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2019年10月14日 星期一

神州长城(000018)公告正文

神州B:2017年半年度报告(英文版)

公告日期:2017-08-12

                    Sino Great Wall Co., Ltd. The Semi-annual Report 2017




  Sino Great Wall Co., Ltd.
The Semi-annual Report 2017




        August 2017




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                                                                   Sino Great Wall Co., Ltd. The Semi-annual Report 2017




                   I. Important Notice, Table of Contents and Definitions

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


Mr.Chen Lue , The Company leader, Mr. Tang Xianyong, Chief financial officer and the Mr. Tang Xianyong, the
person in charge of the accounting department (the person in charge of the accounting )hereby confirm the
authenticity and completeness of the financial report enclosed in this semi-annual report.


All the directors attended the board meeting for reviewing the Semi-Annual Report.
The Company has no plan of cash dividends carried out, bonus issued and capitalizing of common reserves either.




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                                                                 Sino Great Wall Co., Ltd. The Semi-annual Report 2017




                                         Table of Contents




Semi-Annual Report 2017

I.Important Notice and Definitions

II. Corporate Profile and Key Financial Indicators

III. Business Profile

IV. Performance Discussion and Analysis

V. Important Events

VI. Change of share capital and shareholding of Principal Shareholders

VII. Situation of the Preferred Shares

VIII.Information about Directors, Supervisors and Senior Executives

IX. Corporate Bonds

X.Financial Report

XI. Documents available for inspection




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                                                                 Sino Great Wall Co., Ltd. The Semi-annual Report 2017




                                            Definition


              Terms to be defined      Refers to                                Definition

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

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

“CSRC”                               Refers to   China Securities Regulatory Commission

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

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

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

SZSE                                   Refers to   Shenzhen Stock Exchange

Reporting period                       Refers to   January 1,2017 to June 30,2017

Wuhan Commercial worker Hospital       Refers to   Wuhan Commercial worker Hospital Co., Ltd.




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                                                                          Sino Great Wall Co., Ltd. The Semi-annual Report 2017



II. Corporate Profile and Key Financial Indicators

I.Company Information

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

Stock exchange for listing      Shenzhen Stock Exchange

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

Chinese Abbreviation            神州长城     神州 B

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

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

Legal Representative            Chen Lue

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

Name                                       Yang Chunling                            Liu Guofa

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

Tel                                        010-89045855                             010-89045855

Fax                                        010-89045856                             010-89045856

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


III. Other information

(1)Way to contact the Company

Whether registrations address, offices address and codes as well as website and email of the Company changed in
reporting period or not
□ Applicable □√ Not Applicable
The registered address, office address and their postal codes, website address and email address of the Company
did not change during the reporting period. The said information can be found in the 2015 Annual Report.

(2)About information disclosure and where this report is placed

Did any change occur to information disclosure media and where this report is placed during the reporting period?
□ Applicable √ Not applicable
The newspapers designated by the Company for information disclosure, the website designated by CSRC for
disclosing this report and the location where this report is placed did not change during the reporting period. The
said information can be found in the 2016 Annual Report.

IV. Summary of Accounting Data and Financial Indicators



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                                                                                  Sino Great Wall Co., Ltd. The Semi-annual Report 2017


Indicate by tick mark whether the Company needs to retroactively restate any of its accounting data.
□ Yes √No

                                                    Reporting period             Same period of last year        YoY+/-(%)

Operating income(RMB)                                  3,025,082,356.80                 1,953,574,755.51                    54.85%

Net profit attributable to the shareholders
                                                           268,606,450.03                   202,299,416.64                    32.78%
of the listed company(RMB)

Net profit after deducting of non-recurring
gain/loss attributable to the shareholders of              264,902,836.16                   175,937,165.15                    50.57%
listed company(RMB)

Cash flow generated by business operation,
                                                          -535,997,580.19                -1,256,615,959.20                    57.35%
net(RMB)

Basic earning per share(RMB/Share)                                        0.16                          0.12                  33.33%

Diluted               gains                  per
                                                                          0.16                          0.12                  33.33%
share(RMB/Share)(RMB/Share)

Weighted average ROE(%)                                            14.39%                           14.47%                    -0.08%

                                                   As at the end of the
                                                                                 As at the end of last year      YoY+/-(%)
                                                    reporting period

Gross assets (RMB)                                       9,516,720,434.55                 7,986,178,961.63                    19.16%

Shareholders’   equity       attributable    to
                                                         1,956,577,635.45                 1,777,948,117.49                    10.05%
shareholders of the listed company(RMB)


V. Differences between accounting data under domestic and overseas accounting standards

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

□ Applicable √Not applicable

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

□ Applicable √Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign
accounting rules or Chinese GAAP(Generally Accepted Accounting Principles) in the period.

3.Note to the Difference in the Accounting Data based on the Accounting Standards of CAS and IAS.

□ Applicable √Not applicable




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                                                                   Sino Great Wall Co., Ltd. The Semi-annual Report 2017


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

√Applicable □Not applicable
                                                                                                               In RMB

                               Items                               Amount                          Notes

Govemment subsidy recognized in currentgain and loss(excluding
those closely related to the Company’s business and granted                60,363.52
under the state’s policies)

Non-operating incomeand expense other than the above                     4,291,138.93

Less: Amount of influence of income tax                                    647,888.58

Total                                                                    3,703,613.87                --

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




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                                                                     Sino Great Wall Co., Ltd. The Semi-annual Report 2017



III. Business Profile

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

Whether the company needs to comply with the disclosure requirements of the particular industry
Yes
Civil Engineering Construction

     Sino Great Wall’s main business has two aspects: the first is construction of engineering projects, and the
second is medical & health industry investment and management. The business of construction of engineering
projects mainly includes international and domestic large-scale project contracting, with the international business
mainly centering on the countries and regions along “One Belt, One Road”, and currently, the international
business covers many countries and regions such as the Middle East, Southeast Asia and Africa. The Business
scope covers building project, infrastructure project, commercial complex project etc. For the domestic business,
with the company’s continuous improvement of construction qualifications, the company’s construction income in
PPP projects, building construction, municipal Engineering, infrastructure and new energy field has gradually took
the dominant position, while the proportion of income of pure decoration business slightly decreased. The medical
& health industry investment and management mainly adopts a number of ways such as the acquisition of the
existing hospital, the construction of the new hospital and operating hospital PPP project to enter the operation and
management of medical & health industry, thus to achieve the development of both the construction business and
the medical & health business.
     Currently, the company’s construction qualifications include: first-class qualification as general contractor
of housing & construction project, first-class qualification as specialized contractor of architectural decoration
engineering design and construction, first-class qualification as specialized contractor of building curtain wall
engineering, first-class qualification as specialized contractor of ground foundation engineering, first-class
qualification as specialized contractor of firefighting facilities engineering, first-class qualification as specialized
contractor of waterproof anti-corrosion insulation engineering, second-class qualification as general contractor of
mechanical and electrical engineering construction, second-class qualification as specialized contractor of bridge
construction, second-class qualification as general contractor of petrochemical engineering construction,
second-class qualification as general contractor of municipal public engineering construction, second-class
qualification as specialized contractor of tunnel construction, second-class qualification as specialized contractor
of fabrication and installation of hydraulic metal structure, second-class qualification as general contractor of
water conservancy and hydropower project construction, third-class qualification as general contractor of railway
engineering construction, second-class qualification as general contractor of metallurgical engineering
construction, qualification regardless of grades as specialized contractor of special engineering, third-class
qualification as specialized contractor of highway pavement engineering, third-class qualification as specialized
contractor of highway subgrade engineering etc. The scope covers the engineering qualifications of building,
highway, railway, municipal utilities, water conservancy and hydropower, petrochemical, electric power and other
types of engineering.
     For the international business, as of the end of the reporting period, the bid-winning but not yet completed
orders have amounted to more than RMB 40 billion, showing a good business development. For the domestic
business, the company, through introducing the management pundits and technical experts of fields such as
medical-care and architecture, constructed a competitive business team with the senior talented personnel, and
sped up the national business layout of PPP business. Since 2016, the company has won a number of health-care
PPP projects and infrastructure PPP projects, which would provide a good project support for the company's

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                                                                           Sino Great Wall Co., Ltd. The Semi-annual Report 2017


future business performance.

Ⅱ.Major Changes in Main Assets


1. Major Changes in Main Assets


Main assets                             Major changes


Equity assets                           There is no change in equity assets.

Fixed assets                            Fixed assets increased by0.89% year on year. the change is subtle.

Intangible assets                       Intangible assets decreased by 2.99% year on year, the change is subtle.

                                        Construction in progress increased of 3,788,297.42 yuan at the beginning of the period
Construction in process                 . Mainly due to the current Suzhou plant fire construction and overseas project tower
                                        crane installation.


2. Main Conditions of Overseas Assets

□ Applicable       √ Not applicable

Ⅲ.Analysis On core Competitiveness

Whether the company needs to comply with the disclosure requirements of the particular industry
Yes
Civil Engineering Construction
    Sino Great Wall Co.,Ltd is a leading construction & engineering contractor in China with business covers
various types construction & engineering contracting. The implementation of the National Strategy of “One Belt,
One Road” will provide a good opportunity for the company's overseas business development. The company
continues to increase efforts to open up overseas markets, thus the overseas project orders have maintained a
rapid annual growth rate. With the continuous improvement of relevant construction qualifications, the company’s
domestic business also will have a lot of good opportunities as the country has been continuously promoted PPP
projects. The company's comprehensive strength, overseas influence and market competitiveness have increased
year by year.
      1. Strategic positioning advantage
      The “Construction & Engineering contracting” and “Medical & Health Business” will be the company’s two
strategic directions for future development. In 2013, the company set up the development goal “Making bigger
and stronger overseas business, and to become the world's leading international comprehensive construction &
building service provider”. In 2015, the company set up the “Medical & Health business” as another essential
development direction. All of those are to comprehensively cater the needs of the national strategies of “One Belt,
One Road” and “Medical & Health Industry Development”. The good prospects of “One Belt, One Road” projects
and “Medical & Health Industry” will provide a broad market space for the company’s business development. In
terms of engineering contracting, the early-development advantage of overseas business enables the company to
have rich management experiences and high-quality customers and establish talented teams, thus laid a solid


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                                                                  Sino Great Wall Co., Ltd. The Semi-annual Report 2017


foundation for the company’s overseas business development. In terms of the Medical & Health business, the
company has set up project teams in many domestic places such as Sichuan, Henan and Hubei, and the company
has purchased Wuhan Commercial and Vocational Hospital Co.,Ltd and won the bids of many medical and health
PPP projects. Also, the company has established cooperative relationships with many hospitals and has recruited
many kinds of talents in terms of medical, hospital management, investment and financing etc, thus provided a
strong support for the Medical & Health business development.
    2. Standardized and high-efficient management system, fully market-oriented operation mechanism
    With the increasingly expanding of the company scale and business scope, the management for the company is
becoming more complex. However, the company timely set up the sound management system and the
authorization system to standardize the approval procedures, reduce the management hierarchy tiers and improve
the work efficiency and execution, thus ensured the efficient operation of the company’s business operation. For
the operation mechanism, the company bravely faces the fierce competition in the market, adheres to the
market-oriented development, respects the objective laws of the market and constantly improves its management
level, thus to timely response to changes in the market and continuously improve the company's market image,
construction quality and profitability.
    3. Integrated design and construction advantages
    The company has a wide range, high-ranking construction qualifications, and the company has integrated
design and construction experiences and good project management capabilities, so the company is able to provide
integrated design and construction services in terms of civil engineering, decoration, mechanical and electrical
installation and full industry chain of curtain wall, and the company can independently complete the whole
process of construction project. The company can form a comprehensive advantage in the field of building
engineering, so it can reasonably schedule the procurement, labor use and construction plan, as well as the
company can constantly optimize the process to reduce the project costs. The company’s excellent design ability,
sound construction quality, high-efficient construction planning and the comprehensive high-quality service
greatly enhanced the customers’ satisfaction.
   4. Costs advantages and quality-control advantages
   The core management staff of the company all have more than 10 years experiences of building and
engineering construction. Upon the deep understanding of the industry, the company established a relatively
perfect material procurement, labor management and quality control system. Through the price ceiling mode for
procurement, the company screens the suppliers in the early stage of a project, thus to ensure that the procurement
costs of the project materials would be in a reasonable scope. By locking the technical requirements and time
requirements of the project, the company can lock the labor costs. The company has set up strict quality-control
system for the design drawing, raw material procurement and each aspect of the project construction management,
thus to strictly ensue the project construction quality, so the company has won good reputation and got trust and
recognition by a great number of customers.
     5. Talent advantage
     The company's core management team staff has many years of experience in construction work and has
strong business ability and rich experience, with strong management ability and technological level. The company
always adheres to the talent concept of "Employees are the most valuable wealth of the company", and an active
and positive management team is the cornerstone of the company's stable, healthy and sustainable development.




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                                   IV. Performance Discussion and Analysis

Ⅰ.General

      In the first half of 2017, along with the continuous implementation and further promotion of the three
strategies of the "One belt, one road" construction and the Integrated development of Beijing, Tianjin
municipalities and Hebei Province and The Yangtze River economic belt development, the infrastructure
construction and the engineering construction enjoys a relatively good development opportunity. The company
actively seized the opportunity and strongly expanded the overseas project contracting and investment business of
"One belt, one road" projects, increased the domestic healthcare and infrastructure PPP project investment, thus
gained good results.
     In terms of the overseas business development, the company has successively signed the major construction
contract with a number of countries and regions in Southeast Asia, signed Strategic Cooperation Framework
Agreement with China Nuclear Industry No. 22 Construction Co., Ltd, signed Memorandum of Understanding on
the Construction of Kampuchea Railway Network with Kampuchea Royal Group and China Railway 17 Bureau
Group Co Ltd, thus those would be conducive to expand the domestic and international engineering contracting
business and to enhance the company's competitive advantage and overall profitability. The overseas business
development maintained a good momentum of development. As of the end of the reporting period, the overseas
in-hand orders have amounted to more than RMB 40 billion. In the field of medical investment, the company, by
the means of PPP, won the PPP infrastructure project of Fugou County high speed rail area, the comprehensive
management (adjusted) PPP engineering project of Fugou county urban section, the fitness center construction
project (Phase II) ) of Fugou County, etc, with that the total investment amounted to RMB 1.061 billion.
     In the future, based on the study and judgment of the prospect and the status-quo analysis of the domestic and
international construction market and the health care industry and the infrastructure industry, the company will
continue to strengthen the overseas project contracting and investment related to "One belt, one road", enhance the
investment in domestic health-care and infrastructure PPP business, and ensure the rapid development of the
company's existing business.
      Furthermore, in order to ensure the stable development of domestic business, the company responded to the
national call of establishment the Xiongan New Area. For supporting the construction of Xiongan New Area, the
company planned to put the registration addresses of the company's subordinate companies including the building
construction type company-Sino Great Wall International Engineering Co., Ltd and Sino Great Wall Southwest
Construction Engineering Co. Ltd into the Xiongan New Area. After the move of the registration addresses, the
company can better carry out the business in the region, which is in line with the company's overall development
strategy.
    In the report term, the company realized operation income of RMB 3,025,082,356.80, an increase of 54.85%
from the last year; realized the operating profits of RMB 331,347,066.35, an increase of 55.52% from the last year;
and the net profit attributable to the parent company was RMB 268,606,450.03, an increase of 32.78% from the last
year.

Ⅱ.Main business analysis

Refer to relevant contents of “1.Summarization” in “Discussion and Analysis of Management”.
Changes in the financial data


                                                        11
                                                                       Sino Great Wall Co., Ltd. The Semi-annual Report 2017


                                                                                                                         In RMB

                           Reporting period     Same period of last year   YoY+/-(%)               Reason for change

                                                                                            Overseas projects increased,
Operating revenues           3,025,082,356.80          1,953,574,755.51            54.85% domestic PPP and general
                                                                                            contracting projects increased.

Operating costs              2,319,598,615.76          1,460,727,131.33            58.80% Due to increased income

                                                                                            Due to increased business scale
Selling expense                 18,094,586.39              9,259,264.24            95.42% increases the cost of
                                                                                            maintenance.

Administrative expense         125,176,758.15            112,993,754.29            10.78% Due to business development.

                                                                                            Due to increased short-term
Finance costs                  139,811,809.59             70,024,674.60            99.66%
                                                                                            borrowings.

Income taxes                    56,227,138.25             37,862,759.83            48.50% Due to increased profits.

                                                                                            This year to increase R & D
R &D 入                         91,252,470.70             64,858,681.88            40.69%
                                                                                            investment.

                                                                                            Mainly the current period the
Net cash generate by                                                                        payment collection is better,
                              -535,997,580.19         -1,256,615,959.20            57.35%
operating activities                                                                        more than the previous year
                                                                                            growth.

Net cash generated by                                                                       Mainly due to investment in PPP
                              -265,219,280.44           -100,287,677.86          -164.46%
investing activities                                                                        project company.

Net cash generated by                                                                       Due to the current return of
                             1,308,613,716.28          1,383,660,404.96            -5.42%
financing activities                                                                        borrowing.

Net increase in cash and                                                                    Mainly due to the increase in the
                               502,768,417.94             28,377,720.07         1,671.70%
cash equivalents                                                                            net flow of operating activities.

                                                                                            Mainly due to the normal
                                                                                            implementation of the
Prepayments                    187,002,578.78            319,206,798.63           -41.42% procurement contracts and part
                                                                                            of the advance payment turning
                                                                                            into the costs

                                                                                            Mainly due to increase of paid
                                                                                            deposit for bid and contract
Other account receivable       923,145,857.89            651,012,132.91            41.80%
                                                                                            performance for undertaking the
                                                                                            large-scale projects

                                                                                            Mainly due to the investment in
Other non-current asset        365,192,873.00            116,902,258.30          212.39% the establishment of PPP project
                                                                                            company

                                                                                            Mainly due to the increase in
Short-term loans             2,750,186,595.11          1,966,058,357.59            39.88%
                                                                                            credit



                                                           12
                                                                          Sino Great Wall Co., Ltd. The Semi-annual Report 2017


                                                                                                 Mainly due to the reclassification
Non-current liability due in
                                     814,408,879.06          175,958,998.04           362.84% of long-term borrowings due
1 year
                                                                                                 within one year

                                                                                                 Mainly due to the reclassification
Long-term loan                       444,341,594.32          786,858,878.82             -43.53% of long-term borrowings due
                                                                                                 within one year

                                                                                                 Mainly due to the increase in
Net profit attributable to the
                                     268,606,450.03          202,299,416.64             32.78% business scale during the
owners of parent company
                                                                                                 reporting period

                                                                                                 Mainly due to the smooth
Cash received from sales of
                                    1,722,890,541.67         805,577,789.73           113.87% progress of the project business
goods or rending of services
                                                                                                 and a good collection

Major changes to the profit structure or sources of the Company in the reporting period
□ Applicable √Not applicable
No such cases in the reporting period。
Breaqkdown of main business
                                                                                                                             In RMB

                                                                                              Increase/decrease Increase/decrease
                                                                          Increase/decrease
                                                                                                 of principal       of gross profit
                                                                          of reverse in the
                        Operating                         Gross profit                        business cost over     rate over the
                                        operating costs                    same period of
                         revenue                            rate(%)                            the same period      same period of
                                                                            the previous
                                                                                              of previous year the previous year
                                                                              year(%)
                                                                                                     (%)                 (%)

Industry

EPC                  2,036,940,961.32 1,518,629,390.71           25.45%            42.36%               47.50%               -2.59%

Decoration works       988,141,395.48    800,969,225.05          18.94%            92.03%               86.19%                 2.54%

Product

Area

    Domestic         1,428,218,809.70 1,017,468,548.83           28.76%             -2.02%              -3.17%                 0.84%

    Overseas         1,596,863,547.10 1,302,130,066.93           18.46%           222.11%              217.59%                 1.16%


III.Non-core business analysis

□ Applicable √Not applicable


IV.Analysis of assets and liabilities

1.Significant changes in asset composition

                                                                                                                             In RMB


                                                               13
                                                                                      Sino Great Wall Co., Ltd. The Semi-annual Report 2017


                                                    End of same period of last
                   End of Reporting period
                                                               year
                                                                                        Change in
                                       As a                                 As a
                                                                                        percentage(        Reason for significant change
                                     percentage                        percentage
                     Amount                            Amount                               %)
                                      of total                             of total
                                     assets(%)                         assets(%)

Monetary                                                                                              Mainly due to the increase in current
                 1,720,256,083.77      18.08%        114,361,163.46          1.98%          16.10%
funds                                                                                                 loans

                                                                                                      Mainly due to the progress of the
Account                                                                                               implementation of large projects,
                 4,828,966,377.80      50.74% 3,162,231,825.59              54.69%          -3.95%
receivable                                                                                            project income increased, the reporting
                                                                                                      period has not yet received payment.

                                                                                                      At the end of the period, the amount of
                                                                                                      raw materials and inventory increased,
Inventory          301,728,576.28        3.17%       245,856,552.73          4.25%          -1.08%
                                                                                                      and the unsettled part of the project
                                                                                                      was completed.

                                                                                                      Mainly due to the acquisition of
Fixed assets       127,345,176.80        1.34%        95,739,662.33          1.66%          -0.32% commercial hospitals in the current
                                                                                                      period.

                                                                                                      Mainly due to the completion of the
Construction                                                                                          installation of the Kuwaiti project
                      3,788,297.42       0.04%         2,101,034.12          0.04%           0.00%
in process                                                                                            crane and the completion of the
                                                                                                      construction of the Suzhou factory.

Short-term                                                                                            Due to the increase in bank borrowings
                 2,750,186,595.11      28.90% 1,786,708,647.08              30.90%          -2.00%
loans                                                                                                 in the current period.

Long-term                                                                                             Due to the increase in bank borrowings
                   444,341,594.32        4.67%       420,458,334.52          7.27%          -2.60%
loans                                                                                                 in the current period.


2.Asset and Liabilities Measured by Fair Value

□ Applicable √ Not applicable

3. Restricted asset rights as of end of the reporting period

As of the end of the reporting period, there were no such circumstances where any main assets of the
  Comapnyweresealed, distrained, forzed, impawned, pledged or limited in any other way.

