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神州长城(000018)公告正文

神州B:2017年第三季度报告全文(英文版)

公告日期:2017-10-28

                   Sino Great Wall Co., Ltd. The Third Quarterly Report 2017




Sino Great Wall Co., Ltd.

The Third Quarterly Report 2017




        October 2017




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                                                                Sino Great Wall Co., Ltd. The Third Quarterly Report 2017




                                              1 Important Notice


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


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


Mr.Chen Lue, Person in charge of the Company, Mr.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 Quarterly Report .




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                                                                                             Sino Great Wall Co., Ltd. The Third Quarterly Report 2017



II. Basic information about the company

(1)Main financial data and financial index

Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed
and accounting error correction or not.
□ Yes      √ No
                                                  As at the end of the reporting                                         Changed (%)over end of
                                                                                        As at the end of last year
                                                             period                                                               prev. year

Gross assets(RMB)                                              10,495,996,015.27                   7,986,178,961.63                          31.43%

Net assets attributable to the
shareholders of the listed company                                2,042,777,869.59                   1,777,948,117.49                          14.90%
(RMB)

                                                                             Increase/decrease over Between beginning of
                                                                                                                                 Changed (%)over
                                                    Reporting period         the same period of last the year to the end of
                                                                                                                                  end of prev. year
                                                                                  year(%)               the report period

Operating income(RMB)                               1,660,125,169.52                        29.70%          4,685,207,526.32                 44.89%

Net     profit    attributable      to     the
shareholders of the listed company                      141,854,355.89                        40.64%           410,460,805.92                  35.39%
(RMB)

Net profit after deducting of
non-recurring gain/loss attributable
                                                        141,971,594.58                        40.84%           406,874,430.74                  43.62%
to    the   shareholders       of        listed
company(RMB)

 Cash flow generated by business
                                                            --                          --                    -785,444,322.16                  53.42%
        operation, net(RMB)

Basic               earning                per
                                                                    0.0835                    41.05%                    0.2417                 35.41%
share(RMB/Share)

Diluted              gains                 per
                                                                    0.0835                    41.05%                    0.2417                 35.41%
share(RMB/Share)(RMB/Share)

Weighted         average     income/asset
                                                                    7.09%                       0.66%                   21.49%                 0.54%
ratio(%)

Items and amount of non-current gains and losses
√ Applicable □Not applicable
                                                                                                                                               In RMB

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

Non-current asset disposal gain/loss(including the write-off part                                       -24,916.50



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                                                                      Sino Great Wall Co., Ltd. The Third Quarterly Report 2017


for which assets impairment provision is made)

Govemment subsidy recognized in current gain and                                              Mainly is the posts stabilization
loss(excluding those closely related to the Company’s business                  292,876.71 subsidy of the Social Insurance
and granted under the state’s policies)                                                      Management Center

Non-operating income and expense other than the above                          3,931,544.43

Less: Amount of influence of income tax                                          613,129.46

Total                                                                          3,586,375.18                   --

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




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                                                                        Sino Great Wall Co., Ltd. The Third Quarterly Report 2017


II.Total Shareholders and Shares Held by Top Ten Shareholders at the End of the Reporting Period
1. About Total Common Shareholders, Total Preference Shareholders with the Voting Power Recovered
and the Shares Held by Top Ten Common Shareholders
                                                                                                                         In shares
                                                                    Total preference shareholders
Total number of common                                              with the voting power
                                                           73,285                                                                0
shareholders at the period-end                                      recovered at the end of the
                                                                    reporting period(if any)

                                             Shares held by the top 10 shareholders

                                                                              Amount of                Pledging or freezing
                      Properties of        Share                            tradable shares
Shareholder name                                           Quantity                               Status of the
                       shareholder      proportion %                       with Conditional                           Quantity
                                                                                                     shares
                                                                                 held
                    Domestic Natural
Chen Lue                                       34.36%       583,454,556         581,722,696         Pledge            455,260,594
                    person

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

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

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

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

                    Domestic Non-
Huatai Securities
                    State-owned legal           1.75%        29,792,520                       0
 Co., Ltd.
                    person

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

China               Domestic Non-
International       State-owned legal           1.18%        19,955,594                       0
Finance Co., Ltd. person

Bank of China-
Fortis Income       Other                       0.98%        16,558,178                       0
Growth Securities

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                                                                             Sino Great Wall Co., Ltd. The Third Quarterly Report 2017


Investment Fund

                   Domestic Non-
Qinghai Heyi
                   State-owned legal                0.79%          13,357,084                      0         Pledge                13,357,000
Mining Co.,Ltd/
                   person

                                     Shares held by the Top 10 Shareholders of Non-restricted 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           in
STYLE-SUCCESS LIMITED                                                                 92,970,910                                   92,970,910
                                                                                                       domestic
                                                                                                       exchange

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

                                                                                                       RMB       Common
Huatai Securities Co., Ltd.                                                           29,792,520                                   29,792,520
                                                                                                       shares

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

China International Finance Co.,                                                                       RMB       Common
                                                                                      19,955,594                                   19,955,594
Ltd.                                                                                                   shares

Bank of China-Fortis Income                                                                           RMB       Common
                                                                                      16,558,178                                   16,558,178
Growth Securities Investment Fund                                                                      shares

                                                                                                       RMB       Common
Qinghai Heyi Mining Co.,Ltd/                                                          13,357,084                                   13,357,084
                                                                                                       shares

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

                                                                                                       RMB       Common
Cai Yu                                                                                 9,000,000                                    9,000,000
                                                                                                       shares

National Trust Co., Ltd.-No.2                                                                         RMB       Common
                                                                                       8,270,000                                    8,270,000
Jinhui Capital Trust Plan                                                                              shares

Explanation on associated               Mr. Chen Lue and Ms. He Feiyan are the unanimous persons; Union Holding Co., Ltd. and Ri
relationship or concerted action of     ch Crown Investment Co., Ltd.and the other shareholders of circulation do not know whether

the above shareholders                  there is any related relationship.

