  generated by                -255,555,028.00      -35,910,259.45    611.65%
                                                                               period increased
  investment




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


   Net cash flow
   generated by                   1,825,820,436.37       235,414,152.87       675.58% Due to increase in current bank borrowings
   financing


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

√ Applicable □ Not applicable
     On June 24, 2016, the company published a notice that the company is planning the item of non-public share-issuing, therefore
the trade of the company’s share shall be suspended from June 24, 2016. On July 7, 2016, the Proposal on the Company’s Non-public
A-share Issuance to Specific Objects and the relevant proposals were examined and approved in the 10th board meeting of the 7th
session board of directors, The Proposals related to the company’s non-public A-share issuance were examined and approved in the
2016 second extraordinary general shareholder meeting on July 25, 2016. On October 14, 2016, the Company received Notice of
Acceptance of Administrative License Application of China Securities Regulatory Commission (No. 162993) issued by the China
Securities Regulatory Commission. The CSRC decided to accept the application for administrative licensing of the Company's
non-public issuance of shares.


                                                                                             Description of the website for
Overview of material matters                             Date of disclosing                       disclosing provisional
                                                                                                     announcements
The Company disclosed the plan of
                                                              July 9,2016                                   http://www.cninfo.com.cn
non-public offering of A shares

The company's non-public offering of A
shares to the specific object of the matter
                                                           October 15,2016                                  http://www.cninfo.com.cn
in the October 14, 2016 received notice of
the CSRC admissibility

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

                                                                                                    Time of
                                                                                                                Period of
                        Commitmen                                                                   making                  Fulfillme
    Commitment                           Type                          Contents                                 commitme
                          t maker                                                                  commitme                      nt
                                                                                                                    nt
                                                                                                       nt

Commitment on
                        No                       No                                                            No           No
share reform

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

Commitments in          Chen Lve,     Share lock Shares acquired by purchases of assets through    March       36 months Strict


                                                                   9
Sino Great Wall Co., Ltd.                                                                    The Third Quarterly Report 2016


assets reorganization He Feiyan              issuing shares: “I will not transfer the new shares 19,2015              perfo
                                             of Victor Onward Holdings acquired through this                           rming
                                             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 after the transaction has been
                                             completed, the lock-up periods of my shares of
                                             Victor Onward Holdings are automatically
                                             prolonged for 6 months. (The above-mentioned
                                             issue price will be calculated according to the
                                             price after the adjustment of ex-dividend, etc. if
                                             ex-dividend behaviors of the company, including
                                             distribution of dividends, giving bonus,
                                             conversion of share capital, rationing shares, and
                                             etc., were happened during the above-mentioned
                                             periods. If the restructuring transaction were
                                             investigated by judicial authorities or China
                                             Securities Regulatory Commission due to false
                                             record, misleading statement or major omission of
                                             the information provided or disclosed, I will not
                                             transfer my shares of the company before the
                                             conclusion of the case has been made clear. After
                                             the above-mentioned lock-up periods, I will sell
                                             or transfer the new shares of the company
                                             acquired from this restructuring following
                                             relevant regulations of China Securities
                                             Regulatory commission and Shenzhen Stock
                                             Exchange.

                                             Shares acquired by matching funds raised: “I will
                                             not transfer the new shares of Victor Onward                              Strict
                                                                                                   March
                    Chen Lve      Share lock Holdings acquired through this issuing by any                   36 months perfo
                                                                                                   19,2015
                                             way, including but not limited to the public                              rming
                                             transfer through the stock market or by


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


                                         agreement, within 36 months from the date new
                                         shares list. If regulation rules or regulators have
                                         longer requirements for lock-up periods, it should
                                         be executed accordingly.

                                         Up to the issue day of the letter, I and other
                                         corporations controlled by me haven’t possessed
                                         funds of Sino Great Wall; After the transaction is
                                         completed, I and other companies controlled by
                                         me (if any), except for listed companies and their
                                         holding subsidiaries, will not possess the funds of
                                         listed companies or Sino Great Wall by any way,
                                         including cash in advance, other expenses, direct
                                         or indirect loans, assumption, etc. and try our best
                                         to avoid fund intercourse with listed companies or
                              There is                                                                              Strict
                                         Sino Great Wall, which has nothing to do with          March
                   Chen Lve   no funds                                                                    Long-term perfo
                                         normal operations. If Sino Great Wall got              19,2015
                              occupied                                                                              rming
                                         penalized by government administration
                                         departments due to the money lending which was
                                         happened before the transaction, I will bear the
                                         total compensation for the company’s loss
                                         resulting from it by cash in order to guarantee
                                         Sino Great Wall won’t suffer any loss.
                                         Meanwhile, I will actively urge Sino Great Wall
                                         to establish complete inner control system and
                                         funds management system within lawful
                                         authority.