Ⅴ.Investment situation

√ Applicable □Not applicable

 Investments made in the reporting period        Investments made in same period of last                             +/- %



                                                                      14
                                                                                  Sino Great Wall Co., Ltd. The Semi-annual Report 2017


                                                                      year

                             135,075,100.00                                   97,000,000.00                                    39.25%

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

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

□ Applicable √ Not applicable

4.Investment of Financial Asset

(1)Securities investment

□ Applicable √ Not applicable

(2)Investment in Derivatives

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

VI. Sales of major assets and equity

1. Sales of major assets

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

2.Sales of major equity

□ Applicable √ Not applicable

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

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

                                Main
Company                                                 Registered                                             Operating
              Company type     business    Industry                      Total assets Net assets   Turnover                Net profit
     name                                                   capital                                             profit
                                scope

Sino Great                   Constructio Building
Wall                         n general    decoration    470,136,09 8,490,666,7 2,052,478,2 2,959,812,9 382,673,8 329,920,483.
              Subsidiaries
Internation                  contracting, and other     9                      22.89       10.74       69.97       00.71            53
al                           labor        constructio


                                                                       15
                                                                Sino Great Wall Co., Ltd. The Semi-annual Report 2017


Engineerin              subcontracti n industries
g Co., Ltd.             ng;
                        engineering
                        survey and
                        design;
                        professional
                        contracting;
                        engineering
                        design for
                        the
                        construction
                        decoration;
                        building
                        curtain wall
                        design,
                        Engineering
                        and
                        technical
                        research and
                        experimenta
                        l
                        developmen
                        t.etc.

Subsidiaries obtained or disposed in the reporting period
□ Applicable √ Not applicable
Notes

VIII.Structured vehicle controlled by the Company
□ Applicable √ Not applicable

IX. Prediction of business performance for January -September 2017

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

□ Applicable √ Not applicable

X.Risks facing the Company and countermeasures

    (1)Influence of Macro Economy and Policy
       The construction industry and the health-care industry, in which the Company are engaging, are influenced
greatly by macro economy and policies. The uncertainty in international and domestic economic situation and the
changes of national policy will bring potential risks to the Company’s market development and operating
management.

                                                        16
                                                                Sino Great Wall Co., Ltd. The Semi-annual Report 2017


    Solutions: Pay constant attention to the international and domestic economic situation to make reasonable
prejudgement. Make timely adjustment for operating strategy and marketing policy and make pre-arranged
planning which copes with market changes to guarantee the smooth realization for business goals in 2017.
    (2)Risks Aggravated by the Market Competition
  With more competitions which domestic enterprises and international construction market take part in, the
Company’s overseas business operating will be impacted more or less.
    Solutions: Strengthen team construction and take first-mover advantage of the Company’s overseas business.
Draw lessons from the past, improve the capacity of management and control for the Company’s own projects to
constantly heighten the Company’s core competitiveness.
    (3)Management Risks Brought by Constant Business Scope Enlargement
       In views of the period where the Company is in speedy development, the Company has transferred from the
sub-contractor of professional decoration to the general contractor of building construction, and the speedy
development in overseas business puts forward higher demands to the Company’s organization operating and
project management.
    Solutions: Strengthen learning and training, constantly improve the quality of the on-the-job managers and
technicists, introduce high-level personnel and improve the overall management capacity and the technical
capacity of the Company to fully adapt to the pace of the Company’s speedy development




                                                      17
                                                                             Sino Great Wall Co., Ltd. The Semi-annual Report 2017




                                                 V. Important Events



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

1.Annual General Meeting


                                                 Investor                                                    Index to disclosed
      Meeting                    Type                            Convened date      Disclosure date
                                           participation ratio                                                  information

                                                                                                      2016 Annual General
                                                                                                      Meeting     (No.2017-042)
                                                                                                      published on Securities
2016 Annual General      Annual General                                                               Times,Hong Kong
                                                      39.58% May 19,2017            May 20,2017
      Meeting                Meeting                                                                  Commercial Daily and
                                                                                                      Juchao Website
                                                                                                      (http://www.cninfo.com.cn
                                                                                                      )on May 20,2017.


2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore

□ Applicable √Not applicable


II. Proposal for profit distribution and converting capital Reserve into share atial for the reporting period

□ Applicable √Not applicable
For the reporting period, the Company plans not to distribute cash dividends or bonus shares or convert capital
reserve into share capital.

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

√ Applicable □ Not applicable
                                                                                                   Time of
                                                                                                                Period of
                         Commitment                                                                making                   Fulfillme
     Commitment                           Type                        Contents                                 commitme
                            maker                                                                 commitme                      nt
                                                                                                                   nt
                                                                                                      nt

Commitment on share
                                 No       No                            No                                         No          No
reform




                                                                 18
                                                                                Sino Great Wall Co., Ltd. The Semi-annual Report 2017


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

                                                    Shares acquired by purchases of assets
                                                    through issuing shares: “I will not transfer the
                                                    new shares of Victor Onward Holdings
                                                    acquired through this restructuring, including
                                                    but not limited to the public transfer through
                                                    the stock market or by agreement, and I will
                                                    not entrust anybody else to manage my shares
                                                    of Victor Onward Holdings, within 36 months
                                                    from the date new shares list and before the
                                                    date I’ve carried out my obligations of
                                                    performance compensation under this
                                                    restructuring(subject to whatever is early,
                                                    hereinafter referred to as “lock-up periods”).
                                                    If the closing price of shares of Victor
                                                    Onward Holdings were lower than this issue
                                                    price for 20 continuous trading days in 6
                                                    months after the restructuring transaction has
                                                    been completed, or the final closing price
                                                    were lower than this issue price 6 months
                                                                                                                              Strict
Commitments in          Chen Lue, He                after the transaction has been completed, the       March
                                       Stock lock                                                                 36 months    performi
assets reorganization    Feiyan                     lock-up periods of my shares of Victor              19,2015
                                                                                                                               ng
                                                    Onward Holdings are automatically
                                                    prolonged for 6 months. (The
                                                    above-mentioned issue price will be
                                                    calculated according to the price after the
                                                    adjustment of ex-dividend, etc. if ex-dividend
                                                    behaviors of the company, including
                                                    distribution of dividends, giving bonus,
                                                    conversion of share capital, rationing shares,
                                                    and etc., were happened during the
                                                    above-mentioned periods. If the restructuring
                                                    transaction were March 19,2015 36 mont hs
                                                    Strict perfor ming Shenzhen Victor Onward
                                                    Textile Industrial Co., Ltd. The Third
                                                    Quarterly Report 2015. 14 investigated by
                                                    judicial authorities or China Securities
                                                    Regulatory Commission due to false record,
                                                    misleading statement or major omission of the
                                                    information provided or disclosed, I will not
                                                    transfer my shares of the company before the


                                                                   19
                                                     Sino Great Wall Co., Ltd. The Semi-annual Report 2017


                        conclusion of the case has been made clear.
                        After the above-mentioned lock-up periods, I
                        will sell or transfer the new shares of the
                        company acquired from this restructuring
                        following relevant regulations of China
                        Securities Regulatory commission and
                        Shenzhen Stock Exchange.

                        Shares acquired by matching funds raised: “I
                        will not transfer the new shares of Victor
                        Onward Holdings acquired through this
                        issuing by any way, including but not limited
                                                                                                Strict
                        to the public transfer through the stock market March
Chen Lue   Stock lock                                                               36 months    performi
                        or by agreement, within 36 months from the 19,2015
                                                                                                 ng
                        date new shares list. If regulation rules or
                        regulators have longer requirements for
                        lock-up periods, it should be executed
                        accordingly.

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

           Cash         In view of the fact that the houses rented by March                     Strict
Chen Lue                                                                            Long-term
           compensat Sino Great Wall and it’s son subsidiaries, 19,2015                         performi



                                       20
                                                   Sino Great Wall Co., Ltd. The Semi-annual Report 2017


           ion         subsidiaries, haven’t rental registration, I                          ng
                       promise, if Sino Great Wall and its son
                       subsidiaries, subsidiaries, were penalized by
                       real     estate   management    department     or
                       suffered other losses resulting from it, I agree
                       to compensate the loss of the company by
                       cash.

                       During the reporting period, the project which
                       Sino Great Wall is involved in is the
                       decoration engineering construction project of
                       Libo Grand Hotel (hereinafter referred to as
                       “Libo     project”)   which    the      company
                       contracted before the bidding process. Sino
                       Great Wall is not involved in any other
                       projects except for Libo project before
                       bidding process. As to the violating issues
           Cash                                                                              Strict
                       existed in the Libo project, I promise as March
Chen Lue   compensat                                                              Long-term performi
                       follows: if Sino Great Wall got penalized by 19,2015
           ion                                                                                ng
                       government administration departments or
                       suffered any economic loss resulted from it, I
                       will compensate the company by cash;
                       Meanwhile, I, within lawful authority, will
                       also promise to urge the company to
                       undertake related construction projects legally
                       so as to avoid violating issues happened
                       before implementation of bidding process,
                       i.e., at the time for construction again.

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



                                         21
                                                           Sino Great Wall Co., Ltd. The Semi-annual Report 2017


                       1. On condition that ownership defect exists
                       in     the     lease    of      house     property    of
                       parent-subsidiary companies of Sino Great
                       Wall and its subsidiary corporation, which
                       resulted in inability for parent-subsidiary
                       companies of Sino Great Wall and its
                       subsidiary corporation to continue leasing this
                       house property but having to relocate, or
                       parent-subsidiary companies of Sino Great
                       Wall and its subsidiary corporation can’t
                       timely find suitable workplace for lawful
                       operation in related area, I will undertake to
           Cash        compensate by cash for parent-subsidiary                                          Strict
                                                                                   March
Chen Lue   compensat companies of Sino Great Wall’s losses which                            Long-term performi
                                                                                   19,2015
           ion         are caused by operation and finance due to the                                     ng
                       above-mentioned matters. 2. I undertake to
                       unconditionally bear the relevant fines by
                       cash for parent-subsidiary companies of Sino
                       Great Wall on condition that the rental house
                       property of parent-subsidiary companies of
                       Sino Great Wall and its subsidiary corporation
                       is in absence of handling procedures for filing
                       house        leasing    ,which       resulted   in   that
                       parent-subsidiary companies of Sino Great
                       Wall and its subsidiary corporation are fined
                       by property administrative department. 3.The
                       commitment letter is irrevocable.

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

           Cash        “At present, Suzhou Lvbang has possessed March                                   Strict
Chen Lue                                                                                     Long-term
           compensat one state-own land use right, of which the 19,2015                                   performi



                                         22
                                                         Sino Great Wall Co., Ltd. The Semi-annual Report 2017


           ion        land certificate is Suzhou Guo Yong(2014)                                         ng
                      No.Y2014086”, locates in Danan Village,
                      Dadian Town, Yongqiao District, Suzhou City
                      with 32,966 square meters of area and the
                      purpose     for        industry.     Suzhou     Lvbang
                      possesses its own factory with 9,843.87
                      square meters of area above-mentioned,
                      which is the building reserved on the former
                      selling land. Suzhou Lvbang is carrying out
                      refurnishing and reconstruction for this
                      factory    and     has      acquired     “License      of
                      Construction           Land         Planning         ”with
                      No.2014-08-001 approved and issued by
                      Yongqiao District, Suzhou City’s housing and
                      rural construction bureau, of which other
                      examination and approval procedures of
                      construction are in the process of handling “I
                      undertake to actively supervise and urge
                      Suzhou Lvbang on handling procedures of the
                      approval    process         involved     with        factor
                      refurnishing and reconstruction, and which is
                      suffered from administrative punishment by
                      relevant competent authorities in reason of
                      claiming certificate of title, or in which any
                      dispute or controversy exist in construction
                      and    ownership,          which      shall     be     my
                      responsibility to carry out solution, and I
                      undertake to compensate by cash for Suzhou
                      Lvbang’s losses which are due to this matter,
                      guaranteeing no losses occur to Sino Great
                      Wall and Suzhou Lvbang for this matter.

                      “According to the “Agreement of Significant
                      Asset Replacement and Issue of Share to Buy
                      Asset”(hereinafter           referred         to       as
                      “Agreement”) signed among Victor Onward
                      Holdings, all shareholders of Sino Great Wall
           Cash       and Union Development Group Co., Ltd                                             Strict
                                                                                    March
Chen Lue   compensat (hereinafter referred to as“ Union Group”) on                          Long-term performi
                                                                                    19,2015
           ion        October 13, 2014, all the creditor’s rights and                                  ng
                      liabilities related to place-out asset before the
                      delivery date of Victor Onward Holdings shall
                      be Union Group’s responsibility to carry out
                      solution; After the asset delivery date, if any
                      losses occur to Victor Onward Holdings in


                                        23
                                                           Sino Great Wall Co., Ltd. The Semi-annual Report 2017


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

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

                           1. This reorganization is planned to place in
                           asset. At present, complete separation has
                           existed between me or other enterprises under
                           my possession (if any) and the listed company
              ndependen
                           in staff, asset, finance, institution and business                                    Strict
Chen Lue; He t                                                                              September
                           of Sino Great Wall. Independence exists in                                   Long-term performi
Feiyan,       competitio                                                                    30,2015
                           both staff, asset, finance, institution and                                            ng
              n
                           business and no confusion exists. 2. I
                           undertake, after this reorganization, to ensure
                           the continued complete separation between
                           me or other enterprises under my

                                              24
                            Sino Great Wall Co., Ltd. The Semi-annual Report 2017


possession(if any) and the listed company in
staff, asset, finance, institution and business,
sustaining the independence in the listed
company’s staff, asset, finance, institution and
business, as follows: (1).The Ensurance of
Independence for Listed Company’s
Personnel Ensure that the general manager,
the vice-general manger, the chief financial
officer, the board secretary and the senior
executives of the Company only accept salary
in listed company, including no holding of
any post except director and supervisor in my
enterprise or other enterprises under my
possession. 2.Ensure the complete
independence exists among the listed
company’s labor, personnel, and salary
management and me. 3. The director,
supervisor, general manager and other senior
executives recommended by me have all been
through the legal procedures, and I will not
intervene the company’s board and the
shareholder’s decision for appointing and
dismissing personnel by exercising official
power. (2)The Ensurance of the Asset
Independence of Listed Company 1.Ensure
that the listed company possesses business
system related to operation and the relevant
completely-independent asset. 2.Ensure that
no occupation of mine exists in capitals and
assets of the listed company. 3.The Ensurance
of the Financial Independence of Listed
Company 1.Ensure that the independent
finance department and the independent
financial calculating system set up by the
listed company, which possess normative and
independent financial and accounting rules. 2.
Ensure that the listed company independently
opens a bank account, not sharing the same
bank account with me. 3.Ensure that the
financial staff of the listed company holds no
part-time post in my enterprise and other
enterprises under my possession. 4. Ensure
that the listed company pays taxes according
to law. 5. Ensure that the listed company


               25
                                                      Sino Great Wall Co., Ltd. The Semi-annual Report 2017


                           makes the financial decision-making
                           independently, I will not intervene the
                           utilization of the listed company’s capital.
                           (4)The Ensurance of the Institutional
                           Independence of Listed Company 1.Ensure
                           that the listed company sets up perfect
                           governance structure for the share company’s
                           legal person, which possesses independent
                           and complete institutional framework
                           2.Ensure that the shareholder’s meeting, the
                           board of director, the independent director, the
                           supervisor and the general managers exercise
                           official powers according to laws, regulations
                           and articles of incorporation (5)The
                           Ensurance of the Business Independence of
                           Listed Company 1. Ensure that the listed
                           company possesses the asset, staff,
                           qualification and ability for independently
                           holding business activities, which possesses
                           the independent, autonomous and sustain
                           operation ability catering to the market. 2.
                           Ensure that I will not intervene the listed
                           company’s business activities except
                           exercising shareholder’s rights. 3.Ensure that
                           I or other enterprises under my possession
                           will avoid working on the listed company’s
                           main business which possesses substantial
                           competition. 4. Ensure to reduce the related
                           transaction between me and the listed
                           company or between other enterprises under
                           my possession and the listed company as
                           much as possible; When confirming necessary
                           but unavoidable related transaction, I will
                           ensure the fair operation according to the
                           principle of market culture and the fair price,
                           and fulfill the transaction procedures and the
                           obligation of disclosing information
                           according to relevant laws and regulations
                           and normative document. "

                           “Once I or our unit acquire the newly-added
                           share of Victor Onward Company through this                            Strict
Chen Lue; He Related                                                          March
                           transaction, no transfers will occur in any way              Lont-term performin
Feiyan;      transaction                                                      19,2015
                           within 12 months from the listing date,                                g
                           including but not limited to public transfer by


                                          26
                                                  Sino Great Wall Co., Ltd. The Semi-annual Report 2017


                        securities market or transfer by agreement,
                        and no entrusting for others to manage my
                        holding share of Victor Onward Holdings .
                        Once the above-mentioned lockup period
                        expires, I will implement the selling or
                        transferring of the newly-added share of
                        Victor Onward Holdings according to the
                        relevant provision of CSRC and SZSE.

                        During the assets reorganization, the house
                        property and land without property certificate
                        in the disposed assets within the plant area of
                        Kuixin Community of Kuichong Street of
                        Longgang     District    and    the   expected
                        compensations, as well as the expected
                        compensations concerning to the regaining of
                        plots planned as schools within the right of
                        land use of Nanyou Industrial Park of
                        Nanshan District have not been recorded in
                        the assessment. Therefore, Union Group
                        promises that after the reorganization, if
                        Union or a third party appointed by Union
                        receives compensations or incomes related
                        toabove-mentioned disposed assets which are
                        house property and land without property
Union                   certificate as well as regaining of plots
                                                                                            Strict
Development Income      planned as schools, Union will return the March
                                                                                 Long-term performin
Group Co.,   disposal   benefits to Victor Onward Holdings, in 10 19,2015
                                                                                            g
Ltd.                    working days since the collection. The actual
                        costs and fees during the possession of the
                        house property and land and the paid as well
                        as the unpaid but necessary costs and fees for
                        the reception of the above-mentioned benefits
                        for Union Group or its third party will be
                        deducted from the income. The specific
                        benefits and payable costs and fees should be
                        confirmed jointly by Union Group and Victor
                        Onward Holdings based on the actual
                        situations. ( Notes:On June 25, 2015,All
                        shareholders of Victor Onward Holdings,
                        Union Group and Sino Great Wall Signed
                        supplementary agreement, and specified that
                        the land and houses without ownership
                        certificate of Victor Onward Holdings located
                        at the factory area of Kuixin community of


                                      27
                                                         Sino Great Wall Co., Ltd. The Semi-annual Report 2017


                          Kuichong street office of Longgang district
                          (the land area is about 50,000 square meters,
                          the built-up area of houses is about 25,000
                          square meters, among them about 18,000
                          square meters of buildings at built-up area are
                          within the plan of removal and collection of
                          government , hereinafter              referred     as
                          “undocumented property) still belongs to
                          Victor Onward Holdings. And the benefits
                          and risks of the real estate without certificate
                          are enjoyed and assumed by Victor Onward
                          Holdings.”

                          According to the Term 5.5.3 of Agreement on
                          Major Asset Replacement and Asset Purchase
                          Through Issuing Shares (hereinafter referred
                          to as Agreement) signed on October 13, 2014
                          by the company and all shareholders of Victor
                          Onward Co. Ltd.. and Sino Great Wall, Victor
                          Onward Holdings should obtain the letter of
                          approval concerning the transferred debts of
                          the   disposed      assets    from     the    creditor
                          (including       the      guarantee,         similarly
                          hereinafter) before the date of assets delivery.
                          In the situation of debts on Victor Onward
                          Holdings due to the absence of creditor’s
                          consent, the company or the third party
Union                     appointed by the company is in charge of
              Cash                                                                                 Strict
Development               paying off debts or reaching agreement on the March
              compensat                                                                 Long-term performin
Group Co.,                solution with the creditor. When there are 19,2015
              ion                                                                                  g
Ltd                       losses caused by improper solutions of the
                          company or the third party appointed by the
                          company, the company or the third party
                          appointed     by    the      company     will     fully
                          compensate for the caused losses of Victor
                          Onward Holdings in 5 working days after
                          receiving the notice. According to the Term
                          5.5.4 of Agreement, after the date of assets
                          delivery, any compensations, obligations of
                          payment and penalties caused by disposed
                          assets as well as unsettled disputes in Victor
                          Onward Holdings will be undertaken and
                          solved by the company or the third party
                          appointed by the company, and Victor
                          Onward Holdings assumes no responsibility.


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                                                              Sino Great Wall Co., Ltd. The Semi-annual Report 2017


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

                               1.Guarantee that interest will be transferred to
                               other units or individuals which are with
                               compensation or without fair conditions,
All directors                                                                                              Strict
                               neither other ways which are harmful to the July
of the          Fill returns                                                                     Long-term performin
                               Company’s          interest            will          be 7,2016
company                                                                                                    g
                               adopted;2.Guarantee restraint conduction for
                               the duty consuming behavior of directors and
                               senior managers;3.Guarantee that no capital


                                              29
                                                                                   Sino Great Wall Co., Ltd. The Semi-annual Report 2017


                                                    of the Company will be employed for
                                                    engaging in investment or consumption which
                                                    are       not         involved        with       duty
                                                    performance;4.Guarantee               that         the
                                                    compensation system formulated by the board
                                                    of director or Compensation and Assessment
                                                    Committee is linked with the exertion
                                                    situation of the Company’s return filling
                                                    solution;5. Shall stock incentive mechanism
                                                    subsequently be introduced by the Company,
                                                    the exertion condition of the Company’s stock
                                                    incentive mechanism which is intended to be
                                                    published is guaranteed to be linked with the
                                                    exertion situation of the Company’s return
                                                    filling   solution;6.When         stock      incentive
                                                    mechanism is intended to be carried out
                                                    subsequently , I promise, within the legal
                                                    range, to prompt the exertion condition of the
                                                    Company’s stock incentive mechanism which
                                                    is intended to publish is guaranteed to be
                                                    linked with the exertion situation of the
                                                    Company’s return filling solution;7. I promise
                                                    the commitments above will be fulfilled
                                                    strictly, and guarantee actual fulfillment for
                                                    the Company’s return filling solution. Shall
                                                    any commitments be violated or be refused to
                                                    fulfill by me, I will fulfill corresponding
                                                    obligations of explanation and apology
                                                    according to relevant regulations of Guidance
                                                    on First Issue, Refinancing, Major Asset
                                                    Reorganization and Dilution for Return at
                                                    Sight by CSRC, and will approve the
                                                    supervision      measures        or   self-discipline
                                                    supervision measures made by CSRC, SZSE
                                                    and China Association for Public Companies.
                                                    Any losses occurred upon he Company or the
                                                    shareholders, I am willing to undertake the
                                                    responsibility           for          corresponding
                                                    compensation in accordance with laws.

