Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Sino Great Wall Co., Ltd.
The Semi-annual Report 2019
August 2019
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Sino Great Wall Co., Ltd. The Semi-annual Report 2019
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, Ms.Yang Chunling, Person in charge of accounting and the Ms. Chang
Chunling, 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.
Any plans for the future and other forward-looking statements mentioned in this Report shall Not be considered as
absolute promises of the Company to investors. Therefore, investors are kindly reminded to pay attention to
possible investment risks.
Details of the risk factors and countermeasures of future development have been well-described in this report,
please find in Section IV(10) Performance Discussion and Analysis. investors are kindly reminded to pay attention
to possible investment risks.
The Company has no plan of cash dividends carried out, bonus issued and capitalizing of common reserves either.
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Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Table of Contents
Semi-Annual Report 2019
I.Important Notice and Definitions
II. Corporate Profile and Key Financial Indicators
III. Business Profile
IV Performance Discussion and Analys is
V Important Events
VI. Change of share capital and shareholding of Principal Shareholders
VII. Situation of the Preferred Shares
VIII. Information about Directors, Supervisors and Senior Executives
IX. Corporate Bonds
X. Financial Report
XI. Documents available for inspection
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Sino Great Wall Co., Ltd. The Semi-annual Report 2019
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.
SZSE Refers to Shenzhen Stock Exchange
SSRB Refers to Shenzhen Securities Regulatory Bureau
Reporting period Refers to January 1,2019 to June 30,2019
Wuhan Commercial worker Hospital Refers to Wuhan Commercial worker Hospital Co., Ltd.
Union Holdings Refers to Union Holdings Co., Ltd.
Rich Crown Investment Refers to Rich Crown Investment Co., Ltd.
Baden-Baden Hospital Refers to Acura Kliniken Baden-Baden GmbH
Bihui Road & Bridge Refers to Xian Bihui Road & Bridge Engineering Co., Ltd.
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Sino Great Wall Co., Ltd. The Semi-annual Report 2019
II. Corporate Profile and Key Financial Indicators
I．Company Information
Stock abbreviation *STSino Great Wall，*ST 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
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 Sun Yu
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
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 2018 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 2018 Annual Report.
IV. Summary of Accounting Data and Financial Indicators
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Sino Great Wall Co., Ltd. The Semi-annual Report 2019
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（RM B） 256,367,221.67 1,586,971,575.24 -83.85%
Net profit attributable to the shareholders
-1,416,774,391.50 143,999,455.72 -1,083.87%
of the listed company（RMB）
Net profit after deducting of
non-recurring gain/loss attributable to
-951,716,601.10 -33,506,685.35 2,740.38%
the shareholders of listed company
（RM B）
Cash flow generated by business
-422,152,026.80 1,098,164,365.63 -138.44%
operation, net（RM B）
Basic earning per share(RM B/Share) -0.8343 0.0848 -1,083.84%
Diluted gains per
-0.8343 0.0848 -1,083.84%
share(RM B/Share)(RM B/Share)
Weighted average ROE(%) -298.54% 6.61% -305.15%
As at the end of the
As at the end of last year YoY+/-（%）
reporting period
Gross assets (RM B) 7,971,610,486.31 9,603,455,934.89 -16.99%
Shareholders’ equity attributable to
shareholders of the listed company -1,184,353,287.94 235,202,473.51 -603.55%
（RM B）
V.The differences between domestic and international accounting standards
1．Simultaneously pursuant to both Chinese accounting standards and international accounting standards disclosed
in the financial reports of differences in net income and net assets.
□ Applicable□√ Not applicable
Nil
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese
accounting standards.
□ Applicable √Not applicable
Nil
VI.Items and amount of non-current gains and losses
√Applicable □Not applicable
In RM B
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Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Items Amount Notes
Non-current asset disposal gain/loss(including the write-off part
54,651.22
for which assets impairment provision is made)
Net amount of non-operating income and expense except the
-465,112,441.62
aforesaid items
Total -465,057,790.40 --
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/items as defined by the information
disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period.
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Sino Great Wall Co., Ltd. The Semi-annual Report 2019
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
During the reporting period, the company's core businesses were engineering construction and the investment and
management of medical and health industries. The construction of the project is mainly international general
contracting (EPC) business and domestic professional projects. The investment and management of medical and
health industry are mainly medical engineering, hospital investment and old-age care industry investment. At
present, the company's business scope has spread to major cities in China and many countries and regions such as
Southeast Asia, Middle East, South Asia and Africa.
The main mode of the company's foreign engineering construction is EPC general contracting, that is, through the
integration of domestic and foreign high-quality resources, the whole process or several stages of contracting are
implemented for the design, procurement, construction and trial operation of construction projects.
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.
Ⅱ.Major Changes in Main Assets Major Changes in Main Assets
1. Major Changes in Main Assets
M ain assets M ajor changes
Equity assets No significant change
Fixed assets No significant change
Intangible assets No significant change
Construction in process No significant change
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 is a leading construction & engineering contractor in China with business covers various types
construction & engineering contracting. With leading projects such as PM, EPC, BT, BO and PPP, etc., The
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Sino Great Wall Co., Ltd. The Semi-annual Report 2019
promotion of the national "the belt and road initiative" strategy has provided a good opportunity for the company's
overseas business development. The company has continuously increased its efforts to develop overseas markets.
Orders and revenues for overseas projects have maintained a fast growth rate every year; After improving relevant
construction qualifications, domestic businesses will also embrace better development opportunities as the
national PPP project continues to advance. The company's comprehensive strength, overseas influenc e and market
competitiveness will increase 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 2016, 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
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 c ompany
has purchased Wuhan Commercial Worker Hospital and won the bids of many medical PPP project. 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 improvesits 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
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Sino Great Wall Co., Ltd. The Semi-annual Report 2019
engineering construction. Upon the deep understanding of the industry, the company establisheda 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.
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Sino Great Wall Co., Ltd. The Semi-annual Report 2019
IV. Performance Discussion and Analysis
Ⅰ.General
In the first half of 2019, due to the escalation of trade tensions and the tightening of credit in major economies, the
differentiation of major economies in the world has intensified and uncertainty has increased. The world economic
situation is facing downward risks. China's overall economic operation is within a reasonable range, continuing
the overall steady and steady development trend. Although the company is still affected by last year's national
capital management policy and the different degrees of loan collection by financial institutions such as loan
withdrawal and loan interruption, the company's operating capital is with difficulty in liquidity, which has
triggered a series of chain reactions of operating difficulties. The company's operating income has been greatly
reduced. The company has overcome many difficulties and actively responded to them. During the reporting
period, the company actively solved the problem of back pay for some employees and increased the dunning
effort for accounts receivable, for which the initial results have been achieved currently. In the first half of 2019,
the company realized operating income of 256 million yuan, with a year-on-year decrease of 83.85%; Operating
profit was -951 million yuan, with a year-on-year decrease of 5583.63%; Net profit attributable to the parent
company was -1.417 billion yuan, with a year-on-year decrease of 1083.87%.
In terms of engineering construction, the company overcame difficulties and obstacles, rooted in the existing
business area and scale, and continued to steadily expand its business. During the reporting per iod, the company
faced difficulties both domestically and abroad. In terms of foreign business, the company continues to maintain
the normal operation of existing projects in Cambodia, Russia, Malaysia and Algeria. It actively promotes the
settlement, litigation, accounts receivable recovery and activation of shutdown projects. Meanwhile, it is expected
to sign a high-value business contract in 2019 by making use of the good relationship of existing major customers
and tracking the target projects in Southeast Asia. In terms of domestic business, the first and second phases of the
"Qinyuanli" real estate project in Chengdu, with a total construction area of about 200,000 square meters, have
been capped. The Xiangfu District Hospital of Traditional Chinese Medicine in Kaifeng City, Henan Province and
the Anyang Second People's Hospital are under active construction. Other large health projects such as medical
care and old-age care are also being promoted.
The medical and health industry is an important pillar in the company's transformation and development strategy,
and the company focuses on developing its own building capacity and brand in medical engineering construction.
Through cooperation with relevant professional organizations, proton hospital projects will be actively promoted
to be implemented, the scientific and technological content of the company's medical and health sector will be
elevated, and the profitability of the medical and health business will be improved.
In smart housing sector, it will locate the trend and accurately position it, and comprehensively push forward the
implementation of strategic development goals. In recent years, the Chinese government has successively issued
relevant policies to vigorously promote the transformation of the construction industry to construction
industrialization. The company's "Sino Great Wall Smart Housing Co., Ltd." set up in Zhanjiang, Guangdong,
produces fabricated supporting products. During the reporting period, due to the financial environment, the
production line has not yet been established and put into operation. Meanwhile, the company promoted the rural
assembly business and made a preliminary layout in key regions of the country.
Faced with the financial difficulties, the company has made concerted efforts from top to bottom to conquer the
difficulties. It has successively carried out a series of reforms and innovations in enterprise management mode,
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Sino Great Wall Co., Ltd. The Semi-annual Report 2019
timely investigated and re-elected board members, integrated the senior management team, re-organized the
business sectors, defined the responsibility assessment, strengthened the asset preservation, comprehensively
optimized control and other measures to effectively stimulate enterprise development potential in adversity.
Ⅱ.Main business analysis
Refer to relevant contents of “1.Summarization” in “Discussion and Analysis of Management”.
Changes in the financial data
In RM B
Same period of last
Reporting period YoY+/-（%） Reason for change
year
Operating revenues 256,367,221.67 1,586,971,575.24 -83.85%
Operating costs 227,646,036.24 1,312,212,102.46 -82.65%
Selling expense 14,477,142.76 16,521,622.08 -12.37%
Administrative
87,163,665.56 127,907,861.56 -31.85%
expense
Financial cost 325,054,182.14 145,939,925.19 122.73%
Income taxes 950,360.90 18,790,236.79 -94.94%
Net cash generate by
-422,152,026.80 1,098,164,365.63 -138.44%
operating activities
Net cash generated by
-201,491,732.24 -100.00%
investing activities
Net cash generated by
356,304,797.30 -1,281,374,118.34 -127.81%
financing activities
Net increase in cash
-66,246,078.33 -389,203,669.48 -82.98%
and cash equivalents
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。
Main business composition
In RM B
Increase/decrea
Increase/decrea
Increase/decrea se of principal
se of gross
se of reverse in business cost
Operating Gross profit profit rate over
operating costs the same period over the same
revenue rate(%) the same period
of the previous period of
of the previous
year(%) previous year
year (%)
(%)
On Industry
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Sino Great Wall Co., Ltd. The Semi-annual Report 2019
EPC 202,439,147.55 171,982,276.99 15.04% -84.15% -83.76% -2.05%
Decoration
53,928,074.12 55,663,759.25 -3.22% -82.60% -78.04% -21.44%
work
On Product
EPC 202,439,147.55 171,982,276.99 15.04% -84.15% -83.76% -2.05%
Decoration
53,928,074.12 55,663,759.25 -3.22% -82.60% -78.04% -21.44%
work
On Area
Domestic 256,367,221.67 227,646,036.24 11.20% -71.89% -72.32% 1.37%
Overseas -100.00% -100.00% -27.43%
III.Non-core business analysis
□ Applicable √Not applicable
IV.Analysis of assets and liabilities
1.Significant changes in asset composition
In RM B
End of Reporting period End of same period of last year
Change in Reason for
As a percentage As a percentage
percentage( significant
Amount of total Amount of total
%) change
assets(%) assets(%)
M onetary funds 161,407,308.22 2.02% 1,374,597,109.50 12.47% -10.45%
Account
3,268,131,916.96 41.00% 5,031,464,951.12 45.63% -4.63%
receivable
Inventory 997,074,459.45 12.51% 745,455,718.17 6.76% 5.75%
Long-term
Equity 106,837,810.83 1.34% 0.00% 1.34%
Investment
Fixed assets 139,240,017.20 1.75% 331,425,276.47 3.01% -1.26%
Construction in
36,805,894.03 0.46% 707,700.59 0.01% 0.45%
process
Short-term
3,306,944,094.49 41.48% 2,798,513,481.24 25.38% 16.10%
loans
Long-term
120,000,000.00 1.51% 873,089,164.49 7.92% -6.41%
loans
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Sino Great Wall Co., Ltd. The Semi-annual Report 2019
2.Asset and Liabilities Measured by Fair Value
□ Applicable √ Not applicable
3. Restricted asset rights as of end of the reporting period
Items Year-end book value Reason
M onetary funds 101,885,589.67 M argin and frozen funds
Fixed asset 13,740,651.43 Financial lease assets
Total 115,626,241.10 --
Ⅴ.Investment situation
1. General
√ Applicable □ Not applicable
Investments made in same period of last
Investments made in the reporting period +/- %
year
0.00 16,000,000.00 -100.00%
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
The Company had no securities investment in the reporting period.
（2）Investment in Derivatives
□ Applicable √ Not applicable
The Company had no investment in derivatives in the reporting period.
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Sino Great Wall Co., Ltd. The Semi-annual Report 2019
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 influenc ing to the Company
In RM B
Company Company M ain business Registere Total Operating
Net assets Turnover Net profit
name type scope d capital assets profit
General
contracting,
subcontracting,
engineering
survey and
design;
professional
contracting;
architectural
Sino Great decoration
Wall engineering;
architectural
Internation Subsidiari 1,000,000 6,645,553, -234,815,4 185,542,15 -646,229,6 -1,112,908,
al es curtain wall; ,000 235.97 16.20 8.51 05.66 329.81
Engineerin project and
g Co., Ltd. technology
study and
experimental
development;
sell building
material,
machinery,
hardware,
plastic articles;
technology
development,
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Sino Great Wall Co., Ltd. The Semi-annual Report 2019
technology
consultation,
technology
service; goods
import and
export;
technology
import and
export; agent
import and
export.
Subsidiaries obtained or disposed in the reporting period
√Applicable □Not applicable
Name M ode Influence
Sino Great Wall International Engineering Which weight less in the whole
Written off
Co., Ltd.Chengdu Branch company’s operation
Notes
Sino Great Wall International Engineering Co., Ltd. is a wholly-owned subsidiary of the company, and is the main
subsidiary of the company's business income and profit sources. Its business income and net profit both account
for more than 90% of the company's business income and net profit. The ratio of business income and net profit of
other holding and participating companies to the company's business income and net profit is less than 10%,
which has little impact on the company's overall operation.
VIII．Structured vehicle controlled by the Company
□ Applicable √ Not applicable
IX. Prediction of business performance for January -September 2019
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 company belongs to the construction industry. The change of economic cycle is closely related to the
development of construction industry, and factors such as the operation of national economy and the development
of urbanization process will directly affect the construction industry. The construction industry and health care
industry that the company is engaged in are greatly affected by macro-economy and policies. The uncertainty of
international and domestic economic situation and changes in national policies bring potential risks to the
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Sino Great Wall Co., Ltd. The Semi-annual Report 2019
company's market development and operation management.
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 2019.
1. Risks Aggravated by the Market Competition
As to the international market, on the one hand, the combinations among the strong ones of the giant
international contractors in Europe, America, Japan and South Korea are increasingly common, which can
increasingly strength the aspects including the technology, financing and management; on the other hand, more
domestic enterprises have participated in the international market competition of construction & engineering,
intensified the overseas construction market competition. In the domestic market, with the continuous rise of the
attractiveness of medical engineering projects, many companies have participated in the construction of medical
engineering projects. Thus, the medical engineering projects have been more difficult to bid and have fierce
competition, which imposes a higher requirement on the Company's market expansion.
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.
2. Management Risks Brought by Constant Business Scope Enlargement
The company's business and scale continue to expand, putting forward higher requirements for the
management of the company's management mode, talent reserve, technological innovation and market
development.
Solutions : The company will continue to improve the management level, strengthen the talent reserve, adjust
and improve the management system, continue to strengthen the information management, and form big data
precipitation and analysis of various data in the operation process through advanced technical means, so as to
promote the improvement of management efficiency and widen the management coverage.
3. Operation-related risks
(1)Risks of period in project construction
The engineering construction project may be affected by factors such as changes in project design, delays in
the payment of project funds, restrictions on transportation, power supply and water supply, land acquisition and
relocation, and bad weather, etc., resulting in the failure to proceed as the project schedule agreed in the contract,
the risk of the project not being completed and delivered on schedule, and the impact on the company's operating
performance and reputation.
(2)Risk of increased material price
The construction industry is mainly about fixed cost contract, so gross profit margin is somehow sensitive to
the fluctuation of purchasing price of construction materials. The bulk materials used by the company mainly
include concrete and steel. Due to the long construction period in construction projects, the price increase of these
bulk materials will directly lead to the increase of construction costs, resulting in the difference between the actual
construction costs and the project budget, affecting the company's operating performance.
(3)Operational risks of overseas businesses
Although the company's overseas businesses are mainly in Southeast Asia and other regions, the company will
face potential economic risks, exchange rate risks, political risks and other risks in the process of overseas
business operation. In case of major fluctuations or economic crises in the economic development of the countries
or regions where the company's overseas target markets are located, they will adversely affect the company's
overseas business and the further development of new markets in the future.
Solutions ：For the above risks, the company will integrate internal and external resources, strengthen
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Sino Great Wall Co., Ltd. The Semi-annual Report 2019
technological innovation according to the professional development ideas, seek expansion of business areas and
construction qualifications, improve operation quality and benefits, create green and high-quality projects, realize
multi-field professional construction operations and enterprise development, and continuously upgrade brand
strength.
4. Risk of bad debt caused by accounts receivable
Some countries have entered the debt repayment period, with increased financial pressure, increased risk of
debt default, insufficient confidence of investors, and scarce funds for infrastructure construction. The company
has a large balance of accounts receivable, and the high proportion of net accounts receivable to total assets is due
to the characteristics of the industry. With the expansion of the company's business scale, the balance of the
company's accounts receivable is generally on the increase, and the proportion of net accounts receivable to total
assets is expected to remain at a relatively high level. The failure to recover the company's accounts receivable in
time will affect the company's capital turnover rate and cash flow from operating activities, thus adversely
affecting the company's production, operation and performance level.
Solutions ： Strengthen fund management, rationally allocate fund structure, and establish assessment
mechanism for project fund recovery to resolve and prevent potential fund risks.
5. Risks of debt and stock delisting
Earlier, the company issued multiple announcements on litigation and arbitration matters in the designated
information disclosure media. As the overdue debts of the company and its subsidiaries are not paid off and the
company is under investigation by the CSRC, the company has been sued by some creditors and some of its bank
accounts and company's assets have been frozen. The overdue debts of the company may be subject to payment of
relevant liquidated damages, late fees and penalty interests, increasing the company's financial expenses, thus
affecting the company's production and business operation, possibly weakening the confidence of other creditors
in the company, thus aggravating the company's financial tension and adversely affecting the company's operation.
On July 24, 2019, the company received the application for reorganization submitted by the creditor Bihui Road
and Bridge served by the court. Bihui Road and Bridge applied to the court for reorganization of the company on
the grounds that the company was unable to repay the debts due and obviously lacked solvency. If the court
formally accepts the application for reorganization of the company, the company will be declared bankrupt due to
the failure of reorganization and the shares will face the risk of delisting.
Solutions：The Company will continue to pay attention to the follow -up progress, fulfill its information disclosure
obligations in a timely manner in accordance with relevant regulations, strengthen the management of
litigation-related matters, and employ professional lawyers to actively respond to lawsuits so as to protect the
legitimate rights and interests of the company. The company is making every effort to raise debt service funds and
properly handle the debt crisis. If the court formally accepts the application for reorganization of the company and
the company smoothly implements the reorganization and completes the reorganization plan, it will be beneficial
to improve the company's asset and liability structure and enhance the company's profitability. Up to now, the
company has received a written letter of support for the reorganization of more than half of the amount of
creditor's rights. During the period when the court accepts the review case, the company will actively cooperate
with the court to study and demonstrate the feasibility of the reorganization of the company. If the court decides
that the company has entered the reorganization, the company will actively cooperate with the court and the
administrator in the reorganization and perform the debtor's legal obligations according to law.
6. Risk of stock listing suspension
(1) The company is currently being investigated by the China Securities Regulatory Commission because of
18
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
suspected illegal information disclosure. According to the relevant provisions of the Shenzhen Stock Exchange
Listing Rules (Revised in November 2018), if the company is involved in the illegal material information
disclosure and under other forced delisting situations stipulated in Article 13.2.1, the company's shares will be
subject to the delisting risk warning. The company's shares will be suspended on the next trading day after the
expiration of the 30-trading-day period in the delisting risk warning until the Shenzhen Stock Exchange makes a
decision on whether to suspend the listing of the company's shares within 15 trading days after the suspension. If
the investigation items that the company is involved in are not found to have any major illegal acts by the CSRC,
the company's shares will not be at risk of suspension. (2) Reanda Public Certified Accountants (special general
partnership) issued an audit report that could not express its opinions on the company's 2018 financial report.
According to the relevant provisions of the Listing Rules of Shenzhen Stock Exchange, the company's stock will
be subject to "delisting risk warning" from May 6, 2019. If the company's 2019 financial and accounting report
continues to be issued with audit reports that cannot express opinions or negative opinions, the company's stocks
will be suspended from the date of disclosure of the 2019 annual report in accordance with the relevant provisions
of the Listing Rules of Shenzhen Stock Exchange.
Solutions：(1) The Company will actively cooperate with the CSRC to carry out investigations, and perform its
information disclosure obligations according to the relevant provisions of the Listing Rules of Shenzhen Stock
Exchange and disclose risk alert announcements at least once a month. (2) According to the reason why the audit
report cannot express opinions, the company formulates specific measures to eliminate the matter and its impact,
actively coordinates all parties to strengthen self-examination of the internal control system, establishes an
internal verification team, coordinates communication between banks and various engineering project parties,
actively adopts effective measures, and tries its best to eliminate the matters on which it cannot express opinions.
19
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
V. Important Events
1. Annual General Meeting and Extraordinary Shareholders’ Meetings in the Reporting Period
1.Annual General Meeting
Investor Index to disclosed
M eeting Type Convened date Disclosure date
participation ratio information
The first
provisional
shareholders’
General M eeting
in 2019
The first
Provisional (No.2019-016)
provisional
shareholders’ published on
shareholders’ 34.40% February 13,2019 February 14,2019
General Securities
General meeting in
M eeting Times,Hong Kong
2019
Commercial Daily
and Juchao
Website
（http://www.cnin
fo.com.cn）on
2018 Annual
General M eeting
(No.2019-059)
published on
Securities
2018 Annual Annual General
39.62% M ay 20,2019 M ay 21,2019 Times,Hong Kong
General M eeting M eeting
Commercial Daily
and Juchao
Website
（http://www.cnin
fo.com.cn）on
2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √Not applicable
20
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
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
Comm maki
of Fulfil
Commitment itment Type Contents ng
comm lment
maker com
itment
mitm
ent
Commitment on share reform No No No No No
Commitment in the acquisition
report or the report on equity No No No No No
changes
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 Strict
M arc 36
Chen Stock limited to the public transfer through the perf
h 19, month
Lue lock stock market or by agreement, within 36 ormi
2015 s
months from the date new shares list. If ng
regulation rules or regulators have longer
requirements for lock-up periods, it should
be executed accordingly.
Commitments in assets
reorganization 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
No M arc Strict
and other companies controlled by me (if
Chen capital h Long- perf
any), except for listed companies and their
Lue occup 19,2 term ormi
holding subsidiaries, will not possess the
ation 015 ng
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
21
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
avoid fund intercourse with listed
companies or Sino Great Wall, which has
nothing to do with normal operations. If
Sino Great Wall got penalized by
government administration departments
due to the money lending which was
happened before the transaction, I will
bear the total compensation for the
company’s loss resulting from it by cash in
order to guarantee Sino Great Wall won’t
suffer any loss. M eanwhile, I will actively
urge Sino Great Wall to establish complete
inner control system and funds
management system within lawful
authority.
