AUDITORS' REPORT
PCPAR [2017] No. ZB11076
To all shareholders of Sino Great Wall Co., Ltd.:
We have audited the attached financial statements of Sino Great Wall Co., Ltd. (hereinafter
referred to as “the Company”), which comprise the consolidated balance sheet and the
company's balance sheet as at December 31, 2016, the consolidated income statement and the
company's income statement, the consolidated statement of cash flows and the company's
statement of cash flows, the consolidated statement of changes in shareholders’ equity and the
company's statement of changes in shareholders' equity and notes to the financial statements for
the year then ended.
I. Management's Responsibility for the Financial Statements
Preparation and fair presentation of financial statements is the responsibility of the
company management. This responsibility includes: (1) preparing the financial
statements in accordance with Accounting Standards for Business Enterprises to achieve
fair presentation of the financial statements; (2) designing, implementing and
maintaining internal control that is necessary to enable the financial statements that are
free from material misstatement, whether due to fraud or error.
II. Auditor's Responsibilities
Our responsibility is to express an opinion on these financial statements based on our
audit. We conducted our audit in accordance with Auditing Standards for Certified Public
Accountants in China. Those standards require that we comply with professional and
ethical requirements of Chinese certified public accountants, and plan and perform the
audit to obtain reasonable assurance whether the financial statements are free from
material misstatements.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor’s
judgments, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, we consider
the internal control relevant to the preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness of the internal
control. An audit also includes evaluating the appropriateness of accounting policies used
and the reasonableness of accounting estimates made by the management, as well as
evaluating the overall presentation of the financial statements.
Auditors' Report Page 1
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion.
III. Opinion
In our opinion, the financial statements of the Company are prepared in accordance with
Accounting Standards for Business Enterprises and present fairly, in all material respects,
the consolidated financial position and the Company's financial position as at December
31, 2016 and the consolidated operating results and the Company's operating results and
cash flows for the year then ended.
BDO CHINA Shu Lun Pan Certified Public Accountant of China:
Certified Public Accountants LLP
Certified Public Accountant of China:
Shanghai, China April 26, 2017
This auditors’ report and the accompanying notes to the financial statements are English translation of the Chinese
auditors’ report. In case of doubt as to the presentation of these documents, the Chinese version shall prevail.
Auditors' Report Page 2
神州长城股份有限公司 Sino Great Wall Co., Ltd.
合并资产负债表 Consolidated Balance Sheet
2016 年 12 月 31 日 December 31, 2016
（除特别注明外，金额单位均为人民币元） (Monetary units are expressed in RMB unless otherwise stated)
期末余额Balance as at 年初余额 Balance as at
资 产 Assets 附注五 Note 5
December 31, 2016 January 1, 2016
流动资产： Current assets:
货币资金 Monetary funds （一） 5.1 1,340,815,821.83 695,384,561.31
结算备付金 Balances with clearing companies
拆出资金 Loans to banks and other financial institutions
以公允价值计量且其变动计入当期损益的金融资产 Financial assets measured at fair value through
（二）5.2 1,102,961.04
current profit or loss
衍生金融资产 Derivative financial assets
应收票据 Notes receivable （三） 5.3 1,074,390,642.58 220,448,747.94
应收账款 Accounts receivable （四） 5.4 3,725,170,208.31 2,352,808,087.33
预付款项 Advances to suppliers （五） 5.5 319,206,798.63 77,707,568.38
应收保费 Premium receivable
应收分保账款 Reinsurance accounts receivable
应收分保合同准备金 Reinsurance contract reserves receivable
应收利息 Interest receivable
应收股利 Dividends receivable
其他应收款 Other receivables （六） 5.6 651,012,132.91 239,952,886.11
买入返售金融资产 Financial assets purchased under resale agreements
存货 Inventories （七） 5.7 332,904,930.36 168,133,668.91
划分为持有待售的资产 Assets classified as held for sale
一年内到期的非流动资产 Non-current assets maturing within one year （八） 5.8 13,462,942.89 15,717,270.60
其他流动资产 Other current assets （九） 5.9 35,450,194.47 14,138,411.87
流动资产合计 TOTAL CURRENT ASSETS 7,492,413,671.98 3,785,394,163.49
非流动资产： Non-current assets:
发放贷款及垫款 Disbursement of advances and loans
可供出售金融资产 Available-for-sale financial assets
持有至到期投资 Held-to-maturity investments
长期应收款 Long-term receivables
长期股权投资 Long-term equity investments
投资性房地产 Investment property
固定资产 Fixed assets （十） 5.10 128,483,747.74 43,846,215.63
在建工程 Construction in process （十一） 5.11 10,016,928.24
工程物资 Project materials
固定资产清理 Liquidation of fixed assets
生产性生物资产 Productive biological assets
油气资产 Oil and gas assets
无形资产 Intangible assets （十二） 5.12 106,203,443.55 9,267,746.33
开发支出 Development expenses
商誉 Goodwill （十三） 5.13 58,874,144.79 6,724,316.91
长期待摊费用 Long-term deferred expenses （十四） 5.14 7,003,035.94 18,909,785.69
递延所得税资产 Deferred income tax assets （十五） 5.15 76,298,659.34 47,950,278.07
其他非流动资产 Other non-current assets （十六） 5.16 116,902,258.30 95,353,390.28
非流动资产合计 TOTAL NON-CURRENT ASSETS 493,765,289.66 232,068,661.15
资产总计 TOTAL ASSETS 7,986,178,961.63 4,017,462,824.63
后附财务报表附注为财务报表的组成部分。 The accompanying notes to the financial statements are integral parts of the financial statements.
企业法定代表人: Legal Representative of Enterprise:
主管会计工作负责人: Accounting Principal:
会计机构负责人: Head of the Accounting Department:
Financial statements Page 1
神州长城股份有限公司 Sino Great Wall Co., Ltd.
合并资产负债表（续）Consolidated Balance Sheet (Continued)
2016 年 12 月 31 日 December 31, 2016
（除特别注明外，金额单位均为人民币元） (Monetary units are expressed in RMB unless otherwise stated)
期末余额Balance as at 年初余额 Balance as at
负债和所有者权益 Liability and Owners' Equity 附注五 Note 5
December 31, 2016 January 1, 2016
流动负债： Current liabilities:
短期借款 Short-term borrowings （十七） 5.17 1,966,058,357.59 225,408,496.07
向中央银行借款 Borrowings from central bank
吸收存款及同业存放 Absorption of deposits and interbank deposit
拆入资金 Loans from banks and other financial institutions
以公允价值计量且其变动计入当期损益的金融负债 Financial liabilities measured at fair value through current profit or loss
衍生金融负债 Derivative financial liabilities
应付票据 Notes payable （十八）5.18 706,883,375.54 143,410,167.17
应付账款 Accounts payable （十九）5.19 1,313,948,990.25 1,332,619,954.77
预收款项 Advances from customers （二十） 5.20 573,784,072.58 64,963,842.60
卖出回购金融资产款 Financial assets sold under repurchase agreements
应付手续费及佣金 Handling charges and commissions payable
应付职工薪酬 Employee compensation payable （二十一） 5.21 18,797,546.69 12,669,619.20
应交税费 Taxes and surcharges payable （二十二） 5.22 313,483,669.78 284,826,290.11
应付利息 Interest payable （二十三） 5.23 6,428,493.55 527,969.26
应付股利 Dividends payable
其他应付款 Other payables （二十四）5.24 222,414,975.01 635,200,976.60
应付分保账款 Reinsurance accounts payable
保险合同准备金 Reserves for insurance contracts
代理买卖证券款 Receivings from vicariously traded securities
代理承销证券款 Receivings from vicariously sold securities
划分为持有待售的负债 Liabilities classified as held for sale
一年内到期的非流动负债 Non-current liabilities maturing within one year （二十五）5.25 175,958,998.04 7,135,752.00
其他流动负债 Other current liabilities （二十六）5.26 30,382,980.72
流动负债合计 TOTAL CURRENT LIABILITIES 5,328,141,459.75 2,706,763,067.78
非流动负债： Non-current liabilities:
长期借款 Long-term borrowings （二十七） 5.27 786,858,878.82 30,140,649.14
应付债券 Bonds payable
其中：优先股 Including: Preferred stock
永续债 Perpetual debts
长期应付款 Long-term payables
长期应付职工薪酬 Long-term employee compensation payable
专项应付款 Special payables
预计负债 Estimated liabilities （二十八）5.28 13,225,861.70
递延收益 Deferred income
递延所得税负债 Deferred income tax liabilities （十五） 5.15 27,469,888.77 15,444.16
其他非流动负债 Other non-current liabilities
非流动负债合计 TOTAL NON-CURRENT LIABILITIES 827,554,629.29 30,156,093.30
负债合计 TOTAL LIABILITIES 6,155,696,089.04 2,736,919,161.08
所有者权益： Total owners' equity:
实收资本（或股本） Paid-in capital (or share capital) （二十九） 5.29 1,698,245,011.00 446,906,582.00
其他权益工具 Other equity instruments
其中：优先股 Including: Preferred stock
永续债 Perpetual debts
资本公积 Capital reserve （三十） 5.30 -1,299,349,701.74 -50,367,862.22
减：库存股 Less: Treasury stock
其他综合收益 Other comprehensive income
专项储备 Special reserve （三十一）5.31 65,687,868.14 46,014,941.54
盈余公积 Surplus reserve （三十二） 5.32 84,394,441.23 84,394,441.23
一般风险准备 General risk reserves
未分配利润 Undistributed profits （三十三） 5.33 1,228,970,498.86 755,308,636.19
归属于母公司所有者权益合计 Total equity attributable to owners of the parent company 1,777,948,117.49 1,282,256,738.74
少数股东权益 Minority equity 52,534,755.10 -1,713,075.19
所有者权益合计 TOTAL OWNERS' EQUITY 1,830,482,872.59 1,280,543,663.55
负债和所有者权益总计 TOTAL LIABILITIES AND OWNERS' EQUITY 7,986,178,961.63 4,017,462,824.63
后附财务报表附注为财务报表的组成部分。 The accompanying notes to the financial statements are integral parts of the financial statements.
企业法定代表人: Legal Representative of Enterprise:
主管会计工作负责人: Accounting Principal:
会计机构负责人: Head of the Accounting Department:
Financial statements Page 2
神州长城股份有限公司 Sino Great Wall Co., Ltd.
资产负债表 Balance Sheet
2016 年 12 月 31 日 December 31, 2016
（除特别注明外，金额单位均为人民币元） (Monetary units are expressed in RMB unless otherwise stated)
期末余额Balance as at 年初余额 Balance as at
资 产 Assets 附注十五 Note 15
December 31, 2016 January 1, 2016
流动资产：Current assets:
货币资金 Monetary funds 168,691,344.34 239,145,251.31
以公允价值计量且其变动计入当期 损益的金融资产 Financial assets measured at
fair value through current profit or loss
衍生金融资产 Derivative financial assets
应收票据 Notes receivable
应收账款 Accounts receivable （一） 15.1 6,346.00 29,083.30
预付款项 Advances to suppliers 1,000,000.00
应收利息 Interest receivable
应收股利 Dividends receivable
其他应收款 Other receivables （二）15.2 1,672,200,041.98
存货 Inventories
划分为持有待售的资产 Assets classified as held for sale
一年内到期的非流动资产 Non-current assets maturing within one year
其他流动资产 Other current assets 1,404,744.25
流动资产合计 TOTAL CURRENT ASSETS 1,843,302,476.57 239,174,334.61
非流动资产： Non-current assets:
可供出售金融资产 Available-for-sale financial assets
持有至到期投资 Held-to-maturity investments
长期应收款 Long-term receivables
长期股权投资 Long-term equity investments （三） 15.3 3,176,451,536.66 3,079,451,536.66
投资性房地产 Investment property
固定资产 Fixed assets 4,121.50
在建工程 Construction in process
工程物资 Project materials
固定资产清理 Liquidation of fixed assets
生产性生物资产 Productive biological assets
油气资产 Oil and gas assets
无形资产 Intangible assets
开发支出 Development expenses
商誉 Goodwill
长期待摊费用 Long-term deferred expenses 336,569.60
递延所得税资产 Deferred income tax assets 382.68
其他非流动资产 Other non-current assets 48,960,000.00
非流动资产合计 TOTAL NON-CURRENT ASSETS 3,225,752,227.76 3,079,451,919.34
资产总计 TOTAL ASSETS 5,069,054,704.33 3,318,626,253.95
后附财务报表附注为财务报表的组成部分。 The accompanying notes to the financial statements are integral parts of the financial statements.
企业法定代表人: Legal Representative of Enterprise:
主管会计工作负责人: Accounting Principal:
会计机构负责人: Head of the Accounting Department:
Financial statements Page 3
神州长城股份有限公司 Sino Great Wall Co., Ltd.
资产负债表（续）Balance Sheet (Continued)
2016 年 12 月 31 日 December 31, 2016
（除特别注明外，金额单位均为人民币元） (Monetary units are expressed in RMB unless otherwise stated)
期末余额Balance as at 年初余额 Balance as at
负债和所有者权益 Liability and Owners' Equity
December 31, 2016 January 1, 2016
流动负债： Current liabilities:
短期借款 Short-term borrowings 980,000,000.00
以公允价值计量且其变动计入当期损益的金融负债 Financial liabilities measured at
fair value through current profit or loss
衍生金融负债 Derivative financial liabilities
应付票据 Notes payable 68,000,000.00
应付账款 Accounts payable
预收款项 Advances from customers
应付职工薪酬 Employee compensation payable 701,792.11
应交税费 Taxes and surcharges payable 97,085,106.00 98,150,372.30
应付利息 Interest payable 5,150,639.24
应付股利 Dividends payable
其他应付款 Other payables 13,252,762.06 803,339.56
划分为持有待售的负债 Liabilities classified as held for sale
一年内到期的非流动负债 Non-current liabilities maturing within one year
其他流动负债 Other current liabilities
流动负债合计 TOTAL CURRENT LIABILITIES 1,164,190,299.41 98,953,711.86
非流动负债： Non-current liabilities:
长期借款 Long-term borrowings 700,000,000.00
应付债券 Bonds payable
其中：优先股 Including: Preferred stock
永续债 Perpetual debts
长期应付款 Long-term payables
长期应付职工薪酬 Long-term employee compensation payable
专项应付款 Special payables
预计负债 Estimated liabilities
递延收益 Deferred income
递延所得税负债 Deferred income tax liabilities
其他非流动负债 Other non-current liabilities
非流动负债合计 TOTAL NON-CURRENT LIABILITIES 700,000,000.00
负债合计 TOTAL LIABILITIES 1,864,190,299.41 98,953,711.86
所有者权益： Total owners' equity:
实收资本（或股本） Paid-in capital (or share capital) 1,698,245,011.00 446,906,582.00
其他权益工具 Other equity instruments
其中：优先股 Including: Preferred stock
永续债 Perpetual debts
资本公积 Capital reserve 1,237,956,472.37 2,489,294,901.37
减：库存股 Less: Treasury stock
其他综合收益 Other comprehensive income
专项储备 Special reserve
盈余公积 Surplus reserve 26,309,287.00 26,309,287.00
未分配利润 Undistributed profits 242,353,634.55 257,161,771.72
所有者权益合计 TOTAL OWNERS' EQUITY 3,204,864,404.92 3,219,672,542.09
负债和所有者权益总计 TOTAL LIABILITIES AND OWNERS' EQUITY 5,069,054,704.33 3,318,626,253.95
后附财务报表附注为财务报表的组成部分。 The accompanying notes to the financial statements are integral parts of the financial statements.
企业法定代表人: Legal Representative of Enterprise:
主管会计工作负责人: Accounting Principal:
会计机构负责人: Head of the Accounting Department:
Financial statements Page 4
神州长城股份有限公司 Sino Great Wall Co., Ltd.
合并利润表 Consolidated Income Statement
2016年度 Year of 2016
（除特别注明外，金额单位均为人民币元） (Monetary units are expressed in RMB unless otherwise stated)
项 目 Item 附注五 Note 5 本期发生额 Year 2016 上期发生额 Year 2015
一、营业总收入 Total operating income 4,664,999,117.17 4,010,358,999.58
其中：营业收入Including: Operating income （三十四）5.34 4,664,999,117.17 4,010,358,999.58
利息收入 Interest income
已赚保费 Earned premiums
手续费及佣金收入 Income from handling charges and commissions
二、营业总成本 Total operating cost 4,110,727,814.01 3,578,964,860.85
其中：营业成本 Including: Operating cost （三十四）5.34 3,459,377,744.66 3,165,027,185.66
利息支出 Interest expenses
手续费及佣金支出 Handling charges and commissions expenses
退保金 Surrender value
赔付支出净额 Net claims paid
提取保险合同准备金净额 Net amount withdrawn for insurance contract reserves
保单红利支出 Policy dividend payment
分保费用 Reinsurance costs
税金及附加 Taxes and surcharges （三十五）5.35 9,651,529.46 79,485,669.04
销售费用 Selling expenses （三十六）5.36 30,318,688.27 13,686,172.10
管理费用 General and administrative expenses （三十七） 5.37 313,930,733.56 154,562,327.86
财务费用 Financial expenses （三十八）5.38 127,437,227.95 54,866,402.02
资产减值损失 Losses from assets impairment （三十九） 5.39 170,011,890.11 111,337,104.17
加：公允价值变动收益（损失以“-”号填列） Plus: Gains from the changes in fair value ("-" for losses) （四十） 5.40 42,553.26
投资收益（损失以“-”号填列） Investment income ("-" for losses) （四十一） 5.41 2,226,350.97
其中：对联营企业和合营企业的投资收益 Including: Income from investment in associates and joint ventures
汇兑收益（损失以“-”号填列） Gains from foreign exchange ("-" for losses)
三、营业利润（亏损以“-”号填列）Operating profits ("-" for losses) 556,497,654.12 431,436,691.98
加：营业外收入 Plus: Non-operating income （四十二） 5.42 26,427,042.86 380,733.08
其中：非流动资产处置利得 Including: Gains from disposal of non-current assets 4,455.00
减： 营业外支出 Less: Non-operating expenses （四十三） 5.43 21,586,940.28 1,025,395.57
其中：非流动资产处置损失 Including: Losses from disposal of non-current assets 564,833.40 85,567.15
四、利润总额（亏损总额以“-”号填列） Total profits ("-" for total losses) 561,337,756.70 430,792,029.49
减：所得税费用 Less: Income tax expenses （四十四） 5.44 89,244,861.75 84,688,888.81
五、净利润（净亏损以“-”号填列） Net profit ("-" for net losses) 472,092,894.95 346,103,140.68
其中：被合并方在合并前实现的净利润 Including: Net profit achieved by the combined party before the combination
归属于母公司所有者的净利润 Net profit attributable to owners of the parent company 473,661,862.67 346,648,651.48
少数股东损益 Minority interest income -1,568,967.72 -545,510.80
六、其他综合收益的税后净额 Other comprehensive income, net of tax 85.60
归属母公司所有者的其他综合收益的税后净额 Other comprehensive income, net of tax attributable to owners of the parent company 85.60
（一）以后不能重分类进损益的其他综合收益 Other comprehensive income that cannot be reclassified into profit or loss later
1. 重新计量设定受益计划净负债或净资产的变动 Changes arising from the re-measurement of net liabilities or net assets of defined benefit
plan
2. 权益法下在被投资单位不能重分类进损益的其他综合收益中享有的份额 Share in other comprehensive income of the investee that
cannot be reclassified into profit or loss under the equity method
（二）以后将重分类进损益的其他综合收益 Other comprehensive income that will be reclassified into profit or loss later 85.60
1. 权益法下在被投资单位以后将重分类进损益的其他综合收益中享有的份额 Share in other comprehensive income of the investee that will
be reclassified into profit or loss under the equity method later
2. 可供出售金融资产公允价值变动损益 Profit or loss of change in faire value of available-for-sale financial assets
3. 持有至到期投资重分类为可供出售金融资产损益 Profit or loss arising from reclassification of held-to-maturity investments as financial
assets available for sale
4. 现金流量套期损益的有效部分 Effective portion of profit or loss from cash flow hedging
5. 外币财务报表折算差额 Translation differences of foreign currency financial statements 85.60
6. 其他 Others
归属于少数股东的其他综合收益的税后净额 Other comprehensive income, net of tax attributable to minority shareholders
七、综合收益总额 Total comprehensive income 472,092,894.95 346,103,226.28
归属于母公司所有者的综合收益总额 Total comprehensive income attributable to owners of the parent company 473,661,862.67 346,648,737.08
归属于少数股东的综合收益总额 Total comprehensive income attributable to minority shareholders -1,568,967.72 -545,510.80
八、每股收益： Earnings per share:
（一）基本每股收益（元/股）Basic earnings per share (RMB/share) 0.28 0.40
（二）稀释每股收益（元/股）Diluted earnings per share (RMB/share) 0.28 0.40
后附财务报表附注为财务报表的组成部分。The accompanying notes to the financial statements are integral parts of the financial statements.
企业法定代表人: Legal Representative of Enterprise:
主管会计工作负责人: Accounting Principal:
会计机构负责人: Head of the Accounting Department:
Financial statements Page 5
神州长城股份有限公司 Sino Great Wall Co., Ltd.
利润表 Income Statement
2016年度 Year of 2016
（除特别注明外，金额单位均为人民币元） (Monetary units are expressed in RMB unless otherwise stated)
项 目 Item 附注十五 Note 15 本期发生额 Year 2016 上期发生额 Year 2015
一、营业收入 Operating income （五） 15.5 238,048.64 2,318,061.00
减：营业成本 Less: Operating costs （五） 15.5 237,620.18
税金及附加 Taxes and surcharges 192,135.56 153,652.28
销售费用 Selling expenses
管理费用 General and administrative expenses 34,816,749.95 8,954,347.86
财务费用（收益以“-”号填列） Financial expenses (“-” for income) 5,966,974.50 3,370,704.26
资产减值损失 Losses from assets impairment 781,524.61 -13,038.09
加：公允价值变动净收益（损失以“-”号填列） Plus: Net gains from the changes in
-
fair value ("-" for losses)
投资收益（损失以“-”号填列） Investment income ("-" for losses) （四） 15.4 396,197.49 383,969,705.11
其中:对联营和合营企业的投资收益 Including: Income from investment in associates
-
and joint ventures
二、营业利润（亏损以“-”号填列） Operating profits ("-" for losses) -41,123,138.49 373,584,479.62
加：营业外收入 Plus: Non-operating income 26,315,384.00 73,450,480.94
其中：非流动资产处置利得 Including: Gains from disposal of non-current assets
减： 营业外支出 Less: Non-operating expenses
其中：非流动资产处置损失 Including: Losses from disposal of non-current assets
三、利润总额（亏损总额以“-”号填列） Total profits ("-" for total losses) -14,807,754.49 447,034,960.56
减：所得税费用 Less: Income tax expenses 382.68 93,708,631.85
四、净利润（净亏损以“-”号填列） Net profit ("-" for net losses) -14,808,137.17 353,326,328.72
五、其他综合收益的税后净额 Other comprehensive income, net of tax 4,398,234.00
（一）以后不能重分类进损益的其他综合收益 Other comprehensive income that
cannot be reclassified into profit or loss later
1. 重新计量设定受益计划净负债或净资产的变动 Changes arising from the re-
measurement of net liabilities or net assets of defined benefit plan
2. 权益法下在被投资单位不能重分类进损益的其他综合收益中享有的份额 Share in
other comprehensive income of the investee that cannot be reclassified into profit or loss
under the equity method
（二）以后将重分类进损益的其他综合收益 Other comprehensive income that will be
4,398,234.00
reclassified into profit or loss later
1. 权益法下在被投资单位以后将重分类进损益的其他综合收益中享有的份额 Share
in other comprehensive income of the investee that will be reclassified into profit or loss
under the equity method later
2. 可供出售金融资产公允价值变动损益 Profit or loss of change in faire value of
available-for-sale financial assets
3. 持有至到期投资重分类为可供出售金融资产损益 Profit or loss arising from
reclassification of held-to-maturity investments as financial assets available for sale
4. 现金流量套期损益的有效部分 Effective portion of profit or loss from cash flow
hedging
5. 外币财务报表折算差额 Translation differences of foreign currency financial
4,398,234.00
statements
6. 其他 Others
六、综合收益总额 Total comprehensive income -14,808,137.17 357,724,562.72
七、每股收益： Earnings per share:
（一）基本每股收益（元/股）Basic earnings per share (RMB/share) -0.01 0.17
（二）稀释每股收益（元/股）Diluted earnings per share (RMB/share) -0.01 0.17
后附财务报表附注为财务报表的组成部分。The accompanying notes to the financial statements are integral parts of the financial statements.
企业法定代表人: Legal Representative of Enterprise:
主管会计工作负责人: Accounting Principal:
会计机构负责人: Head of the Accounting Department:
Financial statements Page 6
神州长城股份有限公司 Sino Great Wall Co., Ltd.