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

Commitments make in
                          No                        No                                                                No        No
initial public offering

                                                                     30
                                                               Sino Great Wall Co., Ltd. The Semi-annual Report 2017


or re-financing

Equity incentive
                         No                No                                                 No         No
commitment

Other commitments
for medium and small No                    No                                                 No         No
shareholders

Completed on
                         Yes
time(Y/N)

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


IV. Particulars about engagement and disengagement of CPAs firm

Whether the semi-annual financial report had been audited?
□ Yes √ No
The semi-annual financial report has not been audited.

V.Explanations given by board of directors and supervisory board regarding “ Modified auditor’s” Issued
by CPAs firm for the reporting period

□ Applicable √ Not applicable

VI. Explanations given by Board of Directors regarding “ Modified auditor’s Report” Issuedfor last year

□ Applicable √ Not applicable

VII. Bankruptcy and restructuring

□ Applicable √ Not applicable
No such cases in the reporting period.


VIII. Legal lmatters

Signifieant lawsuits or arbitrations

□ Applicable √ Not applicable
No such cases in the reporing period.
Other legal matters

□ Applicable √ Not applicable




                                                         31
                                                                   Sino Great Wall Co., Ltd. The Semi-annual Report 2017


IX. Punishments and rectifications

□ Applicable √ Not applicable
No such cases in the reporing period.


X. Credit conditions of the Company as well as its Controlling shareholder and actual Controller

□ Applicable √ Not applicable

XI.Equity incentive plans, employee stock ownership plans or other incentive measures for employees

√ Applicable □Not applicable

The second meeting of the seventh board of directors, the second meeting of the seventh board of supervisors and
the 2015 third extraordinary general shareholder meeting were respectively convened by the company on Nov 5,
2015 and Nov 23, 2015, at which the Proposal on the First Phase of Employee Stock Ownership Plan (draft) of
Shenzhen Victor Onward Textile Industrial Co., Ltd was examined and approved.
Please refer to the published on November 7, 2015 and November 24, 2017, the securities times, the Hong Kong
Commercial Daily and cninfo (www.cninfo.com.cn) on the relevant announcement.

On December 24, 2015, the company as the asset trustor of the ESOP asset management plan, together with the
asset manager- Xingzheng Securities Asset Management Co.,Ltd and the asset trustee- China Everbright Bank
Co.,Ltd signed the contract of No.57 Xing Zheng Zi Guan Xin Zhong Assets Management Contract of the
Collection Assets Management Plan which concretely explained and stipulated the information included the basic
information of the collection plan, participating in and withdrawal of the collection plan, guarantee, classification
of the collection plan, the management methods and the management rights of the customer assets in the
collection plan, the establishment of the collection plan, the expenses of the collection plan, the proceeds and its
distribution of the collection plan, investment philosophy and investment strategy, investment decision-making
and risk control, restrictions and prohibited behaviors of investment, information disclosure of the collection plan,
transfer of the share of the collection plan, non-transaction transfer ownership and freezing and so on.
      Please refer to the published on December 29, 2015, the securities times, the Hong Kong Commercial Daily
and cninfo (www.cninfo.com.cn) on the relevant announcement.
As of January 7, 2016, the company’s first phase of the employee stock ownership plan has completed the
share-purchasing by means of buying in the secondary security market, of which the average position price is
RMB44.7578 per share, the total purchase quantity is 0.833187 million shares which account for 0.1864% of the
company's total share capital, and the total turnover is RMB37.29163 million. The lock-up period of the shares
purchased under the plan is 12 months commenced from the date of this announcement.
Please refer to the published on January 8, 2016, the securities times, the Hong Kong Commercial Daily and
cninfo (www.cninfo.com.cn) on the relevant announcement.

XII.Material related transactions

1. Related transactions in connection with daily operation

□ Applicable √ Not applicable


                                                         32
                                                                       Sino Great Wall Co., Ltd. The Semi-annual Report 2017


No such cases in the reporing period.


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

□Applicable √ Not applicable
No such cases in the reporing period.


3. Related-party transitions with joint investments

□Applicable √ Not applicable
No such cases in the reporing period.


4. Credits and liabilities with related parties

□Applicable √ Not applicable
No such cases in the reporing period.


5. Other significant related-party transactions

□Applicable √ Not applicable
No such cases in the reporing period.


XIII.Particulars about the non-operating occupation of funds by the Controlling shareholderand other
 related parties of the Company

□Applicable √ Not applicable
The company was not involved in the non-operating occupation of funds by the controlling shareholder and other
related parties during the reporting period.

XIV. Siginficant contracts and execution

1.Entrustments, contracting and leasing

(1)Entrustment

□Applicable √ Not applicable
No such cases in the reporing period.


(2)Contracting

□Applicable √ Not applicable
No such cases in the reporing period.




                                                         33
                                                                               Sino Great Wall Co., Ltd. The Semi-annual Report 2017


(3)Leasing

□Applicable √ Not applicable
No such cases in the reporing period.


2.Significant guarantees

√ Applicable □Not applicable


(1)Guarantees

                                                                                                                                  In RMB’0000

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

                  Relevant
                                                     Date of                                                                        Guarantee
                 disclosure                                                                                            Complete
 Name of                                            happening              Actual                                                        for
                 date/No. of     Amount of                                                                    Guarantee implemen
    the                                              (Date of             mount of           Guarantee type                         associated
                     the          Guarantee                                                                     term     tation
 Company                                             signing             guarantee                                                    parties
                 guaranteed                                                                                              or not
                                                   agreement)                                                                       (Yes or no)
                   amount
Total of external guarantee                                         Total of external guarantee
approved in the report term                                       0 actually occurred in the report                                             0
(A1)                                                                term (A2)
Total of external guarantee                                         Total of external guarantee
approved as of end of report                                      0 actually occurred as of end of                                              0
term (A3)                                                           report term (A4)
                                             Guarantee of the company for its subsidiaries
Guarantee   Amount of       Amount of   Actual date of
                                                                       Actual amount           Type of                 Complet Related
provided guarantee and date    the    occurring (signing                                                       Term
                                                                        of guarantee          guarantee                ed or not guarantee
   to      of disclosure    guarantee date of agreements
                                                                                          The joint
Sino Great
             March 31,2016              14,000 July 12,2016                    14,000 liability               1 year   No           No
Wall
                                                                                          guaranty

                                                                                          The joint
Sino Great
             March 31,2016              13,000 October 28,2016                 13,000 liability               1 year   No           No
Wall
                                                                                          guaranty

                                                                                          The joint
Sino Great
             March 31,2016               7,000 February 28,2017                     7,000 liability           1 year   No           No
Wall
                                                                                          guaranty

                                                                                          The joint
Sino Great
             March 31,2016              20,000 April 11,2017                   20,000 liability               1 year   No           No
Wall
                                                                                          guaranty

                                                                                          The joint
Sino Great
             March 31,2016              15,000 July 19,2016                    15,000 liability               1 year   No           No
Wall
                                                                                          guaranty



                                                                  34
                                                                Sino Great Wall Co., Ltd. The Semi-annual Report 2017


                                                                       The joint
Sino Great
              March 31,2016       5,000 August 8,2016            5,000 liability       1 year   No        No
Wall
                                                                       guaranty

                                                                       The joint
Sino Great
              March 31,2016      20,000 October 31,2016         20,000 liability       1 year   No        No
Wall
                                                                       guaranty

                                                                       The joint
Sino Great
              March 31,2016      25,000 December 20,2016        25,000 liability       1 year   No        No
Wall
                                                                       guaranty

                                                                       The joint
Sino Great
              March 31,2016      18,000 January 3,2017          18,000 liability       1 year   No        No
Wall
                                                                       guaranty

                                                                       The joint
Sino Great
              May 19,2017        12,000 June 7,2017             12,000 liability       1 year   No        No
Wall
                                                                       guaranty

                                                                       The joint
Sino Great
              December 27,2016    8,400 March 31,2017            8,400 liability       2.5 year No        No
Wall
                                                                       guaranty

                                                                       The joint
Sino Great
              December 27,2016   10,000 January 10,2017         10,000 liability       3 year   No        No
Wall
                                                                       guaranty

                                                                       The joint
Sino Great
              March 31,2016       9,700 February 21,2017         9,700 liability       0.5 year No        No
Wall
                                                                       guaranty

Sino                                                                   The joint
Internation                      30,000 December 21,2016        30,000 liability       1 year   No        No
al                                                                     guaranty

Sino                                                                   The joint
Internation                      25,714 August 25,2016          25,714 liability       1 year   No        No
al                                                                     guaranty

Sino                                                                   The joint
Internation                      25,000 January 13,2017         25,000 liability       1 year   No        No
al                                                                     guaranty

Sino                                                                   The joint
Internation                      20,000 January 13,2017         20,000 liability       1 year   No        No
al                                                                     guaranty

Sino                                                                   The joint
Internation                      20,000 June 21,2016            20,000 liability       1 year   No        No
al                                                                     guaranty

Sino                             10,000 August 22,2016          10,000 The joint       1 year   No        No



                                                           35
                                                                                Sino Great Wall Co., Ltd. The Semi-annual Report 2017


Internation                                                                             liability
al                                                                                      guaranty

Sino                                                                                    The joint
Internation                            50,000 November 22,2016                  50,000 liability          1 year    No        No
al                                                                                      guaranty

Sino                                                                                    The joint
Internation                            20,000 April 19,2016                     20,000 liability          2 year    No        No
al                                                                                      guaranty

Sino                                                                                    The joint
Internation                            30,000 May 10,2017                       30,000 liability          3 year    No        No
al                                                                                      guaranty

Sino                                                                                    The joint
Internation                            80,000 April 17,2017                     80,000 liability          1 year    No        No
al                                                                                      guaranty

Sino                                                                                    The joint
Internation                             5,000 May 27,2017                        5,000 liability          1 year    No        No
al                                                                                      guaranty

Sino                                                                                    The joint
Internation                            40,000 June 23,2017                      40,000 liability          1 year    No        No
al                                                                                      guaranty

Sino                                                                                    The joint
Internation                            10,000 June 28,2017                      10,000 liability          1 year    No        No
al                                                                                      guaranty

Total      of   guarantee     for                                     Total of actual guarantee
subsidiaries                                               900,000 for subsidiaries in the                                     227,100
approved in the Period (B1)                                           Period (B2)

Total      of   guarantee     for                                     Total of actual guarantee
subsidiaries                                               227,100 for subsidiaries at                                         227,100
approved at Period-end (B3)                                           Period-end (B4)

                                     Guarantee of the subsidiaries for the controlling subsidiaries

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

Total guarantee quota to the                                          Total amount of guarantee to the
                                                                  0                                                                      0
subsidiaries approved in the                                          subsidiaries actually incurred in


                                                                   36
                                                                                    Sino Great Wall Co., Ltd. The Semi-annual Report 2017


reporting period (C1)                                                     the reporting period (C2)

Total guarantee quota to the                                              Total balance of actual guarantee
subsidiaries approved at the end                                     0 to the subsidiaries at the end of                              0
of the reporting period (C3)                                              the reporting period (C4)

Total of Company’s guarantee(namely total of the large three aforementioned)

 Total of guarantee in the Period                                         Total of actual guarantee in
                                                               900,000                                                          227,100
(A1+B1+C1)                                                              the Period(A2+B2+C2)

                                                                             Total of actual guarantee at
Total of guarantee at Period-end
                                                               227,100                Period-end                                227,100
(A3+B3+C3)
                                                                          (A4+B4+C4)

The proportion of the total amount of actually guarantee in thenet
                                                                                                                               116.06%
assets of the Company(A4+B4+C4)

Including:

Amount of guarantee for shareholders, actual controller and its
                                                                                                                                      0
associated parties(D)

The debts guarantee amount provided for the
Guaranteed parties whose assets-liability ratio exceed                                                                                0
70% directly or indirectly(E)

Explanations    on      possibly    bearing     joint   and     several
                                                                          None
liquidatingresponsibilities for undue guarantees ( If any)

Explanations    on      external    guarantee     against     regulated
                                                                          None
procedures(If any)

Description of the guarantee with complex method

(2)Illegal providing of external guarantees

□ Applicable √Not applicable

No illegal providing of external guarantees in the report period.

3. Other significant contracts

□Applicable √ Not applicable
No such cases in the reporing period.

 XV.Social responsibilities

1.Overview of the annual targeted poverty alleviation




                                                                      37
                                                                   Sino Great Wall Co., Ltd. The Semi-annual Report 2017


(1)Half-year poverty relieving summary

(2)Information of the listed company’s annual work in targeted poverty alleviation


                                                                 Measurement
                                  Index                                                     Quantity / Status
                                                                 unit

I. General situation                                                    ——                      ——

II.Itemized investment                                                  ——                      ——

1.Industrial development for getting rid of poverty                     ——                      ——

  2.Transferred to employment to get rid of poverty                     ——                      ——

  3.Relocation to get rid of poverty                                    ——                      ——

  4.Education to get rid of poverty                                     ——                      ——

  5.Improving Health to get rid of poverty                              ——                      ——

  6.Ecological protection to poverty alleviation                        ——                      ——

  7.Bottom-line Safeguard                                               ——                      ——

  8.Social poverty alleviation                                          ——                      ——

  9.Other items                                                         ——                      ——

III.Awards (content, level)                                             ——                      ——


(3)Subsequent targeted poverty alleviation program

2. Information of performance of other social responsibilities

For details, please see the Social Responsibility Report disclosed by the company on the same day.
Listed company and its subsidiary belongs to the key pollution enterprise listed by Department of Environmental
Protection
No

XVI.Other material events

√ Applicable □Not applicable

      On July 7, 2016, At the 10th board meeting of the 7th session board of directors held by the company, the
Proposal about Sino Great Wall Co.,Ltd's Non-public Issuance of A Share was examined and approved, planning
to issue shares to Sino Great Wall (Beijing) Investment Co., Ltd, Beijing An'ben Helath-care Investment Holdings
Co.,Ltd and Mr. Zheng Jihua with the raising money of RMB 2.5 billion. On October 14, 2016, CSRC accepted
the company's application of Non-public Issuance of Shares.
     On February 16,2017, At the 16th board meeting of the 7th session board of directors held by the company,
the Proposal about Adjusting the Non-public Share Issuance Plan of the Company was examined and approved,
with the total amount of raising money adjusted to be RMB 900 million.
     On March 22,2017, The company's application of non-public A-share issuance had been examined and


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                                                                Sino Great Wall Co., Ltd. The Semi-annual Report 2017


approved by the Issuance Examination Commission of CSRC. On July 21, 2017, the company received the
Approval for Sino Great Wall Co.,Ltd's Non-public Share Issuance by CSRC (No. 1145-2017 CSRC Permission).
The company's board of directors will, in accordance with the relevant laws and regulations, the requirement of
the above-said approval document and the authorization of the company's shareholders' general meeting, handle
the relevant matters of this non-public share issuance within the stipulated term and fulfill the obligation of
information disclosure in a timely manner.

XVII. Material events of subsidiaries

□ Applicable √ Not applicable




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                                                                                Sino Great Wall Co., Ltd. The Semi-annual Report 2017


                 VI. Change of share capital and shareholding of Principal Shareholders

I.Changes in share capital
1. Changes in share capital


                                                                                                                                   In shares

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

                       Amount        Proportion                        Capitalization
                                                   Share      Bonus                                                              Proportio
                                                                        of common       Other       Subtotal       Quantity
                                                  allotment   shares                                                                n
                                                                        reserve fund

I. Share with
conditional           681,035,811      40.10%                                           -360,375    -360,375       680,675,436     40.08%
subscription

3.Other
                      681,035,811      40.10%                                           -360,375    -360,375       680,675,436     40.08%
domestic shares

Of which:
Domestic legal         42,479,672        2.50%                                                  0              0    42,479,672      2.50%
person shares

Domestic
natural person        638,556,139      37.60%                                           -360,375    -360,375       638,195,764     37.58%
shares

II. Shares with
unconditional        1,017,209,200     59.90%                                           360,375      360,375 1,017,569,575         59.92%
subscription

1.Common
                      753,405,969      44.36%                                           360,375      360,375       753,766,344     44.39%
shares in RMB


.Foreign shares

in        domestic    263,803,231      15.53%                                                   0              0   263,803,231     15.53%

market

III. Total of
                     1,698,245,011    100.00%                                                   0              0 1,698,245,011 100.00%
capital shares

Reasons for share changed:
□ Applicable √ Not applicable
Approval of Change of Shares
□ Applicable √ Not applicable
Ownership transfer of share changes
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to

                                                                   40
                                                                                      Sino Great Wall Co., Ltd. The Semi-annual Report 2017


common shareholders of Company in latest year and period
□ Applicable √ Not applicable
Other information necessary to disclose for the company or need to disclosed under requirement from security
regulators
□ Applicable √ Not applicable

2. Change of shares with limited sales condition

□ Applicable √ Not applicable


II.Issuing and listing

□ Applicable √ Not applicable

III. Shareholders and shareholding

                                                                                                                                      In Shares

                                                                      Total number of preferred
Total number of common
                                                                      shareholders that had restored the
shareholders at the end of the                               60,193                                                                          0
                                                                      voting right at the end of the
reporting period
                                                                      reporting period (if any) (note 8)

                                      Shareholding of shareholders holding more than 5% shares

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

                     Domestic Natural
Chen Lue                                   34.36% 583,454,556          +510,000 581,722,696               1,731,860 Mortgage       455,260,594
                     person

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

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

                     Domestic Natural
He Feiyan                                    3.23%    54,800,458                  0    54,800,458
                     person

Jiutai Fund -
Bank           of
Communication Other                          2.50%    42,479,672                  0    42,479,672
s     -    Jiutai
Huitong      No.2



                                                                      41
                                                                                 Sino Great Wall Co., Ltd. The Semi-annual Report 2017


specific
customer asset
management
plan

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

Bank of China
-Fortis Income
Growth
                  Other                    1.12%    18,961,320      +761,000               0     18,961,320
Securities
Investment
Fund

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

Qianhai life
 insuranceCo.,
                  Other                    1.04%    17,725,200 +17,725,200                 0     17,725,200
 ltd-Haley
 year

Qinghai Heyi      Domestic Non-
Industry          legal person
                                           0.79%    13,356,984               0             0     13,356,984
Development       State-owned legal
Co., Ltd.         person

Strategy investors or general legal
person becomes top 10 shareholders
                                      None
due to rights issued (if
applicable)See Notes 3)

                                      Chen Lue and He Feiyan are consortium officers; Union Development Group Ltd. is the
Explanation on associated
                                      controlling shareholder of the above-mentioned shareholder Shenzhen Union Holdings Ltd.
relationship or concerted action of
                                      and third shareholder Rich Crown Investment Co., Ltd. The other tradable shareholders
the above shareholders
                                      neither knew whether there exists associated relationship between them.

                                      Shareholding of top 10 shareholders of unrestricted shares

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

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

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

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



                                                                  42
                                                                             Sino Great Wall Co., Ltd. The Semi-annual Report 2017


                                                                                              in domestic exchange

Bank of China-Fortis Income
                                                                                 18,961,320 RMB Common shares         18,961,320
Growth Securities Investment Fund

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

Qianhai life insuranceCo., ltd-
                                                                                 17,725,200 RMB Common shares         17,725,200
 Haley year

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

China International finance Co.,
                                                                                 12,109,500 RMB Common shares         12,109,500
Ltd.

Huatai Securities Co., Ltd.                                                       11,127,400 RMB Common shares        11,127,400

Huang Huaian                                                                      10,115,000 RMB Common shares        10,115,000

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

Notes to the shareholders involved
in financing securities (if any)(See   None
Notes 4)

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

IV. Change of the controlling shareholder or the actual controller

Change of the controlling shareholder in the reporting period
□ Applicable √ Not Applicable
There was no any change of the controlling shareholder of the Company in the reporting period.
Change of the actual controller in the reporting period
□ Applicable √ Not applicable
There was no any change of the actual controller of the Company in the reporting period.




                                                                 43
                                                              Sino Great Wall Co., Ltd. The Semi-annual Report 2017



                                 VII. Situation of the Preferred Shares


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




                                                      44
                                                                                       Sino Great Wall Co., Ltd. The Semi-annual Report 2017



                   VIII. Information about Directors, Supervisors and Senior Executives

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

√ Applicable □Not applicable

                                                                       Amount
                                                        Amount of        of                       Number of
                                                                                                                    Number of
                                                          shares       shares                     restricted                           Number of
                                       Shares held at                               Shares held                     restricted
                                                        increased decrease                          stock                            restricted stock
                            Office     the                                            at the                       stock granted
    Name     Position                                     at the       d at the                   granted at                          granted at the
                            status     year-begin(sh                                year-ending                       at the
                                                        reporting reportin                           the                             year-ending(shar
                                       are)                                         (share)                        reporting
                                                        period(sha        g                       year-begin                                e)
                                                                                                                   period(share)
                                                           re)         period(s                     . share)
                                                                        hare)

           Chairman,
Chen
           General        In office     582,944,556       510,000               0 583,454,556
Lue
           Manager

           Vice
           chairman,
Li
           Duputy          In office          11,400               0            0        11,400                0                 0                     0
Erlong
           General
           Manager

Yang       Secretary to
Chunlin the board of In office                     0       35,500               0        35,500                0                 0                     0
g          directors

Total             --           --       582,955,956       545,500               0 583,501,456                  0                 0                     0


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

□ Applicable √ Not applicable




                                                                        45
                                                                Sino Great Wall Co., Ltd. The Semi-annual Report 2017


                                           IX. Corporate Bond
Whether the company has corporate bonds that have been publicly issued and listed on the stock exchange, and
 not yet due or due butnot folly cashed on the approval date of annual report
No




                                                      46
                                                                     Sino Great Wall Co., Ltd. The Semi-annual Report 2017




                                             X. Financial Report


I. Audit report

Has this semi-annual report been audited?
□ Yes √ No
The semi-annual financial report has not been audited.