Note to the top 10 common
stockholders involved in margin
                                        Nil
financing & securities lending (If
any)

Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a


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                                                            Sino Great Wall Co., Ltd. The Third Quarterly Report 2017


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

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

□ Applicable √Not applicable




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                                                                        Sino Great Wall Co., Ltd. The Third Quarterly Report 2017




III. Significant Events

I. Major changes of main accounting statement items and financial indicators in the reporting period, as
well as reasons for the changes
√ Applicable □ Not applicable


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

                                                                                     Mainly due to the smooth progress of large
                                                                                     projects and the increase in project income
 Account receivable          5,072,793,851.05        3,725,170,208.31     36.18%
                                                                                     and the not-yet-collection money during the
                                                                                     reporting period
                                                                                     Mainly due to the project guarantee money
 Other receivable            1,338,430,519.20         651,012,132.91     105.59%     and the increase in the come-and-go
                                                                                     money.
                                                                                     Mainly      due   to    the    office   buildings
   Non-current
                                  5,338,999.34         13,462,942.89      -60.34%    decoration and the            reduction in    the
 asset due in 1 year
                                                                                     amortization of overseas guarantees.
                                                                                     Mainly due to the decrease in VAT pending
   Other       current
                                 14,823,673.44         35,450,194.47      -58.18%    deduction     special    invoice    during    the
 asset
                                                                                     reporting period.
                                                                                     Mainly      due    to   the    construction   of
   Construction in                                                                   intelligent housing, ecological housing R &
                                  4,963,483.90                           100.00%
 progress                                                                            D center and production base and the tower
                                                                                     crane installation of overseas project.
 Long-germ                                                                           Mainly      due   to    the    office   buildings
 expenses     to    be            4,105,972.90           7,003,035.93     -41.37%    decoration and the            reduction in    the
 amortized                                                                           amortization of overseas guarantees.
                                                                                     Mainly due to the increase of PPP project
 Other non-current
                              670,010,987.00          116,902,258.30     473.14%     companies and the increase of investment
 asset
                                                                                     of the company.
   Short-term bank                                                                   Mainly due to the increase in bank
                             3,106,375,280.98        1,966,058,357.59     58.00%
 loan facilities                                                                     borrowings in the current period.
 Non-current
                                                                                     Mainly due to the reclassification of
 liability due in 1           905,589,321.63          175,958,998.04     414.66%
                                                                                     long-term borrowings due within one year.
 year
                                                                                     mainly due to the new construction project
 Specialized reserve             99,340,271.80         65,687,868.14      51.23%
                                                                                     to carry out the safety reserve.
                                                                                     Mainly due to the increase in profits of the
 Minority interests              69,030,645.96         52,534,755.10      31.40%     non-wholly owned subsidiary-Sino Great
                                                                                     Wall Construction.
                                                                                     Mainly due to the increase in the revenue
 Business income             4,685,207,526.32        3,233,597,223.19     44.89%



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                                                                Sino Great Wall Co., Ltd. The Third Quarterly Report 2017


                                                                             caused by the increase of domestic PPP
                                                                             projects and general contracting projects.
                                                                             Mainly due to the increase in revenue
 Business cost           3,657,257,165.36    2,452,777,768.51      49.11%
                                                                             during the reporting period.
 Business tax and                                                            Mainly due to the business tax replaced by
                             2,386,723.94        9,029,321.48     -73.57%
 surcharge                                                                   VAT.
   Financial                                                                 Mainly due to the increase in bank
                          174,158,944.01      106,481,367.68       63.56%
 expenses                                                                    borrowings.
 Net    cash     flow                                                        Mainly due to the smooth progress of the
 generated        by      -785,444,322.16   -1,686,338,825.47      53.42%    project business and the good money
 business operation,                                                         collection.
 Net    cash     flow                                                        Mainly due to the increase of PPP project
 generated        by      -606,720,595.95     -255,555,028.00   -137.41%     companies and the increase of investment
 investment                                                                  of the company.
 Influence         of
 exchange        rate
                                                                             Mainly due to changes in foreign currency
 alternation on cash        -8,154,660.05        1,569,103.98   -619.70%
                                                                             against the RMB exchange rate.
 and             cash
 equivalents




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

√ 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
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.

                                                                                  Description of the website for
Overview of material matters                  Date of disclosing                       disclosing provisional
                                                                                           announcements


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                                                                            Sino Great Wall Co., Ltd. The Third Quarterly Report 2017


Announcement on the Official Document
of Approval of Non-public Share Issuance                                    July 24,2017                   http://www.cninfo.com.cn
by CSRC.


III.The commitments of the Company and its shareholders holding over 5% of the Company’s total shares
in the report year of extending to the report year from previous year.

√ Applicable □ Not applicable

   Commitment        Commitment      Type                         Contents                           Time of     Period of   Fulfillment
                         maker                                                                        making     commitme
                                                                                                    commitment       nt

Commitment on             No                                           No                                           No           No
share reform

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

Commitments in      Chen Lue, He Share lock Shares acquired by purchases of assets through March                 36 months Strict perfo
assets              Feiyan                   issuing shares: “I will not transfer the new 19,2015                           rming
reorganization                               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 after the
                                             transaction has been completed, the lock-up
                                             periods of my shares of Victor Onward
                                             Holdings are automatically prolonged for 6
                                             months. (The above-mentioned issue price will
                                             be calculated according to the price after the
                                             adjustment of ex-dividend, etc. if ex-dividend
                                             behaviors     of    the    company,       including


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                                                       Sino Great Wall Co., Ltd. The Third Quarterly Report 2017


                      distribution    of     dividends,       giving   bonus,
                      conversion of share capital, rationing shares,
                      and    etc.,    were        happened       during    the
                      above-mentioned periods. If the restructuring
                      transaction    were        investigated    by    judicial
                      authorities or China Securities Regulatory
                      Commission due to false record, misleading
                      statement or major omission of the information
                      provided or disclosed, I will not transfer my
                      shares of the company before the conclusion of
                      the case has been made clear. After the
                      above-mentioned lock-up periods, I will sell or
                      transfer the new shares of the company acquired
                      from this restructuring following relevant
                      regulations of China Securities Regulatory
                      commission and Shenzhen Stock Exchange.

