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神州长城(000018)公告正文

神州B:2016年年度报告(英文版)

公告日期:2017-04-28

                    Sino Great Wall Co., Ltd.   2016 Annual Report




Sino Great Wall Co., Ltd.

  2016 Annual Report




       April 2017




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                                                                      Sino Great Wall Co., Ltd.   2016 Annual Report




                   I. Important Notice, Table of Contents and Definitions

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


     Mr.Chen Lue , The Company leader, Mrs. Cui Hongli, Chief financial officer and the Mrs. Xian Zhijuan, 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 annual report.


All the directors attended the board meeting for reviewing the Annual Report.
BDO China Shu Lun Pan CPAs (Special General Partnership) has issued a standard unqualified audit report for
the company. In 2016,This annual report involves the forecasting description such as the future plans, and does
not constitute the actual commitments of the company to the investors. The investors should pay attention to the
investment risks.
     The company has detailedly described the possible risks existed in the company’s business operation and the
countermeasures, please refer to the contents about the possible risks for the company’s future development in the
fourth section-Discussion and Analysis of Business Operation in this report.
     The company's profit distribution plan for the year is: Based on the company's existing share capital of
1,698,245,011 shares, it’s proposed that the company will distribute cash dividend of RMB 0.60 per 10 shares (tax
inclusive), with no bonus shares and no increasing shares by converting capital reserves into share capital.




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                                                                    Sino Great Wall Co., Ltd.   2016 Annual Report



                                          Table of Contents




I.Important Notice, Table of contents and Definitions

II. Basic Information of the Company and Financial index

III. Outline of Company Business

IV. Management’s Discussion and Analysis

V. Important Events

VI. Change of share capital and shareholding of Principal Shareholders

VII. Situation of the Preferred Shares

VIII. Information about Directors, Supervisors and Senior Executives

IX. Administrative structure

X. Corporate Bond

XI. Financial Report

XII. Documents available for inspection




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                                                                      Sino Great Wall Co., Ltd.        2016 Annual Report




                                              Definition


              Terms to be defined      Refers to                                Definition

Company Law                            Refers to Company Law of the People’s Republic of China

Securities Law                         Refers to Securities Law of the People’s Republic of China

“CSRC”                               Refers to China Securities Regulatory Commission

Company,The Company, Sino Great Wall   Refers to Sino Great Wall Co., Ltd.

Sino International                     Refers to Sino Great Wall International Engineering Co., Ltd.

BDO                                    Refers to BDO China Shu Lun Pan Certified Public Accountants LLP

SZSE                                   Refers to Shenzhen Stock Exchange

Reporting period                       Refers to January 1,2016 to December 31,2016

Yatian Decoration                      Refers to Shenzhen Yatian Decoration Design Engineering Co., Ltd.

Union Development                      Refers to Union Development Group Co., Ltd.

Union Holdings                         Refers to Union Holdings Co., Ltd.

Rich Crown Investment                  Refers to Rich Crown Investment Co., Ltd.




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                                                                               Sino Great Wall Co., Ltd.       2016 Annual Report



                            II. Basic Information of the Company and Financial index
I.Company Information

Stock abbreviation:             Sino Great Wall      Sino-B              Stock code:                000018      200018

Change of stock Abbreviation
                                Nil
(If any)

Stock exchange for listing      Shenzhen Stock Exchange

Name in Chinese                 神州长城股份有限公司

Chinese Abbreviation            神州长城     神州 B

English name (If any)           Sino Great Wall Co., Ltd.

English Abbreviation (If any) Sino Great Wall        Sino-B

Registered address              26 Kuipeng Road, Kuiyong Town, Longgang District, Shenzhen

Postal code of the Registered
                                518119
Address

Office Address                  Sino Great Wall Building, No.3 Jinxiu Street,Economic Technology Development Zone , Beijing

Postal code of the office
                                100176
address

Internet Web Site               www.sgwde.com

E-mail                          000018sz@sina.com

II. Contact person and contact manner
                                                            Board secretary                  Securities affairs Representative

Name                                        Yang Chunling                               Liu Guofa

                                            Sino Great Wall Building, No.3 Jinxiu       Sino Great Wall Building, No.3 Jinxiu
Contact address                             Street,Economic Technology Development Street,Economic Technology Development
                                            Zone , Beijing                              Zone , Beijing

Tel                                         010-89045855                                010-89045855

Fax                                         010-89045856                                010-89045856

E-mail                                      1208806865@qq.com                           000018sz@sina.com


III. Information disclosure and placed


Newspapers selected by the Company for information
                                                       Securities Times and Hongkong Commercial Daily.
disclosure

Internet website designated by CSRC for publishing
                                                       http: // www.cninfo. com. cn
the Annual report of the Company

The place where the Annual report is prepared and      Secutities Department , Sino Great Wall Building, No.3 Jinxiu
placed                                                 Street,Economic Technology Development Zone , Beijing


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                                                                                 Sino Great Wall Co., Ltd.         2016 Annual Report


IV.Changes in Registration


Organization Code                           91440300618801483A

                                            On October 13, 2015, the company held the 26th board meeting of the sixth session
                                            board of directors, at which the Proposal on Alteration of the Company’s Business
                                            Scope was examined and approved. In the light of the major asset restructuring
                                            conducted by the company, the main business of the company shall be significantly
                                            changed. In order to meet the company’s development requirements, the company
                                            planned to change the company’s business scope to “Engineering design and
                                            construction, infrastructure investment, new energy construction and investment,
                                            medical    investment,    life   technology   research   and    development,    equipment
Changes in principal business activities
                                            manufacturing, defense equipment, financial investment and real estate development
since listing (if any)
                                            (Finally, the business scope shall be the business scope approved by the Administration
                                            for Industry and Commerce) from the original business scope of “Production and
                                            operation of the textile industry products and its required raw materials, accessories,
                                            machinery and equipment, all kinds of fabrics and clothing and providing related
                                            services(Do not contain the products included in the existing license management, if
                                            has a license, then it will execute by the license). The Proposal on Alteration of the
                                            Company’s Business Scope was examined and approved in the 2015 second
                                            extraordinary general shareholder meeting which was convened on October 29, 2015,

                                            On October 14, 2015, the company completed the share-issuing of a total of

                                            251,849,593 shares issued to 17 transaction objects such as Chen Lue for purchasing

                                            related assets, of which the issuing price is RMB 9.84 per share. Of which Chen Lue

                                            Holdings held 138,340,890 shares, taking for 32.86% of the company’s share capital,

                                            The Largest shareholder of the company was changed to Mr. Chen Lue form Union

                                            Holdings Co., Ltd.       And the actual controller of the Compnay was changed to Mr.

                                            Chen Lue    from Union Developemnt Co., Ltd.
                                            On Nov 27, 2015, the company completed the non-public share-issuing to purchase the
                                            assets and raise the matching funds. The total share quantity of the non-public
Changes is the controlling shareholder in
                                            share-issuing for raising funds is 25,914,633 shares, with issuing price of RMB 9.84
the past (is any)
                                            per share, of which Chen Lue subscribed 14,735,772 shares of the newly increasing
                                            shares. After completing the non-public share-issuing, the company’s total share capital
                                            shall be changed to 446,906,582 shares, of which Mr. Chen Lue holds 153,076,662
                                            shares, taking for 34.25% of the company’s total share capital, remained as the
                                            company’s actual controlling shareholder and the actual controller.

                                            On May 6,2016, the company held the sharelolders meeting in 2016, at which the

                                            Proposal concerning preplan for profit Distribution and Dividend Distribution for 2015

                                            o was examined and approved.upon the base of total share capital of 446,906,582
                                            shares on the date of December 31, 2015, 28 shares were increased for every 10 shares
                                            to all the shareholders by converting capital reserve into share capital, so the total share



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                                                                                     Sino Great Wall Co., Ltd.      2016 Annual Report


                                              capital were 1,698,245,011 shares after such share increasing by converting capital
                                              reserve into share capital. of which Mr. Chen Lue holds 582,944,556 shares, taking for
                                              34.33% of the company’s total share capital, remained as the company’s actual
                                              controlling shareholder and the actual controller.


V. Other Relevant Information

CPAs engaged

Name of the CPAs                       BDO China Shu Lun Pan Certified Public Accountants LLP

Office address:                       10/F of the No.7 Building, No16 Yard, Mid of West 4th Ring Road, Haidian DDistrict, Beijing

Names of the Certified Public
                                       Liao Jiahe, Xu Shibao
Accountants as the signatories

The sponsor performing persist ant supervision duties engaged by the Company in the reporting period.
√Applicable □Not applicable
         Sponsor name                       Office address                      Representatives        Period of supervision and guide

                                 6/F,A Unit, Fengming
Huatai United Securities Co.,    International Building, No.22,     Jia Chunhao, Mao Dawei, Wu         September 27, 2015 to
Ltd.                             Fengsheng Hutong, Xicheng              Wenmin                         December 31,2018
                                 District, Beijing

The Financial advisor performing persist ant supervision duties engaged by the Company in the reporting period
√ Applicable □Not applicable

         Advisor Name                       Office address                      Representatives        Period of supervision and guide

                                 6/F,A Unit, Fengming
Huatai United Securities Co.,    International Building, No.22,     Jia Chunhao, Mao Dawei, Wu         September 27, 2015 to
Ltd.                             Fengsheng Hutong, Xicheng              Wenmin                         December 31,2018
                                 District, Beijing


VI.Summary of Accounting data and Financial index

May the Company make retroactive adjustment or restatement of the accounting data of the previous years due to
change of the accounting policy and correction of accounting errors.
□Yes √No
                                                                                         Changed over last year
                                               2016                      2015                                            2014
                                                                                                  (%)

Operating Gross income(RMB)               4,664,999,117.17        4,010,358,999.58                       16.32%     2,754,684,893.91

Net profit attributable to the
shareholders of the listed company           473,661,862.67             346,648,651.48                     36.64%      186,857,504.45
(RMB)

Net profit after deducting of
                                             470,274,602.37             347,196,614.68                     35.45%      183,801,389.95
non-recurring gain/loss attributable


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                                                                                Sino Great Wall Co., Ltd.      2016 Annual Report


to the shareholders of listed
company(RMB)

Cash flow generated by business
                                       -1,687,875,813.94           -292,051,257.08                 -30.00%         163,847,389.34
operation, net(RMB)

Basic earning per
                                                       0.28                     0.4                -30.00%                       0.74
share(RMB/Share)

Diluted gains per
                                                       0.28                    0.40                -30.00%                       0.74
share(RMB/Share)(RMB/Share)

Net asset earning ratio(%)                     31.18%                      34.52%                   -3.34%              24.54%

                                                                    End of            Changed over last year
                                       End of 2016                                                              End of 2014
                                                                     2015                    (%)

Gross assets(RMB)                    7,986,178,961.63        4,017,462,824.63                       98.79%     2,447,572,750.57

Net assets attributable to
shareholders of the listed company     1,777,948,117.49        1,282,256,738.74                       38.66%       761,471,188.44
(RMB)


Ⅶ.The differences between domestic and international accounting standards

1.Simultaneously pursuant to both Chinese accounting standards and international accounting standards
disclosed in the financial reports of differences in net income and net assets.

□ Applicable √ Not applicable

2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and
Chinese accounting standards.

□ Applicable       √Not applicable

Ⅷ.Main Financial Index by Quarters

                                                                                                                          In RMB

                                       First quarter          Second quarter              Third quarter         Fourth quarter

Operating income                         924,667,155.55        1,028,907,599.96            1,280,022,467.68      1,431,401,893.98

Net profit attributable to the
                                          76,587,282.98            125,712,133.66            100,866,553.43        170,495,892.60
shareholders of the listed company

Net profit after deducting of
non-recurring gain/loss attributable
                                          76,587,282.98             99,349,882.17            100,801,973.68        193,535,463.54
to the shareholders of listed
company

Net Cash flow generated by
                                        -318,972,753.01            -937,643,206.19          -429,722,866.27         -1,536,988.47
business operation


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                                                                                Sino Great Wall Co., Ltd.    2016 Annual Report


Whether significant variances exist between the above financial index or the index with its sum and the financial
index of the quarterly report as well as semi-annual report index disclosed by the Company.
□ Yes   √No

Ⅸ.Items and amount of non-current gains and losses

√Applicable      □Not applicable
                                                                                                                         In RMB

                     Items                         Amount (2016)       Amount (2015)      Amount (2014)          Notes

Non-current asset disposal
gain/loss(including the write-off part for             -564,833.40           -81,112.15       -137,889.40
which assets impairment provision is made)

Govemment subsidy recognized in
currentgain and loss(excluding those closely
                                                        108,121.33          342,246.00
related to the Company’s business and
granted under the state’s policies)

Capital occupation charges on
 non-financialenterprises that are charged to                                                 5,214,416.45
 the profit/loss for the reporting period

Profit due to the situation where
 investmentcosts for the company to obtain
 subsidiaries, assoiates and joint ventures
                                                       1,783,284.99
 are lower than the enjoyable fair Value of
 indetifiable net assets of investees when
 making investments

Profit/loss on fair value changes of
transactional financial assets and liabilities
& investment profit on disposal of
transactional financial assets and liabilities
                                                        443,065.98                              60,407.78
as well as financial assets available for sale ,
except for effectively hedging business
related to normal business operations fo the
Company

Non-operating incomeand expense other
                                                       5,296,814.65        -905,796.34       -1,062,500.49
than the above

Less: Amount of influence of income tax                3,668,000.60         -96,699.29        1,018,319.84

                                                         11,192.65

Total                                                  3,387,260.30        -547,963.20        3,056,114.50

For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Compaines Offering their Securities to the Public-Non-recurring Gains and Losses and
its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure

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                                                                  Sino Great Wall Co., Ltd.   2016 Annual Report


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




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                                                                       Sino Great Wall Co., Ltd.   2016 Annual Report




                                  III. Outline of Company Business



Ⅰ.Main Business the Company is Engaged in During the Report Period

Whether the company needs to comply with the disclosure requirements of the particular industry
No
      Sino Great Wall’s main business has two aspects: the first is construction of engineering projects, and the
second is medical & health industry investment and management. The business of construction of engineering
projects mainly includes international and domestic large-scale project contracting, with the international business
mainly centering on the countries and regions along “One Belt, One Road”, and currently, the international
business covers many countries and regions such as the Middle East, Southeast Asia and Africa. The Business
scope covers building project, infrastructure project, commercial complex project etc. For the domestic business,
with the company’s continuous improvement of construction qualifications, the company’s construction income in
PPP projects, building construction, municipal Engineering, infrastructure and new energy field has gradually took
the dominant position, while the proportion of income of pure decoration business slightly decreased. The medical
& health industry investment and management mainly adopts a number of ways such as the acquisition of the
existing hospital, the construction of the new hospital and operating hospital PPP project to enter the operation
and management of medical & health industry, thus to achieve the development of both the construction business
and the medical & health business.
      Currently, the company’s construction qualifications include: first-class qualification as general contractor
of housing & construction project, first-class qualification as specialized contractor of architectural decoration
engineering design and construction, first-class qualification as specialized contractor of building curtain wall
engineering, first-class qualification as specialized contractor of ground foundation engineering, first-class
qualification as specialized contractor of firefighting facilities engineering, first-class qualification as specialized
contractor of waterproof anti-corrosion insulation engineering, second-class qualification as general contractor of
mechanical and electrical engineering construction, second-class qualification as specialized contractor of bridge
construction, second-class qualification as general contractor of petrochemical engineering construction,
second-class qualification as general contractor of municipal public engineering construction, second-class
qualification as specialized contractor of tunnel construction, second-class qualification as specialized contractor
of fabrication and installation of hydraulic metal structure, second-class qualification as general contractor of
water conservancy and hydropower project construction, third-class qualification as general contractor of railway
engineering construction, second-class qualification as general contractor of metallurgical engineering
construction, qualification regardless of grades as specialized contractor of special engineering, third-class
qualification as specialized contractor of highway pavement engineering, third-class qualification as specialized
contractor of highway subgrade engineering etc. The scope covers the engineering qualifications of building,
highway, railway, municipal utilities, water conservancy and hydropower, petrochemical, electric power and other
types of engineering.
      The medical and health business introduced pundits in the medical field and technical experts together with
senior talents to set up a competitive medical team. There are a number of project teams set up all over the country,
initially completed the medical& health industry layout. In 2016, it has purchased Wuhan Commercial and

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                                                                                Sino Great Wall Co., Ltd.      2016 Annual Report


Vocational Hospital Co.,Ltd, won the bids of many PPP medical and health projects such as PPP project of
Relocation of Luyi People's Hospital of Henan Province and the PPP project of Overall Relocation of Huichang
County People's Hospital of Jiangxi, so the medical and health business has been developed smoothly.

Ⅱ.Major Changes in Main Assets


1. Major Changes in Main Assets


Main assets                                Major changes


Equity assets                              No change of present period compared with initial period

                                           193.03% increased in the present period compared with initial period, mainly caused by
Fixed assets
                                           the acquisition of Wuhan commercial worker hospital
                                           1045.94% increased in the present period compared with initial period, mainly caused by
Intangible assets
                                           the acquisition of Wuhan commercial worker hospital
                                           100% decreased in the present period mainly owing to the completion of tower crane
construction in process                    installation in Kuwait project and completion construction of the factory in Suzhou city
                                           carried over to the fixed asset.
                                           7.76 increased in the present period mainly owing to the acquisition of Wuhan
Goodwill                                   commercial worker hospital, Sichuan Dinghui Construction Co.,Ltd as well as Sichuan
                                           Haoyao Construction Engineering Co., Ltd.


2. Main Conditions of Overseas Assets

√ Applicable □ Not applicable

                                                                            Control                      Foreign
                                                                                                                       Whether exist
                                                                           measure to                     assets
  Content of     Reason for                                  Operation                   Income(RMB                     significant
                                  Asset size    Location                   ensure the                 accounted for
     assets     the formation                                  mode                           )                         impairment
                                                                           secutity of                 net assets of
                                                                                                                            risk
                                                                             assets                   the Company

Fixed assets    Overseas      32,087,873.08    Kuwait,                                                1.76%            No
                purchasing of                  Cambodia,
                tower crane                    Qatar,
                & vehicles                     Algeria




Ⅲ.Analysis On core Competitiveness

Whether the company needs to comply with the disclosure requirements of the particular industry
No
    Sino Great Wall Co.,Ltd is a leading construction & engineering contractor in China with business covers
various types construction & engineering contracting. The implementation of the National Strategy of “One Belt,
One Road” will provide a good opportunity for the company's overseas business development. The company
continues to increase efforts to open up overseas markets, thus the overseas project orders and the revenue have


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                                                                     Sino Great Wall Co., Ltd.   2016 Annual Report


maintained a rapid annual growth rate. With the continuous improvement of relevant construction qualifications,
the company’s domestic business also will have a lot of good opportunities as the country has been continuously
promoted PPP projects. The company's comprehensive strength, overseas influence and market competitiveness
have increased year by year.
     1. Strategic positioning advantage
      The “Construction & Engineering contracting” and “Medical & Health Business” will be the company’s two
strategic directions for future development. In 2013, the company set up the development goal “Making bigger
and stronger overseas business, and to become the world's leading international comprehensive construction &
building service provider”. In 2015, the company set up the “Medical & Health business” as another essential
development direction. All of those are to comprehensively cater the needs of the national strategies of “One Belt,
One Road” and “Medical & Health Industry Development”. The good prospects of “One Belt, One Road” projects
and “Medical & Health Industry” will provide a broad market space for the company’s business development. In
terms of engineering contracting, the early-development advantage of overseas business enables the company to
have rich management experiences and high-quality customers and establish talented teams, thus laid a solid
foundation for the company’s overseas business development. In terms of the Medical & Health business, the
company has set up project teams in many domestic places such as Sichuan, Henan and Hubei, and the company
has purchased Wuhan Commercial and Vocational Hospital Co.,Ltd and won the bids of many medical and health
PPP projects. Also, the company has established cooperative relationships with many hospitals and has recruited
many kinds of talents in terms of medical, hospital management, investment and financing etc, thus provided a
strong support for the Medical & Health business development.
    2. Standardized and high-efficient management system, fully market-oriented operation mechanism
    With the increasingly expanding of the company scale and business scope, the management for the company
is becoming more complex. However, the company timely set up the sound management system and the
authorization system to standardize the approval procedures, reduce the management hierarchy tiers and improve
the work efficiency and execution, thus ensured the efficient operation of the company’s business operation. For
the operation mechanism, the company bravely faces the fierce competition in the market, adheres to the
market-oriented development, respects the objective laws of the market and constantly improves its management
level, thus to timely response to changes in the market and continuously improve the company's market image,
construction quality and profitability.
    3. Integrated design and construction advantages
    The company has a wide range, high-ranking construction qualifications, and the company has integrated
design and construction experiences and good project management capabilities, so the company is able to provide
integrated design and construction services in terms of civil engineering, decoration, mechanical and electrical
installation and full industry chain of curtain wall, and the company can independently complete the whole
process of construction project. The company can form a comprehensive advantage in the field of building
engineering, so it can reasonably schedule the procurement, labor use and construction plan, as well as the
company can constantly optimize the process to reduce the project costs. The company’s excellent design ability,
sound construction quality, high-efficient construction planning and the comprehensive high-quality service
greatly enhanced the customers’ satisfaction.
   4. Costs advantages and quality-control advantages
   The core management staff of the company all have more than 10 years experiences of building and
engineering construction. Upon the deep understanding of the industry, the company established a relatively
perfect material procurement, labor management and quality control system. Through the price ceiling mode for


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                                                                     Sino Great Wall Co., Ltd.   2016 Annual Report


procurement, the company screens the suppliers in the early stage of a project, thus to ensure that the procurement
costs of the project materials would be in a reasonable scope. By locking the technical requirements and time
requirements of the project, the company can lock the labor costs. The company has set up strict quality-control
system for the design drawing, raw material procurement and each aspect of the project construction management,
thus to strictly ensue the project construction quality, so the company has won good reputation and got trust and
recognition by a great number of customers.




