Sino Great Wall Co., Ltd. Summary of 2017 Annual Report
Stock code: 000018 ，200018 Stock ID : Sino Great Wall ，Sino-B Announcement No. 2018-061
Summary of 2017 Annual Report of Sino Great Wall Co., Ltd.
1. Important notes
The summary is abstract from full-text of annual report, for more details information , investors should found in
the full-text of annual report that published on website of Shenzhen Stock Exchange and other website appointed
by CSRC.
All the directors attended the board meeting for reviewing the Annual Report.
Non-standard auditor’s opinion
□ Applicable √Not applicable
Preliminary plan for profit distribution to the common shareholders or turning the capital reserve into the share
capital for the reporting period, which has been reviewed and approved at the board meeting
√Applicable □Not applicable
Conversion of capital reserves into share capital
□Yes √No
The profit distribution proposal reviewed and approved by the boarding meeting was summarized as follows:
1,698,245,011 for the base, the Company would distribute cash dividend to all the shareholders at the rate of
CNY0.40 for every 10 shares (with tax inclusive) , 0 bonus shares（including tax）, and not converting capital
reserve into share capital.
Plans for profit distribution on preference shares for the reporting period approved by the Board
□ Applicable √Not applicable
II. Basic information about the company
1. Company profile
Stock ID Sino Great Wall ，Sino-B Stock code: 000018 200018
Stock Exchange Listed in Shenzhen Stock Exchange
Contact person and contact manner Board secretary Securities affairs Representative
Name Yang Chunling Ma Qin
Sino Great Wall Building, No.3 Jinxiu Street, Sino Great Wall Building, No.3 Jinxiu Street,
Contact address Economic Technology Development Zone , Economic Technology Development Zone ,
Beijing Beijing
Fax 010-89045856 010-89045856
Tel 010-89045855 010-89045855
Email. 1208806865@qq.com 000018sz@sina.com
2. Brief introduction to the main business or products in the reporting period
Within the report period, the core business of Sino Great Wall is the engineering construction and medical
treatment and health industry investment and management. The engineering construction mainly includes the
international EPC and domestic PPP business. The medical treatment and health industry investment and
management mainly comprises the hospitals and medical treatment operation management through engagement in
the industry through several ways including acquisition of existing hospitals, construction of new hospitals as well
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Sino Great Wall Co., Ltd. Summary of 2017 Annual Report
as building and investing the hospital PPP project, etc. At present, the company business covers the house
building, roads and bridges, power and chemical industry as well as medical treatment and health, etc. among
many countries and regions in Southeast Asia, the Middle East, South Asia and Africa, etc.
The company mainly engages in the foreign engineering construction through EPC, namely contracting the
whole process or several phases among the construction project design, purchase, construction and trail operation,
etc. through integrating the high-quality resources at home and abroad. For the domestic engineering construction,
the company mainly adopts PPP mode, namely the project operation mode through cooperation of the
governmental and social capital. Under such mode, the government will select the social capital with the
investment and operation management capacity through the competitive ways and both parties shall enter into the
contract subject to the equality-based consultation principle, under which, the social capital shall provide public
services and the government shall pay the consideration against the social capital based on the public service
achievement assessment result.
The Company business includes the project development, financing, design, procurement and construction,
etc. and it will also participate in investment in and provision of operation services for high-quality projects with
good development prospect.
At present, the company has building construction qualifications including: general contracting for
construction project construction, professional contractor for building decoration engineering design and
construction, professional contractor for mechanical and electrical equipment installation engineering,
professional contractor for building curtain wall engineering, and foundation engineering Contractor-level
contractor, fire-fighting facilities engineering contractor-level contractor, waterproof anti-corrosion-insulation
engineering contractor-level professional contractor, mechanical and electrical engineering construction
contractor-level contractor, bridge engineering contractor-level contractor, petrochemical engineering construction
contractor-class, municipal utility construction total Contractor for Grade A, Class A for Contractors for Tunnel
Engineering, Grade A Contractors for Construction and Installation of Hydraulic Metal Structures, Grade I of
General Contractors for Water Conservancy and Hydropower Projects, Grade A for General Contractors for
Railway Construction, Grade A for General Contractors for Metallurgical Engineering, and Special The
professional engineering contractor has no grade, construction contract qualification for highway pavement
engineering, and construction contract qualification for highway subgrade engineering. The scope of the project
can cover construction and construction qualifications in various categories such as construction, roads, railways,
municipal utilities, water conservancy and hydropower, petrochemicals, and electricity.