                                         In view of the fact that the houses rented by Sino
                                         Great Wall and it’s son subsidiaries, subsidiaries,
                                         haven’t rental registration, I promise, if Sino
                              Cash                                                                                  Strict
                                         Great Wall and its son subsidiaries, subsidiaries,     March
                   Chen Lve   comp                                                                        Long term perfo
                                         were penalized by real estate management               19,2015
                              ensation                                                                              rming
                                         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
                              Cash       Hotel (hereinafter referred to as “Libo project”)                        Strict
                                                                                                March
                   Chen Lve   comp       which the company contracted before the bidding                  Long term perfo
                                                                                                19,2015
                              ensation   process. Sino Great Wall is not involved in any                            rming
                                         other projects except for Libo project before
                                         bidding process. As to the violating issues existed
                                         in the Libo project, I promise as follows: if Sino



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                                         Great Wall got penalized by government
                                         administration departments or suffered any
                                         economic loss resulted from it, I will compensate
                                         the company by cash; Meanwhile, I, within lawful
                                         authority, will also promise to urge the company
                                         to undertake related construction projects legally
                                         so as to avoid violating issues happened before
                                         implementation of bidding process, i.e., at the
                                         time for construction again.

                                         1. Up to October 13th,2014, the related expenses
                                         of the litigation and arbitration cases, including
                                         the actual price, compensation, penalty, ligation
                                         costs, etc. which the parent-subsidiary companies
                                         of Sino Great Wall needs to pay caused by the
                                         final results of ligation and arbitration cases,
                              Cash       exceed the amount of liabilities which recognized                         Strict
                                                                                               March
                   Chen Lve   comp       in the “Audit Report” made for Sino Great Wall                Long term perfo
                                                                                               19,2015
                              ensation   by Ruihua CPA (Special Ordinary Partnership) on                           rming
                                         the basis of the audit base day of July 31st, 2014,
                                         I promise to bear the balance by cash
                                         unconditionally so as to guarantee the
                                         parent-subsidiaries of Sino Great Wall won’t
                                         suffer any loss. 2. This commitment letter is
                                         irrevocable.

                                         1. On condition that ownership defect exists in the
                                         lease of house property of parent-subsidiary
                                         companies of Sino Great Wall and its subsidiary
                                         corporation, which resulted in inability for
                                         parent-subsidiary companies of Sino Great Wall
                                         and its subsidiary corporation to continue leasing
                                         this house property but having to relocate, or
                                         parent-subsidiary companies of Sino Great Wall
                                         and its subsidiary corporation can’t timely find
                              Cash                                                                                 Strict
                                         suitable workplace for lawful operation in related March
                   Chen Lve   comp                                                                       Long term perfo
                                         area, I will undertake to compensate by cash for      19,2015
                              ensation                                                                             rming
                                         parent-subsidiary companies of Sino Great Wall’s
                                         losses which are caused by operation and finance
                                         due to the above-mentioned matters. 2. I
                                         undertake to unconditionally bear the relevant
                                         fines by cash for parent-subsidiary companies of
                                         Sino Great Wall on condition that the rental house
                                         property of parent-subsidiary companies of Sino
                                         Great Wall and its subsidiary corporation is in
                                         absence of handling procedures for filing house

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                                         leasing ,which resulted in that parent-subsidiary
                                         companies of Sino Great Wall and its subsidiary
                                         corporation are fined by property administrative
                                         department. 3.The commitment letter is
                                         irrevocable.

                                         “In condition that parent-subsidiary companies of
                                         Sino Great Wall or its son subsidiary haven’t paid
                                         social security or housing fund for staff according
                                         to law, which resulted in any losses to Sino Great
                                         Wall , including the competent authorities’
                              Cash                                                                                 Strict
                                         requirement for Sino Great Wall or its subsidiary March
                   Chen Lve   comp                                                                       Long term perfo
                                         to make supplementary payment, to be punished         19,2015
                              ensation                                                                             rming
                                         and resourced, I will bear by full-amount cash for
                                         the fee of supplemental payment and the expense
                                         and fee for being punished or resourced, which is
                                         to guarantee Sino Great Wall and its subsidiary to
                                         avoid suffering.

                                         “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
                              Cash       Construction Land Planning ”with                                         Strict
                                                                                               March
                   Chen Lve   comp       No.2014-08-001 approved and issued by                           Long term perfo
                                                                                               19,2015
                              ensation   Yongqiao District, Suzhou City’s housing and                             rming
                                         rural construction bureau, of which other
                                         examination and approval procedures of
                                         construction are in the process of handling “I
                                         undertake to actively supervise and urge Suzhou
                                         Lvbang on handling procedures of the approval
                                         process involved with factor refurnishing and
                                         reconstruction, and which is suffered from
                                         administrative punishment by relevant competent
                                         authorities in reason of claiming certificate of
                                         title, or in which any dispute or controversy exist
                                         in construction and ownership, which shall be my
                                         responsibility to carry out solution, and I

                                                            13
Sino Great Wall Co., Ltd.                                                                 The Third Quarterly Report 2016


                                          undertake to compensate by cash for Suzhou
                                          Lvbang’s losses which are due to this matter,
                                          guaranteeing no losses occur to Sino Great Wand
                                          Suzhou Lvbang for this matter. ”

                                          “According to the “Agreement of Significant
                                          Asset Replacement and Issue of Share to Buy
                                          Asset”(hereinafter referred to as “Agreement”)
                                          signed among Victor Onward Holdings, all
                                          shareholders of Sino Great Wall and Union
                                          Development Group Co., Ltd (hereinafter referred
                                          to as“ Union Group”) on October 13, 2014, all the
                                          creditor’s rights and liabilities related to place-out
                                          asset before the delivery date of Victor Onward
                                          Holdings shall be Union Group’s responsibility to
                                          carry out solution; After the asset delivery date, if
                                          any losses occur to Victor Onward Holdings in
                               Cash       reason of the liability transfer of asset delivery,                           Strict
                                                                                                    March
                   Chen Lve    comp       personnel placement, unsettled dispute or                           Long term perfo
                                                                                                    19,2015
                               ensation   controversy and other compensation related to                                 rming
                                          place-out asset, payment obligation and
                                          punishment, Union Group or the specified third
                                          party shall sufficiently compensate all losses for
                                          Victor Onward Holdings for the above matters. I
                                          undertake, if Union Group and the specified third
                                          party refuse to compensate the losses caused by
                                          the above mentioned matters for Victor Onward
                                          Holdings according to the“ Agreement”, I will
                                          compensate by cash for the Victor Onward
                                          Company within 5 working day in advance.
                                          Meanwhile, I will reserve the resource rights for
                                          Union Group and the specified third party.