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

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

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                                                     Sino Great Wall Co., Ltd. The Third Quarterly Report 2017


                      Meanwhile, I will actively urge Sino Great Wall
                      to establish complete inner control system and
                      funds      management       system    within     lawful
                      authority.

Chen Lue   Cash       In view of the fact that the houses rented by March              Long term Strict perfo
           comp       Sino Great Wall and it’s son subsidiaries, 19,2015                          rming
           ensation   subsidiaries,    haven’t    rental registration,      I
                      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.

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

Chen Lue   Cash       1. Up to October 13th,2014, the related March                    Long term Strict perfo
           comp       expenses of the litigation and arbitration cases, 19,2015                    rming
           ensation   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, exceed the
                      amount of liabilities which recognized in the
                      “Audit Report” made for Sino Great Wall by
                      Ruihua CPA (Special Ordinary Partnership) on
                      the basis of the audit base day of July 31st,
                      2014, I promise to bear the balance by cash



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                                                  Sino Great Wall Co., Ltd. The Third Quarterly Report 2017


                      unconditionally   so   as    to   guarantee     the
                      parent-subsidiaries of Sino Great Wall won’t
                      suffer any loss. 2. This commitment letter is
                      irrevocable.

Chen Lue   Cash       1. On condition that ownership defect exists in March         Long term Strict perfo
           comp       the lease of house property of parent-subsidiary 19,2015                  rming
           ensation   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
                      compensate by cash for parent-subsidiary
                      companies of Sino Great Wall’s losses which
                      are caused by operation and finance due to the
                      above-mentioned matters. 2. I undertake 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.

Chen Lue   Cash       “In condition that parent-subsidiary companies March         Long term Strict perfo
           comp       of Sino Great Wall or its son subsidiary haven’t 19,2015                 rming
           ensation   paid social security or housing fund for staff
                      according to law, which resulted in any losses to
                      Sino Great Wall , including the competent
                      authorities’ requirement for Sino Great Wall or
                      its subsidiary to make supplementary payment,
                      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.



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                                                        Sino Great Wall Co., Ltd. The Third Quarterly Report 2017


Chen Lue   Cash       “At present, Suzhou Lvbang has possessed one March                 Long term Strict perfo
           comp       state-own land use right, of which the land 19,2015                             rming
           ensation   certificate   is      Suzhou        Guo         Yong(2014)
                      No.Y2014086”, locates in Danan Village,
                      Dadian Town, Yongqiao District, Suzhou City
                      with 32,966 square meters of area and the
                      purpose for industry. Suzhou Lvbang possesses
                      its own factory with 9,843.87 square meters of
                      area above-mentioned, which is the building
                      reserved on the former selling land. Suzhou
                      Lvbang is carrying out refurnishing and
                      reconstruction for this factory and has acquired
                      “License of Construction Land Planning ”with
                      No.2014-08-001           approved     and       issued   by
                      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 Wand Suzhou
                      Lvbang for this matter. ”

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


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                                                        Sino Great Wall Co., Ltd. The Third Quarterly Report 2017


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

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

               Indep      1. This reorganization is planned to place in September3 Long term Strict perfo
               enden ce, asset. At present, complete separation has 0,2015                            rming
               competitio existed between me or other enterprises under
               n in the   my possession (if any) and the listed company
Chen           same       in staff, asset, finance, institution and business
 Lue     ,He   industry   of Sino Great Wall. Independence exists in both
 Feiyan                   staff, asset, finance, institution and business and
                          no confusion exists. 2. I undertake, after this
                          reorganization,    to     ensure     the   continued
                          complete separation between me or other
                          enterprises under my possession(if any) and the

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                                        Sino Great Wall Co., Ltd. The Third Quarterly Report 2017


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


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                                                   Sino Great Wall Co., Ltd. The Third Quarterly Report 2017


                      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 "

             Relate   “1.Before this reorganization, the fairness and March         Long term Strict perfo
             transa   reasonableness of pricing and the legitimacy 19,2015                       rming
             ctions   and effectiveness of decision-making procedure
                      exist in the transaction(if any) between me or
Chen
                      the enterprise under my possession(if any) and
Lue    ,He
                      Sino Great Wall which is planned to place asset
Feiyan
                      in,   no   related    transaction   with   obvious
                      unfairness exists ; 2.After this reorganization, I
                      or the enterprise under my possession will avoid
                      and reduce the related transaction with listed


                                           17
                                                     Sino Great Wall Co., Ltd. The Third Quarterly Report 2017


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

Union        Income    During the assets reorganization, the house March               Long term Strict perfo
Development disposal   property and land without property certificate in 19,2015                   rming
Group Co.,             the disposed assets within the plant area of
Ltd                    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   to
                       above-mentioned disposed assets which are
                       house property and land without property
                       certificate as well as regaining of plots planned
                       as schools, Union will return the benefits to
                       Victor Onward Holdings, in 10 working days
                       since the collection. The actual costs and fees
                       during the possession of the house property and


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                                                   Sino Great Wall Co., Ltd. The Third Quarterly Report 2017


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

Union        Cash       According to the Term 5.5.3 of Agreement on March            Long term Strict perfo
Development comp        Major Asset Replacement and Asset Purchase 19,2015                       rming
Group Co.,   ensation   Through Issuing Shares (hereinafter referred to
Ltd                     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’sconsent, the company or the third
                        party appointed by the company is in charge of
                        paying off debts or reaching agreement on the
                        solution with the creditor. When there are losses
                        caused by improper solutions of the company or
                        the third party appointed by the company, the
                        company or the third party appointed by the