合并现金流量表 Consolidated Statement of Cash Flows
2016年度 Year of 2016
（除特别注明外，金额单位均为人民币元） (Monetary units are expressed in RMB unless otherwise stated)
项 目 Item 附注五 Note 5 本期发生额 Year 2016 上期发生额 Year 2015
一、经营活动产生的现金流量 CASH FLOWS FROM OPERATING ACTIVITIES
销售商品、提供劳务收到的现金 Cash received from sales of goods and rendering of services 2,793,118,697.02 2,882,512,458.95
客户存款和同业存放款项净增加额 Net increase in deposits from customers and due from banks and other financial
institutions
向中央银行借款净增加额 Net increase in borrowings from the central bank
向其他金融机构拆入资金净增加额 Net increase in loans from other financial institutions
收到原保险合同保费取得的现金 Cash received from receiving insurance premium of original insurance contract
收到再保险业务现金净额 Net cash received from reinsurance business
保户储金及投资款净增加额 Net increase in deposits and investments from policyholders
处置以公允价值计量且其变动计入当期损益的金融资产净增加额 Net increase received from disposal of financial assets
measured at fair value through current profit and loss
收取利息、手续费及佣金的现金 Cash received from interests, handling charges and commissions
拆入资金净增加额 Net increase in loans from banks and other financial institutions
回购业务资金净增加额 Net capital increase in repurchase business
收到的税费返还 Refunds of taxes and surcharges 6,342,293.39 250,556.49
收到其他与经营活动有关的现金 Cash received from other operating activities （四十五）5.45 1,818,662,633.63 1,374,677,443.26
经营活动现金流入小计 Sub-total of cash inflows from operating activities 4,618,123,624.04 4,257,440,458.70
购买商品、接受劳务支付的现金 Cash paid for goods purchased and services received 2,879,469,436.78 2,566,176,221.01
客户贷款及垫款净增加额 Net increase in customers' loans and advances
存放中央银行和同业款项净增加额 Net increase in deposits with central bank and with banks and other financial
institutions
支付原保险合同赔付款项的现金 Cash paid for original insurance contract claims
支付利息、手续费及佣金的现金 Cash paid for interests, handling charges and commissions
支付保单红利的现金 Cash paid for policy dividends
支付给职工以及为职工支付的现金 Cash payments to and on behalf of employees 345,233,924.96 194,602,987.57
支付的各项税费 Cash paid for taxes and surcharges 92,009,656.66 150,781,903.84
支付其他与经营活动有关的现金 Cash paid for other operating activities （四十五）5.45 2,989,286,419.58 1,637,930,603.36
经营活动现金流出小计 Sub-total of cash outflows from operating activities 6,305,999,437.98 4,549,491,715.78
经营活动产生的现金流量净额 NET CASH FLOWS FROM OPERATING ACTIVITIES -1,687,875,813.94 -292,051,257.08
二、投资活动产生的现金流量 CASH FLOWS FROM INVESTING ACTIVITIES
收回投资收到的现金 Cash received from disposal of investments 119,902,961.04 68.86
取得投资收益所收到的现金 Cash received from returns on investments 1,566,217.08 2,426.00
处置固定资产、无形资产和其他长期资产收回的现金净额 Net cash received from disposal of fixed assets, intangible
95,937.00
assets and other long-term assets
处置子公司及其他营业单位收到的现金净额 Net cash received from disposal of subsidiaries and other business units
收到其他与投资活动有关的现金 Cash received from other investing activities
投资活动现金流入小计 Sub-total of cash inflows from investment activities 121,565,115.12 2,494.86
购建固定资产、无形资产和其他长期资产支付的现金净额 Net cash paid for purchase and construction of fixed assets,
15,582,049.03 25,179,343.19
intangible assets and other long-term assets
投资支付的现金 Cash paid for investments 188,307,635.00
质押贷款净增加额 Net increase in pledge loans
取得子公司及其他营业单位支付的现金净额 Net cash paid to acquire subsidiaries and other business units 42,467,736.61 3,533,792.47
支付其他与投资活动有关的现金 Cash paid for other investing activities
投资活动现金流出小计 Sub-total of cash outflows from investing activities 246,357,420.64 28,713,135.66
投资活动产生的现金流量净额 NET CASH FLOWS FROM INVESTING ACTIVITIES -124,792,305.52 -28,710,640.80
三、筹资活动产生的现金流量 CASH FLOWS FROM FINANCING ACTIVITIES
吸收投资收到的现金 Cash received from absorption of investment 242,223,784.52
其中：子公司吸收少数股东投资收到的现金 Including: Cash received by subsidiaries from investments by minority
shareholders
取得借款收到的现金 Cash received from borrowings 3,352,564,898.49 783,614,556.72
发行债券收到的现金 Cash received from bonds issue
收到其他与筹资活动有关的现金 Cash received from other financing activities （四十五）5.45 175,355,000.00 779,900,000.00
筹资活动现金流入小计 Sub-total of cash inflows from financing activities 3,527,919,898.49 1,805,738,341.24
偿还债务支付的现金 Cash paid for debts repayments 676,386,220.35 737,683,498.86
分配股利、利润或偿付利息支付的现金 Cash paid for distribution of dividends and profits or payment of interests 116,576,063.38 33,711,743.66
其中：子公司支付给少数股东的股利、利润 Including: Dividends and profits paid to minority shareholders by
subsidiaries
支付其他与筹资活动有关的现金 Cash paid for other financing activities （四十五）5.45 555,780,295.84 375,281,700.88
筹资活动现金流出小计 Sub-total of cash outflows from financing activities 1,348,742,579.57 1,146,676,943.40
筹资活动产生的现金流量净额 NET CASH FLOWS FROM FINANCING ACTIVITIES 2,179,177,318.92 659,061,397.84
四、汇率变动对现金及现金等价物的影响 EFFECT OF FLUCTUATION IN EXCHANGE RATE ON CASH AND
-5,549,633.86 686,301.95
CASH EQUIVALENTS
五、现金及现金等价物净增加额 NET INCREASE IN CASH AND CASH EQUIVALENTS 360,959,565.60 338,985,801.91
加：期初现金及现金等价物余额 Plus: Beginning balance of cash and cash equivalents 582,745,756.81 243,759,954.90
六、期末现金及现金等价物余额 ENDING BALANCE OF CASH AND CASH EQUIVALENTS 943,705,322.41 582,745,756.81
后附财务报表附注为财务报表的组成部分。The accompanying notes to the financial statements are integral parts of the financial statements.
企业法定代表人: Legal Representative of Enterprise:
主管会计工作负责人: Accounting Principal:
会计机构负责人: Head of the Accounting Department:
Financial statements Page 7
神州长城股份有限公司 Sino Great Wall Co., Ltd.
现金流量表 Statement of Cash Flows
2016年度 Year of 2016
（除特别注明外，金额单位均为人民币元） (Monetary units are expressed in RMB unless otherwise stated)
项 目 Item 本期发生额 Year 2016 上期发生额 Year 2015
一、经营活动产生的现金流量： CASH FLOWS FROM OPERATING ACTIVITIES:
销售商品、提供劳务收到的现金 Cash received from sales of goods and rendering of services 266,133.00 2,246,511.00
收到的税费返还 Refunds of taxes and surcharges
收到其他与经营活动有关的现金 Cash received from other operating activities 822,670,967.58 99,238,423.81
经营活动现金流入小计 Sub-total of cash inflows from operating activities 822,937,100.58 101,484,934.81
购买商品、接受劳务支付的现金 Cash paid for goods purchased and services received
支付给职工以及为职工支付的现金 Cash payments to and on behalf of employees 7,388,478.01 1,026,970.10
支付的各项税费 Cash paid for taxes and surcharges 1,558,123.56 14,621,408.55
支付其他与经营活动有关的现金 Cash paid for other operating activities 2,332,567,169.66 95,712,355.22
经营活动现金流出小计 Sub-total of cash outflows from operating activities 2,341,513,771.23 111,360,733.87
经营活动产生的现金流量净额 NET CASH FLOWS FROM OPERATING ACTIVITIES -1,518,576,670.65 -9,875,799.06
二、投资活动产生的现金流量：CASH FLOWS FROM INVESTING ACTIVITIES:
收回投资收到的现金 Cash received from disposal of investments 107,000,000.00
取得投资收益收到的现金 Cash received from returns on investments 396,197.49
处置固定资产、无形资产和其他长期资产收回的现金净额 Net cash received from disposal of fixed
assets, intangible assets and other long-term assets
处置子公司及其他营业单位收到的现金净额 Net cash received from disposal of subsidiaries and other
business units
收到其他与投资活动有关的现金 Cash received from other investing activities 40,084.65
投资活动现金流入小计 Sub-total of cash inflows from investment activities 107,396,197.49 40,084.65
购建固定资产、无形资产和其他长期资产支付的现金 Cash paid for purchase and construction of fixed
assets, intangible assets and other long-term assets
投资支付的现金 Cash paid for investments 155,960,000.00
取得子公司及其他营业单位支付的现金净额 Net cash paid to acquire subsidiaries and other business
97,000,000.00
units
支付其他与投资活动有关的现金 Cash paid for other investing activities
投资活动现金流出小计 Sub-total of cash outflows from investing activities 252,960,000.00
投资活动产生的现金流量净额 NET CASH FLOWS FROM INVESTING ACTIVITIES -145,563,802.51 40,084.65
三、筹资活动产生的现金流量： CASH FLOWS FROM FINANCING ACTIVITIES:
吸收投资收到的现金 Cash received from absorption of investment 240,499,988.72
取得借款收到的现金 Cash received from borrowings
发行债券收到的现金 Cash received from bonds issue 1,810,000,000.00
收到其他与筹资活动有关的现金 Cash received from other financing activities 12,500,000.00
筹资活动现金流入小计 Sub-total of cash inflows from financing activities 1,822,500,000.00 240,499,988.72
偿还债务支付的现金 Cash paid for debts repayments 130,000,000.00
分配股利、利润或偿付利息支付的现金 Cash paid for distribution of dividends and profits or payment
74,013,433.81
of interests
支付其他与筹资活动有关的现金 Cash paid for other financing activities 24,800,000.00
筹资活动现金流出小计 Sub-total of cash outflows from financing activities 228,813,433.81
筹资活动产生的现金流量净额 NET CASH FLOWS FROM FINANCING ACTIVITIES 1,593,686,566.19 240,499,988.72
四、汇率变动对现金及现金等价物的影响 EFFECT OF FLUCTUATION IN EXCHANGE RATE
ON CASH AND CASH EQUIVALENTS
五、现金及现金等价物净增加额 NET INCREASE IN CASH AND CASH EQUIVALENTS -70,453,906.97 230,664,274.31
加：期初现金及现金等价物余额 Plus: Beginning balance of cash and cash equivalents 239,145,251.31 8,480,977.00
六、期末现金及现金等价物余额 ENDING BALANCE OF CASH AND CASH EQUIVALENTS 168,691,344.34 239,145,251.31
后附财务报表附注为财务报表的组成部分。The accompanying notes to the financial statements are integral parts of the financial statements.
企业法定代表人: Legal Representative of Enterprise:
主管会计工作负责人: Accounting Principal:
会计机构负责人: Head of the Accounting Department: Financial statements Page 8
神州长城股份有限公司 Sino Great Wall Co., Ltd.
合并所有者权益变动表 Consolidated Statement of Changes in Owners' Equity
2016年度 Year of 2016
（除特别注明外，金额单位均为人民币元） (Monetary units are expressed in RMB unless otherwise stated)
本期发生额 Year 2016
归属于母公司所有者权益 Equity attributable to owners of the parent company
项 目 Item 其他权益工具 Other equity instruments 少数股东权益 所有者权益合计 Total
实收资本(或股本) 一般风险准备
资本公积 Capital 减:库存股 Less: 其他综合收益 Other 专项储备 Special 盈余公积 未分配利润 Undistributed Minority equity owners' equity
Paid-in capital (or share General risk
优先股 Preferred 永续债 Perpetual reserves Treasury stock comprehensive income reserves Surplus reserves profits
capital) 其他 Others reserves
stock debts
一、上年年末余额 Balance at the end of the last year 446,906,582.00 -50,367,862.22 46,014,941.54 84,394,441.23 755,308,636.19 -1,713,075.19 1,280,543,663.55
加：会计政策变更 Plus: Adjustments for changes in accounting
policies
前期差错更正 Correction of accounting errors in prior periods
同一控制下企业合并 Business combination under common
control
其他 Others
二、本年年初余额 Balance at the beginning of the year 446,906,582.00 -50,367,862.22 46,014,941.54 84,394,441.23 755,308,636.19 -1,713,075.19 1,280,543,663.55
三、本期增减变动金额（减少以“-”号填列）
1,251,338,429.00 -1,248,981,839.52 19,672,926.60 473,661,862.67 54,247,830.29 549,939,209.05
Increases/decreases in the current period (“-” for decreases)
（一）综合收益总额 Total comprehensive income 473,661,862.67 -1,327,357.60 472,334,505.07
（二）所有者投入和减少资本 Capital contributed or reduced
1,251,338,429.00 2,356,589.48 55,575,187.89 1,309,270,206.37
by owners
1．股东投入的普通股 Common shares contributed by
1,251,338,429.00 1,251,338,429.00
shareholders
2．其他权益工具持有者投入资本 Capital contributed by the
holders of other equity instruments
2．股份支付计入所有者权益的金额 Amounts of share-based
payments recognized in owners' equity
3．其他 Others 2,356,589.48 55,575,187.89 57,931,777.37
（三）利润分配 Profit distribution
1．提取盈余公积 Withdrawal of surplus reserves
2．提取一般风险准备 Withdrawal of general risk reserves
3．对所有者（或股东）的分配 Profits distributed to owners
(or shareholders)
4．其他 Others
（四）所有者权益内部结转 Internal carry-forward of owners'
-1,251,338,429.00 -1,251,338,429.00
equity
1．资本公积转增资本（或股本） Conversion of capital
-1,251,338,429.00 -1,251,338,429.00
reserves into paid-in capital (or share capital)
2．盈余公积转增资本（或股本） Conversion of surplus
reserves into paid-in capital (or share capital)
3．盈余公积弥补亏损 Surplus reserves offsetting losses
4．其他 Others
（五）专项储备 Special reserves 19,672,926.60 19,672,926.60
1．本期提取 Amount withdrawn in the current period 56,095,547.05 56,095,547.05
2．本期使用 Amount used in the current period 36,422,620.45 36,422,620.45
（六）其他 Others
四、本期期末余额 Balance at the end of the current period 1,698,245,011.00 -1,299,349,701.74 65,687,868.14 84,394,441.23 1,228,970,498.86 52,534,755.10 1,830,482,872.60
后附财务报表附注为财务报表的组成部分。The accompanying notes to the financial statements are integral parts of the financial statements.
企业法定代表人: Legal Representative of Enterprise: 主管会计工作负责人: Accounting Principal: 会计机构负责人: Head of the Accounting Department:
Financial statements Page 9
神州长城股份有限公司 Sino Great Wall Co., Ltd.
合并所有者权益变动表（续） Consolidated Statement of Changes in Owners' Equity (Continued)
2016年度 Year of 2016
（除特别注明外，金额单位均为人民币元） (Monetary units are expressed in RMB unless otherwise stated)
上期发生额 Year 2015
归属于母公司所有者权益 Equity attributable to owners of the parent company
项 目 Item 其他权益工具 Other equity instruments 其他综合收益 少数股东权益 所有者权益合计 Total
实收资本(或股本) 减:库存股 一般风险准
资本公积 Capital Other 专项储备 Special 盈余公积 Surplus 未分配利润 Minority equity owners' equity
Paid-in capital (or 优先股 永续债 Perpetual Less: Treasury 备 General
其他 Others reserves comprehensive reserves reserves Undistributed profits
share capital) Preferred stock debts stock risk reserves
income
一、上年年末余额 Balance at the end of the last year 70,136,099.00 176,467,549.00 -85.60 21,813,200.10 49,347,406.23 443,707,019.71 761,471,188.44
加：会计政策变更 Plus: Adjustments for changes in accounting policies
前期差错更正 Correction of accounting errors in prior periods
同一控制下企业合并 Business combination under common control
其他 Others
二、本年年初余额 Balance at the beginning of the year 70,136,099.00 176,467,549.00 -85.60 21,813,200.10 49,347,406.23 443,707,019.71 761,471,188.44
三、本期增减变动金额（减少以“-”号填列） Increases/decreases in the current
376,770,483.00 -226,835,411.22 85.60 24,201,741.44 35,047,035.00 311,601,616.48 -1,713,075.19 519,072,475.11
period (“-” for decreases)
（一）综合收益总额 Total comprehensive income 85.60 346,648,651.48 -545,510.80 346,103,226.28
（二）所有者投入和减少资本 Capital contributed or reduced by owners 25,914,633.00 226,661,441.01 252,576,074.01
1．股东投入的普通股 Common shares contributed by shareholders 25,914,633.00 217,585,355.72 243,499,988.72
2．其他权益工具持有者投入资本 Capital contributed by the holders of other
equity instruments
2．股份支付计入所有者权益的金额 Amounts of share-based payments recognized
in owners' equity
3．其他 Others 9,076,085.29 9,076,085.29
（三）利润分配 Profit distribution 35,047,035.00 -35,047,035.00 -1,167,564.39 -1,167,564.39
1．提取盈余公积 Withdrawal of surplus reserves 35,047,035.00 -35,047,035.00
2．提取一般风险准备 Withdrawal of general risk reserves
3．对所有者（或股东）的分配 Profits distributed to owners (or shareholders)
4．其他 Others -1,167,564.39 -1,167,564.39
（四）所有者权益内部结转 Internal carry-forward of owners' equity
1．资本公积转增资本（或股本） Conversion of capital reserves into paid-in
capital (or share capital)
2．盈余公积转增资本（或股本） Conversion of surplus reserves into paid-in
capital (or share capital)
3．盈余公积弥补亏损 Surplus reserves offsetting losses
4．其他 Others
（五）专项储备 Special reserves 24,201,741.44 24,201,741.44
1．本期提取 Amount withdrawn in the current period 34,558,557.84 34,558,557.84
2．本期使用 Amount used in the current period -10,356,816.40 -10,356,816.40
（六）其他 Others 350,855,850.00 -453,496,852.23 -102,641,002.23
四、本期期末余额 Balance at the end of the current period 446,906,582.00 -50,367,862.22 46,014,941.54 84,394,441.23 755,308,636.19 -1,713,075.19 1,280,543,663.55
后附财务报表附注为财务报表的组成部分。The accompanying notes to the financial statements are integral parts of the financial statements.
企业法定代表人: Legal Representative of Enterprise: 主管会计工作负责人: Accounting Principal: 会计机构负责人: Head of the Accounting Department:
Financial statements Page 10
神州长城股份有限公司 Sino Great Wall Co., Ltd.
所有者权益变动表 Statement of Changes in Owners' Equity
2016年度 Year of 2016
（除特别注明外，金额单位均为人民币元） (Monetary units are expressed in RMB unless otherwise stated)
本期发生额 Year 2016
其他权益工具 Other equity instruments
项 目 Item 减：库存股
实收资本（或股本）Paid- 资本公积 Capital 其他综合收益 Other 专项储备 盈余公积 Surplus 未分配利润 所有者权益合计 Total
Less: Treasury
in capital (or share capital) 优先股 Preferred 永续债 Perpetual 其他 reserves comprehensive income Special reserves reserves Undistributed profits owners' equity
stock debts Others stock
一、上年年末余额 Balance at the end of the last year 446,906,582.00 2,489,294,901.37 26,309,287.00 257,161,771.72 3,219,672,542.09
加：会计政策变更 Plus: Adjustments for changes in accounting policies
前期差错更正 Correction of accounting errors in prior periods
其他 Others
二、本年年初余额 Balance at the beginning of the year 446,906,582.00 2,489,294,901.37 26,309,287.00 257,161,771.72 3,219,672,542.09
三、本期增减变动金额（减少以“-”号填列） Increases/decreases in the
1,251,338,429.00 -1,251,338,429.00 -14,808,137.17 -14,808,137.17
current period (“-” for decreases)
（一）综合收益总额 Total comprehensive income -14,808,137.17 -14,808,137.17
（二）所有者投入和减少资本 Capital contributed or reduced by
1,251,338,429.00 1,251,338,429.00
owners
1.股东投入的普通股 Common shares contributed by shareholders 1,251,338,429.00 1,251,338,429.00
2.其他权益工具持有者投入资本 Capital contributed by the holders of
other equity instruments
3.股份支付计入所有者权益的金额 Amounts of share-based payments
recognized in owners' equity
4.其他 Others
（三）利润分配 Profit distribution
1.提取盈余公积 Withdrawal of surplus reserves
2.对所有者（或股东）的分配 Profits distributed to owners (or
shareholders)
3.其他 Others
（四）所有者权益内部结转 Internal carry-forward of owners' equity -1,251,338,429.00 -1,251,338,429.00
1.资本公积转增资本（或股本） Conversion of capital reserves into
-1,251,338,429.00 -1,251,338,429.00
paid-in capital (or share capital)
2.盈余公积转增资本（或股本） Conversion of surplus reserves into
paid-in capital (or share capital)
3.盈余公积弥补亏损 Surplus reserves offsetting losses
4.其他 Others
（五）专项储备 Special reserves
1.本期提取 Amount withdrawn in the current period
2.本期使用 Amount used in the current period
（六）其他 Others
四、本期期末余额 Balance at the end of the current period 1,698,245,011.00 1,237,956,472.37 26,309,287.00 242,353,634.55 3,204,864,404.92
后附财务报表附注为财务报表的组成部分。The accompanying notes to the financial statements are integral parts of the financial statements.
企业法定代表人: Legal Representative of Enterprise: 主管会计工作负责人: Accounting Principal: 会计机构负责人: Head of the Accounting Department:
Financial statements Page 11
神州长城股份有限公司 Sino Great Wall Co., Ltd.
所有者权益变动表（续） Statement of Changes in Owners' Equity (Continued)
2016年度 Year of 2016
（除特别注明外，金额单位均为人民币元） (Monetary units are expressed in RMB unless otherwise stated)
上期发生额 Year 2015
其他权益工具 Other equity instruments
项 目 Item 实收资本（或股本） 减：库存股
资本公积 Capital 其他综合收益 Other 专项储备 盈余公积 Surplus 未分配利润 所有者权益合计 Total
Paid-in capital (or share 优先股 Preferred 永续债 Perpetual Less: Treasury
其他 Others reserves comprehensive income Special reserves reserves Undistributed profits owners' equity
capital) stock debts stock
一、上年年末余额 Balance at the end of the last year 169,142,356.00 31,606,598.00 -4,398,234.00 26,309,287.00 -96,164,557.00 126,495,450.00
加：会计政策变更 Plus: Adjustments for changes in accounting policies
前期差错更正 Correction of accounting errors in prior periods
其他 Others
二、本年年初余额 Balance at the beginning of the year 169,142,356.00 31,606,598.00 -4,398,234.00 26,309,287.00 -96,164,557.00 126,495,450.00
三、本期增减变动金额（减少以“-”号填列） Increases/decreases in the current
277,764,226.00 2,457,688,303.37 4,398,234.00 353,326,328.72 3,093,177,092.09
period (“-” for decreases)
（一）综合收益总额 Total comprehensive income 4,398,234.00 353,326,328.72 357,724,562.72
（二）所有者投入和减少资本 Capital contributed or reduced by owners 277,764,226.00 2,457,688,303.37 2,735,452,529.37
1.股东投入的普通股 Common shares contributed by shareholders 277,764,226.00 2,443,935,757.84 2,721,699,983.84
2.其他权益工具持有者投入资本 Capital contributed by the holders of other equity
instruments
3.股份支付计入所有者权益的金额 Amounts of share-based payments recognized
in owners' equity
4.其他 Others 13,752,545.53 13,752,545.53
（三）利润分配 Profit distribution
1.提取盈余公积 Withdrawal of surplus reserves
2.对所有者（或股东）的分配 Profits distributed to owners (or shareholders)
3.其他 Others
（四）所有者权益内部结转 Internal carry-forward of owners' equity
1.资本公积转增资本（或股本） Conversion of capital reserves into paid-in
capital (or share capital)
2.盈余公积转增资本（或股本） Conversion of surplus reserves into paid-in
capital (or share capital)
3.盈余公积弥补亏损 Surplus reserves offsetting losses
4.其他 Others
（五）专项储备 Special reserves
1.本期提取 Amount withdrawn in the current period
2.本期使用 Amount used in the current period
（六）其他 Others
四、本期期末余额 Balance at the end of the current period 446,906,582.00 2,489,294,901.37 26,309,287.00 257,161,771.72 3,219,672,542.09
后附财务报表附注为财务报表的组成部分。The accompanying notes to the financial statements are integral parts of the financial statements.
企业法定代表人: Legal Representative of Enterprise: 主管会计工作负责人: Accounting Principal: 会计机构负责人: Head of the Accounting Department:
Financial statements Page 12
SINO GREAT WALL CO., LTD.
AUDITORS' REPORT AND FINANCIAL STATEMENTS
(FOR THE YEAR ENDED DECEMBER 31, 2016)
Contents Page
1. Auditors' Report 1-2
2. Financial Statements
Consolidated Balance Sheet and the Company's Balance Sheet 1-4
Consolidated Income Statement and the Company's Income 5-6
Statement
Consolidated Statement of Cash Flows and the Company's Statement 7-8
of Cash Flows
Consolidated Statement of Changes in Owners' Equity and the 9-12
Company's Statement of Changes in Owners' Equity
Notes to the Financial Statements 1-70
SINO GREAT WALL CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
SINO GREAT WALL CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
(Amounts are expressed in RMB unless otherwise stated)
1. Company profile
1.1 Company overview
Sino Great Wall Co., Ltd. (hereinafter referred to as the "Company" or "Sino Great Wall") is
formerly known as Shenzhen Victor Onward Textile Industrial Company Limited which is
formerly known as Xinnan Printing and Dyeing Factory Co., Ltd. Established in 1980, Xinnan
Printing and Dyeing Factory Co., Ltd. is the first wholly foreign-owned enterprise in Shenzhen.
In April 1984, the Xinnan Printing and Dyeing Factory Co., Ltd. was changed into a foreign
joint venture and was renamed Shenzhen Victor Onward Printing and Dyeing Co., Ltd. On
November 19, 1991, approved by the Government of Shenzhen City, Shenzhen Victor Onward
Printing and Dyeing Co., Ltd. was restructured into a joint stock limited company and was
renamed Shenzhen Victor Onward Textile Industrial Company Limited.
Domestic listed RMB ordinary shares ("A" shares; stock code: 000018) and overseas-listed
foreign investment shares ("B" shares; stock code: 200018) issued by the Company were listed
for trading on the Shenzhen Stock Exchange in 1992.
On July 23, 2015, approved by the China Securities Regulatory Commission under the Official
Reply to Approving Shenzhen Victor Onward Textile Industrial Company Limited to Make Major
Assets Restructuring and Issue Shares to Chen Lve and Other Shareholders to Purchase Assets
and Raise Supporting Funds (Z.J.X.K. [2015] No.1774), the Company issued 251,849,593
shares to Chen Lve and other 16 shareholders to purchase 100% of equities of Sino Great Wall
International Engineering Co., Ltd. held by them and issued to them 25,914,633 non-public
offering shares, which raised funds of RMB 254,999,988.72.
As at September 24, 2015, equities of the listed company were changed to be registered in the
name of the Company. Both parties fully completed the transfer of equities and the relevant
formalities of industrial and commercial registration of changes, so the Company already owned
100% of equities in the listed company. Meanwhile, according to the Confirmation on Delivery
of Exchange-Out Assets and as at the date of delivery (namely July 31, 2015), all assets and
liabilities of the Company had been exchanged out. On September 24, 2015, Shenzhen Branch
of the China Securities Depository and Clearing Corporation Limited had completed the relevant
securities registration formalities for the above new shares.
On July 29, 2015, the listed company received the new registered capital of RMB 251,849,593
paid by all the shareholders of Sino Great Wall. Ruihua Certified Public Accountants issued the
Verification Report (R.H.Y.Z. [2015] No.48250011) on July 30, 2015. Registered capital after
the change was RMB 420,991,949 and share capital RMB 420,991,949. On December 4, 2015,
Shenzhen Victor Onward Textile Industrial Company Limited was renamed Sino Great Wall Co.,
Ltd.
At the Company's general meeting of shareholders held on May 6, 2016, the 2015 Plan of
Conversion of Capital Reserves into Share Capital was adopted. The detailed plan was: to
increase capital reserves to all the shareholders with 28 shares for 10 shares based on
446,906,582 shares in total as at December 31, 2015 and to increase 1,251,338,429 shares in
total. After the increase, total share capital of the Company was increased to 1,698,245,011
shares.
As at December 31, 2016, total share capital of the Company was 1,698,245,011 shares, in
which there were 1,434,441,780 circulating A shares and 263,803,231 circulating B shares. Chen
Lve who holds 582,944,556 A shares, accounting for 34.33% of the total share capital, is the
Company's controlling shareholder and actual controller.
Notes to the Financial Statements Page 1
SINO GREAT WALL CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
Registered address of the Company: No.26 Kuipeng Road, Baishi Gang, Kuichong Street,
Dapeng New District, Shenzhen. Legal representative: Chen Lve. The Company falls under
textile printing and dyeing industry. The Company mainly engages in dyeing and printing
production, processing and sales of all kinds of pure cotton, pure linen, polyester cotton, ramie
cotton, high-grade blended fabrics and finished garments.
The financial statements have been approved by the Board of Directors on April 26, 2017.
1.2 Scope of the consolidated financial statements
As at December 31, 2016, subsidiaries within the scope of the consolidated financial statements
of the Company are as follows:
Name of subsidiaries
Sino Great Wall International Engineering Co., Ltd.
Beijing Sino Great Wall Decoration Design Co., Ltd.
Suzhou Lvbang Wood Technology Co., Ltd.
Herabenna Interior Design Guangzhou Co., Ltd.
Sino Great Wall Group Co., Limited
Shanghai Ling Rui International Trade Company Limited
Shenzhen Hongtulve Industrial Co., Ltd.