                                          According to“ Agreement of Shenzhen Victor
                                          Onward Textile Industrial Co., Ltd., Chen Lve
                                          and He Feiyan Concerning on Performance
                                          Compensation” and its supplemental agreement ,
                                          Chen Lve’s promised Sino Great Wall that the net
                               Perfor
                                          profit deducted by incidental losses and                                      Strict
                   Chen Lve,   mance                                                                May
                                          attributable to the parent companies’ owners after                 Long term perfo
                   He Feiyan   comm                                                                 11,2015
                                          audition of 2015, 2016 and 2017 shall be                                      rming
                               itment
                                          respectively more than RMB 345.8 million, RMB
                                          438.5 million and RMB 538.2 million. If the net
                                          profit of Sino Great Wall is less than the promised
                                          net profit mentioned above , Chen Lve and He
                                          Feiyan will compensate for listed company in

                                                             14
Sino Great Wall Co., Ltd.                                                                  The Third Quarterly Report 2016


                                            accordance with “Performance Compensation
                                            Agreement” and its supplemental agreement.

                                            1. This reorganization is planned to place in asset.
                                            At present, complete separation has existed
                                            between me or other enterprises under my
                                            possession (if any) and the listed company in
                                            staff, asset, finance, institution and business of
                                            Sino Great Wall. Independence exists in both
                                            staff, asset, finance, institution and business and
                                            no confusion exists. 2. I undertake, after this
                   Chen Lve;
                                            reorganization, to ensure the continued complete
                   He Feiyan,
                                            separation between me or other enterprises under
                   Wuxi
                                            my possession(if any) and the listed company in
                   Hengtai
                                            staff, asset, finance, institution and business,
                   Jiuding
                                            sustaining the independence in the listed
                   AssetsMana
                                            company’s staff, asset, finance, institution and
                   gement
                                            business, as follows: (1).The Ensurance of
                   Centre
                                            Independence for Listed Company’s Personnel
                   (LP);Yan
                                            Ensure that the general manager, the vice-general
                   tai
                                            manger, the chief financial officer, the board
                   Zhaoxuan
                                 Independe secretary and the senior executives of the
                   Yuantai
                                 nce,       Company only accept salary in listed company,
                   Jiuding                                                                                               Strict
                                 competitio including no holding of any post except director       September
                   Venture                                                                                     Long term perfo
                                 n in the   and supervisor in my enterprise or other                30,2015
                   Investment                                                                                            rming
                                 same       enterprises under my possession. 2.Ensure the
                   Centre
                                 industry   complete independence exists among the listed
                   (LP);Suz
                                            company’s labor, personnel, and salary
                   hou Taiyao
                                            management and me. 3. The director, supervisor,
                   Zhongshan
                                            general manager and other senior executives
                   Jiuding
                                            recommended by me have all been through the
                   Investment
                                            legal procedures, and I will not intervene the
                   Centre
                                            company’s board and the shareholder’s decision
                   (LP);Jiax
                                            for appointing and dismissing personnel by
                   ing Jiahe
                                            exercising official power. (2)The Ensurance of the
                   Jiuding
                                            Asset Independence of Listed Company 1.Ensure
                   Investment
                                            that the listed company possesses business system
                   Centre(LP)
                                            related to operation and the relevant
                                            completely-independent asset. 2.Ensure that no
                                            occupation of mine exists in capitals and assets of
                                            the listed company. 3.The Ensurance of the
                                            Financial Independence of Listed Company
                                            1.Ensure that the independent finance department
                                            and the independent financial calculating system
                                            set up by the listed company, which possess


                                                               15
Sino Great Wall Co., Ltd.                                                     The Third Quarterly Report 2016


                            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. 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


                                               16
Sino Great Wall Co., Ltd.                                                                      The Third Quarterly Report 2016


                                              document "