In view of the fact that the houses rented
by Sino Great Wall and it’s son
subsidiaries, subsidiaries, haven’t rental
Cash M arc Strict
registration, I promise, if Sino Great Wall
Chen compe h Long- perf
and its son subsidiaries, subsidiaries, were
Lue nsatio 19,2 term ormi
penalized by real estate management
n 015 ng
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
Cash before bidding process. As to the violating M arc Strict
Chen compe issues existed in the Libo project, I h Long- perf
Lue nsatio promise as follows: if Sino Great Wall got 19,2 term ormi
n penalized by government administration 015 ng
departments or suffered any economic loss
resulted from it, I will compensate the
company by cash; M eanwhile, 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
22
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
the time for construction again.
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 compensate by cash for
Cash parent-subsidiary companies of Sino Great M arc Strict
Chen compe Wall’s losses which are caused by h Long- perf
Lue nsatio operation and finance due to the 19,2 term ormi
n above-mentioned matters. 2. I undertake to 015 ng
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
Cash Strict
Wall , including the competent authorities’ M arc
Chen compe Long- perf
requirement for Sino Great Wall or its h 19,
Lue nsatio term ormi
subsidiary to make supplementary 2015
n ng
payment, to be punished and resourced, I
will bear by full-amount cash for the fee of
supplemental payment and the expense
and fee for being punished or resourced,
which is to guarantee Sino Great Wall and
23
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
its subsidiary to avoid suffering from any
loss ”.
“At present, Suzhou Lvbang has possessed
one state-own land use right, of which the
land certificate is Suzhou Guo Yong(2014)
No.Y2014086”, locates in Danan Village,
Dadian Town, Yongqiao District, Suzhou
City with 32,966 square meters of area
and the purpose for industry. Suzhou
Lvbang possesses its own factory with
9,843.87 square meters of area
above-mentioned, which is the building
reserved on the former selling land.
Suzhou Lvbang is carrying out
refurnishing and reconstruction for this
factory and has acquired “License of
Construction Land Planning ”with
No.2014-08-001 approved and issued by
Yongqiao District, Suzhou City’s housing
Cash M arc Strict
and rural construction bureau, of which
Chen compe h Long- perf
other examination and approval
Lue nsatio 19,2 term ormi
procedures of construction are in the
n 015 ng
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
Cash Strict
Significant Asset Replacement and Issue M arc
Chen compe Long- perf
of Share to Buy Asset”(hereinafter h 19,
Lue nsatio term ormi
referred to as “Agreement”) signed among 2015
n ng
Victor Onward Holdings, all shareholders
24
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
of Sino Great Wall and Union
Development Group Co., Ltd (hereinafter
referred to as“ Union Group”) on October
13, 2014, all the creditor’s rights and
liabilities related to place-out asset before
the delivery date of Victor Onward
Holdings shall be Union Group’s
responsibility to carry out solution; After
the asset delivery date, if any losses occur
to Victor Onward Holdings in reason of
the liability transfer of asset delivery,
personnel placement, unsettled dispute or
controversy and other compensation
related to place-out asset, payment
obligation and punishment, Union Group
or the specified third party shall
sufficiently compensate all losses for
Victor Onward Holdings for the above
matters. I undertake, if Union Group and
the specified third party refuse to
compensate the losses caused by the above
mentioned matters for Victor Onward
Holdings according to the“ Agreement”, I
will compensate by cash for the Victor
Onward Company within 5 working day
in advance. M eanwhile, I will reserve the
resource rights for Union Group and the
specified third party “.
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 in staff, asset,
finance, institution and business of Sino
Sept
Chen Indepe Great Wall. Independence exists in both Strict
emb
Lue; ndent staff, asset, finance, institution and Long- perf
er
He compe business and no confusion exists. 2. I term ormi
30,2
Feiyan tition undertake, after this reorganization, to ng
015
ensure the continued complete separation
between me or other enterprises under my
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,
25
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
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 comp lete
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
Insurance 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 Insurance 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 makes the
26
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
financial decision-making independently, I
will not intervene the utilization of the
listed company’s capital. (4)The Insurance
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 Insurance 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.
Chen Relate “1.Before this reorganization, the fairness M arc Long Strict
Lue; d and reasonableness of pricing and the h 19, term perfor
He transa legitimacy and effectiveness of 2015 ming
27
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Feiya ctions decision-making procedure exist in the
transaction(if any) between me or the
enterprise under my possession(if any) and
Sino Great Wall which is planned to place
asset in, no related transaction with
obvious unfairness exists ; 2.After this
reorganization, I or the enterprise under
my possession will avoid and reduce the
related transaction with listed company as
much as possible. As for any unavoidable
or reasonable related transaction, I or the
enterprise under my possession will sign
the agreement according to laws and fulfill
the lawful procedure, and fulfill relevant
approval procedure for internal
decision-making and timely fulfill the
obligation of disclosing information
according to law, following relevant laws,
regulations, other normative documents
and articles of listed company, which is to
guarantee the fairness and reasonableness
in related transaction pricing, to guarantee
the fairness of transaction condition and to
guarantee not to utilize the related
transaction to illegally transfer the capital
and profit of listed company, and not to
utilize this transaction to engage in any
behaviors which will cause any losses to
listed company or other shareholder’s
legitimate rights. Once I violate the above
promises and cause losses to the listed
company, I will compensate the listed
company for the losses caused by the this
matter.
Commitments make in initial public
No No No No No
offering or re-financing
Equity incentive commitment No No No No
Other commitments for medium
No No No No
and small shareholders
Completed on time(Y/N) Yes
If the commitments are not fulfilled
on time, shall explain the specify Nil
reason and the next work plan
28
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
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” Issued for last year
√ Applicable □ Not applicable
In view of the fact that the company's 2018 financial report was issued by Reanda Public Certified Accountants
(special general partnership) with an "audit report" (LADS Zi [2019] No 2333) in which it could not express an
opinion, Shenzhen Stock Exchange implemented a "delisting risk warning" for the company's stocks on May 6,
2019 in accordance with relevant regulations such as the Listing Rules of Shenzhen Stock Exchange. The board of
directors of the company believes that "matters that lead to the inability to express opinions" fully reveal the risks
faced by the company and objectively reflect the actual situation and financ ial situation of the company. The
board of directors of the company agrees to the audit report issued by Reanda Certified Public Accountants
(Special General Partnership) for the 2018 financial report of the company that cannot express opinions. The
Board of Directors of the Company will take effective measures to eliminate the above risk factors as far as
possible.
During the reporting period, the company took the following measures to eliminate non-standard items and their
impacts:
1. During the reporting period, the company strengthened self-examination of its internal control system, found
problems in internal control in a timely manner, formulated practical and feasible corrective measures and
implemented them, and strengthened sorting, revision and training of internal control related systems, which laid a
foundation for the company's future standardized operation.
2. It set up an internal verification team to coordinate relevant personnel of all relevant departments to consult,
check and sort out the relevant papers and materials of relevant contract documents and financial vouchers in
recent years; To check and verify the company's bank deposits and loans, past and present funds, project
correspondence, etc., and collect complete financial information. At the same time, it strengthened communication
with banks and various engineering project parties to ensure the normal development of audit work.
3. The company actively promoted the construction of projects under construction in combination with the return
of company funds and credit improvement. It reached clear opinions with the owner of the suspended project on
the follow-up promotion of the project, arranged the finance department and the engineering department to
actively and effectively communicate with the relevant engineering parties and suppliers, and checked the relevant
capital flow, project progress, inventory, etc., so as to strive for the continuation of the project and reduce the
company's losses. For litigation-related cases, the company will continue to pay attention to the follow-up
progress, fulfill its information disclosure obligations in a timely manner in accordance with relevant regulations,
strengthen the management of litigation-related matters, and employ professional lawyers to actively respond to
lawsuits so as to protect the legitimate rights and interests of the company.
29
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
4. During the reporting period, the company is making every effort to raise debt service funds and properly handle
the debt crisis. The company has carried out all-round work in accounts receivable collection, including but not
limited to sending written collection letters, setting up a collection team to collect on-site and investigating the
assets of the debt company on site. The company continues to collect evidence and materials, and will further
intensify collection efforts, including but not limited to legal means to safeguard the company's creditor's rights.
The company will restore and enhance its credibility and strength by seeking the support of strategic investor s in
terms of capital and resources while taking measures to extricate itself from difficulties and crises; On July 24,
2019, the company received the Application for Reorganization submitted by the applicant Bihui Road and Bridge
from Shenzhen Intermediate People's Court (hereinafter referred to as the "court"). The Application for
Reorganization stated that Bihui Road and Bridge applied to the court for reorganization of the company on the
grounds that the company could not repay the debts due and obviously lacked solvency. No matter whether it
enters the reorganization process or not, the company will actively ensure daily operation and management on the
existing basis, actively solve the company's current financial difficulties, and promote the company to return to the
track of healthy and sustainable development.
5. Since being placed on file for investigation by the China Securities Regulatory Commission, the company has
fully cooperated with the investigation work of the China Securities Regulatory Commission, including but not
limited to providing relevant information as required and reporting the progress of relevant verification work in a
timely manner. The company shall perform its information disclosure obligations in accordance with the relevant
provisions of the Listing Rules of Shenzhen Stock Exchange and disclose a risk alert announcement once a month.
To sum up, the board of directors of the company will serious ly study the countermeasures, actively push forward
the related work on improving the company's governance, and solve the current problems of the company as soon
as possible. Meanwhile, the board of directors will further urge the company's management to communicate with
relevant parties and take active measures to do their best to continuously promote the project construction
progress and safeguard the legitimate rights and interests of the company and all shareholders.
VII. Bankruptcy and restructuring
□ Applicable √ Not applicable
No such cases in the reporting period.
VIII. Legal matters
Significant lawsuits or arbitrations
√ Applicable □Not applicable
Involved Index to
General amount （Ten Decisions and Execution of Disclosure disclosed
Provision Progress
information thousand effects decisions date informati
yuan) on
Loan Contract Second The On
Dispute Case instance Guangdong August
August
with Shenzhen 12,811.63 No judgment — Shenzhen 31, 2018,
31,2018
Guodingsheng is given Intermediate it was
Trading Co., Ltd. and case People's Court disclosed
30
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
is closed issued (2019) in the
Y03Z701 2018
enforcement Semi-ann
verdict, with a ual
mandatory Report on
enforcement Cninf; On
of 88，941， Septembe
110.88 yuan. r 2018,
Announce
ment on
the
Company,
Its
Wholly-o
wned
Subsidiari
es and
Controllin
g
Sharehold
ers
Receiving
and
<
Property
Report
Order>;
On
October
23, 2018,
Announce
ment on
Reply to
Inquiry
Letter on
Semi-ann
ual
Report of
Shenzhen
Stock
Exchange
31
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
(Announc
ement
No.:2018-
125）; On
February
20, 2019,
Announce
ment on
Reply to
Shenzhen
Stock
Exchange
's Letter
of
Concern(
Announce
ment
No.::2019
-019)；
Announce
ment on
the
Progress
of M ajor
Litigation
and
Arbitratio
n M atters
on April
19, 2019
(Announc
ement
No.:
2019-036
)；The
full text
of the
2018
annual
report
on April
30, 2019
Financial loan The During August On
4,997.22 No —
contract dispute judgment implementatio 31,2018 August
32
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
case of Zhuhai of the n: The 31, 2018,
Branch of second People's Court it was
Xiamen instance of Xiangzhou disclosed
International is closed District, in the
Bank Co., Ltd. and is Zhuhai City, 2018
being Guangdong Semi-ann
implemen Province ual
ted. made the Report on
Execution Cninf; On
Order [(2019) Septembe
Y 0402 Z No. r 2018,
4280], Announce
imposing a ment on
total of the
48,882,075.8 Company,
yuan for the Its
principal and Wholly-o
interest of the wned
loan and Subsidiari
116,283 yuan es and
for execution Controllin
fee g
Sharehold
ers
Receiving
and
<
Property
Report
Order>;
On
October
23, 2018,
Announce
ment on
Reply to
Inquiry
Letter on
Semi-ann
ual
Report of
33
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Shenzhen
Stock
Exchange
(Announc
ement
No.:2018-
125）; On
February
20, 2019,
Announce
ment on
Reply to
Shenzhen
Stock
Exchange
's Letter
of
Concern(
Announce
ment
No.::2019
-019)；
The full
text of the
2018
annual
report on
April 30,
2019;
Announce
ment on
the
Progress
of M ajor
Litigation
and
Arbitratio
n M atters
on June
14, 2019
(Announc
ement
No.:
2019-075
34
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
);
On
August
31, 2018,
it was
disclosed
in the
2018
Semi-ann
ual
Report on
Cninf; On
Septembe
r 2018,
Announce
Under ment on
enforcement the
On February Company,
2, 2019, Its
Shenzhen Wholly-o
The
Intermediate wned
judgment
Loan contract People's Court Subsidiari
is given August
dispute case with 16,192.92 No — issued (2019) es and
and the 31,2018
Li Qiaoli Y03Z65 Controllin
case is
enforcement g
closed.
verdict, with a Sharehold
mandatory ers
enforcement Receiving
of 177.194128 and
<
Property
Report
Order>;
On
October
23, 2018,
Announce
ment on
Reply to
Inquiry
Letter on
35
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Semi-ann
ual
Report of
Shenzhen
Stock
Exchange
(Announc
ement
No.:2018-
125）; On
February
20, 2019,
Announce
ment on
Reply to
Shenzhen
Stock
Exchange
's Letter
of
Concern(
Announce
ment
No.::2019
-019);
The full
text of the
2018
annual
report on
April 30,
2019
On
August
The 31, 2018,
first-insta it was
Loan contract
nce disclosed
dispute case of
judgment August in the
Shenzhen Brach 9,523.09 No — —
is closed 31,2018 2018
of Bank of
and an Semi-ann
Ningbo
appeal is ual
made Report on
Cninf; On
Septembe
36
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
r 2018,
Announce
ment on
the
Company,
Its
Wholly-o
wned
Subsidiari
es and
Controllin
g
Sharehold
ers
Receiving
and
<
Property
Report
Order>;
On
October
23, 2018,
Announce
ment on
Reply to
Inquiry
Letter on
Semi-ann
ual
Report of
Shenzhen
Stock
Exchange
(Announc
ement
No.:2018-
125）; On
February
20, 2019,
Announce
37
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
ment on
Reply to
Shenzhen
Stock
Exchange
's Letter
of
Concern(
Announce
ment
No.::2019
-019)；
The full
text of the
2018
annual
report on
April 30,
2019;
Announce
ment on
the
Progress
of M ajor
Litigation
and
Arbitratio
n M atters
on
M ay ,8,
2019
(Announc
ement
No.:
2019-050
)
Shenzhen On
Loan contract
The Intermediate August
dispute case of
judgment People's Court 31, 2018,
Industrial Bank
is given issued (2018) August it was
(China) 29,137.97 No —
and the Y03Z2798, 31,2018 disclosed
Shenzhen
case is with a in the
Houhai
closed. mandatory 2018
Sub-branch
enforcement Semi-ann
38
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
of ual
293,399,781 Report on
yuan. Cninf; On
Septembe
r 2018,
Announce
ment on
the
Company,
Its
Wholly-o
wned
Subsidiari
es and
Controllin
g
Sharehold
ers
Receiving
and
<
Property
Report
Order>;
On
October
23, 2018,
Announce
ment on
Reply to
Inquiry
Letter on
Semi-ann
ual
Report of
Shenzhen
Stock
Exchange
(Announc
ement
No.:2018-
39
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
125）; On
February
20, 2019,
Announce
ment on
Reply to
Shenzhen
Stock
Exchange
's Letter
of
Concern(
Announce
ment
No.::2019
-019) ;
The full
text of the
2018
annual
report on
April 30,
2019;
Announce
ment on
the
Progress
of M ajor
Litigation
and
Arbitratio
n M atters
on April
19,, 2019
(Announc
ement
No.:
2019-036
)
The On
Enforcement
(2018) Septembe
case of Shaanxi Under September
11,711.49 No XZZF Zi — r
International enforcement 14,2018
No. 140 14,2018,
Trust Co., Ltd
execution Announce
40
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
certificate ment on
issued by the
Xi'an Company,
Notary Its
Office has Wholly-o
become wned
legally Subsidiari
effective, es and
and Controllin
Shaanxi g
Internatio Sharehold
nal Trust ers
Co., Ltd. Receiving
applied to and
ate <
People's Property
Court for Report
compulso Order>;
ry On
execution October
23, 2018,
Announce
ment on
Reply to
Inquiry
Letter on
Semi-ann
ual
Report of
Shenzhen
Stock
Exchange
(Announc
ement
No.:2018-
125）; On
February
20, 2019,
Announce
ment on
Reply to
41
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Shenzhen
Stock
Exchange
's Letter
of
Concern(
Announce
ment
No.::2019
-019);
Announce
ment on
the
Progress
of M ajor
Litigation
and
Arbitratio
n M atters
on April
19, 2019
(Announc
ement
No.:
2019-036
)
The On
Notice of Septembe
Enforcem r 18,
ent from 2018,
Beijing Announce
Third ment on
Enforcement
Intermedi the
case of CCB
ate Company,
International
People's Under September Its
Asset 21,111.82 No —
Court on enforcement 18,2018 Wholly-o
M anagement
the Case wned
(Shanghai) Co.,
of Subsidiari
Ltd
Notarizati es and
on of Controllin
Creditor's g
Rights Sharehold
Document ers
s between Receiving
42
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
the and
nal Asset <
M anagem Property
ent Report
(Shanghai Order>;
) Co., Ltd. On
is February
received 20, 2019,
Announce
ment on
Reply to
Shenzhen
Stock
Exchange
's Letter
of
Concern(
Announce
ment
No.::2019
-019)；
The full
text of the
2018
annual
report on
April 30,
2019
On
Septembe
r 18,
2018,
The Announce
Loan dispute execution ment on
September
case with Chen 4,980 No has been — — the
18,2018
Jiang completed Company,
. Its
Wholly-o
wned
Subsidiari
es and
43
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Controllin
g
Sharehold
ers
Receiving
and
<
Property
Report
Order>;
On
October
23, 2018,
Announce
ment on
Reply to
Inquiry
Letter on
Semi-ann
ual
Report of
Shenzhen
Stock
Exchange
;
Announce
ment on
Enforcem
ent of
Company
Shares
Held by
Directors
and
Senior
Executive
s on
January 5,
2019; On
February
20, 2019,
44
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Announce
ment on
Reply to
Shenzhen
Stock
Exchange
's Letter
of
Concern(
Announce
ment
No.::2019
-019);
The full
text of the
2018
annual
report
Announce
ment on
the
Progress
of M ajor
Litigation
and
Arbitratio
n M atters
on June
14, 2019
(Announc
ement
No.:
2019-075
);
On
The October
first-insta 23, 2018,
Contract dispute nce Announce
case with Gome judgment October ment on
4,285.52 No — —
Cinda Factoring is closed 23,2018 Reply to
Co., Ltd. and an Inquiry
appeal is Letter on
made Semi-ann
ual
45
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Report of
Shenzhen
Stock
Exchange
; On
February
20, 2019,
Announce
ment on
Reply to
Shenzhen
Stock
Exchange
's Letter
of
Concern(
Announce
ment
No.::2019
-019);
Announce
ment on
the
Progress
of M ajor
Litigation
and
Arbitratio
n M atters
on April
19, 2019
(Announc
ement
No.:
2019-036
);
The full
text of the
2018
annual
report on
April 30,
2019.
Financial loan 36,492.18 No Waiting — — September Announce
46
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
contract dispute for the 15,2018 ment on
case with Bohai judgment Partial
International of first Debt
Trust Co., Ltd. instance. Overdue
on
Septembe
r 15,
2018;
Announce
ment on
Receiving
Civil
Complain
t on
October
9, 2018;
On
February
20, 2019,
Announce
ment on
Reply to
Shenzhen
Stock
Exchange
's Letter
of
Concern(
Announce
ment
No.::2019
-019);
The full
text of the
2018
annual
report on
April 30,
2019
Financial loan The Announce
contract dispute first-insta Not yet ment on
Sptember
case with China 10,245.74 No nce — applied for Partial
15,2018
Industrial verdict execution Debt
International was Overdue
47
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Trust Limited closed on
Septembe
r 15,
2018;
Announce
ment on
Receiving
Civil
Complain
t on
October
13, 2018；
On
February
20, 2019,
Announce
ment on
Reply to
Shenzhen
Stock
Exchange
's Letter
of
Concern(
Announce
ment
No.::2019
-019);
Announce
ment on
the
Progress
of M ajor
Litigation
and
Arbitratio
n M atters
on April
19, 2019
(Announc
ement
No.:
2019-036
);
48
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
The full
text of the
2018
annual
report on
April 30,
2019
Announce
ment on
Partial
Debt
Overdue
on
Septembe
r 15,
2018;
Announce
ment on
Receiving
Civil
Complain
t on
October
Financial loan The
13, 2018；
contract dispute first-insta
Not yet On
case with China nce September
10,113.78 No — applied for February
Industrial verdict 15,2018
execution 20, 2019,
International was
Announce
Trust Limited closed
ment on
Reply to
Shenzhen
Stock
Exchange
's Letter
of
Concern(
Announce
ment
No.::2019
-019);
The full
text of the
2018
annual
49
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
report on
April 30,
2019
Announce
ment on
Receiving
Civil
Complain
t on
October
13, 2018；
On
February
20, 2019,
Announce
ment on
Reply to
Shenzhen
Stock
Exchange
's Letter
The
of
Bill dispute case judgment
Concern(
with Jiaozuo is given Under October
305 No — Announce
Junpeng Coal and the enforcement 13,2018
ment
Co., Ltd. case is
No.::2019
closed.
-019);
The full
text of the
2018
annual
report on
April 30,
2019;
Announce
ment on
the
Progress
of M ajor
Litigation
and
Arbitratio
n M atters
on July 3,
50
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
2019
(Announc
ement
No.:
2019-083
);
Announce
ment on
Receiving
Civil
Complain
t on
October
13, 2018；
On
Bill dispute case
The February
with Tongchuan
judgment 20, 2019,
New District
is given Under October Announce
Hengxin 456 No —
and the enforcement 13,2018 ment on
Building
case is Reply to
M aterial Co.,
closed. Shenzhen
Ltd.
Stock
Exchange
's Letter
of
Concern(
Announce
ment
No.::2019
-019)
Announce
ment on
Receiving
Civil
The Complain
Bill dispute case
judgment t on
with Xian Bihui
is given Under October October
Road & Bridge 507 No —
and the enforcement 13,2018 13, 2018；
Engineering Co.,
case is On
Ltd.
closed. February
20, 2019,
Announce
ment on
Reply to
51
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Shenzhen
Stock
Exchange
's Letter
of
Concern(
Announce
ment
No.::2019
-019);
The full
text of the
2018
annual
report on
April 30,
2019;
Announce
ment on
the
Progress
of M ajor
Litigation
and
Arbitratio
n M atters
on July 3,
2019
(Announc
ement
No.:
2019-083
)
Announce
ment on
Early
The
Financial loan Terminati
judgment
contract dispute on of
is given Under September
case with Datong 13,801.32 No — Collective
and the enforcement 14,2018
Securities Co., Funds
case is
Ltd. Trust Plan
closed.
for Trust
Loan on
Septembe
52
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
r 14,
2018；
Announce
ment on
Partial
Debt
Overdue
on
Septembe
r 15,
2018;
Announce
ment on
Receiving
Civil
Complain
t on
October
18,
2018(Ann
ouncemen
t
No.:2018-
120);On
February
20, 2019,
Announce
ment on
Reply to
Shenzhen
Stock
Exchange
's Letter
of
Concern(
Announce
ment
No.::2019
-019);An
nounceme
nt on the
Progress
of M ajor
Litigation
53
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
and
Arbitratio
n M atters
on April
19, 2019
(Announc
ement
No.:
2019-036
);
The full
text of the
2018
annual
report on
April 30,
2019;
Announce
ment on
the
Progress
of M ajor
Litigation
and
Arbitratio
n M atters
on June
14, 2019
(Announc
ement
No.:
2019-075
).
Announce
ment on
Receiving
Financial loan The
Civil
contract dispute judgment
Not yet Complain
case of Ping An is given October
2,905.1 No — applied for t on
International and the 24,2018
execution October
Financial case is
24, 2018；
Leasing Co., Ltd. closed.