II. Financial statements

Currency unit for the statements in the notes to these financial statements:RMB

1.Consolidated Balance sheet

Prepared by : Sino Great Wall Co., Ltd.
                                                 August 10,2017
                                                                                                                 In RMB

                   Items                       Year-end balance                         Year-beginning balance

             Current asset:

             Monetary fund                                    1,720,256,083.77                          1,340,815,821.83

         Settlement provision

Outgoing call loan

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

    Derivative financial assets

 Bill receivable                                               781,067,587.68                           1,074,390,642.58

 Account receivable                                           4,828,966,377.80                          3,725,170,208.31

  Prepayments                                                  187,002,578.78                             319,206,798.63

 Insurance receivable

Reinsurance receivable

Provisions of Reinsurance contracts
receivable

  Interest receivable

  Dividend receivable

 Other account receivable                                      923,145,857.89                             651,012,132.91




                                                         47
                                                     Sino Great Wall Co., Ltd. The Semi-annual Report 2017


 Repurchasing of financial assets

 Inventories                                   301,728,576.28                             332,904,930.36

  Assets held for sales

  Non-current asset due in 1 year                 7,961,594.15                             13,462,942.89

  Other current asset                           11,484,244.83                              35,450,194.47

Total of current assets                       8,761,612,901.18                          7,492,413,671.98

Non-current assets:

  Loans and payment on other’s behalf
disbursed

  Disposable financial asset

  Expired investment in possess

 Long-term receivable

 Long term share equity investment

 Property investment

  Fixed assets                                 127,345,176.80                             128,483,747.74

  Construction in progress                        3,788,297.42

Engineering material

  Fixed asset disposal

  Production physical assets

 Gas & petrol

 Intangible assets                             104,308,769.67                             106,203,443.55

 R & D petrol

 Goodwill                                       58,874,144.79                              58,874,144.79

Long-germ expenses to be amortized                5,117,815.00                              7,003,035.93

Differed income tax asset                       90,480,456.69                              76,298,659.34

 Other non-current asset                       365,192,873.00                             116,902,258.30

Total of non-current assets                    755,107,533.37                             493,765,289.65

Total of assets                               9,516,720,434.55                          7,986,178,961.63

Current liabilities

  Short-term loans                            2,750,186,595.11                          1,966,058,357.59

 Loan from Central Bank

 Deposit received and hold for others

 Call loan received

Financial liabilities measured at fair
value with variations accounted into


                                         48
                                                           Sino Great Wall Co., Ltd. The Semi-annual Report 2017


current income account

     Derivative financial liabilities

  Bill payable                                       606,158,083.17                             706,883,375.54

  Account payable                                   1,505,466,836.91                          1,313,948,990.25

 Advance payment                                     533,399,418.80                             573,784,072.58

 Selling of repurchased financial assets

Fees and commissions receivable

 Employees’ wage payable                             18,517,014.15                              18,797,546.69

 Tax payable                                         316,908,006.38                             313,483,669.78

 Interest payable                                       5,544,518.54                              6,428,493.55

 Dividend payable                                    101,894,700.66

  Other account payable                              265,482,611.11                             222,414,975.01

 Reinsurance fee payable

 Insurance contract provision

 Entrusted trading of securities

Entrusted selling of securities

  Liabilities held for sales

Non-current liability due in 1 year                  814,408,879.06                             175,958,998.04

Other current liability                                                                          30,382,980.72

Total of current liability                          6,917,966,663.89                          5,328,141,459.75

Non-current liabilities:

  Long-term loan                                     444,341,594.32                             786,858,878.82

 Bond payable                                        100,000,000.00

  Including:preferred stock

             Sustainable debt

  Long-term payable

    Long=term        payable    employees’s
remuneration

 Special payable

 Expected liabilities                                   4,878,343.68                             13,225,861.70

     Differed income

  Differed income tax liability                       26,513,069.28                              27,469,888.77

Other non-current liabilities

Total non-current liabilities                        575,733,007.28                             827,554,629.29

Total of liability                                  7,493,699,671.17                          6,155,696,089.04


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                                                                 Sino Great Wall Co., Ltd. The Semi-annual Report 2017


Owners’ equity

  Share capital                                          1,698,245,011.00                           1,698,245,011.00

     Other equity instruments

  Including:preferred stock

             Sustainable debt

 Capital reserves                                        -1,303,571,952.69                         -1,299,349,701.74

  Less:Shares in stock

        Other comprehensive income

Special reserves                                            81,827,887.68                              65,687,868.14

  Surplus reserves                                          84,394,441.23                              84,394,441.23

 Common risk provision

Undistributed profit                                     1,395,682,248.23                           1,228,970,498.86

Total of owner’s equity belong to the
                                                         1,956,577,635.45                           1,777,948,117.49
parent company

Minority shareholders’ equity                              66,443,127.93                              52,534,755.10

Total of owners’ equity                                 2,023,020,763.38                           1,830,482,872.59

Total of liabilities and owners’ equity                 9,516,720,434.55                           7,986,178,961.63


Legal Representative: Chen Lue

Person in charge of accounting:Tang Xianyong

Accounting Dept Leader:Tang Xianyong

2. Balance sheet of Parent Company

                                                                                                              In RMB

                    Items                  Year-end balance                         Year-beginning balance

             Current asset:

             Monetary fund                                 421,061,159.27                             168,691,344.34

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

       Derivative financial assets

             Bill receivable

           Account receivable                                                                                6,346.00

              Prepayments                                     2,264,166.67                              1,000,000.00



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                                                     Sino Great Wall Co., Ltd. The Semi-annual Report 2017


         Interest receivable

        Dividend receivable

     Other account receivable                 2,418,962,011.73                          1,672,200,041.98

             Inventories

        Assets held for sales

  Non-current asset due in 1 year

         Other current asset                      1,576,001.07                              1,404,744.25

       Total of current assets                2,843,863,338.74                          1,843,302,476.57

       Non-current assets:

     Disposable financial asset

   Expired investment in possess

       Long-term receivable

 Long term share equity investment            3,181,451,536.66                          3,176,451,536.66

        Property investment

            Fixed assets                            65,573.03                                   4,121.50

      Construction in progress

       Engineering material

        Fixed asset disposal

     Production physical assets

            Gas & petrol

          Intangible assets

            R & D petrol

              Goodwill

Long-germ expenses to be amortized

     Deferred income tax asset                     252,427.22                                 336,569.60

      Other non-current asset                  184,035,100.00                              48,960,000.00

    Total of non-current assets               3,365,804,636.91                          3,225,752,227.76

           Total of assets                    6,209,667,975.65                          5,069,054,704.33

         Current liabilities
          Short-term loans                    1,671,230,000.00                            980,000,000.00

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

   Derivative financial liabilities

            Bill payable                       111,236,631.80                              68,000,000.00


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                                                  Sino Great Wall Co., Ltd. The Semi-annual Report 2017


        Account payable

        Advance payment

    Employees’ wage payable                    571,016.83                                 701,792.11

           Tax payable                       97,131,554.92                              97,085,106.00

         Interest payable                      4,146,356.25                              5,150,639.24

        Dividend payable                    101,894,700.66

      Other account payable                  68,510,268.86                              13,252,762.06

     Liabilities held for sales

Non-current liability due in 1 year         600,000,000.00

      Other current liability

     Total of current liability            2,654,720,529.32                          1,164,190,299.41

    Non-current liabilities:

         Long-term loan                     400,000,000.00                             700,000,000.00

          Bond payable                      100,000,000.00

   Including:preferred stock

         Sustainable debt

       Long-term payable

    Employees’ wage payable

         Special payable

       Expected liabilities

        Deferred income

  Deferred income tax liability
   Other non-current liabilities

 Total of Non-current liabilities           500,000,000.00                             700,000,000.00

         Total of liability                3,154,720,529.32                          1,864,190,299.41

         Owners’ equity

          Share capital                    1,698,245,011.00                          1,698,245,011.00

     Other equity instrument

   Including:preferred stock

         Sustainable debt

         Capital reserves                  1,237,956,472.37                          1,237,956,472.37

      Less:Shares in stock

  Other comprehensive income

         Special reserves



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                                                                Sino Great Wall Co., Ltd. The Semi-annual Report 2017


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

          Undistributed profit                              92,436,675.96                            242,353,634.55

        Total of owners’ equity                        3,054,947,446.33                           3,204,864,404.92

 Total of liabilities and owners’ equity               6,209,667,975.65                           5,069,054,704.33


3.Consolidated Income Statement

                                                                                                             In RMB

                  Items                     Report period                      Same period of the previous year

    I. Income from the key business                     3,025,082,356.80                           1,953,574,755.51

         Incl:Business income                          3,025,082,356.80                           1,953,574,755.51

             Interest income

          Insurance fee earned

     Fee and commission received

          II. Total business cost                       2,693,735,290.45                           1,740,558,572.84

           Incl:Business cost                          2,319,598,615.76                           1,460,727,131.33

             Interest expense

        Fee and commission paid

      Insurance discharge payment

         Net claim amount paid

     Insurance policy dividend paid

     Insurance policy dividend paid

          Reinsurance expenses

       Business tax and surcharge                            1,942,587.29                               9,026,652.11

              Sales expense                                 18,094,586.39                              9,259,264.24

         Administrative expense                           125,176,758.15                             112,993,754.29

           Financial expenses                             139,811,809.59                              70,024,674.60

         Asset impairment loss                              89,110,933.27                             78,527,096.27

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

    Investment gain(“-”for loss)                                                                      46,868.49

  Incl: investment gains from affiliates

 Gains from currency exchange(“-”for
                  loss)

       Other income




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                                                        Sino Great Wall Co., Ltd. The Semi-annual Report 2017


  III. Operational profit(“-”for loss)         331,347,066.35                           213,063,051.16

    Add :Non-operational income                     4,444,624.78                             29,133,269.00

  Including:Income from disposal of
              non-current assets

      Less:Non business expenses                       93,122.33                              2,755,912.00

Incl:Loss from disposal of non-current
                    assets

         IV.Total profit(“-”for loss)            335,698,568.80                           239,440,408.16

         Less:Income tax expenses                  56,227,138.25                             37,862,759.83

                 V. Net profit                     279,471,430.55                           201,577,648.33

 Net profit attributable to the owners of
                                                   268,606,450.03                           202,299,416.64
               parent company

      Minority shareholders’ equity                10,864,980.52                               -721,768.31

    VI. Other comprehensive income                                                                  -132.50

Net of profit of other comprehensive inco
me attributable to owners of the parent co                                                          -132.50
                    mpany.

(I)Other comprehensive income items
     that will not be reclassified into
      gains/losses in the subsequent
            accounting period
1.Re-measurement of defined benefit pla
  ns of changes in net debt or net assets

2.Other comprehensive income under the
equity method investee can not be reclass
           ified into profit or loss.

(II)
Other comprehensive income that will b                                                              -132.50
   e reclassified into profit or loss.
1.Other comprehensive income under the
equity method investee can be reclassifie
             d into profit or loss.

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

3.Held-to-maturity investments reclassifi
ed to gains and losses of available for sal
               e financial assets

4.The effective portion of cash flow hedg
                 es and losses

5.Translation differences in currency fina                                                          -132.50


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                                                                     Sino Great Wall Co., Ltd. The Semi-annual Report 2017


              ncial statements

                   6.Other
7.Net of profit of other comprehensive i
    ncome attributable to Minority
          shareholders’ equity
    VII. Total comprehensive income                          279,471,430.55                               201,577,515.83

Total comprehensive income attributable
                                                             268,606,450.03                               202,299,284.14
   to the owner of the parent company

Total comprehensive income attributable
                                                              10,864,980.52                                  -721,768.31
           minority shareholders

          VIII. Earnings per share

        (I)Basic earnings per share                                     0.16                                         0.12

        (II)Diluted earnings per share                                    0.16                                         0.12

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

Legal Representative: Chen Lue

Person in charge of accounting:Tang Xianyong

Accounting Dept Leader:Tang Xianyong

4. Income statement of the Parent Company

                                                                                                                    In RMB

Items                                       Amount in this period                        Amount in last period

    I. Income from the key business                                 111,018.01                                   115,940.34

            Incl:Business cost                                       1,482.50                                         0.00

        Business tax and surcharge                                  244,690.66

               Sales expense

          Administrative expense                              10,577,092.07                                13,785,695.93

            Financial expenses                                37,367,434.56                                19,950,608.66

           Asset impairment loss                                    -57,423.85                                    -1,530.70

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

    Investment gain(“-”for loss)

 Incl: investment gains from affiliates

         Other income

  II. Operational profit(“-”for loss)                    -48,022,257.93                               -33,618,833.55


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                                                       Sino Great Wall Co., Ltd. The Semi-annual Report 2017


    Add :Non-operational income                                                             29,071,295.00

 Including:Income from disposal of
           non-current assets

     Less:Non business expenses                                                              2,755,912.00

Incl:Loss from disposal of non-current
                  assets

      III.Total profit(“-”for loss)             -48,022,257.93                             -7,303,450.55

      Less:Income tax expenses

   IV. Net profit(“-”for net loss)            -48,022,257.93                             -7,303,450.55

V.Net of profit of other comprehensive i
                 ncome

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

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

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

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

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

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

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

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


5.Translation differences in currency fin
            ancial statements

                 6.Other

   VI. Total comprehensive income                 -48,022,257.93                             -7,303,450.55

       VII. Earnings per share:


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                                                                   Sino Great Wall Co., Ltd. The Semi-annual Report 2017


     (I)Basic earnings per share

     (II)Diluted earnings per share


5. Consolidated Cash flow statement

                                                                                                                In RMB

                  Items                    Amount in this period                       Amount in last period

 I.Cash flows from operating activities

 Cash received from sales of goods or
                                                            1,722,890,541.67                            805,577,789.73
            rending of services

     Net increase of customer deposits
and capital kept for brother company

Net increase of loans from central bank

Net increase of inter-bank loans from
other financial bodies

Cash received against original insurance
contract

Net cash received from reinsurance
business

Net increase of client deposit and
investment

  Net increase of amount from disposal
financial assets that measured by fair
value and with variation reckoned into
current gains/losses

  Net increase of inter-bank fund
received

  Net increase of trade financial asset
disposal

  Net increase of repurchasing business

Tax returned                                                  10,169,861.98                                    3,004.17

Other cash received from business
                                                            2,967,473,297.47                            339,397,760.63
operation

   Sub-total of cash inflow                                 4,700,533,701.12                          1,144,978,554.53

Cash paid for purchasing of
                                                            1,452,656,023.95                          1,158,556,976.75
merchandise and services

Net increase of client trade and advance

Net increase of savings n central bank


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and brother company

Cash paid for original contract claim

 Cash paid for interest, processing fee
and commission

 Cash paid for policy dividend

Cash paid to staffs or paid for staffs             181,877,746.19                             101,231,096.05

 Taxes paid                                        157,274,185.63                              86,805,215.28

Other cash paid for business activities           3,444,723,325.54                          1,055,001,225.65

Sub-total of cash outflow from business
                                                  5,236,531,281.31                          2,401,594,513.73
  activities

Cash flow generated by business
                                                  -535,997,580.19                          -1,256,615,959.20
operation, net

II.Cash flow generated by investing

Cash received from investment
                                                                                               12,800,000.00
retrieving

Cash received as investment gains                                                                 146,912.79

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

Net cash received from disposal of
subsidiaries or other operational units

Other investment-related cash received

Sub-total of cash inflow due to
                                                                                               12,946,912.79
investment activities

Cash paid for construction of
fixed assets, intangible assets                     18,675,205.60                              16,234,590.65
and other long-term assets

Cash paid as investment                            246,074,074.84

Net increase of loan against pledge

Net cash received from subsidiaries and
                                                       470,000.00                              97,000,000.00
other operational units

Other cash paid for investment
activities

Sub-total of cash outflow    due to
                                                   265,219,280.44                             113,234,590.65
investment activities

Net cash flow generated by investment             -265,219,280.44                            -100,287,677.86

III.Cash flow generated by financing



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                                                                    Sino Great Wall Co., Ltd. The Semi-annual Report 2017


Cash received as investment                                              0.00

Incl: Cash received as investment from
minor shareholders

Cash received as loans                                      2,753,197,500.00                           2,195,182,638.00

Cash received from bond placing

Other financing –related ash received                                                                   103,516,162.13

Sub-total of cash inflow from financing
                                                            2,753,197,500.00                           2,298,698,800.13
activities

Cash to repay debts                                         1,349,438,184.19                             317,642,499.29

Cash paid as dividend, profit, or
                                                              95,084,766.20                               36,392,124.49
interests

Incl: Dividend and profit paid by
subsidiaries to minor shareholders

Other cash paid for financing activities                            60,833.33                            561,003,771.39

Sub-total of cash outflow due to
                                                            1,444,583,783.72                             915,038,395.17
financing activities

Net cash flow generated by financing                        1,308,613,716.28                           1,383,660,404.96

IV. Influence of exchange rate
                                                               -4,628,437.71                               1,620,952.17
alternation on cash and cash equivalents

V.Net increase of cash and cash
                                                             502,768,417.94                               28,377,720.07
equivalents

Add: balance of cash and cash
                                                             943,705,322.41                              582,743,756.81
equivalents at the beginning of term

VI ..Balance of cash and cash
                                                            1,446,473,740.35                             611,121,476.88
equivalents at the end of term


6. Cash flow statement of the Parent Company

                                                                                                                   In RMB

                   Items                   Amount in this period                        Amount in last period

 I.Cash flows from operating activities

 Cash received from sales of goods or
                                                                   128,210.00                                   139,273.00
             rending of services

                Tax returned

   Other cash received from business
                                                            2,072,983,202.47                             578,645,723.03
                 operation

         Sub-total of cash inflow                           2,073,111,412.47                             578,784,996.03

      Cash paid for purchasing of


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                                                            Sino Great Wall Co., Ltd. The Semi-annual Report 2017


        merchandise and services

  Cash paid to staffs or paid for staffs                  219,753.50                                 132,268.03

                 Taxes paid                               147,356.70                               1,313,588.98

 Other cash paid for business activities             2,697,856,678.81                          1,893,003,110.13

Sub-total of cash outflow from business
                                                     2,698,223,789.01                          1,894,448,967.14
                   activities

Cash     flow    generated      by   business
                                                      -625,112,376.54                         -1,315,663,971.11
operation, net

  II.Cash flow generated by investing

    Cash received from investment
                 retrieving

   Cash received as investment gains

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

  Net cash received from disposal of
 subsidiaries or other operational units

Other investment-related cash received

    Sub-total of cash inflow due to
           investment activities

       Cash paid for construction of
       fixed assets, intangible assets                     65,440.00
        and other long-term assets

         Cash paid as investment                      135,075,100.00

Net cash received from subsidiaries and
                                                         5,000,000.00                             97,000,000.00
          other operational units

    Other cash paid for investment
                 activities

   Sub-total of cash outflow due to
                                                      140,140,540.00                              97,000,000.00
           investment activities

Net cash flow generated by investment                -140,140,540.00                             -97,000,000.00

 III.Cash flow generated by financing

       Cash received as investment

          Cash received as loans                     1,908,030,000.00                          1,455,000,000.00

     Cash received from bond placing

 Other financing –related ash received

Sub-total of cash inflow from financing              1,908,030,000.00                          1,455,000,000.00


                                                60
                                                       Sino Great Wall Co., Ltd. The Semi-annual Report 2017


               activities

          Cash to repay debts                    820,000,000.00

    Cash paid as dividend, profit, or
                                                  70,346,435.20                              17,063,887.14
                interests

Other cash paid for financing activities              60,833.33

    Sub-total of cash outflow due to
                                                 890,407,268.53                              17,063,887.14
          financing activities

 Net cash flow generated by financing           1,017,622,731.47                          1,437,936,112.86

     IV. Influence of exchange rate
                                                            0.00
alternation on cash and cash equivalents

    V.Net increase of cash and cash
                                                 252,369,814.93                              25,272,141.75
              equivalents

    Add: balance of cash and cash
                                                 168,691,344.34                             239,145,251.31
  equivalents at the beginning of term

     VI ..Balance of cash and cash
                                                 421,061,159.27                             264,417,393.06
     equivalents at the end of term




                                           61
                                                                                                                                                       Sino Great Wall Co., Ltd. The Semi-annual Report 2017
   7. Consolidated Statement on Change in Owners’ Equity

   Amount in this period
                                                                                                                                                                                                       In RMb

                                                                                                         Amount in this period

                                                                      Owner’s equity Attributable to the Parent Company

                                                Other Equity
                                                                                         Less Other
                                                 instrusment
                                                                                           :     Compr                                      Comm                               Minor
            Items                                                                                                                                                                            Total of owners’
                                                                                         Shar ehensi     Specialized                        on risk                         shareholders’
                                               prefe                                                                                                                                              equity
                             Share Capital             Sust          Capital reserves                                    Surplus reserves             Attributable profit
                                               rred                                      es in    ve       reserve                          provisi                            equity
                                                              Othe
                                                       aina
                                               stoc            r                         stoc Incom                                           on
                                                       ble
                                                k                                         k        e
                                                       debt

I.Balance at the end of
                            1,698,245,011.00                         -1,299,349,701.74                   65,687,868.14     84,394,441.23               1,228,970,498.86     52,534,755.10     1,830,482,872.59
last year

Add:        Change     of
       accounting policy

Correcting of previous
errors

Merger of entities
under common control

         Other

II.Balance at the
beginning of current        1,698,245,011.00                         -1,299,349,701.74                   65,687,868.14     84,394,441.23               1,228,970,498.86     52,534,755.10     1,830,482,872.59
year

III.Changed in the
                                                                         -4,222,250.95                   16,140,019.54                                   166,711,749.37     13,908,372.83       192,537,890.79
current year

                                                                                                         62
                                                  Sino Great Wall Co., Ltd. The Semi-annual Report 2017

(1)Total
comprehensive                                      268,606,450.03    10,864,980.52      279,471,430.55
income

(II)Investment or
decreasing of capital        -4,222,250.95                            3,043,392.31        -1,178,858.64
by owners

1.Ordinary Shares in
vested by hareholders

2 . Holders of other e
quity instruments inve
sted capital

3.Amount of shares
paid and accounted as
owners’ equity

4.Other                     -4,222,250.95                            3,043,392.31        -1,178,858.64

(III)Profit allotment                            -101,894,700.66                      -101,894,700.66

1.Providing of surplus
reserves

 2.Providing            of
common             risk
provisions

3.Allotment to the
owners (or                                         -101,894,700.66                      -101,894,700.66
shareholders)

     4.Other

(IV) Internal
transferring of

                                             63
                                                                                                                                                Sino Great Wall Co., Ltd. The Semi-annual Report 2017
owners’ equity

1. Capitalizing of
capital reserves (or to
capital shares)

2. Capitalizing of
surplus reserves (or to
capital shares)

3.Making up losses
by surplus reserves.