                                              “1.Before this reorganization, the fairness and
                                              reasonableness of pricing and the legitimacy and
                                              effectiveness of decision-making procedure exist
                                              in the transaction(if any) between me or the
                   Wuxi
                                              enterprise under my possession(if any) and Sino
                   Hengtai
                                              Great Wall which is planned to place asset in, no
                   Jiuding
                                              related transaction with obvious unfairness
                   Assets
                                              exists ; 2.After this reorganization, I or the
                   Managemen
                                              enterprise under my possession will avoid and
                   t Centre
                                              reduce the related transaction with listed company
                   (LP);
                                              as much as possible. As for any unavoidable or
                   Yantai
                                              reasonable related transaction, I or the enterprise
                   Zhaoxuan
                                              under my possession will sign the agreement
                   Yuantai
                                              according to laws and fulfill the lawful procedure,
                   Jiuding
                                   Relate     and fulfill relevant approval procedure for internal                         Strict
                   Venture                                                                             March
                                   transaction decision-making and timely fulfill the obligation                 Long term perfo
                   Investment                                                                          19,2015
                                   s          of disclosing information according to law,                                  rming
                   Centre
                                              following relevant laws, regulations, other
                   (LP);Suz
                                              normative documents and articles of listed
                   hou Tianyao
                                              company, which is to guarantee the fairness and
                   Zhongshan
                                              reasonableness in related transaction pricing, to
                   JiudingInves
                                              guarantee the fairness of transaction condition and
                   tment Centre
                                              to guarantee not to utilize the related transaction
                   (LP);
                                              to illegally transfer the capital and profit of listed
                   Jiaxing Jiahe
                                              company, and not to utilize this transaction to
                   Jiuding
                                              engage in any behaviors which will cause any
                   Investment
                                              losses to listed company or other shareholder’s
                   Centre(LP)
                                              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
                   Union                      District and the expected compensations, as well
                                                                                                                           Strict
                   Developmen Income          as the expected compensations concerning to the          March
                                                                                                                 Long term perfo
                   t Group Co., disposal      regaining of plots planned as schools within the         19,2015
                                                                                                                           rming
                   Ltd                        right of land use of Nanyou Industrial Park of
                                              Nanshan District have not been recorded in the
                                              assessment. Therefore, Union Group promises
                                              that after the reorganization, if Union or a third
                                              party appointed by Union receives compensations

                                                                 17
Sino Great Wall Co., Ltd.                                                                    The Third Quarterly Report 2016


                                             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 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 Onward
                   Union
                                  Cash       Co. Ltd.. and Sino Great Wall, Victor Onward                              Strict
                   Developmen                                                                      March
                                  compensat Holdings should obtain the letter of approval                    Long term perfo
                   t Group Co.,                                                                    19,2015
                                  ion        concerning the transferred debts of the disposed                          rming
                   Ltd
                                             assets from the creditor (including the guarantee,
                                             similarly hereinafter) before the date of assets
                                             delivery. In the situation of debts on Victor
                                             Onward Holdings due to the absence of creditor’s
                                             consent, the company or the third party appointed


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


                            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 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


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


                                       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.

Equity incentive
                       No              No                                                         No        No
commitment

Other commitments
made to minority       No
shareholders

Executed timely or
                       No              No                                                         No        No
not?

If the commitments
failed to complete
the execution when
expired, should
specifically explain Yes
the reasons of
unfulfillment and
the net stage of the
working plan


IV.Prediction of Business performance for 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




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



V. Investment in securities
□ Applicable √Not applicable

No Securities investment in period
VI. Investment in derivatives
□ Applicable √Not applicable
There is no derivative investment during the report period.
VII. Registration form of such Activities as Reception, Research, Communication, Interview in the
Reporting Period
√Applicable □Not applicable

       Reception time                 Way of reception        Types of visitors                  Basic index

                                                                                  The interactive relation with the
                                                                                  investors on Shenzhen Stock Exchange
                                                                                  platform about Sino Great Wall
September 2,2016                Onsite investigation     Organization
                                                                                  International Engineering Co., Ltd:
                                                                                  Record of the investors relations
                                                                                  activities on September 2, 2016

VIII. Outward Guarantee against the Regulations
□ Applicable √ Not applicable
The Company had no guarantee outside against the regulation in the reporting period.

IX. Non-operational Occupancy of the Company’s Capital by the Controlling Shareholder and its Related
Parties
□ Applicable √ Not applicable

The Company had no non-operational fund occupation from controlling shareholders and its related party.




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



                                            IV. Financial Statement
I. Financial statement

1. Consolidated balance sheet

Prepared by:Sino Great Wall Co., Ltd.



                                                                                                               In RMB
                     Items                       Year-end balance                          Year-beginning balance

               Current asset:

               Monetary fund                                    974,281,429.82                            695,384,561.31

             Settlement provision

Outgoing call loan

  Financial assets measured at fair value
with variations accounted into current                              57,000,000.00                           1,102,961.04
income account

     Derivative financial assets

 Bill receivable                                                204,013,167.36                            220,448,747.94

 Account receivable                                           3,450,378,757.45                          2,352,808,087.33

  Prepayments                                                   169,726,021.06                             77,707,568.38

 Insurance receivable

Reinsurance receivable

Provisions of Reinsurance contracts
receivable

  Interest receivable

  Dividend receivable

 Other account receivable                                       822,416,213.32                            239,952,886.10

 Repurchasing of financial assets

 Inventories                                                    250,298,204.27                            168,133,668.91

  Assets held for sales

  Non-current asset due in 1 year                                   11,671,031.71                          15,717,270.60

  Other current asset                                               22,415,816.26                          14,138,411.87

Total of current assets                                       5,962,200,641.25                          3,785,394,163.48

Non-current assets:

Loans and payment on other’s behalf
disbursed



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


  Disposable financial asset

  Expired investment in possess

 Long-term receivable                                 55,097,848.16

 Long term share equity investment

 Property investment

  Fixed assets                                       102,651,662.49                          43,846,215.63

  Construction in progress                              2,347,992.64                         10,016,928.24

Engineering material

  Fixed asset disposal

  Production physical assets

 Gas & petrol

 Intangible assets                                   106,552,647.79                            9,267,746.33