Announce
ment on
Receiving
54
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Notice of
Early
M aturity
of Debt
on
October
26, 2018;
On
February
20, 2019,
Announce
ment on
Reply to
Shenzhen
Stock
Exchange
's Letter
of
Concern(
Announce
ment
No.::2019
-019);
The full
text of the
2018
annual
report on
April 30,
2019;
Announce
ment on
the
Progress
of M ajor
Litigation
and
Arbitratio
n M atters
on June
14, 2019
(Announc
ement
No.:
55
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
2019-075
).
Announce
ment on
Receiving
Civil
Complain
t on
October
24, 2018；
On
February
20, 2019,
Announce
ment on
The Reply to
judgment Shenzhen
of first Stock
instance Exchange
is issued 's Letter
and an of
appeal is Concern(
Private loan
made. October Announce
dispute case with 3,143.18 No — —
The 24,2018 ment
Gong Lihong
plaintiff No.::2019
applied -019) ;
for Announce
additional ment on
preservati the
on in the Progress
lawsuit. of M ajor
Litigation
and
Arbitratio
n M atters
on April
19, 2019
(Announc
ement
No.:
2019-036
); The full
text of the
2018
56
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
annual
report on
April 30,
2019;
Announce
ment on
the
Progress
of M ajor
Litigation
and
Arbitratio
n M atters
on M ay 8,
2019
(Announc
ement
No.:
2019-050
).
Announce
ment on
Receiving
Civil
Complain
t on
October
24, 2018；
The On
first-insta February
Right of recourse
nce 20, 2019,
dispute case with
judgment October Announce
Shenzhen Yi'an 1,056.34 No — —
is closed 24,2018 ment on
Factoring Co.,
and an Reply to
Ltd.
appeal is Shenzhen
made Stock
Exchange
's Letter
of
Concern(
Announce
ment
No.::2019
-019);
57
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
The full
text of the
2018
annual
report on
April 30,
2019;
Announce
ment on
the
Progress
of M ajor
Litigation
and
Arbitratio
n M atters
on June
14, 2019
(Announc
ement
No.:
2019-075
).
Announce
ment on
Receiving
Notice of
Early
M aturity
of Debt
on
The
Loan contract Septembe
judgment
dispute case with r 29, 2018
is given Under September
Zhongjiang 32,738.68 No — ；
and the enforcement 29,2018
International Announce
case is
Trust Co., Ltd. ment on
closed.
Receiving
Civil
Complain
t on
Novembe
r 10,
2018；On
February
58
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
20, 2019,
Announce
ment on
Reply to
Shenzhen
Stock
Exchange
's Letter
of
Concern(
Announce
ment
No.::2019
-019) ;
The full
text of the
2018
annual
report on
April 30,
2019;
Announce
ment on
the
Progress
of M ajor
Litigation
and
Arbitratio
n M atters
on June
14, 2019
(Announc
ement
No.:
2019-075
).
Announce
The
ment on
Loan dispute enforcem
Receiving
case with China ent February
2,140.87 No — In commission and
received.
on
February
13, 2019;
On
February
20, 2019,
Announce
ment on
Reply to
Shenzhen
Stock
Exchange
's Letter
of
Concern(
Announce
ment
No.::2019
-019) ;Th
e full text
of the
2018
annual
report on
April 30,
2019
Announce
ment on
Receiving
Financial loan and
Shenzhen on
Co., Ltd. February
13, 2019;
On
February
60
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
20, 2019,
Announce
ment on
Reply to
Shenzhen
Stock
Exchange
's Letter
of
Concern(
Announce
ment
No.::2019
-019);
The full
text of the
2018
annual
report on
April 30,
2019;
Announce
ment on
the
Progress
of M ajor
Litigation
and
Arbitratio
n M atters
on June
14, 2019
(Announc
ement
No.:
2019-075
)
Announce
Financial loan ment on
No court
contract dispute Receiving
session February
case of Shenzhen 10,164.09 No — — and
on
February
13, 2019;
On
February
20, 2019,
Announce
ment on
Reply to
Shenzhen
Stock
Exchange
's Letter
of
Concern(
Announce
ment
No.::2019
-019)
Announce
ment on
Receiving
and
on
Sci-tech 736.1 No — In commission
ent. 13,2019 February
Financing
13, 2019;
Guaranty Co.,
On
Ltd.
February
20, 2019,
Announce
ment on
Reply to
Shenzhen
Stock
Exchange
62
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
's Letter
of
Concern(
Announce
ment
No.::2019
-019)
Announce
ment on
Receiving
and
on
February
Sales contract 13, 2019;
dispute case with On
Awaiting February
Jieyang 489.33 No — — February
judgment 13,2019
Fangyuan Stone 20, 2019,
Co., Ltd. Announce
ment on
Reply to
Shenzhen
Stock
Exchange
's Letter
of
Concern(
Announce
ment
No.::2019
-019)
Announce
Installation
ment on
contract dispute
Receiving
case with
Awaiting February and
Construction
on
February
13, 2019;
On
February
20, 2019,
Announce
ment on
Reply to
Shenzhen
Stock
Exchange
's Letter
of
Concern(
Announce
ment
No.::2019
-019);
The full
text of the
2018
annual
report on
April 30,
2019
Announce
ment on
Receiving
and
Waiting
work dispute on
February
13, 2019;
On
February
20, 2019,
64
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Announce
ment on
Reply to
Shenzhen
Stock
Exchange
's Letter
of
Concern(
Announce
ment
No.::2019
-019);
Announce
ment on
the
Progress
of M ajor
Litigation
and
Arbitratio
n M atters
on April
19, 2019
(Announc
ement
No.:
2019-036
);
The full
text of the
2018
annual
report on
April 30,
2019;
Announce
ment on
the
Progress
of M ajor
Litigation
and
Arbitratio
65
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
n M atters
on July
22, 2019
(Announc
ement
No.:
2019-091
)
Announce
ment on
Receiving
,
and
on
February
Loan dispute The 19, 2019;
case with Henan first-insta On
No.1 Thermal nce Under February February
4,717.75 No —
Power verdict enforcement 19,2019 20, 2019,
Construction was Announce
Co., Ltd. closed ment on
Reply to
Shenzhen
Stock
Exchange
's Letter
of
Concern(
Announce
ment
No.::2019
-019) ;
Announce
ment on
the
Progress
66
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
of M ajor
Litigation
and
Arbitratio
n M atters
on April
19, 2019
(Announc
ement
No.:
2019-036
);
The full
text of the
2018
annual
report on
April 30,
2019;
Announce
ment on
the
Progress
of M ajor
Litigation
and
Arbitratio
n M atters
on June
14, 2019
(Announc
ement
No.:
2019-075
);
Announce
ment on
Receiving
Contract dispute The case
,
Co., Ltd. mediation
67
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
and
on
February
19, 2019;
On
February
20, 2019,
Announce
ment on
Reply to
Shenzhen
Stock
Exchange
's Letter
of
Concern(
Announce
ment
No.::2019
-019);
The full
text of the
2018
annual
report on
April 30,
2019;
Announce
ment on
the
Progress
of M ajor
Litigation
and
Arbitratio
n M atters
on July
22, 2019
(Announc
ement
No.:
68
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
2019-091
)
Announce
ment on
Receiving
,
and
on
February
19, 2019;
On
February
20, 2019,
Announce
Loan contract The
February ment on
dispute case with 5,860.92 No verdict is — —
19,2019 Reply to
Li Shaoxiong closed
Shenzhen
Stock
Exchange
's Letter
of
Concern(
Announce
ment
No.::2019
-019);
The full
text of the
2018
annual
report on
April 30,
2019;
Announce
ment on
the
69
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Progress
of M ajor
Litigation
and
Arbitratio
n M atters
on M ay 8,
2019
(Announc
ement
No.:
2019-050
)
Announce
ment on
Receiving
,
and
on
enforcem
Enforcement February
ent Under February
case with Bairui 30,736.58 No — 19, 2019;
verdict enforcement 19,2019
Trust Co., Ltd. On
has been
February
received.
20, 2019,
Announce
ment on
Reply to
Shenzhen
Stock
Exchange
's Letter
of
Concer(A
nnounce
ment
No.::2019
70
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
-019);
The full
text of the
2018
annual
report on
April 30,
2019;
Announce
ment on
the
Progress
of M ajor
Litigation
and
Arbitratio
n M atters
on July
22, 2019
(Announc
ement
No.:
2019-091
)
Announce
ment on
Receiving
,
over Lease The
equipment with judgment February and
979.05 No — —
Zhejiang Huatie is closed 19,2019 on
Ltd. February
19, 2019;
On
February
20, 2019,
Announce
71
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
ment on
Reply to
Shenzhen
Stock
Exchange
's Letter
of
Concern(
Announce
ment
No.::2019
-019);
The full
text of the
2018
annual
report on
April 30,
2019
Announce
ment on
Receiving
,
and
Waiting on
Kaixiang
instance February
19, 2019;
On
February
20, 2019,
Announce
ment on
Reply to
Shenzhen
Stock
Exchange
72
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
's Letter
of
Concern(
Announce
ment
No.::2019
-019);
Announce
ment on
the
Progress
of M ajor
Litigation
and
Arbitratio
n M atters
on April
19, 2019
(Announc
ement
No.:
2019-036
);
The full
text of the
2018
annual
report on
April 30,
2019;
Announce
ment on
the
Progress
of M ajor
Litigation
and
Arbitratio
n M atters
on June
14, 2019
(Announc
ement
No.:
73
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
2019-075
)
Announce
ment on
Receiving
,
and
on
February
19, 2019;
On
February
Labor An award
20, 2019,
subcontract is issued
Announce
dispute case with upon
February ment on
Hunan 251.57 No arbitration — —
19,2019 Reply to
Zhongjian and the
Shenzhen
Construction case is
Stock
Labor Co., Ltd. closed.
Exchange
's Letter
of
Concern(
Announce
ment
No.::2019
-019);An
nounceme
nt on the
Progress
of M ajor
Litigation
and
Arbitratio
n M atters
on April
19, 2019
74
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
(Announc
ement
No.:
2019-036
);
The full
text of the
2018
annual
report on
April 30,
2019
The full
text of the
2018
annual
report on
Financial loan Waiting April 30,
contract case for the 2019;
M arch
with SPD 7,977.89 No judgment — — Announce
1,2019
Bank .Beijing of first ment on
Branch instance Receiving
on
M arch 1,
2019
Announce
ment on
Receiving
on
Financial loan M arch 1,
Nolle
contract case 2019；
prosequi M arch
with Shanghai 27,411.99 No — — The full
and case 1,2019
Bank .Beijing text of the
closed
Branch 2018
annual
report on
April 30,
2019;
Announce
ment on
75
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
the
Progress
of M ajor
Litigation
and
Arbitratio
n M atters
on July 3,
2019
(Announc
ement
No.:
2019-083
).
Announce
ment on
Receiving
on
M arch 1,
2019;
The full
text of the
2018
annual
report on
Financial loan
April 30,
contract case
Awaiting M arch 2019;
with Bank of 7,934.39 No — —
judgment 1,2019 Announce
China.Shenzhen
ment on
Futian
the
Progress
of M ajor
Litigation
and
Arbitratio
n M atters
on July 3,
2019
(Announc
ement
No.:
2019-083
76
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
).
Announce
ment on
Receiving
on
M arch 1,
2019; The
full text
of the
2018
annual
report on
April 30,
2019;
Announce
ment on
the
Progress
Financial loan
of M ajor
contract case The case
Litigation
with Zhejiang is closed Under M arch
20,000 No — and
Commerce through enforcement 1,2019
Arbitratio
Bank .Shenzhen mediation
n M atters
Branch
on July 3,
2019
(Announc
ement
No.:
2019-083
);
Announce
ment on
the
Progress
of M ajor
Litigation
and
Arbitratio
n M atters
on July
22, 2019
(Announc
77
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
ement
No.:
2019-083
)
Announce
ment on
Receiving
and
on
April 8,
2019; The
full text
of the
2018
Financial loan annual
contract case report on
Awaiting April
with Hengfeng 10,024.5 No — — April 30,
judgment 8,2019
Bank .Fuzhou 2019;
Branch Announce
ment on
the
Progress
of M ajor
Litigation
and
Arbitratio
n M atters
on July 3,
2019
(Announc
ement
No.:
2019-083
)
Announce
Financial loan
ment on
contract case Awaiting April
6,100 No — — Receiving
with SPD Bank judgment 8,2019
and
on
April 8,
2019; The
full text
of the
2018
annual
report on
April 30,
2019
Announce
ment on
Receiving
and
Financial loan on
8,2019
Construction trial April 8,
Investment Co., 2019; The
Ltd. full text
of the
2018
annual
report on
April 30,
2019
Announce
ment on
Receiving
Dispute case and
8,2019
contract with Xu trial on
April 8,
79
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
2019; The
full text
of the
2018
annual
report on
April 30,
2019
Announce
ment on
Receiving
and
on
April 8,
2019; The
full text
of the
2018
annual
Financial loan
report on
contract case
Awaiting April April 30,
with Jiujiang 10,223.39 No — —
judgment 8,2019 2019
Bank .Guangzho
;
u Haizhu Branch
Announce
ment on
the
Progress
of M ajor
Litigation
and
Arbitratio
n M atters
on July 3,
2019
(Announc
ement
No.:
2019-083
)
80
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Announce
ment on
Receiving
plication
> on
April 13,
2019; The
full text
of the
2018
The annual
first-insta report on
Financial loan
nce April 30,
contract case
judgment April 2019
with Baoshang 20,451.46 No — —
is closed 13,2019 ;
Bank.Shenzhen
and an Announce
Branch
appeal is ment on
made the
Progress
of M ajor
Litigation
and
Arbitratio
n M atters
on July 3,
2019
(Announc
ement
No.:
2019-083
)
Announce
ment on
Enterprise Receiving
borrowing case No court
Jinkong Holding held yet plication
Co., Ltd. > on M ay
11,
2019(Ann
81
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
ouncemen
t
No.2019-
054）
Announce
ment on
Receiving
with Shenzhen
session M ay plication
Rural 4,522.8 No — —
has been 21,2019 > on M ay
Commercial
held yet 21,
Bank .Futian
2019(Ann
Branch
ouncemen
t
No.2019-
061）
Announce
ment on
Receiving
Notarized < Notice
creditor's rights of
documen case execution
with Beijing Under >
Under June
Culture and 15,843.37 No enforcem — plication
enforcement 14,2019
Technology ent > on June
financing 14,
guarantee Co., 2019(Ann
Ltd. ouncemen
t
No.2019-
076）
Announce
ment on
Lease contract Receiving
dispute case with No court
M etallurgical held yet plication
Group Co., Ltd. > on
August 3,
2019(Ann
82
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
ouncemen
t
No.2019-
096）
Announce
ment on
Receiving
with Zhuhai session August plication
10,355.44 No — —
Huarun has been 3,2019 > on
Bank .Shenzhen held yet August 3,
Branch 2019(Ann
ouncemen
t
No.2019-
096）
Announce
ment on
Receiving
dispute case with for the
plication
Shenzhen Yi'an 1,048.45 No judgment — — M ay 8,2019
> on M ay
Factoring Co., of first
8,
Ltd. instance
2019(Ann
ouncemen
t
No.2019-
051）
Case of Dispute Announce
over ment on
Construction Receiving
Contract of Sino
and case
Engineering Co., plication
closed
Ltd. v. Nanchang > on M ay
Wanda City 8,
Investment Co., 2019(Ann
Ltd. ouncemen
83
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
t
No.2019-
051）
Case of Dispute
over
Construction
Contract of Sino Announce
Great Wall ment on
International Receiving
Engineering Co.,
Decoration is closed plication
567.19 No — — M ay 8,2019
engineering co., through > on M ay
Ltd. , mediation 8,
Guangzhou 2019(Ann
Zhujiang Qiaodu ouncemen
Real Estate Co., t
Ltd.and No.2019-
Shenzhen Haibai 051）
Decoration
Engineering
Co., Ltd.
Announce
ment on
Receiving
Dispute with Awaiting plication
397.62 No — — M ay 8,2019
Xinbang judgment > on M ay
Construction 8,
Group Co., Ltd. 2019(Ann
ouncemen
t
No.2019-
051）
Dispute case of Announce
contract of sale ment on
The
and purchase Under Receiving
263.56 No verdict is — M ay 8,2019
with Shenzhen enforcement
84
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
M aterial Co., plication
Ltd. > on M ay
8,
2019(Ann
ouncemen
t
No.2019-
051）
Announce
ment on
Receiving
Decoration with The
plication
Sino,Great Wall 233.71 No verdict is — — M ay 8,2019
> on M ay
International closed
8,
Engineering Co.,
2019(Ann
Ltd.
ouncemen
t
No.2019-
051）
Announce
ment on
Receiving
Subcontract
Awaiting plication
Dispute Case 185.97 No — — M ay 8,2019
judgment > on M ay
With Shandong
8,
GRAD Group
2019(Ann
Co. Ltd.
ouncemen
t
No.2019-
051）
Announce
Contract Dispute
ment on
Case with
Receiving
Dongguan Awaiting
178.81 No — — M ay 8,2019
Product Co., Ltd.
plication
85
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
> on M ay
8,
2019(Ann
ouncemen
t
No.2019-
051）
Announce
ment on
Receiving
Bai Shuogang The
Execution plication
Labor Dispute 153.98 No verdict is — M ay 8,2019
completed > on M ay
Case closed
8,
2019(Ann
ouncemen
t
No.2019-
051）
Labor Dispute
between Feng
Guoqiang , Jin Announce
Xin, Wang ment on
Jianbo, Wang Receiving
Yong, Cai
and Wang n, and part of
Wang Li, Fang plication
145.45 No Jianbo — the M ay 8,2019
Yan, Yang Ting, > on M ay
withdraws implementatio
Dong Qing, 8,
the n has been
Shang Xiaojuan, 2019(Ann
lawsuit completed
Du Yanli, Li ouncemen
Hongyan, Li t
Qian, Zhang No.2019-
Weixuan, Niu 051）
and Niu
Youmiao
Labor and The case Announce
Personnel is closed ment on
131.37 No — — M ay 8,2019
Dispute of Guo through Receiving
Xiaoli , Li mediation
Guangyu, Liu plication
Haixiang, Chen > on M ay
Honghua, Peng 8,
Junxiang, Dong 2019(Ann
Jihong, Wang ouncemen
Fengjun, Zhang t
Haichao, Xu No.2019-
Jiao, Xia 051）
Guohong and
and Xiao
M eiling
Announce
ment on
Receiving
case with Internatio
plication
Sino,Great Wall 120 No nal — — M ay 8,2019
> on M ay
International Engineeri
8,
Engineering Co., ng Co.,
2019(Ann
Ltd. Ltd.
ouncemen
t
No.2019-
051）
Announce
ment on
Receiving
and purchase The
Under plication
case with 116.25 No verdict is — M ay 8,2019
enforcement > on M ay
Zhejiang closed
8,
Jianlifang Woods
2019(Ann
Co., Ltd.
ouncemen
t
No.2019-
051）
Contract Dispute The Announce
112.18 No — — M ay 8,2019
with Jinhai judgment ment on
87
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Xinyuan Electric is closed Receiving
Jiangsu Co., Ltd. and China
appealed plication
> on M ay
8,
2019(Ann
ouncemen
t
No.2019-
051）；
Announce
ment on
the
Progress
of M ajor
Litigation
and
Arbitratio
n M atters
on July 3,
2019
(Announc
ement
No.:
2019-083
)
Labor and
Personnel Announce
Dispute with ment on
Xing Changkun, Receiving
Yang Yi, Guo
M ingsheng, Li is closed plication
109.4 No — — M ay 8,2019
Daqiang, Wang through > on M ay
Yanfei, Zhang mediation 8,
Weina, Li 2019(Ann
Lianjun, M a ouncemen
Zhesong, Wang t
Zhiqi, Qu No.2019-
Yanhua, Dong 051）
Deguo and Pan
88
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Jun
Announce
ment on
Receiving
and purchase
Awaiting plication
case with Fujian 106.73 No — — M ay 8,2019
judgment > on M ay
Nanan Feiwang
8,
Stone handicrafts
2019(Ann
co., Ltd.
ouncemen
t
No.2019-
051）
Announce
ment on
Receiving
Dispute over the
interests with is closed plication
100 No — — M ay 8,2019
Sino,Great Wall through > on M ay
International mediation 8,
Engineering Co., 2019(Ann
Ltd. ouncemen
t
No.2019-
051）
Announce
ment on
Receiving
Construction
Beijing Beipao session M ay plication
857.73 No — —
Light steel has been 11,2019 > on M ay
building held yet 11,
materials co., 2019(Ann
Ltd. ouncemen
t
No.2019-
054）
89
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Announce
ment on
Receiving
plication
> on M ay
11,
2019(Ann
ouncemen
t
Contract Dispute No.2019-
Case with 054）;
The
Jiangsu Huaiyin M ay Announce
130.49 No verdict is — —
Construction 11,2019 ment on
closed
Engineering the
Group Co., Ltd. Progress
of M ajor
Litigation
and
Arbitratio
n M atters
on July 3,
2019
(Announc
ement
No.:
2019-083
)
Announce
ment on
Receiving
Under
Dongguan Kema Under M ay plication
86.63 No enforcem —
Decorative enforcement 11,2019 > on M ay
ent
furniture co., 11,
Ltd. 2019(Ann
ouncemen
t
No.2019-
054）
90
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Announce
ment on
Receiving
for the
construction M ay plication
81.87 No judgment — —
project contract 11,2019 > on M ay
of first
dispute case. 11,
instance
2019(Ann
ouncemen
t
No.2019-
054）
Announce
ment on
Receiving
plication
> on M ay
21,
2019(Ann
ouncemen
t
Procurement
No.2019-
contract dispute
Nolle 061）;
case with
prosequi M ay Announce
Guangdong New 79.45 No — —
and case 21,2019 ment on
M ingzhu
closed the
Ceramic Group
Progress
Co. Ltd.
of M ajor
Litigation
and
Arbitratio
n M atters
on July
22, 2019
(Announc
ement
No.:
2019-091
)
91
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Announce
ment on
Receiving
The Not yet
case with Beijing M ay plication
72.57 No verdict is — applied for
Jingsheng Taihua 21,2019 > on M ay
closed execution
M etal Structure 21,
Co., Ltd. 2019(Ann
ouncemen
t
No.2019-
061）
Announce
ment on
the
Progress
of M ajor
Contract dispute Litigation
case with and
Guangdong Awaiting June Arbitratio
364.57 No — —
Chuanghong judgment 13,2019 n M atters
Furniture Co., on June
Ltd. 13, 2019
(Announc
ement
No.:
2019-075
);
Announce
ment on
the
Progress
Contract dispute
of M ajor
case with Luode No court
Litigation
Environmental session June
163.72 No — — and
protection has been 13,2019
Arbitratio
Technology Co., held yet
n M atters
Ltd.
on June
13, 2019
(Announc
ement
92
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
No.:
2019-075
);
Announce
ment on
the
Progress
of M ajor
Contract dispute Litigation
case with No court and
Quanzhou session June Arbitratio
149.02 No — —
Fengze District has been 13,2019 n M atters
Yumin Trade held yet on June
Co., Ltd. 13, 2019
(Announc
ement
No.:
2019-075
);
Announce
ment on
the
Progress
of M ajor
Contract dispute
Litigation
case with Leihe
and
Ouya
June Arbitratio
Construction 3,336.66 No — —
27,2019 n M atters
Labor
on June
subcontract co.,
27, 2019
Ltd.