4. Other

(V). Special reserves                                                                              16,140,019.54                                                                              16,140,019.54

1. Provided this year                                                                              35,597,306.04                                                                              35,597,306.04

2.Used this term                                                                                  19,457,286.50                                                                              19,457,286.50

(VI)Other

IV. Balance at the end
                          1,698,245,011.00                     -1,303,571,952.69                   81,827,887.68         84,394,441.23          1,395,682,248.23      66,443,127.93        2,023,020,763.38
of this term

   Amount in last year


                                                                                                                                                                                                   In RMB

                                                                                                        Amount in last year

                                                                    Owner’s equity Attributable to the Parent Company
                                                Other Equity                                    Other
                                                instrusment                            Less:                                             Commo                               Minor
           Items                                                                                                                                                                           Total of owners’
                                                                                                Compr
                                                                                       Shares              Specialized        Surplus     n risk                          shareholders’
                            Share Capital    preferr                Capital reserves            ehensi                                              Attributable profit                         equity
                                                                                         in                  reserve          reserves   provisio                            equity
                                               ed      Sust Other                                ve
                                                                                       stock                                                n
                                             stock aina                                         Incom

                                                                                                      64
                                                                                                                  Sino Great Wall Co., Ltd. The Semi-annual Report 2017
                                                ble                        e
                                                debt

I.Balance at the end of
                              446,906,582.00             -50,367,862.22             46,014,941.54 84,394,441.23        755,308,636.19 -1,713,075.19 1,280,543,663.55
last year

Add:        Change      of
       accounting policy

Correcting of previous
errors

Merger of entities
under common control

         Other

II.Balance at the
beginning of current          446,906,582.00             -50,367,862.22             46,014,941.54 84,394,441.23        755,308,636.19 -1,713,075.19 1,280,543,663.55
year

III.Changed in the
                             1,251,338,429.00          -1,248,981,839.52            19,672,926.60                      473,661,862.67 54,247,830.29     549,939,209.04
current year

(1)Total
                                                                                                                       473,661,862.67 -1,327,357.60     472,334,505.07
comprehensive income

(II)Investment or
decreasing of capital        1,251,338,429.00              2,356,589.48                                                                55,575,187.89 1,309,270,206.37
by owners

1. Ordinary Shares in
                             1,251,338,429.00                                                                                                          1,251,338,429.00
vested by hareholders

2.Holders of other eq
uity instruments invest
ed capital

3.Amount of shares
                                                                               65
                                                                      Sino Great Wall Co., Ltd. The Semi-annual Report 2017
paid and accounted as
owners’ equity

4.Other                         2,356,589.48                                              55,575,187.89      57,931,777.37

(III)Profit allotment

1.Providing of surplus
reserves

 2.Providing            of
common               risk
provisions

3.Allotment to the
owners (or
shareholders)

     4.Other

(IV) Internal
transferring of owners’     -1,251,338,429.00                                                             -1,251,338,429.00
equity

1. Capitalizing of
capital reserves (or to      -1,251,338,429.00                                                             -1,251,338,429.00
capital shares)

2. Capitalizing of
surplus reserves (or to
capital shares)

3.Making up losses by
surplus reserves.

4. Other

(V). Special reserves                                 19,672,926.60                                           19,672,926.60


                                                 66
                                                                                                   Sino Great Wall Co., Ltd. The Semi-annual Report 2017

1. Provided this year                                                56,095,547.05                                                         56,095,547.05

2.Used this term                                                    36,422,620.45                                                         36,422,620.45

(VI)Other

IV. Balance at the end
                         1,698,245,011.00   -1,299,349,701.74        65,687,868.14 84,394,441.23      1,228,970,498.86 52,534,755.10 1,830,482,872.59
of this term




                                                                67
                                                                                                                                  Sino Great Wall Co., Ltd. The Semi-annual Report 2017




8. Statement of change in owner’s Equity of the Parent Company

Amount in this period


                                                                                                                                                                                In RMB

                                                                                          Amount in this period
                                              Other Equity instrusment
                                                                                                                  Other       Speciali
      Items                                                                                    Less: Shares                                Surplus                      Total of owners’
                                                                                                                                                        Attributable
                       Share Capital      preferred                        Capital reserves                   Comprehensive     zed
                                                      Sustainabl   Other                         in stock                                  reserves        profit            equity
                                           stock                                                                  Income      reserve
                                                        e debt
I.Balance at the
                       1,698,245,011.00                                    1,237,956,472.37                                              26,309,287.00 242,353,634.55 3,204,864,404.92
end of last year
Add: Change of
    accounting
    policy

Correcting of
previous errors

         Other

II.Balance at the
beginning         of   1,698,245,011.00                                    1,237,956,472.37                                              26,309,287.00 242,353,634.55 3,204,864,404.92
current year

III.Changed in the
                                                                                                                                                      -149,916,958.59    -149,916,958.59
current year

(1)Total
comprehensive                                                                                                                                          -48,022,257.93     -48,022,257.93
income

                                                                                          68
                            Sino Great Wall Co., Ltd. The Semi-annual Report 2017

(II)Investment or
decreasing of
capital by owners

1.Ordinary Share
s invested by hareh
olders

2 . Holders of oth
er equity instrume
nts invested capital

3.Allotment to the
owners (or
shareholders)

 4.Other

(III)Profit
                                               -101,894,700.66    -101,894,700.66
allotment

1.Providing of
surplus reserves

2.Allotment to the
owners (or                                     -101,894,700.66    -101,894,700.66
shareholders)

3.Other

(IV)Internal
transferring of
owners’ equity

 1. Capitalizing of
capital reserves (or
to capital shares)

                       69
                                                                                                                              Sino Great Wall Co., Ltd. The Semi-annual Report 2017

 2. Capitalizing of
surplus reserves
(or to capital
shares)

 3.Making up
losses by surplus
reserves.

4. Other

(V) Special
reserves

1. Provided this
year

2.Used this term

(VI)Other

IV. Balance at the
                      1,698,245,011.00                                    1,237,956,472.37                                          26,309,287.00   92,436,675.96 3,054,947,446.33
end of this term

Amount in last year


                                                                                                                                                                            In RMB

                                                                                         Amount in last year
                                             Other Equity instrusment                                          Other
       Items                                                                                    Less: Shares Comprehe Specialized     Surplus                      Total of owners’
                                                                                                                                                    Attributable
                      Share Capital      preferred                         Capital reserves
                                                     Sustainabl   Other                           in stock     nsive    reserve       reserves         profit      equity
                                          stock
                                                       e debt                                                  Income
I.Balance at the
                       446,906,582.00                                        2,489,294,901.37                                       26,309,287.00 257,161,771.72 3,219,672,542.09
end of last year

Add: Change of

                                                                                        70
                                                              Sino Great Wall Co., Ltd. The Semi-annual Report 2017
     accounting
     policy

Correcting of
previous errors

         Other

II.Balance at the
beginning         of    446,906,582.00    2,489,294,901.37        26,309,287.00 257,161,771.72 3,219,672,542.09
current year

III.Changed in the
                       1,251,338,429.00   -1,251,338,429.00                        -7,303,450.55      -7,303,450.55
current year

(1)Total
comprehensive                                                                      -7,303,450.55      -7,303,450.55
income

(II)Investment or
decreasing of
capital by owners

1.Ordinary Share
s invested by hareh
olders

2 . Holders of oth
er equity instrume
nts invested capital

3.Allotment to the
owners (or
shareholders)

     4.Other

(III)Profit

                                                     71
                                                              Sino Great Wall Co., Ltd. The Semi-annual Report 2017
allotment

1.Providing of
surplus reserves

2.Allotment to the
owners (or
shareholders)

3.Other

(IV)Internal
transferring of        1,251,338,429.00   -1,251,338,429.00
owners’ equity

 1. Capitalizing of
capital reserves (or   1,251,338,429.00   -1,251,338,429.00
to capital shares)

 2. Capitalizing of
surplus reserves
(or to capital
shares)

 3.Making up
losses by surplus
reserves.

4. Other

(V) Special
reserves

1. Provided this
year

2.Used this term

(VI)Other
                                                     72
                                                           Sino Great Wall Co., Ltd. The Semi-annual Report 2017

IV. Balance at the
                     1,698,245,011.00   1,237,956,472.37       26,309,287.00 249,858,321.17 3,212,369,091.54
end of this term




                                                  73
                                                                           Sino Great Wall Co., Ltd. The Semi-annual Report 2017


III.Basic Information of the Company

Sino Great Wall Co., Ltd. (hereinafter referred to as the "Company" or "Sino Great Wall") is formerly known as
Shenzhen Victor Onward Textile Industrial Company Limited which is formerly known as Xinnan Printing and
Dyeing Factory Co., Ltd.. Established in 1980, Xinnan Printing and Dyeing Factory Co., Ltd. is the first wholly
foreign-owned enterprise in Shenzhen. In April 1984, Xinnan Printing and Dyeing Factory Co., Ltd. was changed
into a foreign joint venture and was renamed Shenzhen Victor Onward Printing and Dyeing Co., Ltd.. On
November 19, 1991, approved by the Government of Shenzhen City, Shenzhen Victor Onward Printing and
Dyeing Co., Ltd. was restructured into a joint stock limited company and was renamed Shenzhen Victor Onward
Textile Industrial Company Limited.

Domestic listed RMB ordinary shares ("A" shares; stock code: 000018) and overseas-listed foreign investment
shares ("B" shares; stock code: 200018) issued by the Company were listed for trading on the Shenzhen Stock
Exchange in 1992.
On July 23, 2015, approved by the China Securities Regulatory Commission under the Official Reply to
Approving Shenzhen Victor Onward Textile Industrial Company Limited to Make Major Assets Restructuring and
Issue Shares to Chen Lue and Other Shareholders to Purchase Assets and Raise Supporting Funds (Z.J.X.K. [2015]
No.1774), the Company issued 251,849,593 shares to Chen Lue and other 167shareholders to purchase 100% of
equities of Sino Great Wall International Engineering Co., Ltd. held by them and issued to them 25,914,633
non-public offering shares, which raised funds of RMB 254,999,988.72.

As at September 24, 2015, equities of the listed company were changed to be registered in the name of the
Company. Both parties fully completed the transfer of equities and the relevant formalities of industrial and
commercial registration of changes, so the Company already owned 100% of equities in the listed company.
Meanwhile, according to the Confirmation on Delivery of Exchange-Out Assets, as at the date of delivery (namely
July 31, 2015), all assets and liabilities of the Company had been exchanged out. On September 24, 2015,
Shenzhen Branch of the China Securities Depository and Clearing Corporation Li mited had completed the
relevant securities registration formalities for the above new shares.
On July 29, 2015, the listed company received the new registered capital of RMB 251,849,593 paid by all the
shareholders of Sino Great Wall. Ruihua Certified Public Accountants issued the Verification Report (R.H.Y.Z.
[2015] No.48250011) on July 30, 2015. Registered capital after the change was RMB 420,991,949 and share
capital RMB 420,991,949. On December 4, 2015, Shenzhen Victor Onward Textile Industrial Company Limited.
was renamed Sino Great Wall Co., Ltd..
At the Company's general meeting of shareholders held on May 6, 2016, the 2015 Plan of Conversion of Capital
Reserves into Share Capital was adopted. The detailed plan was: to increase capital reserves to all the shareholders
with 28 shares for 10 shares based on 446,906,582 shares in total as at December 31, 2015 and to increase
1,251,338,429 shares in total. After the increase, total share capital of the Company was increased to
1,698,245,011 shares.
As at December 31, 2016, total share capital of the Company was 1,698,245,011 shares, in which there were
1,434,441,780 circulating A shares and 263,803,231 circulating B shares. Chen Lue who holds 582,944,556 A
shares, accounting for 34.33% of the total share capital, is the Company's controlling shareholder and actual
controller.

Registered address of the Company: No.26 Kuipeng Road, Baishi Gang, Kuichong Street, Dapeng New District,
Shenzhen. Legal representative: Chen Lue. The Company falls under textile printing and dyeing industry. The
Company mainly engages in dyeing and printing production, processing and sales of all kinds of pure cotton, pure
linen, polyester cotton, ramie cotton, high-grade blended fabrics and finished garments.

    The financial statements have been approved by the Board of Directors on August 10,2017.

     As at June 30, 2017, subsidiaries within the scope of the consolidated financial statements of the Company
are as follows:
                                                         Name of subsidiaries
   Sino Great Wall International Engineering Co., Ltd.


                                                               74
                                                                    Sino Great Wall Co., Ltd. The Semi-annual Report 2017


   Beijing Sino Great Wall Decoration Design Co., Ltd.
   Suzhou Lvbang Wood Technology Co., Ltd.
   Herabenna Interior Design Guangzhou Co., Ltd.
   Sino Great Wall Group Co., Limited
   Shanghai Ling Rui International Trade Company Limited
   Shenzhen Hongtulve Industrial Co., Ltd.
   Inrich Me Engineering Co., Limited
   Sino Great Wall New Energy (Beijing) Co., Ltd.
   SINOGREATWALL(PHILIPPINES)INTERNATIONALCORPORITION
   SGWHPEngineeringConstructionSDN.BHD

   SINOGREATWALL(USA)INC

   Shenzhen Yatian Decoration Design Engineering Co., Ltd.
   Sino Great Wall International Engineering (MACAU) Co., Limited
   SINO GREAT WALL INTERNETIONAL ENGINEERING(CNMI)CO.,LLC

   Sino Great Wall (Beijing) Investment Fund Management Co., Ltd.
   Sino Great Wall Real estate (Hubei) Co., Ltd.
   Sino Great Wall Development (Hengqin) Co., Ltd.
   PT.SINO GREAT WALL INVESTMENT INDONESIA
   PT.SINO GREAT WALL CONSTRUCTION INDONESIA
   SINO GREAT WALL INTERNETIONAL ENGINEERING(MM)CO.,LTD

   Sino Great Wall Southwest Construction Engineering Co., Ltd.
   Sino Great Wall Jianyee Engineering Co., Ltd.
   Wuhan Commercial Workers Hospital Co., Ltd.


IV.Basis for the preparation of financial statements

1.Basis for the preparation
The company is based on continuous operation, according to the actual transactions and events, in accordance wit
h "Accounting Standards for Enterprises - Basic Standards" issued by the Ministry of Finance and specific corpora
te accounting standards, corporate accounting standards application guide, explained Accounting Standards and ot
her regulations (hereinafter referred to as "Enterprise Accounting Standards") are recognized and used to measure,
 on this basis, combined with China Securities Regulatory Commission, "public offering of securities of the Comp
any disclosure Rule No. 15 - financial Reporting general Provisions" (2014 revised) , the financial report was base
d on it.

2. Continuous operation.

The Company since 12 months after the reporting period does not exist on the company's continued viability of si
gnificant concern events or circumstances.


V. Significant accounting policies and accounting estimates

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Specific accounting policies and accounting estimates tips:
Nil

1. Statement on the Accounting Standard Followed by the Company
The financial statements prepared by the Company comply with the requirements of corporate accounting
standards. They truly and completely reflect the financial situations, operating results, equity changes and cash
flow, and other relevant information of the company.
2.Fiscal Year
The Company adopts the Gregorian calendar year commencing on January 1 and ending on December 31 as the
fiscal year.
 3.Operating cycle
The Company has an operating cycle of 12 months.

 4. Functional currency

RMB is the currency of the Company and domestic subsidiaries in the primary economic environment. The
functional currency of the Company and domestic subsidiaries is RMB. Currency of the Company in preparing its
financial statements is RMB.

 5. Accounting treatment methods of business combinations under common control and not under common
 control

Business combinations under common control: The assets and liabilities acquired by the Company in business
combinations are measured at the book value of assets and liabilities of the combinee (including the goodwill
arising from the acquisition of the combinee by the ultimate controller) in the consolidated financial statements of
the ultimate controller on the combination date. The stock premium in the capital reserves should be adjusted at
the difference between the book value of the net assets acquired in combinations and that of consideration paid for
the combination (or total par value of shares issued). If the stock premium in the capital reserves is insufficient to
cover the differences, the retained earnings should be adjusted.
Business combinations not under common control: The Company shall, on the acquisition date, measure the assets
surrendered and liabilities incurred or assumed by the Company for a business combination at their fair values.
The Company shall recognize the difference of the combination costs in excess of the fair value of the identifiable
net assets acquired from the acquiree as goodwill. The Company shall recognize the difference of the combination
costs in short of the fair value of the identifiable net assets acquired from the acquiree in the current profit and loss
after review.
Intermediary service charges such as audit fee, legal service fee, appraisal and consultancy fee paid for business
combinations and other directly relevant expenses are included in the current profit and loss when incurred; the
transaction costs for the issuance of equity securities for business combinations shall be used to offset equities.

 6.Preparation method for consolidated financial statements

         1.Scope of consolidation
The scope of consolidation of the consolidated financial statements of the Company is recognized based on the
control and all subsidiaries (including the divisible part of the investee controlled by the Company) shall be
included in the consolidated financial statements.
         2. Procedures for consolidation
The Company prepares the consolidated financial statements based on its own financial statements and those of its
subsidiaries according to other relevant information. When the Company prepares its consolidated financial
statements, it shall regard the whole enterprise group as an accounting entity to reflect the overall financial
position, operating results and cash flows of the enterprise group according to the requirements for recognition,
measurement and presentation of the relevant accounting standards for business enterprises and the unified
accounting policies.
Accounting policies and accounting periods adopted by all subsidiaries included in the scope of consolidation of
the consolidated financial statements shall be consistent with those of the Company. If accounting policies and

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accounting periods adopted by the subsidiaries are inconsistent with those of the Company, in the preparation of
the consolidated financial statements, necessary adjustments shall be made according to the accounting policies
and accounting periods of the Company. For the subsidiaries acquired through business combination not under
common control, adjustments to their financial statements shall be made based on the fair values of net
identifiable assets on the acquisition date. For the subsidiaries acquired through business combination under
common control, adjustments to their financial statements shall be made based on the fair values of their assets
and liabilities (including goodwill from acquisition of the subsidiaries by the ultimate controller) in the financial
statements of the ultimate controller.
The share of owner's equity, net profits and losses in the current year and comprehensive income in the current
year of subsidiaries attributable to minority shareholders should be separately presented under the item "owner's
equity" in the consolidated balance sheet, the item "net profit" and the item "total comprehensive income" in the
consolidated income statement. The difference of the loss in the current year shared by minority shareholders of
the subsidiaries in excess of the share of minority shareholders in the owner's equity at the beginning of the year
of the subsidiaries should be used to offset the minority equity.
(1)Increase in subsidiaries or business
During the reporting period, if the Company increased subsidiaries or business from business combinations under
common control, the beginning balance of the consolidated balance sheet shall be adjusted; the incomes, expenses
and profits from the beginning of the current year of the combinations of the subsidiaries or business to the end of
the reporting period shall be included in the consolidated income statement; cash flows from the beginning of the
current year of the combinations of the subsidiaries or business to the end of the reporting period shall be included
in the consolidated statement of cash flows. Relevant items in the comparative financial statements of the
subsidiaries shall be adjusted accordingly, as if the reporting entity after the business combination exists when the
ultimate controller starts its control.
Where the Company can control the investee under common control due to additional investments and other
reasons, adjustments shall be made as if parties involved in the combination have existed in the current state when
the ultimate controller start its control. Equity investments held before the Company controls the combinee, and
the relevant profit and loss, other comprehensive income and other changes in net assets that are recognized from
the later of the date when the Company obtains the original equity and the date when the combiner and the
combinee are under common control to the combination date, shall be used to offset the retained earnings at the
beginning of the year or the current profit and loss during the period of the comparative statements.
During the reporting period, if the Company increased subsidiaries or business from business combinations not
under common control, the beginning balance in the consolidated balance sheet shall not be adjusted; the incomes,
expenses and profits of the subsidiaries or business from the acquisition date to the end of the reporting period
shall be included in the consolidated income statement; cash flows of the subsidiaries and business from the
acquisition date to the end of the reporting period shall be included in the consolidated statement of cash flows.
Where the Company can implement control over an investee not under common control due to additional
investment or other reasons, the equity held by the combinee before the purchase date is remeasured at the fair
value on the purchase date of the equity, and the difference between the fair value and the book value shall be
included in the current investment income. In the event that the equity of the acquiree held prior to the acquisition
date involves changes to other comprehensive income under the equity method and other changes to owners'
equity except for net profit and loss, other comprehensive income and profit distribution, other comprehensive
income and other changes in the owner's equity associated therewith are transferred to investment income of the
period to which the acquisition date belong, except for other comprehensive income arising from changes in net
liabilities or net assets due to the re-measurement of defined benefits plan by the investee.
(2)Disposal of subsidiaries or business
A .General method of disposal
During the reporting period, if the Company disposes subsidiaries or business, the incomes, expenses and profits
from the subsidiaries or business from the beginning of the year to the disposal date shall be included in the
consolidated income statement; cash flows of the subsidiaries and business from the beginning of the year to the
disposal date shall be included in the consolidated statement of cash flows.
The difference of total amount of the consideration from disposal of equities plus the fair value of the remaining
equities less the shares calculated at the original shareholding ratio in net assets and goodwill of the original
subsidiary which are continuously calculated as of the acquisition date or combination date is included in the
investment income of the period at the loss of control. Other comprehensive incomes associated with the equity
investments of the original subsidiary, or the changes in owners' equity other than net profit or loss, other
comprehensive income and profit distribution, are transferred into investment income of the period when control
is lost, except for other comprehensive income from the change in net liability or net asset due to the investor's

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re-measurement of designated benefit plan.
B .Disposal of subsidiaries by stages
Where the Company disposes the equity investments in subsidiary through multiple transactions and by stages
until it loses the control, if the effect of the disposal on the terms and conditions of all transactions of equity
investments in subsidiary and economic effect meet one or more of the following circumstance, it usually
indicates that the multiple transactions should be accounted for as a package deal:
i. The transactions are concluded at the same time or under the consideration of mutual effect;
ii. The transactions as a whole can reach a complete business result;
iii. The occurrence of a transaction depends on that of at least one other transactions; and/or
iv. A single transaction is uneconomical but it is economical when considered together with other transactions.
Where various transactions of disposal of equity investments in subsidiaries until loss of the control belong
to a package deal, accounting treatment shall be made by the Company on the transactions as a transaction to
dispose subsidiaries and lose the control; however, the difference between each disposal cost and net asset
share in the subsidiaries corresponding to each disposal of investments before loss of the control should be
recognized as other comprehensive income in the consolidated financial statements and should be transferred into
the current profit or loss at the loss of the control.
Where various transactions of disposal of equity investments in subsidiaries until loss of the control do not belong
to a package deal, before the loss of the control, accounting treatment shall be made according to the relevant
policies for partial disposal of equity investments in the subsidiary without losing control; at the loss of the control,
accounting treatment shall be made according to general treatment methods for disposal of subsidiaries.
(3)Purchase of minority equity of subsidiaries
The difference between long-term equity investments acquired by the Company through purchase of minority
interest and the subsidiary’s identifiable net assets attributable to the Company calculated continuously from the
acquisition date (or the combination date) in accordance with the increased shareholding ratio shall be charged
against stock premium within capital reserves in the consolidated balance sheet; when stock premium within
capital reserves is insufficient to offset, the retained earnings shall be adjusted.
(4)     Partial disposal of long-term equity investments in subsidiaries without losing control
The difference between the proceeds from partial disposal of equity investments in the subsidiary and the share of
identifiable net assets of the subsidiary attributable to the Company which are calculated continuously from the
acquisition date (or the combination date) and which are corresponding to the disposal of long-term equity
investments without losing control shall be charged against stock premium within capital reserves in the
consolidated balance sheet; when stock premium within capital reserves is insufficient to offset, the retained
earnings shall be adjusted.