 R & D petrol

 Goodwill                                             51,930,609.93                            6,724,316.91

Long-germ expenses to be amortized                    40,849,015.56                          18,909,785.69

Deferred income tax asset                             63,918,582.37                          47,950,278.07

 Other non-current asset                              89,430,794.15                          95,353,390.28

Total of non-current assets                          512,779,153.09                         232,068,661.15

Total of assets                                     6,474,979,794.34                       4,017,462,824.63

Current liabilities

  Short-term loans                                  1,639,271,777.92                        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                                       559,111,364.29                         143,410,167.17

  Account payable                                   1,022,563,948.28                       1,332,619,954.77

 Advance payment                                      67,211,464.35                          64,963,842.60

 Selling of repurchased financial assets

Fees and commissions receivable

 Employees’ wage payable                             25,664,211.27                          12,669,619.20

 Tax payable                                         268,199,347.25                         284,826,290.11


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


 Interest payable                               9,093,407.53                             527,969.26

 Dividend payable

  Other account payable                       211,602,174.99                         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                                                     7,135,752.00

Other current liability

Total of current liability                  3,802,717,695.88                        2,706,763,067.78

Non-current liabilities:

  Long-term loan                              988,390,314.20                          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           27,968,418.34                              15,444.16

Other non-current liabilities

Total non-current liabilities               1,016,358,732.54                          30,156,093.30

Total of liability                          4,819,076,428.42                        2,736,919,161.08

Owners’ equity

          Share capital                     1,698,245,011.00                         446,906,582.00

      Other equity instrument

  Including:preferred stock

  Sustainable debt

 Capital reserves                           -1,301,706,291.22                         -50,367,862.22

  Less:Shares in stock

Other comprehensive income




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


Special reserves                                                              70,580,945.36                            46,014,941.54

  Surplus reserves                                                            84,559,993.43                            84,394,441.23

 Common risk provision

Undistributed profit                                                       1,059,910,043.76                           755,308,636.19

Total of owner’s equity belong to the
                                                                           1,611,589,702.33                         1,282,256,738.74
parent company

Minority shareholders’ equity                                                44,313,663.59                            -1,713,075.19

Total of owners’ equity                                                   1,655,903,365.92                         1,280,543,663.55

Total of liabilities and owners’ equity                                   6,474,979,794.34                         4,017,462,824.63


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


2.Parent Company Balance Sheet

                                                                                                                                In RMB

                      Items                                   Year-end balance                         Year-beginning balance

Current asset:

Monetary fund                                                                169,024,682.99                           239,145,251.31

Financial assets measured at fair value with
variations accounted into current income                                      57,000,000.00
account

Derivative financial assets

 Bill receivable

 Account receivable                                                                                                        29,083.30

  Prepayments                                                                    1,750,000.00

  Interest receivable

  Dividend receivable

Other account receivable                                                   1,607,187,959.91

  Inventories

Assets held for sales

  Non-current asset due in 1 year

Other current asset

Total of current assets                                                    1,834,962,642.90                           239,174,334.61

Non-current assets:

  Disposable financial asset

Expired investment in possess



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


 Long-term receivable

 Long term share equity investment                  3,225,411,536.66                       3,079,451,536.66

 Property investment

  Fixed assets                                              4,564.75

  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                    26,946,437.92

Differed income tax asset                                    382.68                                 382.68

 Other non-current asset

Total of non-current assets                         3,252,362,922.01                       3,079,451,919.34

Total of assets                                     5,087,325,564.91                       3,318,626,253.95

Current liabilities

  Short-term loans                                  1,030,000,000.00

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

  Bill payable                                        68,000,000.00

  Account payable

 Advance payment

 Employees’ wage payable                               1,301,612.65

 Tax payable                                          96,216,766.56                          98,150,372.30

 Interest payable                                       7,838,055.56

 Dividend payable

  Other account payable                               13,067,268.86                             803,339.56

  Liabilities held for sales

Non-current liability due in 1 year

Other current liability

Total of current liability                          1,216,423,703.63                          98,953,711.86


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


Non-current liabilities:

  Long-term loan                                                   700,000,000.00

 Bond payable

Including:preferred stock

                Sustainable debt

  Long-term payable

  Employees’ wage Long-term payable

     Special payable

 Expected liabilities

Differed income

Differed income tax liability

  Other non-current liabilities

Total of Non-current liabilities                                   700,000,000.00

Total of liability                                              1,916,423,703.63                            98,953,711.86

Owners’ equity

        Share capital                                           1,698,245,011.00                           446,906,582.00

Other equity instrument

Including:preferred stock

                Sustainable debt

 Capital reserves                                               1,237,956,472.37                         2,489,294,901.37

  Less:Shares in stock

Other comprehensive income

Special reserves

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

Undistributed profit                                               208,391,090.91                          257,161,771.72

Total of owners’ equity                                        3,170,901,861.28                         3,219,672,542.09

Total of liabilities and owners’ equity                        5,087,325,564.91                         3,318,626,253.95


3.Consolidated Profit statement of the Report period



                                                                                                                  In RMB



                     Items                 Amount in this period                          Amount in last period

I. Income from the key business                             1,280,022,467.68                               835,406,170.68



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


Incl:Business income                           1,280,022,467.68                        835,406,170.68

Interest income

Insurance fee earned

Fee and commission received

II. Total business cost                         1,155,267,384.61                        737,452,024.90

Incl:Business cost                              992,050,637.18                         653,438,691.27