(Announc
ement
No.:
2019-080
)
Announce
Purchase and ment on
sale contract No court the
dispute case with session June Progress
152.66 No — —
Beijing has been 27,2019 of M ajor
Zhongxing Guoji held yet Litigation
Trade Co., Ltd. and
Arbitratio
93
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
n M atters
on June
27, 2019
(Announc
ement
No.:
2019-080
)
Announce
ment on
the
Progress
of M ajor
Litigation
Right of recourse No court and
dispute case with session June Arbitratio
100 No — —
Guan Haihang has been 27,2019 n M atters
Trade Center held yet on June
27, 2019
(Announc
ement
No.:
2019-080
)
Announce
ment on
the
Progress
of M ajor
Litigation
Right of recourse No court and
dispute case with session June Arbitratio
100 No — —
Guan Haihang has been 27,2019 n M atters
Trade Center held yet on June
27, 2019
(Announc
ement
No.:
2019-080
)
Processing No court Announce
June
contract dispute 106.32 No session — — ment on
27,2019
case with Beijing has been the
94
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Gelin Yisen held yet Progress
Trade Co., Ltd. of M ajor
Litigation
and
Arbitratio
n M atters
on June
27, 2019
(Announc
ement
No.:
2019-080
)
Announce
ment on
the
Contract dispute
Progress
case of
of M ajor
Construction
Litigation
Engineering
No court and
Design with
session Arbitratio
Guangdong 379.62 No — — July 3,2019
has been n M atters
Xinchangan
held yet on July 3,
Construction
2019
Designing
(Announc
Institute Co.,
ement
Ltd.
No.:
2019-083
)
Announce
ment on
the
Progress
of M ajor
Dispute case of
Litigation
contract of sale
The Not yet and
and purchase July
134.15 No verdict is — applied for Arbitratio
with Beijing 22,2019
closed execution n M atters
Zhongxing Guoji
on July
Trade Co., Ltd.
22, 2019
(Announc
ement
No.:
2019-091
95
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
)
Announce
ment on
the
Progress
of M ajor
Dispute case of
Litigation
contract of sale
No court and
and purchase
session July Arbitratio
with Guangdong 82.57 No — —
has been 22,2019 n M atters
New M ingzhu
held yet on July
Ceramic Group
22, 2019
Co. Ltd.
(Announc
ement
No.:
2019-091
)
Announce
ment on
the
Progress
of M ajor
Litigation
Wang Hong
No court and
construction
session July Arbitratio
engineering 232.96 No — —
has been 22,2019 n M atters
subcontracting
held yet on July
Dispute
22, 2019
(Announc
ement
No.:
2019-091
)
Announce
ment on
Dispute case of the
contract of sale No court Progress
and purchase session July of M ajor
209.6 No — —
withQuanzhou has been 22,2019 Litigation
Fengze Yumin held yet and
Trade Co., Ltd. Arbitratio
n M atters
on July
96
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
22, 2019
(Announc
ement
No.:
2019-091
)
Announce
ment on
the
Progress
of M ajor
Litigation
Sun shuhui
and
construction
Awaiting July Arbitratio
project 170.51 No — —
judgment 22,2019 n M atters
subcontract
on July
dispute
22, 2019
(Announc
ement
No.:
2019-091
)
Announce
ment on
the
Progress
of M ajor
Litigation
Construction
No court and
contract dispute
session August Arbitratio
case with Haikou 179.64 No — —
has been 3,2019 n M atters
Xingxin Stone
held yet on August
co., Ltd.
3, 2019
(Announc
ement
No.:
2019-096
)
Dispute case of Announce
No court
contract of sale ment on
session August
and purchase 345.71 No — — the
has been 3,2019
with Foshan Progress
held yet
Longmeida of M ajor
97
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Stone industry Litigation
co., Ltd. and
Arbitratio
n M atters
on August
3, 2019
(Announc
ement
No.:
2019-096
)
Other legal matters
√ Applicable □ Not applicable
Involved
amount Index to
General Decisions and Execution of Disclosure
（Ten Provision Progress disclosed
information effects decisions date
thousand information
yuan)
Other small
The full
litigations
text of the
（Among them,
2018
the amount April
2,146.18 No — — — annual
involved by the 30,2019
report on
company as the
April 30,
prosecutor is
2019
RM B 0)
IX. Punishments and rectifications
√ Applicable □ Not applicable
Type of Conclusion (if Disclosure
Name Type Reasons Disclosure date
Punishment any) index
As the As of the
An
company is disclosure date
investigation is
suspected of of this
filed or an
violating laws announcement, （www.cninfo.
administrative
and regulations the company com.cn）
Sino Great punishment is October
Other in information has not yet （Announceme
Wall Co., Ltd imposed by the 19,2018
disclosure, received the nt
China
according to China No.:2018-121）
Securities
the relevant Securities
Regulatory
provisions of Regulatory
Commission
the Securities Commission's
98
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Law of the concluding
People's comments or
Republic of decisions on
China, the relevant
CSRC has investigation
decided to matters.
initiate an
investigation in
the company.
The Shenzhen
Decision on
Supervision
Administrative
Bureau of
Supervision
China
M easures of
Securities （www.cninfo.
Shenzhen
Regulatory Be investigated com.cn）
Sino Great Supervision
Other Commission by a competent M arch 7,2019 （Announceme
Wall Co., Ltd Bureau of
will conduct authority nt
China
on-site No.:2019-022）
Securities
inspections of
Regulatory
the company
Commission
from M ay 2018
([2019] No.11)
onwards
Decision on
Administrative
The Shenzhen Supervision
Supervision M easures of
Bureau of Shenzhen
China Supervision
Chen Lue, Tian Securities Bureau of （www.cninfo.
Wei, Tang Regulatory Be investigated China com.cn）
Senior
Xianyong, Cui Commission by a competent Securities M arch 7,2019 （Announceme
executives
Hongli, Yang will conduct authority Regulatory nt
Chunling on-site Commission No.:2019-022）
inspections of [2019] No.12
the company [2019]No.13
from M ay 2018 [2019]No.14
onwards [2019]No.15
and
[2019]No.16
The Shenzhen Decision on （www.cninfo.
Be investigated
Supervision Administrative com.cn)
Chen Lue Director by a competent M arch 7,2019
Bureau of Supervision （Announceme
authority
China M easures of nt
99
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Securities Shenzhen No.:2019-022）
Regulatory Supervision
Commission Bureau of
will conduct China
on-site Securities
inspections of Regulatory
the company Commission
from M ay 2018 ([2019] No.12)
onwards
Explanation on Rectification
√Applicable □Not applicable
On October 18, 2018, the company received the notice of investigation issued by the China Securities Regulatory
Commission (No: JDC Zi No. 18041). As the company is suspected of violating laws and regulations in
information disclosure, according to the relevant provisions of the Securities Law of the People's Republic of
China, the CSRC has decided to initiate an investigation in the company. On March 6, 2019, the company
received the Shenzhen Securities Regulatory Bureau's Decision on Administrative Supervision Measures (No
2019] 11, No. [2019] 12 , No. [2019] 13 ,No. [2019] 14 , No. [2019] 15, and No. [2019] 16) showing that the
Shenzhen Securities Regulatory Bureau had carried out on-site inspection of the company since May 2018, and
the Shenzhen Securities Regulatory Bureau had filed a case for investigation on the illegal disclosure of relevant
information found in the inspection; In addition, through inspection, it is also found that the company had the
following problems "I. The income cost accounting is not standardized, and expenses are charged through
out-of-account fund accounts; II. It did not disclose the changes in major items in a timely manner, the preparation
of performance forecasts and performance report is not prudent; III. It has capital exchanges of no real business
foundation with a number of companies, and illegal foreign financial assistance; IV The relevant management
system for raising funds is not perfect; V Registration management for information insider is not standardized".
The Shenzhen Securities Regulatory Bureau decided to take corrective measures against the company, the
company's relevant directors, senior management personnel, and issue warning letters to Mr. Chen Lue, Mr. Tian
Wei, Mr. Tang Xianyong, Ms. Cui Hongli, Ms. Yang Chunling (see Announcements No. 2018-121, and 2019-022
In response to the relevant problems found during the inspection against the company, the company has made
serious rectification in accordance with the matters involved in the Decision on Taking Corrective Measures
against Sino Great Wall Co., Ltd. ([2019] No.11). Please refer to the company's Rectification Report on Issues
Related to the Decision on Administrative Supervision Measures of Shenzhen Securities Regulatory Bureau
(Announcement No.: 2019-031) published on Cninf (www.cninfo.com.cn) on April 11, 2019 for details
concerning the person responsible for rectification, rectification period, rectification measures, etc.
In addition to the above matters, Shenzhen Securities Regulatory Bureau requires the company to employ a third party independent
agency to conduct special inspections on the problems of NPP-0057 in Xingang, Qatar, Cambodia Refinery and NAGA Casino Phase
II project in Cambodia. The company has engaged a third-party independent organization, Asia Pacific (Group)
Certified Public Accountants (Special General Partnership), to carry out verification of the above-mentioned
projects and issue an independent verification report [YK A ZS Zi (2019) No. 0057]. For details, please refer to
the Independent Verification Report of Sino Great Wall Co., Ltd. published by the company on the same day on
Juchao Information Network (www.cninfo.com.cn).
As of the disclosure date of this announcement, the company has not yet received the China Securities Regulatory
Commission's concluding comments or decisions on relevant investigation matters. The company shall perform its
100
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
information disclosure obligations in accordance with the relevant provisions of the Listing Rules of Shenzhen
Stock Exchange and disclose a risk alert announcement once a month.
X. Credit conditions of the Company as well as its Controlling shareholder and actual Controller
√ Applicable □ Not applicable
(I) The integrity of the company and its subsidiaries
1. The company and its wholly-owned subsidiary Sino International Engineering Co., Ltd. were incorporated into
the list of defaulters due to breach by the Beijing Second Intermediate People's Court due to the dispute with
Shaanxi International Trust Company Limited over financial loan contract. Currently, the case is in enforcement.
2. Due to a dispute with CCB International Asset Management (Shanghai) Co., Ltd over financial loan contract,
the company and its wholly-owned subsidiary Sino International Engineering Co., Ltd. were incorporated into the
list of defaulters by the Beijing Third Intermediate People's Court. Currently, the case is in enforcement.
3. The company was incorporated into the list of defaulters by Beijing Third Intermediate People's Court due to
the dispute with Bairui Trust Co., Ltd. over financial loan contract. Currently, the case is in enforcement.
4. Due to a dispute with China Railway Trust Co., Ltd. over financial loan contract, the company and its
wholly-owned subsidiary Sino International Engineering Co., Ltd. were incorporated into the list of defaulters by
the Chengdu Intermediate People's Court. Currently, the case is in enforcement.
5. The company and its wholly-owned subsidiary Sino International Engineering Co., Ltd. were incorporated into
the list by the Haidian District People's Court of Beijing for notarizing the enforcement of creditor's rights
documents with Beijing Zhongguancun Sci-tech Financing Guaranty Co., Ltd. Currently, the case is under trial.
For details of the above cases, please refer to the c ompany's announcements 2018-107, 2018-125, 2018-109,
2019-018, 2019-019, 2019-015 published on Cninf (www.cninfo.com.cn) on September 14, 2018, October 23,
2018, September 18, 2018, February 19, 2019, February 20, 2019 and February 13,2019.
6.The company was incorporated by the People's Court of Changning District of Shanghai into the list of
defaulters due to a dispute over the internet service contract with Shanghai Ctrip Hongrui International Travel
Service Co., Ltd. and Shanghai Huacheng Southwest International Travel Service Co., Ltd. Currently, the case is
in enforcement.
7. 2. Due to disputes over bills with Tongchuan New District Hengxin Building Materials Co., Ltd., Xi'an Bihui
Road and Bridge Engineering Co., Ltd. and Jiaozuo Junpeng Coal Co., Ltd., the company was incorporated by
Shenzhen Longgang District People's Court into the list of defaulters. At present, the above cases are all in the
process of implementation.
(II) Integrity of controlling shareholders and actual controllers
1. Chen Lue, the controlling shareholder and actual controller of the company, has been incorporated into the list
of defaulters, due to his failure to perform the obligations specified in the effective legal documents, including:
1) In the dispute between the company and Shanxi International Trust Co., Ltd. over financial loan contract, Chen
Lue, as the guarantor and counter-guarantor, assumed joint and several guarantee liability for the above debts and
was incorporated into the list of defaulters by the Beijing Second Intermediate People's Court. Currently, the case
is in enforcement.
2) In the dispute between the company and China Railway Trust Co., Ltd. over financial loan contract, Chen Lue,
as the guarantor of the counter-guarantor, assumed joint guarantee liability for the debt and was incorporated into
the list of defaulters by the Chengdu Intermediate People's Court. Currently, the case is in enforcement.
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Sino Great Wall Co., Ltd. The Semi-annual Report 2019
3) Chen Lue was incorporated into the list of defaulters by Tongzhou District People's Court of Beijing for a
dispute over private lending with Xia Honggan. Currently, the case is in the process of enforcement.
4) In the case of notarization of creditor's rights documents between the company and Beijing Zhongguancun
Sci-tech Financing Guaranty Co., Ltd., Chen Lue, as the guarantor and counter-guarantor, assumed joint and
several guarantee liabilities for the debts and was incorporated into the list of defaulters by the Haidian District
People's Court of Beijing. Currently, the case is under trial.
5) In the dispute between the company and Bairui Trust Co., Ltd. over financial loan contract, Chen Lue, as the
guarantor and counter-guarantor, assumed joint guarantee liability for the debt and was incorporated into the list
of defaulters by the Beijing Third Intermediate People's Court. Currently, the case is in enforcement.
6) In the case of dispute over the financial loan contract between the Company and CCB International Asset
Management (Shanghai) Co., Ltd., Chen Lue as the counter guarantor assumed a joint surety bond liability for the
debt and was incorporated by Beijing Third Intermediate People's Court into the list of defaulters. Currently, the
case is in enforcement.
Regarding particulars of the preceding case, please refer to Announcement 2018-107, 2018-125, 2019-015,
2019-019, 2019-018, and 2018-109 published by the Company at Cninf (www.cninfo.com.cn) on September 14,
2018, October 23, 2018, February 13, 2019, February 20, 2019, February 19, 2019 and September 18, 2018
respectively.
7）In the dispute over private loans between Chen Changfeng, Sheng Xiaomei and Zhao Jirong, Chen Lv and Sino
Great Wall Investment (Beijing) Co., Ltd., as guarantors, were jointly and severally liable for the debts, and were
listed by the Tongzhou District People's Court of Beijing into the list of defaulters. At present, the case ends this
execution.
8）In the dispute over private loans between Shi Jiajian, Hong Qilan and Zhao Jirong, Chen Lv, as guarantors,
were jointly and severally liable for the debts, and were listed by the Tongzhou District People's Court of Beijing
into the list of defaulters. At present, the case ends this execution.
9）Chen Lue was incorporated into the list of defaulters by Tongzhou District People's Court of Beijing for a
dispute over private lending with Xia Honggan. Currently, the case is in the process of enforcement.
2. The Company's holding shareholder and actual controller Chen Lue held 583,454,556 shares of the Company,
accounting for 34.36% of its total capital stock. In the report period, all the shares held by Mr. Chen Lue were
frozen and waited for being frozen, attributable to a property preservation caused by his assumption of personal
joint guarantee for a subsidiary to carry out business financing.
For more information, please refer to Announcement on Waiting to Freeze Shares of the Holding Shareholder
2018-112, 2018-124, 2018-139, 2018-143, 2018-145 ,2018-150.2018-153,2018-155,2019-017, 2019-025,
2019-049,2019-073, 2019-082, 2019-086 and 2019-097 published by the Company at Cninf (www.cninfo.com.cn)
on September 22, 2018, October 23, 2018, November 2, 2018, November 14, 2018, November 15, 2018,
November 20, 2018, November 28, 2018 ,December 22, 2018, February 6,2019 and March 27, 2019 , May 7,
2019, June 12, 2019, June 28, 2019, July 9, 2019 and August 7, 2019 respectively.
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, 205, at which the Proposal on the First Phase of Employee Stock Ownership Plan (draft) of
102
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Shenzhen Victor Onward Textile Industrial Co., Ltd was examined and approved.
Please refer to the published on November 7, 2015 and November 24,2015 (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 bas ic
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 (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 833,187 shares which account for 0.1864% of the
company's total share capital, and the total turnover is RMB37,291,630. 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 (www.cninfo.com.cn) on the relevant announcement.
On November 20, 2017, with the consent of more than two-thirds of the holders presented at the holders’
meeting, the “Proposal on the one-year extension of the company's first phase ESOP” was passed. On November
21, 2017, the company held the twenty-sixth meeting of the seventh board of directors, which reviewed and
adopted the “Proposal on the one-year extension of the company's first phase ESOP”, and according to the
voting result of the holders’ meeting, the board agreed to extend the duration of the company's first phase ESOP
by one year, meaning that the ESOP can sell shares within the afore-said extension of one year (until November
23, 2018).If the shares are not sold before the expiration of the extended one year, a further meeting of the
holders and the meeting of the board of directors can be convened two months before the expiration to consider
the follow-up matters. .Please refer to the published on November 22, 2017 (www.cninfo.com.cn) on the
relevant announcement.
On November 20, 2018, attendees of the holders' meeting with 2/3 of shares agreed and adopted the Proposal on
Extending the Company's First Staff Shareholding Plan for One Year. On November 21, 2018, the Company
convened the second meeting of the eighth Board of Directors, deliberating and adopting the Proposal on
Extending the Company's First Staff Shareholding Plan for One Year. According to voting results at the holders'
meeting, the Board of Directors agreed to extend the Company's first staff shareholding plan for one year, i.e., the
former expiry date was extended to one year later--November 23, 2019. In the duration, once the Company's
shares held in the staff shareholding plan are sold out, the staff shareholding plan may be terminated beforehand.
If shares are not sold upon the expiry of the extended period, a holders' meeting and meeting of Board of Directors
may be convened 2 months before the expiration to deliberate relevant following matters. Please refer to the
published on November 22, 2018 (www.cninfo.com.cn) on the relevant announcement.
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Sino Great Wall Co., Ltd. The Semi-annual Report 2019
XII.Material related transactions
1. Related transactions in connection with daily operation
□ Applicable √ Not applicable
No such cases in the reporting period.
2. Related-party transactions arising from asset acquisition or sold
□Applicable √ Not applicable
No such cases in the reporting period.
3. Related-party transitions with joint investments
□Applicable √ Not applicable
No such cases in the reporting period.
4. Credits and liabilities with related parties
□Applicable √ Not applicable
No such cases in the reporting period.
5. Other significant related-party transactions
□Applicable √ Not applicable
No such cases in the reporting 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. Significant contracts and execution
1.Entrustments, contracting and leasing
（1）Entrustment
□Applicable √ Not applicable
No such cases in the reporting period.
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Sino Great Wall Co., Ltd. The Semi-annual Report 2019
（2）Contracting
□Applicable √ Not applicable
No such cases in the reporting period.
（3）Leasing
√Applicable □ Not applicable
Notes
During the reporting period, the company's leasing expenses were mainly the company’s office space and staff
quarters’ capital expenditures.
The company's profit and loss has reached more than 10% of the company's total profit during the reporting
period
□ Applicable √ Not applicable
Nil
2.Guarantees
√ Applicable □ Not applicable
（1）Guarantees
Ten thousand yuan
External Guarantee (Exclude controlled subsidiaries)
Relevant
Guaran
disclosur
tee
e Date of Comple
Amount for
date/No. happening Actual te
Name of the of Guarantee Guarantee associat
of (Date of mount of implem
Company Guarante type term ed
the signing guarantee entation
e parties
guarantee agreement) or not
(Yes or
d
no)
amount
Guarantee of the company for its subsidiaries
Amount
of
Actual date of
guarantee Amount Actual Comple Related
Guarantee occurring Type of
and date of the amount of Term ted or guarant
provided to (signing date guarantee
of guarantee guarantee not ee
of agreements
disclosur
e
Sino M ay 27,196.1 The joint
M ay 10,2019 27,196.18 1 year No Yes
International 28,2019 8 liability
105
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
guaranty
The joint
Sino M ay February
12,000 12,000 liability 1 year No Yes
International 20,2017 12,2018
guaranty
The joint
Sino April M arch
7,000 7,000 liability 1 year Yes Yes
International 4,2019 31,2019
guaranty
The joint
Sino M arch August
11,990 11,990 liability 1 year No Yes
International 29,2018 22,2018
guaranty
The joint
Sino M ay
40,000 July 25,2017 40,000 liability 1 year No Yes
International 20,2017
guaranty
The joint
Sino M ay
22,000 June 30,2017 22,000 liability 1 year No Yes
International 20,2017
guaranty
The joint
Sino M ay October
20,000 20,000 liability 1 year No Yes
International 20,2017 18,2017
guaranty
The joint
Sino M ay November
10,000 10,000 liability 1 year No Yes
International 20,2017 22,2017
guaranty
The joint
Sino M ay November
10,000 10,000 liability 1 year No Yes
International 20,2017 30,2017
guaranty
The joint
Sino M arch M arch
8,400 8,400 liability 30 months No Yes
International 31,2016 31,2017
guaranty
The joint
Sino M ay February
8,000 8,000 liability 1 year No Yes
International 20,2017 13,2018
guaranty
The joint
Sino M ay December
20,000 20,000 liability 1 year No Yes
International 20,2017 28,2017
guaranty
The joint
Sino June
8,000 M ay 29,2019 8,000 liability 1 year No Yes
International 21,2019
guaranty
Wuhan The joint
M arch 10,889.8 January
Commercial 10,889.81 liability 3 years No Yes
31,2016 1 18,2017
Worker Hospital guaranty
106
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
The joint
Sino Great Wall M arch September
3,500 3,500 liability 1 year No Yes
Jianye 29,2018 30,2018
guaranty
Sino Great Wall
M edical The joint
April December
Investment 3,200 3,200 liability 1 year No Yes
4,2019 21,2018
M anagement guaranty
Co., Ltd.
Sino Great Wall
M edical The joint
April M arch
Investment 3,400 3,400 liability 1 year No Yes
4,2019 11,2019
M anagement guaranty
Co., Ltd.
Total of guarantee for Total of actual guarantee
subsidiaries 800,000 for subsidiaries in the 225,575.99
approved in the Period (B1) Period (B2)
Total of guarantee for Total of actual guarantee
subsidiaries 800,000 for subsidiaries at 225,575.99
approved at Period-end (B3) Period-end (B4)
Guarantee of the subsidiaries for the controlling subsidiaries
Relevant
Guaran
disclosur
Comple tee
e Date of
te for
Name of the date/No. Amount happening Actual
Guarantee Guarantee implem associat
Company of of (Date o mount of
type term entation ed
guaranteed the guarantee signing guarantee
or parties
guarantee agreement)
not (Yes or
d
no)
amount
Total of Company’s guarantee（namely total of the large three aforementioned）
Total of guarantee in the
Total of actual guarantee in
Period 800,000 225,575.99
the Period（A2+B2+C2）
（A1+B1+C1）
Total of actual guarantee at
Total of guarantee at
800,000 Period-end 225,575.99
Period-end（A3+B3+C3）
（A4+B4+C4）
The proportion of the total amount of actually guarantee in
-190.46%
the net assets of the company(A4+B4+C4)
Including:
107
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Amount of guarantee for shareholders, actual controller and
0
its associated parties（D)
The debts guarantee amount provided for the Guaranteed
parties whose assets-liability ratio exceed 70% directly or 225,575.99
indirectly（E）
Amount of guarantee exceeds 50% of net capital（F） 141,196.18
Total Amount（D+E+F） 366,772.17
Explanations on possibly bearing joint and several
Nil
liquidating responsibilities for undue guarantees (If any)
Explanations on external guarantee against regulated
Nil
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
Nil
XV.Social responsibilities
1.Major environmental protection
The Listed Company and its subsidiary whether belongs to the key sewage units released from environmental
protection department
No
Listed companies and their subsidiaries are not key pollutant discharging units announced by environmental
protection authorities
2. Precise poverty alleviation social responsibility
(1) Targeted poverty alleviation program
There is no precise poverty alleviation carried out in the period and no follow plan either.