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                                                                      Sino Great Wall Co., Ltd.   2016 Annual Report




                                   IV. Management’s Discussion and Analysis



Ⅰ.General


 1. Overall overview of business condition
     The year of 2016 is the beginning year of China's "13th Five-Year" plan, and it also is the crucial year for the
supply-side structural reform. Although the world economic growth is still slow, the China’s economy has shown
signs of stabilized recovery after the bottoming under the impact of positive fiscal policy, adaptive monetary
policy and the real-estate policy. Under the background of the new economical normal, the company firmly
adheres to the development concept of “International development” and closely follows up the national
strategy of “One Belt, One Road”, seizing the opportunity and actively going abroad for development. The
company continuously increases the efforts of business development in the countries and regions along “One Belt,
One Road”. Meanwhile, the company actively seeks the cooperation with domestic and foreign well-known
companies, tapping into each other’s advantage to continuously expand the cooperative fields. In 2016, the
amount of the overseas bids won by the company and the new signing orders exceeded RMB 27 billion, so the
plenteous orders will provide a solid safeguard for the company’s operating performance in the next few years.
    In 2016, China continued to strongly promote the PPP project. Based on the “Guidance on the Promotion of
cooperation model between government and social capital in the field of public service” released in 2015, the
government further released other official documents such as “Notice on promoting asset securitization related to
government and social capital cooperation (PPP) project in traditional infrastructure field”. Under China’s strong
promotion of PPP project construction, the domestic PPP project business continues to heat up and the investment
in infrastructure has been picking up. The company precisely judged the timing and timely seized the
opportunities, so the company carried out merger and acquisition of enterprises in the same industry and perfected
the construction qualifications. Therefore, the company’s domestic business has been effectively extended and
developed, and the company has made the successful transformation and upgrading from the previous main
business of decoration, thus becoming a comprehensive construction & building service provider with general
contracting ability of construction, which greatly improved the company’s s core competitiveness and the
comprehensive strength.
    In 2016, for the investment in the medical field, the company completed the purchase of Wuhan Commercial
and Vocational Hospital Co.,Ltd (hereinafter referred to as the "Wuhan Commercial and Vocational Hospital").
The hospital PPP business achieved a good start, and then the company won the bids of Relocation of Henan Luyi
hospital, Guizhou Zhongshan Hongqiao City Hospital Project, the PPP project of Overall Relocation of Huichang
County People's Hospital and the PPP construction project of Lingbao First People's Hospital etc. The signing and
implementation of the above projects will provide a strong support for the company's future operating
performance.
     Based on the analysis and judgment of the status quo and the future prospects of the domestic and
international construction market and the medical & health industry, the company will continue to enhance the
project contracting and investment along “One Belt, One Road”, increase the investment in the domestic medical
& health industry and PPP business, constantly improve the company’s management level, perfect and upgrade
the existing qualifications, strongly expand overseas markets, actively participate in the domestic infrastructure
PPP projects and promote the sound implementation of more projects, thus to keep a stable, harmonious

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                                                                     Sino Great Wall Co., Ltd.   2016 Annual Report


development for the company’s domestic and international business and continuously improve the company’s
profitability.
    In 2016, the company realized operation income of RMB 4.665 billion, an increase of 16.32% from the last
year; realized the operating profits of RMB 556million, an increase of 28.99% from the last year; and the net
profit attributable to the parent company was RMB 474 million, an increase of 36.64% from the last year.
    In 2016, the main work carried out by the company is as follows:
    1) Improved the construction qualifications for domestic building & engineering construction, extended the
industry chain.
     In 2016, the main income of the domestic business was still from the traditional decoration business. In order
to better expand the domestic business and extend the industrial chain, the company bought out Sichuan Ding Hui
Construction Engineering Co., Ltd (the current name is Sino Great Wall Southwest Construction Engineering Co.,
Ltd), and the company obtained the share-control of Sichuan Hao Yao Construction Engineering Co., Ltd (Now is
Sino Great Wall Jianye Construction Engineering Co., Ltd) by the way of capital increase and becoming a
shareholder, so the company has improved the construction qualifications for domestic building & engineering
construction, and has expanded the qualification field from the previous decoration for constructions to a number
of new fields such as housing &building construction, municipal public facility, highway, water conservancy and
hydropower, petrochemical and power engineering. Therefore, the company has greatly expanded the company’s
business scope and enhanced the company’s market competitiveness and influence, thus laid a solid foundation
for the further improvement on the company’s business performance and profitability.
2) Achieved good results in the overseas business development
In 2016, benefiting from the strong promotion of “One Belt, One Road” policy, relying on the company’s good
reputation in the overseas construction and the company’s rich construction experience and upon the company’s
hard-working, the company’s overseas business achieved a rapid growth. In 2016, the company has won the bids
and/or large orders in a number of countries and regions such as Indonesia, Algeria, Burma, Congo, Laos,
Kampuchea, and the total amount of those orders exceeds RMB 27 billion. After several years of unremitting
efforts and careful cultivation, the company's overseas business development has entered into the fast lane, and the
above orders will provide a strong guarantee for the company's business performance in the next few years.
(3) Made a good start in the medical & health industry
     In 2016, the company achieved a good start in the medical & health industry, and then the company won the
bids of a number of hospital PPP projects including Relocation project of Henan Luyi hospital, Guizhou
Zhongshan Hongqiao City Hospital Project, the PPP project of Overall Relocation of Huichang County People's
Hospital and the PPP construction project of Lingbao First People's Hospital. The company has trained and
cultivated the professional medical management and marketing team.
(4) Fully respecting talents and giving opportunities to talented people, and continuously drawing in talents
The enterprise competition is ultimately the talents competition, so the company always adheres to the value of
“people-oriented, giving full respect and opportunities to talents”. The company highly values the human
resources and talents cultivation. According to the company’s business development plan, the company
continuously draws in exterior talents and cultivates the inner talents. The company has continuously improved
the quality and level of the technical team and management team of the company, as well as provided a good
development platform for various types of talents. By perfecting the personnel training mechanism and the
performance evaluation and incentive evaluation mechanism etc, the company would attract more talents and
retain the talents, thus to provide a good talent reserve for the company‘s healthy, sustainable development.

    (5)Standardize company instruction and enhance management

                                                        16
                                                                      Sino Great Wall Co., Ltd.   2016 Annual Report


    In 2016, based on reality, the company revises and improves a series of instructions including Articles of
Association and Rule of Procedure of Shareholders' Meeting to further improve the corporate governance and to
build a management system and internal control system in a more scientific and rigorous way and to manage and
standardize the company, its subsidiaries and detailed businesses in more layers for improving Enterprise
operation management level. Provide a solid system guarantee for the development of all business and effectively
improve the management of the company and reduce the risk of company’s operation.

     The company, a fast developing construction one, issues shares to Sino Great Wall (Beijing) Investment Co.,
Ltd. and Beijing Anben Medicare investment Co., Ltd. and Mr. Zheng Jihua and gets fund of 2.5 billion Yuan for
the company’s high demand of circulating funds and assets in the development and operation and for reducing the
company’s debt asset ratio, optimize capital structure and for enhancing the company’s capital strength. On
February 16, 2017, the company held Board of Directors and reviewed Resolution on Adjusting Private Equity
Placement Scheme of The Company and adjusted the total capital to be 900 million Yuan. Currently private
equity placement A share of the company gets the approval of Issuance Examination of China Securities
Regulatory Commission. The fund of private equity placement is used for supplying circulating fund and repaying
bank loan, which lays a solid foundation of company’s business and improves the comprehensive competence of
the company further.



Ⅱ.Main business analysis

1. General

Refer to relevant contents of “1.Summarization” in “Discussion and Analysis of Management”.

2. Revenue and cost

(1)Component of Business Income

                                                                                                              In RMB

                                    2016                                   2015
                                                                                                  Increase /decrease
                        Amount             Proportion          Amount             Proportion

Total business
                      4,664,999,117.17              100%     4,010,358,999.58              100%              16.32%
income

Industry

EPC                   3,118,359,658.51            66.85%     1,513,458,850.56            37.74%             106.04%

engineering design       12,669,951.31             0.27%       19,919,636.46              0.50%              -36.39%

Decoration work       1,452,138,348.28            31.13%     2,455,199,964.42            61.22%              -40.85%

Medical service
                         81,593,110.43             1.75%
revenue

Other                       238,048.64             0.01%       21,780,548.14              0.54%              -98.91%

Product


                                                        17
                                                                               Sino Great Wall Co., Ltd.          2016 Annual Report


                          4,664,999,117.17              100.00%       4,010,358,999.58              100.00%                  16.32%

Area

       Domestic           1,478,928,295.44              31.70%        2,436,352,972.25               60.75%                  -39.30%

       Overseas           3,186,070,821.73              68.30%        1,574,006,027.33               39.25%                 102.42%



(2)Situation of Industry, Product and District Occupying the Company’s Business Income and Operating
Profit with Profit over 10%
√ Applicable □Not applicable

Whether the company needs to comply with the disclosure requirements of the particular industry
No
                                                                                                                              In RMB

                                                                           Increase/decrease Increase/decrease Increase/decrease
                                                                           of revenue in the   of business cost      of gross profit
                                                          Gross profit
                        Turnover      Operation cost                        same period of      over the same      rate over the same
                                                            rate(%)
                                                                             the previous          period of         period of the
                                                                               year(%)         previous year (%) previous year (%)

Industry

EPC                 3,118,359,658.51 2,180,789,521.13             30.07%           106.04%              82.54%                 9.01%

Decoration works 1,452,138,348.28 1,215,243,366.01                16.31%            -40.85%             -37.99%               -3.77%



Product

Area

     Domestic       3,186,070,821.73 2,234,413,513.88             29.87%           102.42%              87.03%                 5.77%

     Overseas       1,478,928,295.44 1,224,964,230.78             17.17%            -39.30%             -37.83%               -1.96%

Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main
business based on latest on year’s scope of period-end.
□ Applicable     √Not applicable

(3)Whether the Company’s Physical Sales Income Exceeded Service Income

□ Yes √No


(4)Degree of Performance of the Significant Sales Contract Signed up to this Report Period

√ Applicable □Not applicable




                                                               18
                                                                            Sino Great Wall Co., Ltd.          2016 Annual Report



                                                                              Amount of          Progress of project               Date   of
 No            Contracting party               Name of Projet
                                                                                contract                                            contract

        PT.Cipta karya bersama                                                                       Yet to be put into
 1                                  Indonesia Emerald Apartment            RMB 314 million                                          2016/3/8
        lestari                                                                                          operation

                                                                                                      Pile foundation
                                                                           USD80 million
                                                                                                  completed, operation of
 2      Mottamma Holdings Ltd.      Myanmar M-Tower project                (about RMB                                             2016/05/31
                                                                                                   Basement Waterproof
                                                                           550 million
                                                                                                             Started

                                                                           USD 120 million          Yet To Be Put Into
        Oxley Consultancy &
 3                                  Myanmar MIN Residence project          (about RMB830               Operation                   2016/6/1
        Management Co., Ltd.
                                                                           million)

                                    Comprehensive Development                                         Pile Foundation
                                                                           USD 285 million
        Oxley Gem (Cambodia)        Project (Project PP50), Floor 55,                                   Completed
 4                                                                         (about                                                  2016/6/1
        Co., Ltd                    Village 14, Hun Sen Road,
                                                                           RMB1.97 billion)
                                    Cambodia

                                    General Contracting for 5000           USD 300 million          Yet To Be Put Into
        Banque Congolaise de
 5                                  modern comfortable housings in The     (about RMB 2                Operation                  2016/6/29
        l'Habitat (BCH)
                                    Republic of Congo                      billion)

                                    General Contracting for Project PC,                              Operation Started
        Pt. Wangxiang Nickel        Production Line t, Iron-nickel Plant   RMB 1.5015
 6                                                                                                                                  2016/8/1
        Indonesia                   PKEF, Morowali County, West            billion
                                    Sulawesi Island, Indonesia

                                                                           Myr 167.7892           Process for Fundamental
        VERITAS ARCHITECTS          Angsana Apartment Project,Penang       million(about          Rebars of Temporary
 7                                                                                                                                  2016/8/8
        SDN BHD                     Island,Malaysia                        RMB 260                Tower Crane Completed
                                                                           million)

        Xinjianye Group Co., Ltd.                                          USD 2.7billion           Yet To Be Put Into
                                    Cambodia Penh Shuangzhi Building
 8      Taiwenlong Group Co.,                                              (about RMB                  Operation                  2016/12/29
                                      World Trade Center
        Ltd.                                                               1.8781 million)

                                                                           About RMB 35.5
Subtotal
                                                                           billion



(5)Component of business cost

Industry Category


                                                                                                                       In RMB


                                                   2016                                  2015                          Increase
      Industry            Items
                                        Amount            Proportion         Amount             Proportion             /decrease



                                                              19
                                                                         Sino Great Wall Co., Ltd.   2016 Annual Report


EPC                Labor wages           627,669,828.27     18.14%      227,743,800.08          7.20%         175.60%

EPC                Material            1,326,646,537.37     38.35%      695,054,284.77         21.96%          90.87%

EPC                Other                 226,473,155.49     10.77%      271,915,654.94          8.59%          37.07%

Medical service
                                          57,672,498.15         1.67%
revenue

Engineering
                                           6,239,359.37         0.18%    10,603,822.07          0.34%         -41.16%
design

Decoration works Labor wages             276,123,560.64         7.98%   547,781,369.10         17.31%         -49.59%

Decoration works Material                770,503,604.30     22.27% 1,359,863,294.41            42.95%         -43.34%

Decoration works Other                   168,616,201.07         0.63%    52,064,960.29          1.65%         -58.10%



Notes


(6)Whether Changes Occurred in Consolidation Scope in the Report Period

√ Yes □No

      1. Companies into merger range newly in this stage

    In 2016, the company founded Sino Great Wall Medicare investment Co., Ltd., Sino Great Wall
Infrastructure Investment Co., Ltd. and Wuhan Vocational Hospital Co., Ltd. wholly owned by the company by
cash offer, Sino Great wall Xinan Construction Co., Ltd. (Original name: Sichuan Dinghui Construction Co., Ltd.)
which is wholly bought by subsidiary Sino International, Sino Great Wall Construction Co., Ltd. (Original name:
Sichuan Haoyao Construction Co., Ltd.) is 60% bought by share issue by the company. Meanwhile, Sino
International founded newly subsidiaries called Sino Great wall Property (Hubei) Co., Ltd. and Sino Great wall
Development (Hengqin) Co., Ltd. Then the above newly founded companies and newly bought companies began
to be into the merger range of the company since 2016.

      2. Companies not into merger account range in this stage

    In 2016, Sino International cancelled holding companies called Sino Heji Recycled Material Co., Ltd., which
was not in the merger range.

 (7)Relevant Situation of Significant Changes or Adjustment of the Business, Product or Service in the
Company’s Report Period

□ Applicable √ Not applicable


(8)Situation of Main Customers and Main Supplier

Information of the Company’s top 5 customers
Total sales amount to top 5 sales customers (RMB)                                                       2,806,001,475.3

Proportion of sales to top 5 customers in the annual                                                            60.15%



                                                           20
                                                                                 Sino Great Wall Co., Ltd.       2016 Annual Report


sales(%)

Information of the Company’s top 5 customers
No          Name                                             Amount(RMB)                  Proportion %

1           Customer1                                                      902,018,306.43                                       19.34%

2           Customer2                                                      768,677,450.02                                       16.48%

3           Customer3                                                      577,372,398.63                                       12.38%

4           Customer4                                                      395,300,992.03                                         8.47%

5           Customer5                                                      162,632,328.22                                         3.49%

Total       --                                                         2,806,001,475.33                                         60.16%

Principal suppliers
Information of the Company’s top 5 suppliers
Total Purchase amount to top 5 sales suppliers (RMB)                                                                  210,324,623.20

Proportion of purchase to top 5 suppliers in the annual
                                                                                                                                14.11%
purchase(%)

Information about the top 5 suppliers
No               Name                                        Amount(RMB)                  Proportion%^

1                Customer1                                                  80,345,978.27                                       3.83%

2                Customer2                                                  70,016,472.60                                       3.34%

3                Customer3                                                  69,059,944.85                                       3.29%

4                Customer4                                                  65,091,067.63                                       3.10%

5                Customer5                                                  45,011,071.35                                       2.15%

Total                              --                                      329,524,534.70                                       15.71%

Notes
□ Applicable √ Not applicable


3.Expenses

                                                                                                                                In RMB

                                                                           Increase/Decrea
                                   2015                    2015                                               Notes
                                                                                se(%)
        Sale expenses                                                                         Due to the reduction of marketing
                                   30,318,688.27           13,686,172.10           121.53%
                                                                                              personnel

Administration expenses                                                                       Due to the increase of overseas
                                                                                              branches and the increase of domestic
                                  313,930,733.56          154,562,327.86           103.11%
                                                                                              and overseas departments such as
                                                                                              group, optoelectronic and medical.

     Financial expenses           127,437,227.95           54,866,402.02           132.27% For the increase in the Company’s


                                                                  21
                                                                   Sino Great Wall Co., Ltd.       2016 Annual Report


                                                                              short-term loan and long-term loan as
                                                                              well as the increase in overseas L/G
                                                                              amortization


4.R& D Expenses

√ Applicable □Not applicable

   In order to enhance the core competence of the company and to meet the demand of constant development, the
company focuses on researching decoration design and general contracting and so on. Currently each project shall
be operate as plan. Through practical application, it can get good economic and social benefit.
Situation of Research and Development Input by the Company
                                       2016                        2015                Increase /decrease

    Number of Research and
                                                    191                         189                            1.06%
Development persons (persons)

   Proportion of Research and
                                                  7.83%                      11.24%                            -3.41%
     Development persons

    Amount of Research and
  Development Investment (In              139,163,839.18              133,143,918.79                           4.52%
             RMB)

   Proportion of Research and
  Development Investment of                       2.98%                       3.32%                            -0.34%
       Operation Revenue

    Amount of Research and
    Development Investment                          0.00                        0.00
    Capitalization (In RMB)

  Proportion of Capitalization
  Research and Development
                                                  0.00%                       0.00%
  Investment of Research and
    Development Investment

The Reason of the Prominent Change in Total Amount of Research and Development Input Occupying the
Business Income Year on Year
□ Applicable √Not applicable

Explanation of the Reason for Substantial Changes in the Research and Development Input’s Capitalization Rate
and Its Reasonableness
□ Applicable     √ Not applicable

5.Cash Flow

                                                                                                             In RMB

              Items                    2016                        2015                      Increase/Decrease(%)



                                                       22
                                                                      Sino Great Wall Co., Ltd.   2016 Annual Report


Subtotal of cash inflow received
                                          4,618,123,624.04             4,257,440,458.70                        8.47%
from operation activities

Subtotal of cash outflow
received from operation                   6,305,999,437.98             4,549,491,715.78                        38.61%
activities

Net cash flow arising from
                                         -1,687,875,813.94              -292,051,257.08                  -477.94%%
operating activities

Subtotal of cash inflow received
                                            121,565,115.12                     2,494.86               4,872,522.72%
from investing activities

Subtotal of cash outflow for
                                            246,357,420.64                28,713,135.66                    758.00%
investment activities

Net cash flow arising from
                                           -124,792,305.52               -28,710,640.80
investment activities

Subtotal cash inflow received
                                          3,527,919,898.49             1,805,738,341.24                        95.37%
from financing activities

Subtotal cash outflow for
                                          1,348,742,579.57             1,146,676,943.40                        17.62%
financing activities

Net cash flow arising from
                                          2,179,177,318.92               659,061,397.84                    230.65%
financing activities

Net increase in cash and cash
                                            360,959,565.60               338,985,801.91                        6.48%
equivalents

Notes to the year-on-year change of the relevant data
√Applicable □        Not applicable
1. Net cash flows from operating activities decreased significantly over the previous year, which was mainly due
to the short period of credit accounts of overseas project suppliers.
2. The net cash flow from financing activities increased compared to the last year mainly due to the increase of
bank loans in the current period.
Notes to the big difference between cash flow from operating activities and net profit in the reporting year
√Applicable □         Not applicable
The large difference between the company’s net cash flows from operating activities and the net profits of the year
in the reporting period was mainly due to the increase of operating receivables.