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                         2,669.37                         12,308,366.66

     Sales expense                                  9,107,275.25                           3,036,106.61

Administrative expense                            83,946,453.38                          43,085,998.98

Financial expenses                                36,456,693.08                            6,297,639.29

Asset impairment loss                             33,703,656.35                          19,285,222.09

Add:Gains from change of fir value
                                                                                              6,785.75
(“-”for loss)

Investment gain(“-”for loss)                     198,394.59

Incl: investment gains from affiliates

Gains from currency exchange(“-”for
loss)

III. Operational profit(“-”for loss           124,953,477.66                          97,960,931.53

Add:Non-business income                                2,853.16                             26,319.77

Incl:Gains from disposal of non-current

assets

     Less:Non business expenses                     136,668.00                             938,228.42

Incl:Loss from disposal of non-current

assets

IV.Total profit(“-”for loss)                   124,819,662.82                          97,049,022.88

 Less:Income tax expenses                        24,244,602.31                          19,880,805.19

V. Net profit(“-”for net loss                 100,575,060.51                          77,168,217.69




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


Net profit attributable to the owners of
                                                       100,866,553.43                         77,186,010.32
parent company

  Minority shareholders’ equity                          -291,492.92                             -17,792.63

VI. Net after-tax of Other
                                                                                                   6,742.31
comprehensive income

Net                                   after-tax
of other comprehensive income attribut                                                             6,742.31
able to owners of the parent 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 th
e equity method investee can not be recl
assified into profit or loss.

(II)
Other comprehensive income that will b                                                             6,742.31
e reclassified into profit or loss.

1.Other comprehensive income under th
e equity method investee can be reclassi
fied into profit or loss.

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

3.Held-to-maturity investments reclassif
ied to gains and losses of available for s
ale financial assets

4.The effective portion of cash flow hed
ges and losses

5.Translation differences in currency fin
                                                                                                   6,742.31
ancial statements

6.Other

Net

after-tax of other comprehensive incom

e attributable to Minority shareholders’

equity

VII. Total comprehensive income                        100,575,060.51                         77,174,960.00

Total comprehensive income                             100,866,553.43                         77,192,752.63


                                                  29
Sino Great Wall Co., Ltd.                                                                        The Third Quarterly Report 2016


attributable to the owner of the parent
company

 Total comprehensive income
                                                                            -291,492.92                                         -17,792.63
attributable minority shareholders

VIII. Earnings per share

(I)Basic earnings per share                                                      0.0594                                          0.0454

 (II)Diluted earnings per share                                                    0.0594                                          0.0454

The current business combination under common control, the net profits of the combined party before achieved ne
t profit of RMB 0, last period the combined party realized RMB 0.

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


4.Income statement of the Parent Company of the Report period

                                                                                                                                   In RMB

                    Items                               Amount in this period                           Amount in last period

I. Income from the key business                                                  57,684.88                                      329,131.00

Incl:Business cost                                                                   0.00                                       28,098.18

Business tax and surcharge                                                                                                        1,115.28

Sales expense

Administrative expense                                                    14,974,573.46                                         580,403.79

Financial expenses                                                        26,748,737.27                                         -87,300.56

Asset impairment loss                                                                                                           -14,568.79

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

Investment gain(“-”for loss)                                                198,394.59                               383,969,705.11

Incl: investment gains from affiliates

II. Operational profit(“-”for loss                                    -41,467,231.26                                  383,791,088.21

Add:Non-business income                                                              1.00                                68,036,587.28

Incl:Gains from disposal of non-current
assets

Less:Non business expenses

Incl:Loss from disposal of non-current
assets

III.Total profit(“-”for loss)                                          -41,467,230.26                                  451,827,675.49

 Less:Income tax expenses                                                                                               108,609,278.25

IV. Net profit(“-”for net loss)                                      -41,467,230.26                                  343,218,397.24




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


V. Net after-tax of Other comprehensive
                                                                                                              -40,084.00
income

(I)Other comprehensive income items
that will not be reclassified into
                                                                                                              -40,084.00
gains/losses in the subsequent
accounting period

1.Re-measurement of defined benefit pl
                                                                                                              -40,084.00
ans of changes in net debt or net assets

2.Other comprehensive income under th
e equity method investee can not be recl
assified into profit or loss.

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

1.Other comprehensive income under th
e equity method investee can be reclassi
fied into profit or loss.

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

3.Held-to-maturity investments reclassif
ied to gains and losses of available for s
ale financial assets

4.The effective portion of cash flow hed
ges and losses

5.Translation differences in currency fin
ancial statements

6.Other

VI. Total comprehensive income                                 -41,467,230.26                          343,178,313.24

VII. Earnings per share:

(I)Basic earnings per share

 (II)Diluted earnings per share


5. Consolidated income statement between the beginning of the year and end of the report period


                                                                                                   In RMB



                    Items                    Amount in this period                    Amount in last period

I. Total operating income                                    3,233,597,223.19                        2,916,615,389.84

Including:Operating income                                  3,233,597,223.19                        2,916,615,389.84


                                                        31
Sino Great Wall Co., Ltd.                                       The Third Quarterly Report 2016


      Interest income

         Insurance gained

Commission charge and commission
income

II. Total operating cost                     2,895,825,957.45                       2,592,522,742.77

Including:Operating cost                    2,452,777,768.51                       2,344,122,874.48

