Sino Great Wall Co., Ltd. The Semi-annual Report 2017 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 August 2017 1 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 I. Important Notice, Table of Contents and Definitions The Board of Directors and the directors, Supervisory Committee and supervisors and Senior Executives of the Company hereby warrant that at the year , there are no misstatement, misleading representation or important omissions in this report and shall assume joint and several liability for the authenticity, accuracy and completeness of the contents hereof. Mr.Chen Lue , The Company leader, Mr. Tang Xianyong, Chief financial officer and the Mr. Tang Xianyong, the person in charge of the accounting department (the person in charge of the accounting )hereby confirm the authenticity and completeness of the financial report enclosed in this semi-annual report. All the directors attended the board meeting for reviewing the Semi-Annual Report. The Company has no plan of cash dividends carried out, bonus issued and capitalizing of common reserves either. 2 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 Table of Contents Semi-Annual Report 2017 I.Important Notice and Definitions II. Corporate Profile and Key Financial Indicators III. Business Profile IV. Performance Discussion and Analysis V. Important Events VI. Change of share capital and shareholding of Principal Shareholders VII. Situation of the Preferred Shares VIII.Information about Directors, Supervisors and Senior Executives IX. Corporate Bonds X.Financial Report XI. Documents available for inspection 3 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 Definition Terms to be defined Refers to Definition Company Law Refers to Company Law of the People’s Republic of China Securities Law Refers to Securities Law of the People’s Republic of China “CSRC” Refers to China Securities Regulatory Commission Company,The Company, Sino Great Wall Refers to Sino Great Wall Co., Ltd. Sino International Refers to Sino Great Wall International Engineering Co., Ltd. BDO Refers to BDO China Shu Lun Pan Certified Public Accountants LLP SZSE Refers to Shenzhen Stock Exchange Reporting period Refers to January 1,2017 to June 30,2017 Wuhan Commercial worker Hospital Refers to Wuhan Commercial worker Hospital Co., Ltd. 4 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 II. Corporate Profile and Key Financial Indicators I.Company Information Stock abbreviation: Sino Great Wall Sino-B Stock code: 000018 200018 Stock exchange for listing Shenzhen Stock Exchange Name in Chinese 神州长城股份有限公司 Chinese Abbreviation 神州长城 神州 B English name (If any) Sino Great Wall Co., Ltd. English Abbreviation (If any) Sino Great Wall Sino-B Legal Representative Chen Lue II. Contact person and contact manner Board secretary Securities affairs Representative Name Yang Chunling Liu Guofa Sino Great Wall Building, No.3 Jinxiu Sino Great Wall Building, No.3 Jinxiu Contact address Street,Economic Technology Development Street,Economic Technology Development Zone , Beijing Zone , Beijing Tel 010-89045855 010-89045855 Fax 010-89045856 010-89045856 E-mail 1208806865@qq.com 000018sz@sina.com III. Other information (1)Way to contact the Company Whether registrations address, offices address and codes as well as website and email of the Company changed in reporting period or not □ Applicable □√ Not Applicable The registered address, office address and their postal codes, website address and email address of the Company did not change during the reporting period. The said information can be found in the 2015 Annual Report. (2)About information disclosure and where this report is placed Did any change occur to information disclosure media and where this report is placed during the reporting period? □ Applicable √ Not applicable The newspapers designated by the Company for information disclosure, the website designated by CSRC for disclosing this report and the location where this report is placed did not change during the reporting period. The said information can be found in the 2016 Annual Report. IV. Summary of Accounting Data and Financial Indicators 5 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 Indicate by tick mark whether the Company needs to retroactively restate any of its accounting data. □ Yes √No Reporting period Same period of last year YoY+/-(%) Operating income(RMB) 3,025,082,356.80 1,953,574,755.51 54.85% Net profit attributable to the shareholders 268,606,450.03 202,299,416.64 32.78% of the listed company(RMB) Net profit after deducting of non-recurring gain/loss attributable to the shareholders of 264,902,836.16 175,937,165.15 50.57% listed company(RMB) Cash flow generated by business operation, -535,997,580.19 -1,256,615,959.20 57.35% net(RMB) Basic earning per share(RMB/Share) 0.16 0.12 33.33% Diluted gains per 0.16 0.12 33.33% share(RMB/Share)(RMB/Share) Weighted average ROE(%) 14.39% 14.47% -0.08% As at the end of the As at the end of last year YoY+/-(%) reporting period Gross assets (RMB) 9,516,720,434.55 7,986,178,961.63 19.16% Shareholders’ equity attributable to 1,956,577,635.45 1,777,948,117.49 10.05% shareholders of the listed company(RMB) V. Differences between accounting data under domestic and overseas accounting standards 1. Differences of net profit and net assets disclosed in financial reports prepared under international and Chinese accounting standards. □ Applicable √Not applicable 2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese accounting standards. □ Applicable √Not applicable The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign accounting rules or Chinese GAAP(Generally Accepted Accounting Principles) in the period. 3.Note to the Difference in the Accounting Data based on the Accounting Standards of CAS and IAS. □ Applicable √Not applicable 6 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 VI.Items and amount of non-current gains and losses √Applicable □Not applicable In RMB Items Amount Notes Govemment subsidy recognized in currentgain and loss(excluding those closely related to the Company’s business and granted 60,363.52 under the state’s policies) Non-operating incomeand expense other than the above 4,291,138.93 Less: Amount of influence of income tax 647,888.58 Total 3,703,613.87 -- For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on information disclosure for Compaines Offering their Securities to the Public-Non-recurring Gains and Losses and its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as recurring gains and losses, it is necessary to explain the reason. □ Applicable √ Not applicable None of Non-recurring gain /loss items recorgnized as recurring gain /loss/itesm as defined by the information disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period. 7 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 III. Business Profile Ⅰ.Main Business the Company is Engaged in During the Report Period Whether the company needs to comply with the disclosure requirements of the particular industry Yes Civil Engineering Construction Sino Great Wall’s main business has two aspects: the first is construction of engineering projects, and the second is medical & health industry investment and management. The business of construction of engineering projects mainly includes international and domestic large-scale project contracting, with the international business mainly centering on the countries and regions along “One Belt, One Road”, and currently, the international business covers many countries and regions such as the Middle East, Southeast Asia and Africa. The Business scope covers building project, infrastructure project, commercial complex project etc. For the domestic business, with the company’s continuous improvement of construction qualifications, the company’s construction income in PPP projects, building construction, municipal Engineering, infrastructure and new energy field has gradually took the dominant position, while the proportion of income of pure decoration business slightly decreased. The medical & health industry investment and management mainly adopts a number of ways such as the acquisition of the existing hospital, the construction of the new hospital and operating hospital PPP project to enter the operation and management of medical & health industry, thus to achieve the development of both the construction business and the medical & health business. Currently, the company’s construction qualifications include: first-class qualification as general contractor of housing & construction project, first-class qualification as specialized contractor of architectural decoration engineering design and construction, first-class qualification as specialized contractor of building curtain wall engineering, first-class qualification as specialized contractor of ground foundation engineering, first-class qualification as specialized contractor of firefighting facilities engineering, first-class qualification as specialized contractor of waterproof anti-corrosion insulation engineering, second-class qualification as general contractor of mechanical and electrical engineering construction, second-class qualification as specialized contractor of bridge construction, second-class qualification as general contractor of petrochemical engineering construction, second-class qualification as general contractor of municipal public engineering construction, second-class qualification as specialized contractor of tunnel construction, second-class qualification as specialized contractor of fabrication and installation of hydraulic metal structure, second-class qualification as general contractor of water conservancy and hydropower project construction, third-class qualification as general contractor of railway engineering construction, second-class qualification as general contractor of metallurgical engineering construction, qualification regardless of grades as specialized contractor of special engineering, third-class qualification as specialized contractor of highway pavement engineering, third-class qualification as specialized contractor of highway subgrade engineering etc. The scope covers the engineering qualifications of building, highway, railway, municipal utilities, water conservancy and hydropower, petrochemical, electric power and other types of engineering. For the international business, as of the end of the reporting period, the bid-winning but not yet completed orders have amounted to more than RMB 40 billion, showing a good business development. For the domestic business, the company, through introducing the management pundits and technical experts of fields such as medical-care and architecture, constructed a competitive business team with the senior talented personnel, and sped up the national business layout of PPP business. Since 2016, the company has won a number of health-care PPP projects and infrastructure PPP projects, which would provide a good project support for the company's 8 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 future business performance. Ⅱ.Major Changes in Main Assets 1. Major Changes in Main Assets Main assets Major changes Equity assets There is no change in equity assets. Fixed assets Fixed assets increased by0.89% year on year. the change is subtle. Intangible assets Intangible assets decreased by 2.99% year on year, the change is subtle. Construction in progress increased of 3,788,297.42 yuan at the beginning of the period Construction in process . Mainly due to the current Suzhou plant fire construction and overseas project tower crane installation. 2. Main Conditions of Overseas Assets □ Applicable √ Not applicable Ⅲ.Analysis On core Competitiveness Whether the company needs to comply with the disclosure requirements of the particular industry Yes Civil Engineering Construction Sino Great Wall Co.,Ltd is a leading construction & engineering contractor in China with business covers various types construction & engineering contracting. The implementation of the National Strategy of “One Belt, One Road” will provide a good opportunity for the company's overseas business development. The company continues to increase efforts to open up overseas markets, thus the overseas project orders have maintained a rapid annual growth rate. With the continuous improvement of relevant construction qualifications, the company’s domestic business also will have a lot of good opportunities as the country has been continuously promoted PPP projects. The company's comprehensive strength, overseas influence and market competitiveness have increased year by year. 1. Strategic positioning advantage The “Construction & Engineering contracting” and “Medical & Health Business” will be the company’s two strategic directions for future development. In 2013, the company set up the development goal “Making bigger and stronger overseas business, and to become the world's leading international comprehensive construction & building service provider”. In 2015, the company set up the “Medical & Health business” as another essential development direction. All of those are to comprehensively cater the needs of the national strategies of “One Belt, One Road” and “Medical & Health Industry Development”. The good prospects of “One Belt, One Road” projects and “Medical & Health Industry” will provide a broad market space for the company’s business development. In terms of engineering contracting, the early-development advantage of overseas business enables the company to have rich management experiences and high-quality customers and establish talented teams, thus laid a solid 9 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 foundation for the company’s overseas business development. In terms of the Medical & Health business, the company has set up project teams in many domestic places such as Sichuan, Henan and Hubei, and the company has purchased Wuhan Commercial and Vocational Hospital Co.,Ltd and won the bids of many medical and health PPP projects. Also, the company has established cooperative relationships with many hospitals and has recruited many kinds of talents in terms of medical, hospital management, investment and financing etc, thus provided a strong support for the Medical & Health business development. 2. Standardized and high-efficient management system, fully market-oriented operation mechanism With the increasingly expanding of the company scale and business scope, the management for the company is becoming more complex. However, the company timely set up the sound management system and the authorization system to standardize the approval procedures, reduce the management hierarchy tiers and improve the work efficiency and execution, thus ensured the efficient operation of the company’s business operation. For the operation mechanism, the company bravely faces the fierce competition in the market, adheres to the market-oriented development, respects the objective laws of the market and constantly improves its management level, thus to timely response to changes in the market and continuously improve the company's market image, construction quality and profitability. 3. Integrated design and construction advantages The company has a wide range, high-ranking construction qualifications, and the company has integrated design and construction experiences and good project management capabilities, so the company is able to provide integrated design and construction services in terms of civil engineering, decoration, mechanical and electrical installation and full industry chain of curtain wall, and the company can independently complete the whole process of construction project. The company can form a comprehensive advantage in the field of building engineering, so it can reasonably schedule the procurement, labor use and construction plan, as well as the company can constantly optimize the process to reduce the project costs. The company’s excellent design ability, sound construction quality, high-efficient construction planning and the comprehensive high-quality service greatly enhanced the customers’ satisfaction. 4. Costs advantages and quality-control advantages The core management staff of the company all have more than 10 years experiences of building and engineering construction. Upon the deep understanding of the industry, the company established a relatively perfect material procurement, labor management and quality control system. Through the price ceiling mode for procurement, the company screens the suppliers in the early stage of a project, thus to ensure that the procurement costs of the project materials would be in a reasonable scope. By locking the technical requirements and time requirements of the project, the company can lock the labor costs. The company has set up strict quality-control system for the design drawing, raw material procurement and each aspect of the project construction management, thus to strictly ensue the project construction quality, so the company has won good reputation and got trust and recognition by a great number of customers. 5. Talent advantage The company's core management team staff has many years of experience in construction work and has strong business ability and rich experience, with strong management ability and technological level. The company always adheres to the talent concept of "Employees are the most valuable wealth of the company", and an active and positive management team is the cornerstone of the company's stable, healthy and sustainable development. 10 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 IV. Performance Discussion and Analysis Ⅰ.General In the first half of 2017, along with the continuous implementation and further promotion of the three strategies of the "One belt, one road" construction and the Integrated development of Beijing, Tianjin municipalities and Hebei Province and The Yangtze River economic belt development, the infrastructure construction and the engineering construction enjoys a relatively good development opportunity. The company actively seized the opportunity and strongly expanded the overseas project contracting and investment business of "One belt, one road" projects, increased the domestic healthcare and infrastructure PPP project investment, thus gained good results. In terms of the overseas business development, the company has successively signed the major construction contract with a number of countries and regions in Southeast Asia, signed Strategic Cooperation Framework Agreement with China Nuclear Industry No. 22 Construction Co., Ltd, signed Memorandum of Understanding on the Construction of Kampuchea Railway Network with Kampuchea Royal Group and China Railway 17 Bureau Group Co Ltd, thus those would be conducive to expand the domestic and international engineering contracting business and to enhance the company's competitive advantage and overall profitability. The overseas business development maintained a good momentum of development. As of the end of the reporting period, the overseas in-hand orders have amounted to more than RMB 40 billion. In the field of medical investment, the company, by the means of PPP, won the PPP infrastructure project of Fugou County high speed rail area, the comprehensive management (adjusted) PPP engineering project of Fugou county urban section, the fitness center construction project (Phase II) ) of Fugou County, etc, with that the total investment amounted to RMB 1.061 billion. In the future, based on the study and judgment of the prospect and the status-quo analysis of the domestic and international construction market and the health care industry and the infrastructure industry, the company will continue to strengthen the overseas project contracting and investment related to "One belt, one road", enhance the investment in domestic health-care and infrastructure PPP business, and ensure the rapid development of the company's existing business. Furthermore, in order to ensure the stable development of domestic business, the company responded to the national call of establishment the Xiongan New Area. For supporting the construction of Xiongan New Area, the company planned to put the registration addresses of the company's subordinate companies including the building construction type company-Sino Great Wall International Engineering Co., Ltd and Sino Great Wall Southwest Construction Engineering Co. Ltd into the Xiongan New Area. After the move of the registration addresses, the company can better carry out the business in the region, which is in line with the company's overall development strategy. In the report term, the company realized operation income of RMB 3,025,082,356.80, an increase of 54.85% from the last year; realized the operating profits of RMB 331,347,066.35, an increase of 55.52% from the last year; and the net profit attributable to the parent company was RMB 268,606,450.03, an increase of 32.78% from the last year. Ⅱ.Main business analysis Refer to relevant contents of “1.Summarization” in “Discussion and Analysis of Management”. Changes in the financial data 11 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 In RMB Reporting period Same period of last year YoY+/-(%) Reason for change Overseas projects increased, Operating revenues 3,025,082,356.80 1,953,574,755.51 54.85% domestic PPP and general contracting projects increased. Operating costs 2,319,598,615.76 1,460,727,131.33 58.80% Due to increased income Due to increased business scale Selling expense 18,094,586.39 9,259,264.24 95.42% increases the cost of maintenance. Administrative expense 125,176,758.15 112,993,754.29 10.78% Due to business development. Due to increased short-term Finance costs 139,811,809.59 70,024,674.60 99.66% borrowings. Income taxes 56,227,138.25 37,862,759.83 48.50% Due to increased profits. This year to increase R & D R &D 入 91,252,470.70 64,858,681.88 40.69% investment. Mainly the current period the Net cash generate by payment collection is better, -535,997,580.19 -1,256,615,959.20 57.35% operating activities more than the previous year growth. Net cash generated by Mainly due to investment in PPP -265,219,280.44 -100,287,677.86 -164.46% investing activities project company. Net cash generated by Due to the current return of 1,308,613,716.28 1,383,660,404.96 -5.42% financing activities borrowing. Net increase in cash and Mainly due to the increase in the 502,768,417.94 28,377,720.07 1,671.70% cash equivalents net flow of operating activities. Mainly due to the normal implementation of the Prepayments 187,002,578.78 319,206,798.63 -41.42% procurement contracts and part of the advance payment turning into the costs Mainly due to increase of paid deposit for bid and contract Other account receivable 923,145,857.89 651,012,132.91 41.80% performance for undertaking the large-scale projects Mainly due to the investment in Other non-current asset 365,192,873.00 116,902,258.30 212.39% the establishment of PPP project company Mainly due to the increase in Short-term loans 2,750,186,595.11 1,966,058,357.59 39.88% credit 12 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 Mainly due to the reclassification Non-current liability due in 814,408,879.06 175,958,998.04 362.84% of long-term borrowings due 1 year within one year Mainly due to the reclassification Long-term loan 444,341,594.32 786,858,878.82 -43.53% of long-term borrowings due within one year Mainly due to the increase in Net profit attributable to the 268,606,450.03 202,299,416.64 32.78% business scale during the owners of parent company reporting period Mainly due to the smooth Cash received from sales of 1,722,890,541.67 805,577,789.73 113.87% progress of the project business goods or rending of services and a good collection Major changes to the profit structure or sources of the Company in the reporting period □ Applicable √Not applicable No such cases in the reporting period。 Breaqkdown of main business In RMB Increase/decrease Increase/decrease Increase/decrease of principal of gross profit of reverse in the Operating Gross profit business cost over rate over the operating costs same period of revenue rate(%) the same period same period of the previous of previous year the previous year year(%) (%) (%) Industry EPC 2,036,940,961.32 1,518,629,390.71 25.45% 42.36% 47.50% -2.59% Decoration works 988,141,395.48 800,969,225.05 18.94% 92.03% 86.19% 2.54% Product Area Domestic 1,428,218,809.70 1,017,468,548.83 28.76% -2.02% -3.17% 0.84% Overseas 1,596,863,547.10 1,302,130,066.93 18.46% 222.11% 217.59% 1.16% III.Non-core business analysis □ Applicable √Not applicable IV.Analysis of assets and liabilities 1.Significant changes in asset composition In RMB 13 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 End of same period of last End of Reporting period year Change in As a As a percentage( Reason for significant change percentage percentage Amount Amount %) of total of total assets(%) assets(%) Monetary Mainly due to the increase in current 1,720,256,083.77 18.08% 114,361,163.46 1.98% 16.10% funds loans Mainly due to the progress of the Account implementation of large projects, 4,828,966,377.80 50.74% 3,162,231,825.59 54.69% -3.95% receivable project income increased, the reporting period has not yet received payment. At the end of the period, the amount of raw materials and inventory increased, Inventory 301,728,576.28 3.17% 245,856,552.73 4.25% -1.08% and the unsettled part of the project was completed. Mainly due to the acquisition of Fixed assets 127,345,176.80 1.34% 95,739,662.33 1.66% -0.32% commercial hospitals in the current period. Mainly due to the completion of the Construction installation of the Kuwaiti project 3,788,297.42 0.04% 2,101,034.12 0.04% 0.00% in process crane and the completion of the construction of the Suzhou factory. Short-term Due to the increase in bank borrowings 2,750,186,595.11 28.90% 1,786,708,647.08 30.90% -2.00% loans in the current period. Long-term Due to the increase in bank borrowings 444,341,594.32 4.67% 420,458,334.52 7.27% -2.60% loans in the current period. 2.Asset and Liabilities Measured by Fair Value □ Applicable √ Not applicable 3. Restricted asset rights as of end of the reporting period As of the end of the reporting period, there were no such circumstances where any main assets of the Comapnyweresealed, distrained, forzed, impawned, pledged or limited in any other way. Ⅴ.Investment situation √ Applicable □Not applicable Investments made in the reporting period Investments made in same period of last +/- % 14 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 year 135,075,100.00 97,000,000.00 39.25% 2.Condition of Acquiring Significant Share Right Investment during the Report Period □ Applicable √ Not applicable 3.Situation of the Significant Non-equity Investment Undergoing in the Report Period □ Applicable √ Not applicable 4.Investment of Financial Asset (1)Securities investment □ Applicable √ Not applicable (2)Investment in Derivatives □ Applicable √ Not applicable The Company had no investment in derivatives in the reporting period. VI. Sales of major assets and equity 1. Sales of major assets □ Applicable √ Not applicable The Company had no sales of major assets in the reporting period. 2.Sales of major equity □ Applicable √ Not applicable Ⅶ.Analysis of the Main Share Holding Companies and Share Participating Companies √ Applicable □ Not applicable Situation of Main Subsidiaries and the Joint-stock Company with over 10% net profit influencing to the Company In RMB Main Company Registered Operating Company type business Industry Total assets Net assets Turnover Net profit name capital profit scope Sino Great Constructio Building Wall n general decoration 470,136,09 8,490,666,7 2,052,478,2 2,959,812,9 382,673,8 329,920,483. Subsidiaries Internation contracting, and other 9 22.89 10.74 69.97 00.71 53 al labor constructio 15 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 Engineerin subcontracti n industries g Co., Ltd. ng; engineering survey and design; professional contracting; engineering design for the construction decoration; building curtain wall design, Engineering and technical research and experimenta l developmen t.etc. Subsidiaries obtained or disposed in the reporting period □ Applicable √ Not applicable Notes VIII.Structured vehicle controlled by the Company □ Applicable √ Not applicable IX. Prediction of business performance for January -September 2017 Estimation of accumulative net profit from the beginning of the year to the end of next report period to be loss probably or the warning of its material change compared with the corresponding period of the last year and explanation of reason. □ Applicable √ Not applicable X.Risks facing the Company and countermeasures (1)Influence of Macro Economy and Policy The construction industry and the health-care industry, in which the Company are engaging, are influenced greatly by macro economy and policies. The uncertainty in international and domestic economic situation and the changes of national policy will bring potential risks to the Company’s market development and operating management. 16 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 Solutions: Pay constant attention to the international and domestic economic situation to make reasonable prejudgement. Make timely adjustment for operating strategy and marketing policy and make pre-arranged planning which copes with market changes to guarantee the smooth realization for business goals in 2017. (2)Risks Aggravated by the Market Competition With more competitions which domestic enterprises and international construction market take part in, the Company’s overseas business operating will be impacted more or less. Solutions: Strengthen team construction and take first-mover advantage of the Company’s overseas business. Draw lessons from the past, improve the capacity of management and control for the Company’s own projects to constantly heighten the Company’s core competitiveness. (3)Management Risks Brought by Constant Business Scope Enlargement In views of the period where the Company is in speedy development, the Company has transferred from the sub-contractor of professional decoration to the general contractor of building construction, and the speedy development in overseas business puts forward higher demands to the Company’s organization operating and project management. Solutions: Strengthen learning and training, constantly improve the quality of the on-the-job managers and technicists, introduce high-level personnel and improve the overall management capacity and the technical capacity of the Company to fully adapt to the pace of the Company’s speedy development 17 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 V. Important Events 1. Annual General Meeting and Extraordinary Shareholders’ Meetings in the Reporting Period 1.Annual General Meeting Investor Index to disclosed Meeting Type Convened date Disclosure date participation ratio information 2016 Annual General Meeting (No.2017-042) published on Securities 2016 Annual General Annual General Times,Hong Kong 39.58% May 19,2017 May 20,2017 Meeting Meeting Commercial Daily and Juchao Website (http://www.cninfo.com.cn )on May 20,2017. 2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore □ Applicable √Not applicable II. Proposal for profit distribution and converting capital Reserve into share atial for the reporting period □ Applicable √Not applicable For the reporting period, the Company plans not to distribute cash dividends or bonus shares or convert capital reserve into share capital. III. The fulfilled commitments in the reporting period and under-fulfillment commitments by the end of the reporting period made by the company, shareholder, actual controller, acquirer, director, supervisor, senior management personnel and other related parities. √ Applicable □ Not applicable Time of Period of Commitment making Fulfillme Commitment Type Contents commitme maker commitme nt nt nt Commitment on share No No No No No reform 18 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 Commitment in the acquisition report or No No No No No the report on equity changes Shares acquired by purchases of assets through issuing shares: “I will not transfer the new shares of Victor Onward Holdings acquired through this restructuring, including but not limited to the public transfer through the stock market or by agreement, and I will not entrust anybody else to manage my shares of Victor Onward Holdings, within 36 months from the date new shares list and before the date I’ve carried out my obligations of performance compensation under this restructuring(subject to whatever is early, hereinafter referred to as “lock-up periods”). If the closing price of shares of Victor Onward Holdings were lower than this issue price for 20 continuous trading days in 6 months after the restructuring transaction has been completed, or the final closing price were lower than this issue price 6 months Strict Commitments in Chen Lue, He after the transaction has been completed, the March Stock lock 36 months performi assets reorganization Feiyan lock-up periods of my shares of Victor 19,2015 ng Onward Holdings are automatically prolonged for 6 months. (The above-mentioned issue price will be calculated according to the price after the adjustment of ex-dividend, etc. if ex-dividend behaviors of the company, including distribution of dividends, giving bonus, conversion of share capital, rationing shares, and etc., were happened during the above-mentioned periods. If the restructuring transaction were March 19,2015 36 mont hs Strict perfor ming Shenzhen Victor Onward Textile Industrial Co., Ltd. The Third Quarterly Report 2015. 