Inrich Me Engineering Co., Limited
Sino Great Wall New Energy (Beijing) Co., Ltd.
SINO GREAT WALL (PHILIPPINES) INTERNATIONAL CORPORITION
SGW HP Engineering Construction SDN.BHD
SINO GREAT WALL (USA). INC
Shenzhen Yatian Decoration Design Engineering Co., Ltd.
Sino Great Wall International Engineering (MACAU) Co., Limited
SINO GREAT WALL INTERNETIONAL ENGINEERING (CNMI) CO., LLC
Sino Great Wall (Beijing) Investment Fund Management Co., Ltd.
Sino Great Wall Real estate (Hubei) Co., Ltd.
Sino Great Wall Development (Hengqin) Co., Ltd.
PT.SINO GREAT WALL INVESTMENT INDONESIA
PT.SINO GREAT WALL CONSTRUCTION INDONESIA
SINO GREAT WALL INTERNETIONAL ENGINEERING(MM)CO.,LTD
Sino Great Wall Southwest Construction Engineering Co., Ltd.
Sino Great Wall Jianyee Engineering Co., Ltd.
Wuhan Commercial Workers Hospital Co., Ltd.
See “Note 6. Changes in scope of consolidation” and “Note 7. Rights and interests in other
entities” for details of the scope of consolidated financial statements in the current year and the
changes thereof.
2. Preparation basis for financial statements
2.1 Preparation basis
The Company prepares the financial statements based on going concern, according to the
transactions and events actually occurred and in accordance with the Accounting Standards for
Business Enterprises - Basic Standards and various specific accounting standards, application
guidance to and interpretations for the Accounting Standards for Business Enterprises and other
relevant provisions (hereinafter collectively referred to as the "Accounting Standards for
Business Enterprises") promulgated by the Ministry of Finance and disclosure provisions of the
Rules for the Information Disclosure and Compilation of Companies Publicly Issuing Securities
No. 15 - General Rules on Financial Reports promulgated by the China Securities Regulatory
Commission.
Notes to the Financial Statements Page 2
SINO GREAT WALL CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
2.2 Going concern
The Company will have going-concern abilities within 12 months as of the end of the reporting
period and have no significant events that will affect the going-concern abilities.
3. Significant accounting policies and accounting estimates
3.1 Statement on compliance with Accounting Standards for Business Enterprises
The financial statements prepared by the Company meet the requirements of the Accounting
Standards for Business Enterprises and truly and completely reflect the Company’s financial
position, operating results, cash flows and other related information in the reporting period.
3.2 Accounting period
The accounting year is from January 1 to December 31 in calendar year.
3.3 Operating cycle
The Company's operating cycle is 12 months.
3.4 Functional currency
RMB is the functional currency of the Company and its domestic subsidiaries due to that it is the
currency in the main economic environment in which the Company and its domestic subsidiaries
located. Currency of the Company in preparing its financial statements is RMB.
3.5 Accounting treatment methods of business combinations under common control and not
under common control
Business combination under common control: The assets and liabilities acquired by the
Company in business combinations are measured at the book value of assets and liabilities of the
combinee (including the goodwill arising from the acquisition of the combinee by the ultimate
controller) in the consolidated financial statements of the ultimate controller on the combination
date. The stock premium in the capital reserves should be adjusted at the difference between the
book value of the net assets acquired in combinations and that of consideration paid for the
combination (or total par value of shares issued). If the stock premium in the capital reserves is
insufficient to cover the differences, the retained earnings should be adjusted.
Business combination not under common control: The Company shall, on the acquisition date,
measure the assets surrendered and liabilities incurred or assumed by the Company for a
business combination at their fair values. The Company shall recognize the difference of the
combination costs in excess of the fair value of the identifiable net assets acquired from the
acquiree as goodwill. The Company shall recognize the difference of the combination costs in
short of the fair value of the identifiable net assets acquired from the acquiree in the current
profit or loss after review.
The auditing, legal services, consulting and other intermediary fees and other related
administrative expenses for business combination will be included into current profit and loss
upon occurrence; the transaction costs for the issuance of equity securities shall set off equities.
3.6 Preparation method of consolidated financial statements
3.6.1 Scope of consolidation
The scope of consolidation of the consolidated financial statements of the Company is
recognized based on the control and all subsidiaries (including the divisible part of the
investee controlled by the Company) shall be included in the consolidated financial
statements.
Notes to the Financial Statements Page 3
SINO GREAT WALL CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
3.6.2 Procedures of consolidation
The Company prepares the consolidated financial statements based on its own
financial statements and those of its subsidiaries, and other relevant information.
When preparing the consolidated financial statements, the Company treats the
enterprise group as a whole accounting entity, to reflect the overall financial position,
operating results and cash flows in accordance with relevant recognition, measurement
and presentation requirements of Accounting Standards for Business Enterprises and
the uniform accounting policies.
The accounting policies and accounting period adopted by subsidiaries included in the
consolidation scope of the consolidated financial statements shall be the same as those
of the Company; if inconsistent, necessary adjustments shall be made according to the
Company's accounting policies and accounting period in the preparation of the
consolidated financial statements. For the subsidiaries acquired through business
combinations not under common control, adjustments to their financial statements
shall be made based on the fair values of net identifiable assets on the acquisition date.
For subsidiaries acquired through business combination under common control,
adjustments will be made to their financial statements based on the book value of their
assets and liabilities (including the goodwill formed from the ultimate controller's
acquisition of the subsidiaries) in the financial statements of the ultimate controller.
The share of owner's equity, net profits and losses in the current year and
comprehensive income in the current year of subsidiaries attributable to minority
shareholders should be separately presented under the item "owner's equity" in the
consolidated balance sheet, the item "net profit" and the item "total comprehensive
income" in the consolidated income statement. The difference of the loss in the current
year shared by minority shareholders of the subsidiaries in excess of the share of
minority shareholders in the owner's equity at the beginning of the year of the
subsidiaries should be used to offset the minority equity.
(1) Increase in subsidiaries or business
During the reporting period, if the Company increases subsidiaries or business
due to business combination under common control, it shall adjust the beginning
amount of the consolidated balance sheet; include revenues, expenses and profits
of the subsidiaries or business from the beginning of the current combination
period to the end of the reporting period in the consolidated income statement;
include cash flows of the subsidiaries or from the business from the beginning of
the current combination period to the end of the reporting period in the
consolidated cash flow statement; at the same time adjust the relevant items of
the comparative statements to the extent that the reporting entity after
combination has been always existed since the start of control by the ultimate
controller.
Where control can be exercised on the investee under the common control for
additional investment or other reasons, it deems that all parties involved in
combination make adjustment based on the current status when the ultimate
controller starts its control. Equity investments held before the control over the
combinee is obtained, the related gains and losses, other comprehensive income
as well as other changes in net assets recognized from the later of the date when
the original equity is obtained or the date when the combining party and the
combined party are under the same control, to the combination date will
respectively write down the retained earnings or current profit and loss in the
comparative statements.
Notes to the Financial Statements Page 4
SINO GREAT WALL CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
During the reporting period, if the Group acquired subsidiaries or business from
the business combination not under common control, the beginning balance in
the consolidated balance sheet will not be adjusted. The incomes, expenses and
profits of the newly acquired subsidiaries or business from the acquisition date to
the end of the reporting period shall be included in the consolidated income
statement. The cash flows of the newly acquired subsidiaries or business from the
acquisition date to the end of the reporting period shall be included in the
consolidated statement of cash flows.
Where the Company can implement control over an investee not under common
control due to additional investment or other reasons, the equity held by the
combinee before the purchase date is re-measured at the fair value on the
purchase date of the equity, and the difference between the fair value and the
book value shall be included in the current investment income. In the event that
the equity of the acquiree held prior to the acquisition date involves other
comprehensive income under the equity method and other changes in owners'
equity than net profit and loss, other comprehensive income and profit
distribution, other comprehensive income and other changes in the owner's equity
associated therewith are transferred to investment income of the period to which
the acquisition date belongs, except for other comprehensive income arising from
changes in net liabilities or net assets due to the investee's re-measurement of
defined benefits plan.
(2) Disposal of subsidiaries or business
A. General method of disposal
During the reporting period, if the Company disposes subsidiaries or
business, the incomes, expenses and profits from the subsidiaries or business
from the beginning of the year to the disposal date shall be included in the
consolidated income statement; cash flows of the subsidiaries and business
from the beginning of the year to the disposal date shall be included in the
consolidated statement of cash flows.
When the Company loses the control over the investee due to disposal of
partial equity investment or other reasons, the remaining equity investment
after the disposal will be re-measured by the Company at its fair value on
the date of loss of the control. The difference of total amount of the
consideration from disposal of equities plus the fair value of the remaining
equities less the shares calculated at the original shareholding ratio in net
assets and goodwill of the original subsidiary which are continuously
calculated as of the acquisition date or combination date is included in the
investment income of the period at the loss of control. Other comprehensive
incomes associated with the equity investments of the original subsidiary, or
the changes in owners' equity other than net profit or loss, other
comprehensive income and profit distribution, are transferred into
investment income of the period when control is lost, except for other
comprehensive income from the change in net liability or net asset due to
the investor's re-measurement of designated benefit plan.
B Disposal of subsidiaries by stages
Where the Company disposes the equity investments in subsidiary through
multiple transactions and by stages until it loses the control, if the effect of
the disposal on the terms and conditions as well as economic effect of all
transactions of equity investments in subsidiaries meet one or more of the
following circumstance, it usually indicates that the multiple transactions
should be accounted for as a package deal:
Notes to the Financial Statements Page 5
SINO GREAT WALL CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
i. the transactions are concluded at the same time or under the
consideration of mutual effect;
ii. the transactions as a whole can reach a complete business result;
iii. the occurrence of a transaction depends on that of at least one other
transactions; and/or
iv. a single transaction is uneconomical but it is economical when
considered together with other transactions.
Where various transactions of disposal of equity investments in subsidiaries
until loss of the control belong to a package deal, accounting treatment shall
be made by the Company on the transactions as a transaction to dispose
subsidiaries and lose the control; however, the difference between each
disposal cost and net asset share in the subsidiaries corresponding to each
disposal of investments before loss of the control should be recognized as
other comprehensive income in the consolidated financial statements and
should be transferred into the current profit or loss at the loss of the control.
Where various transactions of disposal of equity investments in subsidiaries
until loss of the control do not belong to a package deal, before the loss of
the control, accounting treatment shall be made according to the relevant
policies for partial disposal of equity investments in the subsidiary without
losing control; at the loss of the control, accounting treatment shall be made
according to general treatment methods for disposal of subsidiaries.
(3) Purchase of minority equity of subsidiaries
The difference between long-term equity investments acquired by the Company
through purchase of minority interest and the subsidiary’s identifiable net assets
attributable to the Company calculated continuously from the acquisition date (or
the combination date) in accordance with the increased shareholding ratio shall
be charged against stock premium within capital reserves in the consolidated
balance sheet; when stock premium within capital reserves is insufficient to
offset, the retained earnings shall be adjusted.
(4) Partial disposal of equity investments in subsidiaries without loss of control
The difference between the proceeds from partial disposal of equity investments
in the subsidiary and the share of identifiable net assets of the subsidiary
attributable to the Company which are calculated continuously from the
acquisition date (or the combination date) and which are corresponding to the
disposal of long-term equity investments without losing control shall be charged
against stock premium within capital reserves in the consolidated balance sheet;
when stock premium within capital reserves is insufficient to offset, the retained
earnings shall be adjusted.
3.7 Recognition criteria of cash and cash equivalents
For the purpose of preparing the statement of cash flows, the term “cash” refers to the cash on
hand and the unrestricted deposit of the Company. The term “cash equivalents” refers to
short-term (maturing within three months from acquisition) and highly liquid investments that
are readily convertible to known amounts of cash and which are subject to an insignificant risk
of change in value.
Notes to the Financial Statements Page 6
SINO GREAT WALL CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
3.8 Foreign currency transactions and translation of foreign currency statements
3.8.1 Foreign currency transactions
Foreign currency transactions are translated into functional currency at the
approximate rate of spot exchange rate on the day when the transactions occur.
The balance of foreign currency monetary items as at the balance sheet date are
translated at the spot exchange rate on the balance sheet date and the exchange
differences arising therefrom shall be included in the current profit or loss, except
those exchange differences arising from the special borrowings of foreign currency
related to the acquired and constructed assets qualified for capitalization that will be
capitalized at the borrowing expenses.
3.8.2 Translation of foreign currency financial statements
Assets and liabilities in the balance sheet shall be translated at the spot exchange rates
on the balance sheet date; for owners' equity items, except for the item of "retained
earnings", other items are translated at the spot exchange rates prevailing on the date
when the transactions occur. The income and expenses items in income statements are
translated at the approximate rate of spot exchange rate prevailing on the date when
transactions occur.
Where the Company disposes of an overseas business, it shall transfer the exchange
difference relating to the overseas business to the current profit and loss.
3.9 Financial instruments
Financial instruments include financial assets, financial liabilities and equity instruments.
3.9.1 Classification of financial instruments
Upon initial recognition, financial assets and financial liabilities are classified into:
financial assets or financial liabilities measured at fair value through current profit or
loss, including financial assets or financial liabilities held for trading (and financial
assets or financial liabilities directly designated to be measured at fair value through
current profit and loss); held-to-maturity investments; receivables; available-for-sale
financial assets; and other financial liabilities, etc.
3.9.2 Recognition basis and measurement method of financial instruments
(1) Financial assets or financial liabilities measured at fair value through current
profit and loss are initially recorded at fair values when acquired (deducting cash
dividends that have been declared but not distributed and bond interest that has
matured but not been drawn). Relevant transaction expenses are included in the
current profit and loss.
The interests or cash dividends to be received during the holding period are
recognized as investment income. Change in fair values is included in the current
profit and loss at the end of the period.
Upon disposal, the difference between the fair value and initial book-entry value
is recognized as investment income, while the gains or losses from changes in
fair value will be adjusted.
(2) Held-to-maturity investments
Held-to-maturity investments are initially recognized at the sum of the fair value
(bond interest due but not yet received) and related transaction costs upon
acquisition.
The interest income will be calculated and determined according to the amortized
cost and effective interest rate during the holding period and included in
investment income. The effective interest rate is determined upon acquisition and
will remain unchanged during the expected renewal period, or a shorter period if
applicable.
Notes to the Financial Statements Page 7
SINO GREAT WALL CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
Upon disposal, the difference between the purchase price obtained and the book
value of the investment is recognized in investment income.
(3) Receivables
For creditor’s rights receivable arising from external sales of goods or rendering
of service by the Company and other creditor's rights of other enterprises
(excluding liability instruments quoted in an active market) held by the Company,
including accounts receivable and other receivables, the initial recognition
amount shall be the contract price or agreement price receivable from purchasing
party; for those with financing nature, they are initially recognized at their
present values.
Upon recovery or disposal, the difference between the purchase price obtained
and the book value of the receivables is recognized in current profit and loss.
(4) Available-for-sale financial assets
Available-for-sale financial assets are initially recorded at the sum of fair values
(deducting cash dividends that have been declared but not distributed and bond
interests that have matured but not been drawn) and transaction costs upon
acquisition.
The interests or cash dividends to be obtained during the holding period are
recognized as investment income. The interest or cash dividends is measured at
fair value and changes in fair value is included in other comprehensive income.
However, for an equity instrument investment that has no quoted price in an
active market and whose fair value cannot be reliably measured, and for
derivative financial asset linked to the said equity instrument and settled by
delivery of the same equity instrument, they are measured at cost.
Difference between the proceeds and the book value of the financial assets is
recognized as investment profit or loss upon disposal; meanwhile, amount of
disposal corresponding to the accumulated change in fair value which is
originally and directly included in other comprehensive income shall be
transferred out and recognized as investment income.
(5) Other financial liabilities
They are initially recognized at the sum of the fair value and the associated
transaction costs. The subsequent measurement is based on amortized costs.
3.9.3 Recognition and measurement of financial assets transfer
When a financial assets transfer occurs, the financial assets will be derecognized when
substantially all the risks and rewards on the ownership of the financial assets have
been transferred to the transferee; and they will not be derecognized if substantially all
the risks and rewards on the ownership of the financial assets have been retained.
The principle of substance over form is adopted to determine whether a financial asset
meets the above de-recognition conditions for the financial asset. The Company
divides the transfer of financial assets into overall transfer and partial transfer. Where
the entire transfer of the financial asset meets the de-recognition conditions, the
difference of the following two amounts will be included in current profit and loss:
(1) the book value of the transferred financial asset;
(2) the sum of the consideration received from the transfer and the accumulated
amount of the changes in fair value originally and directly included in owners’
equity (the situation where the financial asset transferred is an available-for-sale
financial asset is involved).
Notes to the Financial Statements Page 8
SINO GREAT WALL CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
If the partial transfer of the financial assets meets the de-recognition condition, the
entire book value of the transferred financial asset shall be split into the derecognized
and recognized part according to their respective fair value and the difference between
the amounts of the following two items shall be included in the current profit or loss:
(1) the book value of the derecognized part;
(2) the sum of the consideration for the derecognized part and the portion of
de-recognition corresponding to the accumulated amount of the changes in fair
value originally and directly included in owners’ equity (the situation where the
financial asset transferred is an available-for-sale financial asset is involved).
If the transfer of financial assets does not meet the de-recognition condition, the
financial assets shall continue to be recognized, and the consideration received will be
recognized as a financial liability.
3.9.4 De-recognition conditions of financial liabilities
The whole or partial financial liabilities, which present obligations have been wholly
or partially discharged, shall be de-recognized; if the Company signs an agreement
with the creditor to replace the existing financial liabilities by way of assuming the
new financial liabilities which contract terms are different with those of the existing
financial liabilities, then the existing financial liabilities shall be derecognized and the
new financial liabilities shall be recognized.
Where substantive changes are made to the contract terms of existing financial
liability in whole or in part, the existing financial liabilities or part thereof will be
derecognized, and the financial liability the terms of which have been modified will be
recognized as a new financial liability.
When financial liabilities are derecognized in whole or in part, the difference between
the book value of the financial liabilities derecognized and the consideration paid
(including non-cash assets transferred out or new financial liabilities borne) will be
included into current profit or loss.
When the Company buys back part of financial liabilities, it will allocate the entire
book value of the said financial liabilities on the repurchase date in accordance with
the relative fair value of the recognized part and the terminated part. The difference
between the book value of the derecognized part and the consideration paid (including
non-cash assets surrendered or new financial liabilities assumed) shall be included in
the current profit or loss.
3.9.5 Determination method for the fair value of financial assets and financial
liabilities
The fair value of a financial instrument having an active market is determined on the
basis of quoted price in the active market. The fair value of a financial instrument, for
which there is no active market, is determined by using valuation techniques. For
valuating, the Company chooses input values which characteristics are consistent with
those of assets or liabilities considered by market participants in the course of
transactions of relevant assets or liabilities by using the valuation technique that is
applicable in the present situation and has sufficient available data and other
information supporting, and applies relevant observable input values in priority.
Unobservable input values are used only when relevant observable input values cannot
be available or such values obtained are infeasible.
Notes to the Financial Statements Page 9
SINO GREAT WALL CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
3.9.6 Test method and accounting treatment of depreciation of financial assets
(excluding receivables)
Except for the financial assets measured at fair values through current profit or loss,
the Company will check the book value of financial assets on the balance sheet date. If
there is objective evidence indicating that a financial asset is impaired, provision for
impairment will be made.
(1) Provision for impairment of available-for-sale financial assets:
If the fair value of available-for-sale financial assets has significantly declined at
the end of the period, or it is expected that the trend of decrease in value is
non-temporary after considering of various relevant factors, the impairment shall
be recognized, and accumulated losses from decreases in fair value originally and
directly included in owners' equity shall be all transferred out and recognized as
impairment loss.
For available-for-sale debt instruments whose impairment losses have been
recognized, if their fair values rise in the subsequent accounting period and such
rise is objectively related to the events occurring after the recognition of
impairment loss, the previously recognized impairment loss shall be reversed and
recorded into the current profit or loss.
Impairment losses on available-for-sale equity instruments should not be reversed
through profit and loss.
(2) Provision for impairment of held-to-maturity investments:
Measurement of provision for impairment loss on held-to-maturity investments is
treated with reference to the measurement method of impairment loss on
receivables.
3.10 Provision for bad debts of accounts receivable
3.10.1 Receivables that are individually significant but with provision for bad debts
made on an individual basis:
Judgment basis or amount standards for individually significant amount:
The Company recognizes account receivables that are individually significant (more
than or equal to RMB 10 million) and other receivables of a single current entities
(more than or equal to RMB 2 million) as individually significant receivables.
Provision method for receivables with individually significant amount and subject to
individual provision for bad debts:
On the balance sheet date, the Company separately conducts an impairment test on
accounts receivable that are individually significant. Where they are impaired after
such test, the impairment loss is recognized at the difference between the present value
of its future cash flows lower than the book value and the provision for bad debts shall
be made; accounts receivable that are not impaired after the separate test, together
with accounts receivable that are individually insignificant, are divided into several
portfolios according to similar credit risk features. The impairment loss is calculated
and recognized at a certain percentage of these portfolios of accounts receivable in the
balance on the balance sheet date and the provision for bad debts shall be made.
3.10.2 Provision for bad debts of accounts receivable made on credit risk characteristics
portfolio basis:
(1) Basis of determination for credit risk characteristics portfolio:
The Company divides receivables that are individually insignificant and
receivables that are individually significant but that fail to be impaired after a
separate test into groups according to the similarity and correlation of credit risk
Notes to the Financial Statements Page 10
SINO GREAT WALL CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
characteristics. The provision for bad debts is made based on a certain percentage
of the balance of the portfolio of such receivables. The provision for bad debts
for the current period is calculated based on the actual loss ratio of the
receivables identical or similar thereto in the previous year, in combination with
the proportion of the provision for bad debts in relation to each portfolio in the
current year determined on the basis of practical situation.
(2) Method of bad-debt provision made in terms of the credit risk features portfolio
Methods of provision for bad debts made on credit risk characteristics portfolio
basis
Aging portfolio Aging analysis method
Portfolio of related parties within the scope
of consolidation No provision for bad debts
For those subject to provision for bad debts under aging analysis method:
Proportion of provision Proportion of provision
Aging for receivables for other receivables
(%) (%)
Within 1 year 5 5
1-2 years 10 10
2-3 years 30 30
3-4 years 50 50
4-5 years 80 80
Over 5 years 100 100
3.10.3 Receivables that are individually insignificant but with provision for bad debts
made on an individual basis:
Reasons for individual provision of bad debts
On the balance sheet date, the Company recognizes impairment losses and makes
provision for bad debts of other individually significant receivables with signs of
impairment at the differences of the present values of their future cash flows in short
of their book values.
Method of provision for bad debts
On the balance sheet date, the Company separately conducts an impairment test on
accounts receivable that are individually insignificant but are provided for bad debts
on individual basis. Where they are impaired after such test, the impairment losses are
recognized at the difference between the present value of future cash flows lower than
the book value and the provision for bad debts shall be accordingly made.
3.11 Inventories
3.11.1 Classification of inventories
Inventories are classified into: raw materials, project construction, inventory goods, in
products, low-value consumption goods, etc.
3.11.2 Valuation method of inventories dispatched
The inventories are measured at weighted average method when dispatched.
3.11.3 Recognition basis for net realizable values of inventories of different categories
In normal operation process, for merchandise inventories held directly for sale,
including finished goods, stock commodities and materials for sale, their net realizable
values are determined at the estimated selling prices minus the estimated selling
expenses and relevant taxes and surcharges; in normal operation process, for material
Notes to the Financial Statements Page 11
SINO GREAT WALL CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
inventories that need further processing, their net realizable values are determined at
the estimated selling prices of finished goods minus estimated costs to completion,
estimated selling expenses and relevant taxes and surcharges; for inventories held to
execute sales contract or service contract, their net realizable values are calculated on
the basis of contract price. If the quantities of inventories specified in sales contracts
are less than the quantities held by the Company, the net realizable value of the excess
portion of inventories shall be based on general selling prices.
The provisions for inventory depreciation reserve are made on an individual basis at
the end of the period, for inventories with large quantities and relatively low unit
prices, the provisions for inventory depreciation reserve are made on a category basis.
For inventories related to the product portfolios manufactured and sold in the same
area, and of which the final usage or purpose is identical or similar thereto, and which
is difficult to separate from other items for measurement purposes, the provisions for
inventory depreciation reserve are made on a portfolio basis.
The net realizable values of inventory items are determined based on the market price
on the balance sheet date, except for there is obvious evidence showing the market
price on the balance sheet date is abnormal.
Net realizable value of inventory items at the end of the year is recognized at the
market price on the balance sheet date.
3.11.4 Inventory system
Perpetual inventory system is adopted.
3.11.5 Amortization methods for low-cost consumables and packaging materials
(1) One-off amortization method is adopted for low-cost consumables;
(2) One-off amortization method is adopted for packaging materials.
3.12 Assets classified as held for sale
The Company recognizes the part (or non-current assets) that meet all the following conditions
as assets held for sale:
(1) the part must be immediately available to be sold under the current conditions and
according to the usual terms on the sale of such part;
(2) the Company has made resolutions on disposing of the part (or non-current assets) and has
been approved by the general meeting or relevant organs of power if the approval of
shareholders is required;
(3) the Company has signed an irrevocable transfer agreement with the assignee;
(4) the transfer will be completed within one year.
3.13 Long-term equity investments
3.13.1 Determination basis of joint control or significant influence over the investee
The term ‘common control’ refers to the joint control, according to the relevant
provisions, over an arrangement, of which the relevant activities should be agreed and
decided by the participants that share the control. Where the Company exercises joint
control over the investee together with other parties to the joint venture and enjoys the
right on the investee's net assets, the investee is a joint venture of the Company.
Notes to the Financial Statements Page 12
SINO GREAT WALL CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
Significant influence refers to the power to participate in making decisions on the
financial and operating policies of an enterprise, but not the power to control, or
jointly control, the formulation of such policies with other parties. Where the
Company is able to have significant influences on an investee, the investee is its
associate.
3.13.2 Determination of initial investment cost
(1) A long-term equity investment as a result of business combination
Business combination under the common control: if the Company makes
payment in cash, transfers non-cash assets or bears debts and issues equity
securities as the consideration for the business combination, the book value of the
owner's equity of the acquiree in the consolidated financial statements of the
ultimate controller is recognized as the initial cost of the long-term equity
investment on the combination date. In case the Company can exercise control
over the investee under common control for additional investment or other
reasons, the initial investment cost of long-term equity investments is recognized
at the share of book value of net asset of the acquiree after the combination in the
consolidated financial statements of the ultimate controller on the combination
date. The stock premium should be adjusted at the difference between the initial
investment cost of long-term equity investments on the combination date and the
book value of long-term equity investments before the combination plus the book
value of consideration paid for additional shares; if there is no sufficient stock
premium for write-downs, the retained earnings are adjusted.
Business combination not under the common control: The Company recognizes
the combination cost determined on the combination date as the initial cost of
long-term equity investments. Where the Company can control the investee not
under common control from additional investments, the initial investment cost
should be changed to be accounted for under the cost method and recognized at
the sum of the book value of equity investments originally held and newly
increased investment cost.
(2) Long-term equity investments obtained by other means
For long-term equity investments acquired from making payments in cash, the
initial cost is the actually paid purchase cost.
For long-term equity investments acquired from issuance of equity securities, the
initial investment cost is the fair value of the issued equity securities.