Ⅲ.Analysis of Non-core Business

□ Applicable     √ Not applicable

Ⅳ.Condition of Asset and Liabilities

1.Condition of Asset Causing Significant Change


                                                         23
                                                                                           Sino Great Wall Co., Ltd.               2016 Annual Report


                                                                                                                                                  In RMB
                                End of 2016                        End of 2015
                                                                                            Proportion
                                           Proportion
                                                                                            increase/decre      Notes to the significant change
                             Amount        in the total
                                                                                            ase
                                            assets(%)

Monetary funds        1,340,815,821.83           16.79%       695,384,561.31      17.31%              -0.52%

Account
                      3,725,170,208.31           46.65% 2,352,808,087.33          58.56%            -11.91%
receivable

Inventory              332,904,930.36              4.17%      168,133,668.91       4.19%              -0.02%

Fixed assets           128,483,747.74              1.61%       43,846,215.63       1.09%              0.52%

Construction in
                                                               10,016,928.24       0.25%              -0.25%
process

Short-term loans 1,966,058,357.59                24.62%       225,408,496.07       5.61%              19.01%

Long-term loans        786,858,878.82              9.85%       30,140,649.14       0.75%              9.10%




2.Asset and Liabilities Measured by Fair Value

□ Applicable        √ Not applicable
3. Restricted asset rights as of the end of this Reporting Period

Ⅴ.Investment situation

1. General

√ Applicable □Not applicable

     Investment Amount in 2016(RMB)                    Investment Amount in 2015(RMB)                                Change rate



2.Condition of Acquiring Significant Share Right Investment during the Report Period
√ Applicable □ Not applicable
                                                                                                                                                  In RMB

Name                                                                                                           Gain or
                                                                                           Progres                       Whethe
of   the                       Investm                                 Investm                        expecti Less or                   Date of
            Main Investm                 Share                                             s to the                      r         to             Disclos
Compa                            ent               Capital               ent     Product                ng     the                      Disclos
           Busines     ent               Proport             Partner                       balance                       Involve                    ure
ny                             Amoun               Source              Horizo Type                    earning Current                   ure(Not
               s      Way                ion %                                              sheet                        in                        Index
Investe                           t                                      n                               s     Investm                   e 5)
                                                                                            date                         Lawsuit
d                                                                                                              ent

Wuhan                                                                                      Acquisi                                                http//.w
           medical Purchas 970000                   Self               Long-te                                                           May
Comme                                    100%                                               tion                              No                  ww.cni
           service      e        00                 fund                 rm                                                             11,2016
rcial &                                                                                    complet                                                nfo.co


                                                                         24
                                                                                        Sino Great Wall Co., Ltd.         2016 Annual Report


Vocatio                                                                                   ed                                          m.cn
nal
Hospita
l Co.,Lt
d

    Great
    Wall                                                                                Capital
Industr                                                                                 increas                             Novem http//.w
                      Increas
      y     Constru             900000              Self             Long-te             e has                                ber      ww.cni
                         e                60%                                                                        No
Engine        ction                  00             funds              rm                been                                10,201 nfo.co
                      capital
    ering                                                                               complet                                6        m.cn
    Co.,                                                                                  ed
    Ltd.


3.Situation of the Significant Non-equity Investment Undergoing in the Report Period

□ Applicable         √ Not applicable

4.Investment of Financial Asset

(1)Securities investment

□ Applicable         √ Not applicable

The Company had no securities investment in the reporting period.

(2)Investment in Derivatives

□ Applicable         √ Not applicable
The Company had no investment in derivatives in the reporting period.

5.Application of the raised capital

√ Applicable □ Not applicable

(1)General application of the raised funds

√ Applicable □ Not applicable
                                                                                                                               In RMB’0000

                                                                    Amount of Accumulat Proportion        Total                     Amount of
                                            Total           Total                                                    Use and
                             Total                                    raised   ive amount of      raised Amount of                  the Raised
    Year of      Way of                   Amount of amount of                                                        Whereabo
                             raised                                 capital of of   raised capital   of    the                      Fund with
    Raising      Raising                  the Raised       Raised                                                    uts of the
                             capital                                which the capital    of which the     Unused                     over 2
                                          Fund Used        Funds                                                      Unused
                                                                     purpose which the purpose            Raised                      Years’


                                                                        25
                                                                                                  Sino Great Wall Co., Ltd.              2016 Annual Report


                                               at the                        was         purpose        has    been Fund at             Raised        Idling
                                                                       changed in has            been changed               the          Fund
                                                                       the report changed               (%)               Current
                                                                         period                                           Period

                                                                                                                                      In the
                                                                                                                                      special
              Stocks
2015                               25,500     3,366.36      4,966.36                 0              0         0.00% 20,533.64 account to                       0
              issue
                                                                                                                                      raise funds
                                                                                                                                      in storage

Total             --               25,500     3,366.36      4,966.36                 0              0         0.00% 20,533.64              --                  0

                                                             Notes to use of raised capital

Upon the approval from the CSRC with the document of the 2015-No.1774 Zheng Jian Xu Ke -Reply of the Major Asset
Restructuring and the Issue of Shares to Objects such as Chen Lue to Purchase Assets and Raise Matching Funds by Shenzhen
Victor Onward Textile Industrial Co., Ltd, Sino Great Wall International Engineering Co.,Ltd( hereinafter referred to as: “company
or the company”) had non-publicly issued 25,914,633 shares of RMB common share(A share), of which the par value per share was
RMB 1.00, the issuing price per share was RMB 9.84, the total funds raised was RMB 254,999,988.72, and after deducting the
issuance expenses of RMB 14,500,000.00 directly from the raised funds, the actual net amount of the raised funds is RMB
240,499,988.72.


(2)Promised projects of raised capital

√ Applicable         □ Not applicable
                                                                                                                                                   In RMB’0000

                                                                                                                Date
                                                                                   Accumul Investme
                                                                                                              when the
                                             Total                                   ated           nt                                                Has any
                               Project                    Total     Amount                                     project       Benefit
                                             raised                                 amount       progress                                Has the      material
                              changed(i                 investme inested in                                      has        realized
Committed investment                         capital                               invested ended the                                    predicted    change
                              ncluding                   nt after      the                                     reached       in the
projects and investment                     invested                               at the end reporting                                  result be     taken
                               partial                  adjustme reporting                                       the        reporting
                                               as                                   of the       period(%                                realized     place in
                              change)                    nt (1)     period                                    predicted      period
                                            commited                               reporting )(3)=(2)(                                               feasibility
                                                                                                              applicabl
                                                                                   period(2)        1)
                                                                                                               e status

Committed investment projects

1. Overseas marketing
network       construction No                 10,000      10,000 3,226.51 3,226.51                                                      No           No
project

2.Informatization
                              No               2,500        2,500        27.6             27.6                                          No           No
Construction Phase II

3.Related     taxes     and
agency fees of this No                        13,000      13,000       112.25 1,712.25                                                  No           No
transaction



                                                                             26
                                                                                Sino Great Wall Co., Ltd.       2016 Annual Report


Subtotal of committeed
                                        25,500       25,500    1,600 4,966.36
investment projects

Investment orientation for und arising out of plan

Total                          --       25,500       25,500 3,366.36 4,966.36      --        --             0     --        --

Situation about not
coming up to schemed
progress or expected       Not applicable
revenue and the reason
( in specific project0

Notes to significant
change in feasibility of Not applicable
the project

Amount, application        Not applicable
and application
progress of the
unbooked proceeds

About the change of        Not applicable
the implementation site
of the projects invested
with the proceeds

Adjustment of the          Not applicable
implementation way of
investment funded by
raised capital

About the initial          Not applicable
investment in the
projects planned to be
invested with the
proceeds and the
replacement

Using the idle proceeds Not applicable
to supplement the
working capital on
temporary basis

Balance of the             Not applicable
proceeds in process of
project implementation
and the cause

About application and
status of the proceeds         The company will use the raised money 150 million Yuan to supply circulating money and the

unused                     remaining 55.6849 million Yuan will be saved in raised money account.


                                                                  27
                                                                                  Sino Great Wall Co., Ltd.    2016 Annual Report


Problems existing in
application of the
proceeds and the         No
information disclosure
or other issues


(3)Changes of raised funds projects

□ Applicable √ Not applicable
The Company had no raised funds in company reporting period.

VI. Sales of major assets and equity

1. Sales of major assets

□ Applicable √ Not applicable
The Company had no sales of major assets in the reporting period.

2.Sales of major equity

□ Applicable √ Not applicable

Ⅶ.Analysis of the Main Share Holding Companies and Share Participating Companies

√ Applicable      □ Not applicable
Situation of Main Subsidiaries and the Joint-stock Company with over 10% net profit influencing to the Company
                                                                                                                            In RMB

  Company                             Sectors     Registered                                              Operating
                  Company type                                 Total assets    Net assets    Turnover                    Net Profit
    Name                          engaged in        capital                                                profit

                                 General
                                 contracting,
                                 subcontractin
                                 g,

Sino Great                       engineering

Wall                             survey and
                                 design;                       7,493,324,70 1,707,478,63 4,583,167,95 597,298,486. 487,695,725.
International Subsidiaries                       470,136,099
                                 professional                           3.87          3.38         8.10             46            96
Engineering
Co., Ltd.                        contracting;
                                 architectural
                                 decoration
                                 engineering;
                                 architectural
                                 curtain wall;


                                                                   28
                                                                              Sino Great Wall Co., Ltd.    2016 Annual Report


                           project and
                           technology
                           study and
                           experimental
                           development;
                           sell building
                           material,
                           machinery,
                           hardware,
                           plastic
                           articles;
                           technology
                           development,
                           technology
                           consultation,
                           technology
                           service;
                           goods import
                           and export;
                           technology
                           import and
                           export; agent
                           import and
                           export.(After
                           delivering
                           this license,
                           you shall get
                           administrativ
                           e license
                           from civil
                           plan
                           committee
                           and civil
                           residential
                           committee. It
                           shall be filed
                           in civil
                           ministry of
                           commerce.)

Acquirement and disposal of subsidiaries in the Reporting period
√Applicable □Not applicable
                                            The method of obtaining and handling     The influence to the whole production and
            Company name
                                             subsidiaries during the report period                 performance



                                                              29
                                                                      Sino Great Wall Co., Ltd.   2016 Annual Report


Wuhan Commercial & Vocational
                                       Acquisition
Hospital Co.,Ltd

Luyi Shuguang medical industry
                                       Investment
investment and Construction Co., Ltd

Notes

Sino Great wall International Construction Co., Ltd. is a subsidiary of the company and is the main of income and
profits of the company, which accounts for more than 90% of all the company’s operating income and net profit
and the rest subsidiaries account for less than 10% of all the company’s operating income and net profit, which
weight less in the whole company’s operation.

Ⅷ.Special purpose vehicle controlled by the Company

□ Applicable      √ Not applicable

Ⅸ.Prospect for future development of the Company

1.Strategy of the Company’s Development

        1. Building construction:

      Economic development of our country has a new trend with structure adjustment, steady enhancement and
upgrading of industrial transformation. It is estimated that our economic trend will adjust from high-speed
adjustment to middle-high increase with the reduction of fixed asset investment increase rate of the whole society
in the future. For a middle or long time, development of national construction industry will change form
high-speed increase to moderate increase. Although national construction industry develops steadily, the potential
of whole industry remains great. Our country pushes greatly the public service on APP and infrastructure project,
which will promote the great development of related lines. Our company is engaged in construction, body of PPP
project, which can share the continuity and steady profits from construction, investment and operation of PPP
project. In recent years, property investment develops steadily, but it still increases in every year. With the rapid
increase of urbanization, the demands of resident’s house improving and living condition needs a long time,
construction market still has a bright future.

    The implementation of “the Belt and Road” policy will boost the development of construction in nations and
areas along the sea and create an opportunity for national construction enterprises. As a renown international
construction contractor, based on the reputation and market image cumulated for many years, the company will
exert first-move advantages on overseas business, talent advantages, management advantages and customer
advantages to ensure the rapid growth of overseas business and fully enjoy the great benefits of “the Belt and
Road” policy.

          2. Healthcare:

        “13th Five-Year Plan” plans out “Health China”. Medicare industry is of great concern. In 2013, State
    Council issued Suggestion on Stimulating the Development of Health Service Industry. In 2015, Ministry of
    Public Health and other four ministries successively issued Guidance on Pilot Projects of the Public Hospital
    Reform and Suggestion on Building Medical Organization by Encouraging and Guiding Social Capital and
    other standard files. With the issuance of a series of strategies and standard files, construction and industry

                                                         30
                                                                        Sino Great Wall Co., Ltd.   2016 Annual Report


    development on medical and health industry step a new historical stage. The health demand of vast amount of
    population and constant growth of the mass provide a great market space for the development of all medical
    and health industry.

    (II) The Company’s Development Strategy

    The company focuses its development strategy on two aspects: one is to strengthen the project contracting and
investment of the Belt and Road Initiative, and the other is to enhance the domestic medical investment. At
present, the company has possessed abundant projects in Southeast Asia, South Asia, the Middle East and Africa,
and aside from intensifying the exploitation of and investment to the countries in the above-mentioned regions,
the company will take the efforts to explore North America, South America, Australia, Europe and other high-end
markets as core for the next step. In the field of medical investment, more funds will be disposed, apart from the
investment of hospital construction in PPP mode, in the acquisition of mature hospitals, the distribution of medical
e-commerce, the introduction of advanced medical technology and services from abroad. Centering around the
development strategies of “enlarging and strengthening overseas business to become an integrated international
construction services supplier” and “developing the health-care industry”, in the future, the company will devote
major efforts to developing abroad business and arranging the medical industry so as to enhance its capacity for
core competitiveness and profit constantly and eventually strive to build itself into a prominent business group
developed by the mutual driving forces of construction and health-care industry.

    (III) The Company's Business Plans

    In 2017, focusing on the development strategies laid down by the Board of Directors, the company will give
priority to launch the following activities:

(1) To promote the development of domestic business and actively participate in the construction of PPP projects

    The year of 2017 will witness the company intensifying the expansion of domestic business. Thus, on the
basis of improving its construction qualification and capacity, the company will take positive part in the
construction of PPP projects, expand its business scope in health-care, infrastructure and other fields and its
development scale of architectural ../../../Program Files (x86)/Youdao/Dict/7.0.1.0227/resultui/dict/%3fkeyword=ornament
business, increase its domestic business income and profits, and enhance its comprehensive strength and core
competitiveness as well.

(2) To enlarge the influence of overseas market and the share of overseas business

    In 2017, the company will make continuing efforts to explore overseas market thoroughly and strengthen the
exchanges and cooperation with governments of the foregoing countries and regions. With a full grasp of the
construction project opportunities from the countries and regions along the line of the Belt and Road, it will
continuously extend the scale of its overseas business and enhance the foreign influence of the brand Sino Great
Wall.

    (3) To maintain the implementation of development projects for medical business and cultivate new profit
growth point

     For the year of 2017, taking full advantage of the good opportunities provided by the national health-care
reform, the company will play a positive role in expanding the business in the area of medical health service,
acting to implement the construction of hospital PPP projects that have won the bid, and continuing to exploit new
hospital PPP projects as well as planning and developing in-depth cooperation in relation with medical business.


                                                          31
                                                                    Sino Great Wall Co., Ltd.   2016 Annual Report


    (4) To promote private issuing of share and enhance the capital strength of the company

    On July 7, 2016, the 10th meeting of the 7th Board of Directors was convened to deliberate and approve the
Proposal on the Plan of non-public Issuing of A-Share by Sino Great Wall Co., Ltd and plan to issue shares to
Sino Great Wall (Beijing) Investment Co., Ltd, Beijing Anben Medical Investment Holdings Ltd and Mr. Zheng
Jihua, raising funds of RMB 2.5 billion. On October 14, 2016, the 16th meeting of the 7th Board of Directors was
convened to examined and adopted the Proposal on Adjustment to the Current Plan ofnon-public Issuing of
A-Share by Sino Great Wall Co., Ltd, adjusting the total raised fund to RMB 900 million. On March 22, 2017, the
application for non-publi issuing of A-share has been examined and approved by the Issuance Examination
Commission of CSRC, but at present the official documents approved by CSRC has not yet been received.
    In 2017, the Company will fully seize the favorable opportunities brought by One Belt One Road strategy and
Public-Private-Partnership project construction which the nation vigorously implements. To make a further
perfection for overseas and domestic marketing networks, the Company will strive to exploit and develop new
high-quality customers. To make a further perfection for the Company’s relevant construction qualification, the
Company will enlarge the scope of its building construction for offering comprehensive solutions with more
perfection and higher quality to customers. The Company will reinforce and enlarge the brand awareness which
has been formed and the market share to constantly improve its core competitiveness and profitability.
   3.Main Risks faced by the Company and Solutions
    (1)Influence of Macro Economy and Policy
       The construction industry and the health-care industry, in which the Company are engaging, are influenced
greatly by macro economy and policies. The uncertainty in international and domestic economic situation and the
changes of national policy will bring potential risks to the Company’s market development and operating
management.
    Solutions: Pay constant attention to the international and domestic economic situation to make reasonable
prejudgement. Make timely adjustment for operating strategy and marketing policy and make pre-arranged
planning which copes with market changes to guarantee the smooth realization for business goals in 2016.
    (2)Risks Aggravated by the Market Competition
  With more competitions which domestic enterprises and international construction market take part in, the
Company’s overseas business operating will be impacted more or less.
    Solutions: Strengthen team construction and take first-mover advantage of the Company’s overseas business.
Draw lessons from the past, improve the capacity of management and control for the Company’s own projects to
constantly heighten the Company’s core competitiveness.
    (3)Management Risks Brought by Constant Business Scope Enlargement
       In views of the period where the Company is in speedy development, the Company has transferred from the
sub-contractor of professional decoration to the general contractor of building construction, and the speedy
development in overseas business puts forward higher demands to the Company’s organization operating and
project management.
    Solutions: Strengthen learning and training, constantly improve the quality of the on-the-job managers and
technicists, introduce high-level personnel and improve the overall management capacity and the technical
capacity of the Company to fully adapt to the pace of the Company’s speedy development

  Ⅹ.Particulars about researches, visits and interviews received in this reporting period




                                                       32
                                                                        Sino Great Wall Co., Ltd.     2016 Annual Report


1.Particulars about researches, visits and interviews received in this 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
January 20,2016              Onsite investigation     Organization
                                                                                 International Engineering Co., Ltd:
                                                                                 Record of the investors relations
                                                                                 activities on January 20, 2016.

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

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

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

                                                                                 The interactive relation with the
                                                                                 investors on Shenzhen Stock Exchange
                                                                                 platform about Sino Great Wall
May 4,2016                   Onsite investigation     Organization
                                                                                 International Engineering Co., Ltd:
                                                                                 Record of the investors relations
                                                                                 activities on May 4, 2016.

                                                                                 The interactive relation with the
                                                                                 investors on Shenzhen Stock Exchange
                                                                                 platform about Sino Great Wall
May 24,2016                  Onsite investigation     Organization
                                                                                 International Engineering Co., Ltd:
                                                                                 Record of the investors relations
                                                                                 activities on Maty 24, 2016.

                                                                                 The interactive relation with the
September 2,2016             Onsite investigation     Organization
                                                                                 investors on Shenzhen Stock Exchange


                                                          33
                                                                         Sino Great Wall Co., Ltd.     2016 Annual Report


                                                                                  platform about Sino Great Wall
                                                                                  International Engineering Co., Ltd:
                                                                                  Record of the investors relations
                                                                                  activities on September 2, 2016.

                                                                                  The interactive relation with the
                                                                                  investors on Shenzhen Stock Exchange
                                                                                  platform about Sino Great Wall
November 17,2016              Onsite investigation        Organization
                                                                                  International Engineering Co., Ltd:
                                                                                  Record of the investors relations
                                                                                  activities on November 17, 2016.

                                                                                  The interactive relation with the
                                                                                  investors on Shenzhen Stock Exchange
                                                                                  platform about Sino Great Wall
December 23,2016              Onsite investigation        Organization
                                                                                  International Engineering Co., Ltd:
                                                                                  Record of the investors relations
                                                                                  activities on December 23, 2016.

Reception times                                                                                                          9

Reception agency amount                                                                                                 40

Reception personal number                                                                                                0

Others                                                                                                                   0

Whether to disclose, reveal or disclose non-public
                                                     No
  material information




                                                              34
                                                                               Sino Great Wall Co., Ltd.       2016 Annual Report




                                                   V. Important Events



ⅠSpecification of profit distribution of common shares and capitalizing of common reserves

Formulation, implementation and adjustment of profit distribution policy of common shares especially cash
dividend policy during the reporting period
√ Applicable □Not applicable

On August 25, 2016, the 12th meeting of the 7th Board of Directors was convened to deliberate and approve the
Proposal on the Amendment of the Articles of Association, of which, the amendments include Article 162, Profit
Distribution Policy of the Articles of Association.
On December 16, 2016, the third Ppovisional Shareholders Meeting in 2016 was convened to deliberate and
approve the Proposal on the Amendment of the Articles of Association.