7. Joint venture arrangements classification and Co-operation accounting treatment

8..Recognition Standard of Cash & Cash Equivalents
     The company recognizes its cash in vault & the deposits that are ready for payment at any time as cash when
preparing the cash flow statement.which are featured with short term (expire within 3 months since purchased),
high liquidity, easy to convert to know cash, low in risk of value change, could be recognized as cash equivalents.
   9. Foreign currency transactions and translation of foreign currency statements
         1.Foreign currency transactions
Foreign currency transactions are translated into functional currency at the approximate rate of spot
exchange rate on the day when the transactions occur.
The balance of foreign currency monetary items as at the balance sheet date are translated at the spot
exchange rate on the balance sheet date and the exchange differences arising therefrom shall be included in
the current profit and loss, except those exchange differences arising from the special borrowings of foreign
currency related to the acquired and constructed assets qualified for capitalization that will be capitalized at
the borrowing expenses.
         2.Translation of foreign currency statements
Assets and liabilities in the balance sheet are translated at the spot exchange rates on balance sheet date;
owners' equity items, except for the item of “undistributed profits”, are translated at the spot exchange rates
on the dates when the transactions occur. The income and expenses items in income statements are translated
at the approximate rate of spot exchange rate prevailing on the date when transactions occur.

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Where the Company disposes of an overseas business, it shall transfer the exchange difference relating to the
overseas business to the current profit and loss.

  10. Financial instruments

Financial instruments include financial assets, financial liabilities and equity instruments.
          1.Classification of financial instruments
At the initial recognition, financial assets and financial liabilities are classified as: financial assets or financial
liabilities measured at fair value through current profit and loss, including financial assets or financial liabilities
held for trading (and financial assets or financial liabilities directly designated to be measured at fair value
through current profit and loss); held-to-maturity investments; receivables; available-for-sale financial assets; and
other financial liabilities, etc.
          2.Recognition basis and measurement method of financial instruments
(1)Financial assets (financial liabilities) measured at fair value through current profit and loss
Financial assets (financial liabilities) measured at fair value through current profit and loss are initially recognized
at the fair value upon acquisition (net of cash dividends declared but not yet paid or bond interest due but not yet
received) and the related transaction costs are included in current profit and loss.
The interest or cash dividends to be received during the holding period is or are recognized as investment income.
Change in fair values is included in the current profit and loss at the end of the period.
Difference between the fair value and initial book-entry value is recognized as investment income upon disposal;
meanwhile, adjustment is made to gains or losses from changes in fair values.
(2) Held-to-maturity investments
Held-to-maturity investments are initially recognized at the sum of the fair value (net of bond interest due but not
yet received) and related transaction costs upon acquisition.
The interest income will be calculated and determined according to the amortized cost and effective interest rate
during the holding period and included in investment income. The effective interest rates are determined upon
acquisition and remain unchanged during the expected remaining period, or a shorter period if applicable.
Upon disposal, the difference between the purchase price obtained and the book value of the investment is
recognized in investment income.
(3) Receivables
For creditor’s rights receivable arising from external sales of goods or rendering of service by the Company and
other creditor's rights of other enterprises (excluding liability instruments quoted in an active market) held by the
Company, including accounts receivable and other receivables, the initial recognition amount shall be the contract
price or agreement price receivable from purchasing party. Receivables with financing nature are initially
recognized at their present values.
Upon recovery or disposal, the difference between the purchase price obtained and the book value of the
receivables is recognized in current profit and loss.
(4) Available-for-sale financial assets
Financial assets (financial liabilities) measured at fair value through current profit and loss are initially recognized
at the fair value and related transaction expenses upon acquisition (net of cash dividends declared but not yet paid
or bond interest due but not yet received).
The interest or cash dividends to be received during the holding period is or are recognized as investment income.
The interest or cash dividends should be measured at fair value and their changes in fair value should be included
in other comprehensive income. However, for an equity instrument investment that has no quoted price in an
active market and whose fair value cannot be reliably measured, and for derivative financial asset linked to the
said equity instrument investment and settled by delivery of the same equity instrument, they shall be measured at
cost.
Difference between the proceeds and the book value of the financial assets is recognized as investment income
upon disposal; meanwhile, amount of disposal corresponding to the accumulated change in fair value which is
originally and directly included in other comprehensive income shall be transferred out and recognized as the
current profit and loss.
(5) Other financial liabilities
They are initially recognized at the sum of the fair value and the associated transaction costs. Other financial
liabilities are subsequently measured at amortized cost.
          3.Recognition and measurement of transfer of financial assets
When a financial assets transfer occurs, the financial assets will be derecognized when substantially all the risks
and rewards on the ownership of the financial assets have been transferred to the transferee; and they will not be

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derecognized if substantially all the risks and rewards on the ownership of the financial assets have been retained.
The principle of substance over form is adopted to determine whether a financial asset meets the above
de-recognition conditions for the financial asset. The transfer of a financial asset of the Company is classified into
the entire transfer and the partial transfer of financial asset. Where the entire transfer of the financial asset meets
the de-recognition conditions, the difference of the following two amounts will be included in current profit and
loss:
(1)      The book value of the transferred financial asset;
(2)      The sum of the consideration received from the transfer and the accumulated amount of the changes in fair
value originally and directly included in owners’ equity (the situation where the financial asset transferred is an
available-for-sale financial asset is involved in).
If the partial transfer of financial asset satisfies the criteria for derecognition, the entire book value of the
transferred financial asset shall be split into the derecognized and recognized part according to their respective fair
value and the difference between the amounts of the following two items shall be included in the current profit
and loss:
(1)      The book value of derecognized part;
(2)      The sum of the consideration for the derecognized part and the portion of de-recognition corresponding to
the accumulated amount of the changes in fair value originally and directly included in owners' equity (the
situation where the financial asset transferred is an available-for-sale financial asset is involved in).
If the transfer of a financial asset does not meet the derecognition criteria, the financial asset shall continue to be
recognized, and the consideration received will be recognized as a financial liability.
           4 .Derecognition criteria of financial liabilities
Where the present obligations of financial liabilities have been discharged in whole or in part, the financial
liability is derecognized or any part thereof will be derecognized; if the Company signs an agreement with
creditors to replace the existing financial liabilities by undertaking new financial liabilities, and the new financial
liabilities are substantially different from the existing ones in terms of contract terms, the existing financial
liabilities will be derecognized, and at the same time, the new financial liability will be recognized.
Where substantial revisions are made to some or all of the contractual stipulations of the existing financial liability,
the Company shall derecognize the existing financial liability wholly or partly, and at the same time recognize the
financial liability with revised contractual stipulations as a new financial liability.
Upon whole or partial derecognition of financial liabilities, the difference between the book value of the financial
liabilities derecognized and the consideration paid (including non-cash assets surrendered or new financial
liabilities assumed) shall be included in the current profit and loss.
Where the Company repurchases part of a financial liability, the entire book value of the financial liability shall be
split into the derecognized part and continuously-recognized part according to their respective fair value on the
repurchase date. The difference between the book value allocated to the derecognized part and the considerations
paid (including non-cash assets surrendered and the new financial liabilities assumed) shall be included in the
current profit and loss.
          5 .Recognition method of fair value of financial assets and financial liabilities
Where there is an active market for financial instruments, the fair values shall be recognized at quoted prices in
the active market. Where there is no active market, the fair values shall be recognized with valuation techniques.
At the time of valuation, the Company adopts the techniques that are applicable in the current situation and
supported by enough available data and other information, selects the input values consistent with the features of
assets or liabilities considered by market participants in relevant asset or liability transactions, and gives priority
to using relevant observable inputs. Unobservable inputs are used only under the circumstance when it is
impossible or unobservable inputs to obtain relevant observable inputs.
             6.Test method and accounting treatment of depreciation of financial assets (excluding receivables)
Except for the financial assets measured at fair values through current profit and loss, the book value of financial
assets on the balance sheet date should be checked. If there is objective evidence that a financial asset is impaired,
provision for impairment shall be made.
(1) Provision for impairment of available-for-sale financial assets:
If the fair value of available-for-sale financial assets has significantly declined at the end of the period, or it is
expected that the trend of decrease in value is non-temporary after considering of various relevant factors, the
impairment shall be recognized, and accumulated losses from decreases in fair value originally and directly
included in owners' equity shall be all transferred out and recognized as impairment loss.
For available-for-sale debt instruments whose impairment losses have been recognized, if their fair values rise in
the subsequent accounting period and such rise is objectively related to the matters occurring after the recognition
of impairment loss, the previously recognized impairment loss shall be reversed and recorded into the current


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profit and loss.
Impairment losses on available-for-sale equity instruments should not be reversed through profit and loss.
(2) Provision for impairment of held-to-maturity investments:
Measurement of provision for impairment loss on held-to-maturity investments is treated in accordance with the
measurement method of impairment loss on accounts receivable.

11. Accounts receivable

         (1)Receivables that are individually significant but with provision for bad debts made on an
individual basis:

             (2)Provision for bad debts of accounts receivable made on credit risk characteristics portfolio
             basis:
                           Group Name                                                Method
For those subject to provision for bad debts under aging analysis method:
√Applicable □Not applicable

                    Age                       Rate for receivables(%)                Rate for other receivables(%)

Within 1 year(Included 1 year)                                        5.00%                                        5.00%

1-2 years                                                              10.00%                                   10.00%

2-3 years                                                              30.00%                                   30.00%

3-4 years                                                              50.00%                                   50.00%

4-5 years                                                              80.00%                                   80.00%

Accounts on percentage basis in group:
□ Applicable √Not applicable

Accounts on other basis in group:
□ Applicable √Not applicable


(3)Receivables that are individually insignificant but with provision for bad debts made on an individual
basis:

The Company complies with the disclosure requirements of the No.7 Industry Information Disclosure Guideline
of Shenzhen Stock Exchange-the Listed Company that Engaged in Civil Engineering and Construction Business.
      12.Inventories
Is the company subject to any disclosure requirements for special industries?

Yes

Civil Engineering Construction
         1.Classification of inventories
Inventories are classified into: raw materials and engineering construction, etc..
         2.Valuation method of inventories dispatched
The inventories are measured at weighted average method when dispatched.
         3.Recognition basis for net realizable values of inventories of different categories
Net realizable values of merchandise inventories held directly for sale, such as finished goods, stock commodities,
and available-for-sale materials, are measured at the estimated selling prices less estimated sales expenses and
relevant taxes and surcharges in the normal production process. Net realizable values of material inventories

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which need further processing are measured at the estimated selling prices less the estimated costs of completion,
estimated sales expenses and relevant taxes and surcharges in the normal production process. Net realizable values
of inventories held for the purpose of fulfillment of sales contracts or service contracts are calculated on the basis
of the contract prices; if the quantity of inventories held exceeds that stated in the contract, the net realizable
values of the excessive part are calculated on the basis of normal selling prices.
The provisions for inventory depreciation reserve are made on an individual basis at the end of the period, for
inventories with large quantities and relatively low unit prices, the provisions for inventory depreciation reserve
are made on a category basis. For inventories related to the product portfolios manufactured and sold in the same
area, and of which the final usage or purpose is identical or similar thereto, and which is difficult to be separated
from other items for measurement purposes, the provisions for inventory depreciation reserve are made on a
portfolio basis.
Except that there is clear evidence that the market price is abnormal on the balance sheet date, the net realizable
value of inventory items shall be recognized at the market price on the balance sheet date.
Net realizable value of inventory items at the end of the year is recognized at the market price on the balance sheet
date.
4. Inventory system
Perpetual inventory system is adopted.
         5.Amortization methods for low-cost consumables and packaging materials
(1)     One-off amortization method is adopted for low-cost consumables;
(2)     One-off amortization method is adopted for packaging materials.
13. Classified as the assets held for sale
1. Recognition criteria for the classification of the assets held for sale
   The company will recognize the combination parts of the enterprise (or non-current assets) which
simultaneously meet the following requirements, as the components of the assets held for sale.


(1) The components should be immediately sold under the current condition only according to the usual terms of
the parts sold.
(2) The enterprise has made resolution for the disposal of the components, the approval of shareholders’ meeting
or relevant authority agency if the shareholder’s approval is requested by the rules.
(3) The enterprise has signed the irrevocable transfer agreement with the transferee.
(4) The transfer shall be completed within one year.


14.Long-term equity investment
          1.Standards for joint control and significant influence
The term ‘common control’ refers to the joint control, according to the relevant provisions, over an arrangement,
of which the relevant activities should be agreed and decided by the participants that share the control. Where the
Company and other investors exert common joint control over the investee and the Company is entitled to net
assets of the investee, the investee is the joint venture of the Company.
Significant influence refers to the power to participate in making decisions on the financial and operating policies
of an enterprise, but not the power to control, or jointly control, the formulation of such policies with other parties.
Where the Company is able to exert significant influence over the investee, the investee is its associate.
          2.Recognition of initial investment costs
(1) Long-term equity investments acquired from business combination
Business combination under the same control: if the Company makes payment in cash, transfers non-cash assets
or bears debts and issues equity securities as the consideration for the business combination, the book value of the
owner's equity of the acquiree in the consolidated financial statements of the ultimate controller is recognized as
the initial cost of the long-term equity investment on the combination date. In case the Company can exercise
control over the investee under common control for additional investment or other reasons, the initial investment
cost of long-term equity investments is recognized at the share of book value of net asset of the acquiree after the
combination in the consolidated financial statements of the ultimate controller on the combination date. The stock
premium should be adjusted at the difference between the initial investment cost of long-term equity investments

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on the combination date and the book value of long-term equity investments before the combination plus the book
value of consideration paid for additional shares; if there is no sufficient stock premium for write-downs, the
retained earnings are adjusted.
Business combination not under common control: The Company recognizes the combination cost determined on
the combination date as the initial cost of long-term equity investments. Where the Company can control the
investee not under common control from additional investments, the initial investment cost should be changed to
be accounted for under the cost method and recognized at the sum of the book value of equity investments
originally held and newly increased investment cost.
(2) Long-term equity investment acquired by other means
For a long-term equity investment acquired through making payments in cash, its initial cost is the actually paid
purchase cost.
For a long-term equity investment acquired from issuance of equity securities, its initial cost is the fair value of
the issued equity securities.
If the exchange of non-monetary assets has commercial substance and the fair values of assets traded out and
traded in can be measured reliably, the initial cost of long-term equity investment traded in with non-monetary
assets are determined based on the fair values of the assets traded out and the relevant taxes and surcharges
payable unless there is any conclusive evidence that the fair values of the assets traded in are more reliable; if the
exchange of non-monetary assets does not meet the above criteria, the book value of the assets traded out and the
relevant taxes and surcharges payable are recognized as the initial cost of long-term equity investment traded in.
For a long-term equity investment acquired from debt restructuring, its initial cost is determined based on the fair
value.
          3.Subsequent measurement and recognition of gains and losses
(1) Long-term equity investments accounted for under the cost method
Long-term equity investments in subsidiaries are accounted for under the cost method. Except for the actual price
paid for acquisition of investment or the cash dividends or profits contained in the consideration which have been
declared but not yet distributed, the Company recognizes the investment income in the current year at the cash
dividends or profits declared by the investee.
(2) Long-term equity investments accounted for under the equity method
Long-term equity investments in associates and joint ventures are accounted for under the equity method. If the
cost of initial investment is in excess of the proportion of the fair value of the net identifiable assets in the investee
when the investment is made, the difference will not be adjusted to the initial cost of the long-term equity
investments; if the cost of initial investment is in short of the proportion of the fair value of the net identifiable
assets in the investee when the investment is made, the difference will be included in the current profit and loss.
The Company shall recognize the investment income and other comprehensive income at the shares of net profit
and loss and other comprehensive income realized by the investee which the Company shall enjoy or bear and
adjust the book value of long-term equity investments at the same time; the Company shall calculate the shares
according to profits or cash dividends declared by the investee and correspondingly reduce the book value of
long-term equity investments; the book value of long-term equity investments shall be adjusted according to the
investee's other changes in owner's equity other than net profit and loss, other comprehensive income and profit
distribution, which should be included in owner's equity.
The share of the investee's net profit or loss should be recognized after adjustments are made to net profit of the
investee based on the fair value of identifiable net assets of the investee upon acquisition of investments and
according to accounting policies and accounting period of the Company. When holding the investment, the
investee should prepare the consolidated financial statements, it shall account for the investment income based on
the net profit, other comprehensive income and the changes in other owner's equity attributable to the investee.

The Company shall write off the part of incomes from internal unrealized transactions between the Company and
associates and joint ventures which are attributable to the Company according to the corresponding ratio and
recognize the profit and loss on investments on such basis. Where the losses from internal transactions between
the Company and the investee fall into the scope of assets impairment loss, the full amount of such losses should
be recognized. For transactions on investments or sales of assets between the Company and associates and joint
ventures, where such assets constitute business, they should be accounted for according to the relevant policies
disclosed in this note "Accounting treatment of business combinations under common control and not under
common control" and "Preparation of consolidated financial statements".
When the Company recognizes its share of loss incurred to the investee, treatment shall be done in following

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sequence: firstly, the book value of the long-term equity investment shall be reduced. Secondly, where the book
value thereof is insufficient to cover the share of losses, investment losses are recognized to the extent of book
value of other long-term equities which form net investment in the investee in substance and the book value of
long term receivables shall be reduced. Finally, after all the above treatments, if the Company is still responsible
for any additional liability in accordance with the provisions stipulated in the investment contracts or agreements,
provisions are recognized and included into current investment loss according to the obligations estimated to
undertake.
(3) Disposal of long-term equity investments
For disposal of long-term equity investments, the difference between the book value and the actual price shall be
included in the current investment income.
For long-term equity investments accounted for under the equity method, when the Company disposes such
investments, accounting treatment should be made to the part that is originally included in other comprehensive
income according to the corresponding proportion by using the same basis for the investee to directly dispose the
relevant assets or liabilities. Owner's equity recognized at the changes in the investee's other owner's equity other
than net profit or loss, other comprehensive income and profit distribution shall be transferred to the current profit
and loss according to the proportion, except for other comprehensive income from changes arising from
re-measurement of net liabilities or net assets of defined benefit plan.
In case the joint control or significant influence over the investee is lost for disposing part of equity investments or
other reasons, the remaining equity will be changed to be accounted for according to the recognition and
measurement principles of financial instruments. The difference between the fair value and the book value on the
date of the loss of joint control or significant influence should be included in the current profit and loss. For other
comprehensive income recognized from accounting of the original equity investments under the equity method,
accounting treatment should be made by using the same basis for the investee to directly dispose the relevant
assets or liabilities when the equity method is no longer adopted. Owner's equity recognized from the investee's
changes in other owner's equity other than net profit or loss, other comprehensive income and profit distribution
should all transferred to the current profit and loss when the equity method confirmed is no longer adopted.
Where the Company loses the control over the investee due to disposal of partial equity investments or other
reasons, when it prepares individual financial statements, if the remaining equity after disposal can exercise joint
control or significant influence on the investee, such investments should be changed to be accounted for under the
equity method and the remaining equity should be deemed to have be adjusted on acquisition, namely when the
equity method is adopted for accounting; if the remaining equity after disposal can exercise joint control or
significant influence on the investee, such equity will be changed to be accounted for according to recognition and
measurement standards of financial instruments and the difference between fair value and book value on the date
of loss of the control or significant influence should be included in the current profit and loss.
Where equity after the disposal is acquired from business combinations due to additional investments or other
reasons, when the Company prepares individual financial statements, if the remaining equity after the disposal is
accounted for under the cost method or equity method, other comprehensive income and other owners' equity
recognized from equity investments that are held before the acquisition date and are accounted for under the
equity method should be carried forward in proportion; if the remaining equity after the disposal is changed to be
accounted for according to recognition and measurement standards of financial instruments, other comprehensive
income and other owners' equity should be carried forward at full amount.
15. Investment real estate
The measurement mode of investment property
Cost measurement
Depreciation or amortization method
The investment property refers to the real estate held for earning rentals or/and capital appreciation or both,
including leased land use right, land use right held for transfer upon appreciation, and leased building
(including self-built buildings or buildings developed for renting or buildings under construction or
development for future renting).

The Company measures its existing investment property at cost. For investment properties measured with the
cost model - in terms of buildings for renting, the same depreciation policy as that for fixed assets of the
Company is adopted and land use rights for renting are implemented with the same amortization policy as
that for intangible assets.
16.Fixed assets

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(1)Confirmation conditions
    Fixed assets refer to physical assets owned for purpose of production, service providing, leasing or
management, and operation with service life of more than one year. Fixed assets are recognized when all of the
following conditions are satisfied:(1)Financial benefits attached to the fixed asset is possibly inflowing to the
Company;(2) The cost of the fixed asset can be reliable measured.