14 investigated by judicial authorities or China Securities Regulatory Commission due to false record, misleading statement or major omission of the information provided or disclosed, I will not transfer my shares of the company before the 19 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 conclusion of the case has been made clear. After the above-mentioned lock-up periods, I will sell or transfer the new shares of the company acquired from this restructuring following relevant regulations of China Securities Regulatory commission and Shenzhen Stock Exchange. Shares acquired by matching funds raised: “I will not transfer the new shares of Victor Onward Holdings acquired through this issuing by any way, including but not limited Strict to the public transfer through the stock market March Chen Lue Stock lock 36 months performi or by agreement, within 36 months from the 19,2015 ng date new shares list. If regulation rules or regulators have longer requirements for lock-up periods, it should be executed accordingly. Up to the issue day of the letter, I and other corporations controlled by me haven’t possessed funds of Sino Great Wall; After the transaction is completed, I and other companies controlled by me (if any), except for listed companies and their holding subsidiaries, will not possess the funds of listed companies or Sino Great Wall by any way, including cash in advance, other expenses, direct or indirect loans, assumption, etc. and try our best to avoid fund intercourse Strict No capital with listed companies or Sino Great Wall, March Chen Lue Long-term performi occupation which has nothing to do with normal 19,2015 ng operations. If Sino Great Wall got penalized by government administration departments due to the money lending which was happened before the transaction, I will bear the total compensation for the company’s loss resulting from it by cash in order to guarantee Sino Great Wall won’t suffer any loss. Meanwhile, I will actively urge Sino Great Wall to establish complete inner control system and funds management system within lawful authority. Cash In view of the fact that the houses rented by March Strict Chen Lue Long-term compensat Sino Great Wall and it’s son subsidiaries, 19,2015 performi 20 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 ion subsidiaries, haven’t rental registration, I ng promise, if Sino Great Wall and its son subsidiaries, subsidiaries, were penalized by real estate management department or suffered other losses resulting from it, I agree to compensate the loss of the company by cash. During the reporting period, the project which Sino Great Wall is involved in is the decoration engineering construction project of Libo Grand Hotel (hereinafter referred to as “Libo project”) which the company contracted before the bidding process. Sino Great Wall is not involved in any other projects except for Libo project before bidding process. As to the violating issues Cash Strict existed in the Libo project, I promise as March Chen Lue compensat Long-term performi follows: if Sino Great Wall got penalized by 19,2015 ion ng government administration departments or suffered any economic loss resulted from it, I will compensate the company by cash; Meanwhile, I, within lawful authority, will also promise to urge the company to undertake related construction projects legally so as to avoid violating issues happened before implementation of bidding process, i.e., at the time for construction again. “1. Up to October 13th,2014, the related expenses of the litigation and arbitration cases, including the actual price, compensation, penalty, ligation costs, etc. which the parent-subsidiary companies of Sino Great Wall needs to pay caused by the final results of ligation and arbitration cases, Cash Strict exceed the amount of liabilities which March Chen Lue compensat Long-term performi recognized in the “Audit Report” made for 19,2015 ion ng Sino Great Wall by Ruihua CPA (Special Ordinary Partnership) on the basis of the audit base day of July 31st, 2014, I promise to bear the balance by cash unconditionally so as to guarantee the parent-subsidiaries of Sino Great Wall won’t suffer any loss. 2. This commitment letter is irrevocable. 21 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 1. On condition that ownership defect exists in the lease of house property of parent-subsidiary companies of Sino Great Wall and its subsidiary corporation, which resulted in inability for parent-subsidiary companies of Sino Great Wall and its subsidiary corporation to continue leasing this house property but having to relocate, or parent-subsidiary companies of Sino Great Wall and its subsidiary corporation can’t timely find suitable workplace for lawful operation in related area, I will undertake to Cash compensate by cash for parent-subsidiary Strict March Chen Lue compensat companies of Sino Great Wall’s losses which Long-term performi 19,2015 ion are caused by operation and finance due to the ng above-mentioned matters. 2. I undertake to unconditionally bear the relevant fines by cash for parent-subsidiary companies of Sino Great Wall on condition that the rental house property of parent-subsidiary companies of Sino Great Wall and its subsidiary corporation is in absence of handling procedures for filing house leasing ,which resulted in that parent-subsidiary companies of Sino Great Wall and its subsidiary corporation are fined by property administrative department. 3.The commitment letter is irrevocable. “In condition that parent-subsidiary companies of Sino Great Wall or its son subsidiary haven’t paid social security or housing fund for staff according to law, which resulted in any losses to Sino Great Wall , including the competent authorities’ Cash Strict requirement for Sino Great Wall or its March Chen Lue compensat Long-term performi subsidiary to make supplementary payment, 19,2015 ion ng to be punished and resourced, I will bear by full-amount cash for the fee of supplemental payment and the expense and fee for being punished or resourced, which is to guarantee Sino Great Wall and its subsidiary to avoid suffering from any loss ”. Cash “At present, Suzhou Lvbang has possessed March Strict Chen Lue Long-term compensat one state-own land use right, of which the 19,2015 performi 22 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 ion land certificate is Suzhou Guo Yong(2014) ng No.Y2014086”, locates in Danan Village, Dadian Town, Yongqiao District, Suzhou City with 32,966 square meters of area and the purpose for industry. Suzhou Lvbang possesses its own factory with 9,843.87 square meters of area above-mentioned, which is the building reserved on the former selling land. Suzhou Lvbang is carrying out refurnishing and reconstruction for this factory and has acquired “License of Construction Land Planning ”with No.2014-08-001 approved and issued by Yongqiao District, Suzhou City’s housing and rural construction bureau, of which other examination and approval procedures of construction are in the process of handling “I undertake to actively supervise and urge Suzhou Lvbang on handling procedures of the approval process involved with factor refurnishing and reconstruction, and which is suffered from administrative punishment by relevant competent authorities in reason of claiming certificate of title, or in which any dispute or controversy exist in construction and ownership, which shall be my responsibility to carry out solution, and I undertake to compensate by cash for Suzhou Lvbang’s losses which are due to this matter, guaranteeing no losses occur to Sino Great Wall and Suzhou Lvbang for this matter. “According to the “Agreement of Significant Asset Replacement and Issue of Share to Buy Asset”(hereinafter referred to as “Agreement”) signed among Victor Onward Holdings, all shareholders of Sino Great Wall Cash and Union Development Group Co., Ltd Strict March Chen Lue compensat (hereinafter referred to as“ Union Group”) on Long-term performi 19,2015 ion October 13, 2014, all the creditor’s rights and ng liabilities related to place-out asset before the delivery date of Victor Onward Holdings shall be Union Group’s responsibility to carry out solution; After the asset delivery date, if any losses occur to Victor Onward Holdings in 23 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 reason of the liability transfer of asset delivery, personnel placement, unsettled dispute or controversy and other compensation related to place-out asset, payment obligation and punishment, Union Group or the specified third party shall sufficiently compensate all losses for Victor Onward Holdings for the above matters. I undertake, if Union Group and the specified third party refuse to compensate the losses caused by the above mentioned matters for Victor Onward Holdings according to the“ Agreement”, I will compensate by cash for the Victor Onward Company within 5 working day in advance. Meanwhile, I will reserve the resource rights for Union Group and the specified third party “. According to“ Agreement of Shenzhen Victor Onward Textile Industrial Co., Ltd., Chen Lue and He Feiyan Concerning on Performance Compensation” and its supplemental agreement , Chen Lue’s promised Sino Great Wall that the net profit deducted by incidental Performan losses and attributable to the parent Strict Chen Lue , He ce companies’ owners after audition of 2015, May Long-term performi Feiyan commitme 2016 and 2017 shall be respectively more 11,2015 ng nt than RMB 345.8 million, RMB 438.5 million and RMB 538.2 million. If the net profit of Sino Great Wall is less than the promised net profit mentioned above , Chen Lue and He Feiyan will compensate for listed company in accordance with “Performance Compensation Agreement” and its supplemental agreement 1. This reorganization is planned to place in asset. At present, complete separation has existed between me or other enterprises under my possession (if any) and the listed company ndependen in staff, asset, finance, institution and business Strict Chen Lue; He t September of Sino Great Wall. Independence exists in Long-term performi Feiyan, competitio 30,2015 both staff, asset, finance, institution and ng n business and no confusion exists. 2. I undertake, after this reorganization, to ensure the continued complete separation between me or other enterprises under my 24 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 possession(if any) and the listed company in staff, asset, finance, institution and business, sustaining the independence in the listed company’s staff, asset, finance, institution and business, as follows: (1).The Ensurance of Independence for Listed Company’s Personnel Ensure that the general manager, the vice-general manger, the chief financial officer, the board secretary and the senior executives of the Company only accept salary in listed company, including no holding of any post except director and supervisor in my enterprise or other enterprises under my possession. 2.Ensure the complete independence exists among the listed company’s labor, personnel, and salary management and me. 3. The director, supervisor, general manager and other senior executives recommended by me have all been through the legal procedures, and I will not intervene the company’s board and the shareholder’s decision for appointing and dismissing personnel by exercising official power. (2)The Ensurance of the Asset Independence of Listed Company 1.Ensure that the listed company possesses business system related to operation and the relevant completely-independent asset. 2.Ensure that no occupation of mine exists in capitals and assets of the listed company. 3.The Ensurance of the Financial Independence of Listed Company 1.Ensure that the independent finance department and the independent financial calculating system set up by the listed company, which possess normative and independent financial and accounting rules. 2. Ensure that the listed company independently opens a bank account, not sharing the same bank account with me. 3.Ensure that the financial staff of the listed company holds no part-time post in my enterprise and other enterprises under my possession. 4. Ensure that the listed company pays taxes according to law. 5. Ensure that the listed company 25 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 makes the financial decision-making independently, I will not intervene the utilization of the listed company’s capital. (4)The Ensurance of the Institutional Independence of Listed Company 1.Ensure that the listed company sets up perfect governance structure for the share company’s legal person, which possesses independent and complete institutional framework 2.Ensure that the shareholder’s meeting, the board of director, the independent director, the supervisor and the general managers exercise official powers according to laws, regulations and articles of incorporation (5)The Ensurance of the Business Independence of Listed Company 1. Ensure that the listed company possesses the asset, staff, qualification and ability for independently holding business activities, which possesses the independent, autonomous and sustain operation ability catering to the market. 2. Ensure that I will not intervene the listed company’s business activities except exercising shareholder’s rights. 3.Ensure that I or other enterprises under my possession will avoid working on the listed company’s main business which possesses substantial competition. 4. Ensure to reduce the related transaction between me and the listed company or between other enterprises under my possession and the listed company as much as possible; When confirming necessary but unavoidable related transaction, I will ensure the fair operation according to the principle of market culture and the fair price, and fulfill the transaction procedures and the obligation of disclosing information according to relevant laws and regulations and normative document. " “Once I or our unit acquire the newly-added share of Victor Onward Company through this Strict Chen Lue; He Related March transaction, no transfers will occur in any way Lont-term performin Feiyan; transaction 19,2015 within 12 months from the listing date, g including but not limited to public transfer by 26 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 securities market or transfer by agreement, and no entrusting for others to manage my holding share of Victor Onward Holdings . Once the above-mentioned lockup period expires, I will implement the selling or transferring of the newly-added share of Victor Onward Holdings according to the relevant provision of CSRC and SZSE. During the assets reorganization, the house property and land without property certificate in the disposed assets within the plant area of Kuixin Community of Kuichong Street of Longgang District and the expected compensations, as well as the expected compensations concerning to the regaining of plots planned as schools within the right of land use of Nanyou Industrial Park of Nanshan District have not been recorded in the assessment. Therefore, Union Group promises that after the reorganization, if Union or a third party appointed by Union receives compensations or incomes related toabove-mentioned disposed assets which are house property and land without property Union certificate as well as regaining of plots Strict Development Income planned as schools, Union will return the March Long-term performin Group Co., disposal benefits to Victor Onward Holdings, in 10 19,2015 g Ltd. working days since the collection. The actual costs and fees during the possession of the house property and land and the paid as well as the unpaid but necessary costs and fees for the reception of the above-mentioned benefits for Union Group or its third party will be deducted from the income. The specific benefits and payable costs and fees should be confirmed jointly by Union Group and Victor Onward Holdings based on the actual situations. ( Notes:On June 25, 2015,All shareholders of Victor Onward Holdings, Union Group and Sino Great Wall Signed supplementary agreement, and specified that the land and houses without ownership certificate of Victor Onward Holdings located at the factory area of Kuixin community of 27 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 Kuichong street office of Longgang district (the land area is about 50,000 square meters, the built-up area of houses is about 25,000 square meters, among them about 18,000 square meters of buildings at built-up area are within the plan of removal and collection of government , hereinafter referred as “undocumented property) still belongs to Victor Onward Holdings. And the benefits and risks of the real estate without certificate are enjoyed and assumed by Victor Onward Holdings.” According to the Term 5.5.3 of Agreement on Major Asset Replacement and Asset Purchase Through Issuing Shares (hereinafter referred to as Agreement) signed on October 13, 2014 by the company and all shareholders of Victor Onward Co. Ltd.. and Sino Great Wall, Victor Onward Holdings should obtain the letter of approval concerning the transferred debts of the disposed assets from the creditor (including the guarantee, similarly hereinafter) before the date of assets delivery. In the situation of debts on Victor Onward Holdings due to the absence of creditor’s consent, the company or the third party Union appointed by the company is in charge of Cash Strict Development paying off debts or reaching agreement on the March compensat Long-term performin Group Co., solution with the creditor. When there are 19,2015 ion g Ltd losses caused by improper solutions of the company or the third party appointed by the company, the company or the third party appointed by the company will fully compensate for the caused losses of Victor Onward Holdings in 5 working days after receiving the notice. According to the Term 5.5.4 of Agreement, after the date of assets delivery, any compensations, obligations of payment and penalties caused by disposed assets as well as unsettled disputes in Victor Onward Holdings will be undertaken and solved by the company or the third party appointed by the company, and Victor Onward Holdings assumes no responsibility. 28 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 When there are losses caused by it, the company or the third party appointed by the company will fully compensate for the caused losses of Victor Onward Holdings in 5 working days after receiving the notice. According to the Term 5.6.1 of Agreement and based on the principle of “staff arrangement according to the assets”, the labor relations, social insurance relations including pension, medical treatment, unemployment, working injury and maternity, and other liable welfare and salary of all the staff in Victor Onward Holdings. (including but not limited to on-post Shenzhen Victor Onward Textile Industrial Co., Ltd. The Third Quarterly Report 2015. 25 employees, employees awaiting job assignments, retired employees, retained employees with suspend salary, transferred employees, and temporary employees, etc) will be transferred to the company or the third party appointed by the company. Compensations or related matters (if any) due to the termination of labor relationship in advance with Victor Onward Holdings, the company or the third party appointed by the company will be in charge of the payment. The company promises that for the losses caused by matters such as the above-mentioned debt transfers of disposed assets, personnel arrangement, unsettled disputes, potential debts, payment obligations and penalties, the company or the third party appointed by the company will fully compensate for the losses of Victor Onward Holdings due to the above-mentioned matters based on the Agreement in cash. 1.Guarantee that interest will be transferred to other units or individuals which are with compensation or without fair conditions, All directors Strict neither other ways which are harmful to the July of the Fill returns Long-term performin Company’s interest will be 7,2016 company g adopted;2.Guarantee restraint conduction for the duty consuming behavior of directors and senior managers;3.Guarantee that no capital 29 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 of the Company will be employed for engaging in investment or consumption which are not involved with duty performance;4.Guarantee that the compensation system formulated by the board of director or Compensation and Assessment Committee is linked with the exertion situation of the Company’s return filling solution;5. Shall stock incentive mechanism subsequently be introduced by the Company, the exertion condition of the Company’s stock incentive mechanism which is intended to be published is guaranteed to be linked with the exertion situation of the Company’s return filling solution;6.When stock incentive mechanism is intended to be carried out subsequently , I promise, within the legal range, to prompt the exertion condition of the Company’s stock incentive mechanism which is intended to publish is guaranteed to be linked with the exertion situation of the Company’s return filling solution;7. I promise the commitments above will be fulfilled strictly, and guarantee actual fulfillment for the Company’s return filling solution. Shall any commitments be violated or be refused to fulfill by me, I will fulfill corresponding obligations of explanation and apology according to relevant regulations of Guidance on First Issue, Refinancing, Major Asset Reorganization and Dilution for Return at Sight by CSRC, and will approve the supervision measures or self-discipline supervision measures made by CSRC, SZSE and China Association for Public Companies. Any losses occurred upon he Company or the shareholders, I am willing to undertake the responsibility for corresponding compensation in accordance with laws. Guarantee that no operating management will Strict Chen Lue, He July Fill returns be intervened with exceeded authority, and no Long-term performin Feiyan 7,2016 interest of the Company will be expropriated. g Commitments make in No No No No initial public offering 30 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 or re-financing Equity incentive No No No No commitment Other commitments for medium and small No No No No shareholders Completed on Yes time(Y/N) If the commitments is not fulfilled on time, shall explain the Nil specify reason and the next work plan IV. Particulars about engagement and disengagement of CPAs firm Whether the semi-annual financial report had been audited? □ Yes √ No The semi-annual financial report has not been audited. V.Explanations given by board of directors and supervisory board regarding “ Modified auditor’s” Issued by CPAs firm for the reporting period □ Applicable √ Not applicable VI. Explanations given by Board of Directors regarding “ Modified auditor’s Report” Issuedfor last year □ Applicable √ Not applicable VII. Bankruptcy and restructuring □ Applicable √ Not applicable No such cases in the reporting period. VIII. Legal lmatters Signifieant lawsuits or arbitrations □ Applicable √ Not applicable No such cases in the reporing period. Other legal matters □ Applicable √ Not applicable 31 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 IX. Punishments and rectifications □ Applicable √ Not applicable No such cases in the reporing period. X. Credit conditions of the Company as well as its Controlling shareholder and actual Controller □ Applicable √ Not applicable XI.Equity incentive plans, employee stock ownership plans or other incentive measures for employees √ Applicable □Not applicable The second meeting of the seventh board of directors, the second meeting of the seventh board of supervisors and the 2015 third extraordinary general shareholder meeting were respectively convened by the company on Nov 5, 2015 and Nov 23, 2015, at which the Proposal on the First Phase of Employee Stock Ownership Plan (draft) of Shenzhen Victor Onward Textile Industrial Co., Ltd was examined and approved. Please refer to the published on November 7, 2015 and November 24, 2017, the securities times, the Hong Kong Commercial Daily and cninfo (www.cninfo.com.cn) on the relevant announcement. On December 24, 2015, the company as the asset trustor of the ESOP asset management plan, together with the asset manager- Xingzheng Securities Asset Management Co.,Ltd and the asset trustee- China Everbright Bank Co.,Ltd signed the contract of No.57 Xing Zheng Zi Guan Xin Zhong Assets Management Contract of the Collection Assets Management Plan which concretely explained and stipulated the information included the basic information of the collection plan, participating in and withdrawal of the collection plan, guarantee, classification of the collection plan, the management methods and the management rights of the customer assets in the collection plan, the establishment of the collection plan, the expenses of the collection plan, the proceeds and its distribution of the collection plan, investment philosophy and investment strategy, investment decision-making and risk control, restrictions and prohibited behaviors of investment, information disclosure of the collection plan, transfer of the share of the collection plan, non-transaction transfer ownership and freezing and so on. Please refer to the published on December 29, 2015, the securities times, the Hong Kong Commercial Daily and cninfo (www.cninfo.com.cn) on the relevant announcement. As of January 7, 2016, the company’s first phase of the employee stock ownership plan has completed the share-purchasing by means of buying in the secondary security market, of which the average position price is RMB44.7578 per share, the total purchase quantity is 0.833187 million shares which account for 0.1864% of the company's total share capital, and the total turnover is RMB37.29163 million. The lock-up period of the shares purchased under the plan is 12 months commenced from the date of this announcement. Please refer to the published on January 8, 2016, the securities times, the Hong Kong Commercial Daily and cninfo (www.cninfo.com.cn) on the relevant announcement. XII.Material related transactions 1. Related transactions in connection with daily operation □ Applicable √ Not applicable 32 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 No such cases in the reporing period. 2. Related-party transactions arising from asset acquisition or sold □Applicable √ Not applicable No such cases in the reporing period. 3. Related-party transitions with joint investments □Applicable √ Not applicable No such cases in the reporing period. 4. Credits and liabilities with related parties □Applicable √ Not applicable No such cases in the reporing period. 5. Other significant related-party transactions □Applicable √ Not applicable No such cases in the reporing period. XIII.Particulars about the non-operating occupation of funds by the Controlling shareholderand other related parties of the Company □Applicable √ Not applicable The company was not involved in the non-operating occupation of funds by the controlling shareholder and other related parties during the reporting period. XIV. Siginficant contracts and execution 1.Entrustments, contracting and leasing (1)Entrustment □Applicable √ Not applicable No such cases in the reporing period. (2)Contracting □Applicable √ Not applicable No such cases in the reporing period. 33 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 (3)Leasing □Applicable √ Not applicable No such cases in the reporing period. 2.Significant guarantees √ Applicable □Not applicable (1)Guarantees In RMB’0000 Guarantee of the Company for the controlling subsidiaries (Exclude controlled subsidiaries) Relevant Date of Guarantee disclosure Complete Name of happening Actual for date/No. of Amount of Guarantee implemen the (Date of mount of Guarantee type associated the Guarantee term tation Company signing guarantee parties guaranteed or not agreement) (Yes or no) amount Total of external guarantee Total of external guarantee approved in the report term 0 actually occurred in the report 0 (A1) term (A2) Total of external guarantee Total of external guarantee approved as of end of report 0 actually occurred as of end of 0 term (A3) report term (A4) Guarantee of the company for its subsidiaries Guarantee Amount of Amount of Actual date of Actual amount Type of Complet Related provided guarantee and date the occurring (signing Term of guarantee guarantee ed or not guarantee to of disclosure guarantee date of agreements The joint Sino Great March 31,2016 14,000 July 12,2016 14,000 liability 1 year No No Wall guaranty The joint Sino Great March 31,2016 13,000 October 28,2016 13,000 liability 1 year No No Wall guaranty The joint Sino Great March 31,2016 7,000 February 28,2017 7,000 liability 1 year No No Wall guaranty The joint Sino Great March 31,2016 20,000 April 11,2017 20,000 liability 1 year No No Wall guaranty The joint Sino Great March 31,2016 15,000 July 19,2016 15,000 liability 1 year No No Wall guaranty 34 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 The joint Sino Great March 31,2016 5,000 August 8,2016 5,000 liability 1 year No No Wall guaranty The joint Sino Great March 31,2016 20,000 October 31,2016 20,000 liability 1 year No No Wall guaranty The joint Sino Great March 31,2016 25,000 December 20,2016 25,000 liability 1 year No No Wall guaranty The joint Sino Great March 31,2016 18,000 January 3,2017 18,000 liability 1 year No No Wall guaranty The joint Sino Great May 19,2017 12,000 June 7,2017 12,000 liability 1 year No No Wall guaranty The joint Sino Great December 27,2016 8,400 March 31,2017 8,400 liability 2.5 year No No Wall guaranty The joint Sino Great December 27,2016 10,000 January 10,2017 10,000 liability 3 year No No Wall guaranty The joint Sino Great March 31,2016 9,700 February 21,2017 9,700 liability 0.5 year No No Wall guaranty Sino The joint Internation 30,000 December 21,2016 30,000 liability 1 year No No al guaranty Sino The joint Internation 25,714 August 25,2016 25,714 liability 1 year No No al guaranty Sino The joint Internation 25,000 January 13,2017 25,000 liability 1 year No No al guaranty Sino The joint Internation 20,000 January 13,2017 20,000 liability 1 year No No al guaranty Sino The joint Internation 20,000 June 21,2016 20,000 liability 1 year No No al guaranty Sino 10,000 August 22,2016 10,000 The joint 1 year No No 35 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 Internation liability al guaranty Sino The joint Internation 50,000 November 22,2016 50,000 liability 1 year No No al guaranty Sino The joint Internation 20,000 April 19,2016 20,000 liability 2 year No No al guaranty Sino The joint Internation 30,000 May 10,2017 30,000 liability 3 year No No al guaranty Sino The joint Internation 80,000 April 17,2017 80,000 liability 1 year No No al guaranty Sino The joint Internation 5,000 May 27,2017 5,000 liability 1 year No No al guaranty Sino The joint Internation 40,000 June 23,2017 40,000 liability 1 year No No al guaranty Sino The joint Internation 10,000 June 28,2017 10,000 liability 1 year No No al guaranty Total of guarantee for Total of actual guarantee subsidiaries 900,000 for subsidiaries in the 227,100 approved in the Period (B1) Period (B2) Total of guarantee for Total of actual guarantee subsidiaries 227,100 for subsidiaries at 227,100 approved at Period-end (B3) Period-end (B4) Guarantee of the subsidiaries for the controlling subsidiaries Guarante Relevant Complet e Date of Name of disclosure e for Amount happening Actual the date/No. of Guarantee Guarant impleme associate of (Date o mount of Company the type ee term ntation d guarantee signing guarantee guaranteed guaranteed or parties agreement) amount not (Yes or no) Total guarantee quota to the Total amount of guarantee to the 0 0 subsidiaries approved in the subsidiaries actually incurred in 36 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 reporting period (C1) the reporting period (C2) Total guarantee quota to the Total balance of actual guarantee subsidiaries approved at the end 0 to the subsidiaries at the end of 0 of the reporting period (C3) the reporting period (C4) Total of Company’s guarantee(namely total of the large three aforementioned) Total of guarantee in the Period Total of actual guarantee in 900,000 227,100 (A1+B1+C1) the Period(A2+B2+C2) Total of actual guarantee at Total of guarantee at Period-end 227,100 Period-end 227,100 (A3+B3+C3) (A4+B4+C4) The proportion of the total amount of actually guarantee in thenet 116.06% assets of the Company(A4+B4+C4) Including: Amount of guarantee for shareholders, actual controller and its 0 associated parties(D) The debts guarantee amount provided for the Guaranteed parties whose assets-liability ratio exceed 0 70% directly or indirectly(E) Explanations on possibly bearing joint and several None liquidatingresponsibilities for undue guarantees ( If any) Explanations on external guarantee against regulated None procedures(If any) Description of the guarantee with complex method (2)Illegal providing of external guarantees □ Applicable √Not applicable No illegal providing of external guarantees in the report period. 