The details are as follows:

      Article 162 Profit Distribution Policy                    Article 162 Profit Distribution Policy

      The company's profit distribution shall attach            The company's profit distribution shall attach importance
  importance to the reasonable investment return for        to the reasonable investment return for investors, especially
  investors, especially the small and medium-sized          the small and medium-sized investors, and take into account
  investors, and take into account its sustainable          its sustainable development, establish a sustained, stable and
  development, establish a sustained, stable and            positive dividend policy, and adopt the methods of profit
  positive dividend policy, and adopt the methods of        disribution in cash, stock, the combination of cash and stock
  profit disribution in cash, stock, the combination of     or other ways permitted by laws or regulations.
  cash and stock or other ways permitted by laws or
                                                                (1) The Principle of Profit Distribution
  regulations.
                                                                The company shall implement a sustained and stable
      (1) The Principle of Profit Distribution
                                                            profit distribution policy, pay attention to the reasonable
      The company shall implement a sustained and           investment return for investors and give consideration to its
  stable profit distribution policy, pay attention to the   long-term and sustainable development; the company's profit
  reasonable investment return for investors and give       distribution must not exceed the cumulative distributive
  consideration to its long-term and sustainable            profit.
  development; the company's profit distribution must
                                                                (2) The Forms of Profit Distribution
  not exceed the cumulative distributive profit.
                                                                The company can adopt the methods of profit distribution
      (2) The Forms of Profit Distribution
                                                            in cash, stock or the combination of cash, or other ways
      The company can adopt the methods of profit           permitted by laws or regulations and shall give priority to the
  distribution in cash, stock or the combination of cash,   method of cash dividends.
  or other ways permitted by laws or regulations and
                                                                 (3) The Specific Conditions and Proportion of Cash
  shall give priority to the method of cash dividends.
                                                                Dividends


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                                                                                     Sino Great Wall Co., Ltd.       2016 Annual Report



(3) The Specific Conditions and Proportion of Cash                   1, The implementation of cash dividends must satisfy
Dividends                                                        simultaneously the following conditions:

  1, The implementation of cash dividends must satisfy           (1) The earnings per share of the year shall not be less than
  simultaneously the following conditions:                       0.1 yuan;

  (1) The earnings per share of the year shall not be less (2) The cumulative distributive profits per share of the year
  than 0.1 yuan;                                               shall not be less than 0.2 yuan;

(2) The cumulative distributive profits per share of the        (3) Unqualified audit reports of the company's annual or
year shall not be less than 0.2 yuan;                          semi-annual financial statements shall be issued by the audit
                                                               institution;
(3) Unqualified audit reports of the company's annual or
semi-annual financial statements shall be issued by the              (4) No events such as major investment plans or major
audit institution;                                               cash expenditures occured (excluding the fund-raising
                                                                 projects).
  (4) No events such as major investment plans or
  major cash expenditures occured (excluding the                     Any event meeting any of the following criteria constitute
  fund-raising projects).                                        a major investment plan or major cash expenditure:

      Major investment plan or major cash expenditure                1) The accumulated expenditures of the company’s planed
  refers to the accumulated expenditures of the                  foreign investment, assets acquisition, equipment purchase,
  company’s     planed     foreign     investment,   assets     loan return and bond redemption that has already been
  acquisition or equipment purchase, house buildings             implemented in the year or will be implemented in the next
  and land-use rights in the next 12 months reach or             12 months reach or exceed 50% of the latest total audited
  exceed 30% of the latest total audited assets of the           assets of the company and the expenditures above-mentioned
  company and the expenditures above-mentioned must              must exceed RMB 50 million;
  exceed RMB 50 million.
                                                                     2) The accumulated expenditures of the company’s
      2, the Provisions on Proportion of Cash Dividends          planed foreign investment, assets acquisition, equipment
                                                                 purchase, loan return and bond redemption that has already
      (1) The company shall maintain the continuity and
                                                                 been implemented in the year or will be implemented in the
  stability of the profit distribution policy. Under the
                                                                 next 12 months reach or exceed 30% of the latest total
  conditions that satisfying cash dividends, the yearly
                                                                 audited assets of the company and the expenditures
  profits distributed with cash shall be no less than
                                                                 above-mentioned must exceed RMB 50 million.
  10% of the distributive profits achieved in the year,
  and within any three consecutive years, the profits            2, the Provisions on Proportion of Cash Dividends
  distributed with cash shall be no less than 30% of the
                                                                     (1) The company shall maintain the continuity and
  average distributive profits achieved in the three
                                                                 stability of the profit distribution policy. Under the
  consecutive years;
                                                                 conditions that satisfying cash dividends, the yearly profits
(2) The distributive profits un-allocated of the year can        distributed with cash shall be no less than 10% of the
be allocated in subsequent years;                                distributive profits achieved in the year, and within any three
                                                                 consecutive years, the profits distributed with cash shall be
  (3) The profit distribution shall not exceed the scope
                                                                 no less than 30% of the average distributive profits achieved
  of the cumulative distributive profits, and shall not
                                                                 in the three consecutive years;
  impair the company's continuous operation ability.
                                                                 (2) The distributive profits un-allocated of the year can be
       (4) Time Interval of the Dividend Distribution
                                                                 allocated in subsequent years;


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                                                                                     Sino Great Wall Co., Ltd.         2016 Annual Report



     Under     the   conditions     that   satisfying   cash     (3) The profit distribution shall not exceed the scope of the
  dividends, the company will actively adopt cash                cumulative distributive profits, and shall not impair the
  dividends as the method of dividend distribution. In           company's continuous operation ability.
  principle, cash dividends will be implemented
                                                                     (4) Time Interval of the Dividend Distribution
  annually, and Board of Directors can propose the
  company to implement medium-term cash dividends                   Under the conditions that satisfying cash dividends, the
  in accordance with the company profitability and               company will actively adopt cash dividends as the method of
  financial needs.                                               dividend distribution. In principle, cash dividends will be
                                                                 implemented annually, and Board of Directors can propose
(5) The Issuance Conditions of Share Dividends
                                                                 the company to implement medium-term cash dividends in
  Based on the annual earnings and cash flow and on              accordance with the company profitability and financial
  the premise of guaranteeing the minimum cash                   needs.
  dividend ratio and the reasonable equity scale and
                                                                    (5) The Issuance Conditions of Share Dividends
  ownership structure, the company can pay attention
  to synchronizing equity expansion with business                Based on the annual earnings and cash flow and on the
  growth and consider to take the method of share                premise of guaranteeing the minimum cash dividend ratio
  dividend to distribute profits.                                and the reasonable equity scale and ownership structure, the
                                                                 company can pay attention to synchronizing equity expansion
     (6) Differentiated Cash Dividend Policies
                                                                 with business growth and consider to take the method of
     The Board of Directors shall take into account              share dividend to distribute profits.
  such factors as the characteristics of the industry the
                                                               (6) Differentiated Cash Dividend Policies
  company engage, the development stages, its own
  business models, profitability and whether there are              The Board of Directors shall take into account such
  major capital expenditure arrangements, distinguish            factors as the characteristics of the industry the company
  the following situations, and propose differentiated           engage, the development stages, its own business models,
  cash dividend policies in accordance with the                  profitability and whether there are major capital expenditure
  procedures stipulated in the Article of Association:           arrangements, distinguish the following situations, and
                                                                 propose differentiated cash dividend policies in accordance
     1, If a profit distribution occurs when the
                                                                 with the procedures stipulated in the Article of Association:
  company is in mutual development stage and has no
  major capital expenditure arrangements, the cash                  1, If a profit distribution occurs when the company is in
  dividends shall account for at least 80% of the total          mutual development stage and has no major capital
  profits to be distributed;                                     expenditure arrangements, the cash dividends shall account
                                                                 for at least 80% of the total profits to be distributed;
     2, If a profit distribution occurs when the
  company is in mutual development stage and has                    2, If a profit distribution occurs when the company is in
  major capital expenditure arrangements, the cash               mutual development stage and has major capital expenditure
  dividends shall account for at least 40% of the total          arrangements, the cash dividends shall account for at least
  profits to be distributed;                                     40% of the total profits to be distributed;

  3, If a profit distribution occurs when the company is            3, If a profit distribution occurs when the company is in
  in growth stage and has major capital expenditure              growth stage and has major capital expenditure arrangements,
  arrangements, the cash dividends shall account for at          the cash dividends shall account for at least 20% of the total
  least 20% of the total profits to be distributed;              profits to be distributed;

4, If the company's development stage is hard to 4, If the company's development stage is hard to distinguish but


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                                                                                            Sino Great Wall Co., Ltd.          2016 Annual Report


distinguish but there are major capital expenditure there are major capital expenditure arrangements, the distribution
arrangements, the distribution of cash dividends can be of cash dividends can be dealt with in accordance with the
dealt with in accordance with the preceding provisions.4              preceding provisions.

(7) The Specific Conditions, Decision-making Process                        (7) The Specific Conditions, Decision-making Process and
and Mechanism to Adjust Profit Distribution Policy                    Mechanism to Adjust Profit Distribution Policy

      Considering the production and management,                           Considering the production and management, investment
  investment planning, long-term development needs                      planning, long-term development needs and external business
  and external       business environment, when the                     environment, when the adjustment or change to the profit
  adjustment or change to the profit distribution policy                distribution policy determined by the Article of Association is
  determined by the Article of Association is absolutely                absolutely necessary, the scheme for adjustment or change
  necessary, the scheme for adjustment or change shall                  shall be drawn up by and submitted to the general meeting of
  be drawn up by and submitted to the general meeting                   shareholders by the Board of Directors for diliberation. When
  of shareholders by the Board of Directors for                         the general meeting of shareholders deliberates the change
  diliberation.     When      the     general         meeting    of     for profit distribtion policy, it is a must that the deliberation is
  shareholders deliberates the change for profit                        past by 2/3 of the voting rights held by the shareholders
  distribtion policy, it is a must that the deliberation is             present at the meeting and convenience is provided for the
  past by 2/3 of the voting rights held by the                          small and medium shareholders to attend the general meeting
  shareholders present at the meeting and convenience                   of shareholders. Independent directors shall express their
  is provided for the small and medium shareholders to                  explicit independent opinions on the adjustment or change of
  attend      the   general   meeting        of       shareholders.     profit distribution policy, and the Board of Supervisors shall
  Independent directors shall express their explicit                    publish the audit opinion.
  independent opinions on the adjustment or change of
                                                                             (8) The Decision-making Process of Profit Distribution
  profit     distribution   policy,    and      the     Board    of
                                                                           Policy
  Supervisors shall publish the audit opinion.
                                                                           The annual profit distribution plan of the company shall
       (8) The Decision-making Process of Profit
                                                                        be proposed and laid down by the company’s management
     Distribution Policy
                                                                        and Board of Directors with the consideration of the
      The annual profit distribution plan of the                        provisions of the Article of Association, profitability, capital
  company shall be proposed and laid down by the                        needs and shareholder return planning, and be deliberated
  company’s management and Board of Directors with                     and approved by the the general meeting of shareholders after
  the consideration of the provisions of the Article of                 being reviewed by the Board of Directors. Independent
  Association,      profitability,    capital         needs     and     opinions to the profit distribution plan shall be made and
  shareholder return planning, and be deliberated and                   publicly disclosed by independent directors.
  approved by the the general meeting of shareholders
                                                                              (9) The Board of Directors shall carefully study and
  after being reviewed by the Board of Directors.
                                                                        demonstrate the timing, conditions, minimum proportions,
  Independent opinions to the profit distribution plan
                                                                        conditions for adjustment and other decision-making
  shall be made and publicly disclosed by independent
                                                                        rocedural requirements of the cash dividend distribution in
  directors.
                                                                        the process of deliberating and making the profit distribution
           (9) The Board of Directors shall carefully study             plan; the       independent directors shall express explicit
  and demonstrate the timing, conditions, minimum                       opinions on it. The recommendations of the management, the
  proportions, conditions for adjustment and other                      key points of the speech by shareholders attending the
  decision-making rocedural requirements of the cash                    meeting, the opinions of independent directors, the vote the
  dividend distribution in the process of deliberating                  Board of Directors and other contents shall be recorded in


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                                                                                   Sino Great Wall Co., Ltd.        2016 Annual Report


and making the profit distribution plan; the                   detail and be properly kept as the company archives in
independent directors shall express explicit opinions          written form.
on it. The recommendations of the management, the
                                                                     (10) The general meeting of shareholders shall vote the
key points of the speech by shareholders attending
                                                               profit distribution plan proposed by the Board of Directors
the meeting, the opinions of independent directors,
                                                               according to the laws and rules. In the deliberation of the
the vote the Board of Directors and other contents
                                                               specific scheme for cash dividends, the general meeting of
shall be recorded in detail and be properly kept as the
                                                               shareholders shall communicate and exchange actively with
company archives in written form.
                                                               the     shareholders,   especially   the   small   and   medium
    (10) The general meeting of shareholders shall             shareholders, through multiple channels, fully heed the
vote the profit distribution plan proposed by the              opinions and demands of the small and medium shareholders
Board of Directors according to the laws and rules. In         and respond to their concerns in a timely manner. The Board
the deliberation of the specific scheme for cash               of directors shall complete the distribution of dividends (or
dividends, the general meeting of shareholders shall           shares) within 2 months after the resolution of profit sharing
communicate and exchange actively with the                     plan made by the general meeting of shareholders.
shareholders, especially the small and medium
                                                             (11) When the company get the annual profits but the
shareholders, through multiple channels, fully heed
                                                             management and the Board of Directors do not propose and
the opinions and demands of the small and medium
                                                             draw up the cash dividend plans, the management needs to
shareholders and respond to their concerns in a
                                                             submit to to the Board of Directors a detailed overview to this
timely manner. The Board of directors shall complete
                                                             issue, including the reasons for not distributing the dividends
the distribution of dividends (or shares) within 2
                                                             and the purpose and using plan of the retained funds which are
months after the resolution of profit sharing plan
                                                             not distributed, and independent opinions to the profit
made by the general meeting of shareholders.
                                                             distribution plan shall be made and publicly disclosed by
   (11) When the company get the annual profits but independent directors; the overview will be deliberated by the
the management and the Board of Directors do not the general meeting of shareholders after being reviewed and
propose and draw up the cash dividend plans, the approved by the Board of Directors and it will be stated to the
management needs to submit to to the Board of general meeting of shareholders by the Board of Directors.
Directors a detailed overview to this issue, including
                                                                     (12) The company shall disclose the implementation of
the reasons for not distributing the dividends and the
                                                               profit distribution plans and cash dividend policies in the
purpose and using plan of the retained funds which
                                                               annual report and semi-annual report in strict accordance
are not distributed, and independent opinions to the
                                                               with the relevant provisions. When the company get the
profit distribution plan shall be made and publicly
                                                               annual profits but no cash dividend plans are proposed, the
disclosed by independent directors; the overview will
                                                               reasons for not distributing the dividends and the purpose and
be deliberated by the the general meeting of
                                                               using plan of the retained funds which are not distributed
shareholders after being reviewed and approved by
                                                               shall be expounded in the annual report.
the Board of Directors and it will be stated to the
general meeting of shareholders by the Board of                      (13) The Board of Supervisors shall supervise the
Directors.                                                   implementation of the company's profit distribution policies and
                                                             the shareholder return plans as well as the decision-making
   (12) The       company          shall   disclose    the
                                                             process executed by the Board of Directors and the management.
implementation of profit distribution plans and cash
                                                             When the company get the annual profits but no cash dividend
dividend     policies   in   the     annual   report   and
                                                             plans are proposed, the Board of Supervisors shall make a special
semi-annual report in strict accordance with the
                                                             statement and comment on the implementation of relevant policies
relevant provisions. When the company get the
                                                             and plans.
annual profits but no cash dividend plans are


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                                                                                Sino Great Wall Co., Ltd.   2016 Annual Report


  proposed, the reasons for not distributing the
  dividends and the purpose and using plan of the
  retained funds which are not distributed shall be
  expounded in the annual report.

      (13) The Board of Supervisors shall supervise the
implementation of the company's profit distribution
policies and the shareholder return plans as well as the
decision-making process executed by the Board of
Directors and the management. When the company get the
annual profits but no cash dividend plans are proposed,
the Board of Supervisors shall make a special statement
and comment on the implementation of relevant policies
and plans.




                                             Special explanation on cash dividend policy

Satisfy regulations of General Meeting or requirement of Article
                                                                     Yes
of Association (Yes/No)

Well-defined and clearly dividend standards and proportion
                                                                     Yes
(Yes/No)

Completed relevant decision-making process and mechanism
                                                                     Yes
(Yes/No)

Independent directors perform duties completely and play a
                                                                     Yes
proper role (Yes/No) Y

Minority shareholders have ample opportunities and their
                                                                     Yes
legitimate rights and interests are effectively protected (Yes/No)

Condition and procedures are compliance and transparent while
                                                                     Yes
the cash bonus policy adjusted or changed (Yes/No)

The profit distribution preplan or proposal and the preplan or proposal of conversion of the capital reserve into
share capital in the past three years(with the reporting period inclusive):
Profit distribution preplan for 2014:
      1 As audited by Da Hua Certified Public Accountants(Special General Partnership) , the total profit of the
Company for 2014 is RMB4,740,872 , After deduction of minority gains and losses of RMB-3,709 and income
tax expenses of RMB 453,676, net profit is RMB4,290,905,the total year-end undistributed profit is
RMB-103,768,226. The Company is neither to distribute profit nor to capitalize capital surplus for the current
year.
Profit distribution plan for 2015:
     based on the 2015 total share capital of 446.906582 million shares, The Company will transfer the capital
reserve to increase capital stock, 28 shares for every 10 shares.



                                                                     40
                                                                                       Sino Great Wall Co., Ltd.       2016 Annual Report


Dividend distribution of the latest three years
                                                                                                                                  In RMB
                                                     Net profit
                                                                           Ratio in net profit
                                                attributable to the                               Amount of cash       Proportion of cash
                                                                           attributable to the
                          Cash dividend         over of the parent                               dividends from cash dividends from cash
         Year                                                              parent company in
                          (Including Tax)          company in the                                offer to repurchase   offer to repurchase
                                                                            the consolidated
                                                    consolidated                                 shares of the funds   shares of the funds
                                                                       financial statements
                                               financial statements

2016                         101,894,700.66          473,661,862.67                    21.51%                   0.00                0.00%

2015                                    0.00         346,648,651.48                      0.00%                  0.00                0.00%

2014                                    0.00         186,857,504.45                      0.00%                  0.00                0.00%

In the reporting period, both the Company’s profit and the parent company’s retained earnings were positive
however not cash dividend distribution proposal has been put forward.
□ Applicable □ Not appliable

 II.Profit distribution plan and capitalizing of common reserves plan for the Period

√ Applicable □ Not applicable
Bonus shares for every ten shares(Shares)                                                                                                    0

Cash dividend for everty ten shares
                                                                                                                                      0.60
(Yuan)(Tax-included)

Distribute additional (shares)for 10 shares                                                                                                  0

A total number of shares as the distribution
                                                                                                                            1,698,245,011
 basis(shares)

Total cash dividend (Yuan)(Tax-included)                                                                                   101,894,700.66

Proportion of cash dividend in the distributable
                                                                                                                                  100.00%
profit (%)

                                                    Cash dividend distribution policy

If the company’s development is at the growth stage with arrangements of significant capital expenditures, the minimum proportion
of cash dividend in the profit distribution should reach 20%.

                   Details of proposal of profit distribution preplan or share conversion from capital public reserve

The Audit Report of LHZ(2017) No. 0263 issued by BDO China Shu Lun Pan Certified Public Accountants LLconfirms
that the company's net profit of 2016 that belongs to the shareholders is RMB 465,758,169.92. According to the
Article of Association, 10% of the profit, RMB 46,575,816.99, is drawn as the legal accumulation fund of the
company; At the end of this year, plus the profit of RMB 755,308,636.19, which was not distributed at the
beginning of last year, the profit serving as the distributive dividends for all shareholders is RMB
1,174,490,989.12. The company intends to distribute the cash dividends of RMB 0.60 yuan per 10 shares (tax incl.)
to all shareholders, taking the total equity of RMB 1,698,245,011 on December 31, 2016 as the base, with a total
distribution of RMB 101,894,700.66. The remaining un-allocated profit of RMB 1,072,596,288.46 will be carried
over to the next year.


                                                                      41
                                                                              Sino Great Wall Co., Ltd.           2016 Annual Report


III.Commitments to fulfill the situation

1.The fulfilled commitments in the reporting period and under-fulfillment commitments by the end of the
reporting period made by the company, shareholder, actual controller, acquirer, director, supervisor,
senior management personnel and other related parities.

√ Applicable    □ Not applicable
                                                                                                                       Peiod
                                                                                                            Time of
                                       Commitment                                                                          of   Fulfil
            Commitment                               Type                    Contents                       making
                                            maker                                                                      commi lment
                                                                                                          commitment
                                                                                                                       tment

Commitment on share reform             No                   No                                                         No       No

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

                                                            Shares acquired by purchases of assets
                                                            through issuing shares: “I will not
                                                            transfer the new shares of Victor
                                                            Onward Holdings acquired through this
                                                            restructuring, including but not limited
                                                            to the public transfer through the stock
                                                            market or by agreement, and I will not
                                                            entrust anybody else to manage my
                                                            shares of Victor Onward Holdings,
                                                            within 36 months from the date new
                                                            shares list and before the date I’ve
                                                            carried    out    my     obligations     of
                                                            performance compensation under this
                                                                                                                                Strict
                                                            restructuring(subject to whatever is                       36
                                       Chen Lue, He Stock                                                 March                  perf
Commitments in assets reorganization                        early, hereinafter referred to as “lock-up                month
                                        Feiyan      lock                                                  19,2015                ormi
                                                            periods”). If the closing price of shares                 s
                                                                                                                                 ng
                                                            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.