                                          19
                                                                     Sino Great Wall Co., Ltd. The Third Quarterly Report 2017


                                     company will fully compensate for the caused
                                     losses of Victor Onward Holdings in 5 working
                                     days after receiving the notice. According to the
                                     Term 5.5.4 of Agreement, after the date of
                                     assets delivery, any compensations, obligations
                                     of payment and penalties caused by disposed
                                     assets as well as unsettled disputes in Victor
                                     Onward Holdings will be undertaken and
                                     solved by the company or the third party
                                     appointed by the company, and Victor Onward
                                     Holdings assumes no responsibility. When there
                                     are losses caused by it, the company or the third
                                     party appointed by the company will fully
                                     compensate for the caused losses of Victor
                                     Onward Holdings in 5 working days after
                                     receiving the notice. According to the Term
                                     5.6.1 of Agreement and based on the principle
                                     of “staff arrangement according to the assets”,
                                     the labor relations, social insurance relations
                                     including      pension,         medical     treatment,
                                     unemployment, working injury and maternity,
                                     and other liable welfare and salary of all the
                                     staff in Victor Onward Holdings. (including but
                                     not limited to on-post employees, employees
                                     awaiting job assignments, retired employees,
                                     retained    employees      with     suspend    salary,
                                     transferred        employees,      and      temporary
                                     employees, etc) will be transferred to the
                                     company or the third party appointed by the
                                     company. Compensations or related matters (if
                                     any) due to the termination of labor relationship
                                     in advance with Victor Onward Holdings, the
                                     company or the third party appointed by the
                                     company will be in charge of the payment. The
                                     company promises that for the losses caused by
                                     matters such as the above-mentioned debt
                                     transfers     of    disposed      assets,   personnel
                                     arrangement, unsettled disputes, potential debts,
                                     payment obligations and penalties, the company
                                     or the third party appointed by the company
                                     will fully compensate for the losses of Victor
                                     Onward Holdings due to the above-mentioned
                                     matters based on the Agreement in cash.

Commitments   All directors   Fill   1.Guarantee that interest will be transferred to July 7,2016 Long-term Strict


                                                          20
                                                                Sino Great Wall Co., Ltd. The Third Quarterly Report 2017


made upon   of the    returns   other units or individuals which are with                                     performing
issuance    company             compensation or without fair conditions, neither
                                other ways which are harmful to the Company’s
                                interest will be adopted;2.Guarantee restraint
                                conduction for the duty consuming behavior of
                                directors and senior managers;3.Guarantee that
                                no capital of the Company will be employed for
                                engaging in investment or consumption which
                                are         not       involved          with       duty
                                performance;4.Guarantee that the compensation
                                system formulated by the board of director or
                                Compensation and Assessment Committee is
                                linked with the exertion situation of the
                                Company’s return filling solution;5. Shall stock
                                incentive         mechanism      subsequently       be
                                introduced by the Company, the exertion
                                condition of the Company’s stock incentive
                                mechanism which is intended to be published is
                                guaranteed to be linked with the exertion
                                situation of the Company’s return filling
                                solution;6.When stock incentive mechanism is
                                intended to be carried out subsequently , I
                                promise, within the legal range, to prompt the
                                exertion condition of the Company’s stock
                                incentive mechanism which is intended to
                                publish is guaranteed to be linked with the
                                exertion situation of the Company’s return
                                filling solution;7. I promise the commitments
                                above will be fulfilled strictly, and guarantee
                                actual fulfillment for the Company’s return
                                filling solution. Shall any commitments be
                                violated or be refused to fulfill by me, I will
                                fulfill corresponding obligations of explanation
                                and apology according to relevant regulations
                                of Guidance on First Issue, Refinancing, Major
                                Asset Reorganization and Dilution for Return at
                                Sight   by        CSRC,   and    will    approve    the
                                supervision        measures      or     self-discipline
                                supervision measures made by CSRC, SZSE
                                and China Association for Public Companies.
                                Any losses occurred upon he Company or the
                                shareholders, I am willing to undertake the
                                responsibility for corresponding compensation
                                in accordance with laws.


                                                     21
                                                                         Sino Great Wall Co., Ltd. The Third Quarterly Report 2017


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

Equity incentive
                           No            No                         No                                         No           No
commitment

Other
commitments for
                           No            No                         No                                         No           No
medium and small
shareholders

Completed on
                     Yes
time(Y/N)

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


IV.Prediction of Business performance for 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




                                                               22
                                                                     Sino Great Wall Co., Ltd. The Third Quarterly Report 2017



V. Investment in securities
□ Applicable √Not applicable

No Securities investment in period
VI. Investment in derivatives
□ Applicable √Not applicable
There is no derivative investment during the report period.

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

√ Applicable □Not applicable
      Reception time              Way of reception           Types of visitors                      Basic index

                                                                                    The    interactive    relation     with    the
                                                                                    investors on Shenzhen Stock Exchange
                                                                                    platform    about     Sino       Great    Wall
      August 24,2017             Onsite investigation            Organization
                                                                                    International   Engineering        Co.,   Ltd:
                                                                                    Record     of   the   investors      relations
                                                                                    activities on August 24, 2017.


VIII. External guarantee get out of line

□ Applicable √Not applicable
The Company has no external guarantee get out of the line in the Period

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

□ Applicable √Not applicable
There are no controlling shareholder and its related parties occupying non-business capital of the listed company
in Period


X. Implementation of the social Responsibility of taking targeted measures to alleviate poverty in light of
local Conditions.
     In The report third quarter, the company neither carried out the work of taking targeted measures to alleviate
poverty in light of local conditions nor has such a plan.