108
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
(2) Annual precision poverty alleviation
(3) Accuracy of poverty alleviation
Index M easurement Quantity / Status
unit
I. General situation —— ——
II. Breakdown Input —— ——
1. Poverty alleviation by industrial development —— ——
2. Poverty alleviation by transfer employment —— ——
3. Poverty alleviation by relocation —— ——
4. Educational poverty alleviation —— ——
5. Health poverty alleviation —— ——
6. Ecological protection poverty alleviation —— ——
7. Guarantee of all the details —— ——
8. Social poverty alleviation —— ——
9. Other projects —— ——
III. Awards (Content and level) —— ——
（4）Subsequent targeted poverty alleviation program
XVI.Other material events
√ Applicable □Not applicable
1. On February 12, 2018, the Company convened the twenty-ninth meeting of the seventh Board of Directors,
deliberating and adopting a Proposal on Acquis ition of Shares of UPL Laos Co., Ltd., according to which, UPL
(MALAYSIA) SDN. BHD. (hereinafter referred to as UPL Malays ia) transfered 30% of shares of UPL Laos Co.,
Ltd. (hereinafter referred to as UPL Laos) to the Company by signing an Agreement of Equity Cooperation on
Laos Vientiane Dongphosy Special Economic Zone Project, UPL Laos entered into a franchise agreement for
50+40 years with Laos Government by cash contribution of USD 10 million and advance payment of USD 20
million for project construction put together as the consideration of acquisition and took full charge of matters of
development of Dongphosy as the franchisee to Dongphosy Special Economic Zone (refer to the Company's
Announcement 2018-020 and 021). On June 12, 2018, the Company agreed with UPL Malays ia on transfer of
10% of shares, hence the Company's shareholding ratio rose to 40%. Whereas the Company is experiencing a
financial difficulty at the moment and has failed to perform duties of advance payment and construction in the
equity agreement and duties in the loan agreement, the Malays ian shareholder UPL Malaysia sent a latter in
request for a return of equity and filed an arbitrat ion to Hong Kong International Arbitration Centre on the dispute
of equity in March 2019. Right now, the Company has hired an arbitrator duly in response to the suit.
2. . On February 23, 2018, the Company received the “Mekong River Villa Project Bid-Winning Notice” issued
by OXLEYEMERALD (CAMBODIA) CO., LTD, and Sino International won the bid for the “Mekong River
Villa Project” in Cambodia, with the bid amount of USD 46.5 million (equivalent to RMB 295 million) (See the
109
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
2018-035 announcement of the Company for details). As of the end of the reporting period, most of the on-site
piling construction work has been completed, and the relevant civil work has been in progress. As of the
disclosure date of this report, both parties have agreed to terminate the contract and the project is in the process of
settlement.
3. The Company convened the thirty-seventh meeting of the seventh Board of Directors on September 2, 2018,
planned to invest and found "Yinglonghu Development Co., Ltd." (hereinafter referred to as the Project Company,
whose final name is subject to the name approved in industrial and commercial registration) with Chongqing
Circum-Yinglonghu Industrial Co., Ltd. (hereinafter referred to as Party A) and 7 village committees concerned at
the project location (hereinafter referred to as Party C). The registered capital of the Project Company was RMB
125 million, wherein Party A subscribed capital by earlier input of physical assets worth RMB 23.75 million
(subject to the audited amount) in the Yinglong Project, accounting for 19% of the registered capital; Sino Great
Wall contributed RMB 100 million by currency, accounting for 80% of the registered capital; Party C subscribed
RMB 1.25 million by currency or contribution in kind, accounting for 1% of the registered capital (refer to the
Company's Announcement 2018-104 and 105). At the moment, the Project Company has been registered and
project planning and design are underway.
4. The company held the sixth meeting of the eighth Board of Directors on April 12, 2019, deliberated and passed
the Proposal on Adjusting the Company's Organizational Structure and agreed to adjust the operating organization
and business structure of the company's headquarters. The company will implement a division system by sections
and set up four operating organizations, including the domestic traditional construction business sector (division),
infrastructure business sector (division), overseas business sector (division), smart housing and medical care
business sector (division). After this adjustment, the organizational structure of the company's headquarters is as
follows: eight functional departments and offices, including the comprehensive office, the finance department and
the human resources department, as well as the above-mentioned four operating institutions (see the company's
announcement No 2019-028 for details).
5.In May 2019, the company received a notice from Mr. Chen Lv, the actual controller and controlling shareholder,
that Mr. Chen Lv intended to introduce the reorganizing party Chongqing Nanbu Xincheng Industrial Investment
Group Co., Ltd. (hereinafter referred to as "Nanbu Xincheng Group"), and signed a Letter of Intent for
Cooperation on the judicial reorganization to be carried out by the company. Nanbu Xincheng Group has reached
a preliminary intention to participate as the reorganizing party and promote the reorganization process of the
company. If the judicial reorganization can be successfully completed, Nanbu Xincheng Group will become the
controlling shareholder of the company, and Mr. Chen Lv will become the second largest shareholder of the
company (see Announcement No. 2019-064 of the company for details). As of the disclosure date of the report,
Nanbu Xincheng has organized professional intermediaries such as securities dealers, accountants and lawyers to
formally carry out due diligence. Nanbu Xincheng Group will decide whether to further promote cooperation
based on the results of due diligence.
6. On July 24, 2019, the company received the application for reorganization submitted by the creditor Bihui
Road and Bridge served by the court. Bihui Road and Bridge applied to the court for reorganization of the
company on the grounds that the company was unable to repay the debts due and obviously lacked solvency. As of
the disclosure date of this report, the company has not received the court's ruling on Bihui Road and Bridge's
application for reorganization of the company. Whether the application of creditor Bihui Road and Bridge can be
accepted by the court and whether the company will enter the reorganization process are still with major
uncertainty (see Announcement No 2019-092 of the company for details).
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Sino Great Wall Co., Ltd. The Semi-annual Report 2019
XVII. Material events of subsidiaries
□ Applicable √ Not applicable
111
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
VI. Change of share capital and shareholding of Principal Share holders
I.Changes in share capital
1. Changes in share capital
In shares
Before the change Increase/decrease（+，-） After the Change
Amount Proporti Capitali
on zation
Share of
Bonus Quantit Proporti
allotme commo Other Subtotal
shares y on
nt n
reserve
fund
I. Share with conditional 438,857 -304,96 -304,96 438,552
25.84% 25.82%
subscription ,067 9 9 ,098
438,857 -304,96 -304,96 438,552
3.Other domestic shares 25.84% 25.82%
,067 9 9 ,098
Domestic natural person 438,857 -304,96 -304,96 438,552
25.84% 25.82%
shares ,067 9 9 ,098
II. Shares with
1,259,3 1,259,6
unconditional 74.16% 304,969 304,969 74.18%
87,944 92,913
subscription
1.Common shares in 995,584 995,889
58.62% 304,969 304,969 58.64%
RM B ,713 ,682
2.Foreign shares in 263,803 263,803
15.53% 0 0 15.53%
domestic market ,231 ,231
III. Total of capital 1,698,2 100.00 1,698,2 100.00
0 0
shares 45,011 % 45,011 %
Reasons for share changed
□Applicable √Not applicable
Approval of Change of Shares
□Applicable √Not applicable
Ownership transfer of share changes
□Applicable √Not applicable
Progress on any share repurchase:
□ Applicable √ Not applicable
Progress on reducing the repurchased shares by means of centralized bidding:
□ Applicable √ Not applicable
112
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to
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
In shares
Number of
Number of Restricted
Initial Increased Reason for Date of
Shareholder Unrestricted Shares in the
Restricted Restricted Restricted Restriction
Name Shares This End of the
Shares Shares This Shares Removal
Term Term
Term
The major asset
restructuring
and the issue of
Chen Lue 55,995,934 0 0 55,995,934 shares to --
purchase assets
and raise
matching funds
Executive
Chen Lue 381,594,983 0 0 381,594,983 Not applicable
locking stock
Executive
Li Erlong 619,050 154,725 0 464,325 Not applicable
locking stock
Executive
Yang Chunling 46,125 0 0 46,125 Not applicable
locking stock
Executive
Liang Rong 600,975 150,244 0 450,731 Not applicable
locking stock
Total 438,857,067 304,969 0 438,552,098 -- --
II.Issuing and listing
□ Applicable √ Not applicable
III. Shareholders and shareholding
In Shares
Total number of common 69,421 Total number of preferred 0
113
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
shareholders at the end of shareholders that had restored
the reporting period the voting right at the end of
the reporting period (if any)
(note 8)
Shareholding of shareholders holding more than 5% shares
Number Number of share
Amount Amount
Proportio of Changes pledged/frozen
of of
Nature of n of shares in
Shareholders restricte un-restric
shareholder shares held at reporting State of
d shares ted shares Amount
held（%） period period share
held held
-end
Domestic 583,454 437,590 145,863,6 Pledge 583,454,462
Chen Lue 34.36% 0
Natural person ,556 ,917 39 Freeze 583,454,556
STYLE-SUC
Foreign legal 92,970, 92,970,91
CESS 5.47% 0 0
person 910 0
LIM ITED
Union Domestic Non-
87,935, 87,935,92
Holdings Co., State-owned 5.18% 0 0
921 1
Ltd. legal person
Domestic 54,800, 54,800,45
He Feiyan 3.23% 0 0 Freeze 54,800,458
Natural person 458 8
Jiutai Fund－
Bank of
Communicati
ons － Jiutai
Huitong No.2 40,696, 40,696,77
Other 2.40% 0 0
specific 772 2
customer
asset
management
plan
Rich Crown
Foreign legal 23,235, 23,235,31
Investment 1.37% 0 0
person 313 3
Co., Ltd.
Domestic 15,000, 10,555,00 15,000,00
Lei Shizhang 0.88% 0
Natural person 000 0 0
Qinghai Heyi
Domestic Non-
Industry 13,357, 13,357,08
State-owned 0.79% 0 0 Pledge 13,357,084
Development 084 4
legal person
Co., Ltd.
Huang Domestic 0.68% 11,480, -820,000 0 11,480,00
114
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Huaian Natural person 000 0
Domestic 7,044,3
Liu Yong 0.41% 4,745,500 0 7,044,352
Natural person 52
Strategy investors or general legal
person becomes top 10
Not applicable
shareholders due to rights issued
(if applicable)See Notes 3）
The largest shareholder of M r. Chen Lue and the Fourth largest shareholder of M s. He
Feiyan aforesaid are persons acting in concerted; The controlling shareholder of the
Explanation on associated above-mentioned third shareholder Shenzhen Union Holdings Co.,Ltd. And Sixth
relationship among the aforesaid shareholder Rich Crown Investment Co., Ltd.. Is Union Development Group Ltd.; It is
shareholders unknown whether there is relationship between other shareholders and whether they are
persons taking concerted action specified in the Regulations on Disclosure of Information
about Change in Shareholding of Shareholders of Listed Companies.
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
RM B Common
Che Lue 145,863,639 145,863,639
shares
Foreign shares
placed in
STYLE-SUCCESS LIM ITED 92,970,910 92,970,910
domestic
exchang
RM B Common
Union Holdings Co., Ltd. 87,935,921 87,935,921
shares
RM B Common
He Feiyan 54,800,458 54,800,458
shares
Jiutai Fund－Bank of
Communications－Jiutai Huitong RM B Common
40,696,772 40,696,772
No.2 specific customer asset shares
management plan
Foreign shares
placed in
Rich Crown Investment Co., Ltd. 23,235,313 23,235,313
domestic
exchange
RM B Common
Lei Shizhang 15,000,000 15,000,000
shares
Qinghai Heyi Industry RM B Common
13,357,084 13,357,084
Development Co., Ltd. shares
Huang Huaian 11,480,000 Foreign shares 11,480,000
115
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
placed in
domestic
exchange
RM B Common
Liu Yong 7,044,352 7,044,352
shares
Explanation on associated
relationship or consistent action M r. Chen Lue and M s. He Feiyan are the unanimous persons; Union Development Group
among the top 10 shareholders of Co., Ltd. is the controlling shareholder of the Above –mentioned shareholder Union
non-restricted negotiable shares Holdings Co., Ltd. And Rich Grown Investment Co., Ltd., It is unknown whether there is
and that between the top 10 relationship between other shareholders and whether they are persons taking concerted
shareholders of non-restricted action specified in the Regulations on Disclosure of Information about Change in
negotiable shares and top 10 Shareholding of Shareholders of Listed Companies.
shareholders
Notes to the shareholders
involved in financing securities Not applicable
(if any) (See 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.
116
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VII. Situation of the Preferred Shares
□Applicable √Not applicable
The Company had no preferred shares in the reporting period
117
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VIII. Information about Directors, Supervisors and Senior Executives
I. Change in shares held by directors, supervisors and senior executives
□Applicable √Not applicable
There was no change in shareholding of directors, supervisors and senior management staffs, for the specific
information please refer to the 2018 Annual Report.
II. Changes in directors, supervisors and senior management staffs
√ Applicable □ Not applicable
Name Title Type Date Reason
Deputy
Cui Hongli General Dismissal July 29,2019 Resigned due to personal reasons
M anager
118
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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 but not folly cashed on the approval date of annual report
No
119
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
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.
In RM B
Items June 30,2019 December 31,2018
Current asset：
M onetary fund 161,407,308.22 658,714,886.48
Settlement provision
Outgoing call loan
Transactional financial assets
Financial assets measured at fair
value with variations accounted into
current income account
Derivative financial assets
Notes receivable 44,816,417.70 1,518,790.00
Account receivable 3,268,131,916.96 4,202,594,258.24
Financing of receivables
Prepayments 326,344,231.02 220,261,619.13
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts
receivable
Other account receivable 1,609,942,861.49 2,186,223,361.40
Including：Interest receivable
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Dividend receivable
Repurchasing of financial assets
Inventories 997,074,459.45 717,531,578.23
Contract assets
Assets held for sales 105,075,792.00 105,075,792.00
Non-current asset due within 1 year
Other current asset 3,975,630.09 5,795,797.44
Total of current assets 6,516,768,616.93 8,097,716,082.92
Non-current assets：
Loans and payment on other’s behalf
disbursed
Debt investment
Available for sale of financial
10,338,500.00
assets
Other investment on bonds
Expired investment in possess
Long-term receivable 16,708,613.19 16,708,613.19
Long term share equity investment 106,837,810.83 106,837,810.83
Other equity instruments investment
Other non-current financial assets
Property investment
Fixed assets 139,240,017.20 158,746,947.91
Construction in progress 36,805,894.03 36,697,284.04
Production physical assets
Oil & gas assets
Use right assets
Intangible assets 91,036,651.07 99,921,251.67
Development expenses
Goodwill 27,268,234.53 27,268,234.53
Long-germ expenses to be
3,038,767.30 6,727,688.90
amortized
Deferred income tax asset 117,317,681.38 117,983,727.91
Other non-current asset 916,588,199.85 924,509,792.99
Total of non-current assets 1,454,841,869.38 1,505,739,851.97
Total of assets 7,971,610,486.31 9,603,455,934.89
Current liabilities
121
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Short-term loans 3,306,944,094.49 2,862,584,629.01
Loan from Central Bank
Borrowing funds
Transactional financial liabilities
Financial liabilities measured at fair
value with variations accounted into
current income account
Derivative financial liabilities
Notes payable 396,643,774.40 1,034,087,499.72
Account payable 833,996,925.55 892,155,630.43
Advance receipts 521,531,072.64 478,101,743.92
Selling of repurchased financial
assets
Deposit taking and interbank
deposit
Entrusted trading of securities
Entrusted selling of securities
Employees’ wage payable 75,011,224.23 86,414,858.86
Tax payable 384,786,118.81 393,957,887.52
Other account payable 2,217,993,070.71 2,212,412,970.43
Including：Interest payable 505,034,931.59 280,806,670.49
Dividend payable 8,392,335.45 8,541,818.64
Fees and commissions payable
Reinsurance fee payable
Contract Liabilities
Liabilities held for sales
Non-current liability due within 1
975,719,981.55 975,719,981.55
year
Other current liability
Total of current liability 8,712,626,262.38 8,935,435,201.44
Non-current liabilities：
Reserve fund for insurance
contracts
Long-term loan 120,000,000.00 120,000,000.00
Bond payable 266,242,374.52 254,801,342.47
Including：preferred stock
122
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Sustainable debt
Lease liability
Long-term payable 276,923.55 322,990.35
Long-term remuneration payable to
staff
Expected liabilities 2,958,723.15 2,958,723.15
Deferred income
Deferred income tax liability 23,509,703.41 24,369,456.18
Other non-current liabilities
Total non-current liabilities 412,987,724.63 402,452,512.15
Total of liability 9,125,613,987.01 9,337,887,713.59
Owners’ equity
Share capital 1,698,245,011.00 1,698,245,011.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves -1,298,846,540.07 -1,298,846,540.07
Less：Shares in stock
Other comprehensive income -56,089.18 -50,380.95
Special reserve 18,250,420.71 21,026,082.43
Surplus reserves 84,394,441.23 84,394,441.23
Common risk provision
Retained profit -1,686,340,531.63 -269,566,140.13
Total of owner’s equity belong to the
-1,184,353,287.94 235,202,473.51
parent company
M inority shareholders’ equity 30,349,787.24 30,365,747.79
Total of owners’ equity -1,154,003,500.70 265,568,221.30
Total of liabilities and owners’ equity 7,971,610,486.31 9,603,455,934.89
Legal Representative: Chen Lue
Person in charge of accounting: Yang Chunling
Accounting Dept Leader: Yang Chunling
123
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
2. Balance sheet of Parent Company
In RM B
Items June 30,2019 December 31, 2018
Current asset：
M onetary fund 46,772,355.36 46,778,625.47
Transactional financial assets
Financial assets measured at fair
value with variations accounted into
current income account
Derivative financial assets
Notes receivable
Account receivable
Financing of receivables
Prepayments
Other account receivable 2,815,822,695.73 2,986,852,664.14
Including：Interest receivable
Dividend receivable 100,000,000.00 100,000,000.00
Inventories
Contract assets
Assets held for sales
Non-current asset due within 1
year
Other current asset 2,604,075.38
Total of current assets 2,862,595,051.09 3,036,235,364.99
Non-current assets：
Debt investment
Available for sale of financial
assets
Other investment on bonds
Expired investment in possess
Long-term receivable
Long term share equity investment 3,323,211,536.66 3,323,211,536.66
Other equity instruments investment
Other non-current financial assets
Property investment
Fixed assets 32,550.42 36,371.12
124
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Construction in progress
Production physical assets
Oil & gas assets
Use right assets
Intangible assets
Development expenses
Goodwill
Long-germ expenses to be
1,074,666.67
amortized
Deferred income tax asset
Other non-current asset 728,328,020.00 728,328,020.00
Total of non-current assets 4,051,572,107.08 4,052,650,594.45
Total of assets 6,914,167,158.17 7,088,885,959.44
Current liabilities
Short-term loans 2,192,097,807.25 2,189,866,602.21
Transactional financial liabilities
Financial liabilities measured at fair
value with variations accounted into
current income account
Derivative financial liabilities
Notes payable 28,900,000.00 29,000,000.00
Account payable 66,000,000.00 66,000,000.00
Advance receipts
Contract Liabilities
Employees’ wage payable 22,743,594.86 15,016,143.39
Tax payable 94,679,025.47 97,149,029.10
Other account payable 1,455,190,996.16 1,347,473,661.05
Including：Interest payable 421,338,124.12 243,458,030.15
Dividend payable 8,392,335.45 8,541,818.64
Liabilities held for sales
Non-current liability due within 1
866,250,000.00 866,250,000.00
year
Other current liability
Total of current liability 4,725,861,423.74 4,610,755,435.75
Non-current liabilities：
Long-term loan
125
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Bond payable
Including：preferred stock
Sustainable debt
Lease liability
Long-term payable
Long-term remuneration payable to
staff
Expected liabilities
Deferred income
Deferred income tax liability
Other non-current liabilities
Total non-current liabilities
Total of liability 4,725,861,423.74 4,610,755,435.75
Owners’ equity
Share capital 1,698,245,011.00 1,698,245,011.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 1,237,956,472.37 1,237,956,472.37
Less：Shares in stock
Other comprehensive income
Special reserve
Surplus reserves 26,309,287.00 26,309,287.00
Retained profit -774,205,035.94 -484,380,246.68
Total of owners’ equity 2,188,305,734.43 2,478,130,523.69
Total of liabilities and owners’ equity 6,914,167,158.17 7,088,885,959.44
3.Consolidated Income Statement
In RM B
Items Semi-annual of 2019 Semi-annual of 2018
I. Income from the key business 256,367,221.67 1,586,971,575.24
Incl：Business income 256,367,221.67 1,586,971,575.24
Interest income
Insurance fee earned
126
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Fee and commission received
II. Total business cost 656,035,917.57 1,604,688,029.35
Incl：Business cost 227,646,036.24 1,312,212,102.46
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 1,694,890.87 2,106,518.05
Sales expense 14,477,142.76 16,521,622.08
Administrative expense 87,163,665.56 127,907,861.56
R & D expense
Financial expenses 325,054,182.14 145,939,925.19
Including：Interest expense 326,584,927.26
Interest income 2,650,575.42
Add：Other income
Investment gain（“-”for loss） 6,596,880.93 5,171,892.51
Including: investment gains from
affiliates
Financial assets measured at
amortized cost cease to be recognized
as income
Gains from currency exchange 5,694,081.87
Net exposure hedging income
Changing income of fair value
Credit impairment loss
Impairment loss of assets -563,404,467.65 -4,183,874.66
Assets disposal income
III. Operational profit（“-”for loss） -950,782,200.75 -16,728,436.26
Add ：Non-operational income 71,623.22 179,220,495.20
Less: Non-operating expense 465,129,413.62 636,300.61
IV Total profit(“-”for loss) -1,415,839,991.15 161,855,758.33
Less：Income tax expenses 950,360.90 18,790,236.79
127
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
V Net profit -1,416,790,352.05 143,065,521.54
(I) Classification by business
continuity
1.Net continuing operating profit -1,416,790,352.05 143,065,521.54
2.Termination of operating net profit
(II) Classification by ownership
1.Net profit attributable to the owners
-1,416,774,391.50 143,999,455.72
of parent company
2.M inority shareholders’ equity -15,960.55 -933,934.18
VI. Net after-tax of other
-5,708.23 -263,008.36
comprehensive income
Net of profit of other comprehensive in
-5,708.23 -263,008.36
come attributable to owners of the pare
nt company.
（I）Other comprehensive income
items that will not be reclassified into
gains/losses in the subsequent
accounting period
1.Re-measurement of defined benefit pl
ans of changes in net debt or net assets
2.Other comprehensive income under t
he equity method investee can not be re
classified into profit or loss.
3. Changes in the fair value of
investments in other equity instruments
4. Changes in the fair value of the
company’s credit risks
5.Other
（II）
Other comprehensive income that will -5,708.23 -263,008.36
be reclassified into profit or loss.
1.Other comprehensive income under t
he equity method investee can be reclas
sified into profit or loss.
2. Changes in the fair value of
investments in other debt obligations
128
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
3.Gains and losses from changes in fair
value available for sale financial assets
4. Other comprehensive income arising
from the reclassification of financial
assets
5.Held-to-maturity investments reclassi
fied to gains and losses of available for
sale financial assets
6. Allowance for credit impairments in
investments in other debt obligations
7. Reserve for cash flow hedges
8.Translation differences in currency fi
-5,708.23 -263,008.36
nancial statements
9.Other
Net of profit of other comprehensive in
come attributable to M inority
shareholders’ equity
VII. Total comprehensive income -1,416,796,060.28 142,802,513.18
Total comprehensive income
attributable to the owner of the parent -1,416,780,099.73 143,736,447.36
company
Total comprehensive income
-15,960.55 -933,934.18
attributable minority shareholders
VIII. Earnings per share
（I）Basic earnings per share -0.8343 0.0848
(II)Diluted earnings per share -0.8343 0.0848
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: Yang Chunling
Accounting Dept Leader: Yang Chunling
4. Income statement of the Parent Company
In RM B
Items Semi-annual of 2019 Semi-annual of 2018
129
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
I. Income from the key business 0.00 117,362.07
Incl：Business cost 0.00 0.00
Business tax and surcharge
Sales expense 49,276.69 994,445.50
Administrative expense 19,086,870.66 17,904,118.30
R & D expense
Financial expenses 255,746,111.00 81,405,456.80
Including：Interest expenses 255,844,130.73
Interest income 24,977.21
Add：Other income
Investment gain（“-”for loss）
Including: investment gains from
affiliates
Financial assets measured at
amortized cost cease to be recognized
as income
Net exposure hedging income
Changing income of fair value
Credit impairment loss
Impairment loss of assets 14,942,530.91 8,438,499.87
Assets disposal income
II. Operational profit（“-”for loss） -289,824,789.26 -108,625,158.40
Add ：Non-operational income 100,000,000.00
Less：Non -operational expenses
III. Total profit(“-”for loss) -289,824,789.26 -8,625,158.40
Less：Income tax expenses
IV Net profit -289,824,789.26 -8,625,158.40
1.Net continuing operating profit -289,824,789.26 -8,625,158.40
2.Termination of operating net profit
V. Net after-tax of other
comprehensive income
（I）Other comprehensive income
items that will not be reclassified into
gains/losses in the subsequent
accounting period
1.Re-measurement of defined benefit
130
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
plans of changes in net debt or net ass
ets
2.Other comprehensive income under
the equity method investee can not b
e reclassified into profit or loss.