3. Other significant contracts □Applicable √ Not applicable No such cases in the reporing period. XV.Social responsibilities 1.Overview of the annual targeted poverty alleviation 37 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 (1)Half-year poverty relieving summary (2)Information of the listed company’s annual work in targeted poverty alleviation Measurement Index Quantity / Status unit I. General situation —— —— II.Itemized investment —— —— 1.Industrial development for getting rid of poverty —— —— 2.Transferred to employment to get rid of poverty —— —— 3.Relocation to get rid of poverty —— —— 4.Education to get rid of poverty —— —— 5.Improving Health to get rid of poverty —— —— 6.Ecological protection to poverty alleviation —— —— 7.Bottom-line Safeguard —— —— 8.Social poverty alleviation —— —— 9.Other items —— —— III.Awards (content, level) —— —— (3)Subsequent targeted poverty alleviation program 2. Information of performance of other social responsibilities For details, please see the Social Responsibility Report disclosed by the company on the same day. Listed company and its subsidiary belongs to the key pollution enterprise listed by Department of Environmental Protection No XVI.Other material events √ Applicable □Not applicable On July 7, 2016, At the 10th board meeting of the 7th session board of directors held by the company, the Proposal about Sino Great Wall Co.,Ltd's Non-public Issuance of A Share was examined and approved, planning to issue shares to Sino Great Wall (Beijing) Investment Co., Ltd, Beijing An'ben Helath-care Investment Holdings Co.,Ltd and Mr. Zheng Jihua with the raising money of RMB 2.5 billion. On October 14, 2016, CSRC accepted the company's application of Non-public Issuance of Shares. On February 16,2017, At the 16th board meeting of the 7th session board of directors held by the company, the Proposal about Adjusting the Non-public Share Issuance Plan of the Company was examined and approved, with the total amount of raising money adjusted to be RMB 900 million. On March 22,2017, The company's application of non-public A-share issuance had been examined and 38 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 approved by the Issuance Examination Commission of CSRC. On July 21, 2017, the company received the Approval for Sino Great Wall Co.,Ltd's Non-public Share Issuance by CSRC (No. 1145-2017 CSRC Permission). The company's board of directors will, in accordance with the relevant laws and regulations, the requirement of the above-said approval document and the authorization of the company's shareholders' general meeting, handle the relevant matters of this non-public share issuance within the stipulated term and fulfill the obligation of information disclosure in a timely manner. XVII. Material events of subsidiaries □ Applicable √ Not applicable 39 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 VI. Change of share capital and shareholding of Principal Shareholders I.Changes in share capital 1. Changes in share capital In shares Before the change Increase/decrease(+,-) After the Change Amount Proportion Capitalization Share Bonus Proportio of common Other Subtotal Quantity allotment shares n reserve fund I. Share with conditional 681,035,811 40.10% -360,375 -360,375 680,675,436 40.08% subscription 3.Other 681,035,811 40.10% -360,375 -360,375 680,675,436 40.08% domestic shares Of which: Domestic legal 42,479,672 2.50% 0 0 42,479,672 2.50% person shares Domestic natural person 638,556,139 37.60% -360,375 -360,375 638,195,764 37.58% shares II. Shares with unconditional 1,017,209,200 59.90% 360,375 360,375 1,017,569,575 59.92% subscription 1.Common 753,405,969 44.36% 360,375 360,375 753,766,344 44.39% shares in RMB .Foreign shares in domestic 263,803,231 15.53% 0 0 263,803,231 15.53% market III. Total of 1,698,245,011 100.00% 0 0 1,698,245,011 100.00% capital shares Reasons for share changed: □ Applicable √ Not applicable Approval of Change of Shares □ Applicable √ Not applicable Ownership transfer of share changes □ Applicable √ Not applicable Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to 40 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 common shareholders of Company in latest year and period □ Applicable √ Not applicable Other information necessary to disclose for the company or need to disclosed under requirement from security regulators □ Applicable √ Not applicable 2. Change of shares with limited sales condition □ Applicable √ Not applicable II.Issuing and listing □ Applicable √ Not applicable III. Shareholders and shareholding In Shares Total number of preferred Total number of common shareholders that had restored the shareholders at the end of the 60,193 0 voting right at the end of the reporting period reporting period (if any) (note 8) Shareholding of shareholders holding more than 5% shares Number of Number os share Proportion Changes in Amount of Amount of Nuture of shares held pledged/frozen Shareholders of shares reporting restricted un-restricted shareholder at period State of held(%) period shares held shares held Amount -end share Domestic Natural Chen Lue 34.36% 583,454,556 +510,000 581,722,696 1,731,860 Mortgage 455,260,594 person STYLE-SUCC Foreign legal 5.47% 92,970,910 0 0 92,970,910 ESS LIMITED person Domestic Non- Union Holdings State-owned legal 5.18% 87,935,921 0 0 87,935,921 Co., Ltd. person Domestic Natural He Feiyan 3.23% 54,800,458 0 54,800,458 person Jiutai Fund - Bank of Communication Other 2.50% 42,479,672 0 42,479,672 s - Jiutai Huitong No.2 41 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 specific customer asset management plan Rich Crown Foreign legal Investment Co., 1.37% 23,235,313 0 0 23,235,313 person Ltd. Bank of China -Fortis Income Growth Other 1.12% 18,961,320 +761,000 0 18,961,320 Securities Investment Fund Jiangxi Taihao Domestic Non- Venture legal person 1.11% 18,791,879 0 0 18,791,879 Investment State-owned legal Centre(LP) person Qianhai life insuranceCo., Other 1.04% 17,725,200 +17,725,200 0 17,725,200 ltd-Haley year Qinghai Heyi Domestic Non- Industry legal person 0.79% 13,356,984 0 0 13,356,984 Development State-owned legal Co., Ltd. person Strategy investors or general legal person becomes top 10 shareholders None due to rights issued (if applicable)See Notes 3) Chen Lue and He Feiyan are consortium officers; Union Development Group Ltd. is the Explanation on associated controlling shareholder of the above-mentioned shareholder Shenzhen Union Holdings Ltd. relationship or concerted action of and third shareholder Rich Crown Investment Co., Ltd. The other tradable shareholders the above shareholders neither knew whether there exists associated relationship between them. Shareholding of top 10 shareholders of unrestricted shares Quantity of unrestricted shares held at the end of the Share type Name of the shareholder reporting period Share type Quantity Foreign shares placed STYLE-SUCCESS LIMITED 92,970,910 92,970,910 in domestic exchange Union Holdings Co., Ltd. 87,935,921 RMB Common shares 87,935,921 Rich Crown Investment Co., Ltd. 23,235,313 Foreign shares placed 23,235,313 42 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 in domestic exchange Bank of China-Fortis Income 18,961,320 RMB Common shares 18,961,320 Growth Securities Investment Fund Jiangxi Taihao Venture Investment 18,791,879 RMB Common shares 18,791,879 Centre(LP) Qianhai life insuranceCo., ltd- 17,725,200 RMB Common shares 17,725,200 Haley year Qinghai Heyi Industry Development 13,356,984 RMB Common shares 13,356,984 Co., Ltd. China International finance Co., 12,109,500 RMB Common shares 12,109,500 Ltd. Huatai Securities Co., Ltd. 11,127,400 RMB Common shares 11,127,400 Huang Huaian 10,115,000 RMB Common shares 10,115,000 Explanation on associated relationship or consistent action The controlling shareholder of the above-mentioned largest shareholder Shenzhen Union among the top 10 shareholders of Holdings Ltd. and third shareholder Rich Crown Investment Co., Ltd.. Is Union Development non-restricted negotiable shares and Group Ltd. that between the top 10 shareholders of non-restricted negotiable shares and top 10 shareholders Notes to the shareholders involved in financing securities (if any)(See None Notes 4) Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreement dealing in reporting period. □ Yes √ No The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company have no buy –back agreement dealing in reporting period. IV. Change of the controlling shareholder or the actual controller Change of the controlling shareholder in the reporting period □ Applicable √ Not Applicable There was no any change of the controlling shareholder of the Company in the reporting period. Change of the actual controller in the reporting period □ Applicable √ Not applicable There was no any change of the actual controller of the Company in the reporting period. 43 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 VII. Situation of the Preferred Shares □Applicable √Not applicable The Company had no preferred shares in the reporting period 44 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 VIII. Information about Directors, Supervisors and Senior Executives I. Change in shares held by directors, supervisors and senior executives √ Applicable □Not applicable Amount Amount of of Number of Number of shares shares restricted Number of Shares held at Shares held restricted increased decrease stock restricted stock Office the at the stock granted Name Position at the d at the granted at granted at the status year-begin(sh year-ending at the reporting reportin the year-ending(shar are) (share) reporting period(sha g year-begin e) period(share) re) period(s . share) hare) Chairman, Chen General In office 582,944,556 510,000 0 583,454,556 Lue Manager Vice chairman, Li Duputy In office 11,400 0 0 11,400 0 0 0 Erlong General Manager Yang Secretary to Chunlin the board of In office 0 35,500 0 35,500 0 0 0 g directors Total -- -- 582,955,956 545,500 0 583,501,456 0 0 0 II. Change in shares held by directors, supervisors and senior executives □ Applicable √ Not applicable 45 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 IX. Corporate Bond Whether the company has corporate bonds that have been publicly issued and listed on the stock exchange, and not yet due or due butnot folly cashed on the approval date of annual report No 46 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 X. Financial Report I. Audit report Has this semi-annual report been audited? □ Yes √ No The semi-annual financial report has not been audited. II. Financial statements Currency unit for the statements in the notes to these financial statements:RMB 1.Consolidated Balance sheet Prepared by : Sino Great Wall Co., Ltd. August 10,2017 In RMB Items Year-end balance Year-beginning balance Current asset: Monetary fund 1,720,256,083.77 1,340,815,821.83 Settlement provision Outgoing call loan Financial assets measured at fair value with variations accounted into current income account Derivative financial assets Bill receivable 781,067,587.68 1,074,390,642.58 Account receivable 4,828,966,377.80 3,725,170,208.31 Prepayments 187,002,578.78 319,206,798.63 Insurance receivable Reinsurance receivable Provisions of Reinsurance contracts receivable Interest receivable Dividend receivable Other account receivable 923,145,857.89 651,012,132.91 47 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 Repurchasing of financial assets Inventories 301,728,576.28 332,904,930.36 Assets held for sales Non-current asset due in 1 year 7,961,594.15 13,462,942.89 Other current asset 11,484,244.83 35,450,194.47 Total of current assets 8,761,612,901.18 7,492,413,671.98 Non-current assets: Loans and payment on other’s behalf disbursed Disposable financial asset Expired investment in possess Long-term receivable Long term share equity investment Property investment Fixed assets 127,345,176.80 128,483,747.74 Construction in progress 3,788,297.42 Engineering material Fixed asset disposal Production physical assets Gas & petrol Intangible assets 104,308,769.67 106,203,443.55 R & D petrol Goodwill 58,874,144.79 58,874,144.79 Long-germ expenses to be amortized 5,117,815.00 7,003,035.93 Differed income tax asset 90,480,456.69 76,298,659.34 Other non-current asset 365,192,873.00 116,902,258.30 Total of non-current assets 755,107,533.37 493,765,289.65 Total of assets 9,516,720,434.55 7,986,178,961.63 Current liabilities Short-term loans 2,750,186,595.11 1,966,058,357.59 Loan from Central Bank Deposit received and hold for others Call loan received Financial liabilities measured at fair value with variations accounted into 48 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 current income account Derivative financial liabilities Bill payable 606,158,083.17 706,883,375.54 Account payable 1,505,466,836.91 1,313,948,990.25 Advance payment 533,399,418.80 573,784,072.58 Selling of repurchased financial assets Fees and commissions receivable Employees’ wage payable 18,517,014.15 18,797,546.69 Tax payable 316,908,006.38 313,483,669.78 Interest payable 5,544,518.54 6,428,493.55 Dividend payable 101,894,700.66 Other account payable 265,482,611.11 222,414,975.01 Reinsurance fee payable Insurance contract provision Entrusted trading of securities Entrusted selling of securities Liabilities held for sales Non-current liability due in 1 year 814,408,879.06 175,958,998.04 Other current liability 30,382,980.72 Total of current liability 6,917,966,663.89 5,328,141,459.75 Non-current liabilities: Long-term loan 444,341,594.32 786,858,878.82 Bond payable 100,000,000.00 Including:preferred stock Sustainable debt Long-term payable Long=term payable employees’s remuneration Special payable Expected liabilities 4,878,343.68 13,225,861.70 Differed income Differed income tax liability 26,513,069.28 27,469,888.77 Other non-current liabilities Total non-current liabilities 575,733,007.28 827,554,629.29 Total of liability 7,493,699,671.17 6,155,696,089.04 49 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 Owners’ equity Share capital 1,698,245,011.00 1,698,245,011.00 Other equity instruments Including:preferred stock Sustainable debt Capital reserves -1,303,571,952.69 -1,299,349,701.74 Less:Shares in stock Other comprehensive income Special reserves 81,827,887.68 65,687,868.14 Surplus reserves 84,394,441.23 84,394,441.23 Common risk provision Undistributed profit 1,395,682,248.23 1,228,970,498.86 Total of owner’s equity belong to the 1,956,577,635.45 1,777,948,117.49 parent company Minority shareholders’ equity 66,443,127.93 52,534,755.10 Total of owners’ equity 2,023,020,763.38 1,830,482,872.59 Total of liabilities and owners’ equity 9,516,720,434.55 7,986,178,961.63 Legal Representative: Chen Lue Person in charge of accounting:Tang Xianyong Accounting Dept Leader:Tang Xianyong 2. Balance sheet of Parent Company In RMB Items Year-end balance Year-beginning balance Current asset: Monetary fund 421,061,159.27 168,691,344.34 Financial assets measured at fair value with variations accounted into current income account Derivative financial assets Bill receivable Account receivable 6,346.00 Prepayments 2,264,166.67 1,000,000.00 50 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 Interest receivable Dividend receivable Other account receivable 2,418,962,011.73 1,672,200,041.98 Inventories Assets held for sales Non-current asset due in 1 year Other current asset 1,576,001.07 1,404,744.25 Total of current assets 2,843,863,338.74 1,843,302,476.57 Non-current assets: Disposable financial asset Expired investment in possess Long-term receivable Long term share equity investment 3,181,451,536.66 3,176,451,536.66 Property investment Fixed assets 65,573.03 4,121.50 Construction in progress Engineering material Fixed asset disposal Production physical assets Gas & petrol Intangible assets R & D petrol Goodwill Long-germ expenses to be amortized Deferred income tax asset 252,427.22 336,569.60 Other non-current asset 184,035,100.00 48,960,000.00 Total of non-current assets 3,365,804,636.91 3,225,752,227.76 Total of assets 6,209,667,975.65 5,069,054,704.33 Current liabilities Short-term loans 1,671,230,000.00 980,000,000.00 Financial liabilities measured at fair value with variations accounted into current income account Derivative financial liabilities Bill payable 111,236,631.80 68,000,000.00 51 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 Account payable Advance payment Employees’ wage payable 571,016.83 701,792.11 Tax payable 97,131,554.92 97,085,106.00 Interest payable 4,146,356.25 5,150,639.24 Dividend payable 101,894,700.66 Other account payable 68,510,268.86 13,252,762.06 Liabilities held for sales Non-current liability due in 1 year 600,000,000.00 Other current liability Total of current liability 2,654,720,529.32 1,164,190,299.41 Non-current liabilities: Long-term loan 400,000,000.00 700,000,000.00 Bond payable 100,000,000.00 Including:preferred stock Sustainable debt Long-term payable Employees’ wage payable Special payable Expected liabilities Deferred income Deferred income tax liability Other non-current liabilities Total of Non-current liabilities 500,000,000.00 700,000,000.00 Total of liability 3,154,720,529.32 1,864,190,299.41 Owners’ equity Share capital 1,698,245,011.00 1,698,245,011.00 Other equity instrument Including:preferred stock Sustainable debt Capital reserves 1,237,956,472.37 1,237,956,472.37 Less:Shares in stock Other comprehensive income Special reserves 52 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 Surplus reserves 26,309,287.00 26,309,287.00 Undistributed profit 92,436,675.96 242,353,634.55 Total of owners’ equity 3,054,947,446.33 3,204,864,404.92 Total of liabilities and owners’ equity 6,209,667,975.65 5,069,054,704.33 3.Consolidated Income Statement In RMB Items Report period Same period of the previous year I. Income from the key business 3,025,082,356.80 1,953,574,755.51 Incl:Business income 3,025,082,356.80 1,953,574,755.51 Interest income Insurance fee earned Fee and commission received II. Total business cost 2,693,735,290.45 1,740,558,572.84 Incl:Business cost 2,319,598,615.76 1,460,727,131.33 Interest expense Fee and commission paid Insurance discharge payment Net claim amount paid Insurance policy dividend paid Insurance policy dividend paid Reinsurance expenses Business tax and surcharge 1,942,587.29 9,026,652.11 Sales expense 18,094,586.39 9,259,264.24 Administrative expense 125,176,758.15 112,993,754.29 Financial expenses 139,811,809.59 70,024,674.60 Asset impairment loss 89,110,933.27 78,527,096.27 Add:Gains from change of fir value (“-”for loss) Investment gain(“-”for loss) 46,868.49 Incl: investment gains from affiliates Gains from currency exchange(“-”for loss) Other income 53 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 III. Operational profit(“-”for loss) 331,347,066.35 213,063,051.16 Add :Non-operational income 4,444,624.78 29,133,269.00 Including:Income from disposal of non-current assets Less:Non business expenses 93,122.33 2,755,912.00 Incl:Loss from disposal of non-current assets IV.Total profit(“-”for loss) 335,698,568.80 239,440,408.16 Less:Income tax expenses 56,227,138.25 37,862,759.83 V. Net profit 279,471,430.55 201,577,648.33 Net profit attributable to the owners of 268,606,450.03 202,299,416.64 parent company Minority shareholders’ equity 10,864,980.52 -721,768.31 VI. Other comprehensive income -132.50 Net of profit of other comprehensive inco me attributable to owners of the parent co -132.50 mpany. (I)Other comprehensive income items that will not be reclassified into gains/losses in the subsequent accounting period 1.Re-measurement of defined benefit pla ns of changes in net debt or net assets 2.Other comprehensive income under the equity method investee can not be reclass ified into profit or loss. (II) Other comprehensive income that will b -132.50 e reclassified into profit or loss. 1.Other comprehensive income under the equity method investee can be reclassifie d into profit or loss. 2.Gains and losses from changes in fair v alue available for sale financial assets 3.Held-to-maturity investments reclassifi ed to gains and losses of available for sal e financial assets 4.The effective portion of cash flow hedg es and losses 5.Translation differences in currency fina -132.50 54 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 ncial statements 6.Other 7.Net of profit of other comprehensive i ncome attributable to Minority shareholders’ equity VII. Total comprehensive income 279,471,430.55 201,577,515.83 Total comprehensive income attributable 268,606,450.03 202,299,284.14 to the owner of the parent company Total comprehensive income attributable 10,864,980.52 -721,768.31 minority shareholders VIII. Earnings per share (I)Basic earnings per share 0.16 0.12 (II)Diluted earnings per share 0.16 0.12 The current business combination under common control, the net profits of the combined party before achieved ne t profit of RMB 0 last period the combined party realized RMB 0 Legal Representative: Chen Lue Person in charge of accounting:Tang Xianyong Accounting Dept Leader:Tang Xianyong 4. Income statement of the Parent Company In RMB Items Amount in this period Amount in last period I. Income from the key business 111,018.01 115,940.34 Incl:Business cost 1,482.50 0.00 Business tax and surcharge 244,690.66 Sales expense Administrative expense 10,577,092.07 13,785,695.93 Financial expenses 37,367,434.56 19,950,608.66 Asset impairment loss -57,423.85 -1,530.70 Add:Gains from change of fir value (“-”for loss) Investment gain(“-”for loss) Incl: investment gains from affiliates Other income II. Operational profit(“-”for loss) -48,022,257.93 -33,618,833.55 55 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 Add :Non-operational income 29,071,295.00 Including:Income from disposal of non-current assets Less:Non business expenses 2,755,912.00 Incl:Loss from disposal of non-current assets III.Total profit(“-”for loss) -48,022,257.93 -7,303,450.55 Less:Income tax expenses IV. Net profit(“-”for net loss) -48,022,257.93 -7,303,450.55 V.Net of profit of other comprehensive i ncome (I)Other comprehensive income items that will not be reclassified into gains/losses in the subsequent accounting period 1.Re-measurement of defined benefit pl ans of changes in net debt or net assets 2.Other comprehensive income under th e equity method investee can not be recl assified into profit or loss. (II) Other comprehensive income that will b e reclassified into profit or loss. 1.Other comprehensive income under th e equity method investee can be reclassi fied into profit or loss. 2.Gains and losses from changes in fair value available for sale financial assets 3.Held-to-maturity investments reclassif ied to gains and losses of available for s ale financial assets 4.The effective portion of cash flow hed ges and losses 5.Translation differences in currency fin ancial statements 6.Other VI. Total comprehensive income -48,022,257.93 -7,303,450.55 VII. Earnings per share: 56 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 (I)Basic earnings per share (II)Diluted earnings per share 5. Consolidated Cash flow statement In RMB Items Amount in this period Amount in last period I.Cash flows from operating activities Cash received from sales of goods or 1,722,890,541.67 805,577,789.73 rending of services Net increase of customer deposits and capital kept for brother company Net increase of loans from central bank Net increase of inter-bank loans from other financial bodies Cash received against original insurance contract Net cash received from reinsurance business Net increase of client deposit and investment Net increase of amount from disposal financial assets that measured by fair value and with variation reckoned into current gains/losses Net increase of inter-bank fund received Net increase of trade financial asset disposal Net increase of repurchasing business Tax returned 10,169,861.98 3,004.17 Other cash received from business 2,967,473,297.47 339,397,760.63 operation Sub-total of cash inflow 4,700,533,701.12 1,144,978,554.53 Cash paid for purchasing of 1,452,656,023.95 1,158,556,976.75 merchandise and services Net increase of client trade and advance Net increase of savings n central bank 57 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 and brother company Cash paid for original contract claim Cash paid for interest, processing fee and commission Cash paid for policy dividend Cash paid to staffs or paid for staffs 181,877,746.19 101,231,096.05 Taxes paid 157,274,185.63 86,805,215.28 Other cash paid for business activities 3,444,723,325.54 1,055,001,225.65 Sub-total of cash outflow from business 5,236,531,281.31 2,401,594,513.73 activities Cash flow generated by business -535,997,580.19 -1,256,615,959.20 operation, net II.Cash flow generated by investing Cash received from investment 12,800,000.00 retrieving Cash received as investment gains 146,912.79 Net cash retrieved from disposal of fixed assets, intangible assets, and other long-term assets Net cash received from disposal of subsidiaries or other operational units Other investment-related cash received Sub-total of cash inflow due to 12,946,912.79 investment activities Cash paid for construction of fixed assets, intangible assets 18,675,205.60 16,234,590.65 and other long-term assets Cash paid as investment 246,074,074.84 Net increase of loan against pledge Net cash received from subsidiaries and 470,000.00 97,000,000.00 other operational units Other cash paid for investment activities Sub-total of cash outflow due to 265,219,280.44 113,234,590.65 investment activities Net cash flow generated by investment -265,219,280.44 -100,287,677.86 III.Cash flow generated by financing 58 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 Cash received as investment 0.00 Incl: Cash received as investment from minor shareholders Cash received as loans 2,753,197,500.00 2,195,182,638.00 Cash received from bond placing Other financing –related ash received 103,516,162.13 Sub-total of cash inflow from financing 2,753,197,500.00 2,298,698,800.13 activities Cash to repay debts 1,349,438,184.19 317,642,499.29 Cash paid as dividend, profit, or 95,084,766.20 36,392,124.49 interests Incl: Dividend and profit paid by subsidiaries to minor shareholders Other cash paid for financing activities 60,833.33 561,003,771.39 Sub-total of cash outflow due to 1,444,583,783.72 915,038,395.17 financing activities Net cash flow generated by financing 1,308,613,716.28 1,383,660,404.96 IV. Influence of exchange rate -4,628,437.71 1,620,952.17 alternation on cash and cash equivalents V.Net increase of cash and cash 502,768,417.94 28,377,720.07 equivalents Add: balance of cash and cash 943,705,322.41 582,743,756.81 equivalents at the beginning of term VI ..Balance of cash and cash 1,446,473,740.35 611,121,476.88 equivalents at the end of term 6. Cash flow statement of the Parent Company In RMB Items Amount in this period Amount in last period I.Cash flows from operating activities Cash received from sales of goods or 128,210.00 139,273.00 rending of services Tax returned Other cash received from business 2,072,983,202.47 578,645,723.03 operation Sub-total of cash inflow 2,073,111,412.47 578,784,996.03 Cash paid for purchasing of 59 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 merchandise and services Cash paid to staffs or paid for staffs 219,753.50 132,268.03 Taxes paid 147,356.70 1,313,588.98 Other cash paid for business activities 2,697,856,678.81 1,893,003,110.13 Sub-total of cash outflow from business 2,698,223,789.01 1,894,448,967.14 activities Cash flow generated by business -625,112,376.54 -1,315,663,971.11 operation, net II.Cash flow generated by investing Cash received from investment retrieving Cash received as investment gains Net cash retrieved from disposal of fixed assets, intangible assets, and other long-term assets Net cash received from disposal of subsidiaries or other operational units Other investment-related cash received Sub-total of cash inflow due to investment activities Cash paid for construction of fixed assets, intangible assets 65,440.00 and other long-term assets Cash paid as investment 135,075,100.00 Net cash received from subsidiaries and 5,000,000.00 97,000,000.00 other operational units Other cash paid for investment activities Sub-total of cash outflow due to 140,140,540.00 97,000,000.00 investment activities Net cash flow generated by investment -140,140,540.00 -97,000,000.00 III.Cash flow generated by financing Cash received as investment Cash received as loans 1,908,030,000.00 1,455,000,000.00 Cash received from bond placing Other financing –related ash received Sub-total of cash inflow from financing 1,908,030,000.00 1,455,000,000.00 60 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 activities Cash to repay debts 820,000,000.00 Cash paid as dividend, profit, or 70,346,435.20 17,063,887.14 interests Other cash paid for financing activities 60,833.33 Sub-total of cash outflow due to 890,407,268.53 17,063,887.14 financing activities Net cash flow generated by financing 1,017,622,731.47 1,437,936,112.86 IV. Influence of exchange rate 0.00 alternation on cash and cash equivalents V.Net increase of cash and cash 252,369,814.93 25,272,141.75 equivalents Add: balance of cash and cash 168,691,344.34 239,145,251.31 equivalents at the beginning of term VI ..Balance of cash and cash 421,061,159.27 264,417,393.06 equivalents at the end of term 61 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 7. Consolidated Statement on Change in Owners’ Equity Amount in this period In RMb Amount in this period Owner’s equity Attributable to the Parent Company Other Equity Less Other instrusment : Compr Comm Minor Items Total of owners’ Shar ehensi Specialized on risk shareholders’ prefe equity Share Capital Sust Capital reserves Surplus reserves Attributable profit rred es in ve reserve provisi equity Othe aina stoc r stoc Incom on ble k k e debt I.Balance at the end of 1,698,245,011.00 -1,299,349,701.74 65,687,868.14 84,394,441.23 1,228,970,498.86 52,534,755.10 1,830,482,872.59 last year Add: Change of accounting policy Correcting of previous errors Merger of entities under common control Other II.Balance at the beginning of current 1,698,245,011.00 -1,299,349,701.74 65,687,868.14 84,394,441.23 1,228,970,498.86 52,534,755.10 1,830,482,872.59 year III.Changed in the -4,222,250.95 16,140,019.54 166,711,749.37 13,908,372.83 192,537,890.79 current year 62 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 (1)Total comprehensive 268,606,450.03 10,864,980.52 279,471,430.55 income (II)Investment or decreasing of capital -4,222,250.95 3,043,392.31 -1,178,858.64 by owners 1.Ordinary Shares in vested by hareholders 2 . Holders of other e quity instruments inve sted capital 3.Amount of shares paid and accounted as owners’ equity 4.Other -4,222,250.95 3,043,392.31 -1,178,858.64 (III)Profit allotment -101,894,700.66 -101,894,700.66 1.Providing of surplus reserves 2.Providing of common risk provisions 3.Allotment to the owners (or -101,894,700.66 -101,894,700.66 shareholders) 4.Other (IV) Internal transferring of 63 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 owners’ equity 1. Capitalizing of capital reserves (or to capital shares) 2. Capitalizing of surplus reserves (or to capital shares) 3.Making up losses by surplus reserves. 4. Other (V). Special reserves 16,140,019.54 16,140,019.54 1. Provided this year 35,597,306.04 35,597,306.04 2.Used this term 19,457,286.50 19,457,286.50 (VI)Other IV. Balance at the end 1,698,245,011.00 -1,303,571,952.69 81,827,887.68 84,394,441.23 1,395,682,248.23 66,443,127.93 2,023,020,763.38 of this term Amount in last year In RMB Amount in last year Owner’s equity Attributable to the Parent Company Other Equity Other instrusment Less: Commo Minor Items Total of owners’ Compr Shares Specialized Surplus n risk shareholders’ Share Capital preferr Capital reserves ehensi Attributable profit equity in reserve reserves provisio equity ed Sust Other ve stock n stock aina Incom 64 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 ble e debt I.Balance at the end of 446,906,582.00 -50,367,862.22 46,014,941.54 84,394,441.23 755,308,636.19 -1,713,075.19 1,280,543,663.55 last year Add: Change of accounting policy Correcting of previous errors Merger of entities under common control Other II.Balance at the beginning of current 446,906,582.00 -50,367,862.22 46,014,941.54 84,394,441.23 755,308,636.19 -1,713,075.19 1,280,543,663.55 year III.Changed in the 1,251,338,429.00 -1,248,981,839.52 19,672,926.60 473,661,862.67 54,247,830.29 549,939,209.04 current year (1)Total 473,661,862.67 -1,327,357.60 472,334,505.07 comprehensive income (II)Investment or decreasing of capital 1,251,338,429.00 2,356,589.48 55,575,187.89 1,309,270,206.37 by owners 1. Ordinary Shares in 1,251,338,429.00 1,251,338,429.00 vested by hareholders 2.Holders of other eq uity instruments invest ed capital 3.Amount of shares 65 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 paid and accounted as owners’ equity 4.Other 2,356,589.48 55,575,187.89 57,931,777.37 (III)Profit allotment 1.Providing of surplus reserves 2.Providing of common risk provisions 3.Allotment to the owners (or shareholders) 4.Other (IV) Internal transferring of owners’ -1,251,338,429.00 -1,251,338,429.00 equity 1. Capitalizing of capital reserves (or to -1,251,338,429.00 -1,251,338,429.00 capital shares) 2. Capitalizing of surplus reserves (or to capital shares) 3.Making up losses by surplus reserves. 