                                                            23
                                                                    Sino Great Wall Co., Ltd. The Third Quarterly Report 2017



                                                IV. Financial Statement



I. Financial statement

1. Consolidated balance sheet


Prepared by:Sino Great Wall Co., Ltd.

                                                                                                                    In RMB

                     Items                           At the end of term                        Beginning of term

Current asset:

Cash and bank balances                                             1,470,453,794.78                       1,340,815,821.83

             Settlement provision

Outgoing call loan

Financial assets at fair value through profit
or loss

     Derivative financial assets

Notes receivable                                                     755,016,594.76                       1,074,390,642.58

 Account receivable                                                5,072,793,851.05                       3,725,170,208.31

Advance payments                                                     311,054,365.54                         319,206,798.63

 Insurance receivable

Reinsurance receivable

Provisions of Reinsurance contracts
receivable

  Interest receivable

  Dividend receivable

 Other account receivable                                          1,338,430,519.20                         651,012,132.91

Securities purchased under agreements to
resell

 Inventories                                                         426,746,726.92                         332,904,930.36

Held-for-sale assets

Current portion of non-current assets                                     5,338,999.34                       13,462,942.89

  Other current asset                                                 14,823,673.44                          35,450,194.47

Total of current assets                                            9,394,658,525.03                       7,492,413,671.98

Non-current assets:

Loans and advances


                                                           24
                                                    Sino Great Wall Co., Ltd. The Third Quarterly Report 2017


Available-for-sale financial assets

Held-to-maturity investments

 Long-term receivable

 Long term share equity investment

 Property investment

  Fixed assets                                       140,014,185.65                         128,483,747.74

  Construction in progress                              4,963,483.90

Engineering material

Fixed assets pending for disposal

Productive biological assets

 Gas & petrol

 Intangible assets                                   126,422,718.30                         106,203,443.55

Research and Development Expenditures

 Goodwill                                             58,874,144.79                          58,874,144.79

Long-term prepaid expenses                              4,105,972.90                           7,003,035.93

Deferred income tax                                   96,945,997.70                          76,298,659.34

 Other non-current asset                             670,010,987.00                         116,902,258.30

Total of non-current assets                         1,101,337,490.24                        493,765,289.65

Total of assets                                    10,495,996,015.27                      7,986,178,961.63

Current liabilities

Short-term bank loan facilities                     3,106,375,280.98                      1,966,058,357.59

Borrowings from central bank

Deposits and placements from other
financial institutions

Placement from banks and other financial
institution

Financial liabilities at fair value through
profit and loss

     Derivative financial liabilities

Notes payable                                        648,811,805.70                         706,883,375.54

  Account payable                                   1,564,449,490.21                      1,313,948,990.25

Advances from customers                              586,284,852.68                         573,784,072.58

Securities sold under agreement to
repurchase

Fees and commissions payable



                                              25
                                                   Sino Great Wall Co., Ltd. The Third Quarterly Report 2017


Payroll payable                                      18,970,536.66                          18,797,546.69

Taxes and surcharges payable                        399,043,104.19                         313,483,669.78

 Interest payable                                     7,836,284.79                            6,428,493.55

 Dividend payable

  Other payable                                     222,947,622.83                         222,414,975.01

Reinsurance amounts payable

Provision of insurance contract

Securities brokering

Securities underwriting

Held-for-sale liabilities

Current portion of non-current liabilities          905,589,321.63                         175,958,998.04

Other current liability                                                                     30,382,980.72

Total of current liability                        7,460,308,299.67                       5,328,141,459.75

Non-current liabilities:

Long-term bank loan facilities                      794,966,196.84                         786,858,878.82

 Bond payable                                       100,000,000.00

  Including:preferred stock

Perpetual capital securities

  Long-term payable

Long-term employee benefits payable

Grants payable

Provisions                                            2,878,343.68                          13,225,861.70

     Deferred income

Deferred tax liabilities                             26,034,659.53                          27,469,888.77

Other non-current liabilities

Total non-current liabilities                       923,879,200.05                         827,554,629.29

Total of liability                                8,384,187,499.72                       6,155,696,089.04

Equity

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

      Other equity instrument

  Including:preferred stock

Perpetual capital securities

Reserves                                          -1,303,571,952.68                      -1,299,349,701.74

Less: treasury shares



                                             26
                                                                         Sino Great Wall Co., Ltd. The Third Quarterly Report 2017


Other comprehensive income

Specialized reserve                                                        99,340,271.80                          65,687,868.14

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

General risk reserve

Retained earnings                                                       1,464,370,098.24                       1,228,970,498.86

Equity contributable to parent company                                  2,042,777,869.59                       1,777,948,117.49

Minority interests                                                         69,030,645.96                          52,534,755.10

Total equity                                                            2,111,808,515.55                       1,830,482,872.59

Total liabilities and equity                                           10,495,996,015.27                       7,986,178,961.63


Legal Representative: Chen Lue        Person in charge of accounting:Tang Xianyong       Accounting Dept Leader: Tang Xianyong


2.Parent Company Balance Sheet

                                                                                                                           In RMB

                       Items                                Year-end balance                      Year-beginning balance

Current asset:

Cash and bank balances                                                    254,380,567.75                         168,691,344.34

Financial assets at fair value through profit
or loss

Derivative financial assets

Notes receivable

 Account receivable                                                                                                     6,346.00

Advance payments                                                               2,264,166.67                         1,000,000.00

  Interest receivable

  Dividend receivable

Other receivable                                                        3,485,998,928.81                       1,672,200,041.98

  Inventories

Held-for-sale assets

Current portion of non-current assets

Other current asset                                                            2,002,457.11                         1,404,744.25

Total of current assets                                                 3,744,646,120.34                       1,843,302,476.57

Non-current assets:

Available-for-sale financial assets

Held-to-maturity investments

 Long-term receivable


                                                                 27
                                                   Sino Great Wall Co., Ltd. The Third Quarterly Report 2017


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

 Property investment

  Fixed assets                                           62,020.61                                4,121.50