                                                              42
                                          Sino Great Wall Co., Ltd.                2016 Annual Report


                   if    ex-dividend         behaviors       of      the
                   company,        including     distribution        of
                   dividends, giving bonus, conversion of
                   share capital, rationing shares, and etc.,
                   were           happened        during             the
                   above-mentioned            periods.       If      the
                   restructuring transaction were March
                   19,2015 36 mont hs Strict perfor ming
                   Shenzhen         Victor     Onward         Textile
                   Industrial Co., Ltd. The Third Quarterly
                   Report 2015. 14 investigated by judicial
                   authorities       or       China      Securities
                   Regulatory Commission due to false
                   record, misleading statement or major
                   omission of the information provided or
                   disclosed, I will not transfer my shares
                   of the company before the conclusion of
                   the case has been made clear. After the
                   above-mentioned lock-up periods, I will
                   sell or transfer the new shares of the
                   company          acquired          from          this
                   restructuring          following          relevant
                   regulations       of       China      Securities
                   Regulatory commission and Shenzhen
                   Stock Exchange.

                   Shares acquired by matching funds
                   raised: “I will not transfer the new
                   shares of Victor Onward Holdings
                   acquired through this issuing by any
                                                                                                Strict
                   way, including but not limited to the                                36
           Stock                                                           March                 perf
Chen Lue           public transfer through the stock market                             month
           lock                                                            19,2015               ormi
                   or by agreement, within 36 months from                               s
                                                                                                 ng
                   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
           No      haven’t possessed funds of Sino Great                                       Strict
           capital Wall; After the transaction is completed, March                      Long-t perf
Chen Lue
           occupa I and other companies controlled by me 19,2015                        erm      ormi
           tion    (if any), except for listed companies and                                     ng
                   their holding subsidiaries, will not
                   possess the funds of listed companies or

                        43
                                         Sino Great Wall Co., Ltd.         2016 Annual Report


                    Sino Great Wall by any way, including
                    cash in advance, other expenses, direct
                    or indirect loans, assumption, etc. and
                    try our best to avoid fund intercourse
                    with listed companies or Sino Great
                    Wall, which has nothing to do with
                    normal operations. If Sino Great Wall
                    got      penalized      by      government
                    administration departments due to the
                    money lending which was happened
                    before the transaction, I will bear the
                    total compensation for the company’s
                    loss resulting from it by cash in order to
                    guarantee Sino Great Wall won’t suffer
                    any loss. Meanwhile, I will actively
                    urge Sino Great Wall to establish
                    complete inner control system and
                    funds management system within lawful
                    authority.

                    In view of the fact that the houses
                    rented by Sino Great Wall and it’s son
                    subsidiaries, subsidiaries, haven’t rental
           Cash     registration, I promise, if Sino Great                            Strict
           compe Wall        and    its     son     subsidiaries, March         Long-t perf
Chen Lue
           nsatio subsidiaries, were penalized by real 19,2015                  erm    ormi
           n        estate   management          department   or                       ng
                    suffered other losses resulting from it, I
                    agree to compensate the loss of the
                    company by cash.

                    During the reporting period, the project
                    which Sino Great Wall is involved in is
                    the decoration engineering construction
                    project of Libo Grand Hotel (hereinafter
                    referred to as “Libo project”) which the
                    company contracted before the bidding
           Cash                                                                       Strict
                    process. Sino Great Wall is not involved
           compe                                                   March        Long-t perf
Chen Lue            in any other projects except for Libo
           nsatio                                                  19,2015      erm    ormi
                    project before bidding process. As to the
           n                                                                           ng
                    violating issues existed in the Libo
                    project, I promise as follows: if Sino
                    Great Wall got penalized by government
                    administration departments or suffered
                    any economic loss resulted from it, I
                    will compensate the company by cash;

                      44
                                          Sino Great Wall Co., Ltd.                    2016 Annual Report


                    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
           Cash     ligation and arbitration cases, exceed                                        Strict
           compe the          amount      of        liabilities       which March           Long-t perf
Chen Lue
           nsatio recognized in the “Audit Report” made 19,2015                           erm    ormi
           n        for Sino Great Wall by Ruihua CPA                                              ng
                    (Special Ordinary Partnership) on the
                    basis of the audit base day of July 31st,
                    2014, I promise to bear the balance by
                    cash unconditionally so as to guarantee
                    the parent-subsidiaries of Sino Great
                    Wall won’t suffer any loss. 2. This
                    commitment letter is irrevocable.

                    1. On condition that ownership defect
                    exists in the lease of house property of
                    parent-subsidiary companies of Sino
                    Great        Wall     and            its      subsidiary
                    corporation, which resulted in inability
                    for parent-subsidiary companies of Sino
                    Great        Wall     and            its      subsidiary
                    corporation to continue leasing this
           Cash                                                                                   Strict
                    house property but having to relocate,
           compe                                                               March        Long-t perf
Chen Lue            or parent-subsidiary companies of Sino
           nsatio                                                              19,2015      erm    ormi
                    Great        Wall     and            its      subsidiary
           n                                                                                       ng
                    corporation can’t timely find suitable
                    workplace for lawful operation in
                    related      area,    I     will       undertake      to
                    compensate                by               cash      for
                    parent-subsidiary companies of Sino
                    Great Wall’s losses which are caused by
                    operation and finance due to the
                    above-mentioned matters. 2. I undertake

                         45
                                          Sino Great Wall Co., Ltd.                  2016 Annual Report


                  to unconditionally bear the relevant
                  fines by cash for parent-subsidiary
                  companies of Sino Great Wall on
                  condition that the rental house property
                  of parent-subsidiary companies of Sino
                  Great      Wall         and        its         subsidiary
                  corporation is in absence of handling
                  procedures             for         filing            house
                  leasing        ,which        resulted           in        that
                  parent-subsidiary companies of Sino
                  Great      Wall         and        its         subsidiary
                  corporation are              fined       by     property
                  administrative           department.                  3.The
                  commitment letter is irrevocable.

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

                  “At    present,       Suzhou            Lvbang           has
                  possessed one state-own land use right,
                  of which the land certificate is Suzhou
                  Guo        Yong(2014)                  No.Y2014086”,
                  locates in Danan Village, Dadian Town,
           Cash   Yongqiao District, Suzhou City with                                           Strict
           compe 32,966 square meters of area and the March                               Long-t perf
Chen Lue
           nsatio purpose for industry. Suzhou Lvbang 19,2015                             erm    ormi
           n      possesses its own factory with 9,843.87                                        ng
                  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

                    46
                                           Sino Great Wall Co., Ltd.                  2016 Annual Report


                    acquired “License of Construction Land
                    Planning         ”with            No.2014-08-001
                    approved and issued by Yongqiao
                    District, Suzhou City’s housing and
                    rural construction bureau, of which
                    other     examination              and       approval
                    procedures of construction are in the
                    process of handling “I undertake to
                    actively supervise and urge Suzhou
                    Lvbang on handling procedures of the
                    approval process involved with factor
                    refurnishing and reconstruction, and
                    which is suffered from administrative
                    punishment        by        relevant      competent
                    authorities      in     reason       of      claiming
                    certificate of title, or in which any
                    dispute     or        controversy           exist    in
                    construction and ownership, which shall
                    be my responsibility to carry out
                    solution, and I undertake to compensate
                    by cash for Suzhou Lvbang’s losses
                    which      are        due     to     this      matter,
                    guaranteeing no losses occur to Sino
                    Great Wall and Suzhou Lvbang for this
                    matter.

                    “According to the “Agreement of
                    Significant Asset            Replacement            and
                    Issue of Share to Buy Asset”(hereinafter
                    referred to as “Agreement”) signed
                    among Victor Onward Holdings, all
                    shareholders of Sino Great Wall and
                    Union Development Group Co., Ltd
                    (hereinafter referred              to as“ Union
           Cash                                                                                  Strict
                    Group”) on October 13, 2014, all the
           compe                                                              March        Long-t perf
Chen Lue            creditor’s rights and liabilities related to
           nsatio                                                             19,2015      erm    ormi
                    place-out asset before the delivery date
           n                                                                                      ng
                    of Victor Onward Holdings shall be
                    Union Group’s responsibility to carry
                    out solution; After the asset delivery
                    date, if any losses occur to Victor
                    Onward Holdings in reason of the
                    liability transfer of asset delivery,
                    personnel placement, unsettled dispute
                    or controversy and other compensation


                      47
                                               Sino Great Wall Co., Ltd.       2016 Annual Report


                         related to place-out asset, payment
                         obligation      and     punishment,        Union
                         Group or the specified third party shall
                         sufficiently compensate all losses for
                         Victor Onward Holdings for the above
                         matters. I undertake, if Union Group
                         and the specified third party refuse to
                         compensate the losses caused by the
                         above mentioned matters for Victor
                         Onward         Holdings           according      to
                         the“ Agreement”, I will compensate by
                         cash for the Victor Onward Company
                         within 5 working day in advance.
                         Meanwhile, I will reserve the resource
                         rights   for    Union       Group        and    the
                         specified third party “.

                         According to“ Agreement of Shenzhen
                         Victor Onward Textile Industrial Co.,
                         Ltd.,    Chen     Lue       and     He    Feiyan
                         Concerning             on           Performance
                         Compensation” and its supplemental
                         agreement , Chen Lue’s promised Sino
                         Great Wall that the net profit deducted
                         by incidental losses and attributable to
                Perfor the parent companies’ owners after                                Strict
Chen Lue , He mance audition of 2015, 2016 and 2017 shall May                       Long-t perf
Feiyan          commi be respectively more than RMB 345.8 11,2015                   erm    ormi
                tment million, RMB 438.5 million and RMB                                   ng
                         538.2 million. If the net profit of Sino
                         Great Wall is less than the promised net
                         profit mentioned above , Chen Lue and
                         He Feiyan will compensate for listed
                         company         in      accordance             with
                         “Performance                      Compensation
                         Agreement”      and        its     supplemental
                         agreement

Chen Lue; He             1. This reorganization is planned to
Feiyan, Wuxi             place in asset. At present, complete
Hengtai         Indepe separation has existed between me or                               Strict
Jiuding Assets ndent other enterprises under my possession September                Long-t perf
Management      compe (if any) and the listed company in staff, 30,2015             erm    ormi
Centre          tition   asset, finance, institution and business                          ng
(LP);Yantai            of Sino Great Wall. Independence exists
Zhaoxuan                 in both staff, asset, finance, institution

                           48
                                           Sino Great Wall Co., Ltd.          2016 Annual Report


Yuantai          and business and no confusion exists. 2.
Jiuding          I undertake, after this reorganization, to
Venture          ensure           the      continued              complete
Investment       separation          between         me       or      other
Centre           enterprises under my possession(if any)
(LP);Suzho     and the listed company in staff, asset,
u Taiyao         finance,          institution       and          business,
Zhongshan        sustaining the independence in the listed
Jiuding          company’s             staff,      asset,         finance,
Investment       institution and business, as follows:
Centre           (1).The Ensurance of Independence for
(LP);Jiaxing   Listed Company’s Personnel Ensure
Jiahe Jiuding    that       the         general      manager,           the
Investment       vice-general manger, the chief financial
Centre(LP)     officer, the board secretary and the
                 senior executives of the Company only
                 accept       salary        in     listed      company,
                 including no holding of any post except
                 director and supervisor in my enterprise
                 or        other        enterprises         under      my
                 possession.            2.Ensure      the         complete
                 independence exists among the listed
                 company’s labor, personnel, and salary
                 management and me. 3. The director,
                 supervisor, general manager and other
                 senior executives recommended by me
                 have       all     been         through      the     legal
                 procedures, and I will not intervene the
                 company’s board and the shareholder’s
                 decision for appointing and dismissing
                 personnel by exercising official power.
                 (2)The           Ensurance         of       the     Asset
                 Independence             of      Listed      Company
                 1.Ensure          that    the      listed        company
                 possesses business system related to
                 operation              and         the            relevant
                 completely-independent asset. 2.Ensure
                 that no occupation of mine exists in
                 capitals         and     assets     of      the     listed
                 company. 3.The Ensurance of the
                 Financial          Independence             of     Listed
                 Company 1.Ensure that the independent
                 finance department and the independent
                 financial calculating system set up by


                      49
                    Sino Great Wall Co., Ltd.        2016 Annual Report


the listed company, which possess
normative and independent financial
and accounting rules. 2. Ensure that the
listed company independently opens a
bank account, not sharing the same
bank account with me. 3.Ensure that the
financial staff of the listed company
holds no part-time post in my enterprise
and     other     enterprises         under   my
possession. 4. Ensure that the listed
company pays taxes according to law. 5.
Ensure that the listed company makes
the        financial          decision-making
independently, I will not intervene the
utilization of the listed company’s
capital.   (4)The       Ensurance        of   the
Institutional Independence of Listed
Company 1.Ensure that the listed
company sets up perfect governance
structure for the share company’s legal
person, which possesses independent
and complete institutional framework
2.Ensure that the shareholder’s meeting,
the board of director, the independent
director, the supervisor and the general
managers        exercise     official     powers
according to laws, regulations and
articles    of      incorporation          (5)The
Ensurance          of        the        Business
Independence of Listed Company 1.
Ensure     that     the      listed     company
possesses the asset, staff, qualification
and ability for independently holding
business activities, which possesses the
independent, autonomous and sustain
operation ability catering to the market.
2. Ensure that I will not intervene the
listed company’s business activities
except exercising shareholder’s rights.
3.Ensure that I or other enterprises
under my possession will avoid working
on the listed company’s main business
which            possesses             substantial
competition. 4. Ensure to reduce the


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                                              Sino Great Wall Co., Ltd.     2016 Annual Report


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

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

                        During the assets reorganization, the
                        house      property     and     land     without
Union            Incom property certificate in the disposed
                                                                                          Strict
Development e           assets within the plant area of Kuixin March             Long-t
                                                                                          perfo
Group Co.,       dispos Community of Kuichong Street of 19,2015                  erm
                                                                                          rming
Ltd.             al     Longgang District and the expected
                        compensations, as well as the expected
                        compensations         concerning       to     the

                            51
                 Sino Great Wall Co., Ltd.   2016 Annual Report


regaining of plots planned as schools
within the right of land use of Nanyou
Industrial Park of Nanshan District have
not been recorded in the assessment.
Therefore, Union Group promises that
after the reorganization, if Union or a
third party appointed by Union receives
compensations    or   incomes     related
toabove-mentioned     disposed     assets
which are house property and land
without property certificate as well as
regaining of plots planned as schools,
Union will return the benefits to Victor
Onward Holdings, in 10 working days
since the collection. The actual costs
and fees during the possession of the
house property and land and the paid as
well as the unpaid but necessary costs
and fees for the reception of the
above-mentioned benefits for Union
Group or its third party will be deducted
from the income. The specific benefits
and payable costs and fees should be
confirmed jointly by Union Group and
Victor Onward Holdings based on the
actual situations. ( Notes:On June 25,
2015,All shareholders of Victor Onward
Holdings, Union Group and Sino Great
Wall Signed supplementary agreement,
and specified that the land and houses
without ownership certificate of Victor
Onward Holdings located at the factory
area of Kuixin community of Kuichong
street office of Longgang district (the
land area is about 50,000 square meters,
the built-up area of houses is about
25,000 square meters, among them
about 18,000 square meters of buildings
at built-up area are within the plan of
removal and collection of government,
hereinafter referred as “undocumented
property) still belongs to Victor Onward
Holdings. And the benefits and risks of
the real estate without certificate are


  52
                                          Sino Great Wall Co., Ltd.     2016 Annual Report


                    enjoyed and assumed by Victor Onward
                    Holdings.”

                    According       to     the Term       5.5.3    of
                    Agreement            on      Major          Asset
                    Replacement          and    Asset      Purchase
                    Through Issuing Shares (hereinafter
                    referred to as Agreement) signed on
                    October 13, 2014 by the company and
                    all shareholders of Victor Onward Co.
                    Ltd.. and Sino Great Wall, Victor
                    Onward Holdings should obtain the
                    letter   of    approval      concerning       the
                    transferred debts of the disposed assets
                    from     the    creditor     (including       the
                    guarantee, similarly hereinafter) before
                    the date of assets delivery. In the
                    situation of debts on Victor Onward
                    Holdings       due     to   the     absence    of
                    creditor’s consent, the company or the
                    third party appointed by the company is
                    in charge of paying off debts or
Union        Cash   reaching agreement on the solution with
                                                                                      Strict
Development compe the creditor. When there are losses March                  Long-t
                                                                                      perfo
Group Co.,   nsatio caused by improper solutions of the 19,2015              erm
                                                                                      rming
Ltd          n      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


                      53
                                              Sino Great Wall Co., Ltd.                   2016 Annual Report


                       of Victor Onward Holdings in 5
                       working days after receiving the notice.
                       According        to        the Term           5.6.1   of
                       Agreement and based on the principle
                       of “staff arrangement according to the
                       assets”, the labor relations, social
                       insurance relations including pension,
                       medical      treatment,                unemployment,
                       working injury and maternity, and other
                       liable welfare and salary of all the staff
                       in Victor Onward Holdings. (including
                       but not limited to on-post Shenzhen
                       Victor Onward Textile Industrial Co.,
                       Ltd. The Third Quarterly Report 2015.
                       25 employees, employees awaiting job
                       assignments,               retired          employees,
                       retained employees with suspend salary,
                       transferred employees, and temporary
                       employees, etc) will be transferred to
                       the    company             or     the    third      party
                       appointed             by          the         company.
                       Compensations or related matters (if
                       any) due to the termination of labor
                       relationship in advance with Victor
                       Onward Holdings, the company or the
                       third party appointed by the company
                       will be in charge of the payment. The
                       company promises that for the losses
                       caused      by    matters              such    as     the
                       above-mentioned                 debt    transfers      of
                       disposed assets, personnel arrangement,
                       unsettled    disputes,            potential      debts,
                       payment obligations and penalties, the
                       company or the third party appointed by
                       the company will fully compensate for
                       the losses of Victor Onward Holdings
                       due to the above-mentioned matters
                       based on the Agreement in cash.

                       1.Guarantee       that           interest     will    be
                       transferred to other units or individuals
All directors                                                                                             Strict
                Fill   which are with compensation or without                                    Long-t
of the                                                                             July 7,2016            perfo
                returns fair conditions, neither other ways                                      erm
company                                                                                                   rming
                       which are harmful to the Company’s
                       interest will be adopted;2.Guarantee


                         54
                            Sino Great Wall Co., Ltd.            2016 Annual Report


restraint       conduction             for        the     duty
consuming behavior of directors and
senior managers;3.Guarantee that no
capital       of      the     Company              will    be
employed for engaging in investment or
consumption which are not involved
with duty performance;4.Guarantee that
the compensation system formulated by
the board of director or Compensation
and Assessment Committee is linked
with the exertion situation of the
Company’s return filling solution;5.
Shall         stock     incentive             mechanism
subsequently be introduced by the
Company, the exertion condition of the
Company’s stock incentive mechanism
which is intended to be published is
guaranteed to be linked with the
exertion situation of the Company’s
return filling solution;6.When stock
incentive mechanism is intended to be
carried out subsequently , I promise,
within the legal range, to prompt the
exertion condition of the Company’s
stock incentive mechanism which is
intended to publish is guaranteed to be
linked with the exertion situation of the
Company’s return filling solution;7. I
promise the commitments above will be
fulfilled strictly, and guarantee actual
fulfillment for the Company’s return
filling solution. Shall any commitments
be violated or be refused to fulfill by
me,       I     will        fulfill     corresponding
obligations of explanation and apology
according to relevant regulations of
Guidance on First Issue, Refinancing,
Major         Asset         Reorganization                and
Dilution for Return at Sight by CSRC,
and     will       approve            the     supervision
measures or self-discipline supervision
measures made by CSRC, SZSE and
China          Association                  for         Public
Companies. Any losses occurred upon


  55
                                                                              Sino Great Wall Co., Ltd.         2016 Annual Report


                                                             he Company or the shareholders, I am
                                                             willing to undertake the responsibility
                                                             for    corresponding    compensation   in
                                                             accordance with laws.

                                                             Guarantee      that      no    operating
                                                                                                                                Strict
                                         Chen Lue, He Fill   management will be intervened with                        Long-t
                                                                                                         July 7,2016            perfo
                                           Feiyan     returns exceeded authority, and no interest of                   erm
                                                                                                                                rming
                                                             the Company will be expropriated.

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

Equity incentive commitment              No                  No                                                        No       No

Other commitments for medium and
                                         No                  No                                                        No       No
small shareholders

Completed on time(Y/N)                   Yes

If the commitments is not fulfilled on
time, shall explain the specify reason Nil
and the next work plan


2.The existence of the company's assets or projects earnings forecasts and earnings reporting period is still
in the forecast period, the company has assets or projects meet the original profit forecast made and the
reasons explained

□Applicable     √ Not applicable

IV.Particulars about the non-operating occupation of funds by the controlling shareholder

□ Applicable     √ Not applicable
No non-operating occupation from controlling shareholders and its related party in the period.