4. Other (V). Special reserves 19,672,926.60 19,672,926.60 66 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 1. Provided this year 56,095,547.05 56,095,547.05 2.Used this term 36,422,620.45 36,422,620.45 (VI)Other IV. Balance at the end 1,698,245,011.00 -1,299,349,701.74 65,687,868.14 84,394,441.23 1,228,970,498.86 52,534,755.10 1,830,482,872.59 of this term 67 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 8. Statement of change in owner’s Equity of the Parent Company Amount in this period In RMB Amount in this period Other Equity instrusment Other Speciali Items Less: Shares Surplus Total of owners’ Attributable Share Capital preferred Capital reserves Comprehensive zed Sustainabl Other in stock reserves profit equity stock Income reserve e debt I.Balance at the 1,698,245,011.00 1,237,956,472.37 26,309,287.00 242,353,634.55 3,204,864,404.92 end of last year Add: Change of accounting policy Correcting of previous errors Other II.Balance at the beginning of 1,698,245,011.00 1,237,956,472.37 26,309,287.00 242,353,634.55 3,204,864,404.92 current year III.Changed in the -149,916,958.59 -149,916,958.59 current year (1)Total comprehensive -48,022,257.93 -48,022,257.93 income 68 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 (II)Investment or decreasing of capital by owners 1.Ordinary Share s invested by hareh olders 2 . Holders of oth er equity instrume nts invested capital 3.Allotment to the owners (or shareholders) 4.Other (III)Profit -101,894,700.66 -101,894,700.66 allotment 1.Providing of surplus reserves 2.Allotment to the owners (or -101,894,700.66 -101,894,700.66 shareholders) 3.Other (IV)Internal transferring of owners’ equity 1. Capitalizing of capital reserves (or to capital shares) 69 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 2. Capitalizing of surplus reserves (or to capital shares) 3.Making up losses by surplus reserves. 4. Other (V) Special reserves 1. Provided this year 2.Used this term (VI)Other IV. Balance at the 1,698,245,011.00 1,237,956,472.37 26,309,287.00 92,436,675.96 3,054,947,446.33 end of this term Amount in last year In RMB Amount in last year Other Equity instrusment Other Items Less: Shares Comprehe Specialized Surplus Total of owners’ Attributable Share Capital preferred Capital reserves Sustainabl Other in stock nsive reserve reserves profit equity stock e debt Income I.Balance at the 446,906,582.00 2,489,294,901.37 26,309,287.00 257,161,771.72 3,219,672,542.09 end of last year Add: Change of 70 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 accounting policy Correcting of previous errors Other II.Balance at the beginning of 446,906,582.00 2,489,294,901.37 26,309,287.00 257,161,771.72 3,219,672,542.09 current year III.Changed in the 1,251,338,429.00 -1,251,338,429.00 -7,303,450.55 -7,303,450.55 current year (1)Total comprehensive -7,303,450.55 -7,303,450.55 income (II)Investment or decreasing of capital by owners 1.Ordinary Share s invested by hareh olders 2 . Holders of oth er equity instrume nts invested capital 3.Allotment to the owners (or shareholders) 4.Other (III)Profit 71 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 allotment 1.Providing of surplus reserves 2.Allotment to the owners (or shareholders) 3.Other (IV)Internal transferring of 1,251,338,429.00 -1,251,338,429.00 owners’ equity 1. Capitalizing of capital reserves (or 1,251,338,429.00 -1,251,338,429.00 to capital shares) 2. Capitalizing of surplus reserves (or to capital shares) 3.Making up losses by surplus reserves. 4. Other (V) Special reserves 1. Provided this year 2.Used this term (VI)Other 72 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 IV. Balance at the 1,698,245,011.00 1,237,956,472.37 26,309,287.00 249,858,321.17 3,212,369,091.54 end of this term 73 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 III.Basic Information of the Company Sino Great Wall Co., Ltd. (hereinafter referred to as the "Company" or "Sino Great Wall") is formerly known as Shenzhen Victor Onward Textile Industrial Company Limited which is formerly known as Xinnan Printing and Dyeing Factory Co., Ltd.. Established in 1980, Xinnan Printing and Dyeing Factory Co., Ltd. is the first wholly foreign-owned enterprise in Shenzhen. In April 1984, Xinnan Printing and Dyeing Factory Co., Ltd. was changed into a foreign joint venture and was renamed Shenzhen Victor Onward Printing and Dyeing Co., Ltd.. On November 19, 1991, approved by the Government of Shenzhen City, Shenzhen Victor Onward Printing and Dyeing Co., Ltd. was restructured into a joint stock limited company and was renamed Shenzhen Victor Onward Textile Industrial Company Limited. Domestic listed RMB ordinary shares ("A" shares; stock code: 000018) and overseas-listed foreign investment shares ("B" shares; stock code: 200018) issued by the Company were listed for trading on the Shenzhen Stock Exchange in 1992. On July 23, 2015, approved by the China Securities Regulatory Commission under the Official Reply to Approving Shenzhen Victor Onward Textile Industrial Company Limited to Make Major Assets Restructuring and Issue Shares to Chen Lue and Other Shareholders to Purchase Assets and Raise Supporting Funds (Z.J.X.K. [2015] No.1774), the Company issued 251,849,593 shares to Chen Lue and other 167shareholders to purchase 100% of equities of Sino Great Wall International Engineering Co., Ltd. held by them and issued to them 25,914,633 non-public offering shares, which raised funds of RMB 254,999,988.72. As at September 24, 2015, equities of the listed company were changed to be registered in the name of the Company. Both parties fully completed the transfer of equities and the relevant formalities of industrial and commercial registration of changes, so the Company already owned 100% of equities in the listed company. Meanwhile, according to the Confirmation on Delivery of Exchange-Out Assets, as at the date of delivery (namely July 31, 2015), all assets and liabilities of the Company had been exchanged out. On September 24, 2015, Shenzhen Branch of the China Securities Depository and Clearing Corporation Li mited had completed the relevant securities registration formalities for the above new shares. On July 29, 2015, the listed company received the new registered capital of RMB 251,849,593 paid by all the shareholders of Sino Great Wall. Ruihua Certified Public Accountants issued the Verification Report (R.H.Y.Z. [2015] No.48250011) on July 30, 2015. Registered capital after the change was RMB 420,991,949 and share capital RMB 420,991,949. On December 4, 2015, Shenzhen Victor Onward Textile Industrial Company Limited. was renamed Sino Great Wall Co., Ltd.. At the Company's general meeting of shareholders held on May 6, 2016, the 2015 Plan of Conversion of Capital Reserves into Share Capital was adopted. The detailed plan was: to increase capital reserves to all the shareholders with 28 shares for 10 shares based on 446,906,582 shares in total as at December 31, 2015 and to increase 1,251,338,429 shares in total. After the increase, total share capital of the Company was increased to 1,698,245,011 shares. As at December 31, 2016, total share capital of the Company was 1,698,245,011 shares, in which there were 1,434,441,780 circulating A shares and 263,803,231 circulating B shares. Chen Lue who holds 582,944,556 A shares, accounting for 34.33% of the total share capital, is the Company's controlling shareholder and actual controller. Registered address of the Company: No.26 Kuipeng Road, Baishi Gang, Kuichong Street, Dapeng New District, Shenzhen. Legal representative: Chen Lue. The Company falls under textile printing and dyeing industry. The Company mainly engages in dyeing and printing production, processing and sales of all kinds of pure cotton, pure linen, polyester cotton, ramie cotton, high-grade blended fabrics and finished garments. The financial statements have been approved by the Board of Directors on August 10,2017. As at June 30, 2017, subsidiaries within the scope of the consolidated financial statements of the Company are as follows: Name of subsidiaries Sino Great Wall International Engineering Co., Ltd. 74 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 Beijing Sino Great Wall Decoration Design Co., Ltd. Suzhou Lvbang Wood Technology Co., Ltd. Herabenna Interior Design Guangzhou Co., Ltd. Sino Great Wall Group Co., Limited Shanghai Ling Rui International Trade Company Limited Shenzhen Hongtulve Industrial Co., Ltd. Inrich Me Engineering Co., Limited Sino Great Wall New Energy (Beijing) Co., Ltd. SINOGREATWALL(PHILIPPINES)INTERNATIONALCORPORITION SGWHPEngineeringConstructionSDN.BHD SINOGREATWALL(USA)INC Shenzhen Yatian Decoration Design Engineering Co., Ltd. Sino Great Wall International Engineering (MACAU) Co., Limited SINO GREAT WALL INTERNETIONAL ENGINEERING(CNMI)CO.,LLC Sino Great Wall (Beijing) Investment Fund Management Co., Ltd. Sino Great Wall Real estate (Hubei) Co., Ltd. Sino Great Wall Development (Hengqin) Co., Ltd. PT.SINO GREAT WALL INVESTMENT INDONESIA PT.SINO GREAT WALL CONSTRUCTION INDONESIA SINO GREAT WALL INTERNETIONAL ENGINEERING(MM)CO.,LTD Sino Great Wall Southwest Construction Engineering Co., Ltd. Sino Great Wall Jianyee Engineering Co., Ltd. Wuhan Commercial Workers Hospital Co., Ltd. IV.Basis for the preparation of financial statements 1.Basis for the preparation The company is based on continuous operation, according to the actual transactions and events, in accordance wit h "Accounting Standards for Enterprises - Basic Standards" issued by the Ministry of Finance and specific corpora te accounting standards, corporate accounting standards application guide, explained Accounting Standards and ot her regulations (hereinafter referred to as "Enterprise Accounting Standards") are recognized and used to measure, on this basis, combined with China Securities Regulatory Commission, "public offering of securities of the Comp any disclosure Rule No. 15 - financial Reporting general Provisions" (2014 revised) , the financial report was base d on it. 2. Continuous operation. The Company since 12 months after the reporting period does not exist on the company's continued viability of si gnificant concern events or circumstances. V. Significant accounting policies and accounting estimates 75 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 Specific accounting policies and accounting estimates tips: Nil 1. Statement on the Accounting Standard Followed by the Company The financial statements prepared by the Company comply with the requirements of corporate accounting standards. They truly and completely reflect the financial situations, operating results, equity changes and cash flow, and other relevant information of the company. 2.Fiscal Year The Company adopts the Gregorian calendar year commencing on January 1 and ending on December 31 as the fiscal year. 3.Operating cycle The Company has an operating cycle of 12 months. 4. Functional currency RMB is the currency of the Company and domestic subsidiaries in the primary economic environment. The functional currency of the Company and domestic subsidiaries is RMB. Currency of the Company in preparing its financial statements is RMB. 5. Accounting treatment methods of business combinations under common control and not under common control Business combinations under common control: The assets and liabilities acquired by the Company in business combinations are measured at the book value of assets and liabilities of the combinee (including the goodwill arising from the acquisition of the combinee by the ultimate controller) in the consolidated financial statements of the ultimate controller on the combination date. The stock premium in the capital reserves should be adjusted at the difference between the book value of the net assets acquired in combinations and that of consideration paid for the combination (or total par value of shares issued). If the stock premium in the capital reserves is insufficient to cover the differences, the retained earnings should be adjusted. Business combinations not under common control: The Company shall, on the acquisition date, measure the assets surrendered and liabilities incurred or assumed by the Company for a business combination at their fair values. The Company shall recognize the difference of the combination costs in excess of the fair value of the identifiable net assets acquired from the acquiree as goodwill. The Company shall recognize the difference of the combination costs in short of the fair value of the identifiable net assets acquired from the acquiree in the current profit and loss after review. Intermediary service charges such as audit fee, legal service fee, appraisal and consultancy fee paid for business combinations and other directly relevant expenses are included in the current profit and loss when incurred; the transaction costs for the issuance of equity securities for business combinations shall be used to offset equities. 6.Preparation method for consolidated financial statements 1.Scope of consolidation The scope of consolidation of the consolidated financial statements of the Company is recognized based on the control and all subsidiaries (including the divisible part of the investee controlled by the Company) shall be included in the consolidated financial statements. 2. Procedures for consolidation The Company prepares the consolidated financial statements based on its own financial statements and those of its subsidiaries according to other relevant information. When the Company prepares its consolidated financial statements, it shall regard the whole enterprise group as an accounting entity to reflect the overall financial position, operating results and cash flows of the enterprise group according to the requirements for recognition, measurement and presentation of the relevant accounting standards for business enterprises and the unified accounting policies. Accounting policies and accounting periods adopted by all subsidiaries included in the scope of consolidation of the consolidated financial statements shall be consistent with those of the Company. If accounting policies and 76 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 accounting periods adopted by the subsidiaries are inconsistent with those of the Company, in the preparation of the consolidated financial statements, necessary adjustments shall be made according to the accounting policies and accounting periods of the Company. For the subsidiaries acquired through business combination not under common control, adjustments to their financial statements shall be made based on the fair values of net identifiable assets on the acquisition date. For the subsidiaries acquired through business combination under common control, adjustments to their financial statements shall be made based on the fair values of their assets and liabilities (including goodwill from acquisition of the subsidiaries by the ultimate controller) in the financial statements of the ultimate controller. The share of owner's equity, net profits and losses in the current year and comprehensive income in the current year of subsidiaries attributable to minority shareholders should be separately presented under the item "owner's equity" in the consolidated balance sheet, the item "net profit" and the item "total comprehensive income" in the consolidated income statement. The difference of the loss in the current year shared by minority shareholders of the subsidiaries in excess of the share of minority shareholders in the owner's equity at the beginning of the year of the subsidiaries should be used to offset the minority equity. (1)Increase in subsidiaries or business During the reporting period, if the Company increased subsidiaries or business from business combinations under common control, the beginning balance of the consolidated balance sheet shall be adjusted; the incomes, expenses and profits from the beginning of the current year of the combinations of the subsidiaries or business to the end of the reporting period shall be included in the consolidated income statement; cash flows from the beginning of the current year of the combinations of the subsidiaries or business to the end of the reporting period shall be included in the consolidated statement of cash flows. Relevant items in the comparative financial statements of the subsidiaries shall be adjusted accordingly, as if the reporting entity after the business combination exists when the ultimate controller starts its control. Where the Company can control the investee under common control due to additional investments and other reasons, adjustments shall be made as if parties involved in the combination have existed in the current state when the ultimate controller start its control. Equity investments held before the Company controls the combinee, and the relevant profit and loss, other comprehensive income and other changes in net assets that are recognized from the later of the date when the Company obtains the original equity and the date when the combiner and the combinee are under common control to the combination date, shall be used to offset the retained earnings at the beginning of the year or the current profit and loss during the period of the comparative statements. During the reporting period, if the Company increased subsidiaries or business from business combinations not under common control, the beginning balance in the consolidated balance sheet shall not be adjusted; the incomes, expenses and profits of the subsidiaries or business from the acquisition date to the end of the reporting period shall be included in the consolidated income statement; cash flows of the subsidiaries and business from the acquisition date to the end of the reporting period shall be included in the consolidated statement of cash flows. Where the Company can implement control over an investee not under common control due to additional investment or other reasons, the equity held by the combinee before the purchase date is remeasured at the fair value on the purchase date of the equity, and the difference between the fair value and the book value shall be included in the current investment income. In the event that the equity of the acquiree held prior to the acquisition date involves changes to other comprehensive income under the equity method and other changes to owners' equity except for net profit and loss, other comprehensive income and profit distribution, other comprehensive income and other changes in the owner's equity associated therewith are transferred to investment income of the period to which the acquisition date belong, except for other comprehensive income arising from changes in net liabilities or net assets due to the re-measurement of defined benefits plan by the investee. (2)Disposal of subsidiaries or business A .General method of disposal During the reporting period, if the Company disposes subsidiaries or business, the incomes, expenses and profits from the subsidiaries or business from the beginning of the year to the disposal date shall be included in the consolidated income statement; cash flows of the subsidiaries and business from the beginning of the year to the disposal date shall be included in the consolidated statement of cash flows. The difference of total amount of the consideration from disposal of equities plus the fair value of the remaining equities less the shares calculated at the original shareholding ratio in net assets and goodwill of the original subsidiary which are continuously calculated as of the acquisition date or combination date is included in the investment income of the period at the loss of control. Other comprehensive incomes associated with the equity investments of the original subsidiary, or the changes in owners' equity other than net profit or loss, other comprehensive income and profit distribution, are transferred into investment income of the period when control is lost, except for other comprehensive income from the change in net liability or net asset due to the investor's 77 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 re-measurement of designated benefit plan. B .Disposal of subsidiaries by stages Where the Company disposes the equity investments in subsidiary through multiple transactions and by stages until it loses the control, if the effect of the disposal on the terms and conditions of all transactions of equity investments in subsidiary and economic effect meet one or more of the following circumstance, it usually indicates that the multiple transactions should be accounted for as a package deal: i. The transactions are concluded at the same time or under the consideration of mutual effect; ii. The transactions as a whole can reach a complete business result; iii. The occurrence of a transaction depends on that of at least one other transactions; and/or iv. A single transaction is uneconomical but it is economical when considered together with other transactions. Where various transactions of disposal of equity investments in subsidiaries until loss of the control belong to a package deal, accounting treatment shall be made by the Company on the transactions as a transaction to dispose subsidiaries and lose the control; however, the difference between each disposal cost and net asset share in the subsidiaries corresponding to each disposal of investments before loss of the control should be recognized as other comprehensive income in the consolidated financial statements and should be transferred into the current profit or loss at the loss of the control. Where various transactions of disposal of equity investments in subsidiaries until loss of the control do not belong to a package deal, before the loss of the control, accounting treatment shall be made according to the relevant policies for partial disposal of equity investments in the subsidiary without losing control; at the loss of the control, accounting treatment shall be made according to general treatment methods for disposal of subsidiaries. (3)Purchase of minority equity of subsidiaries The difference between long-term equity investments acquired by the Company through purchase of minority interest and the subsidiary’s identifiable net assets attributable to the Company calculated continuously from the acquisition date (or the combination date) in accordance with the increased shareholding ratio shall be charged against stock premium within capital reserves in the consolidated balance sheet; when stock premium within capital reserves is insufficient to offset, the retained earnings shall be adjusted. (4) Partial disposal of long-term equity investments in subsidiaries without losing control The difference between the proceeds from partial disposal of equity investments in the subsidiary and the share of identifiable net assets of the subsidiary attributable to the Company which are calculated continuously from the acquisition date (or the combination date) and which are corresponding to the disposal of long-term equity investments without losing control shall be charged against stock premium within capital reserves in the consolidated balance sheet; when stock premium within capital reserves is insufficient to offset, the retained earnings shall be adjusted. 7. Joint venture arrangements classification and Co-operation accounting treatment 8..Recognition Standard of Cash & Cash Equivalents The company recognizes its cash in vault & the deposits that are ready for payment at any time as cash when preparing the cash flow statement.which are featured with short term (expire within 3 months since purchased), high liquidity, easy to convert to know cash, low in risk of value change, could be recognized as cash equivalents. 9. Foreign currency transactions and translation of foreign currency statements 1.Foreign currency transactions Foreign currency transactions are translated into functional currency at the approximate rate of spot exchange rate on the day when the transactions occur. The balance of foreign currency monetary items as at the balance sheet date are translated at the spot exchange rate on the balance sheet date and the exchange differences arising therefrom shall be included in the current profit and loss, except those exchange differences arising from the special borrowings of foreign currency related to the acquired and constructed assets qualified for capitalization that will be capitalized at the borrowing expenses. 2.Translation of foreign currency statements Assets and liabilities in the balance sheet are translated at the spot exchange rates on balance sheet date; owners' equity items, except for the item of “undistributed profits”, are translated at the spot exchange rates on the dates when the transactions occur. The income and expenses items in income statements are translated at the approximate rate of spot exchange rate prevailing on the date when transactions occur. 78 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 Where the Company disposes of an overseas business, it shall transfer the exchange difference relating to the overseas business to the current profit and loss. 10. Financial instruments Financial instruments include financial assets, financial liabilities and equity instruments. 1.Classification of financial instruments At the initial recognition, financial assets and financial liabilities are classified as: financial assets or financial liabilities measured at fair value through current profit and loss, including financial assets or financial liabilities held for trading (and financial assets or financial liabilities directly designated to be measured at fair value through current profit and loss); held-to-maturity investments; receivables; available-for-sale financial assets; and other financial liabilities, etc. 2.Recognition basis and measurement method of financial instruments (1)Financial assets (financial liabilities) measured at fair value through current profit and loss Financial assets (financial liabilities) measured at fair value through current profit and loss are initially recognized at the fair value upon acquisition (net of cash dividends declared but not yet paid or bond interest due but not yet received) and the related transaction costs are included in current profit and loss. The interest or cash dividends to be received during the holding period is or are recognized as investment income. Change in fair values is included in the current profit and loss at the end of the period. Difference between the fair value and initial book-entry value is recognized as investment income upon disposal; meanwhile, adjustment is made to gains or losses from changes in fair values. (2) Held-to-maturity investments Held-to-maturity investments are initially recognized at the sum of the fair value (net of bond interest due but not yet received) and related transaction costs upon acquisition. The interest income will be calculated and determined according to the amortized cost and effective interest rate during the holding period and included in investment income. The effective interest rates are determined upon acquisition and remain unchanged during the expected remaining period, or a shorter period if applicable. Upon disposal, the difference between the purchase price obtained and the book value of the investment is recognized in investment income. (3) Receivables For creditor’s rights receivable arising from external sales of goods or rendering of service by the Company and other creditor's rights of other enterprises (excluding liability instruments quoted in an active market) held by the Company, including accounts receivable and other receivables, the initial recognition amount shall be the contract price or agreement price receivable from purchasing party. Receivables with financing nature are initially recognized at their present values. Upon recovery or disposal, the difference between the purchase price obtained and the book value of the receivables is recognized in current profit and loss. (4) Available-for-sale financial assets Financial assets (financial liabilities) measured at fair value through current profit and loss are initially recognized at the fair value and related transaction expenses upon acquisition (net of cash dividends declared but not yet paid or bond interest due but not yet received). The interest or cash dividends to be received during the holding period is or are recognized as investment income. The interest or cash dividends should be measured at fair value and their changes in fair value should be included in other comprehensive income. However, for an equity instrument investment that has no quoted price in an active market and whose fair value cannot be reliably measured, and for derivative financial asset linked to the said equity instrument investment and settled by delivery of the same equity instrument, they shall be measured at cost. Difference between the proceeds and the book value of the financial assets is recognized as investment income upon disposal; meanwhile, amount of disposal corresponding to the accumulated change in fair value which is originally and directly included in other comprehensive income shall be transferred out and recognized as the current profit and loss. (5) Other financial liabilities They are initially recognized at the sum of the fair value and the associated transaction costs. Other financial liabilities are subsequently measured at amortized cost. 3.Recognition and measurement of transfer of financial assets When a financial assets transfer occurs, the financial assets will be derecognized when substantially all the risks and rewards on the ownership of the financial assets have been transferred to the transferee; and they will not be 79 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 derecognized if substantially all the risks and rewards on the ownership of the financial assets have been retained. The principle of substance over form is adopted to determine whether a financial asset meets the above de-recognition conditions for the financial asset. The transfer of a financial asset of the Company is classified into the entire transfer and the partial transfer of financial asset. Where the entire transfer of the financial asset meets the de-recognition conditions, the difference of the following two amounts will be included in current profit and loss: (1) The book value of the transferred financial asset; (2) The sum of the consideration received from the transfer and the accumulated amount of the changes in fair value originally and directly included in owners’ equity (the situation where the financial asset transferred is an available-for-sale financial asset is involved in). If the partial transfer of financial asset satisfies the criteria for derecognition, the entire book value of the transferred financial asset shall be split into the derecognized and recognized part according to their respective fair value and the difference between the amounts of the following two items shall be included in the current profit and loss: (1) The book value of derecognized part; (2) The sum of the consideration for the derecognized part and the portion of de-recognition corresponding to the accumulated amount of the changes in fair value originally and directly included in owners' equity (the situation where the financial asset transferred is an available-for-sale financial asset is involved in). If the transfer of a financial asset does not meet the derecognition criteria, the financial asset shall continue to be recognized, and the consideration received will be recognized as a financial liability. 4 .Derecognition criteria of financial liabilities Where the present obligations of financial liabilities have been discharged in whole or in part, the financial liability is derecognized or any part thereof will be derecognized; if the Company signs an agreement with creditors to replace the existing financial liabilities by undertaking new financial liabilities, and the new financial liabilities are substantially different from the existing ones in terms of contract terms, the existing financial liabilities will be derecognized, and at the same time, the new financial liability will be recognized. Where substantial revisions are made to some or all of the contractual stipulations of the existing financial liability, the Company shall derecognize the existing financial liability wholly or partly, and at the same time recognize the financial liability with revised contractual stipulations as a new financial liability. Upon whole or partial derecognition of financial liabilities, the difference between the book value of the financial liabilities derecognized and the consideration paid (including non-cash assets surrendered or new financial liabilities assumed) shall be included in the current profit and loss. Where the Company repurchases part of a financial liability, the entire book value of the financial liability shall be split into the derecognized part and continuously-recognized part according to their respective fair value on the repurchase date. The difference between the book value allocated to the derecognized part and the considerations paid (including non-cash assets surrendered and the new financial liabilities assumed) shall be included in the current profit and loss. 5 .Recognition method of fair value of financial assets and financial liabilities Where there is an active market for financial instruments, the fair values shall be recognized at quoted prices in the active market. Where there is no active market, the fair values shall be recognized with valuation techniques. At the time of valuation, the Company adopts the techniques that are applicable in the current situation and supported by enough available data and other information, selects the input values consistent with the features of assets or liabilities considered by market participants in relevant asset or liability transactions, and gives priority to using relevant observable inputs. Unobservable inputs are used only under the circumstance when it is impossible or unobservable inputs to obtain relevant observable inputs. 