If the exchange of non-monetary assets has commercial substance and the fair
values of assets traded out and traded in can be measured reliably, the initial cost
of long-term equity investment traded in with non-monetary assets are
determined based on the fair values of the assets traded out and the relevant taxes
and surcharges payable unless there is any conclusive evidence that the fair
values of the assets traded in are more reliable; if the exchange of non-monetary
assets does not meet the above criteria, the book value of the assets traded out
and the relevant taxes and surcharges payable are recognized as the initial cost of
long-term equity investment traded in.
For long-term equity investment acquired from debt restructuring, the initial cost
is determined based on the fair value.
Notes to the Financial Statements Page 13
SINO GREAT WALL CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
3.13.3 Subsequent measurements and the recognition method of profits and losses
(1) Long-term equity investments calculated under the cost method
Long-term equity investments of the Company in its subsidiaries are calculated
under the cost method. Except for the actual price paid for acquisition of
investment or the cash dividends or profits contained in the consideration which
have been declared but not yet distributed, the Company recognizes the
investment income in the current year at the cash dividends or profits declared by
the investee.
(2) Long-term equity investments calculated under the equity method
The Company's long-term equity investments in associates and joint ventures are
calculated under the equity method. If the initial cost is more than the share of the
fair value of the investee' identifiable net asset to which the Company shall be
entitled when investing, the initial cost of the long-term equity investment will
not be adjusted. If the initial cost of a long-term equity investment is less than the
share of the fair value of the investee's identifiable net asset to which the
Company shall be entitled when investing, the difference shall be included in the
current profit or loss.
The Company shall recognize the investment income and other comprehensive
income at the shares of net profit and loss and other comprehensive income
realized by the investee which the Company shall enjoy or bear and adjust the
book value of long-term equity investments at the same time; the Company shall
calculate the shares according to profits or cash dividends declared by the
investee and correspondingly reduce the book value of long-term equity
investments; the book value of long-term equity investments shall be adjusted
according to the investee's other changes in owner's equity other than net profit
and loss, other comprehensive income and profit distribution, which should be
included in owner's equity.
The share of the investee's net profit or loss should be recognized after
adjustments are made to net profit of the investee based on the fair value of
identifiable net assets of the investee upon acquisition of investments and
according to accounting policies and accounting period of the Company. When
holding the investment, the investee should prepare the consolidated financial
statements, it shall account for the investment income based on the net profit,
other comprehensive income and the changes in other owner's equity attributable
to the investee.
The Company shall write off the part of incomes from internal unrealized
transactions between the Company and associates and joint ventures which are
attributable to the Company according to the corresponding ratio and recognize
the profit and loss on investments on such basis. Where the losses from internal
transactions between the Company and the investee fall into the scope of assets
impairment loss, the full amount of such losses should be recognized. For
transactions on investments or sales of assets between the Company and
associates and joint ventures, where such assets constitute business, they should
be accounted for according to the relevant policies disclosed in this note
"Accounting treatment of business combinations under common control and not
under common control" and "Preparation of consolidated financial statements".
When the Company recognizes its share of loss incurred to the investee,
treatment shall be done in following sequence: firstly, the book value of the
long-term equity investment shall be reduced; secondly, where the book value is
insufficient to cover the share of losses, investment losses are recognized to the
extent of book value of other long-term equity which forms the net investment in
Notes to the Financial Statements Page 14
SINO GREAT WALL CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
the investee in substance and the book value of long term receivables shall be
reduced; finally, after all the above treatments, if the Company is still responsible
for any additional liability in accordance with the provisions stipulated in the
investment contracts or agreements, estimated liabilities are recognized and
included into current investment loss according to the obligations estimated to
undertake.
(3) Disposal of long-term equity investments
For disposal of long-term equity investments, the difference between the book
value and the actual price shall be included into the current profit or loss.
For long-term equity investments calculated under the equity method, when the
Company disposes such investments, accounting treatment should be made to the
part that is originally included in other comprehensive income according to the
corresponding proportion by using the same basis for the investee to directly
dispose the relevant assets or liabilities. Owner's equity recognized at the changes
in the investee's other owner's equity other than net profit or loss, other
comprehensive income and profit distribution shall be transferred to the current
profit and loss according to the proportion, except for other comprehensive
income from changes arising from re-measurement of net liabilities or net assets
of defined benefit plan.
In case the joint control or significant influence over the investee is lost for
disposing part of equity investments or other reasons, the remaining equity will
be changed to be accounted for according to the recognition and measurement
principles of financial instruments. The difference between the fair value and the
book value on the date of the loss of joint control or significant influence should
be included in the current profit and loss. For other comprehensive income
recognized from accounting of the original equity investments under the equity
method, accounting treatment should be made by using the same basis for the
investee to directly dispose the relevant assets or liabilities when the equity
method is no longer adopted. Owner's equity recognized from the investee's
changes in other owner's equity other than net profit or loss, other comprehensive
income and profit distribution should all transferred to the current profit and loss
when the equity method confirmed is no longer adopted.
In case the control over the investee is lost due to disposal of part of equity
investments or other reasons, in the preparation of individual financial statements,
the remaining equity after the disposal that can exercise joint control or exert
significant influence over the investee shall be accounted for in the equity
method, and such remaining equity shall be adjusted as if it had been accounted
for in the equity method since the time of acquisition; the remaining equity after
disposal that cannot exercise joint control or exert significant influence over the
investee shall be subject to account treatment according to the relevant provisions
of the recognition and measurement criteria for financial instruments, and the
difference between the fair value on the date when the control is lost and the
book value shall be included into the current profit and loss.
Where equity after the disposal is acquired from business combinations due to
additional investments or other reasons, when the Company prepares individual
financial statements, if the remaining equity after the disposal is accounted for
under the cost method or equity method, other comprehensive income and other
owners' equity recognized from equity investments that are held before the
acquisition date and are accounted for under the equity method should be carried
forward in proportion; if the remaining equity after the disposal is changed to be
accounted for according to recognition and measurement standards of financial
instruments, other comprehensive income and other owners' equity should be
carried forward at full amount.
Notes to the Financial Statements Page 15
SINO GREAT WALL CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
3.14 Investment properties
The investment property refers to the real estate held for earning rentals or/and capital
appreciation or both, including leased land use right, land use right held for transfer upon
appreciation, and leased building (including self-built buildings or buildings developed for
renting or buildings under construction or development for future renting).
The Company measures its existing investment property at cost. For investment properties
measured with the cost model - in terms of buildings for renting, the same depreciation policy as
that for fixed assets of the Company is adopted and land use rights for renting are implemented
with the same amortization policy as that for intangible assets.
3.15 Fixed assets
3.15.1 Recognition criteria of fixed assets
Fixed assets refer to the tangible assets held for the purpose of producing commodities,
rendering services, renting or business management with useful lives exceeding one
accounting year. Fixed assets are recognized when they simultaneously meet the
following conditions:
(1) It is probable that the economic benefits relating to the fixed assets will flow into
the Company; and
(2) The costs of the fixed asset can be measured reliably.
3.15.2 Depreciation method
Depreciation of the fixed assets is made on a category basis using the straight-line
method and the depreciation rates are determined according to the categories,
estimated useful lives and estimated net residual rates of fixed assets. Where various
components of fixed assets are different in useful lives or bring economic benefits for
the enterprise in different ways, then the Company should choose different
depreciation rates or methods to separately provide for depreciation.
For fixed assets acquired under financing leases, if there is reasonable assurance that
the Company will obtain the ownership of the leased assets when the lease term
expires, the leased assets should be depreciated over its useful life; if there is no
reasonable assurance that the Company will obtain the ownership of the leased assets
when the lease term expires, the leased assets should be depreciated over the shorter of
the lease term or the useful life of the leased assets.
The depreciation method, depreciation life, residual value rate and annual depreciation
rate of fixed assets are as follows:
Depreciation Residual value Annual depreciation
Category Depreciation method
life (year) rate (%) rate (%)
Buildings and constructions Straight-line method 20 5.00 4.75
Machinery equipment Straight-line method 10 5.00 9.50
Transportation equipment Straight-line method 7 5.00 13.57
Electronic equipment and other equipment Straight-line method 3-5 5.00 19.00-31.67
3.15.3 Determination basis and measurement method of fixed assets acquired under
financing leases
The fixed assets acquired under financing lease are recognized if one of the following
conditions is specified by the Company and the leaser in their lease agreement:
(1) upon the expiration of the lease term, the ownership of the leased asset has been
transferred to the Company;
(2) the Company has the option to purchase the asset and the purchase price is far
lower than the fair value of such asset at the time of the option being exercised;
Notes to the Financial Statements Page 16
SINO GREAT WALL CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
(3) the lease term covers the most of the useful life of the leased asset;
(4) there is no large difference between the present value of the minimum lease
payments on the lease commencement date and fair value of the assets.
On the lease commencement date, the leased assets are stated at the lower of the fair
value and the present value of the minimum lease payments. Minimum lease payments
are stated at long-term payables and the difference is recognized as unrecognized
financing costs.
3.16 Construction in progress
Projects under construction are recorded as fixed assets at necessary expenditures incurred
before preparing the asset to reach the condition for its intended use. For construction in
progress that has reached working conditions for its intended use but for which the completion
of settlement has not been handled, it shall be transferred into fixed assets at the estimated value
according to the project budget, construction price or actual cost, etc. from the date when it
reaches the working conditions for its intended use. The fixed assets shall be depreciated in
accordance with the Company’s policy on fixed asset depreciation. Adjustment shall be made to
the originally and provisionally estimated value based on the actual cost after the completion of
settlement is handled, but depreciation already provided will not be adjusted.
3.17 Borrowing costs
3.17.1 Recognition principles of capitalization of borrowing costs
Borrowing costs include the interest of borrowings, the amortization of discount or
premium, auxiliary expenses, exchange differences incurred by foreign currency
borrowings, etc.
The borrowing costs incurred to the Company and directly attributable to the
acquisition and construction or production of assets eligible for capitalization should
be capitalized and recorded into relevant asset costs; other borrowing costs should be
recognized as costs according to the amount incurred and be included into the current
profit and loss.
Assets eligible for capitalization refer to fixed assets, investment property, inventories
and other assets which may reach their intended use or sale status only after long-time
acquisition and construction or production activities.
Borrowing costs may be capitalized only when all the following conditions are met at
the same time:
(1) Asset disbursements, which include those incurred by cash payment, the transfer
of non-cash assets or the undertaking of interest-bearing debts for acquiring and
constructing or producing assets eligible for capitalization, have already been
incurred;
(2) Borrowing costs have already been incurred;
(3) The acquisition and construction or production activities which are necessary to
prepare the assets for their intended use or sale have been in progress.
3.17.2 Capitalization period of borrowing costs
Capitalization period refers to the period from the commencement of capitalization of
borrowing costs to its cessation, excluding the period of capitalization suspension of
borrowing costs.
Notes to the Financial Statements Page 17
SINO GREAT WALL CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
Capitalization of borrowing costs should cease when the acquired and constructed or
produced assets eligible for capitalization have reached the working condition for their
intended use or sale.
Where part of the purchase, construction or manufacturing projects of assets are
completed and can be used separately, capitalization of the related borrowing costs
should be ceased.
When some projects among the acquired and constructed or produced assets eligible
for capitalization are completed and can be used separately, the capitalization of
borrowing costs of such projects should be ceased.
3.17.3 Period of capitalization suspension
If the acquisition and construction or production activities of assets eligible for
capitalization are abnormally interrupted and such condition lasts for more than three
months, the capitalization of borrowing costs should be suspended; if the interruption
is necessary procedures for the acquired, constructed or produced assets eligible for
capitalization to reach the working conditions for its intended use or sale, the
borrowing costs continue to be capitalized. Borrowing costs incurred during the
interruption are recognized as the current profit and loss and continue to be capitalized
until the acquisition, construction or production of the asset restarts.
3.17.4 Measurement of capitalization rate and capitalized amounts of borrowing costs
As for special borrowings borrowed for acquiring and constructing or producing assets
eligible for capitalization, borrowing costs of special borrowing actually incurred in
the current period less the interest income of the borrowings unused and deposited in
bank or return on temporary investment should be recognized as the capitalization
amount of borrowing costs.
As for general borrowings used for acquiring and constructing or producing assets
eligible for capitalization, the interest of general borrowings to be capitalized should
be calculated by multiplying the weighted average of asset disbursements of the part
of accumulated asset disbursements exceeding special borrowings by the
capitalization rate of used general borrowings. The capitalization rate is calculated by
weighted average interest rate of general borrowings.
3.18 Intangible assets
3.18.1 Measurement method of intangible assets
(1) The Company initially measures intangible assets at cost on acquisition;
The costs of externally acquired intangible assets include their purchase prices,
related taxes and surcharges and any other directly attributable expenditure
incurred to prepare the asset for its intended use. If the payment for an intangible
asset is delayed beyond the normal credit conditions, which is substantially of the
financing nature, the cost of the intangible asset shall be determined on the basis
of the present value of the purchase price.
The intangible assets acquired and used by the debtor to repay debt in debt
restructuring should be recorded at the fair value of the intangible assets. The
difference between the book value of restructured debts and the fair value of
intangible assets used to repay debt should be included in the current profit and
loss.
On the premise that non-monetary assets trade is of commercial nature and the
fair value of the assets traded in or out can be measured reliably, the intangible
assets traded in with non-monetary assets should be recognized at the fair value
of the assets traded out, unless any unambiguous evidence indicates that the fair
value of the assets traded in is more reliable; as to the non-monetary assets trade
Notes to the Financial Statements Page 18
SINO GREAT WALL CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
not meeting the aforesaid premise, the book value of the assets traded out and
related taxes and surcharges payable should be recognized as the cost of the
intangible assets, with gains or losses not recognized.
(2) Subsequent measurement
The useful lives of the intangible assets are analyzed and determined on their
acquisition.
For intangible assets with definite useful lives, the Company shall adopt the
straight-line method for amortization within the period during which they can
bring economic benefits to the Company; where the period during which they can
bring economic benefits to the Company cannot be forecast, those intangible
assets shall be deemed as assets with indefinite lives and no amortization will be
made.
3.18.2 Estimate of useful life of intangible assets with limited useful life:
Item Estimated useful lives Basis
Land use right 50 years Land use certificate
Software 5 years By reference to the same industry
The useful life and amortization method of intangible assets with limited useful lives
should be reviewed at the end of each year.
After review, the useful life of intangible assets and amortization method at the end of
the year are not different from previous estimates.
3.18.3 Specific criteria for classification of research phase and development phase
Research phase: the phase for the creative and planned investigation and research to
acquire and understand new scientific or technological knowledge.
Development phase: the phase for the application of research achievements and other
knowledge to a certain plan or design, prior to the commercial production or use, so as
to produce any new material, device or product, or substantially improved material,
device and product.
Expenditures incurred during the research phase of internal research and development
projects shall be written off to current profit and loss.
3.18.4 Specific criteria for capitalization of expenditures at the development phase
Expenditures arising from development phase on internal research and development
projects must be capitalized if the Company can satisfy all of the following criteria
simultaneously:
(1) it is technically feasible to finish intangible assets for use or sale;
(2) it is intended to finish and use or sell the intangible asset;
(3) the ways whereby the intangible asset is to generate economic benefits, including
those whereby it is able prove that there is a potential market for the products
manufactured by applying this intangible asset or that there is a potential market
for the intangible asset itself; if the intangible asset will be used internally, its
usefulness shall be proved;
(4) it is able to finish the development of the intangible assets, and able to use or sell
the intangible assets, with the support of sufficient technologies, financial
resources and other resources; and
Notes to the Financial Statements Page 19
SINO GREAT WALL CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
(5) the expenditure attributable to the intangible assets during its development phase
can be reliably measured.
3.19 Impairment of long-term assets
For the long-term equity investments, investment property, fixed assets, construction in progress,
intangible assets, and other long-term assets measured at cost model, if there are signs of
impairment, an impairment test will be conducted on the balance sheet date. If the recoverable
amount of the asset is less than its book value after test, assets impairment provision will be
made at the difference and included into impairment loss. The recoverable amount is determined
at the higher of the net of the fair value less disposal costs and the present value of the expected
future cash flows. The assets impairment provision is calculated and made on an individual basis.
If it is difficult for the Company to estimate the recoverable amount of the individual asset, the
recoverable amount of an asset group, to which the said asset belongs, will be determined. Asset
group is the smallest asset group that can independently generate cash inflows.
For goodwill, impairment test shall be conducted at least in the end of each year.
The Company conducts an impairment test for the goodwill. The book value of goodwill arising
from business combinations is amortized to relevant asset groups with a reasonable method from
the date of acquisition; or amortized to relevant combination of asset groups if it is difficult to be
amortized to relevant asset groups. When the book value of goodwill is amortized to the relevant
assets group or combination of assets groups, it shall be evenly amortized according to the
proportion of the fair value of each assets group or combination of assets groups in the total fair
value of the relevant assets groups or combinations of assets groups. Where the fair value cannot
be reliably measured, it should be amortized according to the proportion of the book value of
each asset group or combination of assets groups in the total book value of assets groups or
combinations of assets groups.
When making an impairment test on the relevant assets groups or combination of assets groups
containing goodwill, if any indication shows that the assets groups or combinations of assets
groups may be impaired, the Company shall first conduct an impairment test on the assets
groups or combinations of assets groups not containing goodwill, calculate the recoverable
amount and compare it with the relevant book value to recognize the corresponding impairment
loss. Then the Company shall conduct an impairment test on the assets groups or combinations
of assets groups containing goodwill, and compare the book value of these assets groups or
combinations of assets groups (including the book value of the goodwill apportioned thereto)
with the recoverable amount. Where the recoverable amount of the relevant assets groups or
combinations of assets groups is lower than the book value thereof, the Company shall
recognize the impairment loss of the goodwill.
The above losses from asset impairment shall not be reversed in subsequent accounting periods
once recognized.
3.20 Long-term deferred expenses
Long-term deferred expenses refer to various expenses which have been already incurred but
will be born in this period and in the future with an amortization period of over one year.
3.20.1 Amortization method
The amortization period is determined in accordance with the contract or expected
beneficial period.
3.20.2 Amortization years
The amortization period is determined in accordance with the contract or expected
beneficial period.
Notes to the Financial Statements Page 20
SINO GREAT WALL CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
3.21 Employee compensation
3.21.1 Accounting treatment of short-term compensation
During the accounting period when employees serve the Company, the actual
short-term compensation is recognized as liabilities and included in current profit or
loss or costs associated with assets.
During the accounting period when employees provide services for the Company, the
corresponding amount of employee compensation is calculated and determined
according to the provision basis and provision proportion as stipulated in the
provisions on the social insurance premiums and housing funds paid for employees by
the Company, as well as trade union funds and employee education funds.
The non-monetary benefits of employees that can be measured reliably are measured
at fair value.
3.21.2 Accounting treatment of post-employment benefits
Defined contribution plans
The Company pays basic endowment insurance and unemployment insurance for
employees according to the relevant provisions of the local government, calculate
payables according to payment base and proportion specified by the local government
and recognizes them as liabilities, and includes them into the current profit and loss or
the relevant asset costs.
3.21.3 Accounting treatment of dismissal benefits
The Company recognizes the employee compensation arising from dismissal benefits
as liabilities and include it in the current profit and loss when the Company cannot
unilaterally withdraw dismissal benefits which are provided for termination of labor
relation plan or layoff proposal, or when the Company recognizes costs or expenses
(whichever is earlier) associated with restructuring of payment of dismissal benefits.
3.22 Estimated liabilities
3.22.1 Recognition criteria for estimated liabilities
Where all the following conditions are met simultaneously for any obligation pertinent
to any contingency including litigation, debt guarantee, onerous contract and
reorganization, the Company will recognize such contingency as estimated liabilities:
(1) the obligation is a present obligation of the Company;
(2) the performance of such obligation is likely to result in outflow of economic
benefits from the Company; and
(3) the amount of the obligation can be measured reliably.
3.22.2 Measurement of estimated liabilities
Estimated liabilities of the Company are initially measured as the best estimate of
expenses required for the performance of relevant present obligations.
When the Company determines the best estimate, it should have a comprehensive
consideration of risks with respect to contingencies, uncertainties and the time value
of money. If the time value of money is significant, the best estimate shall be
determined after discounting the relevant future outflow of cash.
The best estimate shall be accounted as follows in different circumstances:
Notes to the Financial Statements Page 21
SINO GREAT WALL CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
If there is continuous range (or interval) for the necessary expenses, and probabilities
of occurrence of all the outcomes within this range are equal, the best estimates will be
determined at the average amount of upper and lower limits within the range.
If there is no continuous range (or interval) for the necessary expenses, or probabilities
of occurrence of all the outcomes within this range are unequal although such a range
exists, in case that the contingency involves a single item, the best estimate shall be
determined at the most likely outcome; if the contingency involves two or more items,
the best estimate should be determined according to all the possible outcomes with
their relevant probabilities.
When all or some of the expenses necessary for the liquidation of estimated liabilities
of the Company are expected to be compensated by a third party, the compensation
should be separately recognized as an asset only when it is virtually certain that the
reimbursement will be obtained. The amount recognized for the reimbursement should
not exceed the book value of estimated liabilities.
3.23 Share-based payments
The Company's share-based payments are transactions in which the Company grants equity
instruments or undertakes equity-instrument-based liabilities in return for services from
employees [or other parties]. The share-based payments of the Company consist of
equity-settled share-based payments and cash-settled share-based payments.
The equity-settled share-based payment in return for services from employees shall be measured
at the fair value of the equity instruments granted to the employees. Where the Company makes
share-based payments in restricted stocks and the employee makes capital contributions to
subscribe such shares, such shares should not be circulated or transferred before they reach
unlocked conditions and before they are unlocked; if the unlocked conditions specified in the
final equity incentive plan fail to be reached, then the Company should repurchase the shares at
the price agreed in advance. When the Company received the payment of the employee for the
subscription of restricted stocks, it should recognize share capital and capital reserves (share
premiums) in accordance with the payment for subscription received. The Company should fully
recognize a liability at the repurchase obligations and recognize treasury stock at the same time.
On each balance sheet date within the vesting period, the Company will, based on the
newly-acquired subsequent information such as the changes in the number of the vested
employees and whether the specified performance is reached, make the best estimate on the
number of the vesting equity instruments. On such basis, the services received in the current
period should be included in the relevant cost or expenses according to fair value on the date of
grant and capital reserves should be accordingly increased. No adjustments should be made to
the recognized relevant costs or expenses and total owners' equity after the vesting date.
However, when the right can be exercised immediately after the grant, it should be included in
the relevant costs or expenses at the fair value on the date of grant. The capital reserves should
be increased accordingly.
For share-based payments finally failing to be exercised, costs or expenses should not be
recognized, unless the conditions for vesting are market conditions or non-vesting conditions. At
this time, whether market conditions or non-vesting conditions are met or not, it is deemed to
have vesting rights if non-market conditions in all the vesting conditions are met.
If the terms of the equity-settled share-based payments were modified, the services received
should be recognized at least in accordance with the unmodified terms. Moreover, the
modification of fair value of equity instruments granted from any increase, or beneficial changes
to the employee on the modification date should be recognized as increases in services obtained.
If the equity-settled share-based payments were cancelled, they should be handled as accelerated
exercise of rights on the date of cancellation and the amount that is not yet recognized should be
immediately recognized. Where employees or other parties could choose to meet non-vesting
Notes to the Financial Statements Page 22
SINO GREAT WALL CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
conditions but failed to meet the conditions in the vesting period, they should be handed as
cancelling the equity-settled share-based payments. However, if new equity instruments are
granted, which are recognized as the replacement of the cancelled equity instrument on the grant
data, the granted equity instrument for replacement shall be handled in the same way with the
disposal of revision of provisions on the original equity instrument and conditions.
3.24 Revenue
3.24.1 General recognition principles for revenue from sales of goods:
(1) the Company has transferred the substantial risks and rewards of ownership of
the goods to the buyer;
(2) the Company retains neither continuing managerial involvement to the degree
usually associated with ownership nor effective control over the goods sold;
(3) the amount of revenue can be measured reliably; and
(4) the related economic benefits are likely to flow into the Company; and
(5) the relevant costs that have occurred or will occur can be measured reliably.
3.24.2 Specific principles
(1) Revenue from rendering of service
Revenue from rendering of services of the Company mainly refers to revenue
from engineering design. If the outcome of transactions can be estimated reliably,
revenue shall be recognized at the important timing specified in the design
contract. That is to say, revenue shall be recognized at the percentage of
workload of completed design at the important timing in total design workload
and expected recoverable contract amount.
Where the outcome of transactions on rendering of services cannot be reliably
estimated, the revenue from rendering of services shall be recognized at labor
costs that have been incurred and that are expected to be compensated. The labor
costs that have been incurred are recognized as the expenses in the current period.
Labor costs that have been incurred but that are not expected to be compensated
shall not be recognized as revenue.
When contracts or agreements of the Company concluded with other enterprises
include sales of goods and rendering of services, if the part of sales of goods and
that of rendering of services can be distinguished and be separately measured,
they shall be treated separately; if the part of sales of goods and that of rendering
of services cannot be distinguished or can be distinguished but cannot be
separately measured, the whole contract shall be treated as sales of goods.
(2) Revenue from construction contracts
If the outcome of a construction contract can be reliably estimated, the revenue
and costs from the construction contract will be recognized by the completion
percentage method on the balance sheet date. The progress of the contract
completion is recognized based on the proportion of the actually incurred
contract costs accumulated in the estimated total costs.
Where the outcome of a construction contract cannot be estimated reliably, if
contract costs are not expected to be recoverable, contract revenue is recognized
to the extent of actual contract costs that are expected to be recoverable and the
contract costs are recognized as contract expenses immediately when incurred. If
contract costs are not expected to be recoverable, they are recognized as expenses
immediately when incurred and contract revenue is not recognized. When
uncertainties that make the outcome of a construction contract unable to be
estimated reliably do not exist, revenue and costs associated with construction
contracts should be recognized with the completion percentage method.
Notes to the Financial Statements Page 23
SINO GREAT WALL CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
If the estimated total contract costs exceed the estimated total contract revenue,
the expected loss is recognized as current expenses.
Accumulated costs incurred and accumulative gross profits (losses) recognized as
well as payments settled as to the construction contract should be presented at the
net amount after the offset in the balance sheet. The part of accumulated costs
incurred plus accumulative gross profits (losses) recognized exceeding payments
settled as to the construction contract should be presented as inventories; the part
of accumulated costs incurred plus accumulative gross profits (losses) recognized
less than the payments settled as to the construction contract should be presented
as advances from customers.
(3) Recognition of revenue from hospital service
The revenue from hospital service mainly comes from out-patient department and
in-patient department, and the revenue is recognized when the patients make the
settlements.
For revenue from out-patient department, as the patients that go to out-patient
department generally require no hospitalization, and receive short term treatment,
they settle with the hospital on the date of visit and pay for the treatment and
medicine. Therefore, the revenue is recognized financially on the date the
payment is received.
For revenue from in-patient department, patients need to stay in for a period of
treatment; they will pay certain advance when being hospitalized, which will not
be recognized at that time. When the patients leave the hospital, they settle the
medical expenses during the hospitalization, the hospital will issue an invoice to
the patients, and then revenue is recognized financially.
3.25 Government subsidies
3.25.1 Type
Government subsidies are monetary assets and non-monetary assets freely obtained by
the Company from the government. They are divided into government subsidies
related to assets and government subsidies related to income.
Government subsidies related to assets refer to government subsidies which are
acquired by the Company for construction or form long-term assets in other ways,
including the financial allocation for purchasing fixed assets or intangible assets, the
financial discount for special loan of fixed assets and others. Government subsidies
related to income refer to those other than the government subsidies related to assets.