V.Explanation of the Supervisory Committee and Independent Directors (If applicable)on the Qualified
Auditor’s Report Issued by the CPAs.

□ Applicable √ Not applicable

VI.Explain change of the accounting policy, accounting estimate and measurement methods as compared
with the financial reporting of last year.

√Applicable □Not applicable
Nil




                                                               56
                                                                            Sino Great Wall Co., Ltd.     2016 Annual Report


VII.Explain retrospective restatement due to correction of significant accounting errors in the reporting
period

□Applicable √ Not applicable
No major accounting errors within reporting period that needs retrospective restatement for the Company in the
period.

VIII.Explain change of the consolidation scope as compared with the financial reporting of last year.

√Applicable □Not applicable

     1. Companies into merger range newly in this stage

    In 2016, the company founded Sino Great wall Medicare investment Co., Ltd., Sino Great wall
Infrastructure Investment Co., Ltd. and Wuhan Vocational Hospital Co., Ltd. wholly owned by the company by
cash offer, Sino Great wall Xinan Construction Co., Ltd. (Original name: Sichuan Dinghui Construction Co., Ltd.)
which is wholly bought by subsidiary Sino International, Sino Great wall Changcheng Construction Co., Ltd.
(Original name: Sichuan Haoyao Construction Co., Ltd.) is 60% bought by share issue by the company.
Meanwhile, Shenzhou International founded newly subsidiaries called Sino Great wall Property (Hubei) Co., Ltd.
and Sino Great wall Development (Hengqin) Co., Ltd. Then the above newly founded companies and newly
bought companies began to be into the merger range of the company since 2016.

     2. Companies not into merger account range in this stage

   2In 2016, Sino International cancelled holding companies called Sino Heji Recycled Material Co., Ltd.,
which was not in the merger range.

IX. Engagement/Disengagement of CPAs

CPAs currently engaged
Name of the domestic CPAs                                            BDO China Shu Lun Pan Certified Public Accountants LLP

Remuneration for domestic accounting firm
                                                                                                                          115
(RMB’0000)

Continuous life of auditing service for domestic
                                                                                                                            2
accounting firm

Name of domestic CPA                                                                                    Liao Jiahe, Shu Shibao

Has the CPAs been changed in the current period
√ Yes □No
Whether to change the accounting firm during the audit period
□ Yes √No

Description of the CPAs, financial adiver or sponsor engaged for intemal control auditing
√Applicable      □Not applicable
In the current year, the company engaged BDO China Shu Lun Pan Certified Public Accountants LLP as the
internal control audit accounting firm, during the period, the company totally pays RMB 0.35million for the


                                                                57
                                                                      Sino Great Wall Co., Ltd.   2016 Annual Report


internal control audit expenses.

X.Situation of Facing Listing Suspension and Listing Termination after the Disclosure of the Yearly Report

□Applicable √ Not applicable

XI.Bankruptcy reorganization

□Applicable √ Not applicable
No bankruptcy reorganization for the Company in reporting period.

XII.Significant lawsuits and arbitrations of the Company

□Applicable   √ Not applicable
No significant lawsuits and arbitrations occourred in the reporting period.

XIII.Situation of Punishment and Rectification

□Applicable   √ Not applicable
No penalty and rectification for the Company in reporting period.

XIV.Credit Condition of the Company and its Controlling Shareholders and Actual Controllers

√Applicable □ Not applicable

XV.Implementation Situation of Stock Incentive Plan of the Company, Employee Stock Ownership Plan or
Other Employee Incentive Measures

√Applicable □ Not applicable
The second meeting of the seventh board of directors, the second meeting of the seventh board of supervisors and
the 2015 third extraordinary general shareholder meeting were respectively convened by the company on Nov 5,
2015 and Nov 23, 205, at which the Proposal on the First Phase of Employee Stock Ownership Plan (draft) of
Shenzhen Victor Onward Textile Industrial Co., Ltd was examined and approved.
Please refer to the published on November 7, 2015, the securities times, the Hong Kong Commercial Daily and
cninfo (www.cninfo.com.cn) on the relevant announcement.

On December 24, 2015, the company as the asset trustor of the ESOP asset management plan, together with the
asset manager- Xingzheng Securities Asset Management Co.,Ltd and the asset trustee- China Everbright Bank
Co.,Ltd signed the contract of No.57 Xing Zheng Zi Guan Xin Zhong Assets Management Contract of the
Collection Assets Management Plan which concretely explained and stipulated the information included the basic
information of the collection plan, participating in and withdrawal of the collection plan, guarantee, classification
of the collection plan, the management methods and the management rights of the customer assets in the
collection plan, the establishment of the collection plan, the expenses of the collection plan, the proceeds and its
distribution of the collection plan, investment philosophy and investment strategy, investment decision-making


                                                         58
                                                                                Sino Great Wall Co., Ltd.        2016 Annual Report


and risk control, restrictions and prohibited behaviors of investment, information disclosure of the collection plan,
transfer of the share of the collection plan, non-transaction transfer ownership and freezing and so on.
Please refer to the published on December 29, 2015, the securities times, the Hong Kong Commercial Daily and
cninfo (www.cninfo.com.cn) on the relevant announcement.
As of January 7, 2016, the company’s first phase of the employee stock ownership plan has completed the
share-purchasing by means of buying in the secondary security market, of which the average position price is
RMB44.7578 per share, the total purchase quantity is 833,187 shares which account for 0.1864% of the
company's total share capital, and the total turnover is RMB37,291,630. The lock-up period of the shares
purchased under the plan is 12 months commenced from the date of this announcement.
Please refer to the published on January 8, 2016, the securities times, the Hong Kong Commercial Daily and
cninfo (www.cninfo.com.cn) on the relevant announcement.

XVI.Material related transactions

1. Related transactions in connection with daily operation

√Applicable □ Not applicable

                                                                                       Whethe

                                                                              Trading r over
                                          Principl
                                                                                 limit   the               Market             Index
                          Subjects           e of
                                                             Amount                                        price of             of
                            of the         pricing                    Ratio in approve approve Way of               Date of
 Related Relation Type of                           Price of of trade                                      similar           informa
                           related           the                      similar                  paymen               disclosu
 parties  ship      trade                            trade RMB0’                                           trade              tion
                          transacti        related                     trades      d      d       t                    re
                                                               000                                         availabl           disclos
                             ons          transacti
                                                                                                              e                 ure
                                             ons                               (RMB limited

                                                                             ’0000) or not

                                                                                       (Y/N)
               The
             compan
             y where
               the
Qinghai                 Procure                                                                 Quarterl
             Compan
 Heyi                   ment of Material Market Market                                          y
               y’s                                           1,959             6,000 No
 Trade                  goods/s   Goods price      price                                        settleme
             director
 Co., Ltd.              ervices                                                                 nt
              holds
             the post
             of legal
             person

Give the actual situation in the report       According to the 2016 routine operational needs and the current market price of the
period where a forecast had been      procurement materials, the company is expected to complete the routinely related-party
made for the total amounts of routine transactions of total RMB 60 million with the related party Qinghai Heyi Commerce Co.,
related-party transactions by type to Ltd, which had been deliberated and approved by the 2015 annual general meeting of
occur in the current period(if any)       shareholders. In 2016, the amount of the actual transactions with Qinghai Heyi Commerce



                                                                  59
                                                                           Sino Great Wall Co., Ltd.       2016 Annual Report


                                   Co., Ltd is RMB 19.59 million, which doesn’t surpass the approved transaction limit.


2. Related-party transactions arising from asset acquisition or sold

□Applicable √ Not applicable
No related transactions by assets acquisition and sold for the Company in reporting period.

3. Related-party transitions with joint investments

□Applicable √ Not applicable
No main related transactions of joint investment outside for the Company in reporting period.

4. Credits and liabilities with related parties

√Applicable    □Not applicable
Was there any non-operating credit or liability with any related party?
□ Yes √ Not
Nil


5. Other significant related-party transactions

□Applicable √ Not applicable

No other material related transactions.

XVII.Particulars about significant contracts and their fulfillment

1. Particulars about trusteeship, contract and lease

(1) Trusteeship

□Applicable √ Not applicable
No trusteeship, contract or leasing for the Company in reporting period.

(2) Contract

□ Applicable √ Not applicable
No any contract for the Company in the reporting period.

(3) Lease

□Applicable √ Not applicable
No any lease for the Company in the reporting period..



                                                            60
                                                                                  Sino Great Wall Co., Ltd.         2016 Annual Report


2.Guarantees

√ Applicable □ Not applicable


(1)Guarantees

                                                                                                                               In RMB’0000

                     Guarantee of the Company for the controlling subsidiaries (Exclude controlled subsidiaries)

                          Relevant
                                                      Date of                                                                    Guarantee
                         disclosure                                                                                 Complete
                                                     happening          Actual                                                       for
                         date/No. of Amount of                                                                      implementa
Name of the Company                                   (Date of         mount of     Guarantee type Guarantee term                associated
                             the      Guarantee                                                                        tion
                                                      signing         guarantee                                                    parties
                         guaranteed                                                                                   or not
                                                    agreement)                                                                   (Yes or no)
                           amount
                                                                   Total of external guarantee
Total of external guarantee
                                                                 0 actually occurred in the                                                  0
approved in the report term (A1)
                                                                   report term (A2)
Total of external guarantee                                        Total of external guarantee
approved as of end of report term                                0 actually occurred as of end                                               0
(A3)                                                               of report term (A4)
                                           Guarantee of the company for its subsidiaries
                      Amount of              Actual date of
                                  Amount of                            Actual
                       guarantee               occurring                              Type of                       Complete Related
Guarantee provided to                the                              amount of                        Term
                      and date of           (signing date of                         guarantee                       d or not guarantee
                                  guarantee                           guarantee
                      disclosure              agreements
Sino Great Wall                           15,000

Sino Great Wall                           15,000

Sino Great Wall                            5,000

Sino Great Wall                           13,000

Sino Great Wall                            8,400

Sino Great Wall                           14,000

Sino Great Wall                           25,000

Sino Great Wall                           20,000

Sino Great Wall                           18,000

Sino Great Wall                           40,000

Sino Great Wall                            5,000

Sino Great Wall                           10,000

Sino Great Wall                           20,000

Sino International                        10,000

Sino International                        12,000

Sino International                        25,714



                                                                 61
                                                                                  Sino Great Wall Co., Ltd.     2016 Annual Report


Sino International                       20,000

Sino International                       20,000

Sino International                       10,000

Sino International                       10,000

Sino International                       20,000

Sino International                       50,000

                                   Guarantee of the subsidiaries for the controlling subsidiaries

                                                                                                                           Guarante
                      Relevant                                                                                                e
                                                      Date of                                                   Complete
                     disclosure                                                                                               for
      Name of the                    Amount         happening          Actual                                   implemen
                     date/No. of                                                     Guarantee      Guarantee              associate
       Company                          of            (Date o         mount of                                   tation
                         the                                                            type             term                 d
      guaranteed                    guarantee         signing         guarantee                                    or
                     guaranteed                                                                                             parties
                                                    agreement)                                                    not
                       amount                                                                                              (Yes or
                                                                                                                             no)




                               The Company’s total guarantee(i.e.total of the first three main items)

Including:

Description of the guarantee with complex method

(2)Illegal external guarantee

□ Applicable √ Not applicable

Nil

3.Situation of Entrusting Others for Managing Spot Asset
(1)Situation of Entrusted Finance

□ Applicable √ Not applicable

Nil

(2)Situation of Entrusted Loans




                                                                 62
                                                                     Sino Great Wall Co., Ltd.   2016 Annual Report


□ Applicable √ Not applicable

Nil

4. Other significant contract

XVIII.Explanation about other significant matters

√ Applicable □ Not appliable

On July 7, 2016, the 10th meeting of the 7th Board of Directors and the 7th meeting of the 7th Board of
Supervisors were convened to examined and adopted the related proposals on non-publci Issuing of Shares. On
July 25, 2016, the 2nd provisional general meeting of shareholders was convened to deliberate and approve the
related proposals on Private Issuing of Shares.

On October 14, 2016, CSRC Receipt Notice on Administrative Licensing Application released by CSRC was
received. The application documents for administrative licensing submitted by the company were reviewed and
considered to be complete and conform to the legal form by CSRC, and the administrative licensing application
was accepted by CSRC.

On December 2, 2016, CSRC Feedback Notice on the Review of Administrative Licensing Projects by CSRC was
received. The company took a prompt action to check the relevant problems seriously with agencies such as the
sponsor institution, Zhongde Securities Co., Ltd, analyzed and replied the problems one by one in accordance with
the request of the Feedback and made a public disclosure on December 27.

The company's project of private issuing of A-share remains the examination and approval by CSRC and getting
the approval is still uncertain. The company will comply with its duty of information disclosure according to the
progress of the project, and kindly ask the investors to pay attention to the investment risk.

XIX.Major issues of subsidiary

√ Applicable □ Not appliable

1, In May 2016, the company made an acquisition of 100% equity ownership of Wuhan Commercial Staff
Hospital LLC, the details of which can be acquired on the Notice of the Equity Ownership Acquisition of Wuhan
Commercial Staff Hospital LLC by Sino Great Wall Co., Ltd. published on www.cninfo.com.cn on May 11, 2016;

2, In November 2016, the wholly-owned subsidiary, Sino Great Wall International Engineering Co., Ltd. acquired
60% of the equity ownership from Sichuan Haoyao Construction Co., Ltd by means of increasing in capital and
stock, the details of which can be acquired on the Foreign Investment Notice of the Investment by Capital
Increase and Stock Expansion and the Plan to Establish A Subsidiary by the Wholly-owned Subsidiary of Sino
Great Wall Co., Ltd published on www.cninfo.com.cn on November 10, 2016.




                                                        63
                                                                                         Sino Great Wall Co., Ltd.      2016 Annual Report




            VI. Change of share capital and shareholding of Principal

                                                         Shareholders

Ⅰ.Changes in share capital

1. Changes in share capital

                                                                                                                                    In shares

                                 Before the change                     Increase/decrease(+,-)                      After the Change

                                 Amount     Proporti            Bon
                                                       Share            Capitalization
                                              on                us                       Othe                                      Proportio
                                                       allotm            of common                  Subtotal         Quantity
                                                                shar                       r                                          n
                                                        ent              reserve fund
                                                                es

                                                                                         -374
1.Shares with conditional
                              277,880,626 62.18%                          778,065,752 ,910,         403,155,185      681,035,811     40.10%
subscription
                                                                                          567

                                                                                         -374
3.Other domestic shares       277,880,626 62.18%                          778,065,752 ,910,         403,155,185      681,035,811     40.10%
                                                                                          567

                                                                                         -337
Including :Domestic
                                 99,888,348 22.35%                        279,687,374 ,096,          -57,408,676      42,479,672      2.50%
Legal person shares
                                                                                          050

                                                                                          -37,
Domestic natural person
                              177,992,278 39.83%                          498,378,378 814,          460,563,861      638,556,139     37.60%
shares
                                                                                          517

II.Shares              with                                                               374,
                              169,025,956 37.82%                          473,272,677 910,          848,183,244    1,017,209,200     59.90%
unconditional subscription                                                                567

                                                                                          374,
1.Common shares in
                                 99,604,053 22.29%                        278,891,349 910,          653,801,916      753,405,969     44.36%
RMB
                                                                                          567

2.Foreign shares in
                                 69,421,903 15.53%                        194,381,328          0    194,381,328      263,803,231     15.54%
domestic market

III. Total of capital shares 446,906,582 100.00%                        1,251,338,429              1,251,338,429   1,698,245,011 100.00%

Reasons for share changed
√ Applicable □Not applicable

In 2016, upon the base of total share capital of 446,906,582 shares on the date of December 31, 2015, 28 shares
were increased for every 10 shares to all the shareholders by converting capital reserve into share capital,


                                                                        64
                                                                                      Sino Great Wall Co., Ltd.             2016 Annual Report


therefore the total increased shares by converting capital reserve into share capital were 1,251,338,429 shares, so
the total share capital were 1,698,245,011 shares after such share increasing by converting capital reserve into
share capital.
Approval of Change of Shares
□ Applicable √ Not applicable
Ownership transfer of share changes
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to
common shareholders of Company in latest year and period
□ Applicable √ Not applicable
Other information necessary to disclose for the company or need to disclosed under requirement from security
regulators
□ Applicable √ Not applicable

2. Change of shares with limited sales condition

√ Applicable □Not applicable
                                                                                                                                           In shares

                                                                  Number of
                                             Number of                             Restricted Shares                                 Date of
                     Initial Restricted                           Increased                                  Reason for
 Shareholder Name                           Unrestricted                           in the End of the                                Restriction
                          Shares                               Restricted Shares                       Restricted Shares
                                          Shares This Term                              Term                                        Removal
                                                                  This Term

                                                                                                       The major asset

                                                                                                       restructuring and

                                                                                                       the      issue      of
Chen Lue                  138,248,490                      0        387,095,772         525,344,262 shares                 to October 14,2018

                                                                                                       purchase         assets

                                                                                                       and               raise

                                                                                                       matching funds

                                                                                                       The major asset

                                                                                                       restructuring and

                                                                                                       the      issue      of
                                                                                                                                 November
Chen Lue                    14,735,772                     0         41,260,162          55,995,934 shares                 to
                                                                                                                                 27,2018
                                                                                                       purchase         assets

                                                                                                       and               raise

                                                                                                       matching funds
Shanghai Financial
                                                                                                       The major asset
Development                 20,079,080         76,300,504            56,221,424                    0                             October 14,2016
Investment                                                                                             restructuring and


                                                                     65
                                                            Sino Great Wall Co., Ltd.         2016 Annual Report


Fund(LP)
                                                                         the      issue      of

                                                                         shares              to

                                                                         purchase         assets

                                                                         and               raise

                                                                         matching funds

                                                                         The major asset

                                                                         restructuring and

                                                                         the      issue      of
He Feiyan            14,421,173                40,379,284     54,800,457 shares              to October 14,2018

                                                                         purchase         assets

                                                                         and               raise

                                                                         matching funds

                                                                         The major asset
Jiutai Fund-Bank
                                                                         restructuring and
of
Communications-                                                         the      issue      of
                                                                                                   November
Jiutai Huitong       11,178,861   42,479,672   31,300,811              0 shares              to
                                                                                                   27,2016
No.2 specific
                                                                         purchase         assets
customer asset
management plan                                                          and               raise

                                                                         matching funds

                                                                         The major asset

                                                                         restructuring and
Wuxi Hengtai
                                                                         the      issue      of
Jiuding Assets
                     10,087,004   38,330,615   28,243,611              0 shares              to October 14,2016
Management
Centre(LP)                                                             purchase         assets

                                                                         and               raise

                                                                         matching funds

                                                                         The major asset

                                                                         restructuring and
Foshan Haihui
                                                                         the      issue      of
Heying Venture
                     10,039,540   38,150,252   28,110,712              0 shares              to October 14,2016
Investment
Partnership(LP)                                                        purchase         assets

                                                                         and               raise

                                                                         matching funds
Jiangxi Taihao
                      8,366,284   31,791,879   23,425,595              0 The major asset October 14,2016
Venture Investment

                                               66
                                                           Sino Great Wall Co., Ltd.         2016 Annual Report


Centre(LP)
                                                                        restructuring and

                                                                        the      issue      of

                                                                        shares              to

                                                                        purchase         assets

                                                                        and               raise

                                                                        matching funds

                                                                        The major asset

                                                                        restructuring and
Yantai
ZhaoxuanYuantai                                                         the      issue      of
Jiuding Venture      8,353,354   31,742,745   23,389,391              0 shares              to October 14,2016
Investment
                                                                        purchase         assets
Centre(LP)
                                                                        and               raise

                                                                        matching funds

                                                                        The major asset

                                                                        restructuring and
Suzhou Tianyao
                                                                        the      issue      of
Zhongshan Jiuding
                     7,551,634   28,696,209   21,144,575              0 shares              to October 14,2016
Investment
Centre(LP)                                                              purchase         assets

                                                                        and               raise

                                                                        matching funds

                                                                        The major asset

                                                                        restructuring and

Jiaxing Jiahe                                                           the      issue      of
Jiuding Investment   7,499,912   28,499,666   20,999,754              0 shares              to October 14,2016
Centre(LP)
                                                                        purchase         assets

                                                                        and               raise

                                                                        matching funds

                                                                        The major asset

                                                                        restructuring and
Beijing Xinhe
                                                                        the      issue      of
Taida Investment
                     6,693,140   25,433,932   18,740,792              0 shares              to October 14,2016
Management
Centre(LP)                                                              purchase         assets

                                                                        and               raise

                                                                        matching funds



                                              67
                                                          Sino Great Wall Co., Ltd.           2016 Annual Report



                                                                         The major asset

                                                                         restructuring and

                                                                         the      issue      of
Wu Chenxi           5,019,770   19,075,126   14,055,356              0 shares                to October 14,2016

                                                                         purchase         assets

                                                                         and               raise

                                                                         matching funds

                                                                         The major asset

                                                                         restructuring and
Beijing Longbai
                                                                         the      issue      of
Huirun Investment
                    5,019,770   19,075,126   14,055,356              0 shares                to October 14,2016
Management
Centre(GP)                                                               purchase         assets

                                                                         and               raise

                                                                         matching funds

                                                                         The major asset

                                                                         restructuring and

                                                                         the      issue      of
Zhu Lijun           3,346,514   12,716,753    9,370,239              0 shares                to October 14,2016

                                                                         purchase         assets

                                                                         and               raise

                                                                         matching funds

                                                                         The major asset

                                                                         restructuring and
Shenzhen
Septwolves                                                               the      issue      of
Shenglian Equity    3,346,514   12,716,753    9,370,239              0 shares                to October 14,2016
Investment Fund
                                                                         purchase         assets
Co., Ltd.
                                                                         and               raise

                                                                         matching funds

                                                                         The major asset

                                                                         restructuring and

                                                                         the      issue      of
Feng Renyi          1,673,255    6,358,369    4,685,114              0                             October 14,2016
                                                                         shares              to

                                                                         purchase         assets

                                                                         and               raise



                                             68
                                                                        Sino Great Wall Co., Ltd.         2016 Annual Report



                                                                                        matching funds

                                                                                        The major asset

                                                                                        restructuring and
Shenzhen Jiayuan
                                                                                        the   issue      of
Qihang Venture
                               1,673,255      6,358,369     4,685,114              0 shares              to October 14,2016
Investment
Company(LP)                                                                             purchase      assets

                                                                                        and            raise

                                                                                        matching funds

                                                                                        The major asset

                                                                                        restructuring and

                                                                                        the   issue      of
He Sen                            430,904            0      1,206,531      1,637,435 shares              to October 14,2018

                                                                                        purchase      assets

                                                                                        and            raise

                                                                                        matching funds
Total                      277,764,226      375,246,299   777,739,833   637,778,088.2          --                  --



II.Issuing and listing

1.Explanation of the Situation of the Security Issue(No Preferred Shares) in the Report Period
□ Applicable √ Not applicable


2.Change of asset and liability structure caused by change of total capital shares and structure

√ Applicable □ Not applicable
In the report period, upon the base of total share capital of 446,906,582 shares on the date of December 31, 2015,
28 shares were increased for every 10 shares to all the shareholders by converting capital reserve into share capital,
therefore the total increased shares by converting capital reserve into share capital were 1,251,338,429 shares, so
the total share capital were 1,698,245,011 shares after such share increasing by converting capital reserve into
share capital.