3. Major accounting data and financial indicators
（1）Major accounting data and financial indicators for the last three years
May the Company make retroactive adjustment or restatement of the accounting data of the previous years
□Yes √No
\
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Sino Great Wall Co., Ltd. Summary of 2017 Annual Report
In RMB
2017 2016 Changed over last year 2015
Operating Gross income（Yuan） 6,497,124,980.52 4,664,999,117.17 39.27% 4,010,358,999.58
Net profit attributable to the
shareholders of the listed company 380,090,990.82 473,661,862.67 -19.75% 346,648,651.48
（Yuan）
Net profit after deducting of
non-recurring gain/loss attributable 377,087,197.69
470,274,602.37 -19.82% 347,196,614.68
to the shareholders of listed
company（Yuan ）
Cash flow generated by business -1,781,868,618.65
-1,687,875,813.94 -5.57% -292,051,257.08
operation, net（Yuan）
Basic earning per
0.28 -20.07% 0.40
share(Yuan/Share) 0.22
Diluted gains per
0.28 -20.07% 0.40
share(Yuan/Share)(Yuan/Share) 0.22
Net asset earning ratio（%） 19.35% 31.18% -11.83% 34.52%
End of Changed over last year
End of 2017 End of 2015
2016 （％）
Gross assets 11,653,249,290.29 7,986,178,961.63 45.92% 4,017,462,824.63
Net assets attributable to
2,151,482,467.52 1,777,948,117.49 21.01% 1,282,256,738.74
shareholders of the listed company
(2)Main Financial Index by Quarters
In RMB
First quarter Second quarter Third quarter Fourth quarter
Operating income 1,059,865,573.83 1,965,216,782.97 1,660,125,169.52 1,811,917,454.20
Net profit attributable to the 99,029,586.64 169,576,863.39 141,854,355.89 -30,369,815.10
shareholders of the listed company
Net profit after deducting of 99,029,586.64 165,873,249.52 141,971,594.58 -29,499,781.40
non-recurring gain/loss attributable
to the shareholders of listed
company
Net Cash flow generated by -447,147,216.26 -88,850,363.93 -249,446,741.97 -1,001,355,399.29
business operation
Whether significant variances exist between the above financial index or the index with its sum and the financial
index of the quarterly report as well as semi-annual report index disclosed by the Company.
□ Yes √No
4.Share capital and shareholders
（1）Number of holders of ordinary shares and preference shares with restored voting right and Top 10
shareholders
In shares
Total
Total number Total
of common shareholders at The total number
preferred sharehold
shareholders at the end of the of preferred shar
ers at the end of the
the end of the 67,510 67,825 eholders voting ri 0 0
month from the month from the date
ghts restored at p
reporting of disclosing the
date of disclosing eriod-end
period annual report
the annual report
Shareholdings of Top 10 shareholders
Shareholders Nature of Proportion of Number of Amount of restricted shares held Number or share
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Sino Great Wall Co., Ltd. Summary of 2017 Annual Report
shareholder shares held（%） shares held pledged/frozen
at period
-end State of share Amount
Domestic
Chen Lue Natural 34.36% 583,454,556 581,722,696 Pledge 473,260,594
person
STYLE-SUCC Foreign
5.47% 92,970,910 0
ESS LIMITED legal person
Domestic
Union Holdings Non-
5.18% 87,935,921 0
Co., Ltd. State-owned
legal person
Domestic
He Feiyan Natural 3.23% 54,800,458 54,800,458
person
Jiutai Fund－
Bank of
Communication
s－Jiutai
Huitong No.2 Other 2.50% 42,479,672 42,479,672
specific
customer asset
management
plan
Bohai
International
Trust Co., Ltd.
－Bohai
Other 1.71% 29,104,000 0
Trust250
Henglifeng
Single fund
trust
China
International
Other 1.70% 28,822,543 0
Finance Co.,
Ltd.
Rich Crown
Foreign
Investment Co., 1.37% 23,235,313 0
legal person
Ltd.
Bank of China
－Fortis Income
Growth
Other 0.87% 14,731,783 0
Securities
Investment
Fund
Qinghai Heyi Domestic
Industry Non-
0.79% 13,357,084 0 Pledge 13,357,000
Development State-owned
Co., Ltd. legal person
The largest shareholder of Mr. Chen Lue and the Fourth largest shareholder of Ms. He Feiyan
Explanation on associated aforesaid are persons acting in concert. The controlling shareholder of the above-mentioned third
relationship among the shareholder Shenzhen Union Holdings Co., Ltd. And Eighth shareholder Rich Crown Investment
aforesaid shareholders Co., Ltd.. Is Union Development Group Ltd. whether the other shareholders have associated
relations are unknown.