3. Changes in the fair value of
investments in other equity
instruments
4. Changes in the fair value of the
company’s credit risks
5.Other
（II）
Other comprehensive income that wil
l be reclassified into profit or loss.
1.Other comprehensive income under
the equity method investee can be re
classified into profit or loss.
2. Changes in the fair value of
investments in other debt obligations
3.
Gains and losses from changes in fair
value available for sale financial asset
s
4. Other comprehensive income
arising from the reclassification of
financial assets
5.Held-to-maturity investments reclas
sified to gains and losses of available
for sale financial assets
6. Allowance for credit
impairments in investments in other
debt obligations
7. Reserve for cash flow hedges
8.
Translation differences in currency fi
nancial statements
9.Other
VI. Total comprehensive income -289,824,789.26 -8,625,158.40
VII. Earnings per share
131
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
（I）Basic earnings per share
(II)Diluted earnings per share
5. Consolidated Cash flow statement
In RM B
Items Semi-annual of 2019 Semi-annual of 2018
I.Cash flows from operating activities
Cash received from sales of goods or
572,525,325.64 2,448,493,180.76
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
Cash received from interest,
commission charge and commission
Net increase of inter-bank fund
received
Net increase of repurchasing business
Net cash received by agent in
securities trading
Tax returned 968,575.59 3,369,607.31
Other cash received from business
212,666,069.55 3,596,297,555.25
operation
Sub-total of cash inflow 786,159,970.78 6,048,160,343.32
Cash paid for purchasing of
449,528,268.83 2,123,943,719.36
merchandise and services
Net increase of client trade and
advance
132
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Net increase of savings in central
bank and brother company
Cash paid for original contract
claim
Net increase in financial assets
held for trading purposes
Net increase for Outgoing call loan
Cash paid for interest, processing
fee and commission
Cash paid for policy dividend
Cash paid to staffs or paid for staffs 110,097,634.29 172,389,891.23
Taxes paid 22,079,749.38 75,707,443.61
Other cash paid for business activities 626,606,345.08 2,577,954,923.49
Sub-total of cash outflow from
1,208,311,997.58 4,949,995,977.69
business activities
Net cash generated from /used in
-422,152,026.80 1,098,164,365.63
operating activities
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 432,865.55
other long-term assets
Net cash received from disposal of
1,062,398.45
subsidiaries or other operational units
Other investment-related cash
received
Sub-total of cash inflow due to
1,495,264.00
investment activities
Cash paid for construction of fixed
assets, intangible assets and 12,179,377.50
other long-term assets
Cash paid as investment 226,429,730.78
Net increase of loan against pledge
Net cash received from subsidiaries
-35,622,112.04
and other operational units
Other cash paid for investment
133
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
activities
Sub-total of cash outflow due to
202,986,996.24
investment activities
Net cash flow generated by
-201,491,732.24
investment
III.Cash flow generated by financing
Cash received as investment 490,000.00
Including: Cash received as
investment from minor shareholders
Cash received as loans 379,941,841.39 1,170,509,245.00
Cash received from bond placing
Other financing –related cash
6,362,955.91
received
Sub-total of cash inflow from
386,304,797.30 1,170,999,245.00
financing activities
Cash to repay debts 30,000,000.00 2,282,455,158.52
Cash paid as dividend, profit, or
169,918,204.82
interests
Including: Dividend and profit paid
by subsidiaries to minor shareholders
Other cash paid for financing
activities
Sub-total of cash outflow due to
30,000,000.00 2,452,373,363.34
financing activities
Net cash flow generated by financing 356,304,797.30 -1,281,374,118.34
IV Influence of exchange rate
alternation on cash and cash -398,848.83 -4,502,184.53
equivalents
V.Net increase of cash and cash
-66,246,078.33 -389,203,669.48
equivalents
Add: balance of cash and cash
125,767,796.88 647,222,590.49
equivalents at the beginning of term
VI ..Balance of cash and cash
59,521,718.55 258,018,921.01
equivalents at the end of term
6. Cash flow statement of the Parent Company
In RM B
134
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Items Semi-annual of 2019 Semi-annual of 2018
I. Cash flows from operating
activities
Cash received from sales of goods or
rending of services
Tax returned
Other cash received from business
3,014,684.54 3,329,634,571.90
operation
Sub-total of cash inflow 3,014,684.54 3,329,634,571.90
Cash paid for purchasing of
merchandise and services
Cash paid to staffs or paid for staffs 626,668.10
Taxes paid 1,012,217.08
Other cash paid for business activities 26,695,809.22 2,256,119,534.57
Sub-total of cash outflow from
26,695,809.22 2,257,758,419.75
business activities
Net cash generated from /used in
-23,681,124.68 1,071,876,152.15
operating activities
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 and
other long-term assets
Cash paid as investment 13,000,000.00
Net cash received from subsidiaries
and other operational units
Other cash paid for investment
135
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
activities
Sub-total of cash outflow due to
13,000,000.00
investment activities
Net cash flow generated by
-13,000,000.00
investment
III. Cash flow generated by financing
Cash received as investment
Cash received as loans 755,650,000.00
Cash received from bond placing
Other financing –related ash received
Sub-total of cash inflow from
755,650,000.00
financing activities
Cash to repay debts 1,783,743,643.54
Cash paid as dividend, profit, or
91,415,896.63
interests
Other cash paid for financing
activities
Sub-total of cash outflow due to
1,875,159,540.17
financing activities
Net cash flow generated by financing -1,119,509,540.17
IV Influence of exchange rate
alternation on cash and cash
equivalents
V.Net increase of cash and cash
-23,681,124.68 -60,633,388.02
equivalents
Add: balance of cash and cash
23,708,889.90 99,547,899.86
equivalents at the beginning of term
VI ..Balance of cash and cash
27,765.22 38,914,511.84
equivalents at the end of term
7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RM B
Semi-annual of 2019
Owner’s equity Attributable to the Parent Company
M in Tota
Items Other Equity
sha Capi Less Othe Spec Surp Com Reta Othe Subt or l of
instrument
re tal : r ializ lus mon ined r otal shar own
pre Ot
136
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Ca fer Su her reser Shar Com ed reser risk profi ehol ers’
pita red stai ves es in preh reser ves prov t ders’ equit
sto na stoc ensi ve ision equit y
ck ble k ve y
de Inco
bt me
1,6
-1,2
98, 21,0 84,3 -269 235, 30,3 265,
I.Balance at 98,8 -50,
245 26,0 94,4 ,566, 202, 65,7 568,
the end of last 46,5 380.
,01 82.4 41.2 140. 473. 47.7 221.
year 40.0 95
1.0 3 3 13 51 9 30
7
0
Add: Change
of
0.00
accounti
ng policy
Correcting of
previous 0.00
errors
M erger of
entities under
0.00
common
control
Other 0.00
1,6
-1,2
II.Balance at 98, 21,0 84,3 -269 235, 30,3 265,
98,8 -50,
the beginning 245 26,0 94,4 ,566, 202, 65,7 568,
46,5 380.
of current ,01 82.4 41.2 140. 473. 47.7 221.
40.0 95
year 1.0 3 3 13 51 9 30
7
0
-1,4 -1,4 -1,4
-2,7
III.Changed -5,7 16,7 19,5 -15, 19,5
75,6
in the current 08.2 74,3 55,7 960. 71,7
61.7
year 3 91.5 61.4 55 22.0
2
0 5 0
-1,4 -1,4 -1,4
（1）Total -5,7 16,7 16,7 -15, 16,7
comprehensiv 08.2 74,3 80,0 960. 96,0
e income 3 91.5 99.7 55 60.2
0 3 8
（II）
0.00
Investment or
137
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
decreasing of
capital by
owners
1 ． Ordinary
Shares investe
0.00
d by sharehol
ders
2．Holders of
other equity i
0.00
nstruments in
vested capital
3．Amount of
shares paid
and accounted 0.00
as owners’
equity
4．Other 0.00
（III）Profit
0.00
allotment
1.Providing
of surplus 0.00
reserves
2.Providing
of common
0.00
risk
provisions
3．Allotment
to the owners
0.00
(or
shareholders)
4．Other 0.00
(IV) Internal
transferring of
0.00
owners’
equity
1.
Capitalizing
of capital 0.00
reserves (or to
capital shares)
2. 0.00
138
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Capitalizing
of surplus
reserves (or to
capital shares)
3．M aking up
losses by
0.00
surplus
reserves.
4.Change
amount of
defined
benefit plans
0.00
that carry
forward
Retained
earnings
5．Other
comprehensiv
e income
0.00
carry-over
retained
earnings
6．Other 0.00
-2,7 -2,7 -2,7
(V). Special 75,6 75,6 75,6
reserves 61.7 61.7 61.7
2 2 2
1. Provided
0.00
this year
2,77 2,77 2,77
2．Used this
5,66 5,66 5,66
term
1.72 1.72 1.72
（VI）
Other
1,6
-1,2 -1,6 -1,1 -1,1
98, 18,2 84,3 30,3
IV Balance at 98,8 -56, 86,3 84,3 54,0
245 50,4 94,4 49,7
the end of this 46,5 089. 40,5 53,2 03,5
,01 20.7 41.2 87.2
term 40.0 18 31.6 87.9 00.7
1.0 1 3 4
7 3 4 0
0
Amount in last year
139
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
In RM B
Semi-annual of 2018
Owner’s equity Attributable to the Parent Company
Other Equity
instrument Othe M ino
Total
Less r r
Spec Com of
sha Capi : Com Surp Reta share
Items pre Su owne
ializ mon
re tal Shar preh lus ined Othe Subt holde
fer sta ed risk rs’
Ca Oth reser es in ensi reser profi r otal rs’
red ina reser prov equit
pita er ves stoc ve ves t equit
sto ble ve ision y
k Inco y
ck de
me
bt
1,6
-1,2
98, 164, 84,3 1,50 2,15 2,260
I.Balance at 99,3 858, 108,6
245 231, 94,4 3,10 1,48 ,166,
the end of 49,7 242. 84,40
,01 078. 41.2 3,39 2,46 870.4
last year 01.7 13 2.89
1.0 18 3 6.72 7.52 1
4
0
Add: Change
of
accounti 0.00
ng
policy
Correcting of
previous 0.00
errors
M erger of
entities under
0.00
common
control
Other 0.00
1,6
-1,2
II.Balance at 98, 164, 84,3 1,50 2,15 2,260
99,3 858, 108,6
the beginning 245 231, 94,4 3,10 1,48 ,166,
49,7 242. 84,40
of current ,01 078. 41.2 3,39 2,46 870.4
01.7 13 2.89
year 1.0 18 3 6.72 7.52 1
4
0
-93, 148, 54,1
III.Changed -263 7,014 61,12
691, 062, 08,0
in the current ,008. ,321. 2,374
786. 848. 53.1
year 36 82 .96
53 03 4
140
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
143, 143,
（1）Total -263 -933, 142,8
999, 736,
comprehensi ,008. 934.1 02,51
455. 447.
ve income 36 8 3.18
72 36
（II）
Investment or 4,06 4,06 7,948 12,01
decreasing of 3,39 3,39 ,256. 1,648
capital by 2.31 2.31 00 .31
owners
1．Ordinary
Shares invest
0.00
ed by shareh
olders
2．Holders o
f other equity
instruments i 0.00
nvested capit
al
3．Amount of
shares paid
and
0.00
accounted as
owners’
equity
4,06 4,06 7,948 12,01
4．Other 3,39 3,39 ,256. 1,648
2.31 2.31 00 .31
（III）Profit
0.00
allotment
1.Providing
of surplus 0.00
reserves
2.Providing
of common
0.00
risk
provisions
3．Allotment
to the owners
0.00
(or
shareholders)
4．Other 0.00
141
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
(IV) Internal
transferring
0.00
of owners’
equity
1.
Capitalizing
of capital
0.00
reserves (or
to capital
shares)
2.
Capitalizing
of surplus
0.00
reserves (or
to capital
shares)
3．M aking up
losses by
0.00
surplus
reserves.
4.Change
amount of
defined
benefit plans
0.00
that carry
forward
Retained
earnings
5．Other
comprehensi
ve income
0.00
carry-over
retained
earnings
6．Other 0.00
-93, -93,
-93,6
(V). Special 691, 691,
91,78
reserves 786. 786.
6.53
53 53
7,27 7,27 7,271
1. Provided
1,05 1,05 ,059.
this year
9.70 9.70 70
142
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
-100 -100
-100,
2．Used this ,962, ,962
962,8
term 846. ,846
46.23
23 .23
（VI）
0.00
Other
1,6
-1,2
98, 70,5 84,3 1,65 2,20 2,321
IV Balance 99,3 595, 115,6
245 0.0 0.0 0.0 39,2 94,4 1,16 5,59 ,289,
at the end of 49,7 0.00 233. 0.00 0.00 98,72
,01 0 0 0 91.6 41.2 6,24 0,52 245.3
this term 01.7 77 4.71
1.0 5 3 4.75 0.66 7
4
0
8. Statement of change in owner’s Equity of the Parent Company
Amount in this period
In RM B
Semi-annual of 2019
Other Equity
instrument Other
Capita Less: Compr Specia Surplu Retai
Share Total of
Items l Shares ehensi lized s ned
capit prefe Sust Other owners’
Othe reserv in ve reserv reserv profi
al rred aina equity
r es stock Incom e es t
stock ble
e
debt
1,698 -484,
I.Balance at 1,237, 26,309
,245, 380, 2,478,13
the end of last 956,47 ,287.0
011.0 246. 0,523.69
year 2.37 0
0 68
Add: Change
of
0.00
accountin
g policy
Correcting of
0.00
previous errors
Other 0.00
1,698 -484,
II.Balance at 1,237, 26,309
,245, 380, 2,478,13
the beginning 956,47 ,287.0
011.0 246. 0,523.69
of current year 2.37 0
0 68
III.Changed in -289, -289,824
143
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
the current 824, ,789.26
year 789.
26
-289,
（I）Total
824, -289,824
comprehensive
789. ,789.26
income
26
(II) Investment
or decreasing
0.00
of capital by
owners
1．Ordinary S
hares invested
0.00
by shareholder
s
2．Holders of
other equity in
0.00
struments inve
sted capital
3.Amount of
shares paid
and accounted 0.00
as owners’
equity
4．Other 0.00
（III）Profit
0.00
allotment
1.Providing of
surplus 0.00
reserves
2．Allotment
to the owners
0.00
(or
shareholders)
3．Other 0.00
(IV) Internal
transferring of 0.00
owners’ equity
1. Capitalizing
of capital 0.00
reserves (or to
144
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
capital shares)
2. Capitalizing
of surplus
0.00
reserves (or to
capital shares)
3．M aking up
losses by
0.00
surplus
reserves.
4.Change
amount of
defined benefit
plans that 0.00
carry forward
Retained
earnings
5．Other
comprehensive
income
0.00
carry-over
retained
earnings
6．Other 0.00
(V) Special
0.00
reserves
1. Provided
0.00
this year
2．Used this
0.00
term
（VI）Other 0.00
1,698 -774,
IV Balance at 1,237, 26,309
,245, 205, 2,188,30
the end of this 956,47 ,287.0 0.00
011.0 035. 5,734.43
term 2.37 0
0 94
Amount in last year
In RM B
Semi-annual of 2018
Items Shar Other Equity Capit Less: Other Special Surpl Retaine Total of
Other
e instrument al Share Comp ized us d profit owners’
145
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Capi pref reserv s in rehen reserve reserv equity
tal erre Sust es stock sive es
Othe
d aina Incom
r
stoc ble e
k debt
1,69
I.Balance at 1,237, 26,30
8,24 88,188, 3,050,69
the end of last 956,4 9,287
5,01 591.10 9,361.47
year 72.37 .00
1.00
Add: Change
of
accounti
ng
policy
Correcting of
previous
errors
Other
II.Balance at 1,69
1,237, 26,30
the beginning 8,24 88,188, 3,050,69
956,4 9,287
of current 5,01 591.10 9,361.47
72.37 .00
year 1.00
III.Changed
-8,625, -8,625,15
in the current
158.40 8.40
year
（I）Total
-8,625, -8,625,15
comprehensiv
158.40 8.40
e income
(II)
Investment or
decreasing of
capital by
owners
1 ． Ordinary
Shares invest
ed by shareho
lders
2．Holders o
f other equity
instruments i
nvested capit
146
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
al
3.Amount of
shares paid
and
accounted as
owners’
equity
4．Other
（III）Profit
allotment
1.Providing
of surplus
reserves
2．Allotment
to the owners
(or
shareholders)
3．Other
(IV) Internal
transferring
of owners’
equity
1.
Capitalizing
of capital
reserves (or
to capital
shares)
2.
Capitalizing
of surplus
reserves (or
to capital
shares)
3．M aking up
losses by
surplus
reserves.
4.Change
amount of
defined
147
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
benefit plans
that carry
forward
Retained
earnings
5．Other
comprehensiv
e income
carry-over
retained
earnings
6．Other
(V) Special
reserves
1. Provided
this year
2．Used this
term
（VI）Other
1,69
IV Balance at 1,237, 26,30
8,24 79,563, 3,042,07
the end of 956,4 9,287
5,01 432.70 4,203.07
this term 72.37 .00
1.00
III．Basic Information of the Company
Sino Great Wall Co., Ltd. (hereinafter referred to as "Company” or the "Company”) is a limited liability
company restructured by Shenzhen Victor Onward Textile Printing Co., Ltd. and altered its name to Shenzhen
Victor Onward Textile Industrial Co., Ltd. upon the approval of the People's Government of Shenzhen
Municipality on November 19, 1991. The Company’s enterprise uniform social credit code:
91440300618801483A. It was listed on the Shenzhen Stock Exchange in 1992.
On July 23, 2015, the Chinese Securities Regulatory Commission approved the “Approval on Shenzhen
Victor Onward Textile Industrial Co., Ltd.’s Material Assets Reorganization, Issuance of Stock Shares to Chen
Lve and Others, Asset Purchase, and Raising of Supporting Fund” ([2015] No. 1774). The company issued
251,849,593 shares to 17 shareholders of Sino Great Wall Co., Ltd. including Chen Lve to purchase a 100% stake
in Sino Great Wall International Engineering Co., Ltd. Meanwhile, it also issued 25,914,633 shares in a
non-public manner to the 17 shareholders and raised a total of RMB 254,999,988.72.
On July 29, 2015, the listed company received the total newly added capital of RMB 251,849,593
contributed by all shareholders of Sino Great Wall Co., Ltd. On July 30, 2015, Ruihua Certified Public
Accountants (Special General Partnership) verified the numbers and issued the “Capital Verification Report”
(Ruihua Yanzi [2015] No. 48250011). After the change, the registered capital became RMB 420,991,949 with
capital stock of RMB 420,991,949. On December 4, 2015, the company changed its name to Sino Great Wall Co.,
148
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Ltd.
On May 6, 2016, the general meeting of stockholders reviewed and approved the 2015 plan of converting
capital reserve into share capital. The specific plan was: Based on the total capital stock of 446,906,582 shares
issued as of December 31, 2015, all shareholders would receive 28 shares for every 10 shares, with the total
amount of converted capital stock reaching 1,251,338,429 shares. After the transfer, the total capital stock would
be increased to 1,698,245,011 shares. As of December 31 2016, the Company’s total capital stock was
1,698,245,011 shares, of which 1,434,441,780 were outstanding A shares, and 263,803,231 were outstanding B
shares. Chen Lve held 582,944,556 A shares, accounting for 34.33% of the total. He was the controlling
shareholder and actual controller of the Company.
The industries involved are the architectural decoration industry and other construction industries. As of
December 31, 2018, the Company has issued capital stock of RMB 169,824,500 shares in total with the registered
capital of RMB 169,824,500; the registration address is located at No. 26, Kuipeng Road, Baishigang, Kuichong
Subdistrict, Dapeng New District, Shenzhen City and the headquarter address is: Sino Great Wall Tower, No. 3,
Jinxiu Road, Beijing Economic-Technological Development Area.
The operating activities of the Company include: production and operation of textile goods and the needed
raw materials, accessories, mechanical equipment, clothes of various face fabrics and provision of relevant
services (excluding those products managed by the current license, performing as per the license if there is one).
70% of the products are for export. A branch has set up in Shanghai. Supplemented operating activities : engaging
in businesses of quota-free license management, acquisition and export of non-monopolized commodity. The
actual controller of the Company is Chen Lue. The financial statements have been reported on August 31, 2019
after the approval of all directors (board of directors) of the Company.
For the subsidiaries of the Company that were included in the combination scope in 2018, please refer to
“Note VIII. Equity in Other Subjects”. For details of the changes in the combination scope of the Company for the
current year, please refer to “Note VII. Change of Combination Scope”.
IV. Basis for Preparation of Financial Statements
1. Basis of Preparation
The Company has prepared financial statements based on sustained operation as basis, according to the
transactions and matters having occurred actually, and in accordance with the Accounting Standards for Business
Enterprises – Basic Rules (Issued by the Order No. 33 of the Ministry of Finance, amended in accordance with the
Order No. 76 of the Ministry of Finance), the 42 detailed accounting rules, Guidelines for Application of
Accounting Standards for Business Enterprises, Interpretation of Accounting Standards for Business Enterprises
and other relevant regulations issued and amended on February 15, 2006 and afterwards (hereinafter jointly
referred to as “Accounting Standards for Business Enterprises”), as well as the disclosure provisions of the
Preparation Rules for Information Disclosure by Companies Offering Securities to the Public No.15 – General
Provisions on Financial Report (Amended in 2014) issued by China Securities Regulatory Commission.
According to the relevant provisions of the Accounting Standards for Business Enterprises, the accounting
of the Company is based on the accrual basis. Except for certain financial instruments, the measurement of the
financial statements is based on historical cost. If the asset is impaired, the corresponding provision for
impairment will be made in accordance with relevant regulations.
149
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
2. Sustained Operation
The Company had the ability of sustained operation within 12 months since the end of the reporting period,
and did not have significant matters affecting its sustained operation.
V. Important Accounting Policies and Accounting Estimates
Specific accounting policies and accounting estimates remind:
The major business of the company is the civil engineering construction industry, which is subject to the
special industrial requirements for disclosure.
1. Statement on Observing Accounting Standards for Business Enterprises
The financial statements prepared by the Company meet the requirements of Accounting Standards for
Bus iness Enterprises, and reflect the Company’s financial standing as of December 31, 2018 and its operating
results, cash flow, and other relevant information in 2018 authentically and completely. In addition, all material
aspects of the financial statements of the Company are in line with the disclosure provisions regarding financial
statements and notes stipulated in the Preparation Rules for Information Disclosure by Companies Offering
Securities to the Public No.15 – General Provisions on Financial Report (Amended in 2014) issued by China
Securities Regulatory Commission.
2. Fiscal Period
From Jan. 1 to Dec. 31 in the Gregorian calendar is one fiscal year.
3. Business Cycle
The Company takes 12 months as a business cycle and uses it as a standard for the liquidity of assets and
liabilities.
4. Recording Currency
The Company adopts RMB as recording currency.