6.Test method and accounting treatment of depreciation of financial assets (excluding receivables) Except for the financial assets measured at fair values through current profit and loss, the book value of financial assets on the balance sheet date should be checked. If there is objective evidence that a financial asset is impaired, provision for impairment shall be made. (1) Provision for impairment of available-for-sale financial assets: If the fair value of available-for-sale financial assets has significantly declined at the end of the period, or it is expected that the trend of decrease in value is non-temporary after considering of various relevant factors, the impairment shall be recognized, and accumulated losses from decreases in fair value originally and directly included in owners' equity shall be all transferred out and recognized as impairment loss. For available-for-sale debt instruments whose impairment losses have been recognized, if their fair values rise in the subsequent accounting period and such rise is objectively related to the matters occurring after the recognition of impairment loss, the previously recognized impairment loss shall be reversed and recorded into the current 80 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 profit and loss. Impairment losses on available-for-sale equity instruments should not be reversed through profit and loss. (2) Provision for impairment of held-to-maturity investments: Measurement of provision for impairment loss on held-to-maturity investments is treated in accordance with the measurement method of impairment loss on accounts receivable. 11. Accounts receivable (1)Receivables that are individually significant but with provision for bad debts made on an individual basis: (2)Provision for bad debts of accounts receivable made on credit risk characteristics portfolio basis: Group Name Method For those subject to provision for bad debts under aging analysis method: √Applicable □Not applicable Age Rate for receivables(%) Rate for other receivables(%) Within 1 year(Included 1 year) 5.00% 5.00% 1-2 years 10.00% 10.00% 2-3 years 30.00% 30.00% 3-4 years 50.00% 50.00% 4-5 years 80.00% 80.00% Accounts on percentage basis in group: □ Applicable √Not applicable Accounts on other basis in group: □ Applicable √Not applicable (3)Receivables that are individually insignificant but with provision for bad debts made on an individual basis: The Company complies with the disclosure requirements of the No.7 Industry Information Disclosure Guideline of Shenzhen Stock Exchange-the Listed Company that Engaged in Civil Engineering and Construction Business. 12.Inventories Is the company subject to any disclosure requirements for special industries? Yes Civil Engineering Construction 1.Classification of inventories Inventories are classified into: raw materials and engineering construction, etc.. 2.Valuation method of inventories dispatched The inventories are measured at weighted average method when dispatched. 3.Recognition basis for net realizable values of inventories of different categories Net realizable values of merchandise inventories held directly for sale, such as finished goods, stock commodities, and available-for-sale materials, are measured at the estimated selling prices less estimated sales expenses and relevant taxes and surcharges in the normal production process. Net realizable values of material inventories 81 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 which need further processing are measured at the estimated selling prices less the estimated costs of completion, estimated sales expenses and relevant taxes and surcharges in the normal production process. Net realizable values of inventories held for the purpose of fulfillment of sales contracts or service contracts are calculated on the basis of the contract prices; if the quantity of inventories held exceeds that stated in the contract, the net realizable values of the excessive part are calculated on the basis of normal selling prices. The provisions for inventory depreciation reserve are made on an individual basis at the end of the period, for inventories with large quantities and relatively low unit prices, the provisions for inventory depreciation reserve are made on a category basis. For inventories related to the product portfolios manufactured and sold in the same area, and of which the final usage or purpose is identical or similar thereto, and which is difficult to be separated from other items for measurement purposes, the provisions for inventory depreciation reserve are made on a portfolio basis. Except that there is clear evidence that the market price is abnormal on the balance sheet date, the net realizable value of inventory items shall be recognized at the market price on the balance sheet date. Net realizable value of inventory items at the end of the year is recognized at the market price on the balance sheet date. 4. Inventory system Perpetual inventory system is adopted. 5.Amortization methods for low-cost consumables and packaging materials (1) One-off amortization method is adopted for low-cost consumables; (2) One-off amortization method is adopted for packaging materials. 13. Classified as the assets held for sale 1. Recognition criteria for the classification of the assets held for sale The company will recognize the combination parts of the enterprise (or non-current assets) which simultaneously meet the following requirements, as the components of the assets held for sale. (1) The components should be immediately sold under the current condition only according to the usual terms of the parts sold. (2) The enterprise has made resolution for the disposal of the components, the approval of shareholders’ meeting or relevant authority agency if the shareholder’s approval is requested by the rules. (3) The enterprise has signed the irrevocable transfer agreement with the transferee. (4) The transfer shall be completed within one year. 14.Long-term equity investment 1.Standards for joint control and significant influence The term ‘common control’ refers to the joint control, according to the relevant provisions, over an arrangement, of which the relevant activities should be agreed and decided by the participants that share the control. Where the Company and other investors exert common joint control over the investee and the Company is entitled to net assets of the investee, the investee is the joint venture of the Company. Significant influence refers to the power to participate in making decisions on the financial and operating policies of an enterprise, but not the power to control, or jointly control, the formulation of such policies with other parties. Where the Company is able to exert significant influence over the investee, the investee is its associate. 2.Recognition of initial investment costs (1) Long-term equity investments acquired from business combination Business combination under the same control: if the Company makes payment in cash, transfers non-cash assets or bears debts and issues equity securities as the consideration for the business combination, the book value of the owner's equity of the acquiree in the consolidated financial statements of the ultimate controller is recognized as the initial cost of the long-term equity investment on the combination date. In case the Company can exercise control over the investee under common control for additional investment or other reasons, the initial investment cost of long-term equity investments is recognized at the share of book value of net asset of the acquiree after the combination in the consolidated financial statements of the ultimate controller on the combination date. The stock premium should be adjusted at the difference between the initial investment cost of long-term equity investments 82 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 on the combination date and the book value of long-term equity investments before the combination plus the book value of consideration paid for additional shares; if there is no sufficient stock premium for write-downs, the retained earnings are adjusted. Business combination not under common control: The Company recognizes the combination cost determined on the combination date as the initial cost of long-term equity investments. Where the Company can control the investee not under common control from additional investments, the initial investment cost should be changed to be accounted for under the cost method and recognized at the sum of the book value of equity investments originally held and newly increased investment cost. (2) Long-term equity investment acquired by other means For a long-term equity investment acquired through making payments in cash, its initial cost is the actually paid purchase cost. For a long-term equity investment acquired from issuance of equity securities, its initial cost is the fair value of the issued equity securities. If the exchange of non-monetary assets has commercial substance and the fair values of assets traded out and traded in can be measured reliably, the initial cost of long-term equity investment traded in with non-monetary assets are determined based on the fair values of the assets traded out and the relevant taxes and surcharges payable unless there is any conclusive evidence that the fair values of the assets traded in are more reliable; if the exchange of non-monetary assets does not meet the above criteria, the book value of the assets traded out and the relevant taxes and surcharges payable are recognized as the initial cost of long-term equity investment traded in. For a long-term equity investment acquired from debt restructuring, its initial cost is determined based on the fair value. 3.Subsequent measurement and recognition of gains and losses (1) Long-term equity investments accounted for under the cost method Long-term equity investments in subsidiaries are accounted for under the cost method. Except for the actual price paid for acquisition of investment or the cash dividends or profits contained in the consideration which have been declared but not yet distributed, the Company recognizes the investment income in the current year at the cash dividends or profits declared by the investee. (2) Long-term equity investments accounted for under the equity method Long-term equity investments in associates and joint ventures are accounted for under the equity method. If the cost of initial investment is in excess of the proportion of the fair value of the net identifiable assets in the investee when the investment is made, the difference will not be adjusted to the initial cost of the long-term equity investments; if the cost of initial investment is in short of the proportion of the fair value of the net identifiable assets in the investee when the investment is made, the difference will be included in the current profit and loss. The Company shall recognize the investment income and other comprehensive income at the shares of net profit and loss and other comprehensive income realized by the investee which the Company shall enjoy or bear and adjust the book value of long-term equity investments at the same time; the Company shall calculate the shares according to profits or cash dividends declared by the investee and correspondingly reduce the book value of long-term equity investments; the book value of long-term equity investments shall be adjusted according to the investee's other changes in owner's equity other than net profit and loss, other comprehensive income and profit distribution, which should be included in owner's equity. The share of the investee's net profit or loss should be recognized after adjustments are made to net profit of the investee based on the fair value of identifiable net assets of the investee upon acquisition of investments and according to accounting policies and accounting period of the Company. When holding the investment, the investee should prepare the consolidated financial statements, it shall account for the investment income based on the net profit, other comprehensive income and the changes in other owner's equity attributable to the investee. The Company shall write off the part of incomes from internal unrealized transactions between the Company and associates and joint ventures which are attributable to the Company according to the corresponding ratio and recognize the profit and loss on investments on such basis. Where the losses from internal transactions between the Company and the investee fall into the scope of assets impairment loss, the full amount of such losses should be recognized. For transactions on investments or sales of assets between the Company and associates and joint ventures, where such assets constitute business, they should be accounted for according to the relevant policies disclosed in this note "Accounting treatment of business combinations under common control and not under common control" and "Preparation of consolidated financial statements". When the Company recognizes its share of loss incurred to the investee, treatment shall be done in following 83 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 sequence: firstly, the book value of the long-term equity investment shall be reduced. Secondly, where the book value thereof is insufficient to cover the share of losses, investment losses are recognized to the extent of book value of other long-term equities which form net investment in the investee in substance and the book value of long term receivables shall be reduced. Finally, after all the above treatments, if the Company is still responsible for any additional liability in accordance with the provisions stipulated in the investment contracts or agreements, provisions are recognized and included into current investment loss according to the obligations estimated to undertake. (3) Disposal of long-term equity investments For disposal of long-term equity investments, the difference between the book value and the actual price shall be included in the current investment income. For long-term equity investments accounted for under the equity method, when the Company disposes such investments, accounting treatment should be made to the part that is originally included in other comprehensive income according to the corresponding proportion by using the same basis for the investee to directly dispose the relevant assets or liabilities. Owner's equity recognized at the changes in the investee's other owner's equity other than net profit or loss, other comprehensive income and profit distribution shall be transferred to the current profit and loss according to the proportion, except for other comprehensive income from changes arising from re-measurement of net liabilities or net assets of defined benefit plan. In case the joint control or significant influence over the investee is lost for disposing part of equity investments or other reasons, the remaining equity will be changed to be accounted for according to the recognition and measurement principles of financial instruments. The difference between the fair value and the book value on the date of the loss of joint control or significant influence should be included in the current profit and loss. For other comprehensive income recognized from accounting of the original equity investments under the equity method, accounting treatment should be made by using the same basis for the investee to directly dispose the relevant assets or liabilities when the equity method is no longer adopted. Owner's equity recognized from the investee's changes in other owner's equity other than net profit or loss, other comprehensive income and profit distribution should all transferred to the current profit and loss when the equity method confirmed is no longer adopted. Where the Company loses the control over the investee due to disposal of partial equity investments or other reasons, when it prepares individual financial statements, if the remaining equity after disposal can exercise joint control or significant influence on the investee, such investments should be changed to be accounted for under the equity method and the remaining equity should be deemed to have be adjusted on acquisition, namely when the equity method is adopted for accounting; if the remaining equity after disposal can exercise joint control or significant influence on the investee, such equity will be changed to be accounted for according to recognition and measurement standards of financial instruments and the difference between fair value and book value on the date of loss of the control or significant influence should be included in the current profit and loss. Where equity after the disposal is acquired from business combinations due to additional investments or other reasons, when the Company prepares individual financial statements, if the remaining equity after the disposal is accounted for under the cost method or equity method, other comprehensive income and other owners' equity recognized from equity investments that are held before the acquisition date and are accounted for under the equity method should be carried forward in proportion; if the remaining equity after the disposal is changed to be accounted for according to recognition and measurement standards of financial instruments, other comprehensive income and other owners' equity should be carried forward at full amount. 15. Investment real estate The measurement mode of investment property Cost measurement Depreciation or amortization method The investment property refers to the real estate held for earning rentals or/and capital appreciation or both, including leased land use right, land use right held for transfer upon appreciation, and leased building (including self-built buildings or buildings developed for renting or buildings under construction or development for future renting). The Company measures its existing investment property at cost. For investment properties measured with the cost model - in terms of buildings for renting, the same depreciation policy as that for fixed assets of the Company is adopted and land use rights for renting are implemented with the same amortization policy as that for intangible assets. 16.Fixed assets 84 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 (1)Confirmation conditions Fixed assets refer to physical assets owned for purpose of production, service providing, leasing or management, and operation with service life of more than one year. Fixed assets are recognized when all of the following conditions are satisfied:(1)Financial benefits attached to the fixed asset is possibly inflowing to the Company;(2) The cost of the fixed asset can be reliable measured. (2)Depreciation method Evpected useful Estinated residual value Annual depreciation rat Type Depreciation method life(Year) rate e(%) House and Building Straight-line method 20 5 4.75 Machinery and Straight-line method 10 5 9.5 equipment Transportation Straight-line method 7 5 13.57 equipment Electronic equipment and 3-5 5 19-31.67 other equipment Straight-line method (3)Cognizance evidence and pricing method of financial leasing fixed assets The fixed assets acquired under financing lease are recognized if one of the following conditions is specified by the Company and the leaser in their lease agreement: (1) Upon the expiration of the lease term, the ownership of the leased asset has been transferred to the Company; (2) The Company has the option to purchase the asset and the purchase price is far lower than the asset’s fair value at the time of the option being exercised; (3) The lease term covers the most of the useful life of the leased asset; (4) The present value of the minimum payment by the Company on the lease commencement date is almost equal to the asset’s fair value. On the lease commencement date, the book entry value of a fixed asset acquired under financing lease is measured at the asset’s fair value or the present value of the minimum lease payment, whichever is the lower. The minimum lease payment is recorded as the book entry value of the long-term payables, and the difference between them is deemed as the unrecognized financing expenses. 17.Construction in process Projects under construction are recorded as fixed assets at necessary expenditures incurred before preparing the asset to reach the condition for its intended use. For construction in progress that has reached working condition for intended use but for which the completion of settlement has not been handled, it shall be transferred into fixed assets at the estimated value according to the project budget, construction price or actual cost, etc. from the date when it reaches the working condition for intended use and the fixed assets shall be depreciated in accordance with the Company’s policy for fixed asset depreciation; adjustment shall be made to the estimated value based on the actual cost after the completion of settlement is handled, but depreciation already provided for will not be adjusted. 18.Borrowing costs 1.Recognition principles of capitalization of borrowing costs Borrowing costs include the interest of borrowings, the amortization of discount or premium, auxiliary expenses, exchange differences incurred by foreign currency borrowings, etc. The borrowing costs incurred to the Company and directly attributable to the acquisition and construction or 85 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 production of assets eligible for capitalization should be capitalized and recorded into asset costs; other borrowing costs should be recognized as costs according to the amount incurred and be included into current profit and loss. Assets eligible for capitalization refer to fixed assets, investment property, inventories and other assets which may reach their intended use or sale status only after long-time acquisition and construction or production activities. Borrowing costs may be capitalized only when all the following conditions are met at the same time: (1) Asset disbursements, which include those incurred by cash payment, the transfer of non-cash assets or the undertaking of interest-bearing debts for acquiring and constructing or producing assets eligible for capitalization, have already been incurred; (2) Borrowing costs have already been incurred; (3) The acquisition and construction or production activities which are necessary to prepare the assets for their intended use or sale have already been started. 2.Capitalization period of borrowing costs Capitalization period refers to the period from commencement of capitalization of borrowing costs to its cessation; period of suspension for capitalization is excluded. Capitalization of borrowing costs should cease when the acquired and constructed or produced assets eligible for capitalization have reached the working condition for their intended use or sale. When some projects among the acquired and constructed or produced assets eligible for capitalization are completed and can be used separately, the capitalization of borrowing costs of such projects should be ceased. If all parts of the acquired and constructed or produced assets are completed but the assets cannot be used or sold externally until overall completion, the capitalization of borrowing costs should be ceased at the time of overall completion of the said assets. 3.Period of capitalization suspension If the acquisition and construction or production activities of assets eligible for capitalization are abnormally interrupted and such condition lasts for more than three months, the capitalization of borrowing costs should be suspended; if the interruption is necessary procedures for the acquired, constructed or produced assets eligible for capitalization to reach the working conditions for its intended use or sale, the borrowing costs continue to be capitalized. Borrowing costs incurred during the interruption are recognized as the current profit and loss and continue to be capitalized until the acquisition, construction or production of the asset restarts. 4.Measurement of capitalization rate and capitalized amounts of borrowing costs As for special borrowings borrowed for acquiring and constructing or producing assets eligible for capitalization, borrowing costs of special borrowing actually incurred in the current period less the interest income of the borrowings unused and deposited in bank or return on temporary investment should be recognized as the capitalization amount of borrowing costs. As for general borrowings used for acquiring and constructing or producing assets eligible for capitalization, the interest of general borrowings to be capitalized should be calculated by multiplying the weighted average of asset disbursements of the part of accumulated asset disbursements exceeding special borrowings by the capitalization rate of used general borrowings. The capitalization rate is calculated by weighted average interest rate of general borrowings. 19.Biological Assets 20.Oil & gas assets 21..Intangible assets (1) Valuation method, service life and impairment test 1.Measurement method of intangible assets (1) The Company initially measures intangible assets at cost on acquisition; The cost of an externally acquired intangible asset comprises its purchase price, related taxes and surcharges and any other directly attributable expenditure of preparing the asset for its intended use. If the deferred payment of purchase price of intangible assets exceeding normal credit terms is substantially of financial nature, the cost of intangible assets should be determined at the present value of the purchase price. The intangible assets acquired and used by the debtor to repay debt in debt restructuring should be recorded at the fair value of the intangible assets. The difference between the book value of restructured debts and the fair value 86 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 of intangible assets used to repay debt should be included in the current profit and loss. On the premise that non-monetary assets trade is of commercial nature and the fair value of the assets traded in or out can be measured reliably, the intangible assets traded in with non-monetary assets should be recognized at the fair value of the assets traded out, unless any unambiguous evidence indicates that the fair value of the assets traded in is more reliable; as to the non-monetary assets trade not meeting the aforesaid premise, the book value of the assets traded out and related taxes and surcharges payable should be recognized as the cost of the intangible assets, with gains or losses not recognized. (2) Subsequent measurement The useful lives of intangible assets are analyzed on acquisition. For intangible assets with definite useful lives, the Company shall adopt the straight-line method for amortization within the period during which they can bring economic benefits to the Company; where the period during which they can bring economic benefits to the Company cannot be forecast, those intangible assets shall be deemed as assets with indefinite lives and no amortization will be made. 2.Estimate of useful life of intangible assets with limited useful life: Item Estimated useful lives Basis Land use right 50 years Land use certificate software 5 years By reference to the same industry The useful life and amortization method of intangible assets with limited useful lives should be reviewed. After review, the useful life of intangible assets and amortization method at the end of the year are not different from previous estimates. 3.Specific criteria for classification of research phase and development phase Research phase: the phase for the creative and planned investigation and research to acquire and understand new scientific or technological knowledge. Development stage: the phase for the application of research achievements and other knowledge to a certain plan or design, prior to the commercial production or use, so as to produce any new material, device or product, or substantially improved material, device and product. Expenditure of an internal research and development project on the research phase shall be included in current profit and loss when it occurs. 4.Specific criteria for capitalization of expenditures at the development phase Expenditure on the development phase of an internal research and development project shall be recognized as intangible assets only when the following conditions are simultaneously satisfied: (1) It is feasible technically to finish intangible assets for use or sale; (2) It is intended to finish and use or sell the intangible asset; (3) The ways whereby the intangible asset is to generate economic benefits, including those whereby it is able prove that there is a potential market for the products manufactured by applying this intangible asset or that there is a potential market for the intangible asset itself; if the intangible asset will be used internally, its usefulness shall be proved; (4) It is able to finish the development of the intangible assets, and able to use or sell the intangible assets, with the support of sufficient technologies, financial resources and other resources; and (5) The expenditure attributable to the intangible asset during its development phase can be measured reliably. (2)Internal research and development expenditure accounting policy 22.Impairment of long-term assets For the long-term equity investments, investment property, fixed assets, construction in progress, intangible assets, and other long-term assets measured at cost model, if there are signs of impairment, an impairment test will be conducted on the balance sheet date. If the recoverable amount of the asset is less than its book value after test, assets impairment provision will be made at the difference and included into impairment loss. The recoverable amount is determined at the higher of the net of the fair value less disposal costs and the present value of the expected future cash flows. The assets impairment provision is calculated and made on an individual basis. If it is difficult for the Company to estimate the recoverable amount of the individual asset, the recoverable amount of an 87 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 asset group to which the said asset belongs to will be determined. Asset group is the smallest asset group that can independently generate cash inflows. For goodwill, impairment test shall be conducted at least in the end of each year. The Company conducts an impairment test for the goodwill. The book value of goodwill arising from business combinations is amortized to relevant asset groups with a reasonable method from the date of acquisition; or amortized to relevant combination of asset groups if it is difficult to be amortized to relevant asset groups. When the book value of goodwill is amortized to the relevant assets group or combination of assets groups, it shall be evenly amortized according to the proportion of the fair value of each assets group or combination of assets groups in the total fair value of the relevant assets groups or combinations of assets groups. Where the fair value cannot be reliably measured, it should be amortized according to the proportion of the book value of each asset group or combination of assets groups in the total book value of assets groups or combinations of assets groups. When making an impairment test on the relevant assets groups or combination of assets groups containing goodwill, if any indication shows that the assets groups or combinations of assets groups may be impaired, the Company shall first conduct an impairment test on the assets groups or combinations of assets groups not containing goodwill, calculate the recoverable amount and compare it with the relevant book value to recognize the corresponding impairment loss. Then the Company shall conduct an impairment test on the assets groups or combinations of assets groups containing goodwill, and compare the book value of these assets groups or combinations of assets groups (including the book value of the goodwill apportioned thereto) with the recoverable amount. Where the recoverable amount of the relevant assets groups or combinations of assets groups is lower than the book value thereof, the Company shall recognize the impairment loss of the goodwill. The above losses from asset impairment shall not be reversed in subsequent accounting periods once recognized. 23.Long-term deferred expenses Long-term deferred expenses refer to various expenses which have been already incurred but will be born in this period and in the future with an amortization period of over 1 year. 1.Amortization method Long-term deferred expenses are amortized evenly over the beneficial period. 2.Amortization years The amortization period is determined in accordance with the contract or expected beneficial period. 24.Employee compensation 1.Accounting treatment of short-term compensation During the accounting period of an employee' providing services for the Company, the Company should recognize the short-term compensation actually incurred as liabilities and include it in the current profit and loss or the relevant asset costs. During the accounting period when employees serve the Company, the corresponding amount of employee compensation is calculated and determined according to the provision basis and provision proportion as stipulated in the provisions on the social insurance premiums and housing funds paid for employees by the Company, as well as trade union funds and employee education funds. If the employee benefits are of non-monetary, they are measured at fair value if they can be reliably measured. 2.Accounting treatment of post-employment benefits Defined contribution plans The Company pays basic endowment insurance and unemployment insurance for employees according to the relevant provisions of the local government, calculate payables according to payment base and proportion specified by the local government and recognizes them as liabilities, and includes them into the current profit and loss or the relevant asset costs. 