Notes to the shareholders
involved in financing Nil
securities (if any
(2)Total preference shareholders and the shares held by the Top 10 Preference shareholders
□ Applicable □ Not applicable
Nil
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Sino Great Wall Co., Ltd. Summary of 2017 Annual Report
(3)Block diagram of the ownership and control relations between the Company and the actual controller
5. Corporation bonds
Whether the company has corporate bonds that have been publicly issued and listed on the stock exchange, and
not yet due or due but not folly cashed on the approval date of annual report
No
III. Discussion and Analysis of the Management
1. Business Operation summary in the reporting period
Whether the company needs to comply with the disclosure requirements of the particular industry
Yes
Civil Engineering Construction
2017 was the year when the party’s 19th National Congress was convened sucessfully. It was also a year of
steady development of the company. In 2017, driven by the recovery of investment, the recovery of
manufacturing, and the steady growth of global trade, the world’s major economies have shown signs of recovery
and the global economy has achieved a recovery growth. In 2017, China continued to deepen structural reforms
on the supply side, promoted industrial transformation and upgrading, and continued the release of economic
vitality, momentum, and potential. The stability, coordination, and sustainability were significantly enhanced. The
GDP growth was 6.9%, and the national economy achieved a steady and healthy development.
In 2017, the company continued to uphold the values of “honesty, dedication, perfection, and honor”, paid
close attention to “the Belt and Road”, PPP business, and building medical industry policies and related
developments, complied with the economic development situation, grasped good historical development
opportunities, innovated business models, promoted the stable development of project contracting business,
continuously improved the company's competitive advantage and overall profitability, achieved a sound
development of various businesses, and maintained a rapid growth situation in its operating performance.
In terms of engineering construction, the company's business at home and abroad has achieved relatively
good and rapid development. In terms of domestic business, as the country's support for PPP business has
increased, the company's PPP business has continued to develop, and the domestic market area has expanded
continuously, involving many provinces and regions such as Henan, Jiangxi, Guizhou, Guangdong, Hunan,
Sichuan and Shaanxi. The contracting industry has continued to expand, covering medical, municipal,
transportation, infrastructure and many other fields. In terms of foreign business, the company signed the
"Strategic Cooperation Framework Agreement" with China Nuclear Industry No.2 Construction Co., Ltd. and
jointly undertake related projects overseas; signed the Memorandum of Understanding on the Construction of the
Cambodian Railway Network with the Cambodian Royal Enterprise Group and the China Railway No. 17 Bureau
Group Co., Ltd., which is conducive to the expansion of the scope of the company’s engineering contracting in
Cambodia; signed the Agreement on Shareholders Cooperation for the Construction of a refinery plant with a
daily processing capacity of 300,000 barrels in Dumcom Special Economic Zone of the Sultanate of Oman with
Shamrock Investment Services Co., Ltd. and Al Bashir Investment Co., Ltd. to jointly build, own and operate the
project of “refinery plant with a daily processing capacity of 300,000 barrels in Dumcom Special Economic Zone”.
At the same time, the company has signed major construction contracts with many countries and regions in
Southeast Asia and South Asia.
As of the end of 2017, the company's domestic and international orders amounted to more than 35 billion ,
which ensured a steady growth of the company's operating performance in the coming years.
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Sino Great Wall Co., Ltd. Summary of 2017 Annual Report
In the aspect of medical and health industry investment and management, in 2017 the company won the bid
for the construction of the new hospital of the Second People's Hospital of Anyang, the construction of the PPP
project for the rehabilitation center, the PPP project for the overall relocation and construction of Wuchuan City
Hospital of Traditional Chinese Medicine, the PPP project at Sichuan Qi County Hospital of Traditional Chinese
Medicine, and the PPP project for the relocation of Wuchuan City People's Hospital. The signing and
implementation of the above projects have provided strong support for the company's future growth. In December
2017, the company and Hunan University of Traditional Chinese Medicine signed the "Comprehensive
Framework Cooperation Agreement of Yuelu International Hospital which Affiliated to Hunan University of
Traditional Chinese Medicine" to speed up the improvement of the company's medical and health industry layout
and expand the company's services in the medical and health industry. During the reporting period, the company
acquired 100% of the shares of Baden-Baden Hospital in Germany by EUR 14.1 million. Baden-Baden Hospital is
a German historic hospital with a long history. It has a high reputation in medical rehabilitation. The acquisition of
the hospital is conducive to introduce Germany's advanced medical personnel, technology and management
experience, integrate the Chinese and foreign resources, and realize the company's layout in the field of medical
rehabilitation.