5. Method for Accounting Treatment of Business Combination under and Not under the Same Control
Bus iness combination under the same control: The assets and liabilities obtained by the Company from
business combination are measured as per the book value of the combined party’s assets and liabilities (including
the goodwill formed from the final controller’s acquisition of the combined party) on the date of combination in
the final controller’s consolidated financial statements. For the balance between the book value of net assets
obtained from the combination and the book value of combination consideration paid (or the total book value of
shares issued), the capital stock premium in capital reserve will be adjusted; and if the capital stock premium in
the capital reserve is insufficient to write down, the retained earnings will be adjusted.
Bus iness combination not under the same control: The assets paid as consideration for business combination
150
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
and the liabilities incurred or undertaken by the Company on the date of purchasing will be measured as per fair
value, and the balance between the fair value and its book value will be recorded in the gain or loss of the current
period. The Company confirms the balance that the “combination cost” is bigger than “the fair value shares of the
purchased party’s distinguishable net assets obtained from the combination” as goodwill; and records after
checking the balance that the “combination cost” is smaller than “the fair value shares of the purchased party’s
distinguishable net assets obtained from the combination” in the gain or loss of the current period.
The intermediary expenses incurred for business combination, like audit, legal service, appraisal and
consulting, etc., and other directly related expenses will be recorded in the gain or loss of the current period when
incurred; the transaction expenses of equity securities issued for business combination will be used to write down
the equity.
6. Method for Preparation of Consolidated Financ ial Statements
(1) Principles for determining the scope of consolidated financial statements
The consolidation scope of the Company’s consolidated financial statements is determined based on control.
Control means that the Company has the power to the investee, enjoys variable returns by participating in the
relevant activities of the investee, and has the ability to use the power over the investee to affect the amount of the
returns. The scope of consolidation includes the Company and all subsidiaries. Subsidiaries refer to the entities
controlled by the Company.
The company will conduct a reassessment once the relevant facts and circumstances have changed and the
relevant elements involved in the above definition of control have changed.
(2) Method for Preparation of Consolidated Financial Statements
The Company prepares consolidated financial statements based on itself and each subsidiary’s financial
statements, and according to other relevant materials. For preparing consolidated financ ial statements, the
Company deems the whole enterprise group as an accounting subject, and reflects the enterprise group’s overall
financial standing, operating results and cash flow according to the confirmation, measuring and presentation
requirements of relevant enterprise accounting standards, and according to uniform accounting policies.
The accounting policies and accounting period of all the subsidiaries incorporated into the consolidation
scope of consolidated financ ial statements are consistent with those adopted by the Company. If the accounting
policies and accounting period adopted by the subsidiaries are inconsistent with those adopted by the Company,
then when consolidated financial statements are prepared, necessary adjustments will be made according to the
Company’s accounting policies and accounting period. For the subsidiaries obtained through business
combination not under the same control, their financial statements will be adjusted based on the fair value of
distinguishable net assets on the date of purchasing. For subsidiaries obtained through business combination under
the same control, their financial statements will be adjusted based on the book value of their assets and liabilities
151
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
(including the goodwill formed from the final controller’s acquisition of the subsidiaries) in the final controller’s
financial statements.
The shares belonging to minor shareholders of subsidiaries’ owners’ equity, net gain or loss of current period,
and composite benefits of current period will be listed independently under the owners' equity in consolidated
balance sheet, the net profit and total composite benefit in consolidated profit statement respectively. The balance
formed from that “the loss of current period shared by subsidiaries’ minor shareholders” exceeds “the shares
shared by the minor shareholders in the subsidiaries’ owners’ equity at the beginning of period” will be used to
write down minor shareholders’ equity.
① Increase of subsidiaries or businesses
In the reporting period, if subsidiaries or businesses are increased for business combination under the same
control, the opening amount in the consolidated balance sheet will be adjusted; the income, expense, and profit of
the subsidiaries or businesses from the beginning of the very period of combination to the end of the reporting
period will be incorporated into the consolidated profit statement; the cash flow of the subsidiaries or businesses
from the beginning of the very period of combination to the end of the reporting period will be incorporated into
the consolidated cash flow statement, and meanwhile, relevant items in comparative statements will be adjusted,
and the report subjects after combination will be deemed as having always existed from the time point when the
final controller starts the control.
If it’s available to impose control on invested parties under the same control for reason of additional
investment, etc., each party participating in the combination will be deemed to exist and make adjustments
according to present state when the final controller starts the control. The equity investments held before obtaining
the right to control the combined parties, relevant gain or loss already confirmed from “the date when original
equity is obtained and the date when the combining party and the combined party are under the same control,
whichever is later” to the date of combination, other composite benefits, and the changes of other net assets will
be used to write down the opening retained benefit of the period of comparative statement or the gain or loss of
the current period respectively.
In the reporting period, if subsidiaries or businesses are increased for business combination not under the
same control, the opening amount of consolidated balance sheet will not be adjusted; the income, expense and
profit of the subsidiaries or businesses from the date of purchasing to the end of reporting per iod will be
incorporated into the profit statement respectively; and the cash flow of the subsidiaries or businesses from the
date of purchasing to the end of reporting period will be incorporated into the cash flow statement.
If it is available to impose control on the invested parties not under the same control for reason of additional
investment, etc., then the purchased parties’ stock equity held before the date of purchasing will be re-measured
by the Company as per the fair value of the stock equity on the date of purchasing, and the balance between the
fair value and its book value will be recorded in the investment yield of the current period. If the purchased
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parties’ equity held before the date of purchasing involves other composite benefits under accounting with equity
method, as well as changes of other owners’ equity except for net gain or loss, other composite benefit and profit
distribution, then relevant other composite benefit and changes of other owner’s equity will be converted into the
investment yield in the very period to which the date of purchasing belongs, excluding the other composite
benefits arising from the changes of the net liabilities or net assets of benefit plan measured and set up over again
by the invested parties.
② Disposal of Subsidiaries or Businesses
In the reporting period, if the Company disposes some subsidiaries or businesses, then the income, expense
and profit of such subsidiaries or businesses from the beginning of the period to the date of disposal will be
incorporated into the consolidated profit statement; the cash flow of the subsidiaries or businesses from the
beginning of period to the date of disposal will be incorporated into cash flow statement.
If the Company loses the right to control invested parties for disposal of partial equity investments or other
reasons, the remained equity investments after disposal will be re-measured by the Company as per their fair value
on the date when the control right is lost. The balance of “the sum of the consideration obtained from disposal of
equity and the fair value of the remained stock equity” minus “the sum of the net asset shares enjoyed in original
subsidiaries and calculated continuously from the date of purchasing or date of combination according to original
shareholding proportion and the goodwill” will be recorded in the investment yield of the very period when
control right is lost. Other composite benefits related to original subsidiaries’ equity investments, or the changes
of other owners’ equity except for other composite benefits and profit distribution, will be converted into the
investment yield of the very period when the control right is lost, excluding the other composite benefits arising
from the changes of the net liabilities or net assets of benefit plan measured and set up over again by the invested
parties.
In case of any declination on the shareholding proportion of the Company and herein losing the control rights
over its subsidiary arising from the capital increase contributed by other investors, it shall conduct accounting
treatment in the light of the aforesaid principles.
If the Company disposes the equity investments in subsidiaries by steps through multiple transactions until
losing the right to control the subsidiaries, and if the clauses, terms and economic influences of various
transactions for disposing the equity investments in the subsidiaries meet one or several of the following
circumstances, such multiple transactions will generally be subject to accounting treatment as package transaction:
a. These transactions are concluded simultaneous ly or in condition of considering mutual
influences;
b. Only the entirety of these transactions could achieve a complete business result;
c. The occurrence of a transaction depends on the occurrence of at least one of the other
transactions;
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d. A transaction is not economical independently, but economical if considered together with
other transactions.
If various transactions of disposing the equity investments in subsidiaries until losing the control right belong
to package transaction, the Company will execute accounting treatment of various transactions as a transaction of
disposing subsidiaries until losing control right; but the balance between the price of every disposal before losing
control right and the subsidiaries’ net asset shares enjoyed and corresponding to the investments disposed will be
confirmed as other composite benefits in the consolidated financial statements, and transferred into the gain or
loss of the very period when the control right is lost.
If various transactions of disposing the equity investments in subsidiaries until los ing the control right do not
belong to package transaction, then before losing control right, the Company will execute accounting treatment
according to relevant policies about partial disposal of equity investments in subsidiaries in condition of not losing
control right; if control right is lost, the accounting treatment will be carried out according to general method for
treatment of subsidiaries.
For the balance between “the long-term equity investments newly obtained from purchasing of minor stock
equity” and “the net asset shares to be enjoyed in the subsidiaries according to newly increased shareholding
proportion and calculated continuously from the date of purchasing (or the date of combination)”, the capital stock
premium in the capital reserve in the consolidated balance sheet will be adjusted; if the capital stock premium in
the capital reserve is not sufficient to write down, the retained benefit will be adjusted.
For the balance between “the disposal price obtained from disposal of partial long-term equity
investments in subsidiaries in condition of not losing control right” and “the net asset shares to be enjoyed in the
subsidiaries, corresponding to the disposal of long-term equity investments, and calculated continuously from the
date of purchasing or the date of combination”, the capital stock premium in the capital reserve in the consolidated
balance sheet will be adjusted; if the capital stock premium in the capital reserve is not sufficient to write down,
the retained benefit will be adjusted.
7. Classification of Joint Venture Arrangements and Accounting Method of Joint Operations
A joint arrangement is an arrangement of which two or more parties have joint control. The Company
classifies joint venture arrangements into joint operations and joint ventures in line with the rights and obligations
in joint venture arrangements. A joint operation refers to a joint arrangement whereby the Company has rights to
the assets, and obligations for the liabilities, relating to the arrangement. A joint venture refers to a joint
arrangement whereby the Company has rights to the net assets of the arrangement.
The Company adopts equity method for accounting of investments in joint ventures in line with the
accounting policy described in Note IV 13, “Long-term Equity Investments Subject to Accounting with Equity
Method”.
As a joint operator, the Company recognizes in relation to its interest in a joint operation: its assets,
including its share of any assets held jointly, and its liabilities, including its share of any liabilities incurred jointly;
its revenue from the sale of its share of the output of the joint operation; its share of the revenue from the sale of
the output by the joint operation; and its expenses, including its share of any expenses incurred jointly.
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When the Company, as a joint operator, invests in or sells assets to a joint operation (such assets do not
constitute businesses, the same below), or purchases assets from the joint operation, the Company only recognizes
the portion of the profits and losses arising from such transactions that is attributable to other participants in the
joint operation before such assets are sold to third parties. If such assets are subject to asset impairment losses
stipulated in the Accounting Standards for Business Enterprises No.8 of Asset Impairment, etc., in case that the
Company invests in or sells assets to the joint operation, the Company will fully recognize such losses incurred
thereof; in case that the Company purchases assets from the joint operation, the Company will recognize its share
of such losses incurred thereof.
8. Standard for Determination of Cash and Cash Equivalents
When compiling the cash flow statement, the Company's cash on hand and the deposit, which can be used to
make payment at any time, should be confirmed as the cash. The investment, having four features of short
duration (expired within three months from the acquisition date), strong mobility, being easy to be changed into
known cash, low value change risk at the same time, should be confirmed as the cash equivalent.
9. Foreign-Currency Businesses and Conversion of Foreign-Currency Statements
Foreign-Currency Businesses
Foreign-currency businesses are converted into RMB for book-keeping with the approximate exchange rate
of the spot exchange rate on transaction date as the exchange rate for conversion. The balance of foreign-currency
monetary items on the date of balance sheet will be converted with the spot exchange rate on the date of balance
sheet, and the balance of exchange arising from hereof will be recorded in the gain or loss of the current period,
except for that the balance of exchange arising from special foreign-currency loan related to the purchasing and
construction of assets meeting capitalization conditions is treated in line with the principle for capitalization of
borrowing costs.
Conversion of Foreign-Currency Statements
The asset and liability items in the balance sheet will be converted with the spot exchange rate on the date of
balance sheet; for the owner’s equity, except for “undistributed profit”, all the other items will be converted with
the spot exchange rate when they are incurred. The revenue item and the expense item in the Profit Statement are
converted with the approximate exchange rate of the spot exchange rate on transaction date.
For disposal of foreign business operation, the balance from conversion of foreign-currency financial
statements related to such foreign operation shall be transferred from owner’s equity to the gain or loss of the very
period of disposal.
10. Financial Instruments
Financial instruments include financial assets, financial liabilities and equity instruments.
(1) Classification of Financial Instruments
When initially confirmed, financial assets and financial liabilities are classified into: Financial assets or
financial liabilities measured with fair value and having the change of fair value recorded in the gain or loss of
current period, including tradable financial assets or financial liabilities, and financial assets or financial liabilities
directly specified to measure with fair value and having the change of fair value recorded in the gain or loss of the
current period; held-to-maturity investments; accounts receivable; available-for-sale financial assets; and other
financial liabilities, etc.
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(2) Confirmation Bas is and Measuring Method of Financial Instruments
①Financial assets (financial liabilities) measured with fair value and having the change of fair value
recorded in the gain or loss of current period
When they are obtained, fair value (after deduction of cash dividends already declared but not paid yet, or bond
interests with interest payment period expired but having not been acquired) will be taken as initial confirmed
amount, and relevant transaction expenses will be recorded in the gain or loss of the current period.
During the holding period, the interests or cash dividends obtained will be confirmed as investment yield,
and at the end of period, the change of fair value will be recorded in the gain or loss of the current period.
During disposal, the balance between the fair value and initial amount entered into account will be
confirmed as investment yield, and meanwhile, the gain or loss on change of fair value will be adjusted.
② Held-to-maturity investments
When they are obtained, the sum of fair value (after deduction of bond interests with interest payment period
expired but having not been acquired) and relevant transaction expanses will be taken as initial confirmed amount.
During the holding period, interest income will be calculated and confirmed as per amortized cost and actual
interest rate, and recorded in investment yield. The actual interest rate will be determined when being obtained,
and maintained unchanged during the predicted survival period or applicable shorter period.
During disposal, the balance between the acquisition price and the book value of such investment will be
recorded in investment yield.
③ Accounts receivable
For the creditor’s rights receivable formed from the Company’s sale of goods or rendering of labor services,
and the other enterprises’ creditor’s rights held by the Company and excluding the debt instruments having an
offer in active market, including accounts receivable and other accounts receivable, etc., the contract or agreement
price receivable from purchasers will be taken as the initially confirmed amount; if the receivables have financing
nature, they will be initially confirmed as per their present value.
In case of recovery or disposal, the balance between the acquisition price and the book value of accounts
receivable will be recorded in the gain or loss of the current period.
④ Available-for-sale financial assets
When they are acquired, the sum of fair value (after deduction of cash dividends already declared but not
paid yet, or bond interests with interest payment period expired but having not been acquired) and relevant
transaction expenses will be taken as initially confirmed amount.
During the holding period, the interests or cash dividends obtained will be confirmed as investment yield. At
the end of period, they will be measured as per fair value, and the change of fair value will be recorded in other
composite benefit. However, the equity instrument investments which have no offer in active market and of which
the fair value cannot be reliably measured, and the derived financial assets which are linked with the equity
instruments and settled through delivery of the equity instruments will be measured as per cost.
During disposal, the balance between the acquisition price and the book value of financial assets will be
recorded in the gain or loss of investment; meanwhile, the amount of corresponding disposal part and originally
recorded in the accumulative amount of change in the fair value of other composite benefit directly will be
recorded in the gain or loss of the current period.
⑤ Other financial liabilities
The sum of their fair value and relevant transaction expenses will be taken as initially confirmed amount.
The amortized cost will be adopted for follow -up measurement.
(3) Confirmation Bas is and Measurement Method of Financial Assets Transferred
If the Company transfers financial assets, and transfers nearly all risks and rewards on the ownership of such
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financial assets to the transfer-in party, the Company will terminate the confirmation of the financial assets; if the
Company reserves nearly all risks and rewards on the ownership of the financial assets, the Company will not
terminate the confirmation of such financial assets.
When judging whether the transfer of financial assets meets the above-mentioned conditions for terminating
the confirmation of financial assets, the Company will follow the “Substance Over Form” principle. The Company
distinguishes the transfer of financial assets into overall transfer and partial transfer of financial assets. If the
overall transfer of financial assets meets the conditions for termination of confirmation, the balance of the
following two amounts will be recorded in the gain or loss of the current period:
① The book value of the financial assets transferred;
② The sum of the consideration received for the transfer and the accumulative amount of change in the fair
value originally recorded in the owner’s equity directly (involving the circumstance that the f inancial assets
transferred are available-for-sale financial assets);
If partial transfer of financial assets meets the conditions for termination of confirmation, the overall book
value of the financial assets transferred will be amortized between the confirmation-terminated part and
non-confirmation-terminated part as per respective relative fair value, and the balance of the following two
amounts will be recorded in the gain or loss of the current period:
① The book value of the confirmation-terminated part;
② The consideration for the confirmation-terminated part and the amount of corresponding
confirmation-terminated part in the accumulative amount of change in the fair value originally recorded in the
owner's equity directly (involving the circumstance that the financial assets transferred are available-for-sale
financial assets);
If the transfer of financial assets does not meet the conditions for termination of confirmation, the financial
assets will be confirmed continuously, and the consideration received will be confirmed as a financial liability.
(4) Conditions for Terminating the Confirmation of Financial Liabilities
If the current obligation of financial liabilities is rescinded completely or partially, the confirmation of such
financial liabilities or part of them will be terminated; if the Company signs an agreement with creditors to replace
the existing financial liabilities by means of undertaking new financial liabilities, and the contract clauses for new
financial liabilities are substantially different from the contract clauses for existing financial liabilities, the
confirmation of the existing financial liabilities will be terminated, and new financial liabilities will be confirmed
at the same time.
If all or partial contract clauses for existing financial liabilities are amended substantially, the confirmation
of the existing financial liabilities or part of them will be terminated, and meanwhile, the financial liabilities after
amendment of clauses will be confirmed as a new financial liability.
If the confirmation of financial liabilities is terminated completely or partially, the balance between the book
value of the financial liabilities of which the confirmation is terminated and the consideration paid (including
non-cash assets transferred out or the new financial liabilities undertaken) will be recorded in the gain or loss of
the current period.
If the Company buys back partial financial liabilities, then on the date of buyback, the Company will
distribute the overall book value of the financial assets according to the relative fair value of the part confirmed
continuously and the confirmation-terminated part. The balance between the book value distributed to the
confirmation and the consideration paid (including non-cash assets transferred out or the new financial liabilities
undertaken) will be recorded in the gain or loss of the current period.
(5) Method for Determining the Fair Value of Financial Assets and Financial Liabilities
For financial instruments having an active market, their fair value will be determined as per the offer in the
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active market. For financial instruments not having an active market, their value will be determined by estimation
technique. In case of estimation, the Company will adopt estimation techniques which are applicable under
present circumstances and supported by sufficient available data and other information, select input values
consistent with the asset or liability characteristics considered by market participants in the transactions of
relevant assets or liabilities, and preferentially use relevant observable input values. Non-observable input values
will be used only under the circumstance that relevant observable input values cannot be obtained or such values
obtained are not practicable.
(6) Method for Testing and Accounting Treatment of Depreciation of Financial Assets (Excluding Accounts
Receivable)
Except for the financial assets measured with fair value and having the change of fair value recorded in the
gain or loss of the current period, the Company checks the book value of financial assets on the date of balance
sheet. If some objective evidence proves that some financial asset depreciates, the Company will withdraw
depreciation reserve for this financial asset.
① Depreciation reserve of available-for-sale financial assets:
If the fair value of available-for-sale financial assets drops severely at the end of period, or such trend of
drop is predicted to be non-temporary after comprehensively considering various relevant factors, the Company
will confirm that the available-for-sale financial assets depreciate, will transfer out the accumulative losses arising
from the drop of fair value originally recorded in the owner’s equity directly, and confirm the impairment loss.
For available-for-sale debt instruments with impairment loss confirmed, if in a later fiscal period, the fair
value rises and the rise is objectively related to the matters occurring after confirmation of original impairment
loss, then the originally confirmed impairment loss will be transferred back and recorded in the gain or loss of the
current period.
The impairment loss on available-for-sale equity instrument investments will not be transferred back through
gain or loss.
② Impairment reserve for held-to-maturity investments:
Held-to-maturity investments
11.Notes receivable
12.Account receivable
Receivables shall include account receivables and other account receivables. The Company adopts the
allowance method for bad debt losses accounting.
(1) Accounts Receivable with Significant Single Amount and Having Bad Debt Reserve Withdrawn
Independently:
Judgment basis or amount standard of significant single The Company recognizes accounts receivable for a single
amount project with the balance ≥ RM B 10 million and other accounts
receivable from a single relevant unit with the balance ≥ RM B
2 million as accounts receivable with significant single
amount.
M ethod for withdrawal of bad debt reserve with significant The Company will carry out impairment test independently for
single amount and withdrawn independently: accounts receivable with significant single amount. If such
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accounts receivable are proved impairing through the test, the
Company will determine the impairment loss and withdraw
bad debt reserve according to the balance that the present value
of its future cash flow is lower than its book value. The
accounts receivable not impairing as proved in single test, will,
together with the accounts receivable with insignificant single
amount, be divided into many portfolios according to similar
credit risk characteristics. Then according to certain proportion
of the balance on the date of balance sheet of the portfolios of
these accounts receivable, the Company will calculate and
determine impairment loss and withdraw bad debt reserve.
（2）Accounts Receivable with Insignificant Single Amount but Having Bad Debt Reserve Withdrawn
Separately:
Reasons for independent withdrawal of bad debt reserve On the date of balance sheet, for the other accounts receivable
with insignificant single amount and having obvious sign of
impairment, the Company will determine impairment loss and
withdraw bad debt reserve according to the balance that the
present value of their future cash flow is lower than their book
value.
M ethod for withdrawal of bad debt reserve On the date of balance sheet, the Company will execute
impairment test of the accounts receivable with insignificant
single amount but having bad debt reserve withdrawn
separately. If such accounts receivable are proved impairing
during the test, the Company will determine impairment loss
and withdraw bad debt reserve according to the balance that
the present value of their future cash flow is lower than their
book value.
（3）Accounts Receivable with Bad Debt Reserve Withdrawn as per the Portfolios Classified Based on
Credit Risk Characteristics:
Portfolio name M ethod for withdrawal of bad debt reserve
Account aging portfolio Account age analysis method
Combination of affiliated parties within Regardless of the provision for bad debts
the range of consolidation
For those subject to provision for bad debts under aging analysis method:
Aging Rate for receivables(%) Rate for other receivables(%)
Within 1 year（Included 1 year） 5 5
1－2 years 10 10
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2－3 years 30 30
3－4 years 50 50
4－5 years 80 80
Over 5 years 100 100
The Company needs to comply with disclosure requirements of the Guidelines No.7 of the Shenzhen Stock
Exchange on Industry Information Disclosure — Civil Engineering of Listed Companies.
13. Financing of receivables
14.Other account receivable
Determination method of expected credit loss of other receivables and accounting treatment method
15. Inventories
Whether the Company needs to comply with disclosure requirements of special industries
Yes
Civil Engineering
(1) Classification of Inventories
Inventories mainly include raw materials, engineering construction, merchandise inventory, work-in-process,
low value consumables, etc.
(2) Method for Pricing of Inventories Delivered
During the delivery of inventory, it is priced in terms of the method of weighted mean.
(3) Basis for Determining the Net Realizable Value of Different Types of Inventories
For commodity stocks directly for sale, such as finished products, merchandise inventory, and materials for
sale, etc., their net realizable value is confirmed during normal production and operation as per the amount after
deduction of estimated selling expenses and relevant taxes from the estimated sales price of such inventories; for
material stocks needing processing, their net realizable value will be determined during normal production and
operation as per the amount after deduction of costs estimated to incur until completion of work, estimated selling
expenses and relevant taxes from the estimated sales price of finished products; for the inventories held for
executing sales contract or labor service contract, their net realizable value will be calculated on the basis of
contract price. If the quantity of inventories held is more than the quantity ordered under sales contract, the net
realizable value of the excessive inventory will be calculated based on general sales price.