3.Accounting treatment of dismissal benefits The Company recognizes the employee compensation arising from dismissal benefits as liabilities and include it in the current profit and loss when the Company cannot unilaterally withdraw dismissal benefits which are provided for termination of labor relation plan or layoff proposal, or when the Company recognizes costs or expenses (which is earlier) associated with restructuring of payment of dismissal benefits. (4) Accounting methods for other long-term employee benefits 25. Estimated liabilities 1.Recognition criteria for estimated liabilities Where all the following conditions are met simultaneously for any obligation pertinent to any contingency 88 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 including litigation, debt guarantee, onerous contract and reorganization, the Company will recognize such contingency as estimated liabilities: (1) The obligation is a present obligation of the Company; (2) The performance of such obligation is likely to result in outflow of economic benefits from the Company; and (3) The amount of the obligation can be measured reliably. 2.Measurement of estimated liabilities Estimated liabilities of the Company is initially measured as the best estimate of expenses required for the performance of the relevant present obligations. When the Company determines the best estimate, it should have a comprehensive consideration of risks with respect to contingencies, uncertainties and the time value of money. If the time value of money is significant, the best estimate shall be determined after discounting the relevant future outflow of cash. The best estimate shall be accounted as follows in different circumstances: If there is continuous range (or interval) for the necessary expenses, and probabilities of occurrence of all the outcomes within this range are equal, the best estimate shall be determined at the average amount of upper and lower limits within the range. If there is no continuous range (or interval) for the necessary expenses, or probabilities of occurrence of all the outcomes within this range are unequal although such a range exists, in case that the contingency involves a single item, the best estimate shall be determined at the most likely outcome; if the contingency involves two or more items, the best estimate should be determined according to all the possible outcomes with their relevant probabilities. When all or some of the expenses necessary for the liquidation of estimated liabilities of the Company are expected to be compensated by a third party, the compensation should be separately recognized as an asset only when it is virtually certain that the reimbursement will be obtained. The amount recognized for the reimbursement should not exceed the book value of estimated liabilities. 26.Share-based payments The Company's share-based payments are transactions in which the Company grants equity instruments or undertakes equity-instrument-based liabilities in return for services from employees [or other parties]. The share-based payments of the Company consist of equity-settled share-based payments and cash-settled share-based payments. Where equity-settled share-based payments are exchanged for providing services by employees, their fair values are measured at those of employees’ equity instruments. Where the Company makes share-based payments in restricted stocks and the employee makes capital contributions to subscribe such shares, such shares should not be circulated or transferred before they reach unlocked conditions and before they are unlocked; if the unlocked conditions specified in the final equity incentive plan fail to be reached, then the Company should repurchase the shares at the price agreed in advance. When the Company received the payment of the employee for the subscription of restricted stocks, it should recognize share capital and capital reserves (share premiums) in accordance with the payment for subscription received. The Company should fully recognize a liability at the repurchase obligations and recognize treasury stock at the same time. On each balance sheet date within the vesting period, the Company will, based on the newly-acquired subsequent information such as the changes in the number of the vested employees and whether the specified performance is reached, make the best estimate on the number of the vesting equity instruments. On such basis, the services received in the current period should be included in the relevant cost or expenses according to fair value on the date of grant and capital reserves should be accordingly increased. No adjustments should be made to the recognized relevant costs or expenses and total owners' equity after the vesting date. However, when the right can be exercised immediately after the grant, it should be included in the relevant costs or expenses at the fair value on the date of grant. The capital reserves should be increased accordingly. For share-based payments finally failing to be exercised, costs or expenses should not be recognized, unless the conditions for vesting are market conditions or non-vesting conditions. At this time, whether market conditions or non-vesting conditions are met or not, it is deemed to have vesting rights if non-market conditions in all the vesting conditions are met. If the terms of the equity-settled share-based payments were modified, the services received should be recognized at least in accordance with the terms of the unmodified terms. Moreover, the modification of fair value of equity instruments granted from any increase, or beneficial changes to the employee on the modification date should be recognized as increases in services obtained. If the equity-settled share-based payments were cancelled, they should be handled as accelerated exercise of rights 89 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 on the date of cancellation and the amount that is not yet recognized should be immediately recognized. Where employees or other parties could choose to meet non-vesting conditions but failed to meet the conditions in the vesting period, they should be handed as cancelling the equity-settled share-based payments. But, if new equity instruments were granted and such new equity instruments granted are recognized to be used to replace the cancelled equity instruments on the date of grant of new equity instruments, then the alternative equity instruments for granted should be handled in the way same as the revision to terms and conditions on handling the original equity instruments. 27. Preferred shares, perpetual capital securities and other financial instruments 28.Revenue Is the company subject to any disclosure requirements for special industries? Yes Civil Engineering Construction The Company complies with the disclosure requirements of the No.7 Industry Information Disclosure Guideline of Shenzhen Stock Exchange-the Listed Company that Engaged in Civil Engineering and Construction Business. 29.Government subsidies (1)Basis and accounting methods for assets related government subsidies 1.Type Government subsidies are monetary assets and non-monetary assets freely obtained by the Company from the government. They are divided into government subsidies related to assets and government subsidies related to income. Government subsidies related to assets refer to government subsidies which are acquired by the Company for construction or form long-term assets in other ways, including the financial allocation for purchasing fixed assets or intangible assets, the financial discount for special loan of fixed assets and others. Government subsidies related to income refer to government subsidies other than government subsidies related to assets. 2.Timing of recognition If a government subsidy is a monetary asset, it shall be measured in the light of the amount received or receivable. If a government subsidy is a non-monetary asset, it shall be measured at its fair value; and if its fair value cannot be obtained in a reliable way, it shall be measured at a nominal amount. Government subsidies measured at the nominal amount are directly included in the current profit or loss. 3.Accounting treatment For asset-related government grants, the Company will recognize them as deferred income, and include them in non-operating income according to the useful lives of the related assets constructed or acquired. (1)Basis and accounting methods for income related government subsidies Government subsidies related to assets are recognized as deferred income, and included in non-operating income by stages based on the useful life of the assets acquired and constructed; if government subsidies related to income are used to compensate the Company’s relevant expenses or losses in future periods, such government subsidies should be recognized as deferred income on acquisition and be included in current non-operating income during the period of recognition of the relevant expenses; if government subsidies related to income are used to compensate the Company’s relevant expenses or losses incurred, such government subsidies are directly included into current non-operating income on acquisition. 30. Deferred income tax assets and deferred income tax liabilities Deferred income tax assets are recognized at deductible temporary differences to the extent that it shall not exceed the taxable income probably obtained in future period to be against the deductible temporary difference. For deductible losses and tax credits that can be carried forward to subsequent periods, deferred tax assets arising therefrom are recognized to the extent that future taxable income will be probable to be available against deductible losses and tax credits. Taxable temporary differences are recognized as deferred income tax liabilities except in special circumstances. 90 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 Such special circumstances include: the initial recognized of goodwill; other transactions or events that are not a business combination and affect neither accounting profit nor taxable profit (tax loss). If the Company has the legal right of netting and intends to settle in net amount or to obtain assets and discharge liabilities simultaneously, the current income tax assets and current income tax liabilities of the Company shall be presented based on the net amount after offset. When the Company has the legal right for netting of current income tax assets and current income tax liabilities and the income tax assets and income tax liabilities are related to the income tax levied on the same taxpayer by the same tax administrative department or are related to different taxpayers but, within each future period of reversal of important income tax assets and income tax liabilities, the taxpayers involved intend to settle current income tax assets and current income tax liabilities or acquire assets and liquidate liabilities at the same time, the Company's income tax assets and income tax liabilities shall be presented at the net amount after the offset. 31.Leases 1.Accounting treatment of operating leases (1) The Company's rental expenses paid for leased assets shall, within the whole lease term excluding the rent-free period, be amortized with the straight-line method and included in current expenses. Initial direct costs related to lease transactions paid by the Company shall be included in the current expenses. When assets lessor bears costs related to the lease borne by the Company, the Company shall deduct the part of expenses from the total rents and amortize the rents after deduction over the lease term and include them in current expenses. (2) The Company's rental expenses collected for leased assets shall, within the whole lease term excluding the rent-free period, be amortized with the straight-line method and recognized as the relevant rental income. Initial direct cost associated with leasing transactions paid by the Company should be included in the current cost; the cost of large amount shall be capitalized and included by stages in the current income according to the same base recognized at the income related to leasing over the whole leasing period. When the Company bears costs related to the lease borne by the leasee, the Company shall deduct part of expenses from the total rents and amortize the rents after deduction over the lease term. 2.Accounting treatment of finance leases (1) Assets acquired under finance leases: at the inception of the leases, the Company shall recognize the book-entry value of leased assets at the lower of their fair values or their present values of the minimum lease payments, and shall recognize the book-entry value of long-term payables at the amounts of the minimum lease payments, and shall recognize the differences between the above two book-entry values as unrecognized financing charges. Under the effective interest method, the Company amortizes the unrecognized financing charges over the lease term and includes them in the financial expenses. The Company records the initial direct expenses in the values of leased assets. (2) Assets leased under finance leases: On the lease beginning date, the Company recognizes the difference of finance leasing receivables plus unguaranteed residual value and their present value as unrealized financing income and recognized the unrealized financing income as rental income in each period when the rents will be received in the future. The initial direct expenses of the Company related to lease are included into the initial measurement of financing lease payment receivable, and the income recognized in lease period is decreased accordingly. 32. Other significant accounting policies and estimates (1)Change of main accounting policies (1) Implementation of the Provisions on the Accounting Treatment for Value-added Tax On December 3, 2016, the Ministry of Finance promulgated the Provisions on the Accounting Treatment for Value-added Tax (Cai Kuai [2016] No.22), which apply to relevant transactions of the Company occurred since May 1, 2016. Main impacts of the provisions implementation of the Company are as follows: Name and amount of the affected items in the Contents of and reasons for changes in accounting policies financial statements (1) Adjust the item "business taxes and surcharges" in the income statement to the item "taxes and surcharges" therein. Taxes and surcharges (2) Reclassify the real estate tax, land-use tax- vehicle and vessel use tax and Increased taxes and surcharges in this year stamp duty incurred by business operation activities of the enterprise since May amount to RMB 433,364.39, and decreased 1, 2016 from "General and administrative expenses" to "Taxes and surcharges" general and administrative expenses in 2016 91 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 and the taxes incurred before May 1, 2016 will not be adjusted. The amount to RMB 433,364.39. comparative data shall not be adjusted. (3) Reclassify the item "taxes and surcharges payable" to transfer the VAT Increased ending balance of other current amount where income (or profit) has been recognized but the VAT has not been liabilities amounted to RMB 30,382,980.72, paid and which shall be recognized as the output tax amount into the item and decreased ending balance of taxes and "other current liabilities" (or "other non-current liabilities"). Compared data surcharges payable amounted to RMB shall not be adjusted. The comparative data shall not be adjusted. 30,382,980.72. (2)Changes in significant accounting estimates The Company had no changes in principal accounting estimates during the reporting period. 33.Change of main accounting policies and estimations (1)Change of main accounting policies □Applicable √Not applicable (2)Change of main accounting estimations □Applicable √Not applicable 34.Other VI.Taxation 1.Main categories and rates of taxes Tax type Tax basis Tax rate(%) The output tax is calculated based on taxable income in accordance with tax laws, and value added tax payable should VAT 0、3、6、11、17 be the balance of the output tax after deducting the deductible input tax for the current year Paid based on the actual business tax, VAT Urban maintenance and construction tax 1、5、7 and consumption tax paid Calculated and paid at turnover tax Enterprise income tax 15、25 actually paid. Calculated and paid at turnover tax Business tax 3、5 actually paid. Calculated and paid at turnover tax Education surtax 3 actually paid. Calculated and paid at turnover tax Local education surtax 2 actually paid. In case there exist any taxpayer paying corporate income tax at different tax rates, disclose the information Name of taxpayer Income tax rates Sino Great Wall Co., Ltd. 25 92 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 Sino Great Wall Medical Investment Management Co., Ltd. 25 Sino Great Wall Infrastructure Investment Co., Ltd. 25 Wuhan Commercial Workers Hospital Co., Ltd. 25 Sino Great Wall International Engineering Co., Ltd. 15 Sino Great Wall Jianyee Engineering Co., Ltd. 25 Sino Great Wall (Beijing) Investment Fund Management Co., 25 Ltd. Sino Great Wall Real estate (Hubei) Co., Ltd. 25 Sino Great Wall New Energy (Beijing) Co., Ltd. 25 Qian'an Sino Solar Power Generation Co., Ltd. 25 Wu'an Juhe Photovoltaic Power Generation Co., Ltd. 25 Bozhou Guangcheng New Energy Co., Ltd. 25 Bozhou Zhaosheng Agricultural Technology Co., Ltd. 25 Bozhou Xieying Solar Power Generation Co., Ltd. 25 Shanghai Ling Rui International Trade Company Limited 25 Shenzhen Hongtulve Industrial Co., Ltd. 25 Sino Great Wall Development (Hengqin) Co., Ltd. 25 SINO GREAT WALL(USA).INC 30 Herabenna Interior Design Guangzhou Co., Ltd. 25 Inrich Me Engineering Co., Limited 17 Sino Great Wall Southwest Construction Engineering Co., Ltd. 25 PT.SINO GREAT WALL INVESTMENT INDONESIA 25 PT.SINO GREAT WALL CONSTRUCTION INDONESIA 25 SINO GREAT WALL INTERNETIONAL 0%-5% ENGINEERING(CNMI)CO.,LLC Shenzhen Yatian Decoration Design Engineering Co., Ltd. 25 Sino Great Wall International Engineering (MACAU) Co., 12 Limited Sino Great Wall Group Co., Limited 17 SGW HP EngineeringConstructionSDN.BHD 24 SINO GREAT WALL (PHILIPPINES) INTERNATIONAL 30 CORPORITION Beijing Sino Great Wall Decoration Design Co., Ltd. 25 Suzhou Lvbang Wood Technology Co., Ltd. 25 Sino Heji Environmental Protection Materials Co., Ltd. 25 SINO GREAT WALL INTERNETIONAL 25 93 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 ENGINEERING(MM)CO.,LTD Sino Great Wall International Engineering(Thailand) Co.,Ltd. 20 2.Tax preferences (1) Approved by the Beijing Municipal Office, SAT under the Circular on Approval of Tax Types in 2013, the taxable income of Sino Great Wall Design was calculated at 10% of total income. (2) According to the provisions of the Circular of the State Administration of Taxation on Issuing the Tentative Measures for the Collection and Administration of Income Tax on Enterprises That Have Operations in Different Regions and That Pay Taxes in a Consolidated Manner (G.S.F. [2008] No. 28) issued on March 10, 2008, for business institutions and establishments without the status of a legal person that are established in different regions within the territory of China, namely those engaging in production and operating activities in different regions, their head offices (parent companies) are enterprises that pay taxes in a consolidated manner. The parent company pays taxes in a consolidated manner. Head office and branches prepay enterprise income tax in installment, 50% of which is shared by all branches and 50% of which is prepaid by the head office. Branches share the prepayments in the proportion of 35%, 35% and 30% of operating income, employee compensation and total assets; final settlement of annual enterprise income tax shall be made by the parent company at the tax authority and will no longer be allocated to branches. (3) The Company's subsidiaries Sino Great Wall Group Co., Limited (hereinafter referred to as "Sino Hong Kong") and Inrich Me Engineering Co., Limited (hereinafter referred to as "Inrich Me Engineering") are enterprises established in the Hong Kong Special Administrative Region and are subject to enterprise profit tax at the rate of 16.5%; Sino Great Wall International Engineering (MACAU) Co., Limited (hereinafter referred to as "Sino Macau") is an enterprise established in the Macao Special Administrative Region and is subject to complementary income tax at the progressive rate. (4) The Company's wholly-owned subsidiary Sino Great Wall International Engineering Co., Ltd. (hereinafter referred to as "Sino International") obtained the high-tech enterprise certificate (No.: GR201511003125) jointly approved and issued by Beijing Municipal Science and Technology Commission, Beijing Municipal Finance Bureau, Beijing Municipal Office, SAT and Beijing Local Taxation Bureau on November 24, 2015. The certificate was issued on November 24, 2015 and valid for 3 years, so Sino International would pay enterprise income tax at the rate of 15% in 2015, 2016 and 2017. (5) The Company's wholly-owned subsidiary Wuhan Commercial Workers Hospital Co., Ltd. was entitled to the exemption of value-added taxes since May 1, 2016 in accordance with the Notice of the Ministry of Finance and the State Administration of Taxation on Implementing the Pilot Program of Replacing Business Tax with Value-Added Tax in an All-round Manner (Cai Shui [2016] No.36). 3.Other VII. Notes to the major items of consolidated financial statement 1.Monetary funds In RMB Items Year-end balance Year-beginning balance Cash on hand 3,388,678.83 2,974,883.16 Bank deposit 1,443,085,061.52 940,730,439.25 Other monetary capital 273,782,343.42 397,110,499.42 Total 1,720,256,083.77 1,340,815,821.83 Including: Total amount deposited abroad 231,737,123.34 197,496,287.50 Other notes 94 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 2. Financial assets measured at fair value through current profit and loss In RMB Items Yea-end balance Year-Beginning balance Other notes 3.Derivative financial assets □ Applicable √ Not applicable 4.Note receivables (1)Classification Note receivable In RMB Items Year-end balance Year-beginning balance Bank acceptance bill 3,900,000.00 21,300,446.44 Commercial acceptance bill 777,167,587.68 1,053,090,196.14 Total 781,067,587.68 1,074,390,642.58 (2) Notes receivable pledged by the Company at the period-end In RMB Items Amount Commercial acceptance bill 98,645,997.87 Total 98,645,997.87 (3)Notes receivable endorsed or discounted by the Company as at June 30,2016 but not expired on the balance sheet date In RMB Amount underecognized as at June 30, Item Amount derecognized as at June 30, 2017 2017 Bank acceptance bill 9,800,000.00 Commercial acceptance bill 57,789,095.11 Total 9,800,000.00 57,789,095.11 (4)There is no notes transferred to accounts receivable because drawer of the notes fails to exuted the contract or agreement In RMB Items Amount Other notes 5. Account receivable 95 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 (1).Classification account receivables. In RMB Amount in year-end Amount in year- begin Book Balance Bad debt provision Book Book Balance Bad debt provision Categoty value Amount Proporti Amount Proportio Amount Proportio Amount Proportion( Book value on(%) n(%) Proportio n(%) %) n(%) Receivables subject 4,148,1 to provision for bad 5,335,451 506,485, 4,828,966 423,012,1 3,725,170,2 100.00% 9.49% 82,356. 99.91% 10.20% debts on credit risk ,726.65 348.85 ,377.80 47.95 08.31 26 characteristics basis Receivables that are individually insignificant but with 3,844,3 3,844,309 0.09% provision for bad 09.34 .34 debts made on an individual basis 4,152,0 5,335,451 506,485, 4,828,966 426,856,4 3,725,170,2 100.00% 9.49% 26,665. 100.00% 10.20% ,726.65 348.85 ,377.80 57.29 08.31 Total 60 Receivable accounts with large amount individually and bad debt provisions were provided □Applicable √Not applicable Account reveivable on which bad debt proisions are provided on age basis in the group √ Applicable □ not applicable In RMB Amount in year-end Aging Account receivable Bad debt provision Rate of alloance(%) Within item 1 year Subtotal within 1 year 4,028,468,011.86 201,423,401.18 5% 1-2 years 680,439,169.63 68,043,916.96 10% 2-3 years 448,259,638.33 134,477,891.50 30% 3-4 years 135,205,169.22 67,602,584.61 50% 4-5 years 40,710,915.07 32,568,732.06 80% Over 5 years 2,368,822.54 2,368,822.54 100% Total 5,335,451,726.65 506,485,348.85 Notes: The Company complies with the disclosure requirements of the No.7 Industry Information Disclosure Guideline of Shenzhen Stock Exchange-the Listed Company that Engaged in Civil Engineering and Construction Business. Receivable accounts with large amount individually and bad debt provisions were provided □Applicable √Not applicable 96 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 Account reveivable on which bad debt proisions are provided on age basis in the group (2)Bad debt provision accrual collected or switch back Bad debt provision accrual was RMB 78,876,794.46 ; The acmount collected or switches back amounting to -130,997.72. (3)The current accounts receivable write-offs situation In RMB Items Amount written off Account receivables actually written-off during the reporting period: In RMB Nature of account Reason for written Verification Arising from related Name Amount written off receivables -off procedures transactions (Y/N) Explanation for write-off of account receivables: (4)The ending balance of other receivables owed by the imputation of the top five parties Amount in year-end Name Account receivable Proportion(%) Bad debt provision China Harbour Engineering Company Ltd. 784,205,077.92 15 39,210,253.90 China Water Conservancy & Hydropower 514,481,654.72 10 25,724,082.74 Second Engineering Bureau Co., Ltd. Oxley Gem (Cambodia) Co., ltd. 309,592,365.55 6 15,479,618.28 Zhong Ya Group 300,703,393.02 6 15,035,169.65 Oxley Diamond (Cambodia) Co., Ltd 293,445,130.01 6 14,672,256.50 Total 2,202,427,621.22 42 110,121,381.07 (5) Account receivable which terminate the recognition owning to the transfer of the financial assets (6) The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts receivable Other notes: 6.Prepayments (1)Age analysis In RMB 97 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 Year-end balance Year-beginning balance Aging Amount Proportion Amount Proportion Within 1 year 87,432,524.80 46.75% 311,193,306.31 97.49% 1-2 years 97,273,487.84 52.02% 5,789,414.72 1.81% 2-3 years 1,149,555.80 0.61% 1,269,897.25 0.40% Over 3 years 1,147,010.34 0.61% 954,180.35 0.30% Total 187,002,578.78 -- 319,206,798.63 -- Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in time:: (2)The ending balance of Prepayments owed by the imputation of the top five parties Name Balance in year-end Proportion Qingyuan Hefeng New Energy Technology Co., 75,000,000.000 40.11% Ltd. Guangzhou Qiannuo Company 6,962,022.1 3.72% Anhui Yameiya 5,355,000.00 2.86% QD-CPC-INDUSTRIES COMPANY 3,438,009.40 1.84% China steel structure (Kampuchea) Co., Ltd. 3,130,526.29 1.67% Total 93,885,558.29 50.21% Other notes: 7.Interest receivable (1)Classification Interest receivable In RMB Name Balance in year-end Balance in Year-beginning (2)Important overdue interest Is there any impairment Name Balance in year-end Overdue date Reason and its judgment basis? Other notes: 98 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 8.Dividend receivable (1)Dividend receivable In RMB Items Amount in year-end Amount in year-beginning (2)Dividend receivable aging over 1 years In RMB Whether the impairment Items Amount in year-end Age Reason and its judgment basis Other notes: 9. Other accounts receivable (1) Other accounts receivable disclosed by category In RMB Amount in year-end Amount in year- begin Book Balance Bad debt provision Book Balance Bad debt provision Classification Book Proportio Proportio Proportion( Book value Amount Amount Amount value Amount Amount n(%) n(%) %) Other receivables subject to provision 991,698, 68,552,9 923,145,8 709,527 58,515,25 651,012,13 for bad debts on 100.00% 6.91% 99.93% 8.25% 810.35 52.46 57.89 ,391.05 8.14 2.91 credit risk characteristics basis Other receivables with individually insignificant amount 500,000 500,000.0 0.07% but subject to .00 0 individual provision for bad debts 991,698, 68,552,9 923,145,8 710,027 59,015,25 651,012,13 Total 100.00% 6.91% 100.00% 8.25% 810.35 52.46 57.89 ,391.05 8.14 2.91 Receivable accounts with large amount individually and bad debt provisions were provided □Applicable √Not applicable Account reveivable on which bad debt proisions are provided on age basis in the group √ Applicable □ not applicable In RMB 99 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 Amount in year-end Aging Account receivable Bad debt provision Rate of alloance(%) Within item 1 year Subtotal within 1 year 855,499,389.99 42,774,969.50 5.00% 1-2 years 91,500,049.08 9,150,004.91 10.00% 2-3 years 32,825,953.41 9,847,786.02 30.00% 3-4 years 9,775,052.72 4,887,526.36 50.00% 4-5 years 1,028,497.40 822,797.92 80.00% Over 5 years 1,069,867.75 1,069,867.75 100.00% Total 991,698,810.35 68,552,952.46 Notes: Other receivable account in Group on which bad debt provisions were provided on percentage basis: □Applicable √Not applicable Other Receivable accounts on which bad debt provisions are provided by other ways in the portfolio: □Applicable √Not applicable (2)Bad debt provision accrual collected or switch back Bad debt provision accrual was 12,514,988.27, the acount collected or switches back amounting to RMB 2,149,851.74. Significant amount of reversed or recovered bad debt provision: In RMB Name Amount Method (3) Other account receivables actually cancel after wtite-off In RMB Items Amount Of Which,Other receivable write-off: In RMB Whether the money is generated by Name Nature Amount Reason program related party transactions Notes: (4) Other account receivables category by nature of money In RMB Naature Ending book balance Beginning book balance 100 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 Bidding margins, performance bonds and 582,846,578.91 366,310,322.14 deposits Petty cash and current accounts between 69,312,517.17 59,867,918.12 individuals Current accounts between entities 339,032,395.66 282,984,039.72 Others 507,318.61 865,111.07 Total 991,698,810.35 710,027,391.05 (5)The ending balance of other receivables owed by the imputation of the top five parties In RMB Portion in total other Bad debt provision Name Nature Year-end balance Age receivables(%) of year-end balance China Electric Current accounts Power Construction 199,296,452.57 1 年以内 20.10% 9,964,822.63 between entities Group Co., Ltd. PT.WANXIANG NICKEL Deposits 68,000,000.00 1 年以内 6.86% 3,400,000.00 INDONESIA Hebei Xuxing urrent accounts 55,000,000.00 1 年以内 5.55% 2,750,000.00 Industry Co., Ltd. between entities China Harbour Engineering Deposits 51,258,276.00 1 年以内 5.17% 2,562,913.80 Company Ltd. China Second Metallurgy Group Performance bonds 50,000,000.00 1 年以内 5.04% 2,500,000.00 Co., Ltd. Total -- 423,554,728.57 -- 42.72% 21,177,736.43 (6) Account receivables with government subsidies involved In RMB Estimated time, amount Name Project name Amount in year-end At the end of aging and basis (7) Other account receivables recognition terminated due to transfer of financial assets (8) Other account receivables transferred and assets & liability formed by its continuous involvement Other Notes 101 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 10.Inventory Whether the company needs to comply with the disclosure requirements of the particular industry No (1)Inventory types In RMB Year-end balance Year-beginning balance Items Provision for bad Provision for bad Book Balance Book value Book Balance Book value debts debts Raw materials 9,258,863.69 9,258,863.69 12,078,945.75 12,078,945.75 Processing 668,934.23 668,934.23 products Stock goods 50,339,149.57 1,404,765.68 48,934,383.89 43,492,877.62 1,404,765.68 42,088,111.94 Construction cont ract has been com 248,587,196.30 5,051,867.60 243,535,328.70 282,911,079.94 5,051,867.60 277,859,212.34 pleted unsettled a ssets Low value 209,726.10 209,726.10 consumables Total 308,185,209.56 6,456,633.28 301,728,576.28 339,361,563.64 6,456,633.28 332,904,930.36 The Company complies with the disclosure requirements of the No.7 Industry Information Disclosure Guideline of Shenzhen Stock Exchange-the Listed Company that Engaged in Civil Engineering and Construction Business. (2) Inventory depreciation reserve In RMB Year-beginning Increase Decrease Items Year-end balance balance Accrual Other Switch back Other Stock goods 1,404,765.68 0.00 0.00 1,404,765.68 Construction cont ract has been com 5,051,867.60 0.00 0.00 5,051,867.60 pleted unsettled a ssets Total 6,456,633.28 6,456,633.28 102 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 (3) Explanation on inventories with capitalization of borrowing costs included at ending balance (4) Assets unsettled formed by construction contract which has completed at period-end In RMB Items Amount Accumulated Incurred Cost 13,922,688,136.75 Accumulated Confirmed Gross Profit 3,349,029,346.13 Less: expected loss 5,051,867.60 Settlement Amount 17,023,130,286.58 Unliquidated Completed Assets Formed in the Construction 243,535,328.70 Contract Other notes: 11. Divided into assets held for sale In RMB Items Ending book value Fair value Estimated disposal cost Estimated disposal time Other notes: 12. Non-current assets due within 1 year In RMB Items