  Construction in progress

Engineering material

Fixed assets pending for disposal

Productive biological assets

 Gas & petrol

Intangible assets

Research and Development Expenditures

 Goodwill

Long-term prepaid expenses                              210,356.03                             336,569.60

Deferred income tax

 Other non-current asset                            447,495,100.00                          48,960,000.00

Total of non-current assets                        3,629,219,013.30                      3,225,752,227.76

Total of assets                                    7,373,865,133.64                      5,069,054,704.33

Current liabilities

Short-term bank loan facilities                    2,278,070,000.00                        980,000,000.00

Financial liabilities at fair value through
profit and loss
  Derivative financial liabilities

Notes payable                                       230,000,000.00                          68,000,000.00

  Account payable

Advances from customers

Payroll payable                                        1,080,682.90                            701,792.11

 Tax payable                                         96,950,915.73                          97,085,106.00

 Interest payable                                      6,589,467.36                           5,150,639.24

 Dividend payable

  Other payable                                     176,081,637.95                          13,252,762.06

Held-for-sale liabilities

Current portion of non-current liabilities          700,000,000.00

Other current liability

Total of current liability                         3,488,772,703.94                      1,164,190,299.41

Non-current liabilities:




                                              28
                                                            Sino Great Wall Co., Ltd. The Third Quarterly Report 2017


Long-term bank loan facilities                                  756,500,000.00                      700,000,000.00

 Bond payable                                                   100,000,000.00

Including:preferred stock

Perpetual capital securities

  Long-term payable

  Long-term employee benefits payable

     Grants payable

Provisions

Deferred income

Deferred income tax

  Other non-current liabilities

Total of Non-current liabilities                                856,500,000.00                      700,000,000.00

Total of liability                                          4,345,272,703.94                      1,864,190,299.41

Equity

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

Other equity instrument

Including:preferred stock

Perpetual capital securities

Reserves                                                    1,237,956,472.37                      1,237,956,472.37

Less: treasury shares

Other comprehensive income

Specialized reserve

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

Retained earnings                                                66,081,659.33                      242,353,634.55

Total equity                                                3,028,592,429.70                      3,204,864,404.92

Total liabilities and equity                                7,373,865,133.64                      5,069,054,704.33


3.Consolidated Income statement of the Report period



                                                                                                           In RMB

                     Items              Amount in this period                      Amount in last period

I. Revenue                                              1,660,125,169.52                          1,280,022,467.68

Including: business revenue                             1,660,125,169.52                          1,280,022,467.68

Interest income



                                                   29
                                                   Sino Great Wall Co., Ltd. The Third Quarterly Report 2017


Premiums earned

Fees and commissions income

II. Total operating cost                       1,490,656,582.15                          1,155,267,384.61

Including: Cost of sales                       1,337,658,549.60                            992,050,637.18

Interest expense

Fees and commissions expense

Cash surrender amount

Net expenses of claim settlement

  Net provisions for insurance contract
reserves

Policy dividend expenses

Reinsurance expenses

Business taxes and surcharges                       444,136.65                                    2,669.37

  Selling expenses                                 5,186,848.41                               9,107,275.25

Administrative expense                           81,317,075.77                              83,946,453.38

Financial expenses                               34,347,134.42                              36,456,693.08

     Impairment loss on assets                   31,702,837.30                              33,703,656.35

Add: Gain from fair-value
changes(“-“for loss)

Investment income(“-“for loss)                                                               198,394.59

Including: investment income from
associates and joint ventures

Gain on foreign exchange(“-“for loss)

         Other income

III. Operating profit(“-”for loss)          169,468,587.37                             124,953,477.66

Add:Non-operating income                            263,830.31                                    2,853.16

Including:Gains from disposal of

non-current assets

     Less:Non business expenses                    415,828.12                                 136,668.00

Incl:Loss from disposal of non-current

assets

IV. Profit before tax(“-“for loss)            169,316,589.56                             124,819,662.82

Less: Income tax expense                         24,874,714.61                              24,244,602.31

V. Net profit (“-“for net loss)               144,441,874.95                             100,575,060.51




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                                                     Sino Great Wall Co., Ltd. The Third Quarterly Report 2017


Net profit attributable to the owners of
                                                  141,854,355.89                             100,866,553.43
parent company

Minority interests                                  2,587,519.06                                 -291,492.92

VI. Other comprehensive income after
tax

Net of profit of other comprehensive
income attributable to owners of the
parent company

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

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

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

(II)
Other comprehensive income that will b
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

Net

after-tax of other comprehensive incom

e attributable to Minority shareholders’

equity

VII. Total comprehensive income                   144,441,874.95                             100,575,060.51

Total comprehensive income                        141,854,355.89                             100,866,553.43


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                                                                           Sino Great Wall Co., Ltd. The Third Quarterly Report 2017


attributable to the owner of the parent
company

 Total comprehensive income
                                                                          2,587,519.06                                   -291,492.92
attributable minority shareholders

VIII. Earnings per share

(I)Basic earnings per share                                                     0.0835                                        0.0592

 (II)Diluted earnings per share                                                   0.0835                                        0.0592


Legal Representative: Chen Lue          Person in charge of accounting:Tang Xianyong       Accounting Dept Leader: Tang Xianyong


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

                                                                                                                                In RMB

                   Items                               Amount in this period                         Amount in last period

I.Revenue                                                                       61,297.29                                     57,684.88

  Less:Business cost                                                                0.00                                          0.00

Business tax and surcharge                                                      34,225.74                                          0.00

  Selling expenses                                                             371,946.50                                          0.00

 Administrative expense                                                  10,651,768.00                                 14,974,573.46

    Financial expenses                                                   15,358,373.68                                 26,748,737.27

    Impairment loss on assets

Add: Gain from fair-value
changes(“-“for loss)