Interest expense

Commission chare and commission
expense

Cash surrender value

Net amount of expense of compensation

Net amount of withdrawal of insurance

contract reserve

Bonus expense of guarantee slip

 Reinsurance expense

Operating tax and extras                         9,029,321.48                         56,906,003.26

Sales expenses                                 18,366,539.49                           10,539,011.91

Administration expenses                       196,940,207.67                         107,924,317.65

Financial expenses                            106,481,367.68                          24,205,661.13

Losses of devaluation of assets               112,230,752.62                          48,824,874.34

Add :Changing income of fair value                                                       31,934.36

 Investment income                                245,263.08

Including:Investment income on
 affiliate company and joint venture

Exchange income

III. Operating profit                         338,016,528.82                         324,124,581.43

     Add :Non-operating income                29,136,122.16                             405,739.61

         Including :Disposal Gains of

non-current assets

Less:Non-operating expense                      2,892,580.00                            971,667.76

         Including :Disposal loss of
                                                                                          31,839.34
non-current assets

IV. Total profit                              364,260,070.98                         323,558,653.28

Less:Income tax                               62,107,362.14                          81,048,094.46




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



V. Net profit(“-”for net loss                  302,152,708.84                        242,510,558.82

Net profit attributable to the owners of
                                                  303,165,970.06                        242,528,351.45
parent company

Minority shareholders’ equity                     -1,013,261.22                             -17,792.63

VI. Net after-tax of Other
                                                                                             18,867.42
comprehensive income

Net                after-tax            of
other comprehensive income attributabl                                                       18,867.42
e to owners of the parent 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 th
e equity method investee can not be recl
assified into profit or loss.

(II)
Other comprehensive income that will b                                                       18,867.42
e reclassified into profit or loss.

1.Other comprehensive income under th
e equity method investee can be reclassi
fied into profit or loss.

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

3.Held-to-maturity investments reclassif
ied to gains and losses of available for s
ale financial assets

4.The effective portion of cash flow hed
ges and losses

5.Translation differences in currency fin
                                                                                             18,867.42
ancial statements

6.Other

Net after-tax of
other comprehensive income attributabl
e to Minority shareholders’ equity

VII. Total comprehensive income                   302,152,708.84                        242,529,426.24

Total comprehensive income                        303,165,970.06                        242,547,218.87


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


attributable to the owner of the parent
company

 Total comprehensive income
                                                                      -1,013,261.22                                     -17,792.63
attributable minority shareholders

VIII. Earnings per share

(I)Basic earnings per share                                                 0.1785                                       0.1428

 (II)Diluted earnings per share                                               0.1785                                       0.1428

The current business combination under common control, the net profits of the combined party before achieved net profit of RMB 0,
last period the combined party realized RMB 0.


6.Income Statement of the Parent Between the Beginning of the Year and End of the Report Period

                                                                                                                           In RMB



                    Items                          Amount in this period                        Amount in last period

I. Business income                                                         173,625.22                               2,246,511.00

Less:Business cost                                                              0.00                                   196,684.18

Business tax and surcharge                                                                                              150,843.28

Sales expense

Administrative expense                                                28,760,269.39                                 3,716,096.79

Financial expenses                                                    46,699,345.93                                  -953,917.56

Asset impairment loss                                                       -1,530.70                                   -14,568.79

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

Investment gain(“-”for loss)                                           198,394.59                            383,969,705.11

Incl: investment gains from affiliates

II. Operational profit                                               -75,086,064.81                              383,121,078.21

Add:Non-business income                                              29,071,296.00                               68,036,587.28

Incl:Gains from disposal of non-current
assets

Less:Non business expenses                                            2,755,912.00

Incl:Loss from disposal of non-current
assets

III.Total profit                                                     -48,770,680.81                              451,157,665.49

Less:Income tax expenses                                                                                        108,609,278.25

IV. Net profit)                                                     -48,770,680.81                              342,548,387.24

V. Net after-tax of Other comprehensive


                                                               34
Sino Great Wall Co., Ltd.                                                        The Third Quarterly Report 2016


income

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

1.Re-measurement of defined benefit pl
ans of changes in net debt or net assets

2.Other comprehensive income under th
e equity method investee can not be recl
assified into profit or loss.

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

1.Other comprehensive income under th
e equity method investee can be reclassi
fied into profit or loss.

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

3.Held-to-maturity investments reclassif
ied to gains and losses of available for s
ale financial assets

4.The effective portion of cash flow hed
ges and losses

5.Translation differences in currency fin
ancial statements

6.Other

VI. Total comprehensive income                                  -48,770,680.81                          342,548,387.24

VII. Earnings per share

(I)Basic earnings per share

 (II)Diluted earnings per share


7. Consolidated Cash Flow Statement Between the Beginning of the Year and End of the Report Period

                                                                                                               In RMB



                    Items                    Amount in this period                     Amount in last period

I.Cash flows from operating activities

 Cash received from sales of goods or
                                                              1,566,047,153.44                        1,379,577,878.41
           rending of services


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


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 trade financial asset
disposal

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
                                                 1,459,745,529.77                         349,234,449.67
operation

Sub-total of cash inflow                         3,025,792,683.21                        1,728,812,328.08

Cash paid for purchasing of
                                                 2,052,349,873.63                        1,566,480,512.18
merchandise and services