Year-end balance Year-beginning balance Long-term borrowings maturing within 7,961,594.15 13,462,942.89 one year Total 7,961,594.15 13,462,942.89 Other notes: 13. Other current assets In RMB Items Year-end balance Year-beginning balance Input tax to be deducted 11,484,244.83 35,450,194.47 Total 11,484,244.83 35,450,194.47 Other notes: 103 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 14. Available-for-sale financial assets (1) Available-for-sale financial assets In RMB Closing balance Opening balance Items Provision fo Provision fo Book balance Book value Book balance Book value rimpairment rimpairment (2) Available-for-sale financial assets measured at fair value at period-end In RMB Available-for-sale equity Available-for-sale Debt Type Total instruments instruments (3) Available-for-sale financial assets measured by cost at the period-end In RMB Book balance Impairment provision Shareholdin Cash bonus g proportion of the Investee Period-begi Period-beg Period Decre Period among the reporting n Increase Decrease in Increase -end ase -end investees period (4) Changes of the impairment of the available-for-sale financial assets during the reporting period In RMB Available-for-sale Available-for-sale Type Total Equity instruments Debt instruments ⑸Relevant description of the end of the fair value of the equity instruments at the end of a serious decline in fair value or non temporary decline but not related to impairment provision In RMB Decrease in fair Continuous fall Provision for Reasons for Project Investment cost Ending fair value value relative to time (month) impairment impairment cost Other notes 104 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 15. Held-to-maturity investment (1) Held-to-maturity investment In RMB Year-end balance Year-beginning balance Items Provision for Provision for Book balance Book value Book balance Book value impairment impairment (2) Important held-to-maturity investment at period-end In RMB Project Face value Interest rate Actual interest rate Expiring date (3) Reclassify of held-to-maturity investment in the period Other notes 16. Long-term account receivables (1)Long-term account receivables In RMB Year-end balance Year-beginning balance Discount rate Items Provision for Provision for range Book balance Book value Book balance Book value impairment impairment (2) Long-term account receivables recognition terminated due to transfer of financial assets (3) Long-term account receivables transferred and assets & liability formed by its continuous involvement 17. Long-term equity investment In RMB Increase/decrease Closing Adjustme Withdraw balance Decrease Gain/loss nt of Declarati Opening Add Other n Closing of Investees d of other on of cash balance investmen equity impairme Other balance impairme investmen Investme comprehe dividends t changes nt nt t nt nsive or profit provision provision income 105 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 I. Joint ventures II. Associated enterprises Other notes 18. Investment real estate (1) Investment real estate by cost measurement □Applicable √ Not applicable (2) Investment real estate by fair value □Applicable √ Not applicable (3) Investment real estate without certificate of ownership In RMB Items Book balue Reason Other notes 19. Fixed assets (1) List of fixed assets In RMB Machinery Items House, building Transportations Other equipment Total eqiupment I. Original price 1. Balance at 67,969,481.04 81,254,453.35 36,163,316.47 14,705,677.33 200,092,928.19 period-beginning 2.Increase in the 4,414,321.14 2,599,482.28 2,840,229.14 485,689.58 10,339,722.14 current period (1) Purchase 3,814,321.14 2,599,482.28 2,840,229.14 485,689.58 (2) Transferred fr 600,000.00 om construction in p rogress (3)Increased of Enterprise Combination 106 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 3.Decreased amount of the period (1)Disposal 4. Balance at 72,383,802.18 83,853,935.63 39,003,545.61 15,191,366.91 210,432,650.33 period-end II. Accumulated depreciation 1.Opening balance 15,127,800.94 30,513,047.92 16,465,368.36 9,502,963.24 71,609,180.46 2.Increased amount 4,623,216.53 3,631,775.51 2,075,612.47 1,147,688.56 11,478,293.07 of the period (1) Withdrawal 4,623,216.53 3,631,775.51 2,075,612.47 1,147,688.56 11,478,293.07 3.Decrease in the reporting period (1)Disposal 4.Closing balance 19,751,017.47 34,144,823.43 18,540,980.83 10,650,651.80 83,087,473.53 III. Impairment provision 1.Opening balance 2.Increase in the reporting period (1)Withdrawal 3.Decrease in the reporting period (1)Disposal 4. Closing balance IV. Book value 1.Book value of the 52,632,784.71 49,709,112.20 20,462,564.78 4,540,715.11 127,345,176.80 period-end 2.Book value of the 52,841,680.10 50,741,405.43 19,697,948.11 5,202,714.09 128,483,747.74 period-begin 107 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 (2) Fixed assets temporarily idled In RMB Accumulated Provision for Items Original book value Book value Remark depreciation impairment (3) Fixed assets rented by finance leases In RMB Accumulated Accumulated Items Original book value Book value depreciation depreciation Machinery equipment 1,626,791,238.70 102,540,637.32 1,524,250,601.38 (4) Fixed assets leased in the operating leases In RMB Items End book value (5) Fixed assets without certificate of title completed In RMB Items Book value Reason Other notes 20. Project under construction (1)Project under construction In RMB Year-end balance Year-beginning balance Items Book balance Provision for Book value Book balance Provision for Book value devaluation devaluation Suzhou Lvbang 842,027.15 842,027.15 Plant Kuwait tower 2,946,270.27 2,946,270.27 cranes Total 3,788,297.42 0.00 3,788,297.42 (2) Changes of significant construction in progress In RMB 108 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 Includin Capitalis g: Amount Transferr ation of Current Capitalis Increase Balance at year ed to Other Proporti Progress interest amount ation of Source Name Budget at this in beginnin fixed decrease on(%) of work accumul of interest of funds period year-end g assets ated capitaliz ratio(%) balance ation of interest Suzhou 6,478,67 842,027. 842,027. Lvbang 0.00 0.00 0.00 100% 0.00 0.00 0.00% 自筹 0.79 15 15 Plant Kuwait 3,028,59 2,946,27 2,946,27 tower 0.00 0.00 0.00 97% 0.00 0.00 0.00% 自筹 7.00 0.27 0.27 cranes 9,507,26 3,788,29 3,788,29 0.00 0.00 0.00 -- -- -- Total 7.79 7.42 7.42 (3)Provision for impairment of construction projects In RMB Items Amount Reason Other notes 21. Engineering Material In RMB Items Closing balance Opening balance Other notes 22. Disposal of fixed assets In RMB Items Closing balance Opening balance Other notes: 23. Productive biological assets (1) Measured by cost □ Applicable √ Not applicable 109 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 (2) Measured by fair value □ Applicable √ Not applicable 24. Oil-and-gas assets □ Applicable √ Not applicable 25. Intangible assets (1)Information In RMB Non-patent Items Land use right Patent Software Total Technology I. Original price 1.Opening 108,621,002.59 4,416,616.07 113,037,618.66 balance 2.Increased amount ofthe 40,800.00 40,800.00 period (1) Purchase 40,800.00 40,800.00 (2)Internal Development (3)Increased of Enterprise Combination 3.Decreased amount of the period (1)Disposal 4. Balance at 108,621,002.59 0.00 0.00 4,457,416.07 113,078,418.66 period-end II.Accumulated amortization 1. Balance at 5,054,613.34 1,779,561.77 6,834,175.11 period-beginning 2. Increase in the 1,531,394.15 404,079.73 1,935,473.88 current period (1) Withdrawal 1,531,394.15 404,079.73 1,935,473.88 110 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 (2)Increased of Enterprise 99,422.09 Combination 3.Decreased amount of the period (1)Disposal 4. Balance at 6,586,007.49 0.00 0.00 2,183,641.50 8,769,648.99 period-end III. Impairment provision 1. Balance at period-beginning 2. Increase in the current period (1) Withdrawal 3.Decreased amount of the period (1)Disposal 4. Balance at period-end 4. Book value 1.Book value at 102,034,995.10 0.00 0.00 22,273,774.57 104,308,769.67 period -end 2.Book value at 103,566,389.25 2,637,054.30 106,203,443.55 period-beginning The intangible assets by the end of the formation of the company's internal R & D accounted of the proportion of the balance of intangible assets ⑵Details of Land use right failed to accomplish certification of property In RMB Items Book value Reason Other notes: 111 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 26. Development expenditure In RMB Beginning Ending Items Increase in the period Decrease in period balance balance Other notes 27. Goodwill (1) Original book value of goodwill In RMB Name of the investees or the Opening balance Increase Decrease Closing balance events formed goodwill Shenzhen Yatian Decoration Design 6,724,316.91 0.00 0.00 6,724,316.91 Engineering Co., Ltd. Shenzhen Yatian Decoration Design 17,948,978.53 0.00 0.00 17,948,978.53 Engineering Co., Ltd. Sino Great Wall Jianyee 6,943,534.86 0.00 0.00 6,943,534.86 Engineering Co., Ltd. Wuhan Commerc ial & Vocational 27,257,314.49 0.00 0.00 27,257,314.49 Hospital Co.,Ltd Total 58,874,144.79 0.00 0.00 58,874,144.79 (2)Impairment tprovision of goodwill In RMB Name of the investees or the Opening balance Increase Decrease Closing balance events formed goodwill 112 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 Notes of the testing process of goodwill impairment, parameters and the recognition method of goodwill impairment losses: Other notes: 28.Long-term amortization expenses In RMB Balance in Increase at this Amortization at Items Decrease Balance in year-end year-begin period this period Renovation costs 12,028,199.87 0.00 2,695,428.86 0.00 9,332,771.01 Overseas guarantee 8,437,778.96 0.00 4,691,140.82 0.00 3,746,638.14 fees Less: Long-term borrowings maturing -13,462,942.90 5,501,348.75 0.00 0.00 -7,961,594.15 within one year Amortization fees 0.00 0.00 0.00 Total 7,003,035.93 5,501,348.75 7,386,569.68 0.00 5,117,815.00 Other notes 29.Deferred income tax assets/deferred income tax liabilities (1)Details of the un-recognized deferred income tax assets In RMB Balance in year-end Balance in year-begin Items Deductible temporary Deferred income tax Deductible temporary Deferred income tax difference assets difference assets Provision for asset 575,038,301.31 88,823,111.60 484,110,666.81 74,623,400.23 impairment Deductible losses 2,193,494.11 548,373.53 2,265,150.21 566,287.55 Provision for inventory 6,456,633.28 1,108,971.56 6,456,633.28 1,108,971.56 depreciation Total 583,688,428.70 90,480,456.69 492,832,450.30 76,298,659.34 (2)Details of the un-recognized deferred income tax liabilities In RMB Balance in year-end Balance in year-begin Items Temporarily Deductable Deferred Income Tax Temporarily Deductable Deferred Income Tax or Taxable Difference liabilities or Taxable Difference liabilities 113 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 (3) Deferred income tax assets or liabilities listed by net amount after off-set In RMB Trade-off between the Opening balance of Trade-off between the End balance of deferred deferred income tax deferred income tax Items deferred income tax income tax assets or assets and liabilities at assets or liabilities after assets and liabilities liabilities after off-set period-begin off-set Deferred income tax 90,480,456.69 76,298,659.34 assets Deferred income 26,513,069.28 27,469,888.77 liabilities (4)Details of income tax assets not recognized In RMB Items End of term Beginning of term (5) The un-recognized deductible losses of deferred income tax assets will due in the following years: In RMB Year End of term Beginning of term Remark Other notes: 30 .Other non-current assets In RMB Items Closing balance Opening balance PPP project investment 300,279,100.00 48,960,000.00 Advances for purchase of long-term assets 64,913,773.00 67,942,258.30 Total 365,192,873.00 116,902,258.30 Other notes: 31 .Short-term loans (1)Category of short-term borrowings In RMB Items End of term Beginning of term Guaranteed borrowings 2,692,397,500.00 1,621,515,110.00 Commercial acceptance bills endorsed or discounted but not expired on the balance 57,789,095.11 344,543,247.59 sheet date Total 2,750,186,595.11 1,966,058,357.59 Notes to short-term borrowings: (2) Situation of Overdue Outstanding Short-Term Borrowing 114 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 Final overdue outstanding short-term borrowing was zero, and situation of important overdue outstanding short-term borrowing was as follows: In RMB Unit Closing balance Interest rate Time Overdue interest rate Other notes: 32. Financial liabilities measured at fair value through current profit and loss In RMB Items Closing balance Opening balance Other notes: 33. Derivative financial liabilities □ Applicable√ Not applicable 34. Note payable In RMB Type Closing balance Opening balance Commercial acceptance 354,206,203.17 397,450,000.00 Bank acceptance 251,951,880.00 309,433,375.54 Total 606,158,083.17 706,883,375.54 Amount due in next fiscal period is RMB 0.00. 35.Account payable (1)Account payable In RMB Items Closing balance Opening balance Payments for projects 1,483,162,799.23 1,295,611,654.20 Payments for purchase of long-term assets 7,923,625.18 Payment for purchase of medicines 22,304,037.68 10,413,710.87 Total 1,505,466,836.91 1,313,948,990.25 (2)Significant accounts payable that aged over one year In RMB The reason for not repaid or carried forwar Items Balance in year-end d 115 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 RMB 3579983.74 for those within 1 year CHHE GROUP CO.LTD 15,071,239.84 and RMB 11950077.17 within 1-2 years RMB 730929 For those within 1 year and Rezayat Trading Co. Limited 8,944,679.73 RMB8318312.92 within 1-2 years Total 24,015.919.57 -- Other notes: 36. Accounts received in advance (1)Accounts received in advance In RMB Items End of term Beginning of term Project engineering Fund 532,197,371.32 572,743,695.28 Accounts received in advance 1,202,047.48 1,040,377.30 Total 533,399,418.80 573,784,072.58 (2) Accounts payable with major amount and aging of over one year In RMB Items Closing balance Reason (3)Information of unliquidated completed assets formed in the construction contract at the end of the period In RMB Items Amount Other notes: 37. Employee compensation payable (1)Classification of employee compensation payable In RMB Items Balance in year-begin Increase at this period Decrease at this period Balance in year-end I. 17,637,749.42 160,032,879.27 160,309,543.14 17,361,085.55 Short-term remuneration II. Post-employment benefit 1,159,797.27 7,062,149.91 7,066,018.58 1,155,928.60 s - defined contribution p lans 116 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 Total 18,797,546.69 167,095,029.18 167,375,561.72 18,517,014.15 (2)Short-term remuneration In RMB Items Balance in year-begin Increase at this period Decrease at this period Balance in year-end 1.Wages, bonuses, 16,916,964.73 142,403,319.93 142,743,934.89 16,576,349.77 allowances and subsidies 2.Employee welfare 9,415,357.39 9,415,357.39 0.00 3. Social insurance 620,944.70 4,806,277.64 4,707,985.82 719,236.52 premiums Including:Medical 516,068.74 4,233,553.51 4,236,120.73 513,501.52 insurance Work injury insurance 26,369.92 373,981.55 131,371.45 93,741.05 Maternity insurance 78,506.04 3,380,951.59 340,493.64 111,993.95 4. Public reserves for 99,839.99 3,380,951.59 3,415,292.32 65,499.26 housing 5.Union funds and staff 26,972.72 26,972.72 0.00 education fee Total 17,637,749.42 160,032,879.27 160,309,543.14 17,361,085.55 (3)Defined contribution plans listed In RMB Items Balance in year-begin Increase at this period Decrease at this period Balance in year-end 1. Basic old-age 1,130,824.85 6,804,645.45 6,808,963.49 1,126,506.81 insurance premiums 2.Unemployment 28,972.42 257,504.46 257,055.09 29,421.79 insurance Total 1,159,797.27 7,062,149.91 7,066,018.58 1,155,928.60 Other notes: 38. Taxes payable In RMB Items Closing balance Opening balance VAT 63,910,297.09 12,062,605.90 Enterprise Income tax 163,853,558.60 207,849,865.19 Individual income tax 760,062.36 1,515,889.41 City Construction tax 3,970,922.75 4,725,964.11 117 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 Educational surtax 3,096,846.87 3,694,729.45 Stamp Tax 244,211.68 336,646.62 Other 80,990,163.21 83,297,969.10 Land use tax 47,718.08 Land use tax 34,225.74 Total 316,908,006.38 313,483,669.78 Other notes: 39. Interest payable In RMB Items Closing balance Opening balance Interest payable on short-term borrowings 3,435,696.74 4,710,255.00 Interest payable on long-term borrowings 2,108,821.81 1,718,238.55 Total 5,544,518.54 6,428,493.55 Particulars of significant overdue unpaid interest: In RMB Name Overdue amount Overdue reason Other notes: 40. Dividends payable In RMB Items Closing balance Opening balance Common stock dividend 101,894,700.66 Total 101,894,700.66 Note: Including significant unpaid dividends payable over one year, the unpaid reason shall be disclosed: 41. Other accounts payable (1) Other accounts payable listed by nature of the account Items Closing balance Opening balance Bidding margins, performance bonds and 23,002,897.46 26,582,761.45 deposits Current accounts between individuals and 23,743,153.38 45,650,286.49 withholding payables Lendings to shareholders Current accounts between entities 218,528,449.91 136,613,997.74 Others 208,110.36 13,567,929.33 118 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 Total 265,482,611.11 222,414,975.01 (2) Other payables with large amount and aging of over one year In RMB Items Ending balance Reason Shenzhen Qunguangshun Construction 31,500,000.00 Unexpired yet Labor Co., Ltd. Total 31,500,000.00 -- Other notes: 42. Divided into liability held for sale In RMB Items Closing balance Opening balance Other notes: 43.Non-current liabilities due within 1 year In RMB Items Closing balance Opening balance Long-term loans due 1 year 814,408,879.06 175,958,998.04 Total 814,408,879.06 175,958,998.04 Other notes: 44.Other current liabilities In RMB Items Closing balance Opening balance Output tax to be carried forward 30,382,980.72 Total 30,382,980.72 Increase or decrease in short-term bonds payable: In RMB Premium Amount This and Balance Issuing Issuing in period for Name Par value Term This issue Interest discount in date amount year-beg repaymen amortiatio year-end in t n 119 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 Other notes: 45. Long-term loan (1) Category of long-term loan In RMB Items Balance in year-end Balance in year-begin Pledged borrowings 100,000,000.00 500,000,000.00 Mortgage borrowings 3,746,159.00 3,175,860.22 Guarantee loan 340,595,435.32 283,683,018.60 Total 444,341,594.32 786,858,878.82 Notes of short-term loans category: Other notes including interest rate range: 46.Bond payable (1)Bond payable In RMB Items Closing balance Opening balance Qianhai Wutong Private bond No.2016070 100,000,000.00 Total 100,000,000.00 (2) Changes on bonds payable (not including other financial instrument classified as preferred stock and perpetual capital securities of financial liabilities) In RMB (3) Note to conditions and time of share transfer of convertible bonds (4)Other financial instruments that are classified as financial liabilities The issuance of preferred stock and other financial instruments such as perpetual debt Table of changes in financial instruments such as preferred stock and perpetual debt In RMB External Balance in year-begin Increase at this period Decrease at this period Balance in year-end financial Amount Book value Amount Book value Amount Book value Amount Book value instruments 120 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 Notes 47. Long-term payable (1) Long-term payable listed by nature of the account In RMB Items Closing balance Opening balance Other notes: 48. Long-term employee salary payable (1)Long-term employee salary payable In RMB Items Closing balance Opening balance (2) Changes of defined benefit plans Present worth of defined benefit plans obligation: In RMB Items Closing balance Opening balance Plan assets: In RMB Items Closing balance Opening balance Net liabilities(net assets) of defined benefit plans In RMB Items Closing balance Opening balance Notes to the influence of the content and related risk of defined benefit plans to the future cash flows, time and uncertainty of the Company: Notes to analysis results of major actuarial assumptions and sensibility of defined benefit plans Other notes: 49. Specific payable In RMB Balance in Increase at this Decrease at this Items Balance in year-end Reason year-begin period period Other notes: 121 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 50. Estimates liabilities In RMB Items Balance in year-end Balance in year-begin Reason Provision for pending litigation 4,878,343.68 13,225,861.70 Pending litigation of the Company Total 4,878,343.68 13,225,861.70 -- Other notes: 51.Deferred income In RMB Balance in Increase at this Decrease at this Items Balance in year-end Reason year-begin period period Details of government subsidies In RMB Amount Beginning of New subsidy in transferred to Asset-related or Items Other changes End of term term current period non-operational income-related income Other notes: 52.Other Non-current liabilities In RMB Items Closing balance Opening balance Other notes: 53.Stock capital In RMB Increase/decrease this time (+ , - ) Balance Balance Issuing of new Transferred Year-beginning Bonus shares Other Subtotal year-end share from reserves Total of 1,698,245,011. capital 1,698,245,011.00 00 shares Other notes: 122 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 54. Other equity instruments (1) Basic information of preferred stock, perpetual capital securities and other financial instruments outstanding issued at period-end (2) Change list of preferred stock, perpetual capital securities and other financial instruments outstanding issued at period-end In RMB Financial Opening period Increase Decrease 少 Closing period instruments outstanding Amount Book value Amount Book value Amount Book value Amount Book value issued Changes, reason of change and basis of relevant accounting treatment of other equity instruments in reporting period: Notes: 55. Capital reserves In RMB Items Year-beginning balance Increase in current Decrease in current Year-end balance Share premium -857,285,524.28 -857,285,524.28 Other -442,064,177.46 4,222,250.95 -446,286,428.41 Total -1,299,349,701.74 4,222,250.95 -1,303,571,952.69 Other notes, including changes and reason of change: 56.Treasury stock In RMB Decrease in the current Items Year-beginning balance Increase in the current Year-end balance period Other notes, including changes and reason of change: 57. Other comprehensive income In RMB Amount of current period Less : Previously rec Amount for After - tax a After - tax a Year-beginni Year-end Items ognized in pro the period Less: ttributable t ttributable t ng balance balance fit or loss in ot before inco Income tax o the parent o minority s her comprehen me tax company hareholders sive income Other notes, including the adjustment of the recognition of initial amount of effective part of the cash flow 123 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 hedging gains and losses 58. Special reserves In RMB Decrease in the current Items Year-beginning balance Increase in the current Year-end balance period Safety production cost 65,687,868.14 35,597,306.04 19,457,286.50 81,827,887.68 Total 65,687,868.14 35,597,306.04 19,457,286.50 81,827,887.68 Other notes, including changes and reason of change: 59. Surplus reserve In RMB Items Year-beginning balance Increase in the current Decrease in the current Year-end balance period period Statutory surplus reserve 84,394,441.23 84,394,441.23 Total 84,394,441.23 84,394,441.23 Other note, including changes and reason of change 60. Retained profits In RMB Items Amount of current period Amount of previous period After adjustments: Retained profits at the period 1,228,970,498.86 755,308,636.19 beginning Dividend of common stock payable 1,395,800,181.16 959,222,073.64 Retained profits at the period end As regards the details of adjusted the beginning undistributed profits (1)As the retroactive adjustment on Enterprise Accounting Standards and its related new regulations, the affected beginning undistributed profits are RMB 0.00. (2) As the change of the accounting policy, the affected beginning undistributed profits are RMB 0.00. (3) As the correction of significant accounting error, the affected beginning undistributed profits are RMB 0.00 . (4) As the change of consolidation scope caused by the same control, the affected beginning undistributed profits 124 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 are RMB 0.00. (5) Other adjustment of the total affected beginning undistributed profits are RMB 0.00 . 61. Business income, Business cost In RMB Amount of current period Amount of previous period Items Income Cost Income Cost Main business 3,024,948,121.79 2,319,597,133.26 1,953,458,815.17 1,460,727,131.33 Other business 134,235.01 1,482.50 115,940.34 Total 3,025,082,356.80 2,319,598,615.76 1,953,574,755.51 1,460,727,131.33 62. Business tax and subjoin In RMB Items Amount of current period Amount of previous period Urban construction tax 1,042,829.78 490,781.57 Education surcharg 655,066.85 407,123.13 Property tax 68,451.48 Land use tax 47,718.08 Stamp tax 128,521.10 Other 8,128,747.41 Total 1,942,587.29 9,026,652.11 Other notes 63.Sales expenses In RMB Items Amount of current period Amount of previous period Wage 4,603,916.86 3,018,618.91 Office fee 4,078,158.29 3,108,540.71 Travel 393,660.38 561,434.40 Business expenses 128,844.14 217,201.30 Advertising 47,834.95 2,675.00 Advertising 7,849,265.92 1,844,249.85 Other 992,905.85 506,544.07 Total 18,094,586.39 9,259,264.24 Other notes: 125 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 64. Administrative expenses In RMB Items Amount of current period Amount of previous period Wage 68,871,087.57 55,087,982.62 Office fee 8,687,944.68 6,868,345.55 Rental fees 7,347,823.86 8,847,563.59 Travel expenses 5,571,017.05 6,178,764.80 Entertainment expenses 3,996,369.24 4,279,243.33 Depreciation of fixed assets 6,270,469.80 1,049,628.12 Vehicle costs 1,479,810.31 1,406,039.97 Amortization of long-term prepaid 1,939,541.82 2,346,368.89 expenses Consulting fees 7,555,211.52 14,430,715.98 Entertainment expenses 823,301.14 1,465,461.90 Factoring fee 1,408,333.33 Conference expenses 58,389.00 120,939.59 Tax fee 311,342.47 256,826.82 Cultivate fee 37,574.26 5,041.50 Insurance fee 582,826.56 3,473.00 Other 10,713,417.51 9,186,385.90 Transportation changes 930,631.36 52,639.40 Total 125,176,758.15 112,993,754.29 Other notes: 65. Financial expenses In RMB Items Amount of this period Amount of last period Interest expenses 96,401,355.73 130,325,289.46 Less: Interest income 4,508,510.14 3,936,374.12 Gains or losses on exchange 28,659,038.33 -75,709,807.87 Discount interest 2,767,616.98 19,445,217.45 Guarantee expenses 8,617,206.29 Handling charges and others 7,875,102.40 57,312,903.03 Total 139,811,809.59 70,024,674.60 Other notes: 126 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 66.Loss of assets impairment In RMB Items Amount of this period Amount of last period Losses on bad debts 89,110,933.27 78,474,915.67 Losses on inventory depreciation 52,180.60 Total 89,110,933.27 78,527,096.27 Other notes: 67. Gains from changes in fair value In RMB Source of the gains from changes in fair Amount of this period Amount of last period value Other notes: 68. Investment income In RMB Items Amount of this period Amount of last period Hold the investment income during from 0.00 46,868.49 available-for-sale financial assets Total 46,868.49 Other notes: 69. Non-Operation income In RMB Items Amount of current period Amount of previous period Recorded in the amount of the non-recurring gains and losses 70. Non-operating income In RMB Items Amount of current period Amount of previous period Recorded in the amount of the non-recurring gains and losses Including:Gains from disposal 59,934.00 of fixed assets Government Subsidy 60,363.52 127 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 Demolition compensation 29,071,295.00 Other 4,384,261.26 2,040.00 Total 4,444,624.78 29,133,269.00 Government subsidy reckoned into current gains/losses In RMB Whether the impact of Whether Amount of Amount of Assets-relate Issuing subsidies on Items Reason Nature special current previous d/income subject the current subsidies period period -related profit and loss Other notes: 71. Non-operating expenses In RMB The amount of non-operating Items Amount of current period Amount of previous period gains & lossed Compensation for demolition 2,755,912.00 and relocation Other 93,122.33 Total 93,122.33 2,755,912.00 Other notes: 72 .Income tax expenses (1) Table of income tax expenses In RMB Items Amount of current period Amount of previous period Current income tax expenses 68,435,528.34 48,703,354.96 Deferred income tax expenses -12,208,390.09 -10,840,595.13 Total 56,227,138.25 37,862,759.83 (2) Adjustment progress of accounting profit and income tax In RMB Itmes Amount of current period Total profits 335,698,568.80 128 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 Income tax expense 56,227,138.25 Other notes 73 .Other comprehensive income More details can be seen in Note. 74.Items of Cash flow statement (1)Other cash received from business operation In RMB Items Amount of current period Amount of previous period 2,967,473,297.47 339,397,760.63 Total 2,967,473,297.47 339,397,760.63 Notes: (2)Other cash paid related to operating activities In RMB Items Amount of current period Amount of previous period Handling charges 9,715,737.69 10,189,145.12 Margin and deposit expenses 390,616,487.26 39,131,360.77 Selling expenses 1,218,208.55 871,447.72 General and administrative expenses 103,574,686.71 76,645,222.04 Current accounts 2,939,598,205.33 928,164,050.00 Total 3,444,723,325.54 1,055,001,225.65 Notes: (3)Other Cash received related to investment activities In RMB Items Amount of current period Amount of previous period Notes: (4)Other Cash payable related to investment activities In RMB Items Amount of current period Amount of previous period 129 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 Notes (5)Other Cash received related to Financing activities In RMB Items Amount of current period Amount of previous period 103,516,162.13 Total 103,516,162.13 Notes: (6)Other Cash payable related to Financing activities In RMB Items Amount of current period Amount of previous period 60,833.33 561,003,771.39 Total 60,833.33 561,003,771.39 Notes: 75. Supplement Information for cash flow statement (1)Supplement Information for cash flow statement In RMB Supplement Information Amount of current period Amount of previous period I. Adjusting net profit to cash flow from -- -- operating activities Net profit 279,471,430.55 201,577,648.33 Add: Impairment loss provision of assets 89,110,933.27 78,527,096.27 Depreciation of fixed assets, oil and gas 6,270,469.80 1,119,746.80 assets and consumable biological assets Amortization of intangible assets 1,754,011.80 439,145.36 Amortization of Long-term deferred 1,939,541.82 2,276,250.23 expenses Financial cost 139,811,809.59 70,024,674.60 Decrease in deferred income tax assets -14,181,797.35 -11,803,334.90 Increased of deferred income tax liabilities -956,819.50 -15,444.16 Decrease of inventories 30,297,693.75 -77,722,883.82 Decease of operating receivables -1,224,519,302.24 -2,294,877,180.26 130 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 Increased of operating Payable 155,004,448.32 773,838,322.35 Net cash flows arising from operating -535,997,580.19 -1,256,615,959.20 activities II. Significant investment and financing -- -- activities that without cash flows: III.Movement of cash and cash equivalents: -- -- Ending balance of cash equivalents 1,446,473,740.35 611,121,476.88 Less: Beginning balance of cash equivalents 943,705,322.41 582,743,756.81 Net increase of cash and cash equivalents 502,768,417.94 28,377,720.07 (2)Composition of cash and cash equivalents In RMB Amount Including -- Including -- Including -- Other notes: (3) Net Cash receive of disposal of the subsidiary In RMB Amount Including -- Including -- Including -- Other notes: (4)Composition of cash and cash equivalents In RMB Items Balance in year-end Balance in year-Beginning I. Cash 1,446,473,740.35 943,705,322.41 III. Balance of cash and cash equivalents at 1,446,473,740.35 943,705,322.41 the period end Other notes: 76. Note of statement of changes in the owner's equity Explain "other" project name and adjustment amount of the adjustment of closing balance in previous year, etc.: Nil 77. The assets with the ownership or use right restricted 131 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 In RMB Items Book value in year-end Reason Other notes: 78. Foreign currency monetary items (1) Foreign currency monetary items In RMB Closing foreign currency Closing convert to RMB Items Exclange rate balance balance Including:USD 33,816,938.40 6.7744 229,089,468.49 HKD -8,234,837.94 0.8679 -7,147,214.61 Rials 31,097.75 1.8568 57,742.31 Rupee 269,427,343.24 0.0438 11,809,000.45 pataca 109,600.89 0.8264 90,570.89 Peso 10,085,495.29 0.1340 1,351,456.38 Kyat 20,512,343.15 0.0049 100,305.36 Ringgit 1,508,191.53 1.5779 2,379,751.85 Dinar (Kuwait) 104,883.85 22.3364 2,342,727.64 Rouble 3,135,458.67 0.1142 358,069.38 THB 420,982.91 0.1993 83,914.52 Including:USD 118,593,051.33 6.7744 803,396,766.93 Rupee 1,182,656,378.30 0.0438 51,835,829.06 pataca 1,362,817.67 0.8264 1,126,191.64 Dinar (Kuwait) 47,478,207.47 22.3364 1,060,492,233.33 Rials 277,150,183.20 1.8568 514,612,460.17 Ringgit 58,282,333.00 1.5779 91,962,782.44 Dinar(Algeria) 24,867,193.21 0.0626 1,556,934.97 Advances to suppliers Including:USD 2,555,658.93 6.7744 17,313,055.86 Rials 16,552,970.07 1.8568 30,735,554.83 Rupee 5,924,310.66 0.0438 259,662.54 Dinar (Kuwait) 1,023,018.55 22.3364 22,850,551.54 Other receivable Including:USD 7,432,468.55 6.7744 50,350,514.95 HKD 356,732.06 0.8679 309,614.89 Rupee 20,641,209.29 0.0438 904,704.20 132 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 Ringgit 669,499.59 1.5779 1,056,392.94 Peso 146,997.00 0.1340 19,697.60 Dinar(Algeria) 1,988,230.25 0.0626 124,483.10 Kyat 1,937,932.91 0.0049 9,476.49 THB 3,127,800.00 0.1993 623,464.37 riyal 111,041,331.00 1.8568 206,181,543.40 Euro 15,000,000.00 7.7496 116,244,000.00 Dinar (Kuwait) 1,415,831.68 22.3364 31,624,582.74 Account payble Including:USD 48,671,722.90 6.7744 329,721,719.62 Riyal 7,458,671.85 1.8568 13,849,261.89 Rupee 363,137,877.76 0.0438 15,916,333.18 Peso 44,130.43 0.1340 5,913.48 Ringgit 20,163,759.48 1.5779 31,816,080.98 Kyat 1,336,107,728.00 0.0049 6,533,566.79 Dinar (Kuwait) 6,108,370.68 22.3364 136,439,010.86 Advances from customers Including:USD 1,255,736.84 6.7744 8,506,863.65 Dinar(Algeria) 109,160,169.07 0.0626 6,834,518.19 Euro 1,998,722.68 7.7496 15,489,301.28 THB 3,299,680.02 0.1993 657,725.22 Other payable Including:USD 822,106.20 6.7744 5,569,276.24 Peso 8,447.15 0.1340 1,131.92 riyal 142,769.54 1.8568 265,094.48 HKD 120,030,000.00 0.8679 104,176,437.60 Dinar (Kuwait) 287,361.27 22.3364 6,418,616.27 Other notes: (2) Explanation on foreign operational entity, as for major foreign operational entity, disclosed foreign main operation land, book-keeping currency and basis; and disclosed reasons if the book-keeping currency changed □ Applicable √Not applicable 133 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 79. Hedging Disclose hedging items by type of hedging as well as relevant arbitrage tool, qualitative and quantitative information for arbitrage project: 80.Other VIII. Changes of consolidation scope 1. Enterprise consolidation not under the same control (1)Business combinations not under common control in the reporting period In RMB Revenue of Net profit of Recognition Timing of Costs for Proportion of Method of the acquiree the acquiree Acquistition basis of the Acquiree acquisition of acquisition of equities acquisition of from the from the date acquisition equities equities acquired (%) equities acquisition acquisition date date date Other notes: (2)Combination cost and goodwill In RMB Combination cost Notes to determination method, consideration and changes of fair value of combined cost: The main formation reason for the large goodwill: Other notes: (3) The identifiable assets and liabilities of acquiree at purchase date In RMB Fair value on the acquisition date Book value on the acquisition date Determination method for fair value of the identifiable assets and liabilities: Contingent liability of the acquiree bear during combination: Other explanation: (4) The profit or loss from equity held by the date before acquisition in accordance with the fair value measured again Whether there is a transaction that through multiple transaction step by step to realize enterprises merger and gaining the controlduring the reporting period □ Yes √ No (5) Note to merger could not be determined reasonable consideration or Identifiable assets, Fair value of liabilities of the acquiree at acquisition date or closing period of the merge 134 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 (6) Other notes: 2. Business combination under the same control (1) Business combination under the same control during the reporting period In RMB Income from Net profits the from the Recognition Income Net profits period-begin reporting Combined Proportion of Combination basis of during the during the Basis to the period to the party the profits date combination period of period of combination combination date comparison compairsion date of the date of the combination combination Other notes: (2) Combination cost In RMB Combination cost Notes to contingent consideration or other changes: Other notes: (3) The book value of the assets and liabilities of the combined party at combining date In RMB Combination date Last closing period Notes to contingent consideration or other changes: Other notes: 3. Counter purchase Basic information of trading, the basis of transactions constitute counter purchase, the retain assets , liabilities of the listed companies whether constituted a business and its basis, the determination of the combination costs, the amount and calculation of adjusted rights and interests in accordance with the equity transaction process. 