(2)Depreciation method


                                                     Evpected useful    Estinated residual value   Annual depreciation rat
         Type                Depreciation method
                                                         life(Year)             rate                            e(%)

House and Building         Straight-line method                   20                           5                     4.75

Machinery            and
                           Straight-line method                   10                           5                       9.5
equipment

Transportation
                           Straight-line method                    7                           5                    13.57
equipment


Electronic equipment and
                                                                  3-5                          5                 19-31.67
other equipment
                           Straight-line method


(3)Cognizance evidence and pricing method of financial leasing fixed assets
The fixed assets acquired under financing lease are recognized if one of the following conditions is specified by
the Company and the leaser in their lease agreement:
(1) Upon the expiration of the lease term, the ownership of the leased asset has been transferred to the Company;
(2) The Company has the option to purchase the asset and the purchase price is far lower than the asset’s fair
value at the time of the option being exercised;
(3) The lease term covers the most of the useful life of the leased asset;
(4) The present value of the minimum payment by the Company on the lease commencement date is almost equal
to the asset’s fair value.
On the lease commencement date, the book entry value of a fixed asset acquired under financing lease is
measured at the asset’s fair value or the present value of the minimum lease payment, whichever is the lower. The
minimum lease payment is recorded as the book entry value of the long-term payables, and the difference between
them is deemed as the unrecognized financing expenses.
   17.Construction in process

Projects under construction are recorded as fixed assets at necessary expenditures incurred before preparing the
asset to reach the condition for its intended use. For construction in progress that has reached working condition
for intended use but for which the completion of settlement has not been handled, it shall be transferred into fixed
assets at the estimated value according to the project budget, construction price or actual cost, etc. from the date
when it reaches the working condition for intended use and the fixed assets shall be depreciated in accordance
with the Company’s policy for fixed asset depreciation; adjustment shall be made to the estimated value based on
the actual cost after the completion of settlement is handled, but depreciation already provided for will not be
adjusted.
   18.Borrowing costs

       1.Recognition principles of capitalization of borrowing costs
Borrowing costs include the interest of borrowings, the amortization of discount or premium, auxiliary expenses,
exchange differences incurred by foreign currency borrowings, etc.
The borrowing costs incurred to the Company and directly attributable to the acquisition and construction or

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production of assets eligible for capitalization should be capitalized and recorded into asset costs; other borrowing
costs should be recognized as costs according to the amount incurred and be included into current profit and loss.
Assets eligible for capitalization refer to fixed assets, investment property, inventories and other assets which may
reach their intended use or sale status only after long-time acquisition and construction or production activities.
Borrowing costs may be capitalized only when all the following conditions are met at the same time:
(1) Asset disbursements, which include those incurred by cash payment, the transfer of non-cash assets or the
undertaking of interest-bearing debts for acquiring and constructing or producing assets eligible for capitalization,
have already been incurred;
(2) Borrowing costs have already been incurred;
(3) The acquisition and construction or production activities which are necessary to prepare the assets for their
intended use or sale have already been started.
          2.Capitalization period of borrowing costs
Capitalization period refers to the period from commencement of capitalization of borrowing costs to its
cessation; period of suspension for capitalization is excluded.
Capitalization of borrowing costs should cease when the acquired and constructed or produced assets eligible for
capitalization have reached the working condition for their intended use or sale.
When some projects among the acquired and constructed or produced assets eligible for capitalization are
completed and can be used separately, the capitalization of borrowing costs of such projects should be ceased.
If all parts of the acquired and constructed or produced assets are completed but the assets cannot be used or sold
externally until overall completion, the capitalization of borrowing costs should be ceased at the time of overall
completion of the said assets.
          3.Period of capitalization suspension
If the acquisition and construction or production activities of assets eligible for capitalization are abnormally
interrupted and such condition lasts for more than three months, the capitalization of borrowing costs should be
suspended; if the interruption is necessary procedures for the acquired, constructed or produced assets eligible for
capitalization to reach the working conditions for its intended use or sale, the borrowing costs continue to be
capitalized. Borrowing costs incurred during the interruption are recognized as the current profit and loss and
continue to be capitalized until the acquisition, construction or production of the asset restarts.
          4.Measurement of capitalization rate and capitalized amounts of borrowing costs
As for special borrowings borrowed for acquiring and constructing or producing assets eligible for capitalization,
borrowing costs of special borrowing actually incurred in the current period less the interest income of the
borrowings unused and deposited in bank or return on temporary investment should be recognized as the
capitalization amount of borrowing costs.
As for general borrowings used for acquiring and constructing or producing assets eligible for capitalization, the
interest of general borrowings to be capitalized should be calculated by multiplying the weighted average of asset
disbursements of the part of accumulated asset disbursements exceeding special borrowings by the capitalization
rate of used general borrowings. The capitalization rate is calculated by weighted average interest rate of general
borrowings.

19.Biological Assets

20.Oil & gas assets

21..Intangible assets

(1) Valuation method, service life and impairment test
         1.Measurement method of intangible assets
(1) The Company initially measures intangible assets at cost on acquisition;
The cost of an externally acquired intangible asset comprises its purchase price, related taxes and surcharges and
any other directly attributable expenditure of preparing the asset for its intended use. If the deferred payment of
purchase price of intangible assets exceeding normal credit terms is substantially of financial nature, the cost of
intangible assets should be determined at the present value of the purchase price.
The intangible assets acquired and used by the debtor to repay debt in debt restructuring should be recorded at the
fair value of the intangible assets. The difference between the book value of restructured debts and the fair value

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of intangible assets used to repay debt should be included in the current profit and loss.
On the premise that non-monetary assets trade is of commercial nature and the fair value of the assets traded in or
out can be measured reliably, the intangible assets traded in with non-monetary assets should be recognized at the
fair value of the assets traded out, unless any unambiguous evidence indicates that the fair value of the assets
traded in is more reliable; as to the non-monetary assets trade not meeting the aforesaid premise, the book value of
the assets traded out and related taxes and surcharges payable should be recognized as the cost of the intangible
assets, with gains or losses not recognized.
(2) Subsequent measurement
The useful lives of intangible assets are analyzed on acquisition.
For intangible assets with definite useful lives, the Company shall adopt the straight-line method for amortization
within the period during which they can bring economic benefits to the Company; where the period during which
they can bring economic benefits to the Company cannot be forecast, those intangible assets shall be deemed as
assets with indefinite lives and no amortization will be made.
         2.Estimate of useful life of intangible assets with limited useful life:


                          Item                   Estimated useful lives                   Basis

         Land use right                                50 years           Land use certificate

         software                                       5 years           By reference to the same industry


The useful life and amortization method of intangible assets with limited useful lives should be reviewed.
After review, the useful life of intangible assets and amortization method at the end of the year are not different
from previous estimates.
           3.Specific criteria for classification of research phase and development phase
Research phase: the phase for the creative and planned investigation and research to acquire and understand new
scientific or technological knowledge.
Development stage: the phase for the application of research achievements and other knowledge to a certain plan
or design, prior to the commercial production or use, so as to produce any new material, device or product, or
substantially improved material, device and product.
Expenditure of an internal research and development project on the research phase shall be included in current
profit and loss when it occurs.
           4.Specific criteria for capitalization of expenditures at the development phase
Expenditure on the development phase of an internal research and development project shall be recognized as
intangible assets only when the following conditions are simultaneously satisfied:
(1) It is feasible technically to finish intangible assets for use or sale;
  (2) It is intended to finish and use or sell the intangible asset;
(3) The ways whereby the intangible asset is to generate economic benefits, including those whereby it is able
prove that there is a potential market for the products manufactured by applying this intangible asset or that there
is a potential market for the intangible asset itself; if the intangible asset will be used internally, its usefulness shall
be proved;
(4) It is able to finish the development of the intangible assets, and able to use or sell the intangible assets, with
the support of sufficient technologies, financial resources and other resources; and
(5) The expenditure attributable to the intangible asset during its development phase can be measured reliably.

(2)Internal research and development expenditure accounting policy

    22.Impairment of long-term assets

For the long-term equity investments, investment property, fixed assets, construction in progress, intangible assets,
and other long-term assets measured at cost model, if there are signs of impairment, an impairment test will be
conducted on the balance sheet date. If the recoverable amount of the asset is less than its book value after test,
assets impairment provision will be made at the difference and included into impairment loss. The recoverable
amount is determined at the higher of the net of the fair value less disposal costs and the present value of the
expected future cash flows. The assets impairment provision is calculated and made on an individual basis. If it is
difficult for the Company to estimate the recoverable amount of the individual asset, the recoverable amount of an

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asset group to which the said asset belongs to will be determined. Asset group is the smallest asset group that can
independently generate cash inflows.
For goodwill, impairment test shall be conducted at least in the end of each year.
The Company conducts an impairment test for the goodwill. The book value of goodwill arising from business
combinations is amortized to relevant asset groups with a reasonable method from the date of acquisition; or
amortized to relevant combination of asset groups if it is difficult to be amortized to relevant asset groups. When
the book value of goodwill is amortized to the relevant assets group or combination of assets groups, it shall be
evenly amortized according to the proportion of the fair value of each assets group or combination of assets
groups in the total fair value of the relevant assets groups or combinations of assets groups. Where the fair value
cannot be reliably measured, it should be amortized according to the proportion of the book value of each asset
group or combination of assets groups in the total book value of assets groups or combinations of assets groups.
When making an impairment test on the relevant assets groups or combination of assets groups containing
goodwill, if any indication shows that the assets groups or combinations of assets groups may be impaired, the
Company shall first conduct an impairment test on the assets groups or combinations of assets groups not
containing goodwill, calculate the recoverable amount and compare it with the relevant book value to recognize
the corresponding impairment loss. Then the Company shall conduct an impairment test on the assets groups or
combinations of assets groups containing goodwill, and compare the book value of these assets groups or
combinations of assets groups (including the book value of the goodwill apportioned thereto) with the recoverable
amount. Where the recoverable amount of the relevant assets groups or combinations of assets groups is lower
than the book value thereof, the Company shall recognize the impairment loss of the goodwill.

The above losses from asset impairment shall not be reversed in subsequent accounting periods once recognized.
   23.Long-term deferred expenses

        Long-term deferred expenses refer to various expenses which have been already incurred but will be born
        in this period and in the future with an amortization period of over 1 year.
        1.Amortization method
Long-term deferred expenses are amortized evenly over the beneficial period.
         2.Amortization years
The amortization period is determined in accordance with the contract or expected beneficial period.
     24.Employee compensation

          1.Accounting treatment of short-term compensation
During the accounting period of an employee' providing services for the Company, the Company should recognize
the short-term compensation actually incurred as liabilities and include it in the current profit and loss or the
relevant asset costs.
During the accounting period when employees serve the Company, the corresponding amount of employee
compensation is calculated and determined according to the provision basis and provision proportion as stipulated
in the provisions on the social insurance premiums and housing funds paid for employees by the Company, as
well as trade union funds and employee education funds.
If the employee benefits are of non-monetary, they are measured at fair value if they can be reliably measured.
          2.Accounting treatment of post-employment benefits
Defined contribution plans
The Company pays basic endowment insurance and unemployment insurance for employees according to the
relevant provisions of the local government, calculate payables according to payment base and proportion
specified by the local government and recognizes them as liabilities, and includes them into the current profit and
loss or the relevant asset costs.
          3.Accounting treatment of dismissal benefits
The Company recognizes the employee compensation arising from dismissal benefits as liabilities and include it
in the current profit and loss when the Company cannot unilaterally withdraw dismissal benefits which are
provided for termination of labor relation plan or layoff proposal, or when the Company recognizes costs or
expenses (which is earlier) associated with restructuring of payment of dismissal benefits.
(4) Accounting methods for other long-term employee benefits
    25. Estimated liabilities

       1.Recognition criteria for estimated liabilities
Where all the following conditions are met simultaneously for any obligation pertinent to any contingency

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including litigation, debt guarantee, onerous contract and reorganization, the Company will recognize such
contingency as estimated liabilities:
(1) The obligation is a present obligation of the Company;
(2) The performance of such obligation is likely to result in outflow of economic benefits from the Company;
and
(3) The amount of the obligation can be measured reliably.
          2.Measurement of estimated liabilities
Estimated liabilities of the Company is initially measured as the best estimate of expenses required for the
performance of the relevant present obligations.
When the Company determines the best estimate, it should have a comprehensive consideration of risks with
respect to contingencies, uncertainties and the time value of money. If the time value of money is significant, the
best estimate shall be determined after discounting the relevant future outflow of cash.
The best estimate shall be accounted as follows in different circumstances:
If there is continuous range (or interval) for the necessary expenses, and probabilities of occurrence of all the
outcomes within this range are equal, the best estimate shall be determined at the average amount of upper and
lower limits within the range.
If there is no continuous range (or interval) for the necessary expenses, or probabilities of occurrence of all the
outcomes within this range are unequal although such a range exists, in case that the contingency involves a single
item, the best estimate shall be determined at the most likely outcome; if the contingency involves two or more
items, the best estimate should be determined according to all the possible outcomes with their relevant
probabilities.
When all or some of the expenses necessary for the liquidation of estimated liabilities of the Company are
expected to be compensated by a third party, the compensation should be separately recognized as an asset only
when it is virtually certain that the reimbursement will be obtained. The amount recognized for the reimbursement
should not exceed the book value of estimated liabilities.
       26.Share-based payments

The Company's share-based payments are transactions in which the Company grants equity instruments or
undertakes equity-instrument-based liabilities in return for services from employees [or other parties]. The
share-based payments of the Company consist of equity-settled share-based payments and cash-settled
share-based payments.
Where equity-settled share-based payments are exchanged for providing services by employees, their fair values
are measured at those of employees’ equity instruments. Where the Company makes share-based payments in
restricted stocks and the employee makes capital contributions to subscribe such shares, such shares should not be
circulated or transferred before they reach unlocked conditions and before they are unlocked; if the unlocked
conditions specified in the final equity incentive plan fail to be reached, then the Company should repurchase the
shares at the price agreed in advance. When the Company received the payment of the employee for the
subscription of restricted stocks, it should recognize share capital and capital reserves (share premiums) in
accordance with the payment for subscription received. The Company should fully recognize a liability at the
repurchase obligations and recognize treasury stock at the same time. On each balance sheet date within the
vesting period, the Company will, based on the newly-acquired subsequent information such as the changes in the
number of the vested employees and whether the specified performance is reached, make the best estimate on the
number of the vesting equity instruments. On such basis, the services received in the current period should be
included in the relevant cost or expenses according to fair value on the date of grant and capital reserves should be
accordingly increased. No adjustments should be made to the recognized relevant costs or expenses and total
owners' equity after the vesting date. However, when the right can be exercised immediately after the grant, it
should be included in the relevant costs or expenses at the fair value on the date of grant. The capital reserves
should be increased accordingly.
For share-based payments finally failing to be exercised, costs or expenses should not be recognized, unless the
conditions for vesting are market conditions or non-vesting conditions. At this time, whether market conditions or
non-vesting conditions are met or not, it is deemed to have vesting rights if non-market conditions in all the
vesting conditions are met.
If the terms of the equity-settled share-based payments were modified, the services received should be recognized
at least in accordance with the terms of the unmodified terms. Moreover, the modification of fair value of equity
instruments granted from any increase, or beneficial changes to the employee on the modification date should be
recognized as increases in services obtained.
If the equity-settled share-based payments were cancelled, they should be handled as accelerated exercise of rights


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on the date of cancellation and the amount that is not yet recognized should be immediately recognized. Where
employees or other parties could choose to meet non-vesting conditions but failed to meet the conditions in the
vesting period, they should be handed as cancelling the equity-settled share-based payments. But, if new equity
instruments were granted and such new equity instruments granted are recognized to be used to replace the
cancelled equity instruments on the date of grant of new equity instruments, then the alternative equity
instruments for granted should be handled in the way same as the revision to terms and conditions on handling the
original equity instruments.
27. Preferred shares, perpetual capital securities and other financial instruments

 28.Revenue
Is the company subject to any disclosure requirements for special industries?

Yes

Civil Engineering Construction

The Company complies with the disclosure requirements of the No.7 Industry Information
Disclosure Guideline of Shenzhen Stock Exchange-the Listed Company that Engaged in Civil
Engineering and Construction Business.
      29.Government subsidies
(1)Basis and accounting methods for assets related government subsidies
          1.Type
Government subsidies are monetary assets and non-monetary assets freely obtained by the Company from the
government. They are divided into government subsidies related to assets and government subsidies related to
income.
Government subsidies related to assets refer to government subsidies which are acquired by the Company for
construction or form long-term assets in other ways, including the financial allocation for purchasing fixed assets
or intangible assets, the financial discount for special loan of fixed assets and others. Government subsidies
related to income refer to government subsidies other than government subsidies related to assets.
          2.Timing of recognition
If a government subsidy is a monetary asset, it shall be measured in the light of the amount received or receivable.
If a government subsidy is a non-monetary asset, it shall be measured at its fair value; and if its fair value cannot
be obtained in a reliable way, it shall be measured at a nominal amount. Government subsidies measured at the
nominal amount are directly included in the current profit or loss.
          3.Accounting treatment
For asset-related government grants, the Company will recognize them as deferred income, and include them in
non-operating income according to the useful lives of the related assets constructed or acquired.
(1)Basis and accounting methods for income related government subsidies
  Government subsidies related to assets are recognized as deferred income, and included in non-operating
income by stages based on the useful life of the assets acquired and constructed;
if government subsidies related to income are used to compensate the Company’s relevant expenses or losses
in future periods, such government subsidies should be recognized as deferred income on acquisition and be
included in current non-operating income during the period of recognition of the relevant expenses; if
government subsidies related to income are used to compensate the Company’s relevant expenses or losses
incurred, such government subsidies are directly included into current non-operating income on acquisition.

      30. Deferred income tax assets and deferred income tax liabilities

Deferred income tax assets are recognized at deductible temporary differences to the extent that it shall not exceed
the taxable income probably obtained in future period to be against the deductible temporary difference. For
deductible losses and tax credits that can be carried forward to subsequent periods, deferred tax assets arising
therefrom are recognized to the extent that future taxable income will be probable to be available against
deductible losses and tax credits.
Taxable temporary differences are recognized as deferred income tax liabilities except in special circumstances.

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Such special circumstances include: the initial recognized of goodwill; other transactions or events that are not a
business combination and affect neither accounting profit nor taxable profit (tax loss).
If the Company has the legal right of netting and intends to settle in net amount or to obtain assets and discharge
liabilities simultaneously, the current income tax assets and current income tax liabilities of the Company shall be
presented based on the net amount after offset.
When the Company has the legal right for netting of current income tax assets and current income tax liabilities
and the income tax assets and income tax liabilities are related to the income tax levied on the same taxpayer by
the same tax administrative department or are related to different taxpayers but, within each future period of
reversal of important income tax assets and income tax liabilities, the taxpayers involved intend to settle current
income tax assets and current income tax liabilities or acquire assets and liquidate liabilities at the same time, the
Company's income tax assets and income tax liabilities shall be presented at the net amount after the offset.

    31.Leases

          1.Accounting treatment of operating leases
(1) The Company's rental expenses paid for leased assets shall, within the whole lease term excluding the
rent-free period, be amortized with the straight-line method and included in current expenses. Initial direct costs
related to lease transactions paid by the Company shall be included in the current expenses.
When assets lessor bears costs related to the lease borne by the Company, the Company shall deduct the part of
expenses from the total rents and amortize the rents after deduction over the lease term and include them in
current expenses.
(2) The Company's rental expenses collected for leased assets shall, within the whole lease term excluding the
rent-free period, be amortized with the straight-line method and recognized as the relevant rental income. Initial
direct cost associated with leasing transactions paid by the Company should be included in the current cost; the
cost of large amount shall be capitalized and included by stages in the current income according to the same base
recognized at the income related to leasing over the whole leasing period.
When the Company bears costs related to the lease borne by the leasee, the Company shall deduct part of
expenses from the total rents and amortize the rents after deduction over the lease term.
         2.Accounting treatment of finance leases
(1) Assets acquired under finance leases: at the inception of the leases, the Company shall recognize the
book-entry value of leased assets at the lower of their fair values or their present values of the minimum lease
payments, and shall recognize the book-entry value of long-term payables at the amounts of the minimum lease
payments, and shall recognize the differences between the above two book-entry values as unrecognized financing
charges. Under the effective interest method, the Company amortizes the unrecognized financing charges over the
lease term and includes them in the financial expenses. The Company records the initial direct expenses in the
values of leased assets.
(2) Assets leased under finance leases: On the lease beginning date, the Company recognizes the difference of
finance leasing receivables plus unguaranteed residual value and their present value as unrealized financing
income and recognized the unrealized financing income as rental income in each period when the rents will be
received in the future. The initial direct expenses of the Company related to lease are included into the initial
measurement of financing lease payment receivable, and the income recognized in lease period is decreased
accordingly.
32. Other significant accounting policies and estimates
(1)Change of main accounting policies
(1) Implementation of the Provisions on the Accounting Treatment for Value-added Tax
On December 3, 2016, the Ministry of Finance promulgated the Provisions on the Accounting Treatment for
Value-added Tax (Cai Kuai [2016] No.22), which apply to relevant transactions of the Company occurred
since May 1, 2016. Main impacts of the provisions implementation of the Company are as follows:
                                                                                       Name and amount of the affected items in the
              Contents of and reasons for changes in accounting policies
                                                                                                 financial statements
    (1) Adjust the item "business taxes and surcharges" in the income statement to
    the item "taxes and surcharges" therein.                                           Taxes and surcharges
    (2) Reclassify the real estate tax, land-use tax- vehicle and vessel use tax and   Increased taxes and surcharges in this year
    stamp duty incurred by business operation activities of the enterprise since May   amount to RMB 433,364.39, and decreased
    1, 2016 from "General and administrative expenses" to "Taxes and surcharges"       general and administrative expenses in 2016


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      and the taxes incurred before May 1, 2016 will not be adjusted. The               amount to RMB 433,364.39.
      comparative data shall not be adjusted.
      (3) Reclassify the item "taxes and surcharges payable" to transfer the VAT        Increased ending balance of other current
      amount where income (or profit) has been recognized but the VAT has not been      liabilities amounted to RMB 30,382,980.72,
      paid and which shall be recognized as the output tax amount into the item         and decreased ending balance of taxes and
      "other current liabilities" (or "other non-current liabilities"). Compared data   surcharges payable amounted to RMB
      shall not be adjusted. The comparative data shall not be adjusted.                30,382,980.72.


         (2)Changes in significant accounting estimates
              The Company had no changes in principal accounting estimates during the reporting period.