3.25.2 Timing of recognition
If government subsidies are monetary assets, it shall be measured in the light of the
amount received or receivable. Where government subsidies are non-monetary assets,
they are measured at fair value; where the fair value cannot be reliably measured, they
are measured at nominal amount. Government subsidies measured at nominal amount
are directly included in the current profit and loss.
3.25.3 Accounting treatment
Government subsidies related to assets are recognized as deferred income, and
included in non-operating income by stages based on the useful life of the assets
acquired and constructed;
if government subsidies related to income are used to compensate the Company’s
relevant expenses or losses in future periods, such government subsidies should be
Notes to the Financial Statements Page 24
SINO GREAT WALL CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
recognized as deferred income on acquisition and be included in current non-operating
income during the period of recognition of the relevant expenses; if government
subsidies related to income are used to compensate the Company’s relevant expenses
or losses incurred, such government subsidies are directly included into current
non-operating income on acquisition.
3.26 Deferred income tax assets and deferred income tax liabilities
Deferred income tax assets are recognized at deductible temporary differences to the extent that
it shall not exceed the taxable income probably obtained in future period to be against the
deductible temporary difference. For deductible losses and tax credits that can be carried
forward to subsequent periods, deferred tax assets arising therefrom are recognized to the extent
that future taxable income will be probable to be available against deductible losses and tax
credits.
Taxable temporary differences are recognized as deferred income tax liabilities except in special
circumstances.
Such special circumstances in which deferred tax assets or deferred tax liabilities shall not be
recognized include: the initial recognition of goodwill; other transactions or matters excluding
business combinations, which affect neither accounting profits nor the taxable income (or
deductible losses) when incurred.
If the Company has the legal right to settle in net amounts and intends to settle in net amount or
to obtain assets and discharge liabilities simultaneously, the current tax assets and current tax
liabilities of the Company shall be presented based on the net amount upon offset.
When the Company has the legal right for netting of current income tax assets and current
income tax liabilities and the income tax assets and income tax liabilities are related to the
income tax levied on the same taxpayer by the same tax administrative department or are related
to different taxpayers but, within each future period of reversal of important income tax assets
and income tax liabilities, the taxpayers involved intend to settle current income tax assets and
current income tax liabilities or acquire assets and liquidate liabilities at the same time, the
Company's income tax assets and income tax liabilities shall be presented at the net amount after
the offset.
3.27 Leases
3.27.1 Accounting treatment of operating leases
(1) The Company's rental expenses paid for leased assets shall, within the whole
lease term excluding the rent-free period, be amortized with the straight-line
method and included in current expenses. Initial direct costs related to lease
transactions paid by the Company shall be included in the current expenses.
When assets lessor bears costs related to the lease borne by the Company, the
Company shall deduct the part of expenses from the total rents and amortize the
rents after deduction over the lease term and include them in current expenses.
(2) The Company's rental expenses collected for leased assets shall, within the whole
lease term excluding the rent-free period, be amortized with the straight-line
method and recognized as the relevant rental income. Initial direct expenses
relating to lease transactions incurred by the Company shall be recognized as the
current expenses; if the amounts are significant, they shall be capitalized and
included in the current income on the same basis as the recognition of lease
income.
When the Company bears the lease related expenses which should be undertook
by the lessee, the Company shall deduct this part of expense from the total rental
expenses, and amortize the net amount over the lease term.
Notes to the Financial Statements Page 25
SINO GREAT WALL CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
3.27.2 Accounting treatment of financing lease
(1) Assets leased in under financing leases: On the lease commencement date, the
book entry value of a fixed asset acquired under financing lease is measured at
the asset’s fair value or the present value of the minimum lease payment,
whichever is the lower. The minimum lease payment is recorded as the book
entry value of the long-term payables, and the difference between them is deemed
as the unrecognized financing expenses. The Company adopts the effective
interest rate method for unrecognized financing charges, which shall be
amortized over the lease terms and included in financial expenses. The Company
records the initial direct expenses in the values of leased assets.
(2) Assets leased under finance leases: On the lease beginning date, the Company
recognizes the difference between the sum of financing lease receivable and the
unguaranteed residual value, and the present value thereof as unrealized
financing income, and recognizes the same as rental income over the periods
when rent is received in the future. The Company's initial direct costs related to
the rental transactions will be included in the initial measurement of the financing
lease receivables and the amount of revenue recognized in the lease term will be
reduced.
3.28 Discontinued operation
Discontinued operations refer to the component meeting any of the following conditions that has
been disposed by the Company or classified as held for sale by the Company, and that can be
separately identified upon operation and preparation for the financial statements:
(1) the component represents a separate major business or a major business areas;
(2) the component is a part of the plan on intended disposal of an independent major business
or a major business area; or
(3) the part is a subsidiary acquired only for resale.
3.29 Changes in significant accounting policies and accounting estimates
3.29.1 Changes in significant accounting policies
(1) Implementation of the Provisions on the Accounting Treatment for Value-added
Tax
On December 3, 2016, the Ministry of Finance promulgated the Provisions on the
Accounting Treatment for Value-added Tax (Cai Kuai [2016] No.22), which
apply to relevant transactions of the Company occurred since May 1, 2016. Main
impacts of the provisions implementation of the Company are as follows:
Contents of and reasons for changes in Name and amount of the affected
accounting policies items in the financial statements
(1) Adjust the item "business taxes and
surcharges" in the income statement to
the item "taxes and surcharges" therein. Taxes and surcharges
(2) Reclassify the real estate tax,
land-use tax-, vehicle and vessel use tax
and stamp duty incurred by business
operation activities of the enterprise
since May 1, 2016 from "General and
administrative expenses" to "Taxes and Increased taxes and surcharges in
surcharges" and the taxes incurred this year amount to RMB
before May 1, 2016 will not be adjusted. 433,364.39, and decreased general
The comparative data shall not be and administrative expenses in 2016
adjusted. amount to RMB 433,364.39.
(3) Reclassify the item "taxes and Increased ending balance of other
Notes to the Financial Statements Page 26
SINO GREAT WALL CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
surcharges payable" to transfer the VAT current liabilities amounted to RMB
amount where income (or profit) has 30,382,980.72, and decreased ending
been recognized but the VAT has not balance of taxes and surcharges
been paid and which shall be recognized payable amounted to RMB
as the output tax amount into the item 30,382,980.72.
"other current liabilities" (or "other
non-current liabilities"). Compared data
shall not be adjusted. The comparative
data shall not be adjusted.
3.29.2 Changes in significant accounting estimates
The Company had no changes in principal accounting estimates during the reporting
period.
4. Taxation
4.1 Major tax types and tax rates
Tax type Tax basis Tax rate
(%)
The output tax is calculated based on taxable income in
accordance with tax laws, and value added tax payable
should be the balance of the output tax after deducting 0, 3, 6, 11
Value added tax (VAT) the deductible input tax for the current period and 17
Business tax Levied based on the taxable operating income 3 and 5
Urban maintenance and Paid based on the actual business tax, VAT and
construction tax consumption tax paid 1, 5 and 7
Education surtax Calculated and paid at turnover tax actually paid. 3
Local education surtax Calculated and paid at turnover tax actually paid. 2
Enterprise income tax Levied based on the amount of taxable income 15, 25
Notes to the Financial Statements Page 27
SINO GREAT WALL CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
Note 1 According to the Circular on Launching the Pilot Collection of Value Added Tax in lieu
of Business Tax in Transportation and Certain Areas of Modern Services Industries in Eight
Provinces and Municipalities Including Beijing (Cai Shui [2012] No.71) promulgated by the
Ministry of Finance and the State Administration of Taxation on July 31, 2012, design business
of the Company’s subsidiary Beijing Sino Great Wall Decoration Design Co., Ltd. (hereinafter
referred to as the "Sino Great Wall Design") was changed from taxable items under business tax
to those under value added tax as of September 1, 2012, so the Company and Sino Great Wall
Design became a small-scale VAT taxpayer and were subject to the rate of 3%.
Rates of income tax in regard to the Company and its subsidiaries:
Income tax rate
Name of subsidiary Remarks
(%)
Sino Great Wall Co., Ltd. 25
Sino Great Wall Medical Investment Management Co., Ltd. 25
Sino Great Wall Infrastructure Investment Co., Ltd. 25
Wuhan Commercial Workers Hospital Co., Ltd. 25
Sino Great Wall International Engineering Co., Ltd. 15
Sino Great Wall Jianyee Engineering Co., Ltd. (formerly known as
Sichuan Haoyao Constructional Engineering Co., Ltd.) 25
Sino Great Wall (Beijing) Investment Fund Management Co., Ltd. 25
Sino Great Wall Real estate (Hubei) Co., Ltd. 25
Sino Great Wall New Energy (Beijing) Co., Ltd. 25
Qian'an Sino Solar Power Generation Co., Ltd. 25
Wu'an Juhe Photovoltaic Power Generation Co., Ltd. 25
Bozhou Guangcheng New Energy Co., Ltd. 25
Bozhou Zhaosheng Agricultural Technology Co., Ltd. 25
Bozhou Xieying Solar Power Generation Co., Ltd. 25
Shanghai Ling Rui International Trade Company Limited 25
Shenzhen Hongtulve Industrial Co., Ltd. 25
Sino Great Wall Development (Hengqin) Co., Ltd. 25
SINO GREAT WALL (USA). INC 30
Herabenna Interior Design Guangzhou Co., Ltd. 25
Inrich Me Engineering Co., Limited 17
Sino Great Wall Southwest Construction Engineering Co., Ltd.
(formerly known as Sichuan Dinghui Construction Co., Ltd.) 25
PT.SINO GREAT WALL INVESTMENT INDONESIA 25
PT.SINO GREAT WALL CONSTRUCTION INDONESIA 25
Seven levels of
tax rates from 0%
to 5%,
SINO GREAT WALL INTERNETIONAL non-deductible
ENGINEERING(CNMI)CO., LLC progressive
Shenzhen Yatian Decoration Design Engineering Co., Ltd. 25
Sino Great Wall International Engineering (MACAU) Co., Limited 12
Sino Great Wall Group Co., Limited 17
SGW HP Engineering Construction SDN. BHD 24
SINO GREAT WALL (PHILIPPINES) INTERNATIONAL
CORPORITION 30
Beijing Sino Great Wall Decoration Design Co., Ltd. 25
Suzhou Lvbang Wood Technology Co., Ltd. 25
Sino Heji Environmental Protection Materials Co., Ltd. 25
SINO GREAT WALL INTERNETIONAL ENGINEERING(MM)
CO., LTD 25
Sino Great Wall International Engineering (Thailand) Co., Ltd. 20
4.2 Tax preference
(1) Approved by the Beijing Municipal Office, SAT under the Circular on Approval of Tax
Types in 2013, the taxable income of Sino Great Wall Design was calculated at 10% of
total income.
Notes to the Financial Statements Page 28
SINO GREAT WALL CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
(2) According to the provisions of the Circular of the State Administration of Taxation on
Issuing the Tentative Measures for the Collection and Administration of Income Tax on
Enterprises That Have Operations in Different Regions and That Pay Taxes in a
Consolidated Manner (G.S.F. [2008] No. 28) issued on March 10, 2008, for business
institutions and establishments without the status of a legal person that are established in
different regions within the territory of China, namely those engaging in production and
operating activities in different regions, their head offices (parent companies) are
enterprises that pay taxes in a consolidated manner. The parent company pays taxes in a
consolidated manner. Head office and branches prepay enterprise income tax in installment,
50% of which is shared by all branches and 50% of which is prepaid by the head office.
Branches share the prepayments in the proportion of 35%, 35% and 30% of operating
income, employee compensation and total assets; final settlement of annual enterprise
income tax shall be made by the parent company at the tax authority and will no longer be
allocated to branches.
(3) The Company's subsidiaries Sino Great Wall Group Co., Limited (hereinafter referred to as
"Sino Hong Kong") and Inrich Me Engineering Co., Limited (hereinafter referred to as
"Inrich Me Engineering") are enterprises established in the Hong Kong Special
Administrative Region and are subject to enterprise profit tax at the rate of 16.5%; Sino
Great Wall International Engineering (MACAU) Co., Limited (hereinafter referred to as
"Sino Macau") is an enterprise established in the Macao Special Administrative Region and
is subject to complementary income tax at the progressive rate.
(4) The Company's wholly-owned subsidiary Sino Great Wall International Engineering Co.,
Ltd. (hereinafter referred to as "Sino International") obtained the high-tech enterprise
certificate (No.: GR201511003125) jointly approved and issued by Beijing Municipal
Science and Technology Commission, Beijing Municipal Finance Bureau, Beijing
Municipal Office, SAT and Beijing Local Taxation Bureau on November 24, 2015. The
certificate was issued on November 24, 2015 and valid for 3 years, so Sino International
would pay enterprise income tax at the rate of 15% in 2015, 2016 and 2017.
(5) The Company's wholly-owned subsidiary Wuhan Commercial Workers Hospital Co., Ltd.
was entitled to the exemption of value-added taxes since May 1, 2016 in accordance with
the Notice of the Ministry of Finance and the State Administration of Taxation on
Implementing the Pilot Program of Replacing Business Tax with Value-Added Tax in an
All-round Manner (Cai Shui [2016] No.36).
5. Notes to the items of consolidated financial statements
5.1 Cash and cash equivalents
Balance as at Balance as at
Item
December 31, 2016 January 1, 2016
Cash on hand 2,974,883.16 1,349,587.20
Bank deposits 940,730,439.25 343,390,159.56
Other monetary funds 397,110,499.42 350,644,814.55
Total 1,340,815,821.83 695,384,561.31
Including: Total amount deposited abroad 197,496,287.50 60,170,773.67
Cash or cash equivalents being restricted for use due to mortgage, pledge or freezing, or being
placed overseas with restrictions on fund repatriation as follows:
Balance as at Balance as at
Item
December 31, 2016 January 1, 2016
Bank acceptance bills margin 140,689,860.21 46,497,936.83
Performance bond 255,913,019.19 64,202,294.79
Deposits for peasant laborers 507,620.02 1,532,920.07
Term deposits or call deposits for guarantee
Notes to the Financial Statements Page 29
SINO GREAT WALL CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
Balance as at Balance as at
Item
December 31, 2016 January 1, 2016
Funds placed overseas with restrictions on fund
repatriation 405,652.81
Total 397,110,499.42 112,638,804.50
5.2 Financial assets measured at fair value through current profit and loss
5.2.1 Financial assets measured at fair value through current profit and loss
Balance as at Balance as at
Item
December 31, 2016 January 1, 2016
Money market fund 1,102,961.04
Total 1,102,961.04
5.3 Notes receivable
5.3.1 Notes receivable by category
Balance as at Balance as at
Item
December 31, 2016 January 1, 2016
Bank acceptance bills 21,300,446.44 4,040,251.87
Commercial acceptance bills 1,053,090,196.14 216,408,496.07
Total 1,074,390,642.58 220,448,747.94
5.3.2 Pledged notes receivable of the Company as at December 31, 2016
Pledged amount as at
Item
December 31, 2016
Bank acceptance draft -
Commercial acceptance draft 98,645,997.87
Total 98,645,997.87
5.3.3 Notes receivable endorsed or discounted by the Company as at December 31,
2016 but not expired on the balance sheet date
Amount of Amount
derecognition as underecognized
Item
at December 31, as at December
2016 31, 2016
Bank acceptance draft 207,110,526.41
Commercial acceptance draft 345,762,089.05
Total 207,110,526.41 345,762,089.05
5.4 Accounts receivable
5.4.1 Disclosure of accounts receivable by category
Balance as at December 31, 2016
Book balance Provision for bad debts
Category
Proportion Proportion of Book value
Amount
(%) Amount provision (%)
Receivables that are individually significant
but with provision for bad debts made on an
individual basis
Receivables subject to provisions for bad
debts on credit risk characteristics basis 4,148,182,356.26 99.91 423,012,147.95 10.20 3,725,170,208.31
Receivables that are individually
insignificant but with provision for bad
debts made on an individual basis 3,844,309.34 0.09 3,844,309.34 100.00 -
Total 4,152,026,665.60 100.00 426,856,457.29 10.28 3,725,170,208.31
Notes to the Financial Statements Page 30
SINO GREAT WALL CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
(Continued)
Balance as at January 1, 2016
Book balance Provision for bad debts
Category
Proportion Proportion of Book value
Amount (%) Amount provision (%)
Receivables that are individually
significant but with provision for bad
debts made on an individual basis
Receivables subject to provisions for bad
debts on credit risk characteristics basis 2,638,742,183.89 100.00 285,934,096.56 10.84 2,352,808,087.33
Receivables that are individually
insignificant but with provision for bad
debts made on an individual basis
Total 2,638,742,183.89 100.00 285,934,096.56 10.84 2,352,808,087.33
In the portfolio, accounts receivable with the provision for bad debts made under the
aging analysis method:
Balance as at December 31, 2016
Aging Account Provision for Proportion of
receivable bad debts provision (%)
Within1 year 2,981,476,004.74 149,073,800.25 5.00
1-2 years 665,268,747.44 66,526,874.75 10.00
2-3 years 281,948,783.56 84,584,635.07 30.00
3-4 years 177,703,424.82 88,851,712.41 50.00
4-5 years 39,051,351.16 31,241,080.93 80.00
Over 5 years 2,734,044.54 2,734,044.54 100.00
Total 4,148,182,356.26 423,012,147.95
5.4.2 Provision, reversal or recovery of bad debts in 2016
The amount of the provision for bad debts in 2016 was RMB 127,789,717.16; the
amount of increase in bad debts on a consolidated basis in 2016 was RMB
13,132,643.57; and no bad debts were recovered or reversed in 2016.
5.4.3 Accounts receivable actually written off in 2016
No accounts receivable were actually written off during the reporting period.
5.4.4 Top five of accounts receivable by the debtor
Balance as at December 31, 2016
Proportion in the
Name of company Provision for
Account receivable total accounts
bad debts
receivable (%)
China Harbour Engineering Company
Ltd. 672,067,475.39 16.19 33,644,960.56
CHINA CENTRAL ASIA GROUP Co.
Ltd 436,859,602.82 10.52 21,842,980.14
PowerChina Construction Group Ltd. 302,978,738.20 7.30 15,148,936.91
Oxley Diamond (Cambodia) Co., Ltd 282,328,914.30 6.80 14,116,445.72
Henan No.1 Thermal Power
Construction Co., Ltd. 203,103,421.33 4.89 13,042,616.76
Total 1,897,338,152.04 45.70 97,795,940.09
Notes to the Financial Statements Page 31
SINO GREAT WALL CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
5.4.5 Accounts receivable derecognized due to the transfer of financial assets
Gains or losses
Amount Method of financial assets
Name of company Project on
derecognized transfer
derecognition
Xiamen Jiayu Real Estate Xiamen Semi-hill Transfer of creditors’
Development Co., Ltd. Grand View B03 14,160,461.27 right (without recourse) 1,621,895.35
Apartments of Jinan
Jinan Haier Green Town Property National Games Transfer of creditors’
Co., Ltd. Village 10,296,979.40 right (without recourse) 1,179,384.11
Building No. 1,
Zhongda Square,
Guangzhou Poly Pearl Transfer of creditors’
Poly Real Estate Group Co., Ltd River New Town 5,566,496.88 right (without recourse) 637,569.30
Qingdao Green Town Jiaozhou Bay Jiaozhou Bay Sheraton Transfer of creditors’
Real Estate Development Co., Ltd. Hotel 5,151,220.21 right (without recourse) 590,004.80
Dalian Aonan House Development Dalian Mingxiu Manor Transfer of creditors’
Co., Ltd. Type B House 4,695,452.00 right (without recourse) 537,802.52
Chaobai River
Daweicheng Phase 2
Dachang Jingyu Real Estate Stone Curtain Wall Transfer of creditors’
Development Co., Ltd. Project 4,664,024.76 right (without recourse) 534,202.94
Dalian Red Star
Dalian Zhengqian Property Co., Coastal Community Transfer of creditors’
Ltd. Project 4,237,549.39 right (without recourse) 485,355.77
Hohhot Daya
Inner Mongolia Yitai Property Co., Comprehensive Transfer of creditors’
Ltd. Building 4,212,745.43 right (without recourse) 482,514.81
Panyu Poly Transfer of creditors’
Poly Real Estate Group Co., Ltd Champagne Mansion 4,191,403.58 right (without recourse) 480,070.38
Dalian Zhengqian Property Co., Transfer of creditors’
Ltd. Dalian Red Star Sea 2,474,061.00 right (without recourse) 283,371.28
Tangshan Hengrong Real Estate Transfer of creditors’
Development Co., Ltd. Tang City 101 2,105,541.40 right (without recourse) 241,162.19
Zhuhai Poly Golden
Bay Project, No. 9
Poly (Zhuhai) Real Estate model building and Transfer of creditors’
Development Co., Ltd. model room in the hall 2,078,996.00 right (without recourse) 238,121.76
Inner Mongolia Transfer of creditors’
Chifeng Wanda Plaza Co., Ltd. Chifeng Wanda Hotel 1,437,783.42 right (without recourse) 164,679.26
Hangzhou Zhongtian
Project Plot No. 25
Hangzhou Gemdale Zhongtian Real Block A High-rise Transfer of creditors’
Estate Development Co., Ltd. indoor decoration 1,199,168.80 right (without recourse) 137,349.07
Total 66,471,883.54 7,613,483.54
Note: On June 25, 2016, the Company and Dagang Financing Lease (Shanghai) Co.,
Ltd. signed an agreement on transfer of creditors’ right (No.: BLW-SZDG-2016002),
according to which the Company transferred 14 items of accounts receivable of
RMB66,471,883.54 to Dagang Financing Lease (Shanghai) Co., Ltd. at a transfer
price of RMB 58,858,400.00 without recourse as agreed therein. The Company
derecognized accounts receivable in 2016, and included the loss of RMB 7,613,483.54
on transfer in non-operating expenses.
Notes to the Financial Statements Page 32
SINO GREAT WALL CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
5.5 Advances to suppliers
5.5.1 Advances to suppliers by aging
Balance as at December 31, 2016 Balance as at January 1, 2016
Aging Proportion Proportion
Book balance Book balance
(%) (%)
Within 1 year 311,193,306.31 97.49 70,146,608.20 90.27
1-2 years 5,789,414.72 1.81 5,258,018.08 6.77
2-3 years 1,269,897.25 0.40 1,090,606.22 1.40
Over 3 years 954,180.35 0.30 1,212,335.88 1.56
Total 319,206,798.63 100.00 77,707,568.38 100.00
5.5.2 Top five advances by suppliers
Proportion in the total
Balance as at
balance of advances to
Supplier December 31,
suppliers as at December
2016
31, 2016 (%)
Qingyuan Hefeng New Energy
Technology Co., Ltd. 165,000,000.00 51.69
Nanjing Zhongjian Chemical
Equipment Manufacturing Co., Ltd. 40,676,756.76 12.74
Shenyang Zhaohuan Modern
Architectural Industrial Park Co.,
Ltd. 4,639,008.00 1.45
GULFLIGHTSELECTRICALENGI
NEERINGWLL 4,314,087.18 1.35
CSSC (Cambodia) Co., Ltd. 3,651,831.04 1.15
Total 218,281,682.98 68.38
5.6 Other receivables
5.6.1 Disclosure of other receivables by category:
Balance as at December 31, 2016
Book balance Provision for bad debts
Category
Proportion Proportion of Book value
Amount Amount
(%) provision (%)
Other receivables with individually
significant amount and subject to separate
provision for bad debts
Other receivables with provision for bad
debts accrued by credit risk features
portfolio 709,527,391.05 99.93 58,515,258.14 8.25 651,012,132.91
Other receivables with individually
insignificant amount but subject to
individual provision for bad debts 500,000.00 0.07 500,000.00 100.00
Total 710,027,391.05 100.00 59,015,258.14 8.31 651,012,132.91
(Continued)
Balance as at January 1, 2016
Book balance Provision for bad debts
Category
Proportion Proportion of Book value
Amount (%) Amount provision (%)
Other receivables with significant single
amount and individual provision for bad
debts
Notes to the Financial Statements Page 33
SINO GREAT WALL CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
Balance as at January 1, 2016
Book balance Provision for bad debts
Category
Proportion Proportion of Book value
Amount (%) Amount provision (%)
Other receivables with provision for bad
debts accrued by portfolio with credit risk
features 261,942,379.50 99.82 21,989,493.39 8.39 239,952,886.11
Other receivables with insignificant single
amount and individual provision for bad
debts 478,000.00 0.18 478,000.00 100
Total 262,420,379.50 100 22,467,493.39 8.56 239,952,886.11
Other receivables subject to provision for bad debts under aging analysis method:
Balance as at December 31, 2016
Aging Provision for bad Proportion of
Other receivables
debts provision (%)
Within 1 year 574,225,645.55 28,714,087.87 5.00
1-2 years 72,506,847.29 7,250,684.74 10.00
2-3 years 50,949,805.67 15,284,941.71 30.00
3-4 years 8,772,720.70 4,386,360.35 50.00
4-5 years 965,941.84 772,753.47 80.00
Over 5 years 2,106,430.00 2,106,430.00 100.00
Total 709,527,391.05 58,515,258.14
5.6.2 Provision, reversal or recovery of bad debts in 2016
The amount of the provision for bad debts in 2016 was RMB 35,012,661.40; the
amount of increase in bad debts on a consolidated basis in 2016 was RMB
1,535,103.35; and no bad debts were recovered or reversed in 2016.