3.About the existing employees’ shares


□Applicable√Not applicable




                                                           69
                                                                                       Sino Great Wall Co., Ltd.           2016 Annual Report



III.Shareholders and actual controlling shareholder

1. Number of shareholders and shareholding


                                                                                                                                       In Share

                                                                      The total number o                        Total
Total number                       Total
                                                                      f preferred shareho                       preferred shareh
of common                          shareholders at
                                                                      lders voting rights                       olders at the end
shareholders at                    the end of the
                         59,940                                       restored at period-e                   0 of the month                  0
the end of the                     month from the
                                                                      nd                                        from the date of
reporting                          date of disclosing
                                                                        (if any)(See                            disclosing the
period                             the annual report
                                                                      Notes 8)                                  annual report

                                      Shareholding of shareholders holding more than 5% shares

                                       Proporti                                                                           Number of share
                                                     Number of       Changes in        Amount of         Amount of
                       Nuture of           on of                                                                           pledged/frozen
     Shareholders                                   shares held at   reporting          restricted       un-restricted
                      shareholder          shares                                                                        State of
                                                     period -end       period          shares held       shares held                Amount
                                       held(%)                                                                          share

                    Domestic                                                                                                        434,660,59
Chen Lue                                   34.33% 582,944,556 +429,808,094             582,109,696           834,860 Mortgage
                    Natural person                                                                                                           4

STYLE-SUCCESS Foreign legal
                                            5.47%     92,970,910 +68,504,881                         0    92,970,910
LIMITED             person

                    Domestic Non-
Union Holdings
                    State-owned             5.18%     87,935,921 +44,794,889                         0    87,935,921
Co., Ltd.
                    legal person

                    Domestic
He Feiyan                                   3.23%     54,800,458 +40,379,285            54,800,458                  0
                    Natural person

Jiutai Fund-Bank
of
Communications-
Jiutai Huitong      Other                   2.50%     42,479,672 +31,300,811            42,479,672                  0
No.2 specific
customer asset
management plan

Rich Crown
                    Foreign legal
Investment Co.,                             1.37%     23,235,313 +17,120,757                         0    23,235,313
                    person
Ltd.

Jiangxi Taihao      Domestic Non-
Venture Investment State-owned              1.11%     18,791,879 +10,425,595                         0    18,791,879
Centre(LP)         legal person

Bank of China-     Other                   1.07%     18,200,320                                     0    18,200,320


                                                                     70
                                                                                 Sino Great Wall Co., Ltd.         2016 Annual Report


Fortis Income
Growth Securities
Investment Fund

ICBC-Huitianfu
private activity of
                      Other             1.02%     17,292,602                                 0     17,292,602
hybrid securities
investment fund

China National
Petroleum
Corporation           Other             0.88%     14,982,390                                 0     14,982,390
Pension Plan-
ICBC

Strategy investors or general legal
person becomes top 10 shareholders
                                      Nil
due to rights issued (if
applicable)See Notes 3)

                                      The largest shareholder of Mr. Chen Lue and the Fourth largest shareholder of Ms. He Feiyan
Explanation on associated             aforesaid are persons acting in concernp; The controlling shareholder of the above-mentioned
relationship among the aforesaid      third shareholder Shenzhen Union Holdings Co.,Ltd. and sixth shareholder Rich Crown
shareholders                          Investment Co., Ltd.. Is Union Development Group Ltd. whether the other shareholders have
                                      associated relations are unknown.

                                      Shareholding of top 10 shareholders of unrestricted shares

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

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

                                                                                                                RMB
Union Holdings Co., Ltd.                                                                           87,935,921 Common          87,935,921
                                                                                                                shares

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

                                                                                                                RMB
Jiangxi Taihao Venture Investment
                                                                                                   18,791,879 Common          18,791,879
Centre(LP)
                                                                                                                shares

Bank of China-Fortis Income                                                                       18,200,320 RMB             18,200,320


                                                                  71
                                                                                Sino Great Wall Co., Ltd.       2016 Annual Report


Growth Securities Investment Fund                                                                          Common
                                                                                                           shares

                                                                                                           RMB
ICBC-Huitianfu private activity of
                                                                                               17,292,602 Common        17,292,602
hybrid securities investment fund
                                                                                                           shares

                                                                                                           RMB
China National Petroleum
                                                                                               14,982,390 Common        14,982,390
Corporation Pension Plan-ICBC
                                                                                                           shares

                                                                                                           RMB
Qinghai Heyi Mining Co., Ltd.                                                                  13,356,984 Common        13,356,984
                                                                                                           shares

                                                                                                           RMB
Jiangwei                                                                                         9,761,860 Common        9,761,860
                                                                                                           shares

                                                                                                           RMB
Shanghai Financial Development
                                                                                                 9,540,962 Common        9,540,962
Investment Fund(LP)
                                                                                                           shares

Explanation on associated
relationship or consistent action
among the top 10 shareholders of       The controlling shareholder of the above-mentioned largest shareholder Shenzhen Union
non-restricted negotiable shares and Holdings Ltd. and third shareholder Rich Crown Investment Co., Ltd.. Is Union Development
that between the top 10 shareholders Group Ltd.
of non-restricted negotiable shares
and top 10 shareholders

Notes to the shareholders involved
in financing securities (if any)(See   Nil
Notes 4)

Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a
buy-back agreement dealing in reporting period.
□ Yes √ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company
have no buy –back agreement dealing in reporting period.

2.Controlling shareholder

Nature of Controlling Shareholders: Natural Person Holding
Type of Controlling Shareholders: Natural Person
                                                                             Whether to obtain the right of abode in other countries
                     Name                                Nationality
                                                                                                   or regions

Chen Lue                                        China                        No

Main occoupations and duties                    Chairman and General Manager of the Company


                                                                 72
                                                                          Sino Great Wall Co., Ltd.       2016 Annual Report


Situation of domestic and abroad holding
                                             Nil
listed companies in the reporting period.

Change of the actual controller in the reporting period
□ Appliable √ Not applicable
Nil


3.Information about the controlling shareholder of the Company

Actual controller nature:Domestic naturaol person
Actual controller type:Natural person
                                                                    Whether to obtain the right of abode in other countries or
                    Name                            Nationality
                                                                                             regions

Chen Lue                                    China                   No

Main occoupations and duties                Chairman and General Manager of the Company

Situation of domestic and abroad holding
                                            Nil
listed companies in the part 10 years

Changes of the actual controller in the reporting period
□Applicable √Not applicable
No Changes of the actual controller in the reporting period
Block Diagram of the ownership and control relations between the company and the actual controller




The actual controller controls the company by means of trust or managing the assets in other way

□Applicable √Not applicable

4.Particulars about other legal person shareholders with over 10% shareheld

□Applicable      √Not applicable




                                                              73
                                                              Sino Great Wall Co., Ltd.   2016 Annual Report


5.Situation of Share Limitation Reduction of Controlling Shareholders, Actual Controllers, Restructuring
Party and Other Commitment Subjects

□Applicable   √Not applicable




                                                  74
                                                              Sino Great Wall Co., Ltd.   2016 Annual Report




                                  VII. Situation of the Preferred Shares


□ Applicable √ Not Applicable
The Company had no preferred shares in the reporting period




                                                      75
                                                                                     Sino Great Wall Co., Ltd.          2016 Annual Report




                         VIII. Information about Directors, Supervisors and Senior Executives



I. Change ein shares held by directors, supervisors and senior executives


                                                                                           Amount Amount
                                                                                           of shares of shares
                                                                         Shares held increase decrease               Other        Shares held at
                                                                Expiry
                         Office                Starting date                at the         d at the d at the        changes            the
  Name      Positions              Sex   Age                   date of
                         status                 of tenure                year-begin(s reportin reportin increase/dec year-gegin(sh
                                                                tenure
                                                                            hare)             g          g           rease             are)
                                                                                           period(s period(s
                                                                                            hare)       hare)

            Board
            chairman,                          October         October
Chen Lue                In office Male    46                             153,136,462 270,000                    0 429,538,094 582,944,556
            General                            29,2015         28,2018
            Manager

Hu                                             May             October
            Director    In office Male    54                                           0            0           0             0               0
Yongfeng                                       12,2000         28,2018

            Director,
             Deputy                            October         October
Li Erlong               In office Male    41                                   3,000                0           0       8,400            11,400
             General                           29,2015         28,2018
             Manager

            Director,
Liang       Deputy                             October 29, October
                        In office Male    47                                           0            0           0             0               0
Rong        General                            2015            28,2018
            Manager

                                               October 29, October
Wang Lei Director       In office Male    53                                           0            0           0             0               0
                                               2015            28,2018

                                               October 29, October
Ban Bin     Director    In office Male    31                                           0            0           0             0               0
                                               2015            28,2018

            Independ
Tang                                           October 29, October
            ent         In office Male    51                                           0            0           0             0               0
Jianxin                                        2015            28,2018
            Director

            Independ
Zhang                                          October 29, October
            ent         In office Male    53                                           0            0           0             0               0
Yufeng                                         2015            28,2018
            Director

Jiang       Independ
                                               October 29, October
Chonggua ent            In office Male    41                                           0            0           0             0               0
                                               2015            28,2018
ng          Director


                                                                  76
                                                                                         Sino Great Wall Co., Ltd.   2016 Annual Report


           Chairman
           of the
                                                                      October
Dong       superviso                                  June
                        In office Male           67                    28,201              0          0     0           0           0
Binggen    ry                                         26,2002
                                                                       8
           committe
           e

Huang      Superviso                                  October 29, October
                        In office Male           45                                        0          0     0           0           0
Shengde r                                             2015            28,2018

Wu         Superviso                                  October 29, October
                        In office Male           36                                        0          0     0           0           0
Xiaoming r                                            2015            28,2018

Cui                                                   October 29, October
           CFO          In office Female         44                                        0          0     0           0           0
Hongli                                                2015            28,2018

           Secretary
Yang       to the                                     October 29, October
                        In office Female         45                                        0          0     0           0           0
Chunling board of                                     2015            28,2018
           directors

           Deputy                                                     Septemb
Song                                                  October
           General      Retired Female           44                   er                   0          0     0           0           0
Chenling                                              29,2015
           Manager                                                    27,2016

Total           --         --         --        --           --             --   153,139,462 270,000        0 429,546,494 582,955,956


II. Change in shares held by directors, supervisors and senior executives

√ Appicable □Not applicable

        Name            Positions               Types                  Date                               Reason

                     Deputy General                               September
Song Chenling                              Retired                                 Personal reasons
                      Manager                                     27,2016


III.Posts holding

Work Experience in the past five years of Directors, supervisors and senior Executives in Current office
(1) Director
Mr. Chen Lue, male, Chinese nationality, no overseas permanent residence, born in April 1970, currently the
doctoral students of accounting specialty in Wuhan University, Senior Management MBA of Guanghua School of
Management of Beijing University, Senior Management MBA of School of Economics and Management of
Tsinghua University, Bachelor in major of Food Science and Nutritional Engineering of China Agricultural
University, senior engineer. He had served as a technician in Zhuhai Fisheries Group Canned Food Factory,
project manager in Guangdong Yuexi Construction Company, vice general manager in Guizhou Construction
Engineering Group Dongguan Company, vice general manager in Shenzhen Great Wall Furniture Decoration
Engineering Co., Ltd. Currently, he is the Vice Chairman of Beijing Decoration Association, Director of
Informatization Committee of China Building Decoration Association, director of information technology


                                                                            77
                                                                     Sino Great Wall Co., Ltd.   2016 Annual Report


committee, executive member of China Building Decoration Association, the first chairman of Beijing-Zhanjiang
Business Association. From June 2006 to September 2014, he was the chairman of the Great Wall Construction
Engineering Co. Ltd; from December 2007 to September 2014, he served as the general manager of the Great
Wall Construction Engineering Co. Ltd; from May 2011 to September 2014, he served as the supervisor of Sino
Great Wall Construction Engineering (Liaoning) Co., Ltd. since 2001, he has been the executive director and
chairman of the board of the Sino Great Wall International Engineering Co., Ltd; since November 2007, he has
been the executive director of Sino Great Wall (Beijing) Decoration Design Co., Ltd; since February 2011, he has
been the supervisor of Sino Great Wall Decoration Engineering (Shenyang) Co., Ltd; since April 2014, he has
been the executive director and general manager of Sino Great Wall Investment (Beijing) Co., Ltd; since
September 2015, he has been the chairman and the general manager of Sino Great Wall Cubic Investment Co.,
Ltd; since October 2015, he has been the chairman of the board and the general manager of the company.
Mr. Hu Yongfeng, Chinese nationality, no overseas permanent residence ,male, born in July 1962, graduated from
East China Textile Engineering College in 1983, bachelor, senior engineer.

 Mr. Li Erlong, Chinese nationality, no overseas permanent residence, male, was born in September 1975,
graduated from the Shandong Building Materials Engineering College, MBA of Tsinghua University. He had
served as the assistant to director of the National Building Materials Quality Supervision and Inspection Center,
the researcher for the China-Africa R&D Center of Artificial Crystal. Since March 2005, he has been served as the
general manager of the Sino Great Wall International Engineering Co., Ltd; since November 2007, he has been
the general manager of Beijing Sino Great Wall Decoration Design Co., Ltd.; since June 2014, he has been the
executive director of the Sino Heji Environmental-protection Material Co., Ltd; since September 2015, he has
been the director of Sino Cubic Investment Co., Ltd; since October 2015, he has been the company’s director and
vice general manager.
Mr. Wang Lei, Chinese nationality, no overseas permanent residence,           male, born in March 1963, senior
management MBA of School of economics and management of Tsinghua University, currently pursuing the
finance EMBA of PBC School of Finance, senior engineer. He had Served as the general manager of Anshan
Yongxin Engineering General Contracting Company, vice president of Chinese Enterprises Investment Company,
director and general manager of Henan Shunyuan Aluminum Industry Co.,Ltd, director and vice chief-economist
of Henan Coal Chemical Industry Group Co., Ltd. Since April 2013, he has been the chairman of Shanghai
     Heyi Supply Chain Management Co., Ltd.; since October 2015, he has been the company’s director.
   Mr. Bai Bin, Chinese nationality, no overseas permanent residence, male, born in 1985, master of law,
possesses vocational qualification of lawyer and law. He had successively served as the lawyer of Beijing Jingda
Law Firm, investment manager, Investment Director, general manager of the asset management department and
so forth posts of Kunwu Jiuding Investment Management Co.,Ltd. Currently, he is the general manager of Jiuxin
Asset Management Co.,Ltd, director of Sino High-speed Rail technology Co.,Ltd, director of Beijing UTS
International Travel Service Co., Ltd, director of Sino Great Wall International Engineering Co., Ltd, director of
Sichuan Dawei Science and Technology Co., Ltd and so on. Since October 2015, he has been the company’s
director.

 Mr. Tang Jianxin, male, Chinese nationality, no overseas permanent residence, born in December 1965, Doctor,
Professor, doctoral supervisor, registered auditor, Certified Public Valuer. He had served as the deputy director in
Hainan Spring Auditor Firm, independent director of Wuhan Zhongnan Commercial Group Co., Ltd, independent
director of Wuhan Sanzhen Industry Holding Co., Ltd. Since 1995, he has been teaching at Wuhan University.
Currently, he is the professor and dean of accounting department of Wuhan University. From June 2008 to June


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                                                                    Sino Great Wall Co., Ltd.   2016 Annual Report


2014, he had been served as the independent director of Wuhan Zhongnan Commercial Group Co., Ltd.; from
June 2009 to July 2015, he had been served as the independent director of Wuhan Sanzhen Industry Holding Co.,
Ltd; since August 2010, he has been the independent director of Shenzhen Hua Pengfei Modern Logistics Co., Ltd;
since November 2011, he has been the independent director of Wuhan Zhongbai Group Co., Ltd.; since May 2013,
he has been the independent director of Pingdingshan Tianan Coal Industry Co., Ltd; since October 2015, he has
been the independent director of the company.
     Mr. Zhang Yufeng, male, Chinese nationality, no overseas permanent residence, born in November 1963,
Master's degree, EMBA of PBC School of Finance of Tsinghua University. He had served as the principal staff
member of the discipline inspection team stationed in Ministry of health from the Commission for Discipline
Inspection of the Central Committee of the CPC, Project Manager of China Hualian Real Estate Company, project
manager of the Import and Export Department of China Construction Engineering Corporation, lawyer of Great
Wall Law Firm of Department of Commerce. Currently, he is the director of Beijing Great Wall Law Firm; since
June 2011, he has been the independent director of NetPosa Technologies Ltd; since May 2013, he has been the
independent director of Bank of Langfang; since October 2015, he has been the independent director of the
company.Since October 2016, he has been the independent director of Dezhan Health Co., Ltd., Since February
2017, he bas been the independent director of Nanhuihuang Technology Co., Ltd.
 Mr. Jiang Chongguang, male, Chinese nationality, no overseas permanent residence, born in 1975, PhD in
finance of Chinese Academy of Social Sciences,          PhD in economics, graduated from Peking University,
Fordham University and Chinese Academy of Social Sciences. He had served as the middle, senior management
staff in Haier Group, managing director of Singapore CKSP Group. Currently, he is the researcher of the
Non-governmental organization and Public Administration Research Center of Chinese Academy of Social
Sciences, executive director of Health China Strategy Research Center; chief economist and director of Ivy capital;
vice executive chairman of the China Old-age Health International Alliance; permanent financial adviser to
China- Israel Exchange Association of the High-tech Committee of Israel Parliament; independent director of
Singapore CKSP; expert and committee member of Hospital Management Research Institute of Tsinghua
University; expert and committee member of China Social Medical Research Association of MOHRSS; since
October 2015, he has been the independent director of the company.and vice-chairman of China endowment
Health International Union, Senior management of Haier Group, Director General Manager of Singapore CKSP
Group.
 2. Supervisors
Mr. Dong Binggen, male, born in July 1949, bachelor, senior engineer, graduated from East China Textile
Engineering College in 1977. He had served as the vice president of Zhejiang Silk Industry Institute, general
manager of China Garment General Corporation, chairman of China National Garment Association, and so on.
Currently, he is the party secretary, chairman of the board and president of Union Development Group Co., Ltd;
chairman of the board of Union Holdings Co., Ltd; since June 2002, he has been the chairman of the board of
supervisors of the company.
Mr. Huang Shengde, male, born in January 1972; Hongkong Chinese; obtained the high Diploma of City
University of Hongkong in architecture, bachelor ( honorary degree ) of University of South Australia in
Architecture, MBA (financial) of the business school of The University of Manchester; he had served in the
Hopewell Slip-form Engineering Co. Ltd, China Foundation Engineering Co. Ltd, Qian Tian Construction Co.,
Ltd, Hongkong Xing Sheng Construction Co. Ltd, Wu Teng (Hongkong) Co. Ltd, Beijing Xingrong Real Estate
Development Co., Ltd, Yoma Strategic Holdings Co.,Ltd and Intecs Vantage Capitals Ltd; he had the management
and professional qualifications, including the member of 2006-Hongkong Project Management Association, the
member of 2006 Chinese Engineering Cost Association, the member of 2002 Hongkong Surveyors Association,


                                                       79
                                                                             Sino Great Wall Co., Ltd.     2016 Annual Report


the member of 2002 Royal Institution of Chartered Surveyors, the member of 2001 Australian Institute of
Quantity Surveyors Association, the member of 2001-2004 British Cost Engineers Council and the member of
2001-2004 Australian Institute of architects. Currently, he is the vice general manager of Sino Great Wall
International Engineering Co., Ltd mainly in charge of overseas business cooperation and business development;
since October, 2015, he has been the company’s supervisor.
Mr. Wu Xiaoming, male, Chinese nationality, no overseas permanent residence,born in November 1980, Bachelor
in law, graduated from the law school of Guangdong Business College (now as Guangdong University of Finance
& Economics) with major in law. He had served in Guangzhou Municipal Bureau of Quality and Technical
Supervision Haizhu Branch ( now as Guangzhou Haizhu District Bureau of Quality and Technical Supervision);
since December 2008, he has been the assistant to general manager and Legal Department Manager of Sino Great
Wall International Engineering Co., Ltd; since June 2014, he has been the chairman of the board of supervisors of
Sino Great Wall International Engineering Co., Ltd; since October 2015, he has been the company’s supervisor.