Investment income(“-“for loss)                                                                                             198,394.59

Including: investment income from
associates and joint ventures

          Other income
II. Operational profit(“-”for loss)                                 -26,355,016.63                                -41,467,231.26

Add:Non-operating income                                                                                                           1.00

Including:Gains from disposal of
non-current assets

Less:Non-operating expenses

Incl:Loss from disposal of non-current
assets

III. Profit before tax(“-“for loss)                                   -26,355,016.63                                -41,467,230.26

Less: Income tax expense

IV. Net profit (“-“for net loss)                                      -26,355,016.63                                -41,467,230.26



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                                                                    Sino Great Wall Co., Ltd. The Third Quarterly Report 2017


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                                    -26,355,016.63                             -41,467,230.26

VII. Earnings per share:

(I)Basic earnings per share

 (II)Diluted earnings per share


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


                                                                                                         In RMB

                    Items                       Amount in this period                      Amount in last period

I.Revenue                                                       4,685,207,526.32                          3,233,597,223.19

Including:Operating income                                     4,685,207,526.32                          3,233,597,223.19



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                                                    Sino Great Wall Co., Ltd. The Third Quarterly Report 2017


         Interest income

          Insurance gained

Commission charge and commission
income

II. Total operating cost                        4,184,391,872.60                          2,895,825,957.45

Including:Operating cost                       3,657,257,165.36                          2,452,777,768.51

Interest expense

Commission chare and commission

expense

Insurance discharge payment

               Net claim amount paid

Insurance policy dividend paid

Insurance policy dividend paid

  Reinsurance expenses

Business tax and surcharge                          2,386,723.94                               9,029,321.48

  Selling expenses                                23,281,434.80                              18,366,539.49

Administrative expense                           206,493,833.92                             196,940,207.67

Financial expenses                               174,158,944.01                             106,481,367.68

Asset impairment loss                            120,813,770.57                             112,230,752.62

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

Investment gain(“-”for loss)                                                                245,263.08

Incl: investment gains from affiliates

Gains from currency exchange(“-”for
loss)

              Other income
III. Operational profit(“-”for loss)         500,815,653.72                             338,016,528.82

Add:Non-business income                            4,708,455.09                             29,136,122.16

Incl:Gains from disposal of non-current

assets

     Less:Non business expenses                     508,950.45                                2,892,580.00

Incl:Loss from disposal of non-current

assets

IV.Total profit(“-”for loss)                   505,015,158.36                             364,260,070.98



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                                                          Sino Great Wall Co., Ltd. The Third Quarterly Report 2017


 Less:Income tax expenses                              81,101,852.86                              62,107,362.14

V. Net profit(“-”for net loss)                     423,913,305.50                             302,152,708.84

Net profit attributable to the owners of
                                                       410,460,805.92                             303,165,970.06
parent company

  Minority shareholders’ equity                        13,452,499.58                               -1,013,261.22

VI. Net after-tax of Other
comprehensive income

Net                                   after-tax
of other comprehensive income attribut
able to owners of the parent company.

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

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

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

(II)
Other comprehensive income that will b
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

Net

after-tax of other comprehensive incom

e attributable to Minority shareholders’



                                                  35
                                                               Sino Great Wall Co., Ltd. The Third Quarterly Report 2017



equity

VII. Total comprehensive income                             423,913,305.50                             302,152,708.84

Total comprehensive income
attributable to the owner of the parent                     410,460,805.92                             303,165,970.06
company

 Total comprehensive income
                                                             13,452,499.58                               -1,013,261.22
attributable minority shareholders

VIII. Earnings per share

(I)Basic earnings per share                                         0.2417                                     0.1785

 (II)Diluted earnings per share                                       0.2417                                     0.1785


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

                                                                                                                 In RMB

                    Items                  Amount in this period                      Amount in last period

I.Revenue                                                          172,315.30                                 173,625.22

Less:Business cost                                                  1,482.50                                       0.00

Business tax and surcharge                                         278,916.40

  Selling expenses                                                 371,946.50

Administrative expense                                       21,228,860.07                              28,760,269.39

Financial expenses                                           52,725,808.24                              46,699,345.93

Asset impairment loss                                              -57,423.85                                  -1,530.70

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

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

Incl: investment gains from affiliates

         Other income
II. Operational profit                                      -74,377,274.56                              -75,086,064.81

Add:Non-business income                                                                                29,071,296.00

Incl:Gains from disposal of non-current
assets

Less:Non business expenses                                                                               2,755,912.00

Incl:Loss from disposal of non-current
assets

III.Total profit                                            -74,377,274.56                              -48,770,680.81

Less:Income tax expenses

IV. Net profit                                              -74,377,274.56                              -48,770,680.81


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                                                                  Sino Great Wall Co., Ltd. The Third Quarterly Report 2017


V. Net after-tax of Other comprehensive
 income

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

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

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

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

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

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

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

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

5.Translation differences in currency fin
ancial statements

6.Other

VI.Total comprehensive income                                   -74,377,274.56                             -48,770,680.81

VII.Earnings per share

(I)Basic earnings per share

(II)Diluted earnings per share


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

                                                                                                                   In RMB

                    Items                    Amount in this period                       Amount in last period

I.Cash flows from operating activities

Cash received from sales of goods or
                                                              3,177,253,209.09                          1,566,047,153.44
rending of services


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                                                     Sino Great Wall Co., Ltd. The Third Quarterly Report 2017


  Net increase of customer deposits
and capital kept for brother company

Net increase of loans from central bank

Net increase of inter-bank loans from
other financial bodies

Cash received against original insurance
contract

Net cash received from reinsurance
business

Net increase of client deposit and
investment

Net increase of the financial assets that
are measured at fair value and whose
movement is counted to the current gain
and loss

Cash received as interest, processing fee
and commission

Net increase of inter-bank fund received

Net increase of repurchasing business

   Tax returned                                    12,758,357.03

Other cash received from business
                                                 3,245,486,770.66                          1,459,745,529.77
operation