5.6.3 Other receivables actually written off in 2016
Item Written-off amount
Actual write-off of other receivables 1,485,463.34
5.6.4 Classification of other receivables by the nature of payment
Book balance as at Book balance as at
Nature of Payment
December 31, 2016 January 1, 2016
Bidding margins, performance bonds
and deposits 366,310,322.14 168,213,515.22
Petty cash and current accounts
between individuals 59,867,918.12 40,331,852.58
Current accounts among entities 282,984,039.72 53,815,203.95
Others 865,111.07 59,807.75
Total 710,027,391.05 262,420,379.50
5.6.5 Top five of other receivables by the debtor
Proportion in total Provision for
Balance as at balance of other bad debts
Name of company Nature December 31, Aging receivables as at Balance as at
2016 December 31, December 31,
2016 (%) 2016
PowerChina Construction Current accounts Within 1
Group Ltd. among entities 259,423,663.63 year 36.54 12,971,183.18
Bidding margins,
PT.WANXIANGNICKELIN performance bonds Within 1
DONESIA and deposits 68,000,000.00 year 9.58 3,400,000.00
Notes to the Financial Statements Page 34
SINO GREAT WALL CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
Proportion in total Provision for
Balance as at balance of other bad debts
Name of company Nature December 31, Aging receivables as at Balance as at
2016 December 31, December 31,
2016 (%) 2016
Chengdu Qingyuan Real Bidding margins,
Estate Development Co., performance bonds Within 1
Ltd. and deposits 30,000,000.00 year 4.23 1,500,000.00
Leading Group Office for
Reconstruction and
Extension Project of
Jingfeng Hotel of the Bidding margins,
General Logistics performance bonds
Department of PLA and deposits 30,000,000.00 2-3 years 4.23 9,000,000.00
Bidding margins,
Shenzhen Jinshawan Hotel performance bonds Within 1
Co., Ltd. and deposits 27,655,391.29 year 3.88 1,382,769.57
Total / 415,079,054.92 58.46 28,253,952.75
5.7 Inventories
5.7.1 Classification of inventories
Balance as at December 31, 2016 Balance as at January 1, 2016
Item Provision for Provision for
Book balance Book value Book balance Book value
depreciation depreciation
Raw materials 12,078,945.75 - 12,078,945.75 13,086,673.87 13,086,673.87
Stock
commodities 43,492,877.62 1,404,765.68 42,088,111.94 7,538,609.26 1,352,585.08 6,186,024.18
Engineering
construction 282,911,079.94 5,051,867.60 277,859,212.34 148,457,514.11 148,457,514.11
Goods in transit - - - 403,456.75 403,456.75
Goods in
progress 668,934.23 - 668,934.23
Low-cost
consumables 209,726.10 - 209,726.10
Total 339,361,563.64 6,456,633.28 332,904,930.36 169,486,253.99 1,352,585.08 168,133,668.91
Notes to the Financial Statements Page 35
SINO GREAT WALL CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
5.7.2 Inventory provision
Balance as at Increase in 2016 Decrease in 2016 Balance as at
Item January 1, Reversal or December 31,
Provision Others Others
2016 write-off 2016
Stock commodities 1,352,585.08 52,180.60 1,404,765.68
Engineering construction 5,051,867.60 5,051,867.60
Total 1,352,585.08 5,104,048.20 6,456,633.28
5.8 Non-current assets maturing within one year
Item Balance as at December 31, 2016 Balance as at January 1, 2016
Long-term borrowings maturing within one year 13,462,942.89 15,717,270.60
Total 13,462,942.89 15,717,270.60
5.9 Other current assets
Item Balance as at December 31, 2016 Balance as at January 1, 2016
Input tax 35,248,102.26 14,138,411.87
Income tax expenses prepaid 202,092.21
Total 35,450,194.47 14,138,411.87
5.10 Fixed assets
5.10.1 Fixed assets
Electronic
Buildings and Machinery Transportation
Item equipment and Total
constructions equipment equipment
other equipment
1. Original book value
(1) Balance as at January 1, 2016 10,193,831.80 15,124,117.90 27,339,595.16 5,372,383.58 58,029,928.44
(2) Increase in 2016 57,775,649.24 73,898,441.45 8,823,721.31 10,286,188.75 150,784,000.75
- Purchase 17,027,997.40 19,620,984.99 6,436,507.07 1,848,909.82 44,934,399.28
- Transfer of construction in progress 5,898,702.19 4,664,068.70 10,562,770.89
- Increase due to business combinations 34,848,949.65 45,459,977.76 2,387,214.24 8,424,278.93 91,120,420.58
- Others 4,153,410.00 13,000.00 4,166,410.00
(3) Decrease in 2016 7,768,106.00 - 952,895.00 8,721,001.00
- Disposal or write-off 3,614,696.00 939,895.00 4,554,591.00
- Others 4,153,410.00 13,000.00 4,166,410.00
Notes to the Financial Statements Page 36
SINO GREAT WALL CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
Electronic
Buildings and Machinery Transportation
Item equipment and Total
constructions equipment equipment
other equipment
(4) Balance as at December 31, 2016 67,969,481.04 81,254,453.35 36,163,316.47 14,705,677.33 200,092,928.19
2. Accumulated depreciation - - - -
(1) Balance as at January 1, 2016 74,769.21 624,167.49 11,569,621.16 1,915,154.95 14,183,712.81
(2) Increase in 2016 15,053,031.73 33,414,280.49 4,895,747.20 8,483,410.78 61,846,470.20
- Provision 655,224.14 3,366,867.97 3,215,361.21 1,631,494.27 8,868,947.59
- Others 14,397,807.59 30,047,412.52 1,680,385.99 6,851,916.51 52,977,522.61
(3) Decrease in 2016 - 3,525,400.06 - 895,602.49 4,421,002.55
- Disposal or write-off 3,097,944.85 891,142.76 3,989,087.61
- Others 427,455.21 4,459.73 431,914.94
(4) Balance as at December 31, 2016 15,127,800.94 30,513,047.92 16,465,368.36 9,502,963.24 71,609,180.46
3. Provision for impairment - - - -
(1) Balance as at January 1, 2016 - - - - -
(2) Increase in 2016 - - - - -
- Provision - - - - -
- Others - - - - -
(3) Decrease in 2016 - - - - -
- Disposal or write-off - - - - -
- Others - - - - -
(4) Balance as at December 31, 2016 - - - - -
4. Book value - - - -
(1) Book value as at December 31, 2016 52,841,680.10 50,741,405.43 19,697,948.11 5,202,714.09 128,483,747.74
(2) Book value as at January 1, 2016 10,119,062.59 14,499,950.41 15,769,974.00 3,457,228.63 43,846,215.63
5.10.2 Temporarily idle fixed assets
There were no temporarily idle fixed assets in 2016.
5.10.3 Fixed assets with pending certificate of title
Item Book value Reason for absence of certificate of title
Suzhou factory 5,751,234.64 The relevant formalities are going through
Notes to the Financial Statements Page 37
SINO GREAT WALL CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
5.11 Construction in process
5.11.1 Construction in progress
Balance as at December 31, 2016 Balance as at January 1, 2016
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Suzhou Lvbang Plant 4,978,670.79 4,978,670.79
Kuwait tower cranes 5,038,257.45 5,038,257.45
Total 10,016,928.24 10,016,928.24
5.11.2 Changes in important construction in progress in 2016
Balance as Accumulated Including: Interest
Balance as Transfer into Other Percentage
Increase at capitalization Interest capitalization Sources of
Project Budget at January fixed assets in decreases of
in 2016 December amount of capitalized rate in 2016 funds
1, 2016 2016 in 2016 completion
31, 2016 interest in 2016 (%)
Suzhou Lvbang Plant 6,478,670.79 4,978,670.79 920,031.40 5,898,702.19 100% Self-raised
Kuwait tower cranes 5,298,257.45 5,038,257.45 202,074.12 4,664,068.70 576,262.87 100% Self-raised
Total 11,776,928.24 10,016,928.24 1,122,105.52 10,562,770.89 576,262.87
5.12 Intangible assets
5.12.1 Intangible assets
Item Land use right Software Total
1. Original book value
(1) Balance as at January 1, 2016 7,714,044.00 2,395,059.29 10,109,103.29
(2) Increase in 2016 100,906,958.59 2,021,556.78 102,928,515.37
- Purchase 1,073,583.44 1,073,583.44
-Internal research and development - - -
- Increase due to business combinations 100,906,958.59 947,973.34 101,854,931.93
(3) Decrease in 2016 - - -
- Disposal - - -
(4) Balance as at December 31, 2016 108,621,002.59 4,416,616.07 113,037,618.66
2. Accumulated amortization - - -
(1) Balance as at January 1, 2016 181,202.41 660,154.55 841,356.96
(2) Increase in 2016 4,873,410.93 1,119,407.22 5,992,818.15
- Provision 354,160.54 755,571.31 1,109,731.85
- Increase due to business combinations 4,519,250.39 363,835.91 4,883,086.30
(3) Decrease in 2016
- Disposal
(4) Balance as at December 31, 2016 5,054,613.34 1,779,561.77 6,834,175.11
3. Provision for impairment - - -
Notes to the Financial Statements Page 38
SINO GREAT WALL CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
Item Land use right Software Total
(1) Balance as at January 1, 2016 - - -
(2) Increase in 2016
- Provision
(3) Decrease in 2016 - - -
- Disposal - - -
(4) Balance as at December 31, 2016 - - -
4. Book value - - -
(1) Book value as at December 31, 2016 103,566,389.25 2,637,054.30 106,203,443.55
(2) Book value as at January 1, 2016 7,532,841.59 1,734,904.74 9,267,746.33
5.12.2 Land use right with pending certificate of title
There was no land use right with pending certificate of title in 2016.
5.13 Goodwill
5.13.1 Original book value of goodwill
Decrease in
Balance as at Increase in 2016
2016 Balance as at
Name of the investee or matters forming goodwill January 1,
Formed from business December 31, 2016
2016 Disposal
combinations
Shenzhen Yatian Decoration Design Engineering Co., Ltd. 6,724,316.91 6,724,316.91
Wuhan Commercial Workers Hospital Co., Ltd. 27,257,314.49 27,257,314.49
Sino Great Wall Southwest Construction Engineering Co., Ltd. 17,948,978.53 17,948,978.53
Sino Great Wall Jianyee Engineering Co., Ltd. 6,943,534.86 6,943,534.86
Total 6,724,316.91 52,149,827.88 - 58,874,144.79
Remarks: 1. Natural person Pan Huan and the Company's wholly-owned subsidiary Sino Great Wall International Engineering Co., Ltd.
signed an Equity Transfer Agreement on November 25, 2015. Pan Huan transferred 70% of his equities held in Shenzhen Yatian Decoration
Design Engineering Co., Ltd. to Sino Great Wall International Engineering Co., Ltd.. After the transfer, the Company's wholly-owned
subsidiary Sino Great Wall International Engineering Co., Ltd. held 70% of equities in Shenzhen Yatian Decoration Design Engineering Co.,
Ltd.. The price for the transfer of 70% of equities in Shenzhen Yatian Decoration Design Engineering Co., Ltd. by the Company's
wholly-owned subsidiary Sino Great Wall International Engineering Co., Ltd. was RMB 4 million. The Company's wholly-owned subsidiary
Sino Great Wall International Engineering Co., Ltd. takes November 25, 2015 as the acquisition date and total combination costs on the
acquisition date are RMB 4 million. The difference between RMB-2,724,316.91, namely the fair value of identifiable net assets of 70% of the
equities in Shenzhen Yatian Decoration Design Engineering Co., Ltd. acquired by the Company's wholly-owned subsidiary Sino Great Wall
International Engineering Co., Ltd. on the acquisition date, and the combination costs was RMB 6,724,316.91, which should be included in
goodwill.
Notes to the Financial Statements Page 39
SINO GREAT WALL CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
2. On May 1, 2016, Wuhan Shangzhi Hospital Co., Ltd. and its management shareholders signed a Contract on Equity Transfer and Asset
Acquisition with the Company, specifying that Wuhan Shangzhi Hospital Co., Ltd. and its management shareholders transfer 100% of equities
in Wuhan Shangzhi Hospital Co., Ltd. to the Company. After the equity transfer, the Company owned 100% of equities in Wuhan Commercial
Workers Hospital Co., Ltd.. The consideration of the Company for 100% of equities transferred by Wuhan Commercial Workers Hospital Co.,
Ltd. was RMB 97 million. The Company took June 21, 2016 as the acquisition date. Total combination costs on the acquisition date were
RMB 97 million. The difference between RMB 69,742,685.51, namely the fair value of identifiable net assets of 100% of the equities in
Wuhan Shangzhi Hospital Co., Ltd. acquired by the Company on the acquisition date, and the combination costs was RMB 27,257,314.49,
which should be included in goodwill.
3. Natural persons Ye Jiajun and Zhang Shizhong signed an Equity Transfer Agreement with the Company on July 27, 2016. Ye Jiajun and
Zhang Shizhong transferred 100% of his equities held in Sichuan Dinghui Construction Co., Ltd. to Sino Great Wall International Engineering
Co., Ltd.. After the transfer, the Company's wholly-owned subsidiary Sino Great Wall International Engineering Co., Ltd. held 100% of
equities in Sichuan Dinghui Construction Co., Ltd.. The price made by the Company's wholly-owned subsidiary Sino Great Wall International
Engineering Co., Ltd. for receiving 100% of equities in Sichuan Dinghui Construction Co., Ltd. was RMB 18 million. The Company took
August 9, 2016 as the acquisition date. Total combination costs on the acquisition date were RMB 18 million. The difference between RMB
51,021.47, namely the fair value of identifiable net assets of 100% of the equities in Sichuan Dinghui Construction Co., Ltd. acquired by the
Company, and the combination costs was RMB 17,948,978.53, which should be included in goodwill. After the acquisition, Sichuan Dinghui
Construction Co., Ltd. was renamed Sino Great Wall Southwest Construction Engineering Co., Ltd..
4. Sichuan Haoyao Constructional Engineering Co., Ltd. and its parent company Chengdu Ruihe Hongsheng Technology Co., Ltd. signed an
Agreement on Increase in Capital and Share with the Company's wholly-owned subsidiary Sino Great Wall International Engineering Co., Ltd.
on November 9, 2016. They transferred 60% of their equities held in Sichuan Haoyao Constructional Engineering Co., Ltd. to Sino Great Wall
International Engineering Co., Ltd.. After the transfer, the Company's wholly-owned subsidiary Sino Great Wall International Engineering Co.,
Ltd. held 60% of equities in Sichuan Haoyao Constructional Engineering Co., Ltd.. The price made by the Company's wholly-owned
subsidiary Sino Great Wall International Engineering Co., Ltd. for receiving 60% of equities in Sichuan Haoyao Constructional Engineering
Co., Ltd. was RMB 90 million. The Company took November 11, 2016 as the acquisition date. Total combination costs on the acquisition date
were RMB 90 million. The difference between RMB 83,056,465.14, namely the fair value of identifiable net assets of 60% of the equities in
Sichuan Haoyao Constructional Engineering Co., Ltd. acquired by the Company on the acquisition date, and the combination costs was RMB
6,943,534.86, which should be included in goodwill.
Notes to the Financial Statements Page 40
SINO GREAT WALL CO., LTD.
FOR THE YEAR ENDED DECEMBER 31, 2016
NOTES TO THE FINANCIAL STATEMENTS
5.14 Long-term deferred expenses
Balance as at Increase in Amortization in Balance as at
Item Other decreases
January 1, 2016 2016 2016 December 31, 2016
Renovation costs 14,879,816.11 2,567,004.36 5,418,620.60 - 12,028,199.87
Overseas guarantee fees 19,747,240.18 1,856,356.88 13,165,818.10 - 8,437,778.96
Subtotal 34,627,056.29 4,423,361.24 18,584,438.70 - 20,465,978.83
Less: long-term borrowings maturing
within one year 15,717,270.60 13,462,942.89
Total 18,909,785.69 7,003,035.94
5.15 Deferred income tax assets and deferred income tax liabilities
5.15.1 Deferred income tax assets without offset
Balance as at December 31, 2016 Balance as at January 1, 2016
Deductible Deductible
Item Deferred tax Deferred tax
temporary temporary
assets assets
differences differences
Provision for asset
impairment 484,110,666.81 74,623,400.23 308,401,589.95 46,440,178.39
Deductible losses 2,265,150.21 566,287.55 4,729,047.45 1,171,953.41
Inventory provision 6,456,633.28 1,108,971.56 1,352,585.08 338,146.27
Total 492,832,450.30 76,298,659.34 314,483,222.48 47,950,278.07
5.15.2 Deferred income tax liabilities without offset
Balance as at December 31, 2016 Balance as at January 1, 2016
Taxable Deferred Taxable Deferred
Item
temporary income tax temporary income tax
differences liabilities differences liabilities
Gains from changes in fair
value of financial assets
measured at fair value
through profit and loss 102,961.04 15,444.16
Value increment of assets
due to combinations not
under common control by
evaluation 109,879,555.06 27,469,888.77
Total 109,879,555.06 27,469,888.77 102,961.04 15,444.16
5.15.3 Details of unrecognized deferred income tax assets
Balance as at Balance as at
Item
December 31, 2016 January 1, 2016
Deductible temporary differences 1,761,048.62
Deductible losses 29,368,743.01
Total 31,129,791.63
5.16 Other non-current assets
Balance as at Balance as at
Item
December 31, 2016 January 1, 2016
PPP project investment 48,960,000.00
Advances for purchase of long-term assets 67,942,258.30 95,353,390.28
Total 116,902,258.30 95,353,390.28
Notes to the Financial Statements Page 41
SINO GREAT WALL CO., LTD.
FOR THE YEAR ENDED DECEMBER 31, 2016
NOTES TO THE FINANCIAL STATEMENTS
1. Details of equity investments of PPP project companies
Registered Subscribed Increase Balance as at
Shareho Balance as at
capital contributions in 2016 Decrease December 31,
Item lding January 1,
(RMB (RMB (RMB in 2016 2016 (RMB
ratio 2016
'0,000) '0,000) '0,000) '0,000)
Luyi Shuguang Medical
Industrial Investment and
Construction Co., Ltd. 9,600.00 4,896.00 51.00% 4,896.00 4,896.00
Total 9,600.00 4,896.00 4,896.00 4,896.00
5.17 Short-term borrowings
5.17.1 Short-term borrowings
Balance as at Balance as at
Item
December 31, 2016 January 1, 2016
Guaranteed borrowings 1,621,515,110.00 210,000,000.00
Commercial acceptance bills endorsed or
discounted but not expired on the balance sheet
date 344,543,247.59 15,408,496.07
Total 1,966,058,357.59 225,408,496.07
1. Notes to short-term borrowings:
See Note 10.4 "Related-party transactions" for the related-party guarantee for short-term
borrowings.
2. There were no outstanding short-term borrowings due as at December 31, 2016.
5.18 Notes payable
Balance as at Balance as at
Type
December 31, 2016 January 1, 2016
Bank acceptance bill 397,450,000.00 143,410,167.17
Commercial acceptance bill 309,433,375.54
Total 706,883,375.54 143,410,167.17
Total notes payable due but unpaid as at December 31, 2016 were RMB 0.00.
The amount of notes that will expire in next accounting period was RMB 706,883,375.54.
5.19 Accounts payable
5.19.1 Presentation of accounts payable:
Balance as at Balance as at
Item
December 31, 2016 January 1, 2016
Payments for projects 1,295,611,654.20 1,331,950,114.27
Payments for purchase of long-term
assets 7,923,625.18 669,840.50
Payment for purchase of medicines 10,413,710.87
Total 1,313,948,990.25 1,332,619,954.77
5.19.2 Significant accounts payable with aging over one year:
Balance as at
Reasons for failure of repayment or
Item December 31,
carry-forward
2016
Before the
CUMMINSQATAR RMB 914,723.58 for those within 1 year settlement
LLC 11,660,032.30 and RMB 10,745,308.72 within 1-2 years period
Notes to the Financial Statements Page 42
SINO GREAT WALL CO., LTD.
FOR THE YEAR ENDED DECEMBER 31, 2016
NOTES TO THE FINANCIAL STATEMENTS
Balance as at
Reasons for failure of repayment or
Item December 31,
carry-forward
2016
GULF
REINFORCEMEN Before the
T STEEL CO. RMB 658955.18 for those within 1 year settlement
W.L.L 10,424,868.23 and RMB 9,765,913.05 within 1-2 years period
Before the
Rezayat Trading Co. settlement
Limited 10,782,975.37 RMB 10,782,975.37 within 1-2 years period
RMB 11,975,790.38 for those within 1 Before the
CHHE GROUP year and RMB 12,588,011.67 within 1-2 settlement
CO.,LTD 24,563,802.05 years period
Total 57,431,677.95 /
5.20 Advances from customers
5.20.1 Presentation of advances from customers
Balance as at Balance as at
Item
December 31, 2016 January 1, 2016
Payments for projects 572,743,695.28 64,963,842.60
Advances for medical services 1,040,377.30
Total 573,784,072.58 64,963,842.60
5.21 Employee compensation payable
5.21.1 Presentation of employee compensation payable
Balance as at Balance as at
Increase in Decrease in
Item January 1, December 31,
2016 2016
2016 2016
Short-term compensation 11,696,032.04 337,653,647.65 331,711,930.27 17,637,749.42
Post-employment benefits -
defined contribution plans 973,587.16 13,708,204.80 13,521,994.69 1,159,797.27
Total 12,669,619.20 351,361,852.45 345,233,924.96 18,797,546.69
5.21.2 Presentation of short-term compensation
Balance as at Balance as at
Increase in Decrease in
Item January 1, December 31,
2016 2016
2016 2016
(1) Salaries, bonuses,
allowances and subsidies 10,957,918.68 303,347,680.62 297,388,634.57 16,916,964.73
(2) Employee welfare - 14,636,878.07 14,636,878.07 -
(3) Social insurance
premiums 678,746.36 9,768,469.65 9,826,271.31 620,944.70
Including: medical
insurance premiums 567,258.19 8,753,518.62 8,804,708.07 516,068.74
Work-related injury
insurance premium 48,777.45 300,584.33 322,991.86 26,369.92
Maternity insurance
premiums 62,710.72 714,366.70 698,571.38 78,506.04
(4) Housing provident funds 59,367.00 8,386,377.05 8,345,904.06 99,839.99
(5) Labor union funds and
employee education funds - 1,514,242.26 1,514,242.26 -
Total 11,696,032.04 337,653,647.65 331,711,930.27 17,637,749.42
5.21.3 Presentation of defined contribution plans
Notes to the Financial Statements Page 43
SINO GREAT WALL CO., LTD.
FOR THE YEAR ENDED DECEMBER 31, 2016
NOTES TO THE FINANCIAL STATEMENTS
Balance as at Balance as at
Increase in Decrease in
Item January 1, December 31,
2016 2016
2016 2016
Basic endowment insurance
premiums 928,655.00 13,138,845.28 12,936,675.43 1,130,824.85
Unemployment insurance
premium 44,932.16 569,359.52 585,319.26 28,972.42
Total 973,587.16 13,708,204.80 13,521,994.69 1,159,797.27
5.22 Taxes and surcharges payable
Balance as at Balance as at
Taxes and surcharges
December 31, 2016 January 1, 2016
Value-added tax 12,062,605.90 367,314.45
Business tax 83,297,969.10 99,853,626.46
Enterprise income tax 207,849,865.19 172,280,720.23
Individual income tax 1,515,889.41 545,880.47
Urban maintenance and construction tax 4,725,964.11 6,413,578.69
Education surtax 3,694,729.45 5,106,621.62
Stamp tax and other taxes 336,646.62 258,548.19
Total 313,483,669.78 284,826,290.11
5.23 Interest payable
Balance as at Balance as at
Item
December 31, 2016 January 1, 2016
Interest payable on short-term borrowings 4,710,255.00 330,945.21
Interest payable on long-term borrowings 1,718,238.55 197,024.05
Total 6,428,493.55 527,969.26
5.24 Other payables
5.24.1 Other payables by nature
Balance as at Balance as at
Item
December 31, 2016 January 1, 2016
Bidding margins, performance bonds
and deposits 26,582,761.45 19,625,824.93
Current accounts between individuals
and withholding payables 45,650,286.49 42,269,479.45
Lendings to shareholders - 523,963,781.16
Current accounts between entities 136,613,997.74 49,313,976.16
Others 1,067,929.33 27,914.90
Payments for subscribing shares issued
privately 12,500,000.00
Total 222,414,975.01 635,200,976.60
5.24.2 Other significant payables with aging over one year
Reasons for failure
Balance as at
Item of repayment or
December 31, 2016
carry-forward
Shenzhen Qunguangshun Construction
Labor Co., Ltd. 31,500,000.00 Unexpired yet
Total 31,500,000.00
Notes to the Financial Statements Page 44
SINO GREAT WALL CO., LTD.
FOR THE YEAR ENDED DECEMBER 31, 2016
NOTES TO THE FINANCIAL STATEMENTS
5.25 Non-current liabilities maturing within one year
Balance as at Balance as at
Item
December 31, 2016 January 1, 2016
Long-term borrowings maturing within one year 175,958,998.04 7,135,752.00
Total 175,958,998.04 7,135,752.00
5.26 Other current liabilities
Balance as at Balance as at
Item
December 31, 2016 January 1, 2016
Output tax to be carried forward 30,382,980.72
Total 30,382,980.72
5.27 Long-term borrowings
5.27.1 Classification of long-term borrowings
Balance as at Balance as at
Item
December 31, 2016 January 1, 2016
Pledged borrowings 500,000,000.00 19,480,800.00
Mortgage borrowings 3,175,860.22 10,659,849.14
Guaranteed borrowings 283,683,018.60
Total 786,858,878.82 30,140,649.14
5.28 Estimated liabilities
Balance as at Balance as at
Item Reasons for the formation
December 31, 2016 January 1, 2016
Provision for pending
Pending litigation 13,225,861.70 litigation of the Company
Total 13,225,861.70 /
5.29 Share capital
Increase/Decrease in 2016
Balance as at Balance as at
Issuance Reserves
Item January 1, Bonus December 31,
of new transferred to Others Subtotal
2016 shares 2016
shares share capital
Total amount of
shares 446,906,582.00 1,251,338,429.00 1,251,338,429.00 1,698,245,011.00
5.30 Capital reserve
Balance as at Balance as at
Item Increase in 2016 Decrease in 2016
January 1, 2016 December 31, 2016
Capital premium (share
premium) 394,052,904.72 1,251,338,429.00 -857,285,524.28
Other capital reserves -444,420,766.94 2,356,589.48 -442,064,177.46
Total -50,367,862.22 2,356,589.48 1,251,338,429.00 -1,299,349,701.74
Remark: Increase in other capital reserves of RMB 2,356,589.48 in 2016 was capital reserves
increased due to accounting of interest of borrowings of the controlling shareholders and
associated natural persons to the Company according to the equity transactions; The capital
reserves conversed into share capital of RMB 1,251,338,429.00 in 2016 were the decrease of
capital reserves in 2016.
5.31 Special reserve
Balance as at Balance as at
Item Increase in 2016 Decrease in 2016
January 1, 2016 December 31, 2016
Work safety costs 46,014,941.54 56,095,547.05 36,422,620.45 65,687,868.14
Total 46,014,941.54 56,095,547.05 36,422,620.45 65,687,868.14
Notes to the Financial Statements Page 45
SINO GREAT WALL CO., LTD.
FOR THE YEAR ENDED DECEMBER 31, 2016
NOTES TO THE FINANCIAL STATEMENTS
5.32 Surplus reserve
Balance as at Balance as at
Item Increase in 2016 Decrease in 2016
January 1, 2016 December 31, 2016
Statutory surplus reserves 84,394,441.23 84,394,441.23
Total 84,394,441.23 84,394,441.23
5.33 Undistributed profits
Item Year 2016 Year 2015
Undistributed profits as at the end of last period
before adjustment 755,308,636.19 443,707,019.71
Adjustment to total undistributed profits at the
beginning of the year ("+" for increase and "-" for
decrease)
Undistributed profits at the beginning of the year
after adjustment 755,308,636.19 443,707,019.71
Plus: net profit attributable to owners of the parent
company in the year 473,661,862.67 346,648,651.48
Less: withdrawal of statutory surplus reserves 35,047,035.00
Others
Undistributed profits at the end of the year 1,228,970,498.86 755,308,636.19
5.34 Operating income and operating cost
Amount in 2016 Amount in 2015
Item
Income Cost Income Cost
Primary business 4,662,402,374.17 3,459,377,744.66 4,010,300,741.19 3,165,027,185.66
Other business 2,596,743.00 - 58,258.39
Total 4,664,999,117.17 3,459,377,744.66 4,010,358,999.58 3,165,027,185.66
5.35 Business taxes and surcharges
Item Amount in 2016 Amount in 2015
Business tax 8,128,747.41 71,137,330.61
Urban maintenance and construction tax 597,022.91 4,552,568.01
Education surtax 478,975.13 3,795,770.42
Other taxes 446,784.01
Total 9,651,529.46 79,485,669.04
5.36 Selling expenses
Item Amount in 2016 Amount in 2015
Employee compensation 6,623,108.93 7,480,826.85
Travel expenses 934,104.49 1,055,919.35
Entertainment expenses 469,366.01 898,779.78
Advertising and promotion expenses 2,675.00 155,680.00
Engineering maintenance fees 17,911,593.82 1,431,742.98
Others 4,377,840.02 2,663,223.14
Total 30,318,688.27 13,686,172.10
Notes to the Financial Statements Page 46
SINO GREAT WALL CO., LTD.