In other respects, the company actively responded to the national call to establish Xiong'an New District. In
order to support the construction of Xiong'an New District and strengthen the company's business development
and project implementation in Xiong'an New District, the company plans to relocate the registered address of the
subordinate architectural construction companies, such as Sino Great Wall International Engineering Co., Ltd. and
Sino Great Wall Southwest Construction Engineering Co., Ltd., to Xiong'an New District. The relocation will help
the company to develop the business in the region. On February 24, 2018, the company’s subsidiary, Sino Great
Wall Hebei Xiong'an Engineering Co., Ltd. (hereinafter referred to as Xiong'an Company) was formally
established and obtained a business license. In order to better conduct business in Xiong'an New District, the
company leased an office in the new district in 2017, and plans to arrange a subsidiary company with related
building qualifications to merge with Xiong'an Company to enable the Company to quickly obtain construction
qualifications and quickly obtain orders.
According to the Guidelines for the Development of Assembled Buildings by the General Office of the State
Council, and in light of the actual situation of the company, in June 2017, the company established the Great Wall
Smart House Industry (Zhanjiang) Co., Ltd., to carry out the construction of assembly-type smart house research
and development center and production base, and accelerate the pace of entering the field of assembled smart
house construction, and seek new profit growth points for the company. Through the implementation of the
housing industrialization base construction project, the company will build production lines of deep processing of
steel components with an annual output of 300,000 tons and deep processing of aerated concrete sheet with an
annual output of 300,000 cubic meters to realize the modular production of residential construction materials. In
the process of building construction, by assembling of modular materials directly on site can increase construction
speed, reduce construction costs, realize green buildings and effectively improve construction efficiency.
In terms of talent introduction, the company has upgraded from a traditional subcontracting company for
decoration, electromechanical, curtain wall, etc., to a general contractor and an EPC company to undertake a
general contractor engineering company; it has gone abroad from domestic building construction, and has taken
on the foreign countries along the “One Belt and One Road” initiative. Contracted projects; extending from the
construction area to the upstream, investing in construction projects through equity participation, and entering the
medical and health industry from the traditional construction industry across industries. The business development
and transformation in recent years has led to the company's large demand for high-end management talents and
comprehensive composite talents. The company introduced senior management personnel from the top level of
the company's structure to enrich the professional composition of the company's management and improve the
management structure of the company's management. In 2017, the board of directors of the company newly hired
high-end talents such as general manager, deputy general manager, chief financial officer, and deputy general
manager. At the same time, a large number of foreign-funded business management, operations, and other
management personnel have been introduced, and a large number of public hospital administrators, foreign
medical experts and other medical management, high-tech talent have been introduced. Through the introduction
of a large number of high-end talents, the company has improved its management, operation level and risk
prevention
In 2017, the company realized operation income of RMB 6.497 billion, an increase of 39.27% from the last
year; realized the operating profits of RMB 508 million, a decrease of 8.65% from the last year; and the net profit
attributable to the parent company was RMB 380 million, a decrease of 19.75% from the last year.
2. Material change in principal activities during the reporting period
□ Yes √No
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Sino Great Wall Co., Ltd. Summary of 2017 Annual Report
3. Products accounting for over 10% of revenue or profit from principal activities of the Company
√ Applicable □ Not applicable
In RMB
Increase/decrease Increase/decrease Increase/decrease
of revenue in the of business cost of gross profit
Gross profit
Name Turnover Operation cost same period of over the same rate over the same
rate(%)
the previous period of period of the
year(%) previous year (%) previous year (%)
EPC
4,268,109,664.43 3,029,618,055.12 29.02% 36.87% 38.92% -3.50%
Decoration work
2,015,057,491.48 1,678,668,151.76 16.69% 38.76% 38.13% 2.35%
4. Seasonal or cyclical operations requiring special attention
□ Yes √No
5. Material difference of revenue, operating costs or net profit attributable to holders of ordinary shares of the
Company for the reporting period from the last reporting period
□ Applicable √Not applicable
6. Suspension in trading or delisting
□ Applicable √Not applicable
7. Events relating to the financial report
(1) Reason for changes in accounting policies, accounting estimates and accounting methods as compared to the
financial report for the prior year
√ Applicable □ Not applicable
In 2017, the company has changed the original accounting policy according to the Accounting Standards No.
forty-second issued by the Ministry of Finance - non - mobile assets, disposal groups and termination of operation,
the accounting standards for enterprise sixteenth - government subsidy and the Ministry of Finance on revising
and Issuing the format of the general enterprise financial statements.
(2) Reason for retrospective restatement to correct major accounting errors during the reporting period
□ Applicable √ Not applicable
Nil
(3) Reason for changes in scope of the consolidated financial statements as compared to the financial report for
the prior year
√ Applicable □Not applicable
During the reporting period, the changes in the scope of the consolidated statements are detailed in the notes to the
financial statements.
Chairman of the board :Chen Lue
Sino Great Wall Co., Ltd.
April 24,2018
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