   Sub-total of cash inflow                      6,435,498,336.78                          3,025,792,683.21

Cash paid for purchasing of
                                                 2,823,791,162.98                          2,052,349,873.63
merchandise and services

Net increase of client trade and advance

Net increase of savings n central bank
and brother company

Cash paid for original contract claim

 Cash paid for interest, processing fee
and commission

 Cash paid for policy dividend

Cash paid to staffs or paid for staffs            284,756,611.90                             201,703,377.78

 Taxes paid                                       175,356,391.05                              90,940,394.34

Other cash paid for business activities          3,937,038,493.01                          2,367,137,862.93

Sub-total of cash outflow from business
                                                 7,220,942,658.94                          4,712,131,508.68
  activities



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                                                      Sino Great Wall Co., Ltd. The Third Quarterly Report 2017


Cash flow generated by business
                                                  -785,444,322.16                           -1,686,338,825.47
operation, net

II.Cash flow generated by investing

Cash received from investment
                                                                                               12,800,000.00
retrieving

Cash received as investment gains                                                                9,348,224.12

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

Net cash received from disposal of
subsidiaries or other operational units

Other investment-related cash received

Sub-total of cash inflow due to
                                                                                               22,148,224.12
investment activities

Cash paid for construction of fixed
     assets, intangible assets and other            45,779,721.11                              26,012,757.28
     long-term assets

Cash paid as investment                            517,381,774.84                              57,000,000.00

Net increase of loan against pledge

Net cash received from subsidiaries and
                                                    43,559,100.00                             119,000,000.00
other operational units

Other cash paid for investment
                                                                                               75,690,494.84
activities

Sub-total of cash outflow due to
                                                   606,720,595.95                             277,703,252.12
investment activities

Net cash flow generated by investment             -606,720,595.95                            -255,555,028.00

III.Cash flow generated by financing

Cash received as investment                                                                    47,040,000.00

Incl: Cash received as investment from
minor shareholders

Cash received as loans                            4,026,537,500.00                          2,801,778,902.00

Cash received from bond placing

Other financing –related ash received                                                         97,929,280.00

Sub-total of cash inflow from financing
                                                  4,026,537,500.00                          2,946,748,182.00
activities

Cash to repay debts                               1,758,114,122.78                            524,886,086.94

Cash paid as dividend, profit, or                  242,393,681.30                              71,424,769.43



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                                                                Sino Great Wall Co., Ltd. The Third Quarterly Report 2017


interests

Incl: Dividend and profit paid by
subsidiaries to minor shareholders

Other cash paid for financing activities                     409,470,833.33                             524,616,889.26

Sub-total of cash outflow due to
                                                           2,409,978,637.41                           1,120,927,745.63
financing activities

Net cash flow generated by financing                       1,616,558,862.59                           1,825,820,436.37

IV. Influence of exchange rate
                                                               -8,154,660.05                               1,569,103.98
alternation on cash and cash equivalents

V.Net increase of cash and cash
                                                             216,239,284.43                            -114,504,313.12
equivalents

Add: balance of cash and cash
                                                             943,705,322.41                             721,711,757.85
equivalents at the beginning of term

VI ..Balance of cash and cash
                                                           1,159,944,606.84                             607,207,444.73
equivalents at the end of term


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

                                                                                                                  In RMB

                  Items                    Amount in this period                       Amount in last period

I.Cash flows from operating activities

Cash received from sales of goods or
                                                                   128,210.00                                  203,303.00
rending of services

Tax returned

Other cash received from business
                                                           2,603,508,330.39                             642,263,080.59
operation

Sub-total of cash inflow                                   2,603,636,540.39                             642,466,383.59

Cash paid for purchasing of
merchandise and services

Cash paid to staffs or paid for staffs                             380,672.60                                  265,325.38

Taxes paid                                                         366,621.64                              1,492,300.15

Other cash paid for business activities                    4,060,602,342.91                           2,197,137,918.45

Sub-total of cash outflow from business
                                                           4,061,349,637.15                           2,198,895,543.98
  activities

Cash flow generated by business
                                                           -1,457,713,096.76                          -1,556,429,160.39
operation, net

II.Cash flow generated by investing

Cash received from investment


                                                      40
                                                      Sino Great Wall Co., Ltd. The Third Quarterly Report 2017


retrieving

Cash received as investment gains                                                                 198,394.59

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
                                                                                                  198,394.59
investment activities

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

     Cash paid as investment                       398,535,100.00                              57,000,000.00

Net cash received from subsidiaries and
                                                      5,000,000.00                            145,960,000.00
other operational units

Other cash paid for investment
                                                                                                    39,897.60
activities

Sub-total of cash outflow due to
                                                   403,600,540.00                             202,999,897.60
investment activities

Net cash flow generated by investment             -403,600,540.00                            -202,801,503.01

III.Cash flow generated by financing

  Cash received as investment

     Cash received as loans                       3,131,370,000.00                          1,810,000,000.00

 Cash received from bond placing

Other financing –related ash received

 Sub-total of cash inflow from
                                                  3,131,370,000.00                          1,810,000,000.00
financing activities

  Cash to repay debts                              980,000,000.00                              80,000,000.00

Cash paid as dividend, profit, or
                                                   204,306,306.50                              40,889,904.92
interests

Other cash paid for financing activities                60,833.33

 Sub-total of cash outflow due to
                                                  1,184,367,139.83                            120,889,904.92
financing activities

Net cash flow generated by financing              1,947,002,860.17                          1,689,110,095.08

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



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                                               Sino Great Wall Co., Ltd. The Third Quarterly Report 2017


V.Net increase of cash and cash
                                             85,689,223.41                              -70,120,568.32
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
                                            254,380,567.75                             169,024,682.99
equivalents at the end of term

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




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