FOR THE YEAR ENDED DECEMBER 31, 2016
NOTES TO THE FINANCIAL STATEMENTS
5.37 General and administrative expenses
Item Amount in 2016 Amount in 2015
Employee compensation 127,039,183.19 87,117,818.35
Office costs 9,544,489.51 6,241,300.07
Rental fees 19,084,430.19 12,393,307.35
Travel expenses 12,096,343.79 5,350,149.45
Entertainment expenses 9,828,496.48 6,462,222.69
Depreciation of fixed assets 6,848,917.76 2,339,244.07
Vehicle costs 2,871,639.42 2,586,923.27
Amortization of long-term deferred expenses 4,308,529.48 4,844,357.87
Consulting fees 79,559,745.78 10,069,218.74
Conference expenses 156,486.46 136,778.15
Others 42,592,471.50 17,021,007.85
Total 313,930,733.56 154,562,327.86
5.38 Financial expenses
Category Amount in 2016 Amount in 2015
Interest expenses 130,325,289.46 45,919,707.78
Less: Interest income 3,936,374.12 1,654,394.40
Gains or losses on exchange -75,709,807.87 -7,285,087.59
Discount interest 19,445,217.45 4,863,792.26
Handling charges and others 57,312,903.03 13,022,383.97
Total 127,437,227.95 54,866,402.02
5.39 Losses from asset impairment
Item Amount in 2016 Amount in 2015
Losses on bad debts 164,907,841.91 109,984,519.09
Losses on inventory depreciation 5,104,048.20 1,352,585.08
Total 170,011,890.11 111,337,104.17
5.40 Gains from changes in fair value
Source of the gains from changes in fair value Amount in 2016 Amount in 2015
Financial assets measured at fair value through
current profit and loss 42,553.26
Total 42,553.26
5.41 Investment income
Item Amount in 2016 Amount in 2015
Income from long-term equity investments accounted
for under equity method -
Investment income from disposal of long-term equity
investments -
Investment income received from financial assets
measured at fair value through current profit and loss
during the holding period -
Investment income received from disposal of
financial assets measured at fair value through
current profit and loss 13,448.02
Investment income from held-to-maturity
investments during the holding period -
Investment income of available-for-sale financial
assets during the holding period -
Notes to the Financial Statements Page 47
SINO GREAT WALL CO., LTD.
FOR THE YEAR ENDED DECEMBER 31, 2016
NOTES TO THE FINANCIAL STATEMENTS
Item Amount in 2016 Amount in 2015
Investment income from disposal of
available-for-sale financial assets -
Gains and losses arising from re-measurement of the
remaining equities at the fair value after the loss of
the control -
Others 2,212,902.95
Total 2,226,350.97
5.42 Non-operating income
Amount included in
Item Amount in 2016 Amount in 2015 non-recurring gains and
losses in 2016
Total gains from disposal of non-current
assets 4,455.00
Including: gains from disposal of fixed assets 4,455.00
Government grants 108,121.33 342,246.00 108,121.33
Others 26,318,921.53 34,032.08 26,318,921.53
Total 26,427,042.86 380,733.08 26,427,042.86
Government subsidies included in current profit and loss
Item Amount in 2016 Amount in 2015 Related to assets/income
Rewards for headquarter-mode enterprises
that have made investments in Tongzhou 72,365.00 342,246.00 Related to income
Post subsidy 35,756.33 Related to income
Total 108,121.33 342,246.00 /
5.43 Non-operating expenses
Amount included in
Item Amount in 2016 Amount in 2015 non-recurring gains and
losses in 2016
Total losses from disposal of non-current
assets 564,833.40 85,567.15 564,833.40
Including: losses on disposal of fixed assets 564,833.40 85,567.15 564,833.40
Foreign donations
Others 21,022,106.88 939,828.42 21,022,106.88
Total 21,586,940.28 1,025,395.57 21,586,940.28
5.44 Income tax expenses
5.44.1 Statement of income tax expenses
Item Amount in 2016 Amount in 2015
Current income tax expenses 115,052,974.76 82,948,121.72
Deferred income tax expenses -25,808,113.01 1,740,767.09
Total 89,244,861.75 84,688,888.81
5.44.2 Adjustment process of accounting profits and income tax expenses
Item Amount in 2016
Total profit 561,337,756.70
Income tax expenses calculated at the statutory [or applicable]
tax rate 140,334,439.18
Effect of different tax rate applicable to subsidiaries 1,009,583.31
Effect of adjustment on income tax in previous periods
Effect of tax-exempt income
Effect of non-deductible costs, expenses and losses 42,837,964.72
Notes to the Financial Statements Page 48
SINO GREAT WALL CO., LTD.
FOR THE YEAR ENDED DECEMBER 31, 2016
NOTES TO THE FINANCIAL STATEMENTS
Item Amount in 2016
Effect of deductible losses from using deferred income tax assets
unrecognized in previous periods
Effect of deductible temporary differences or deductible losses
from deferred income tax assets unrecognized in the current
period 7,242,029.39
Income tax expenses 89,244,861.75
5.45 Items in the statement of cash flows
5.45.1 Cash received from other operating activities
Item Amount in 2016 Amount in 2015
Interest income 3,936,374.12 1,654,394.40
Margin, deposit and other current accounts 1,814,618,138.18 1,372,680,802.86
Government grants 108,121.33 342,246.00
Total 1,818,662,633.63 1,374,677,443.26
5.45.2 Cash paid for other operating activities
Item Amount in 2016 Amount in 2015
Handling charges 15,515,853.49 17,871,746.12
Margin and deposit expenses 117,417,474.74 65,681,623.08
Selling expenses 23,695,579.34 5,708,228.19
General and administrative expenses 175,125,500.48 58,197,102.84
Current accounts 2,657,532,011.53 1,490,471,903.13
Total 2,989,286,419.58 1,637,930,603.36
5.45.3 Cash received from other investing activities
Item Amount in 2016 Amount in 2015
Individual financing funds received 162,855,000.00 779,900,000.00
Non-public deposits 12,500,000.00
Total 175,355,000.00 779,900,000.00
5.45.4 Cash paid for other financing activities
Item Amount in 2016 Amount in 2015
Note margin - 46,903,589.64
Individual financing funds 530,980,295.84 328,378,111.24
Trust deposits 2,000,000.00
Financing fees 22,800,000.00
Total 555,780,295.84 375,281,700.88
5.46 Supplementary information to the statement of cash flows
5.46.1 Supplementary information to the statement of cash flows
Supplementary information Year 2016 Year 2015
1. Net profit adjusted to cash flows from
operating activities
Net profit 472,092,894.95 346,103,140.68
Plus: provision for asset impairment 170,011,890.11 111,337,104.17
Depreciation of fixed assets and others 8,868,947.59 3,522,849.96
Amortization of intangible assets 1,109,731.85 627,434.01
Amortization of long-term deferred
expenses 18,584,438.70 12,313,310.96
Losses on disposal of fixed assets,
intangible assets and other long-term assets
("-" for gains) 564,833.40 81,112.15
Notes to the Financial Statements Page 49
SINO GREAT WALL CO., LTD.
FOR THE YEAR ENDED DECEMBER 31, 2016
NOTES TO THE FINANCIAL STATEMENTS
Supplementary information Year 2016 Year 2015
Losses on write-off of fixed assets (“-” for
gains)
Losses from changes in fair value ("-" for
gains) -42,553.26
Financial expenses ("-" for gains) 136,256,259.56 38,634,620.19
Investment loss ("-" for gains) 2,226,350.97 -
Decreases in deferred income tax assets ("-"
for increases) 1,646,331.60 1,741,109.30
Increases in deferred income tax liabilities
("-" for decreases) -27,454,444.61 -342.21
Decreases in inventories ("-" for increases) -148,243,275.45 -134,526,054.06
Decreases in operating receivables (“-” for
increases) -2,878,862,492.67 -867,621,315.78
Decreases in operating payables ("-" for
decreases) 555,322,720.06 195,778,326.80
Others
Net cash flows from operating activities -1,687,875,813.94 -292,051,257.08
2. Significant investing and financing
activities not involving cash inflows and
outflows
Conversion of debt into capital
Convertible corporate bonds due within one
year
Fixed assets acquired under financial lease
3. Net change in cash and cash equivalents
Ending balance of cash 943,705,322.41 582,745,756.81
Less: Beginning balance of cash 582,745,756.81 243,759,954.90
Plus: Ending balance of cash equivalents
Less: Beginning balance of cash
equivalents
Net increase in cash and cash equivalents 360,959,565.60 338,985,801.91
5.46.2 Net cash paid for acquisition of subsidiaries in 2016
Amount
Cash or cash equivalents paid in 2016 for business combinations
incurred in 2016 110,000,000.00
Less: cash and cash equivalents held by subsidiaries on the
acquisition date 67,532,263.39
Plus: Cash or cash equivalents paid in 2016 for business
combinations in previous periods
Net cash paid for acquisition of subsidiaries 42,467,736.61
5.46.3 Breakdowns of cash and cash equivalents
Balance as at Balance as at
Item
December 31, 2016 January 1, 2016
I. Cash 943,705,322.41 582,745,756.81
Including: cash on hand 2,974,883.16 1,349,587.20
Unrestricted bank deposit 940,730,439.25 343,390,159.56
Other unrestricted monetary funds 238,006,010.05
II. Cash equivalents
III. Balance of cash and cash equivalents
as at December 31, 2016 943,705,322.41 582,745,756.81
Including: cash and cash restricted for
Notes to the Financial Statements Page 50
SINO GREAT WALL CO., LTD.
FOR THE YEAR ENDED DECEMBER 31, 2016
NOTES TO THE FINANCIAL STATEMENTS
Balance as at Balance as at
Item
December 31, 2016 January 1, 2016
use by the parent company or
subsidiaries within the group
5.47 Restricted assets
Book value as at
Item -Reason for restriction
December 31, 2016
Cash and cash equivalents 397,110,499.42 Deposits
Notes receivable 98,645,997.87 Pledge
Balance of accounts receivables 1,509,610,147.37 Pledge
Total 2,005,366,644.66
5.48 Monetary items in foreign currency
5.48.1 Monetary items in foreign currency
Balance in foreign RMB balance
Exchange
Item currency as at translated as at
rate
December 31, 2016 December 31, 2016
Cash and cash
equivalents 1,088,130,877.82
Including: USD 154,220,972.45 6.9370 1,069,830,885.89
GBP 1,000.00 8.5094 8,509.40
HKD 1,525,578.86 0.8945 1,364,645.55
QAR 82,452.21 1.9051 157,078.79
THB 50,000.00 0.1937 9,684.67
INR 292,646,802.97 0.0463 13,552,008.49
PHP 122,867.99 0.1402 17,224.11
MYR 284,472.84 1.5527 441,686.76
KWD 116,796.90 22.6588 2,646,480.79
BUK 1,590,000.00 0.0051 8,109.00
MOP 108,932.37 0.8681 94,564.37
Accounts receivable 2,062,888,319.06
Including: USD 109,812,714.10 6.9370 761,770,797.71
QAR 159,572,978.97 1.9051 304,000,701.70
INR 1,149,337,736.29 0.0463 53,224,004.52
PHP - 0.1402 -
MYR 42,494,611.37 1.5527 65,979,258.34
MOP 1,362,817.67 0.8681 1,183,064.22
DZD 24,867,193.21 0.0626 1,557,808.06
KWD 38,623,917.74 22.6588 875,172,684.51
Advances to
suppliers 96,686,246.86
Including: USD 2,587,704.72 6.9370 17,950,907.64
QAR 21,321,042.22 1.9051 40,618,479.63
INR 8,026,046.66 0.0463 371,673.47
KWD 1,665,804.92 22.6588 37,745,186.12
Other receivables 148,838,337.87
Including: USD 13,048,500.31 6.9370 90,517,446.65
HKD 15,150.00 0.8945 13,551.83
MOP - 0.8681 -
INR 25,540,450.43 0.0463 1,182,737.68
MYR 462,804.74 1.5527 718,573.78
PHP 116,997.00 0.1402 16,401.10
Notes to the Financial Statements Page 51
SINO GREAT WALL CO., LTD.
FOR THE YEAR ENDED DECEMBER 31, 2016
NOTES TO THE FINANCIAL STATEMENTS
Balance in foreign RMB balance
Exchange
Item currency as at translated as at
rate
December 31, 2016 December 31, 2016
QAR 15,675,667.09 1.9051 29,863,538.46
THB 1,022,031.04 0.1937 197,960.61
KWD 1,149,993.31 22.6588 26,057,499.89
DZD 3,361,846.96 0.0626 210,603.27
BUK 11,841,381.00 0.0051 60,024.60
Accounts payable 615,773,811.43
Including: USD 42,867,884.62 6.9370 297,374,515.61
QAR 51,783,417.59 1.9051 98,652,011.05
INR 364,688,798.76 0.0463 16,888,158.86
PHP 44,130.43 0.1402 6,186.38
MYR 16,300,996.89 1.5527 25,309,742.82
KWD 7,536,594.55 22.6588 170,770,394.88
BUK 1,336,107,728.00 0.0051 6,772,801.83
Advances from
customers 31,893,381.65
Including: USD 1,524,015.00 6.9370 10,572,092.06
EUR 1,998,722.68 7.3068 14,604,266.88
HKD - 0.8945 -
DZD 107,223,416.22 0.0626 6,717,022.71
Other payables 80,390,994.02
Including: USD 10,134,042.51 6.9370 70,299,852.89
HKD - 0.8945 -
QAR 500,339.30 1.9051 953,190.82
INR 42,167,275.30 0.0463 1,952,699.52
PHP 8,447.15 0.1402 1,184.15
DZD 126,262.63 0.0626 7,909.74
KWD 316,704.69 22.6588 7,176,156.90
Notes to the Financial Statements Page 52
SINO GREAT WALL CO., LTD.
FOR THE YEAR ENDED DECEMBER 31, 2016
NOTES TO THE FINANCIAL STATEMENTS
6. Changes in the scope of consolidation
6.1 Business combinations not under common control
6.1.1 Business combinations not under common control in 2016
Revenue of the Net profit of the
Costs for Proportion of Method of Recognition acquiree from the acquiree from the
Timing of acquisition
Acquiree acquisition of equities acquired acquisition of Acquisition date basis of the acquisition date to acquisition date
of equities
equities (%) equities acquisition date December 31, to December 31,
2016 2016
Wuhan Commercial Workers Hospital Acquisition of
Co., Ltd. June 21, 2016 97,000,000.00 100 Acquisition June 21, 2016 control 82,027,233.44 3,120,181.28
Sino Great Wall Southwest Acquisition of
Construction Engineering Co., Ltd. August 9, 2016 18,000,000.00 100 Acquisition August 9, 2016 control 14,967,733.16 426,158.33
Sino Great Wall Jianyee Engineering Increase in capital Acquisition of
Co., Ltd. November 11, 2016 90,000,000.00 60 and share November 11, 2016 control 102,593,058.61 541,256.23
6.1.2 Combination cost and goodwill
Wuhan
Sino Great Wall Sino Great Wall
Commercial
Southwest Construction Jianyee Engineering
Workers Hospital
Engineering Co., Ltd. Co., Ltd.
Co., Ltd.
Combination cost
- Cash 97,000,000.00 18,000,000.00 90,000,000.00
- Fair value of non-cash assets - - -
-Fair value of liabilities issued or assumed - - -
-Fair value of equity securities issued - - -
-Fair value of contingent consideration - - -
- Fair value of equities held before the acquisition date on the
acquisition date - - -
- Others - - -
Total combination costs 97,000,000.00 18,000,000.00 90,000,000.00
Less: share of fair value of identifiable net assets acquired 69,742,685.51 51,021.47 83,056,465.14
Amount of goodwill/combination cost less than the share of fair
value of identifiable net assets acquired 27,257,314.49 17,948,978.53 6,943,534.86
Notes to the Financial Statements Page 53
SINO GREAT WALL CO., LTD.
FOR THE YEAR ENDED DECEMBER 31, 2016
NOTES TO THE FINANCIAL STATEMENTS
6.1.3 Identifiable assets and liabilities of the acquiree on the acquisition date
(Unit: RMB '0,000)
Sino Great Wall Southwest
Wuhan Commercial Sino Great Wall Jianyee
Construction Engineering
Workers Hospital Co., Ltd. Engineering Co., Ltd.
Co., Ltd.
Fair value Book value Fair value on Book value Fair value on Book value
on the on the the on the the on the
acquisition acquisition acquisition acquisition acquisition acquisition
date date date date date date
Current assets 17,101.91 17,101.91 404.21 387.62 29,475.62 27,984.18
Non-current assets 14,056.60 2,552.97 4.15 307.19 679.46
Total assets: 31,158.51 19,654.88 404.21 391.77 29,782.81 28,663.64
Current liabilities 21,308.34 21,308.34 377.34 377.34 24,150.98 24,150.98
non-current liabilities - -
Total liabilities: 21,308.34 21,308.34 377.34 377.34 24,150.98 24,150.98
Net asset 9,850.17 -1,653.46 26.87 14.43 5,631.83 4,512.66
Less: minority equity - - 2,252.73 1,805.06
Net asset acquired 9,850.17 -1,653.46 26.87 14.43 3,379.10 2,707.60
Notes to the Financial Statements Page 54
SINO GREAT WALL CO., LTD.
FOR THE YEAR ENDED DECEMBER 31, 2016
NOTES TO THE FINANCIAL STATEMENTS
6.2 Changes in the scope of consolidation for other reasons
1. The Company established a wholly-owned subsidiary in 2016 - SINO GREAT WALL
INTERNETIONAL ENGINEERING (CNMI) CO., LLC with registered capital of USD 1
million.
2. The Company established a wholly-owned subsidiary in 2016 - Sino Great Wall (Beijing)
Investment Management Co., Ltd. with registered capital of RMB 100 million.
3. The Company established a holding subsidiary in 2016 - Sino Great Wall Real Estate
(Hubei) Co., Ltd. with the shareholding ratio of 80% and the registered capital of RMB 100
million.
4. The Company established a holding subsidiary in 2016 - Sino Great Wall Development
(Hengqin) Co., Ltd. with the shareholding ratio of 85% and the registered capital of RMB
50 million.
5. The Company established a holding subsidiary in 2016 - PT.SINO GREAT WALL
INVESTMENT INDONESIA with the shareholding ratio of 99.9% and the registered
capital of IDR 520 billion.
6. The Company established a holding subsidiary in 2016 - PT.SINO GREAT WALL
CONSTRUCTION INDONESIA with the shareholding ratio of 67% and the registered
capital of IDR 150 billion.
7. The Company established a holding subsidiary in 2016 - SINO GREAT WALL
INTERNETIONAL ENGINEERING (MM) CO., LTD with the shareholding ratio of 80%
and the registered capital of USD 10 million.
8. The Company established a wholly-owned subsidiary in 2016 - Sino Great Wall New
Energy (Beijing) Co., Ltd. with registered capital of RMB 30 million.
9. The Company canceled a holding subsidiary in 2016 - Sino Heji Environmental Protection
Materials Co., Ltd.
7. Equity in other entities
7.1 Equity in subsidiaries
7.1.1 Structure of the enterprise group
Principal place Registered Nature of Shareholding ratio (%) Way of
Name of subsidiaries
of business place business Directly Indirectly acquisition
Sino Great Wall Medical
Investment Management Co., Medical Establishmen
Ltd. Beijing Beijing investment 100 t
Investment
management,
Sino Great Wall Infrastructure import and Establishmen
Investment Co., Ltd. Beijing Beijing export 100 t
Wuhan Commercial Workers
Hospital Co., Ltd. Wuhan Wuhan Health care 100 Acquisition
Sino Great Wall International
Engineering Co., Ltd. Beijing Beijing Decoration 100 Acquisition
Sino Great Wall Jianyee
Engineering Co., Ltd. (formerly
known as Sichuan Haoyao
Constructional Engineering Co.,
Ltd.) Chengdu Chengdu Construction 60 Acquisition
Notes to the Financial Statements Page 55
SINO GREAT WALL CO., LTD.
FOR THE YEAR ENDED DECEMBER 31, 2016
NOTES TO THE FINANCIAL STATEMENTS
Principal place Registered Nature of Shareholding ratio (%) Way of
Name of subsidiaries
of business place business Directly Indirectly acquisition
Investment
and property
management;
Sino Great Wall (Beijing) economy and
Investment Fund Management trade Establishmen
Co., Ltd. Beijing Beijing consulting 100 t
Sino Great Wall Real Estate Real estate Establishmen
(Hubei) Co., Ltd. Wuhan Wuhan development 80 t
Sino Great Wall New Energy New energy Establishmen
(Beijing) Co., Ltd. Beijing Beijing technology 100 t
Solar
Qian'an Sino Solar Power photovoltaic Establishmen
Generation Co., Ltd. Qian'an Qian'an power station 100 t
Solar
photovoltaic
Wu'an Juhe Photovoltaic Power power Establishmen
Generation Co., Ltd. Wu'an Wu'an generation 100 t
Bozhou Guangcheng New Solar power Establishmen
Energy Co., Ltd. Bozhou Bozhou generation 100 t
Bozhou Zhaosheng Agricultural Establishmen
Technology Co., Ltd. Bozhou Bozhou Agriculture 100 t
Bozhou Xieying Solar Power Solar power Establishmen
Generation Co., Ltd. Bozhou Bozhou generation 100 t
Shanghai Ling Rui International Establishmen
Trade Company Limited Shanghai Shanghai Trade 100 t
Investment,
research and
development
and sales,
trade as well
Shenzhen Hongtulve Industrial as import and Establishmen
Co., Ltd. Shenzhen Shenzhen export 100 t
Sino Great Wall Development Design and Establishmen
(Hengqin) Co., Ltd. Zhuhai Hengqin construction 85 t
Commercial
activities
SINO GREAT WALL (USA). The United The United allowed by Establishmen
INC States States law 100 t
Herabenna Interior Design Establishmen
Guangzhou Co., Ltd. Guangzhou Guangzhou Design 100 t
Mechanical
and electrical
engineering,
scientific
research,
trade and
Inrich Me Engineering Co., investment Establishmen
Limited Hong Kong Hong Kong consulting 100 t
Sino Great Wall Southwest
Construction Engineering Co.,
Ltd. (formerly known as Sichuan
Dinghui Construction Co., Ltd.) Chengdu Chengdu Construction 100 Acquisition
PT.SINO GREAT WALL Real estate or Establishmen
INVESTMENT INDONESIA Indonesia Indonesia lease 99.9 t
PT.SINO GREAT WALL Establishmen
CONSTRUCTION INDONESIA Indonesia Indonesia Construction 67 t
Notes to the Financial Statements Page 56
SINO GREAT WALL CO., LTD.
FOR THE YEAR ENDED DECEMBER 31, 2016
NOTES TO THE FINANCIAL STATEMENTS
Principal place Registered Nature of Shareholding ratio (%) Way of
Name of subsidiaries
of business place business Directly Indirectly acquisition
SINO GREAT WALL
INTERNETIONAL
ENGINEERING(CNMI)CO.,LL Design and Establishmen
C Saipan Saipan construction 100 t
Shenzhen Yatian Decoration Design and
Design Engineering Co., Ltd. Shenzhen Shenzhen construction 70 Acquisition
Sino Great Wall International
Engineering (MACAU) Co., Design and Establishmen
Limited Macao Macao construction 96 4 t
Construction,
design, trade
and
Sino Great Wall Group Co., investment Establishmen
Limited Hong Kong Hong Kong consulting 100 t
SGW HP
EngineeringConstructionSDN.B Design and Establishmen
HD Malaysia Malaysia construction 100 t
Building
SINO GREAT WALL construction
(PHILIPPINES) and import
INTERNATIONAL and export Establishmen
CORPORITION Philippines Philippines trade 100 t
Beijing Sino Great Wall Design and Establishmen
Decoration Design Co., Ltd. Beijing Beijing consulting 100 t
Suzhou Lvbang Wood Production Establishmen
Technology Co., Ltd. Suzhou Suzhou and sales 100 t
Sino Heji Environmental Production Establishmen
Protection Materials Co., Ltd. Heji Heji and sales 80 t
SINO GREAT WALL
INTERNETIONAL Design and Establishmen
ENGINEERING(MM)CO.,LTD Myanmar Myanmar construction 80 t
Sino Great Wall International Establishmen
Engineering (Thailand) Co., Ltd. Thailand Thailand 48.998 t
8. Risks associated with financial instruments
The Company faces various financial risks in the process of operation: credit risks, market risks and
liquidity risks. The Board of Directors of the Company shall be fully responsible for determining risk
management objectives and policies and bearing the ultimate liabilities for that. However, the Board of
Directors has authorized the management to design and implement the process that can ensure the
effective implementation of the risk management objectives and policies. The Board of Directors
reviews the effectiveness of the enforced procedures and the rationality of risk management objectives
and policies through monthly reports submitted by the management. Internal auditors of the Company
will also audit risk management policies and procedures and report the relevant findings to the audit
committee.
Overall objective of risk management of the Company is to formulate risk management policies to
minimize risks without undue prejudice to the Company's competitiveness and resilience.
8.1 Credit risk
Credit risk refers to a risk of financial losses suffered by one party of financial instruments due
to the failure of the other party to fulfill obligations. The Company mainly faces customer credit
risks caused by sales on account. Prior to the conclusion of a new contract, the Company will
evaluate the credit risk of the new customer, including external credit rating and bank reference
letter under some circumstances if the relevant information is available. The Company sets a
credit limit for each customer. The limit is the maximum amount unnecessary for additional
approval.
Notes to the Financial Statements Page 57
SINO GREAT WALL CO., LTD.
FOR THE YEAR ENDED DECEMBER 31, 2016
NOTES TO THE FINANCIAL STATEMENTS
The Company quarterly monitors credit ratings of existing customers and monthly reviews aging
analysis of accounts receivable to ensure that the Company's overall credit risk is within the
controllable range. When the Company monitors credit risks of customers, the customers shall
be divided into groups according to their credit features. Customers rated as "high risk" will be
placed in a restricted customer list. The Company may sell goods to such customers on credit in
future periods subject to additional approval; otherwise the Company must require advance
payments.
8.2 Market risk
Market risk associated with financial instruments refers to the risk arising from changes in fair
value or future cash flows of financial instruments due to market price fluctuation, including
interest rate risk and foreign exchange risk.
(1) Interest rate risk
Interest rate risk refers to the risk arising from changes in fair value or future cash flows of
financial instruments due to fluctuation in market interest rate. The Company's interest rate
risk mainly derives from bank borrowings. The Company establishes good relations with
banks and reasonably designs credit lines, credit varieties and credit period to guarantee
sufficient bank credit lines and to meet short-term financing needs. By shortening the time
limit of a single loan, the Company may specifically agree terms of the prepayment to
reasonably reduce the risk of interest rate.
On December 31, 2016, in case other variables remain unchanged, if the loan interest rate
calculated at a floating interest rate rises or falls 100 basis points, the Company's net profit
will reduce or increase by RMB 21,200 (December 31, 2015: RMB 2,178,000).
(2) Exchange rate risk
Exchange rate risk refers to the risk arising from changes in fair value or future cash flows
of financial instruments due to fluctuation in foreign exchange rate. The Company shall
match foreign currency income and foreign currency expenses as much as possible to
minimize exchange rate risk. In addition, the Company may also sign forward foreign
exchange contracts or currency swap contracts to avoid exchange rate risks.