33.Change of main accounting policies and estimations

(1)Change of main accounting policies
□Applicable √Not applicable

(2)Change of main accounting estimations

□Applicable √Not applicable

34.Other

VI.Taxation

1.Main categories and rates of taxes


                   Tax type                                   Tax basis                                  Tax rate(%)

                                             The output tax is calculated based on
                                             taxable income in accordance with tax
                                             laws, and value added tax payable should
VAT                                                                                     0、3、6、11、17
                                             be the balance of the output tax after
                                             deducting the deductible input tax for the
                                             current year
                                             Paid based on the actual business tax, VAT
Urban maintenance and construction tax                                                  1、5、7
                                             and consumption tax paid
                                             Calculated and paid at turnover tax
Enterprise income tax                                                                   15、25
                                             actually paid.
                                             Calculated and paid at turnover tax
Business tax                                                                            3、5
                                             actually paid.
                                             Calculated and paid at turnover tax
Education surtax                                                                        3
                                             actually paid.
                                             Calculated and paid at turnover tax
Local education surtax                                                                  2
                                             actually paid.

In case there exist any taxpayer paying corporate income tax at different tax rates, disclose the information
                         Name of taxpayer                                                   Income tax rates

Sino Great Wall Co., Ltd.                                                                                                      25



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Sino Great Wall Medical Investment Management Co., Ltd.                                                              25

Sino Great Wall Infrastructure Investment Co., Ltd.                                                                  25

Wuhan Commercial Workers Hospital Co., Ltd.                                                                          25

Sino Great Wall International Engineering Co., Ltd.                                                                  15

Sino Great Wall Jianyee Engineering Co., Ltd.                                                                        25
Sino Great Wall (Beijing) Investment Fund Management Co.,
                                                                                                                     25
Ltd.

Sino Great Wall Real estate (Hubei) Co., Ltd.                                                                        25

Sino Great Wall New Energy (Beijing) Co., Ltd.                                                                       25

Qian'an Sino Solar Power Generation Co., Ltd.                                                                        25

Wu'an Juhe Photovoltaic Power Generation Co., Ltd.                                                                   25

Bozhou Guangcheng New Energy Co., Ltd.                                                                               25

Bozhou Zhaosheng Agricultural Technology Co., Ltd.                                                                   25

Bozhou Xieying Solar Power Generation Co., Ltd.                                                                      25

Shanghai Ling Rui International Trade Company Limited                                                                25

Shenzhen Hongtulve Industrial Co., Ltd.                                                                              25

Sino Great Wall Development (Hengqin) Co., Ltd.                                                                      25

SINO GREAT WALL(USA).INC                                                                                           30

Herabenna Interior Design Guangzhou Co., Ltd.                                                                        25

Inrich Me Engineering Co., Limited                                                                                   17

Sino Great Wall Southwest Construction Engineering Co., Ltd.                                                         25

PT.SINO GREAT WALL INVESTMENT INDONESIA                                                                              25

PT.SINO GREAT WALL CONSTRUCTION INDONESIA                                                                            25

SINO GREAT WALL INTERNETIONAL
                                                                                                                0%-5%
ENGINEERING(CNMI)CO.,LLC

Shenzhen Yatian Decoration Design Engineering Co., Ltd.                                                              25
Sino Great Wall International Engineering (MACAU) Co.,
                                                                                                                     12
Limited
Sino Great Wall Group Co., Limited                                                                                   17

SGW HP EngineeringConstructionSDN.BHD                                                                                24

SINO GREAT WALL (PHILIPPINES) INTERNATIONAL
                                                                                                                     30
CORPORITION

Beijing Sino Great Wall Decoration Design Co., Ltd.                                                                  25

Suzhou Lvbang Wood Technology Co., Ltd.                                                                              25

Sino Heji Environmental Protection Materials Co., Ltd.                                                               25

SINO GREAT WALL INTERNETIONAL                                                                                        25



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ENGINEERING(MM)CO.,LTD

Sino Great Wall International Engineering(Thailand) Co.,Ltd.                                                                 20


2.Tax preferences

(1) Approved by the Beijing Municipal Office, SAT under the Circular on Approval of Tax Types in 2013, the
taxable income of Sino Great Wall Design was calculated at 10% of total income.
(2) According to the provisions of the Circular of the State Administration of Taxation on Issuing the Tentative
Measures for the Collection and Administration of Income Tax on Enterprises That Have Operations in Different
Regions and That Pay Taxes in a Consolidated Manner (G.S.F. [2008] No. 28) issued on March 10, 2008, for
business institutions and establishments without the status of a legal person that are established in different
regions within the territory of China, namely those engaging in production and operating activities in different
regions, their head offices (parent companies) are enterprises that pay taxes in a consolidated manner. The parent
company pays taxes in a consolidated manner. Head office and branches prepay enterprise income tax in
installment, 50% of which is shared by all branches and 50% of which is prepaid by the head office. Branches
share the prepayments in the proportion of 35%, 35% and 30% of operating income, employee compensation and
total assets; final settlement of annual enterprise income tax shall be made by the parent company at the tax
authority and will no longer be allocated to branches.
(3) The Company's subsidiaries Sino Great Wall Group Co., Limited (hereinafter referred to as "Sino Hong
Kong") and Inrich Me Engineering Co., Limited (hereinafter referred to as "Inrich Me Engineering") are
enterprises established in the Hong Kong Special Administrative Region and are subject to enterprise profit tax at
the rate of 16.5%; Sino Great Wall International Engineering (MACAU) Co., Limited (hereinafter referred to as
"Sino Macau") is an enterprise established in the Macao Special Administrative Region and is subject to
complementary income tax at the progressive rate.
(4) The Company's wholly-owned subsidiary Sino Great Wall International Engineering Co., Ltd. (hereinafter
referred to as "Sino International") obtained the high-tech enterprise certificate (No.: GR201511003125) jointly
approved and issued by Beijing Municipal Science and Technology Commission, Beijing Municipal Finance
Bureau, Beijing Municipal Office, SAT and Beijing Local Taxation Bureau on November 24, 2015. The certificate
was issued on November 24, 2015 and valid for 3 years, so Sino International would pay enterprise income tax at
the rate of 15% in 2015, 2016 and 2017.
(5) The Company's wholly-owned subsidiary Wuhan Commercial Workers Hospital Co., Ltd. was entitled to the
exemption of value-added taxes since May 1, 2016 in accordance with the Notice of the Ministry of Finance and
the State Administration of Taxation on Implementing the Pilot Program of Replacing Business Tax with
Value-Added Tax in an All-round Manner (Cai Shui [2016] No.36).

3.Other

VII. Notes to the major items of consolidated financial statement

1.Monetary funds
                                                                                                                         In RMB

                  Items                                Year-end balance                         Year-beginning balance

Cash on hand                                                              3,388,678.83                             2,974,883.16

Bank deposit                                                        1,443,085,061.52                             940,730,439.25

Other monetary capital                                               273,782,343.42                              397,110,499.42

Total                                                               1,720,256,083.77                           1,340,815,821.83

Including: Total amount deposited abroad                             231,737,123.34                              197,496,287.50

Other notes



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 2. Financial assets measured at fair value through current profit and loss
                                                                                                                        In RMB

                   Items                              Yea-end balance                         Year-Beginning balance

Other notes


3.Derivative financial assets

□ Applicable √ Not applicable


4.Note receivables

(1)Classification Note receivable

                                                                                                                        In RMB

                   Items                              Year-end balance                         Year-beginning balance

Bank acceptance bill                                                     3,900,000.00                            21,300,446.44

Commercial acceptance bill                                          777,167,587.68                            1,053,090,196.14

Total                                                               781,067,587.68                            1,074,390,642.58


(2) Notes receivable pledged by the Company at the period-end

                                                                                                                        In RMB

                                  Items                                                    Amount

                   Commercial acceptance bill                                            98,645,997.87

                                  Total                                                  98,645,997.87
              (3)Notes receivable endorsed or discounted by the Company as at June 30,2016 but not expired on
              the balance sheet date
                                                                                                                        In RMB

                                                                                        Amount underecognized as at June 30,
                    Item                   Amount derecognized as at June 30, 2017
                                                                                                      2017

Bank acceptance bill                                                     9,800,000.00

Commercial acceptance bill                                                                                       57,789,095.11

Total                                                                    9,800,000.00                            57,789,095.11


(4)There is no notes transferred to accounts receivable because drawer of the notes fails to exuted the contract or
agreement

                                                                                                                        In RMB

                                  Items                                                    Amount

Other notes
5. Account receivable

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        (1).Classification account receivables.

                                                                                                                                In RMB

                                        Amount in year-end                                        Amount in year- begin

                           Book Balance        Bad debt provision    Book        Book Balance         Bad debt provision
        Categoty                                                     value
                         Amount Proporti Amount Proportio                     Amount Proportio Amount Proportion( Book value
                                     on(%)                n(%)      Proportio          n(%)               %)
                                                                      n(%)

Receivables subject
                                                                                4,148,1
to provision for bad     5,335,451             506,485,             4,828,966                        423,012,1              3,725,170,2
                                     100.00%               9.49%                82,356.     99.91%                 10.20%
debts on credit risk       ,726.65               348.85               ,377.80                             47.95                     08.31
                                                                                     26
characteristics basis

Receivables that are
individually
insignificant but with                                                          3,844,3              3,844,309
                                                                                             0.09%
provision for bad                                                                 09.34                     .34
debts made on an
individual basis
                                                                                4,152,0
                         5,335,451             506,485,             4,828,966                        426,856,4              3,725,170,2
                                     100.00%               9.49%                26,665. 100.00%                    10.20%
                           ,726.65               348.85               ,377.80                             57.29                     08.31
Total                                                                                60

Receivable accounts with large amount individually and bad debt provisions were provided
□Applicable √Not applicable
Account reveivable on which bad debt proisions are provided on age basis in the group
√ Applicable □ not applicable
                                                                                                                                In RMB

                                                                          Amount in year-end
               Aging
                                         Account receivable                  Bad debt provision               Rate of alloance(%)

Within item 1 year

Subtotal within 1 year                            4,028,468,011.86                    201,423,401.18                                  5%

1-2 years                                           680,439,169.63                        68,043,916.96                             10%

2-3 years                                           448,259,638.33                    134,477,891.50                                30%

3-4 years                                           135,205,169.22                        67,602,584.61                             50%

4-5 years                                            40,710,915.07                        32,568,732.06                             80%

Over 5 years                                          2,368,822.54                         2,368,822.54                             100%

Total                                             5,335,451,726.65                    506,485,348.85

Notes:

The Company complies with the disclosure requirements of the No.7 Industry Information Disclosure Guideline
of Shenzhen Stock Exchange-the Listed Company that Engaged in Civil Engineering and Construction Business.
Receivable accounts with large amount individually and bad debt provisions were provided
□Applicable √Not applicable

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                                                                               Sino Great Wall Co., Ltd. The Semi-annual Report 2017


Account reveivable on which bad debt proisions are provided on age basis in the group

(2)Bad debt provision accrual collected or switch back

Bad debt provision accrual was RMB 78,876,794.46 ; The acmount collected or switches back amounting to
 -130,997.72.

(3)The current accounts receivable write-offs situation

                                                                                                                              In RMB

                              Items                                                        Amount written off

Account receivables actually written-off during the reporting period:
                                                                                                                              In RMB

                        Nature of account                             Reason for written      Verification       Arising from related
      Name                                  Amount written off
                           receivables                                       -off              procedures         transactions (Y/N)



Explanation for write-off of account receivables:

(4)The ending balance of other receivables owed by the imputation of the top five parties


                                                                                Amount in year-end
                       Name
                                                Account receivable                  Proportion(%)            Bad debt provision

   China Harbour Engineering Company Ltd.              784,205,077.92                                15             39,210,253.90

   China Water Conservancy & Hydropower                514,481,654.72                                10             25,724,082.74
   Second Engineering Bureau Co., Ltd.

           Oxley Gem (Cambodia) Co., ltd.              309,592,365.55                                 6             15,479,618.28

   Zhong Ya Group                                      300,703,393.02                                 6             15,035,169.65

   Oxley Diamond (Cambodia) Co., Ltd                   293,445,130.01                                 6             14,672,256.50

   Total                                              2,202,427,621.22                               42            110,121,381.07

(5) Account receivable which terminate the recognition owning to the transfer of the financial assets
(6) The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts
receivable
Other notes:

6.Prepayments

(1)Age analysis

                                                                                                                              In RMB



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                                                                               Sino Great Wall Co., Ltd. The Semi-annual Report 2017


                                              Year-end balance                                  Year-beginning balance
            Aging
                                   Amount                    Proportion                   Amount                     Proportion

Within 1 year                         87,432,524.80                    46.75%              311,193,306.31                       97.49%

1-2 years                             97,273,487.84                    52.02%                  5,789,414.72                       1.81%

2-3 years                              1,149,555.80                       0.61%                1,269,897.25                       0.40%

Over 3 years                           1,147,010.34                       0.61%                 954,180.35                        0.30%

Total                               187,002,578.78                --                       319,206,798.63                  --

Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in time::

(2)The ending balance of Prepayments owed by the imputation of the top five parties


                      Name                                   Balance in year-end                              Proportion

Qingyuan Hefeng New Energy Technology Co.,                                 75,000,000.000                                         40.11%
 Ltd.

Guangzhou Qiannuo Company                                                        6,962,022.1                                       3.72%

Anhui Yameiya                                                                  5,355,000.00                                        2.86%

QD-CPC-INDUSTRIES COMPANY                                                      3,438,009.40                                        1.84%

China steel structure (Kampuchea) Co., Ltd.                                    3,130,526.29                                        1.67%

                      Total                                      93,885,558.29                                                  50.21%

Other notes:

7.Interest receivable

(1)Classification Interest receivable

                                                                                                                                  In RMB

                    Name                                 Balance in year-end                       Balance in Year-beginning



(2)Important overdue interest


                                                                                                               Is there any impairment
            Name              Balance in year-end           Overdue date                  Reason
                                                                                                               and its judgment basis?

Other notes:




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                                                                                    Sino Great Wall Co., Ltd. The Semi-annual Report 2017


8.Dividend receivable

(1)Dividend receivable

                                                                                                                                      In RMB



                      Items                                   Amount in year-end                           Amount in year-beginning


(2)Dividend receivable aging over 1 years

                                                                                                                                      In RMB

                                                                                                                      Whether the impairment
              Items             Amount in year-end                      Age                      Reason
                                                                                                                      and its judgment basis

Other notes:

9. Other accounts receivable

(1) Other accounts receivable disclosed by category
                                                                                                                                       In RMB

                                            Amount in year-end                                         Amount in year- begin

                              Book Balance         Bad debt provision                Book Balance          Bad debt provision
    Classification                                                        Book
                                       Proportio                                              Proportio               Proportion( Book value
                          Amount                   Amount Amount          value    Amount                 Amount
                                         n(%)                                                   n(%)                      %)

Other receivables
subject to provision
                          991,698,                 68,552,9             923,145,8 709,527                 58,515,25                651,012,13
for bad debts on                       100.00%                 6.91%                           99.93%                      8.25%
                              810.35                  52.46                   57.89 ,391.05                    8.14                      2.91
credit risk
characteristics basis

Other receivables
with individually
insignificant amount                                                               500,000                500,000.0
                                                                                                 0.07%
but subject to                                                                          .00                       0
individual provision
for bad debts

                          991,698,                 68,552,9             923,145,8 710,027                 59,015,25                651,012,13
Total                                  100.00%                 6.91%                          100.00%                      8.25%
                              810.35                  52.46                   57.89 ,391.05                    8.14                      2.91

Receivable accounts with large amount individually and bad debt provisions were provided
□Applicable √Not applicable
Account reveivable on which bad debt proisions are provided on age basis in the group
√ Applicable □ not applicable
                                                                                                                                   In RMB


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                                                                     Amount in year-end
               Aging
                                       Account receivable            Bad debt provision               Rate of alloance(%)

Within item 1 year

Subtotal within 1 year                          855,499,389.99                   42,774,969.50                            5.00%

1-2 years                                        91,500,049.08                     9,150,004.91                          10.00%

2-3 years                                        32,825,953.41                     9,847,786.02                          30.00%

3-4 years                                         9,775,052.72                     4,887,526.36                          50.00%

4-5 years                                         1,028,497.40                      822,797.92                           80.00%

Over 5 years                                      1,069,867.75                     1,069,867.75                         100.00%

Total                                           991,698,810.35                   68,552,952.46

Notes:
Other receivable account in Group on which bad debt provisions were provided on percentage basis:
□Applicable √Not applicable
Other Receivable accounts on which bad debt provisions are provided by other ways in the portfolio:
□Applicable √Not applicable

(2)Bad debt provision accrual collected or switch back

Bad debt provision accrual was 12,514,988.27, the acount collected or switches back amounting to RMB
2,149,851.74.
Significant amount of reversed or recovered bad debt provision:
                                                                                                                        In RMB
                       Name                                 Amount                                     Method

(3) Other account receivables actually cancel after wtite-off
                                                                                                                         In RMB

                              Items                                                        Amount

Of Which,Other receivable write-off:
                                                                                                                         In RMB

                                                                                                           Whether the money
                                                                                                             is generated by
         Name                 Nature             Amount              Reason                program
                                                                                                                related party
                                                                                                                transactions

Notes:


(4) Other account receivables category by nature of money

                                                                                                                         In RMB

                  Naature                            Ending book balance                      Beginning book balance


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                                                                                  Sino Great Wall Co., Ltd. The Semi-annual Report 2017


Bidding margins, performance bonds and
                                                                             582,846,578.91                              366,310,322.14
deposits

Petty cash and current accounts between
                                                                              69,312,517.17                               59,867,918.12
individuals

Current accounts between entities                                            339,032,395.66                              282,984,039.72

Others                                                                           507,318.61                                  865,111.07

Total                                                                        991,698,810.35                              710,027,391.05


(5)The ending balance of other receivables owed by the imputation of the top five parties

                                                                                                                                   In RMB

                                                                                              Portion in total other Bad debt provision
         Name                   Nature              Year-end balance           Age
                                                                                              receivables(%)        of year-end balance

China         Electric
                         Current         accounts
Power Construction                                     199,296,452.57 1 年以内                             20.10%          9,964,822.63
                         between entities
Group Co., Ltd.

PT.WANXIANG
NICKEL                   Deposits                       68,000,000.00 1 年以内                              6.86%          3,400,000.00
INDONESIA

Hebei Xuxing             urrent accounts
                                                        55,000,000.00 1 年以内                              5.55%          2,750,000.00
Industry Co., Ltd.       between entities

China Harbour
Engineering              Deposits                       51,258,276.00 1 年以内                              5.17%          2,562,913.80
Company Ltd.

China Second
Metallurgy Group         Performance bonds              50,000,000.00 1 年以内                              5.04%          2,500,000.00
Co., Ltd.

Total                               --                 423,554,728.57            --                        42.72%         21,177,736.43


(6) Account receivables with government subsidies involved

                                                                                                                                   In RMB

                                                                                                                Estimated time, amount
            Name                     Project name          Amount in year-end At the end of aging
                                                                                                                       and basis


(7) Other account receivables recognition terminated due to transfer of financial assets

 (8) Other account receivables transferred and assets & liability formed by its continuous involvement

Other Notes



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                                                                                Sino Great Wall Co., Ltd. The Semi-annual Report 2017


10.Inventory

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

(1)Inventory types

                                                                                                                               In RMB


                                       Year-end balance                                        Year-beginning balance
        Items
                                       Provision for bad                                          Provision for bad
                     Book Balance                           Book value          Book Balance                            Book value
                                            debts                                                       debts

Raw materials           9,258,863.69                             9,258,863.69     12,078,945.75                          12,078,945.75

Processing
                                                                                     668,934.23                             668,934.23
products

Stock goods            50,339,149.57       1,404,765.68         48,934,383.89     43,492,877.62        1,404,765.68      42,088,111.94

Construction cont
ract has been com
                      248,587,196.30       5,051,867.60     243,535,328.70       282,911,079.94        5,051,867.60     277,859,212.34
pleted unsettled a
ssets

Low value
                                                                                     209,726.10                             209,726.10
consumables

Total                 308,185,209.56       6,456,633.28     301,728,576.28       339,361,563.64        6,456,633.28     332,904,930.36

The Company complies with the disclosure requirements of the No.7 Industry Information Disclosure Guideline
of Shenzhen Stock Exchange-the Listed Company that Engaged in Civil Engineering and Construction Business.

(2) Inventory depreciation reserve

                                                                                                                               In RMB

                     Year-beginning                  Increase                               Decrease
        Items                                                                                                         Year-end balance
                        balance            Accrual                Other          Switch back            Other

Stock goods             1,404,765.68                 0.00                                  0.00                           1,404,765.68

Construction cont
ract has been com
                        5,051,867.60                 0.00                                  0.00                           5,051,867.60
pleted unsettled a
ssets

Total                   6,456,633.28                                                                                      6,456,633.28




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(3) Explanation on inventories with capitalization of borrowing costs included at ending balance

(4) Assets unsettled formed by construction contract which has completed at period-end

                                                                                                                        In RMB

                            Items                                                          Amount

Accumulated Incurred Cost                                                                                    13,922,688,136.75

Accumulated Confirmed Gross Profit                                                                             3,349,029,346.13

Less: expected loss                                                                                                5,051,867.60

Settlement Amount                                                                                            17,023,130,286.58

Unliquidated Completed Assets Formed in the Construction
                                                                                                                243,535,328.70
Contract

Other notes:


11. Divided into assets held for sale

                                                                                                                        In RMB

           Items            Ending book value              Fair value         Estimated disposal cost   Estimated disposal time

Other notes:


12. Non-current assets due within 1 year

                                                                                                                        In RMB

                   Items
                                                     Year-end balance                          Year-beginning balance
Long-term borrowings maturing within
                                                                         7,961,594.15                             13,462,942.89
one year

Total                                                                    7,961,594.15                             13,462,942.89

Other notes:


13. Other current assets

                                                                                                                        In RMB

                   Items
                                                     Year-end balance                          Year-beginning balance

Input tax to be deducted                                                11,484,244.83                             35,450,194.47

Total                                                                   11,484,244.83                             35,450,194.47

Other notes:




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   14. Available-for-sale financial assets

   (1) Available-for-sale financial assets

                                                                                                                                             In RMB

                                                     Closing balance                                          Opening balance
                  Items                                  Provision fo                                          Provision fo
                                      Book balance                        Book value        Book balance                             Book value
                                                         rimpairment                                           rimpairment


   (2) Available-for-sale financial assets measured at fair value at period-end

                                                                                                                                             In RMB

                                     Available-for-sale equity             Available-for-sale        Debt
Type                                                                                                                                        Total
                                     instruments                           instruments


   (3) Available-for-sale financial assets measured by cost at the period-end

                                                                                                                                             In RMB

                                          Book balance                                Impairment provision            Shareholdin Cash bonus
                                                                                                                      g proportion         of the
       Investee           Period-begi                                     Period-beg
                            &nbs