4. The disposal of subsidiary Whether there is a single disposal of the investment to subsidiary and lost control □ Yes √ No Whether there are multiple transactions step by step dispose the investment to subsidiary and lost control in reporting period □ Yes √ No 5. Other reasons for the changes in combination scope Notes to reasons for the changes in combination scope (Newly established subsidiary and subsidiary of liquidation) and relevant information: 6.Other IX. Equity in other entities 135 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 1. Equity in subsidiary (1) The structure of the enterprise group Principal place Registered Nature of Shareholding ratio (%) Way of Name of subsidiaries of business place business Directly Indirectly acquisition Medical Establishmen Sino Great Wall Medical Investment Management Co., Ltd. Beijing Beijing investment 100 t Investment management, import and Establishmen Sino Great Wall Infrastructure 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 Investment and property management; economy and trade Establishmen Sino Great Wall (Beijing) Investment Fund Management Co., Ltd. Beijing Beijing consulting 100 t Real estate Establishmen Sino Great Wall Real Estate (Hubei) Co., Ltd. Wuhan Wuhan development 80 t New energy Establishmen Sino Great Wall New Energy (Beijing) Co., Ltd. Beijing Beijing technology 100 t Solar photovoltaic Establishmen Qian'an Sino Solar Power Generation Co., Ltd. Qian'an Qian'an power station 100 t Solar photovoltaic power Establishmen Wu'an Juhe Photovoltaic Power Generation Co., Ltd. Wu'an Wu'an generation 100 t Solar power Establishmen Bozhou Guangcheng New Energy Co., Ltd. Bozhou Bozhou generation 100 t Establishmen Bozhou Zhaosheng Agricultural Technology Co., Ltd. Bozhou Bozhou Agriculture 100 t Solar power Establishmen Bozhou Xieying Solar Power Generation Co., Ltd. Bozhou Bozhou generation 100 t Establishmen Shanghai Ling Rui International Trade Company Limited Shanghai Shanghai Trade 100 t Investment, research and development and sales, trade as well as import and Establishmen Shenzhen Hongtulve Industrial Co., Ltd. Shenzhen Shenzhen export 100 t Design and Establishmen Sino Great Wall Development (Hengqin) Co., Ltd. Zhuhai Hengqin construction 85 t 136 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 Principal place Registered Nature of Shareholding ratio (%) Way of Name of subsidiaries of business place business Directly Indirectly acquisition Commercial activities The United The United allowed by Establishmen SINO GREAT WALL (USA). INC States States law 100 t Establishmen Herabenna Interior Design Guangzhou Co., Ltd. Guangzhou Guangzhou Design 100 t Mechanical and electrical engineering, scientific research, trade and investment Establishmen Inrich Me Engineering Co., 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 Real estate or Establishmen PT.SINO GREAT WALL INVESTMENT INDONESIA Indonesia Indonesia lease 99.9 t Establishmen PT.SINO GREAT WALL CONSTRUCTION INDONESIA Indonesia Indonesia Construction 67 t SINO GREAT WALL INTERNETIONAL Design and Establishmen ENGINEERING(CNMI)CO.,LLC Saipan Saipan construction 100 t Design and Shenzhen Yatian Decoration Design Engineering Co., Ltd. Shenzhen Shenzhen construction 100 Acquisition Sino Great Wall International Engineering (MACAU) Co., Design and Establishmen Limited Macao Macao construction 96 4 t Construction, design, trade and investment Establishmen Sino Great Wall Group Co., Limited Hong Kong Hong Kong consulting 100 t Design and Establishmen SGW HP EngineeringConstructionSDN.BHD Malaysia Malaysia construction 100 t Building construction and import SINO GREAT WALL (PHILIPPINES) INTERNATIONAL and export Establishmen CORPORITION Philippines Philippines trade 100 t Design and Establishmen Beijing Sino Great Wall Decoration Design Co., Ltd. Beijing Beijing consulting 100 t Production Establishmen Suzhou Lvbang Wood Technology Co., Ltd. Suzhou Suzhou and sales 100 t Production Establishmen Sino Heji Environmental 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 Establishmen Sino Great Wall International Engineering (Thailand) Co., Ltd. Thailand Thailand 48.998 t 137 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 Notes: holding proportion in subsidiary different from voting proportion: Basis of holding half or less voting rights but still been controlled investee and holding more than half of the voting rights not been controlled investee: Significant structure entities and controlling basis in the scope of combination: Basis of determine whether the Company is the agent or the principal: Other notes: (2) Significant not wholly owned subsidiary In RMB Profit or Loss Owned by Dividends Distributed to Shareholding Ratio of Equity Balance of the the Minority the Minority Name of Subsidiary Minority Shareholders Minority Shareholders in Shareholders in the Shareholders in the (%) the End of the Period Current Period Current Period Holding proportion of minority shareholder in subsidiary different from voting proportion: Other notes: (3) The main financial information of significant not wholly owned subsidiary In RMB Year-end balance Year-beginning balance Non Current Non Non Current Non Name Current Total Total Current Total Total current Liabilitie current current Liabilitie current assets assets liabilities assets assets liabilities assets s liabilities assets s liabilities Amount of current period Amount of previous period Cash flows Cash flows Total Total Name Business from Business from Net profit Comprehensi Net profit Comprehensi income operating income operating ve income ve income activities activities Other notes: (4) Significant restrictions of using enterprise group assets and pay off enterprise group debt (5) Provide financial support or other support for structure entities incorporate into the scope of Other notes 2. The transaction of the Company with its owner’s equity share changed but still controlling the subsidiary (1) Note to owner’s equity share changed in subsidiary (2) The transaction’s influence to equity of minority shareholders and attributable to the owner's equity of the parent company In RMB Other notes 138 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 3. Equity in joint venture arrangement or associated enterprise (1) Significant joint venture arrangement or associated enterprise Proportion Accounting treatment of the Main operating investment of Name Registration place Business nature place Directly Indirectly joint venture or associated enterprise Notes to holding proportion of joint venture or associated enterprise different from voting proportion: Basis of holding less than 20% of the voting rights but has a significant impact or holding 20% or more voting rights but does not have a significant impact: (2)Main financial information of Significant joint venture In RMB Amount of current period Amount of previous period Other notes (3) Main financial information of significant associated enterprise In RMB Amount of current period Amount of previous period Other notes (4) Summary financial information of insignificant joint venture or associated enterprise In RMB Amount of current period Amount of previous period Joint venture: -- -- The total number of the following -- -- Associated enterprise: -- -- The total number of the following -- -- Other notes In RMB (5) Note to the significant restrictions of the ability of joint venture or associated enterprise transfer funds to the Company (6) The excess loss of joint venture or associated enterprise In RMB The cumulative recognized The derecognized losses or the The noncumulative Name losses in previous share of net profit in reporting unrecognized losses in reporting accumulatively derecognied period period 139 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 Other notes (7) The unrecognized commitment related to joint venture investment (8) Contingent liabilities related to joint venture or associated enterprise investment 4. Significant common operation Main operating place Proportion/share portion Name Registration place Business nature Registration place Directly Indirectly Note to holding proportion or share portion in common operation different from voting proportion: Basis of common operation as a single entity, classify as common operation Other notes 5. Equity of structure entity not including in the scope of consolidated financial statements Related notes to structure entity not including in the scope of consolidated financial statements 6.Other X. The risk related financial instruments XI. The disclosure of the fair value 1. Closing fair value of assets and liabilities calculated by fair value In RMB Closing fair value Items Fir value measurement Fiar value measurement Fiar value measurement Total items at level 1 items at level 2 items at level 3 II. Consistent fair value -- -- -- -- II. Inconsistent fair -- -- -- -- valuemeasurement 2. Market price recognition basis for consistent and inconsistent fair value measurement items at level 1 3. Valuation technique adopted and nature and amount determination of important parameters for consistent and inconsistent fair value measurement items at level 2 4. Valuation technique adopted and nature and amount determination of important parameters for consistent and inconsistent fair value measurement items at level 3 5. Sensitiveness analysis on unobservable parameters and adjustment information between opening and closing book value of consistent fair value measurement items at level 3 6. Explain the reason for conversion and the policy governing when the conversion happens if conversion happens among consistent fair value measurement items at different levels 7. Changes in the valuation technique in the current period and the reason for change 8. Fair value of financial assets and liabilities not measured at fair value 9.Other XII. Related party and related party transactions 1. Parent company information of the enterprise Name Registered address Natrue Regisrated capital The parent company The parent company 140 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 of the Company's of the Company’s shareholding ratio vote ratio Notes The finial control of the company was: Other notes: 2. Subsidiaries of the Company Situation of the enterprise subsidiaries refer to the Notes. 3. Information on the joint ventures and associated enterprises of the Company The details of significant joint venture and associated enterprise of the Company Information on other joint venture and associated enterprise of occurring related party transactions with the Company in reporting period, or form balance due to related party transactions in previous period: ious period: Name Relationship Other notes 4.Other Related parties information of the enterprise Other Related parties name Relation of other Related parties with the company Other notes 5. Related transactions. (1)Related transactions on purchasing goods and receiving services Acquisition of goods and reception of labor service In RMB Content of related Amount of current Amount of previous Over the trading limit Related parties Amount of last period transaction or not? period period Related transactions on sale goods and receiving services In RMB Related parties Content of related transaction Amount of current period Amount of previous period Notes (2)Related trusteeship or contracting Related trusteeship or contracting in which the Company is the undertake In RMB Name of the Name of the Asset situation of Gains from the Start date Terminating date Pricing basis employer undertaker the undertaker deal in report 141 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 period Notes (3) Information of related lease The company eas lessor: In RMB The lease income confirmed in The lease income confirmed in Name of lessee Category of leased assets this year last year The Company was lessee: In RMB The lease income confirmed in Lessor Category of leased assets Category of leased assets this year Notes (4)Related guarantee condition The Company as a guarantor In RMB Guarantor Amount Starting date Stop date If completed or not The Company was secured party In RMB Have the Amount of the Starting date of Maturity date of guarantee Warrantor guarantee the guarantee the guarantee been performed? Chen Lve and Sino Great Wall Co., Ltd. 150,000,000.00 March 21, 2016 March 21, 2017 No Chen Lve, Sino Great Wall Co., Ltd. and He Feiyan 150,000,000.00 July 19, 2016 July 19, 2017 No September 28, Chen Lve and Sino Great Wall Co., Ltd. 130,000,000.00 October 28, 2016 2017 No Qinghai Heyi Mining Co., Ltd. March 10, 2016 March 9, 2017 No Chen Lve 500,000,000.00 March 10, 2016 March 9, 2017 No Chen Lve 12,000,000.00 January 13, 2016 January 13, 2018 No Chen Lve 12,000,000.00 March 29, 2016 March 29, 2018 No Chen Lve 12,000,000.00 March 27, 2016 March 27, 2018 No Chen Lve, Sino Great Wall Co., Ltd. and He Feiyan 140,000,000.00 July 12, 2016 July 12, 2017 No Beijing Zhongguancun Sci-tech Financing Guaranty Co., Ltd. And Chen Lve 230,000,000.00 February 22, 2016 March 22, 2018 No February 11, Chen Lve 11,000,000.00 February 11, 2015 2018 No Chen Lve 11,000,000.00 July 30, 2015 July 30, 2018 No 142 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 Have the Amount of the Starting date of Maturity date of guarantee Warrantor guarantee the guarantee the guarantee been performed? Sino Great Wall International Engineering Co., Ltd., Chen Lve and He Feiyan 257,140,000.00 August 25, 2016 August 25, 2017 No Sino Great Wall International Engineering Co., Ltd. and Chen Lve 200,000,000.00 January 21, 2016 January 20, 2017 No Chen Lve 50,000,000.00 July 29, 2016 January 28, 2017 No Sino Great Wall International Engineering Co., Ltd. and Chen Lve 200,000,000.00 June 21, 2016 June 20, 2017 No Sino Great Wall International Engineering Co., Ltd., Chen Lve and He Feiyan 100,000,000.00 August 22, 2016 August 22, 2017 No September 29, September 28, Chen Lve and He Feiyan 100,000,000.00 2016 2018 No Chen Lve 400,000,000.00 June 28, 2016 June 28, 2018 No Sino Great Wall International Engineering Co., Ltd., Chen Lve and He Feiyan 200,000,000.00 April 19, 2016 April 18, 2018 No December 15, Chen Lve 10,000,000.00 2016 June 14, 2017 No Sichuan Jinyu Financing Guaranty Co., February 16, Ltd., Ye Meifu and Yang Qiuhua 8,000,000.00 February 17, 2016 2017 No Sino Great Wall Co., Ltd. 400,000,000.00 June 28, 2016 June 27, 2017 No Sino Great Wall Co., Ltd. 180,000,000.00 January 3, 2017 January 2, 2018 No February 13, Sino Great Wall Co., Ltd. 100,000,000.00 April 29, 2016 2017 No Sino Great Wall International Engineering November 22, November 22, Co., Ltd. and Chen Lve 500,000,000.00 2016 2017 No Sino Great Wall International Engineering December 21, December 20, Co., Ltd., Chen Lve and He Feiyan 300,000,000.00 2016 2017 No December 20, December 19, Sino Great Wall Co., Ltd. 250,000,000.00 2016 2017 No Sino Great Wall Co., Ltd. 50,000,000.00 March 25, 2016 March 25, 2017 YES Sino Great Wall International Engineering February 28,, February 28, Co., Ltd., Chen Lve 70,000,000.00 2017 2018 No Sino Great Wall International Engineering Co., Ltd., Chen Lve 200,000,000.00 April 11,, 2017 March 31, 2018 No Sino Great Wall International Engineering Co., Ltd., Chen Lve 120,000,000.00 June 7, 2017 May 22, 2018 No Sino Great Wall International Engineering Suptember 30, Co., Ltd., Chen Lve 84,000,000.00 March 31, 2017 2019 No Sino Great Wall International Engineering Co., Ltd., Chen Lve 40,000,000.00 June 23, 2017 June 22, 2018 No Sino Great Wall International Engineering Co., Ltd., Chen Lve and He Feiyan 97,000,000.00 February 21,2017 Augest 22, 2017 No Sino Great Wall International Engineering Octomber 31, Octomber 31, Co., Ltd., Chen Lve and Li Erlong 200,000,000.00 2017 2018 No 143 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 Have the Amount of the Starting date of Maturity date of guarantee Warrantor guarantee the guarantee the guarantee been performed? Chen Lve, Sino Great Wall Co., Ltd. and Li Erlong 50,000,000.00 May 27, 2017 May 26, 2018 No Chen Lve, Sino Great Wall Co., Ltd. 80,000,000.00 April 17, 2017 April 17, 2018 No Chen Lve, Sino Great Wall Co., Ltd. and He Feiyan 300,000,000.00 May 10, 2017 May 10, 2020 No Chen Lve, Sino Great Wall Co., Ltd. and He Feiyan 200,000,000.00 January 13, 2017 January 12, 2018 No Chen Lve, Sino Great Wall Co., Ltd. and He Feiyan 300,000,000.00 January 13, 2017 January 12, 2018 No Chen Lve, Sino Great Wall Co., Ltd. and He Feiyan 100,000,000.00 June 28, 2017 June 27, 2018 No (5) Inter-bank lending of capital of related parties: In RMB Amount borrowed and Related party Initial date Due date Notes loaned Borrowed Loaned (6) Related party asset transfer and debt restructuring In RMB Related party Amount borrowed and loaned Amount of current period Amount of previous period (7) Rewards for the key management personnel In RMB Items Amount of current period Amount of previous period Rewards for the key management 911,750 885,300 personnel (8)Other related party transactions 6.Payables and receivables of the related party (1)Receivable In RMB Amount at year end Amount at year beginning Name Related party Balance of Book Bad debt Provision Balance of Book Bad debt Provision 144 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 (2)Payables In RMB 7. Related party commitment 8.Other XIII. Stock payment 1. The Stock payment overall situation □ Applicable √ Not applicable 2. The Stock payment settled by equity □ Applicable √ Not applicable 3. The Stock payment settled by cash □ Applicable √ Not applicable 4. Modification and termination of the stock payment 5.Other XIV. Commitments 1.Importance commitment events Important commitments of existence of balance sheet date 145 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 2. Contingency (1) Significant contingency at balance sheet date (2) The Company have no significant contingency to disclose, also should be stated There was no significant contingency in the Company. 3.Other XV. Events after balance sheet date 1. Significant events had not adjusted In RMB Influence number to the Reason of unable to estimate Items Content financial position and operating influence number results 2. Profit distribution 3. Sales return 4.Notes of ohter significant events XVI. Other signifiant enents 1.The accounting errors correction in previous period (1)Retrospective restatement In RMB Name of the influenced report Content Processing program Cumulative impact items during comparison period (2)Prospective application Content Processing program Reason of adopting prospective application 146 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 2. Debt restructuring 3. Replacement of assets (1)Non-monetary assets exchange (2)Other assets replacement 4. Pension plan 5.Discontinuing operation In RMB Termination of the business profits Items Income Expense Total profits Income tax Net profit attributable of the parent company owner Other notes 6. Segment information (1) Recognition basis and accounting policies of reportable segment (2) The financial information of reportable segment In RMB Items Offset during segments Total (3) There was no reportable segment, or the total amount of assets and liabilities of each part of reportable segment, shall disclose the reason. (4)Other notes 7. Other important transactions and events have an impact on investors’ decision-making 8.Other XVII. Notes s of main items in financial reports of parent company (1)Account receivable 1.Classification accojunt receivables. In RMB Amount in year-end Amount in year-beginning Classification Book Balance Bad debt provision Book Book Balance Bad debt provision Book value 147 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 Amount Proportio Amount Amount value Amount Proporti Amount Proportion( n(%) on(%) %) Account receivables provided bad debt 0.00 0.00 0.00 6,680.00 100.00% 334.00 5.00% 6,346.00 provision in credit risk groups Ttotal 0.00 0.00% 0.00 0.00% 6,680.00 100.00% 334.00 6,346.00 Receivable accounts with large amount individually and bad debt provisions were provided □Applicable √not Applicable Using age methods to provision for bad debts of account receivable in group: □Applicable √not Applicable Using percentage balance method of provision for bad debts of account receivable in group: □Applicable √not Applicable Using other methods to provision for bad debts of account receivable in group: (2) Accounts receivable withdraw, reversed or collected during the Reporting Period The withdrawal amount of the bad debt provision during the Reporting Period was of RMB0.00; the amount of the reversed or collected part during the Reporting Period was of RMB334.00. Significant amount of reversed or recovered bad debt profision: In RMB Name Amount Method Shenzhen Kwai Chung family building rent 334.00 Customer return Total 334.00 -- (3) Particulars of the actual verification of accounts receivable during the reporting period In RMB Items Amount Of which: significant actual verification of accounts receivable: In RMB Whether occurredc Name Nature Amount Reason Procedure bacause of related party transaction Notes: (4) Top five of account receivable of closing balance collected by arrears party (5) Derecogniziton of account receivable due to the transfer of financial assets 148 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 (6) The amount of the assets and liabilities formed by the transfer and the continues involvement of account receivable. Other notes: 2.Other receivable 1.Category of Other receivable In RMB Amount in year-end Amount in year-beginng Book Balance Bad debt provision Book Balance Bad debt provision Classification Book Amount Proportio Amount Proportio Amount Proportio Amount Proportion( Book value value n(%) n(%) n(%) %) Other account receivables 1,672,9 2,419,687,6 725,631. 2,418,962 782,721.3 1,672,200,0 provided bad debt 100.00% 0.03% 82,763. 100.00% 0.05% 43.19 46 ,011.73 1 41.98 provision in credit 29 risk groups 1,672,9 2,419,687,6 725,631. 2,418,962 782,721.3 1,672,200,0 Ttotal 100.00% 0.03% 82,763. 100.00% 0.05% 43.19 46 ,011.73 1 41.98 29 Other Receivable accounts with large amount individually and bad debt provisions were provided □Applicable √not Applicable Using age methods to provision for bad debts of account receivable in group: □Applicable √not Applicable Using percentage balance method of provision for bad debts of account receivable in group: □Applicable √not Applicable Using other methods to provision for bad debts of account receivable in group: □Applicable √not Applicable (2)Accrual period, recovery or reversal of bad debts situation The current amount of provision for bad debts is RMB 0.00; recovery or payback for bad debts Amount is RMB 5 7,089.85. Where the current bad debts back or recover significant amounts: In RMB Name Amount Method Xu Ce 55,450.12 Employee return loan Wang Lin 1,639.73 Employee return loan Total 57,089.85 -- 149 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 (3)Particulars of the actual verification of other accounts receivable during the reporting period. In RMB Items Amount Of which : Significant actual verification of other account receivable: In RMB Whether occurred Name Nature Amount Reason Procedure because of related party transactions Notes: (4)Other account receivable classified by account nature In RMB Nature Closing book value Opening book value Current account 2,333,637,893.28 1,657,328,337.13 Petty cash 5,667,408.88 1,272,085.13 Deposit 80,382,341.03 14,382,341.03 Other Total 2,419,687,643.19 1,672,982,763.29 (5) The top five other account receivable classified by debtor at period end In RMB Name Nature Closing balance Aging Proportion % Sino Great Wall Account current 2,163,019,166.37 Within 1 year 89.50% International Engineering Co., Ltd., Wuhan Commercial and Vocational Account current 107,800,000.00 1-2 years 4.46% Hospital Co.,Ltd, Fuping hi tech Industrial Within 1 year Development Zone Deposit 50,000,000.00 2.07% Management Committee Beijing Hongda Within 1 year Construction Service Account current 45,000,000.00 1.86% Co., Ltd. Zhongshan Within 1 year Economic Development Deposit 10,000,000.00 0.41% Zone Finance Bureau 150 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 Total -- 2,375,819,166.37 -- 98.31% (6) Accounts receivable involved with government subsidies In RMB Estimated received time, Name of units Project of government Closing balance Closing age amount and basis (7) Other account receivable which terminate the recognition owning to the transfer of the financial assets (8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other accounts receivable Other Notes: 3.Long-term equity investment In RMB Year-end balance Year-beginning balance Items Bad debt Bad debt Book balance Book value Book balance Book value provision provision Investment to the 3,181,451,536.66 0.00 3,181,451,536.66 3,176,451,536.66 0.00 3,176,451,536.66 subsidiary Total 3,181,451,536.66 3,181,451,536.66 3,176,451,536.66 3,176,451,536.66 (1)Investment to the subsidiary In RMB Withdrawn Closing balance impairment Name Opening balance Increase Decrease Closing balance of impairment provision in the provision reporting period Sino Great Wall International 3,079,451,536.66 0.00 0.00 3,079,451,536.66 0.00 0.00 Engineering Co., Ltd., Wuhan Commerci al and Vocational 97,000,000.00 0.00 0.00 97,000,000.00 0.00 0.00 Hospital Co.,Ltd, Sino Great Wall Medical Investment 0.00 5,000,000.00 0.00 5,000,000.00 0.00 0.00 Management Co., Ltd. 151 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 Total 3,176,451,536.66 5,000,000.00 0.00 3,181,451,536.66 0.00 (2)Investment to joint ventures and associated enterprises In RMB Increase /decrease in reporting period Closing Adjustme Withdraw balance Decrease Gain/loss nt of Declarati Opening Add Other n Closing of Name d of other on of cash balance investmen equity impairme Other balance impairme investmen Investme comprehe dividends t changes nt nt t nt nsive or profit provision provision income I. Joint ventures II. Associated enterprises (3)Other notes 4.Business income and Business cost In RMB Items Amount of current period Amount of previous period Business income Business cost Business income Business cost Main operations 0.00 0.00 Other operations 111,018.01 1,482.50 115,940.34 0.00 Total 111,018.01 1,482.50 115,940.34 0.00 Other notes: 5.Investment income In RMB Items Amount of current period Amount of previous period 152 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 6.Other XVIII. Supplementary Information 1.Current non-recurring gains/losses √ Applicable □Not applicable In RMB Items Amount Notes Government grants included in current profits and losses (except for government grants closely related to the enterprise 60,363.52 business, obtained by quota or quantity at unified state standards) Other non-operating income and expenditure 4,291,138.93 except for the above items Less: Influenced amount of income tax 647,888.58 Total 3,703,613.87 -- For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on information disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses and its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as recurring gains and losses, it is necessary to explain the reason. □ Applicable √ Not applicable 2 Return on net assets and earnings per share Earnings per share Return on net assets . Profit of the report period Weighted(%) Basic earnings per share Diluted gains per share Net profit attributable to the Common stock 14.39% 0.16 0.16 shareholders of Company. Net profit attributable to the Common stock shareholders of Company after deducting of 14.19% 0.16 0.16 non-recurring gain/loss. 3. Differences between accounting data under domestic and overseas accounting standards (1) Differences of net profit and net assets disclosed in financial reports prepared under international and Chinese accounting standards □ Applicable √Not applicable (2) Differences between the net profit and net asset in the financial reports prepared under IAS and Chinese 153 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 Accounting Standard □ Applicable √Not applicable (3) Explain reasons for the differences between accounting data under domestic and overseas accounting standards, for audit data adjusting differences had been foreign audited, should indicate the name of the foreign institutions 4.Other 154 Sino Great Wall Co., Ltd. The Semi-annual Report 2017 X. Documents available for inspection 1. Text of financial statement with signature and seals of legal person, person in charge of accounting works and person in charge of accounting institution. 2. Original and official copies of all documents which have been disclosed on Securities Times and Hong Kong Commercial Daily in the report period. English translation for reference Only Should there be any discrepancy between the two versions, the Chinese version shall prevail. Legal representative: Chen Lue Sino Great Wall Co., Ltd. August 12, 2017 155