The exchange rate risk faced by the Company mainly derives from dollar-denominated
financial assets and financial liabilities. Foreign currency financial assets and financial
liabilities are converted into amount in RMB as follows:
Balance as at December 31, 2016 (RMB) Balance as at January 1, 2016 (RMB)
Item Other foreign Total Other foreign Total
USD USD
currencies currencies
Cash and cash equivalents 1,069,830,885.89 18,299,991.93 1,088,130,877.82 12,367,626.74 47,803,146.93 60,170,773.67
Accounts receivable 761,770,797.71 1,301,117,521.35 2,062,888,319.06 261,680,003.01 64,685,392.32 326,365,395.33
Advances to suppliers 17,950,907.64 78,735,339.22 96,686,246.86 3,219,710.57 21,727,760.68 24,947,471.25
Other receivables 90,517,446.65 58,320,891.22 148,838,337.87 19,653,509.31 61,363,486.93 81,016,996.24
Sub-total of assets 1,940,070,037.89 1,456,473,743.72 3,396,543,781.61 296,920,849.63 195,579,786.86 492,500,636.49
Accounts payable 297,374,515.61 318,399,295.82 615,773,811.43 121,182,379.88 321,046,692.24 442,229,072.12
Advances from customers 10,572,092.06 21,321,289.59 31,893,381.65 16,637,252.49 16,637,252.49
Other payables 70,299,852.89 10,091,141.13 80,390,994.02 2,005,010.46 3,042,262.65 5,047,273.11
Sub-total of liabilities 378,246,460.56 349,811,726.54 728,058,187.10 123,187,390.34 340,726,207.38 463,913,597.72
Net amount 1,561,823,577.33 1,106,662,017.18 2,668,485,594.51 173,733,459.29 -145,146,420.52 28,587,038.77
On December 31, 2016, in case all other variables remain unchanged, if RMB to USD
appreciates or depreciates by 1%, the net profits of the Company would reduce or increase
by RMB 15,618,200 (December 31, 2015: RMB 285,900).
Notes to the Financial Statements Page 58
SINO GREAT WALL CO., LTD.
FOR THE YEAR ENDED DECEMBER 31, 2016
NOTES TO THE FINANCIAL STATEMENTS
8.3 Liquidity risk
Liquidity risk refers to a risk arising from shortage of funds when the Company performs the
obligations settled in cash or other financial assets. Policies of the Company are to ensure
sufficient cash to pay matured debts. Liquidity risk is under centralized control of the financial
department of the Company. The financial department monitors cash balance and readily
realizable and marketable securities and makes rolling forecast on cash flows of the next 12
months to ensure that the Company has sufficient funds to repay debts in all cases of reasonable
prediction. See disclosure of the relevant items of Note 5 for details of financial liabilities of the
Company presented at undiscounted contractual cash flows on the maturity date.
9. Related parties and related-party transactions
9.1 Actual controller of the Company
Shareholding ratio Voting ratio in
Amount of
Name in the Company the Company Remarks
shares held
(%) (%)
Chen Lve 582,944,556 34.33 34.33
9.2 Subsidiaries of the Company
See Note 7 Equity in other entities for subsidiaries of the Company.
9.3 Other related parties
Other related parties Relationship with the Company
Brother-in-law of the shareholder and actual controller of
He Sen the Company
Wife of the shareholder and actual controller of the
He Feiyan Company
Li Erlong etc. Directors, supervisors and senior officers of the Company
Qinghai Heyi Commercial Co., Enterprise controlled by Wang Lei, the director of the
Ltd. Company
Enterprise controlled by Wang Lei, the director of the
Qinghai Heyi Mining Co., Ltd. Company
Kunwu Jiuding Investment
Holdings Co., Ltd. and its Shareholders with 5% or above of shares of the Company
related parties and under common control
Beijing Baolilai Technology A wholly-owned subsidiary in which the Company's
Co., Ltd. director acts as a director
9.4 Related party transactions
9.4.1 Purchase or sale of goods, and rendering or receipt of labor services
Table of purchase of goods and receipt of labor services (Unit: RMB '0,000)
Amount in Amount in
Related parties Related party transactions
2016 2015
Qinghai Heyi Commercial
Co., Ltd. Payment for materials 1,959.00 4,636.50
Qinghai Heyi Mining Co.,
Ltd. Consulting fees 1,187.00
Notes to the Financial Statements Page 59
SINO GREAT WALL CO., LTD.
FOR THE YEAR ENDED DECEMBER 31, 2016
NOTES TO THE FINANCIAL STATEMENTS
Table of sales of goods and rendering of services (Unit: RMB '0,000)
Amount in Amount in
Related parties Related party transactions
2016 2015
Kunwu Jiuding
Investment Holdings Co., Funds for decoration
Ltd. and its related parties projects 795.13 5,800.00
Beijing Baolilai Funds for decoration
Technology Co., Ltd. projects 38.20 821.60
9.4.2 Related-party guarantee
The Company as the warrantee:
Have the
Starting date Maturity
Amount of the guarantee
Warrantor of the date of the
guarantee been
guarantee guarantee
performed?
Chen Lve and Sino Great Wall March 21, March 21,
Co., Ltd. 150,000,000.00 2016 2017 No
Chen Lve, Sino Great Wall Co., July 19,
Ltd. and He Feiyan 150,000,000.00 July 19, 2016 2017 No
August 8, August 8,
Sino Great Wall Co., Ltd. 50,000,000.00 2016 2017 No
Chen Lve and Zhongcheng June 3,
Jianyee Engineering Co., Ltd. 80,000,000.00 June 19, 2015 2016 Yes
Chen Lve and Sino Great Wall October 28, September
Co., Ltd. 130,000,000.00 2016 28, 2017 No
Chen Lve, He Feiyan and Sino November 19, November
Great Wall Co., Ltd. 50,000,000.00 2015 19, 2016 Yes
March 10, March 9,
Qinghai Heyi Mining Co., Ltd. 2016 2017 No
March 10, March 9,
Chen Lve 500,000,000.00 2016 2017 No
Chen Lve and Sino Great Wall December 19, December
Co., Ltd. 84,000,000.00 2016 19, 2017 No
January 13, January 13,
Chen Lve 12,000,000.00 2016 2018 No
March 29, March 29,
Chen Lve 12,000,000.00 2016 2018 No
March 27, March 27,
Chen Lve 12,000,000.00 2016 2018 No
United Venture Guarantee January 8, January 7,
Group Co., Ltd. 28,000,000.00 2016 2017 No
Great Wall Jianyee Engineering
Co., Ltd., Chen Lve and
Qinghai Heyi Commercial Co., January 20, January 19,
Ltd. 114,280,000.00 2015 2016 Yes
May 18,
Chen Lve and He Feiyan 140,000,000.00 June 11, 2015 2016 Yes
Chen Lve, Sino Great Wall Co., July 12,
Ltd. and He Feiyan 140,000,000.00 July 12, 2016 2017 No
Beijing Zhongguancun Sci-tech February 22, March 22,
Financing Guaranty Co., Ltd. 230,000,000.00 2016 2018 No
Chen Lve and Qinghai Heyi January 20, January 19,
Commercial Co., Ltd. 114,280,000.00 2015 2016 Yes
June 3,
Chen Lve 80,000,000.00 June 19, 2015 2016 Yes
June 3,
Chen Lve 80,000,000.00 June 19, 2015 2016 Yes
Notes to the Financial Statements Page 60
SINO GREAT WALL CO., LTD.
FOR THE YEAR ENDED DECEMBER 31, 2016
NOTES TO THE FINANCIAL STATEMENTS
Have the
Starting date Maturity
Amount of the guarantee
Warrantor of the date of the
guarantee been
guarantee guarantee
performed?
May 18,
Chen Lve and He Feiyan 140,000,000.00 June 11, 2015 2016 Yes
September 3, September
Chen Lve 70,000,000.00 2014 2, 2016 Yes
February 11, February
Chen Lve 11,000,000.00 2015 11, 2018 No
July 30,
Chen Lve 11,000,000.00 July 30, 2015 2018 No
Sino Great Wall International
Engineering Co., Ltd. and Chen January 13, January 12,
Lve 100,000,000.00 2016 2017 No
Sino Great Wall International
Engineering Co., Ltd., Chen January 13, January 12,
Lve and He Feiyan 120,000,000.00 2016 2017 No
Sino Great Wall International
Engineering Co., Ltd., Chen August 25, August 25,
Lve and He Feiyan 257,140,000.00 2016 2017 No
Sino Great Wall International
Engineering Co., Ltd. and Chen January 21, January 20,
Lve 200,000,000.00 2016 2017 No
January 29, July 28,
Chen Lve 50,000,000.00 2016 2016 Yes
September
Chen Lve 30,000,000.00 March 4, 2016 3, 2016 Yes
January 28,
Chen Lve 50,000,000.00 July 29, 2016 2017 No
Sino Great Wall International
Engineering Co., Ltd. and Chen June 20,
Lve 200,000,000.00 June 21, 2016 2017 No
Sino Great Wall International
Engineering Co., Ltd.,
Zhongcheng Jianyee
Engineering Co., Ltd. and Chen April 28,
Lve 100,000,000.00 April 29, 2016 2017 No
April 26,
Chen Lve 100,000,000.00 April 26, 2016 2017 No
November
Chen Lve 5,000,000.00 June 22, 2016 22, 2016 Yes
December
Chen Lve 45,000,000.00 July 5, 2016 5, 2016 Yes
Sino Great Wall International
Engineering Co., Ltd., Chen August 22, August 22,
Lve and He Feiyan 100,000,000.00 2016 2017 No
September 29, September
Chen Lve and He Feiyan 100,000,000.00 2016 28, 2018 No
June 28,
Chen Lve 400,000,000.00 June 28, 2016 2018 No
Sino Great Wall International
Engineering Co., Ltd., Chen April 18,
Lve and He Feiyan 200,000,000.00 April 19, 2016 2018 No
December 15, June 14,
Chen Lve 10,000,000.00 2016 2017 No
Notes to the Financial Statements Page 61
SINO GREAT WALL CO., LTD.
FOR THE YEAR ENDED DECEMBER 31, 2016
NOTES TO THE FINANCIAL STATEMENTS
Have the
Starting date Maturity
Amount of the guarantee
Warrantor of the date of the
guarantee been
guarantee guarantee
performed?
Sichuan Jinyu Financing
Guaranty Co., Ltd., Ye Meifu February 17, February
and Yang Qiuhua 8,000,000.00 2016 16, 2017 No
June 27,
Sino Great Wall Co., Ltd. 400,000,000.00 June 28, 2016 2017 No
March 23, March 23,
Sino Great Wall Co., Ltd. 200,000,000.00 2016 2017 No
January 3, January 2,
Sino Great Wall Co., Ltd. 180,000,000.00 2017 2018 No
February
Sino Great Wall Co., Ltd. 100,000,000.00 April 29, 2016 13, 2017 No
Sino Great Wall International
Engineering Co., Ltd. and Chen November 22, November
Lve 500,000,000.00 2016 22, 2017 No
Sino Great Wall International
Engineering Co., Ltd., Chen December 21, December
Lve and He Feiyan 300,000,000.00 2016 20, 2017 No
December 20, December
Sino Great Wall Co., Ltd. 250,000,000.00 2016 19, 2017 No
March 25, March 25,
Sino Great Wall Co., Ltd. 50,000,000.00 2016 2017 No
9.4.3 Borrowings from and to related parties
Lending/borrowing Maturity
Related parties Starting date Remark
amount date
Lending
January 1, June 30,
Chen Lve 93,855,000.00 2016 2016
December
Chen Lve 4,000,000.00 July 1, 2016 31, 2016
Remark: Provision for interest on the lendings to shareholders has been made. The
amount included in the profit and loss in 2016 was RMB 2,356,589.48.
9.4.4 Remuneration of key management
Item Amount in 2016 Amount in 2015
Remuneration of key management 1,696,900.00 1,495,100.00
9.5 Receivables from and payables to related parties
9.5.1 Receivables
Balance as at December 31, 2016 Balance as at January 1, 2016
Project Related parties Provision for Provision for
Book balance Book balance
bad debts bad debts
Accounts
receivable
Kunwu Jiuding Investment
Holdings Co., Ltd. and its
related parties 1,609,996.92 80,499.85 2,500,737.20 125,036.86
Beijing Baolilai Technology
Co., Ltd. 160,000.00 8,000.00 2,816,000.00 140,800.00
Advances to
suppliers
Notes to the Financial Statements Page 62
SINO GREAT WALL CO., LTD.
FOR THE YEAR ENDED DECEMBER 31, 2016
NOTES TO THE FINANCIAL STATEMENTS
Balance as at December 31, 2016 Balance as at January 1, 2016
Project Related parties Provision for Provision for
Book balance Book balance
bad debts bad debts
Qinghai Heyi Commercial Co.,
Ltd. 18,902,151.50
9.5.2 Payables
Book Balance as at Book Balance as at
Project Related parties
December 31, 2016 January 1, 2016
Accounts payable
Qinghai Heyi Commercial Co.,
Ltd. 1,750,581.64
Other payables
Qinghai Heyi Commercial Co.,
Ltd. 2,999,209.78
He Sen 4,405,644.43
10. Commitments and contingencies
10.1 Significant commitments
There were no major commitments required to be disclosed in 2016.
10.2 Contingencies
There were no contingencies required to be disclosed in 2016.
11. Post balance sheet events
11.1 Notes to significant non-adjusting events
On July 7, 2016, the Company held the tenth session of the seventh Board of Directors and
approved the Proposal on Non-public Issuance of A Shares by Sino Great Wall Co., Ltd.. The
Company intended to issue shares to Sino Great Wall (Beijing) Investment Co., Ltd., Beijing
Anben Medical Investment Holding Co., Ltd. and Mr. Zheng Jihua to raise funds of RMB 2.5
billion. On October 14, 2016, the China Securities Regulatory Commission accepted the
Company's application for non-public offering of shares. At the sixteenth meeting of the seventh
Board of Directors convened by the Company on February 16, 2017, the Company deliberated
and passed the Proposal on Adjusting the Scheme for the Non-public Issuance of Shares and
adjusted the amount of funds to be raised to RMB 900 million.On March 22, 2017, the
Company's application for non-public issuance of A shares was approved by the Issuance
Examination Commission of China Securities Regulatory Commission, but official documents
approved by the China Securities Regulatory Commission have not received yet.
Notes to the Financial Statements Page 63
SINO GREAT WALL CO., LTD.
FOR THE YEAR ENDED DECEMBER 31, 2016
NOTES TO THE FINANCIAL STATEMENTS
11.2 Profit distribution
Approved at the seventeenth session of the seventh Board of Directors, the Company distributed
cash dividends of RMB 0.60 (including tax) for every 10 shares based on the existing
16,982,450,110,000 shares. No bonus shares were given and no capital reserves were conversed
to increase share capital.
12. Other important matters
12.1 Outstanding L/G
In order to ensure the smooth completion of the project, at the request of the owner, the
Company applied to a commercial bank for issuing a performance guarantee. As at December 31,
2016, the amount of the outstanding L/G was RMB 1,262,632,100.
12.2 Segment information
12.2.1 Basis for recognition of reportable segment and accounting policies
Accounting policies of reportable segment
There were no related-party transactions among domestic architectural decoration,
overseas architectural decoration and medical treatment, so no inters-segment price
was transferred;
Medical treatment was implemented by the Company and its independent subsidiary;
overseas architectural decoration was accounted for according to the account sets set
up in the regions where the projects in progress are located, mainly including account
sets for Qatar, Kuwait, Cambodia, Sri Lanka, Malaysia, Burma, Maldives and Saipan,
so there were no fees which were indirectly attributable to each segment and needed to
be amortized; the business data of overseas architectural decoration was formed by the
financial data of the above 8 account sets for major projects.
Notes to the Financial Statements Page 64
SINO GREAT WALL CO., LTD.
FOR THE YEAR ENDED DECEMBER 31, 2016
NOTES TO THE FINANCIAL STATEMENTS
12.2.2 Financial information of reportable segments
Domestic architectural decoration Overseas architectural decoration Medical treatment Offset Total
Item
Year 2016 Year 2015 Year 2016 Year 2015 Year 2016 Year 2015 Year 2016 Year 2015 Year 2016 Year 2015
I. Operating income 1,418,192,694.17 2,428,344,815.19 3,165,213,312.57 1,560,310,586.25 81,593,110.43 -21,703,598.14 4,664,999,117.17 4,010,358,999.58
Including: income from
external transactions 1,418,192,694.17 2,428,344,815.19 3,165,213,312.57 1,560,310,586.25 81,593,110.43 -21,703,598.14 4,664,999,117.17 4,010,358,999.58
Income from inter-segment
transactions - -
II. Operating cost 1,184,945,928.21 1,988,442,188.52 2,216,759,318.30 1,154,881,399.00 57,672,498.15 -21,703,598.14 3,459,377,744.66 3,165,027,185.66
Including: costs of external
transactions 1,184,945,928.21 1,988,442,188.52 2,216,759,318.30 1,154,881,399.00 -21,703,598.14 3,401,705,246.51 3,165,027,185.66
Costs of inter-segment
transactions - -
III. Losses from asset
impairment 74,286,638.56 80,433,729.48 95,207,208.36 30,903,374.69 518,043.19 170,011,890.11 111,337,104.17
IV. Depreciation and
amortization 3,004,474.27 6,985,552.79 30,488.71 21,288.88 19,316.10 -3,794,638.67 6,848,917.76 7,006,841.67
V. Total profit -304,963,110.16 69,862,580.73 864,476,659.76 360,904,330.95 3,583,802.03 - 1,759,594.94 -25,117.82 561,337,756.68 430,792,029.50
VI. Income tax expenses -10,207,854.94 76,207,293.00 99,038,519.27 8,766,407.91 1,703,401.20 1,289,203.78 89,244,861.75 84,973,700.90
VII. Net profit -294,755,255.22 -6,344,712.27 765,438,140.48 352,137,923.04 1,880,400.83 - 470,391.16 -25,117.82 472,092,894.93 345,818,328.60
VIII. Total assets 10,947,559,949.24 6,044,181,578.99 3,044,412,477.45 1,097,651,243.20 121,748,481.08 6,127,541,946.13 3,124,369,997.56 7,986,178,961.63 4,017,462,824.63
IX. Total liabilities 7,089,471,639.73 2,406,019,801.98 1,752,059,212.34 690,133,065.43 136,402,672.37 2,822,237,435.41 358,948,894.24 6,155,696,089.04 2,737,203,973.17
Notes to the Financial Statements Page 65
SINO GREAT WALL CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
13. Notes to main items of the financial statements of the parent company
13.1 Accounts receivable
13.1.1 Disclosure of accounts receivable by category
Balance as at December 31, 2016
Book balance Provision for bad debts
Category
Proportion Proportion Book value
Amount Amount
(%) (%)
Receivables that are individually significant but
with provision for bad debts made on an individual
basis
Receivables subject to provision for bad debts on
credit risk characteristics basis 6,680.00 100.00 334.00 5.00 6,346.00
Receivables that are individually insignificant but
with provision for bad debts made on an individual
basis
Total 6,680.00 100 334 5 6,346.00
(Continued)
Balance as at January 1, 2016
Book balance Provision for bad debts
Category
Proportion Proportion Book value
Amount Amount
(%) (%)
Receivables that are individually significant but
with provision for bad debts made on an individual
basis
Receivables subject to provision for bad debts on
credit risk characteristics basis 30,614.00 100.00 1,530.70 5.00 29,083.30
Receivables that are individually insignificant but
with provision for bad debts made on an individual
basis
Total 30,614.00 100 1,530.70 5 29,083.30
In the portfolio, accounts receivable with the provision for bad debts made under the
aging analysis method:
Balance as at December 31, 2016
Aging Accounts Provision for Proportion of
receivable bad debts provision
Within 1 year 6,680.00 334.00 5.00
1 to 2 years
2 to 3 years
3 to 4 years
4 to 5 years
Over 5 years
Total 6,680.00 334.00
13.1.2 Provision, recovery or reversal of accounts receivable in 2016
The provision for bad debts made in 2016 was RMB 0.00; the provision for bad debts
recovered or reversed in 2016 was RMB 1,196.70.
13.1.3 Top five receivables by debtor
Balance as at December 31, 2016
Company name Accounts Proportion in the total Provision for
receivable accounts receivables (%) bad debts
Sporadic individual rent in Kuichong,
Shenzhen 6,680.00 100.00 334.00
Total 6,680.00 100.00 334.00
Notes to the Financial Statements Page 66
SINO GREAT WALL CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
13.2 Other receivables
13.2.1 Disclosure of other receivables by category:
Balance as at December 31, 2016
Book balance Provision for bad debts
Category
Proportion Book value
Amount Amount Proportion (%)
(%)
Other receivables that are individually
significant but with provision for bad debts
made on an individual basis
Other receivables provided for bad debts on
portfolio of credit risks 1,672,982,763.29 100.00 782,721.31 0.05 1,672,200,041.98
Other receivables that are individually
insignificant but with provision for bad debts
made on an individual basis
Total 1,672,982,763.29 100 782,721.31 0.05 1,672,200,041.98
(Continued)
Balance as at January 1, 2016
Book balance Provision for bad debts
Category
Proportion Book value
Amount Amount Proportion (%)
(%)
Other receivables that are individually
significant but with provision for bad debts
made on an individual basis
Other receivables provided for bad debts on
portfolio of credit risks
Other receivables that are individually
insignificant but with provision for bad debts
made on an individual basis
Total
Remark: There were no other receivables as at January 1, 2016.
13.2.2 Provision for bad debts and reversal or recovery thereof in 2016
The provision for bad debts made in 2016 was RMB 782,721.31; the provision for bad
debts recovered or reversed in 2016 was RMB 0.00.
13.2.3 Category of other receivables by nature
Book Balance as at Book Balance as at
Nature
December 31, 2016 January 1, 2016
Current accounts between entities 1,657,328,337.13
Petty cash 1,272,085.13
Margin and deposit 14,382,341.03
Others
Total 1,672,982,763.29
13.2.4 Top five other receivables by debtor
Proportion in Balance of
Balance as at
total other provision for bad
Company name Nature December 31, Aging
receivables debts as at
2016
(%) December 31, 2016
Wuhan Commercial
Workers Hospital Co., Current accounts with
Ltd. related parties 107,800,000.00 Within 1 year 6.44
Notes to the Financial Statements Page 67
SINO GREAT WALL CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
Proportion in Balance of
Balance as at
total other provision for bad
Company name Nature December 31, Aging
receivables debts as at
2016
(%) December 31, 2016
Upper First-class
Hospital, Hongqiao,
Liangdu, Liupanshui
(Finance Bureau of
Fushun Economic
Development Zone) Deposits 10,000,000.00 Within 1 year 0.60 500,000.00
Hunan Trust Co., Ltd. Deposits 2,000,000.00 Within 1 year 0.12 100,000.00
Borrowings of
Xu Ce employees 1,109,002.22 Within 1 year 0.07 55,450.11
The First People's
Hospital of Lingbao City
(COCITC) Deposits 1,000,000.00 Within 1 year 0.06 50,000.00
Total / 121,909,002.22 / 7.29 705,450.11
13.3 Long-term equity investments
Balance as at December 31, 2016 Balance as at January 1, 2016
Provision Provision
Item
Book balance for Book value Book balance for Book value
impairment impairment
Investment in subsidiaries 3,176,451,536.66 3,176,451,536.66 3,079,451,536.66 3,079,451,536.66
Total 3,176,451,536.66 3,176,451,536.66 3,079,451,536.66 3,079,451,536.66
13.3.1 Investment in subsidiaries
Balance of
Balance as at Balance as at Provision for provision for
Increase Decrease
Investee January 1, December 31, impairment in impairment as at
in 2016 in 2016
2016 2016 2016 December 31,
2016
Sino Great
Wall
International
Engineering
Co., Ltd. 3,079,451,536.66 3,079,451,536.66
Wuhan
Commercial
Workers
Hospital Co.,
Ltd. 97,000,000.00 97,000,000.00
Total 3,079,451,536.66 97,000,000.00 3,176,451,536.66
13.4 Investment income
Item Amount in 2016 Amount in 2015
Income from long-term equity investments accounted
for under cost method
Income from long-term equity investments accounted
for under equity method
Investment income from disposal of long-term equity
investments
Investment income received from financial assets
measured at fair value through current profit and loss
during the holding period
Notes to the Financial Statements Page 68
SINO GREAT WALL CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
Item Amount in 2016 Amount in 2015
Investment income received from disposal of financial
assets measured at fair value through current profit and
loss
Investment income from held-to-maturity investments
during the holding period
Investment income of available-for-sale financial
assets during the holding period
Investment income from disposal of available-for-sale
financial assets
Gains and losses arising from re-measurement of the
remaining equities at the fair value after the loss of the
control
Others 396,197.49
Total 396,197.49
13.5 Operating income and operating cost
Amount in 2016 Amount in 2015
Item
Income Cost Income Cost
Primary business
Other business 238,048.64 2,318,061.00 237,620.18
Total 238,048.64 2,318,061.00 237,620.18
14. Supplementary information
14.1 Breakdown of current non-recurring profits and losses
Item Amount Remark
Profits or losses from disposal of non-current assets -564,833.40
Tax returns, deduction and exemption approved
beyond the authority or without official approval
documents
Government grants included in current profits and
losses (except for government grants closely related to
the enterprise business, obtained by quota or quantity
at unified state standards) 108,121.33
Expenses for using funds charged from non-financial
enterprises and included in the current profit and loss
Gains from the difference between the investment
costs of acquisition of subsidiaries, associates and joint
ventures and share in the net fair value of the
identifiable assets of the investee when investing 1,783,284.99
Profit or loss on exchange of non-monetary assets -
Gains or losses from entrusting the investments or
management of asset
Provision of asset impairment made due to force
majeure, such as natural disasters
Gains or losses from debt restructuring
Enterprise reorganizing expenses, such as employee
accommodation costs and integration expenses
Gains or losses from transactions with obvious unfair
transaction price
Current net gains and losses of the subsidiaries from
business combinations under common control from the
beginning of the period to the combination date
Notes to the Financial Statements Page 69
SINO GREAT WALL CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
Item Amount Remark
Profit or loss on contingencies irrelevant to normal
operation of the Company
Except for effective hedging business related to the
normal business of the company, profits or losses from
fair value changes in held-for-trading financial assets
and held-for-trading financial liabilities, and
investment income from disposal of held-for-trading
financial assets, held-for-trading financial liabilities
and available-for-sale financial assets 443,065.98
Reversal of the impairment provision for receivables
subject to separate impairment test -
Profits or losses from entrusted loans -
Profit or loss on changes in fair value of investment
properties subsequently measured under the fair value
model -
Effects of one-off adjustments to the current profit and
loss in accordance with the requirements of tax and
accounting laws and regulations on the current profit
and loss -
Custodian income from entrusted management -
Other non-operating income and expenditure except
for the above items 5,296,814.65
Other items of gains and losses subject to the definition
of non-recurring gains and losses -
Effect of income tax -3,668,000.60
Effect of minority interests -11,192.65
Total 3,387,260.30
14.2 Return on equity and earnings per share:
Earnings per share (RMB)
Weighted average return
Profit for the reporting period Basic earnings per Diluted earnings
on equity (%)
share per share
Net profit attributable to ordinary
shareholders of the Company 31.18 0.28 0.28
Net profit attributable to ordinary
shareholders of the Company after deducting
non-recurring gains and losses 30.96 0.28 0.28
Sino Great Wall Co., Ltd.
(Official Seal)
April 26, 2017
Notes to the Financial Statements Page 70