Net increase of client trade and advance

Net increase of savings n central bank
and brother company

Cash paid for original contract claim

Cash paid for interest, processing fee
and commission

Cash paid for policy dividend

Cash paid to staffs or paid for staffs             201,703,377.78                         156,672,144.42

 Taxes paid                                         90,940,394.34                         120,883,336.29

Other cash paid for business activities          2,367,137,862.93                         212,347,665.70

Sub-total of cash outflow from business
                                                 4,712,131,508.68                        2,056,383,658.59
  activities

Cash flow generated by business
                                                 -1,686,338,825.47                        -327,571,330.51
operation, net



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


II.Cash flow generated by investing

Cash received from investment
                                                    12,800,000.00
retrieving

Cash received as investment gains                     9,348,224.12

Net cash retrieved from disposal of
fixed assets, intangible assets, and other                                                     89,678.00
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
                                                    22,148,224.12                              89,678.00
investment activities

Cash paid for construction of
fixed assets, intangible assets                     26,012,757.28                          35,996,053.16
and other long-term assets

Cash paid as investment                             57,000,000.00

Net increase of loan against pledge

Net cash received from subsidiaries and
                                                   119,000,000.00
other operational units

Other cash paid for investment
                                                    75,690,494.84                               3,884.29
activities

Sub-total of cash outflow due to
                                                   277,703,252.12                          35,999,937.45
investment activities

Net cash flow generated by investment             -255,555,028.00                          -35,910,259.45

III.Cash flow generated by financing

Cash received as investment                         47,040,000.00

Incl: Cash received as investment from
minor shareholders

Cash received as loans                            2,801,778,902.00                        572,000,000.00

Cash received from bond placing

Other financing –related ash received              97,929,280.00                         168,190,000.00

Sub-total of cash inflow from financing
                                                  2,946,748,182.00                        740,190,000.00
activities

Cash to repay debts                                524,886,086.94                         387,220,050.95

Cash paid as dividend, profit, or
                                                    71,424,769.43                          22,094,169.18
interests

Incl: Dividend and profit paid by


                                             37
Sino Great Wall Co., Ltd.                                                       The Third Quarterly Report 2016


subsidiaries to minor shareholders

Other cash paid for financing activities                      524,616,889.26                            95,461,627.00

Sub-total of cash outflow due to
                                                            1,120,927,745.63                           504,775,847.13
financing activities

Net cash flow generated by financing                        1,825,820,436.37                           235,414,152.87

IV. Influence of exchange rate
                                                                1,569,103.98                            -2,820,849.71
alternation on cash and cash equivalents

V.Net increase of cash and cash
                                                             -114,504,313.12                          -130,888,286.80
equivalents

Add: balance of cash and cash
                                                              721,711,757.85                           243,759,954.90
equivalents at the beginning of term

VI ..Balance of cash and cash
                                                              607,207,444.73                           112,871,668.10
equivalents at the end of term


8. Cash Flow Statement of the Parent Between the Beginning of the Year and End of the Report Period

                                                                                                                 In RMB

                  Items                    Amount in this period                      Amount in last period

I.Cash flows from operating activities

Cash received from sales of goods or
                                                                   203,303.00                            2,246,511.00
rending of services

Tax returned

Other cash received from business
                                                              642,263,080.59                             2,287,234.95
operation

Sub-total of cash inflow                                      642,466,383.59                             4,533,745.95

Cash paid for purchasing of
merchandise and services

Cash paid to staffs or paid for staffs                             265,325.38                            1,026,970.10

Taxes paid                                                      1,492,300.15                                  908,947.67

Other cash paid for business activities                     2,197,137,918.45                             4,031,645.42

Sub-total of cash outflow from business
                                                            2,198,895,543.98                             5,967,563.19
  activities

Cash flow generated by business
                                                            -1,556,429,160.39                           -1,433,817.24
operation, net

II.Cash flow generated by investing

Cash received from investment
retrieving

Cash received as investment gains                                  198,394.59


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


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                                                         40,084.65

Sub-total of cash inflow due to
                                                       198,394.59                              40,084.65
investment activities

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

Cash paid as investment                             57,000,000.00

Net cash received from subsidiaries and
                                                   145,960,000.00
other operational units

Other cash paid for investment
                                                        39,897.60                            7,079,094.11
activities

Sub-total of cash outflow due to
                                                   202,999,897.60                            7,079,094.11
investment activities

Net cash flow generated by investment             -202,801,503.01                           -7,039,009.46

III.Cash flow generated by financing

Cash received as investment

Cash received as loans                            1,810,000,000.00

Cash received from bond placing

Other financing –related ash received

Sub-total of cash inflow from financing
                                                  1,810,000,000.00
activities

  Cash to repay debts                               80,000,000.00

Cash paid as dividend, profit, or
                                                    40,889,904.92
interests

Other cash paid for financing activities

Sub-total of cash outflow due to
                                                   120,889,904.92
financing activities

Net cash flow generated by financing              1,689,110,095.08

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

V.Net increase of cash and cash
                                                    -70,120,568.32                          -8,472,826.70
equivalents



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


Add: balance of cash and cash
                                            239,145,251.31                           8,480,977.11
equivalents at the beginning of term

VI ..Balance of cash and cash
                                            169,024,682.99                              8,150.41
equivalents at the end of term

II. Auditor‘s report
Whether the Q3 report is audited
□ Yes √ No
The Q3 Report is not audited.




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