3. Senior management personnel
Please see detailed work experience of Mr. Chen Lue,Mr.Li Erlong and and Mr. Liang Rong in the column of
directors.
 Mrs. Yang Chunling, female, Chinese nationality, no overseas permanent residence, born in February 1971,
Bachelor in economics, master in industrial engineering, accountant. She had served as employee in Sinotrans
Henan Zhengzhou Logistic and Trading Company, Deputy Minister of the securities department of Aeolus Tyre
Co., Ltd, vice general manager and secretary of the board of directors of Henan Yuhua New Material Co., Ltd.
Since September 2015, she has been the director of Sino Cubic Investment Co., Ltd; since March 2014, she has
been the secretary of the board of directors of Sino Great Wall International Engineering Co., Ltd; since October
2015, she has been the secretary of the board of directors of the company.
Mrs. Cui Hongli, female, Chinese nationality, no overseas permanent residence, born in January 1972, graduated
from Henan University of Finance and Economics, CPA. She had been served in China Luoyang Float Glass
Group Co.,Ltd, Beijing Jiayou Real Estate Development Group Co.,Ltd and Yuancheng Industrial Group Co.,Ltd.
Since July 2011, she has been the investment and finance department manager, CFO of Sino Great Wall
International Engineering Co., Ltd; since October 2015, she has been the company’s CFO.
Office taking in shareholder companies

□ Applicable √Not applicable

Offices taken in other organizations
√Applicable □Not applicable

                                                                                                                    Whether
                                                                                                                    receiving
                                                                                                    Office term
Name                             Name of other units            Position   Office term start from                 remuneration
                                                                                                      ended
                                                                                                                   from other
                                                                                                                   units or not

                 Sino Great Wall International Engineering   Board
Chen Lue                                                                   October 17,2001                        Yes
                   Co., Ltd.                                 chairman

                 Beijing Sino Great Wall Decoration Design Executive
Chen Lue                                                                   November 28,2007                       No
                 Co., Ltd.                                   director

Chen Lue         Sino Great Wall Investment (Beijing) Co.,   Executive     April 22, 2014                         No



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                                                                                Sino Great Wall Co., Ltd.    2016 Annual Report


              Ltd.                                         director,Gene
                                                           ral Manager

                                                           Board
Chen Lue      China Investment & Investment Co., Ltd.                         September 14,2015                   No
                                                           chairman

                                                           Executive
Chen Lue      Shenzhen Sino Dalue Investment Co., Ltd.                        February 25,2015                    No
                                                           director

                                                           Vice
Hu Yongfeng   Union Development Group Co., Ltd.                               May 18,2012          May 17,2015 No
                                                           President

                                                           Vice       Board
Hu Yongfeng   Union Holdings Co., Ltd.                                        June 21, 2013        June 20, 2016 No
                                                           chairman

              Sino Great Wall International Engineering    General
Li Erlong                                                                     March 1,2005                        Yes
              Co., Ltd.                                    Manager

              Sino Great Wall International Engineering
Li Erlong                                                  Director           June 1,2014                         No
              Co., Ltd.

              Sino Great Wall International Engineering    Board
Li Erlong                                                                     June 29,2016                        No
              Co., Ltd.                                    chairman

              Beijing Sino Great Wall Decoration Design
Li Erlong                                                  Manager            November 28,2007                    No
              Co., Ltd.

                                                           Executive
Li Erlong     Sino Heji Environmental Material Co., Ltd.                      September 2,2015                    No
                                                           director

Li Erlong     China Investment & Investment Co., Ltd.      Director           September 14,2015                   No

                                                           Executive
              Sino Great Wall International Engineering
Liang Rong                                                 General            April 1,2003         June 29,2016 Yes
              Co., Ltd.
                                                           Manger

              Sino Great Wall International Engineering
Liang Rong                                                 Director           June 1,2014                         No
              Co., Ltd.

              Sino Great Wall International
Liang Rong                                                 Director           November 17,2014                    No
              Engineering(Macao) Co., Ltd.

                                                           Board
Wang Lei      Qinghai Heyi Mining Co., Ltd.                                   September 2, 2008                   No
                                                           chairman

                                                           Board
Wang Lei      Qinghai Heyi Trade Co., Ltd.                                    May 8, 2009                         No
                                                           chairman

              Shanghai Heyi Supply chain Management        Board
Wang Lei                                                                      April 7, 2013                       Yes
              Co., Ltd.                                    chairman

                                                           General                                 September
Bai Bin       Jiuxin Assets Management Co., Ltd.                              September 9,2015                    Yes
                                                           Manger                                  8,2018

Bai Bin       CHSR                                         Director           April 27,2016        April 28,2019 No

              Sino Great Wall International Engineering                                            October
Bai Bin                                                    Director           October 30,2015                     No
              Co., Ltd.                                                                            29,2018


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                                                                            Sino Great Wall Co., Ltd.    2016 Annual Report


                                                          Professor
                                                           ofAccountin
                                                           g
                                                           Department ,
Tang Jianxin   Wuhan University                                           December 1,2004                     Yes
                                                           Economics
                                                           and
                                                           Management
                                                           School

                                                          Independent
Tang Jianxin   Wuhan Zhongbai Group Co., Ltd.                             November 1,2011                     Yes
                                                           Director

                                                          Independent
Tang Jianxin   Pingdingshan Tianan Coal Co., Ltd.                         May 17,2013                         Yes
                                                          Director

               Yicang Dongyangguang Changjiang            Independent
Tang Jianxin                                                              October 1,2015                      Yes
               Medicine Co., Ltd.                          Director

Zhang Yufeng   Beijing Great Wall Law Firm                Director                                            Yes

                                                          Independent
Zhang Yufeng   Langfang Bank                                              May 1,2013                          Yes
                                                          Director

                                                          Independent
Zhang Yufeng   Dezhan Health Co., Ltd.                                    October 8,2016                      Yes
                                                          director

                                                          Independent
Zhang Yufeng   Henan Huihuang Technology Co., Ltd.                        February 10,2017                    Yes
                                                          director

Jiang          Centre of Health China Strategy Research of Executive
                                                                          May 1,2015                          Yes
Chongguang     Chinese Academy of Social sciences         director

Jiang          Graduate School of Chinese Academy of                                           September
                                                          MBA Tutor       September 1,2013                    Yes
Chongguang     Social Sciences                                                                 1,2019

                                                          Chief
Jiang
               Ivy Capital                                Economist, May 1,2015                              Yes
Chongguang
                                                          Director

                                                          Lifelong
Jiang          High tech Committee of the Israeli
                                                          Financial       March 1,2014                        Yes
Chongguang     parliament to exchange association
                                                          advisor

Jiang                                                     Independent                          January
               Singapor CKSP                                              December 1,2015                     Yes
Chongguang                                                 Director                            1,2025

Jiang                                                     Deputy
               China Insurance Association                                June 15,2016         June 15,2021 Yes
Chongguang                                                Secretary

Jiang                                                     Independent                          November
               Dezhan Health Co., Ltd.                                    November 1,2016                     Yes
Chongguang                                                Director                             1,2019

Jiang          China Health Economics Center, Beijing     Special
                                                                          October 1,2016                      No
Chongguang     University                                 researcher



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                                                                                Sino Great Wall Co., Ltd.     2016 Annual Report


                                                              Secretary of
                                                              Party
                                                              committee,
Dong Binggen     Union Development Group Co., Ltd.            chairman of     May 18,2012                           Yes
                                                              board of
                                                              directors and
                                                              President

                                                              Board
Dong Binggen     Union Holdings Co., Ltd.                                     June 21, 2013                         No
                                                              chairman

                                                              Deputy
                 Sino Great Wall International Engineering
Huang Desheng                                                 Generaql                                              Yes
                 Co., Ltd.
                                                              Manager

                                                              Assistant
                                                              General
                 Sino Great Wall International Engineering
Wu Xiaoming                                                   Manager,        December 1,2008                       Yes
                 Co., Ltd.
                                                              Manager of
                                                              Law Dept.

                                                              Chairman of
                 Sino Great Wall International Engineering    the
Wu Xiaoming                                                                   June 1,2014                           Yes
                 Co., Ltd.                                    supervisory
                                                              committee

                 Sino Great Wall International Engineering    Board
Yang Chunling                                                                 March 1,2014                          Yes
                 Co., Ltd.                                    secretary

Yang Chunling China Investment & Investment Co., Ltd.         Diretor         September 1,2015                      No

                                                              Manager
                 Sino Great Wall International Engineering
Cui Hongli                                                     ofInvestmen July 1,2011                              Yes
                 Co., Ltd.
                                                               t Dept, CFO

                 Except the concurrently hold posts in the above-mentioned information, the company’s directors, supervisors,
Notes
                 senior management staff do not hold other posts or concurrently hold other posts in any other companies.

Punishments to the current and leaving board directors, supervisors and senior managers during the report period
by securities regulators in the recent three years
□ Applicable √Not applicable


IV. Remuneration to directors, supervisors and senior executives

Decision-making procedures, basis for determination and actual payment of the remuneration to directors ,
supervisors and senior executives
    The remuneration appraisal committee of the board of directors of the Company proposed remuneration
standards according to the responsibilities, work scope and importance of directors, supervisors and senior
executives, the earnings of the Company for the current year and the remuneration level of relevant post and
submitted it to the board of directors for approval. After approval, the remuneration was paid on monthly basis.


                                                                83
                                                                         Sino Great Wall Co., Ltd.        2016 Annual Report


The remuneration of independent directors is subject to approval by the shareholders' meeting.
Remuneration to directors, supervisors and senior executives in the reporting period
                                                                                                                  In RMB’0000

                                                                                               Total          Remuneration
                                                                                           remuneration      actually receivect
         Name            Positions               Sex     Age             Office status
                                                                                         received from the at the end of the
                                                                                           shareholder       reporting period

                     Board Chairman,
 Chen Lue                                 Male                   46 In Office                           36.6 Yes
                     General Manager

 Hu Yongfeng         Director             Male                   54 In office                             0 Yes

                     Director, Deputy
 Li Erlong                                Male                   41 In Office                           28.2 Yes
                      General Manger

                     Director, Deputy
 Liang Rong                               Male                   47 In office                            27 Yes
                      General Manger

 Wang Lei            Director             Male                   53 In Office                             0 Yes

 Bai Bin             Director             Male                   31 In Office                             0 Yes

                     Independent
 Tang Jianxin                             Male                   51 In office                            9.5 No
                     Director

                     Independent
 Zhang Yufeng                             Male                   53 In Office                            9.5 No
                     Director

 Jiang               Independent
                                          Male                   41 In office                            9.5 No
 Chongguang          Director

                     Chairman of the
 Dong Binggen        supervisory          Male                   67 In Office                             0 Yes
                     committee

 Huang Desheng       Supervisor           Male                   45 In office                           6.75 Yes

 Wu Xiaoming         Supervisor           Male                   36 In Office                           11.7 Yes

 Cui Hongli          CFO                  Female                 44 In office                          22.56 Yes

                     Secretary to the
 Yang Chunling                            Female                 45 In Office                           14.1 Yes
                     board of directors

                     Deputy General
 Song Chenling                            Female                 44 In Office                          22.78 Yes
                      Manger

 Total                       --                    --     --        --                             198.19            --

Incentive equity to directors, supervisors or/and senior executives in the reporting period
□ Applicable √Not applicable




                                                         84
                                                                             Sino Great Wall Co., Ltd.   2016 Annual Report


V. Particulars about employees.

1.Number of staff, professional structure and educational background


Number of in-service staff of the parent company(person)                                                             20

Number of in-service staff of the main subsidiaries(person)                                                        2,000

Total number of the in-service staff(person)                                                                       2,200

Total number of staff receiving remuneration in the current
                                                                                                                     2,200
period(person)

                                                              Professional

               Classified according by Professions                              Number of persons(person)

                           Production                                                                                  50

                              Sales                                                                                  1,000

                           Technical                                                                                   50

                            Financial                                                                                 100

                         Administrative                                                                              1,000

Total                                                                                                                2,200

                                                               Education

               Classified according by Professions                              Number of persons(person)

Total                                                                                                                2,200


2. Remuneration policies

      The company, in accordance with the principle of marketization, provides competitive salary and welfare of
the industry, differentiates the salary based on the positions, rewards those who perform well, and determine the
employee’s salary level in accordance with the benefit, positions and sales performance.




3.Training plan

     The company sticks to the concept of ”people first” and values talent cultivation. To improve the employees’
professional ability and occupational skills, standardize and improve its training management, and boost
employees’ enthusiasm for learning, applying, delivering and creating knowledge, the company organizes
induction training and daily training for all employees and conducts induction training for fresh undergraduates
recruited from university campus. It also opens up networking academy, where it has complete curriculum system
for all employee to study independently and hold training lectures specially for improving professional skills or
knowledge on a regular basis. The company also carries out points system for employee training. Employees’
points gained from attending training will serve as an important basis for the performance assessment, personnel
transfer, promotion, salary adjustment, etc..


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4.Outsourcing situation

□ Applicable √ Not Applicable




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                                                                      Sino Great Wall Co., Ltd.   2016 Annual Report




                                   IX. Administrative structure


I.Basic state of corporate governance

The company’s governance meets the requirements of regular documents on the governance of the listed
companies issued by China Securities Regulatory Commission.
During the reporting period, The company has strictly abided by the relevant laws, rules and regulations requested
on “Corporate Law”, “Securities Law”, “Listing Rules of Shenzhen Stock Exchange” and
“Governance Rules of Listed Companies” and by China Securities Regulatory Commission, established and
perfected the internal control management system, and constantly made the deep improvement of the corporate
governance activities to further standardize the company operations and improve the management level. The
company’s governance meets the basic requirements of regular documents on the governance of the listed
companies issued by China Securities Regulatory Commission.
(1).Shareholders and shareholders' general meeting: The Company convened and held shareholders' general
meeting strictly according to the requirements of Opinions on Standardization of Shareholders' General Meeting
of Listed Companies, formulated Rules of Procedure of Shareholders' General Meeting, ensured all shareholders,
especially medium and small shareholders, enjoy equal position and can fully exercise their own rights.
(2).Relationship between the controlling shareholder and the Company: The acts of the controlling shareholder of
the Company were standardized. It did not exceed the authority of the shareholders' general meeting to directly or
indirectly intervene with the decision-making and operating activities of the Company. The Company is
independent from its controlling shareholder in respect of personnel, assets, finance, organ and business. The
board of directors, the supervisory committee and internal organ of the Company are able to operate
independently.
(3) The Directors and The Board of Directors: the Board of Directors includes four special committees, such as
Audit Committee, Nomination Committee, Strategy Committee and Remuneration and Appraisal Committee,
which has provided a favorable support to the company for the decision-making related issues. Each special
committee has operated according to their work responsibilities and procedure rules, made research and
examination for the relative business and major issues of the company, and expressed the professional opinions in
the Board of Directors to offer support and advice for the scientific decision-making of the Board and ensure the
Board’s work more scientific and efficient. Also, the organization of the Board of Directors is in line with the
requirement of laws and regulations, and the independent directors play an important role in the corporate
decision-making. So, the company attaches importance to the function of the independent directors. In the
company’s management, the independent directors make careful review and express the independent views for the
financial audit, the affiliated transactions and other issues.
(4).Supervisors and the supervisory committee: The number and composition of the Supervisory Committee of the
Company complied with the requirements of laws and regulations. The Supervisory Committee of the Company
formulated the Rules of Procedure of the Supervisory Committee. The supervisors of the Company were able to
perform their duties seriously, take the attitude of being responsible for all shareholders and supervise the legality
and regulation conformity of the Company's finance and the duty performance of the directors, managers and
other senior executives of the Company.
(5) The Company and The Affiliated Party: the affiliated transactions between the company and the affiliated
party are strictly managed and the audit of the affiliated transactions is performed in accordance with the relevant
procedures. Also, the affiliated transactions are in compliance with the laws and regulations, and there not exist
the issues that the major shareholders make use of the affiliated transactions to occupy the funds of the listed
company.
(6)Information disclosure and transparency: The Company designated the secretary to the board of directors to be
responsible for information disclosure, Regulations on Management of Information Disclosure,Regulations on
Management of External Information Users and reception of shareholder and consultation. In the report period,
the Company was able to truly, accurately, completely and timely disclose relevant information according to the
provisions of laws, regulations and the Articles of Association of the Company. The Company will continue to
operate in a standardized way strictly according to the requirements of relevant laws and regulations including the
Company Law, further perfect company administration structure and establish and improve various regulations in

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light of the gap with the requirements of Standards of Administration of Listed Companies, ensure the
maximization of shareholders' interests and safeguard the lawful rights and interests of all shareholders.
  In the report period, The Company further increased information transparency and properly carried out publicity
work for protection of investors. It timely answered the questions of investors and communicated with medium
and small investors by making use of telephone, email, especially the platform for communication with investors
set up by Shenzhen Stock Exchange to let them know itself better.
Does there exist any difference in compliance with the corporate governance , the PRC Company Law and the
relevant provisions of CSRC,
□ Yes √ No
There exist no difference in compliance with the corporate governance , the PRC Company Law and the relevant
provisions of CSRC.

II. Independence and Completeness in business, personnel , assets, organization and finance

The company is completely separate with the controlling shareholder in terms of the business, personnel, assets,
organizations, finance and other aspects, possessing independent and complete business and independent
operating capacity.
1.Business : The Company has complete business and the ability of independent operation. It is completely
independent from its controlling shareholder in respect of business. There is no unfair related transaction or
horizontal competition between the company and the controlling shareholders or its affiliated enterprises.
 2.Personnel : The company has a completely independent personnel management and salary system. The
company’s senior manager personnel all are work in the company and receiving remunerations, and they do not
hold any other posts except the post of director or receive remunerations in the controlling shareholder and its
affiliated enterprises. The company's financial staffs do not concurrently hold posts in the controlling shareholder
and its affiliated enterprises.
3.Assets : The company possesses independent place of business, independent land use rights, ownership of
buildings and so forth assets, possesses the production system related to the production and operation, legally
possesses the equipments related to production and operation and has Independent purchase, sales system and
supporting facilities.
4.Organization : The company established a sound internal operation management organization, independently
exercising the operation and management rights, and there is no situation of confounding organization with the
controlling shareholder and its affiliated enterprises.
5.Finance:The company has a standardized financial accounting system, with an independent financial accounting
department, full-time accounting personnel and independent accounting system, being able to make financial
decisions independently. The company has set up the independent bank account and independently pays the tax.
The situation of the free-occupying of the company’s assets and funds by the controlling shareholder and its
affiliated enterprises does not exist.
   III. Horiontal Competitions
□Applicable√Not applicable

IV. Annual General Meeting and Extraordinary Shareholders’ Meetings in the Reporting Period

1.Annual General Meeting


                                             Investor
      Sessions                 Type
                                        participation ratio
                                                                   Meeting Date    Disclosure date     Disclosure index
                                                                                                       The first provisional
                                                                                                       shareholders’
                                                                                                       General meeting in
The first provisional                                                                                  2016 (No.2016-025)
                      Provisional
shareholders’                                                                                         published on
                      shareholders’                44.03% March 30,2016          March 31,2016
General meeting in                                                                                     Securities
                      General Meeting
2016                                                                                                   Times,Hong Kong
                                                                                                       Commercial Daily
                                                                                                       and Juchao Website
                                                                                                       (http://www.cninfo

                                                              88
                                                                            Sino Great Wall Co., Ltd.        2016 Annual Report


                                                                                                            .com.cn)on March
                                                                                                            31,2016.
                                                                                                            Annual General
                                                                                                            Meeting of 2015
                                                                                                            (No.2016-038)
                                                                                                            published on
                                                                                                            Securities
Annual Genral         Annual General                                                                        Times,Hong Kong
                                                     42.68% May 6,2016