At the end of period, inventory depreciation reserve is withdrawn as per single inventory item; however, for
plentiful inventories of relatively low unit price, inventory depreciation reserve will be withdrawn by the type of
inventory; for inventories related to the product series produced and sold in a same region, having the same or
similar final use or objective, and difficult to measure by separating from other items, inventory depreciation
reserve will be withdrawn in a consolidated way. Except for that some conclusive evidence proves abnormality of
market price on the date of balance sheet, the net realizable value of inventory items will be determined based on
the market price on the date of balance sheet.
The net realizable value of inventory items at the end of this period will be determined based on the market
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price on the date of balance sheet.
(4) Perpetual inventory taking system is adopted for inventory taking system.
(5) Method for Amortization of Low-Value Easily-Consumed Articles and Packing
One-off writing-off method is adopted for low-value easily-consumed articles; one-off writing-off method
is adopted for packing.
16. Contract assets
17.Contract cost
18. Held-for-sale assets
The Company classifies the non-current assets or disposal group meeting the following conditions as assets
held for sale:
(1) Based on the practice of selling such assets or disposal groups in similar transactions, they can be sold
immediately under current conditions;
The sale is very likely to happen, that is, the Company has already made a resolution on a sales plan and
obtained an assuring purchase commitment and it is expected that the sale will be completed within one year.
Where regulations require the approval of relevant power organ or regulatory department of the Company before
they can be sold, the approval has been obtained.
19. Creditor's rights investment
20.Other Creditor's rights investment
21.Long-term account receivable
22. Long-term Equity Investments
(1) Standards for Judgment of Common Control and Significant Influences
Common control indicates the jointly-owned control on some arrangement as per relevant provisions, and
relevant activities of such arrangement must be unanimously agreed by the participants sharing the control right
before being decided. If the Company and other joint operators impose common control on invested units and
have the right to the invested units’ net assets, the invested units will be the Company’s joint ventures.
Significant influences indicate having the right to participate in making decisions on an enterprise’s financial
affairs and business operation, but could not control or jointly control together with other parties the making of
these policies. If the Company could impose significant influences on invested units, the invested units will be the
Company’s associates.
(2) Determination of Initial Investment Cost
① Long-term Equity Investments Formed from Business Combination
Bus iness combination under the same control: If the Company pays combination consideration by paying
cash, transferring non-cash assets or undertaking debts and issuing equity securities, the Company will take the
book value shares of the combined party’s owners’ equity obtained on the date of combination in the final
controller’s consolidated financial statements as the initial investment cost of long-term equity investments. If the
Company could impose control on invested units under the same control for reason of additional investment, etc.,
the Company will confirm on the date of combination the initial investment cost of long-term equity investments
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as per the book value shares of the combined party’s net assets to be enjoyed in the final controller’s consolidated
financial statements after combination. For the balance between “the initial investment cost of long-term equity
investments on the date of combination” and “the sum of the book value of long-term equity investments before
combination and the book value of newly paid consideration for further obtaining shares on the date of
combination”, the Company will adjust the capital stock premium; and if the capital stock premium is not enough
to write down, the Company will write down the retained benefits.
Bus iness combination not under the same control: The Company takes the combination cost determined on
the date of purchasing as the initial investment cost of long-term equity investments. If the Company could
impose control on invested units not under the same control for reason of additional investment, etc., the
Company will take the sum of the book value of originally held equity investments and the newly increased
investment cost as the initial investment cost of long-term equity investments which are subject to accounting with
cost method instead.
② Long-term Equity Investments Obtained by Other Means
For long-term equity investments obtained by means of payment in cash, the purchasing price actually paid
will be taken as initial investment cost.
For long-term equity investments obtained by issuing equity securities, the fair value of the equity securities
issued will be taken as initial investment cost.
In the precondition that non-monetary asset exchange has business nature, and the fair value of exchanged-in
or exchanged-out assets could be measured reliably, the fair value of exchanged-out assets and relevant expenses
payable will be determined as the initial investment cost of the long-term equity investments obtained from
non-monetary assets exchange, unless some conclusive evidence proves that the fair value of exchanged-in assets
is more reliable; for non-monetary assets exchange not meeting the above-mentioned precondition, the book value
of exchanged-out assets and relevant taxes payable shall be taken as the initial investment cost of exchanged-in
long-term equity investments.
For long-term equity investments obtained through debt reorganization, their initial investment cost will be
determined based on fair value.
(3) Follow-up Measurement and Gain or Loss Confirmation Method
① Long-term Equity Investments Subject to Accounting with Cost Method
The Company adopts cost method for accounting of long-term equity investments in subsidiaries. Except for
the cash dividends or profits included in the price or consideration actually paid when investments are obtained,
and already announced but not paid, the Company confirms the investment yield of the very period according to
the cash dividends or profits enjoyed by the Company and declared to grant by invested units.
② Long-term Equity Investments Subject to Accounting with Equity Method
The Company adopts equity method for accounting of long-term equity investments in associates and joint
ventures. For the balance that the initial investment cost is bigger than the fair value shares of invested units’
distinguished net assets which shall be enjoyed by the Company, the Company will not adjust the initial
investment cost of long-term equity investments; for the balance that the initial investment cost is smaller than the
fair value shares of invested units’ distinguished net assets which shall be enjoyed by the Company, the Company
will adjust the book value of long-term equity investments and record it in owner’s equity.
When confirming the shares of invested units’ net gain or loss to be enjoyed, the Company will adjust and
confirm the invested units’ net profit based on the fair value of the invested units’ distinguishable net assets when
investments are obtained, and according to the Company’s accounting policies and fiscal period. If the invested
units prepare consolidated financ ial statements during the holding of investments, the accounting will be
conducted based on the amount attributing to the invested units in the net profit in the consolidated financial
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statements, other composite benefits, and changes of other owner’s equity.
For the gain or loss on the non-realized internal transactions between the Company and jointly-run
enterprises/ joint ventures, the part attributing to the Company will be calculated as per the proportion to be
enjoyed, will be written down, and on this basis, the investment yield will be confirmed. The gain or loss on
non-realized internal transactions done with invested units will be fully confirmed if belonging to asset
impairment loss. During the period of holding investment, as for the invested entity preparing consolidated
financial statements, carry out accounting based on the invested entity’s attributable amount of the net profit, other
comprehensive income and other changes in equity in the consolidated financial statements.
The unrealized gains or losses on internal transaction occurring among the company, associates and joint
ventures will confirm the investment income on the basis of offsetting the company’s attributable part calc ulated
according to the entitlement proportion. The unrealized losses on internal transaction occurring in the invested
entity belonging to assets impairment loss will be confirmed in full amount. If the assets of investment or
asset-sale transactions occurring among the company, associates and joint ventures constitute the business, the
accounting treatment shall be carried out according to the related policies disclosed in “IV (4) Method for
Accounting Treatment of Business Combination under and Not under the Same Control” and “IV (5) Method for
Preparation of Consolidated Financial Statements”.
When the Company determines to share the losses of the invested entity, it will be treated in the order as
follows: firstly, the book value of long-term equity investments will be offset. Secondly, if the book value of the
long-term equity investment is not sufficient to be offset, the recognition of losses of the investment will be
continued to the extent of the book value of other long-term rights and interests which substantially form the net
investment made to the invested entity, and the book value of long-term accounts receivable will be offset. Finally,
after the above-mentioned treatment, if the Company still undertakes extra obligations according to the provisions
of investment contract or agreement, the Company will confirm accrued liabilities with obligations predicted to
undertake, and record them in the investment loss of the current period.
③ Disposal of Long-Term Equity Investments
For disposal of long-term equity investments, the balance between their book value and actual acquisition
price will be recorded in the gain or loss of the current period.
For long-term equity investments with equity method adopted for accounting, when such investments are
disposed, the part originally recorded in other composite benefits will be subject to accounting treatment
according to corresponding proportion and on the same basis adopted by invested units to directly dispose relevant
assets or liabilities. The owner’s equity confirmed for change of other owner’s equity except for net gain or loss,
other composite benefit and profit distribution of invested units will be carried forward into the gain or loss of the
current period, excluding the other composite benefits arising from the change of net liabilities or net assets of
invested units’ new measurement and setting of benefit plan.
If the Company loses common control or significant influences on invested units for reason of disposal of
partial equity investments, etc., the remained equity after disposal will be subject to accounting according to the
standards for the confirmation and measurement of financial instruments, and the balance between the fair value
and book value of such remained equity investments on the date when the Company losing common control or
significant influences will be recorded in the gain or loss of the current period. Other composite benefits
confirmed for accounting with equity method of original equity investments will be subject to accounting
treatment with the same basis adopted by invested units to directly dispose relevant assets or liabilities when the
accounting with equity method is terminated. The owner’s equity confirmed for change of other owner’s equity
except for invested parties’ net gain or loss, other composite benefit and profit distribution will be totally
transferred in the gain or loss of the current period when the accounting with equity method is terminated.
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In case the control right on the invested unit is deprived due to disposal of part of equity investment,
increase of investment by other investment parties on subsidiaries causing decrease of holding proportion of the
company, when preparing certain financial statement, the residual equity shall be checked by equity method if
having common control or major effect on invested unit, and adjusted as the residual equity is checked by the
equity method from being obtained; If the remaining equity cannot exert joint control or significant influence on
the invested unit, it shall take accounting treatment according to the relevant provisions of financial tools and
measurement rules, and the difference between the fair value and book value on the date of losing control shall be
included in the current profits and losses.
If the equity disposed is obtained from business combination for reason of additional investment, and when
individual financial statements are prepared,
cost method or equity method is adopted for accounting of the remained equity after disposal, the other
composite benefits and other owner’s equity confirmed for accounting with equity method of the equity
investments held before the date of purchasing will be carried forward by proportion; if the remained equity after
disposal is subject to accounting treatment according to the standards for confirmation and measurement of
financial instruments, the other composite benefits and other owner’s equity will be carried forward completely.
23. Investment Real Estate
Investment real estate measurement model
Costing accounting
Method of depreciation or amortization
The company's investment real estate includes the land use right held and prepared to transfer after
increment, the buildings already leased (including the buildings used for leasing after completion of
self-construction or development activities, and buildings in construction or development and to be used for
leas ing in future).
The Company adopts cost mode to measure the existing investment real estates. For investment real estate
measured with cost mode – the buildings used for leasing, the Company will adopt the depreciation policy, which
is the same for fixed assets, and for the land use right for leasing, the Company will adopt the amortization po licy
which is the same for intangible assets.
24. Fixed Assets
1. Fixed asset recognition conditions
Fixed assets indicate the tangible assets held for producing goods, rendering labor services, leasing or operation
management, and having a service life of more than one fiscal year. No fixed asset may be recognized unless it
simultaneous ly meets the conditions as follows:
(1) The economic benefits pertinent to the fixed asset are likely to flow into the enterprise;
(2) The cost of the fixed asset can be measured reliably.
2. Depreciation method for various fixed assets
Type Depreciation method Depreciation life Salvage rate (%) Annual depreciation
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(Year) rate (%)
House and buildings Straight-line method 20 years 5 4.75
M echanical equipment Straight-line method 10 5 9.5
Transportation Straight-line method
7 5 13.57
equipment
Electronic equipment Straight-line method
3-5 5 19.00-31.67
and other equipment
3. Recognition basis and valuation method for fixed assets under financing lease
Where the leasing agreement signed between company and the lessor specifies either of the conditions as follows,
the lease will be recognized as a finance lease:
(1) The ownership of the leasing asset belongs to this company at the expiration of the lease;
(2) Company has the option to buy the asset at a price to be far lower than the fair value of the asset at the date
when the option becomes exercisable;
(3) The lease term covers the major part of the use life of the leased asset;
(4) The present value of the minimum lease payments on the lease beginning date does not have too large
differences with the fair value of the asset.
On the starting date of the Company’s leasing, the fair value of leased assets and the present value of the
minimum rent payment, whichever is lower, will be taken as the entry value of leased-in assets, and the minimum
rent payment will be taken as the entry value of long-term accounts payable, and the balance will be taken as
non-confirmed financing cost.
25. Construction in Progress
For construction in progress, the necessary expenditure incurred for making the constructed assets reach the
predetermined usable state will be taken as the entry value of the fixed assets. If the constructed fixed assets have
reached the predetermined usable state, but the completion settlement has not been handled, then since the date
when such assets reach the predetermined usable state, the Company will transfer such assets into fixed assets as
per estimated value and based on engineering budget, construction cost, or actual cost of engineering, etc., and
will withdraw fixed asset depreciation according to the Company’s policy for fixed asset depreciation; after
handling of completion settlement, the Company will adjust original temporarily estimated value as per actual cost,
but will not adjust originally withdrawn depreciation amount.
26. Borrowing Costs
Borrowing costs include loan interest, discount or premium amortized, auxiliary expense, and exchange
balance arising from foreign-currency loan, etc.
1. Principle for Confirmation of Borrowing Cost Capitalization
The Company’s borrowing costs, if available to directly attribute to the construction or production of assets
meeting capitalization conditions, will be capitalized and recorded in the cost of relevant assets; and other
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borrowing costs will be confirmed as expenses and recorded in the gain or loss of current period as per their
amount incurred when they are incurred.
Assets meeting capitalization conditions indicate the fixed assets which need to experience quite a long term
of construction or production activities before reaching the predetermined usable or salable state, as well as
investment real estates and inventories, etc.
Borrowing costs will be capitalized if simultaneous ly meeting the following conditions :
(1) Asset expenditure has occurred, including the payment in cash for purchasing and construction or
production of assets meeting capitalization conditions, transfer of non-cash assets, or undertaking of
interest-bearing debts;
(2) Borrowing costs have occurred;
(3) The purchasing and construction or production activities necessary for making assets reach
predetermined usable or salable state have started.
2. Period for capitalization of borrowing costs
Capitalization period indicates the period of from the time point when capitalization of borrowing costs
starts to the time point when capitalization stops, excluding the period when the capitalization of borrowing costs
is suspended.
If the assets purchased and constructed or produced and meeting capitalization conditions reach the
predetermined usable or salable state, the capitalization of borrowing costs will stop.
If some items of the assets purchased and constructed or produced and meeting capitalization conditions are
completed separately and could be used independently, the capitalization of borrowing costs for such assets will
stop.
If each part of the assets purchased and constructed or produced is completed respectively, but cannot be
used or sold until the whole assets are completed, the capitalization of borrowing costs may be stopped when the
assets are totally completed.
3. Period for suspension of capitalization
If the assets meeting capitalization conditions are broken abnormally during purchasing and construction or
production process, and the suspension lasts for more than 3 months successively, the capitalization of borrowing
costs will be suspended; if such suspension is a necessary procedure for making the assets purchased and
constructed or produced and meeting capitalization conditions reach the predetermined usable state or salable state,
the capitalization of borrowing costs will continue. The borrowing costs occurring during suspension period will
be confirmed as gain or loss in the current period, and the capitalization of borrow ing costs will continue after the
construction and purchasing or production activities of such assets restart.
4. Method for calculation of borrowing costs capitalization rate and capitalized amount
For the special loan obtained for purchasing and construc tion or production of assets meeting capitalization
conditions, the capitalized amount of borrowing costs will be determined as per the amount after “the borrowing
costs actually incurred in the very period of special loan” minus “the interest income obtained from bank deposit
or the investment yield obtained from temporary investment of the non-used loan fund”.
For general loans occupied for purchasing and construction or production of assets meeting capitalization
conditions, the borrowing costs amount to be capitalized of general loans shall be calculated and determined as
per the “weighted mean of asset expenditure that accumulative asset expenditure exceeds the special loan”
multiplied by the capitalization rate of general loan. The capitalization rate is generally calculated and determined
as per the weighted mean interest rate of general loan.
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27. Biological assets
Nil
28. Oil-gas assets
Nil
29. Assets of the right to use
Nil
30. Intangible assets
Intangible assets refer to identifiable non-monetary assets without physical form owned or controlled by the
Company. The intangible assets of the Company mainly include land use right and software royalty.
1. Pricing Method of Intangible Assets
The Company initially measures the intangible assets as per the c ost when they are acquired.
The cost of purchased intangible assets includes purchasing price, relevant taxes, and other expenditures
directly for making the assets reach the predetermined use. If the price for purchasing intangible assets is delayed
in payment by exceeding normal credit conditions, and the intangible assets have financing nature substantially,
the cost of intangible assets will be determined based on the present value of purchasing price.
As for the intangible assets obtained from debt reorganization and used by debtors for repaying debts, their
entry value will be determined based on the fair value of such intangible assets, and the balance between the book
value of reorganized debts and the fair value of the intangible assets used for repaying debts will be recorded in
the gain or loss of the current period.
In the precondition that non-monetary asset exchange has the essence of commerce, and the fair value of
exchanged-in or exchanged-out assets could be measured reliably, the entry value of the intangible assets obtained
from non-monetary asset exchange will be determined based on the fair value of exchanged-out assets, unless
conclusive evidence proves that the fair value of exchanged-in assets is more reliable; for the non-monetary asset
exchange not meeting the above-mentioned precondition, the book value of exchanged-out assets and relevant
taxes payable will be taken as the cost of exchanged-in intangible assets, and the gain or loss won’t be confirmed.
The Company analyzes and judges the service life of intangible assets when obtaining them.
Intangible assets with limited service life are amortized with straight-line method within the period when
they bring about economic benefits for the enterprise; if it’s impossible to predict the period when the intangible
assets could bring about economic benefits to the enterprise, the intangible assets will be deemed to have
uncertain service life, and won’t be amortized.
2. Estimate on the service life of intangible assets with limited service life:
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Items Service life Amortization method
Software royalty 5 years Straight-line method
Land use right 50 years Straight-line method
At the end of every year, the Company checks the service life and amortization method of the intangible
assets with limited service life. As checked, the service life and amortization method of intangible assets at the end
of this year were not different from previous estimates.
3. Concrete Standard for Division of Research Stage and Development Stage
The Company’s expenditure for internal research and development projects is divided into the expenditure at
research stage and expenditure at development stage.
Research stage: The stage of unique and planned investigation and research activities conducted for obtaining
and understanding new scientific or technological knowledge.
Development stage: The stage of applying research findings or other knowledge to some plan or design, in
order to produce new or substantially improved materials, devices and products, etc. before c ommercial
production or use.
(2) Concrete Conditions for Capitalization of Expenditure at Development Stage
The expenditure at development stage of internal research and development projects will be confirmed as
intangible assets when simultaneously meeting the following conditions:
(1) It is technically feasible to complete the intangible assets and make them available for use or sale;
(2) The Company has the intent to complete, use or sell the intangible assets;
(3) The way by which intangible assets produce economic benefit could prove the usability of such
intangible assets, including proving that the products produced with such intangible assets have markets, or such
intangible assets have markets, and intangible assets would be used internally;
(4) The Company has sufficient technical, financial resources and other resources to support the completion
of the development of such intangible assets, and the Company has the ability to use or sell such intangible assets.
(5) The expenditure attributing to the development stage of such intangible assets could be measured
reliably.
31. Long-term Asset Impairment
If there is any sign of impairment in long-term equity investments, investment real estates measured by the
cost model, fixed assets, construction in progress, intangible assets with finite service life and other long-term
assets at the balance sheet date, an impairment test will be made. If the result of impairment test proves that the
recoverable amount of assets is lower than their book value, the depreciation reserve will be withdrawn as per
their balance and recorded in the impairment loss. The recoverable amount indicates the net amount after the fair
value of assets minus the disposal expenses, and the present value of predicted future cash flow of the assets,
whichever is higher. Asset depreciation reserve is calculated and confirmed based on single assets. If it is difficult
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to estimate the recoverable amount of single assets, the recoverable amount of asset portfolio will be determined
as per the asset portfolio to which the assets belong. Asset portfolio indicates the minimum asset group which
could independently produce cash inflows.
Goodwill will be subject to impairment test at least at the end of every year.
The Company carries out impairment test of goodwill, and amortizes the book value of the goodwill formed
from business combination to relevant asset group by reasonable means since the date of purchasing; if it is
difficult to amortize the book value to relevant asset group, the Company will amortize it to relevant asset group,
the Company will amortize it to relevant asset group portfolio. When the book value of goodwill is amortized to
relevant asset group or asset group portfolio, the Company will execute amortization as per the proportion of the
fair value of each asset group or asset group portfolio to the total fair value of relevant asset group or asset group
portfolio. If it is difficult to measure the fair value reliably, the Company will execute amortization as per the
proportion of the book value of each asset group or asset group portfolio to the total book value of relevant asset
group or asset group portfolio.
When impairment test is carried out for relevant asset groups or asset group portfolios including goodwill, if
the asset groups or asset group portfolios relevant to goodwill have the sign of impairment, the Company will
carry out impairment test of the asset group or asset group portfolio excluding goodwill, calculate recoverable
amount, compare it with relevant book value, and confirm corresponding impairment loss. And then conduct
impairment test on asset groups or asset group combination with goodwill, compare book values of relevant asset
groups or asset group combination (including the book value of amortized goodwill) with recoverable amounts, if
the recoverable amounts of relevant asset groups or asset group combination are lower than their book values, the
impairment loss of goodwill will be recognized. Once any loss of asset impairment is recognized, it shall not be
turned back in the future accounting period.
32. Long-term Deferred Expenses
Long-term deferred expenses indicate various expenses having been incurred, to be shared in present period
and later periods, and having an amortization period of more than one year.
(1) Amortization Method
Long-term deferred expenses will be averagely amortized within the benefit period;
(2) Amortization Life
It shall be determined as agreed in contracts or during the expected benefit period.
33.Constract Liabilities
34. Employee Compensation
1. Accounting Method of Short-Term Remuneration
During the fiscal period when employees provide services for the Company, the Company confirms the
short-term remuneration incurred actually as liabilities, and records them in the gain or loss of the current period
or the cost of relevant assets.
For the social insurance premiums and housing fund paid by the Company for employees, the trade union
outlay and employee education outlay withdrawn as per regulations, the Company calculates and determines
corresponding amount of employees’ remuneration as per the withdrawal basis and withdrawal proportion
regulated during the fiscal period when employees provide services for the Company.
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If employees’ welfare expense is non-monetary welfare and could be measured reliably, they will be
measured as per fair value.
2. Accounting Method of Post-Demission Welfare
Defined contribution plans
As for the basic pension insurance and unemployment insurance paid by the Company for employees
according to relevant provisions of local government, the amount payable will be calculated as per the base
amount and proportion of payment regulated by local place and recorded in the gain or loss of the current period
or the cost of relevant assets during the fiscal period when the employees provide services for the Company.
3. Accounting Method of Dismissal Welfare
If being unavailable to unilaterally revoke the dismissal welfare provided for rescission of labor relationship
plan or staff cut-down suggestions, or when confirming the costs or expenses related to reorganization involving
the payment of dismiss welfare (whichever is earlier), the Company will confirm the employee compensation
liabilities arising from dismiss welfare, and record them in the gain or loss of the current period.
4. Accounting Method of Other Long-term Welfares
Other long-term welfares provided by the company to employees in accordance with the defined contribution
plans shall be subject to accounting treatment in accordance with the defined contribution plans; otherwise shall
be subject to accounting treatment in accordance with the defined benefit plan.
35. Lease liabilities
36. Accrued Liabilities
1. Standard for Confirmation of Accrued Liabilities
If the obligations related to the contingencies like lawsuits, debt guarantees, loss contracts, reorganization
matters, etc. simultaneously meet the following conditions, the Company will confirm such obligations as accrued
liabilities:
(1) The obligations are current obligation undertaken by the Company;
(2) The implementation of such obligations will probably induce that economic benefits flow out of the
Company;
(3) The amount of such obligations could be measured reliably.
2. Measures for Measurement of Various Accrued Liabilities
The Company initially measures the accrued liabilities as per the optimum estimated amount of expenditures
necessary for implementation of relevant current obligations.
When determining the optimum estimated amount, the Company comprehensively considers the risks
related to contingencies, uncertainty, time value of money, and other factors. If the time value of money has
significant influences, the optimum estimated amount will be determined after discounting with relevant future
cash outflow.
The optimum estimated amount is treated by the following circumstances respectively:
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If the expenditure needed has a continuous scope (or range), and the possibility for various results to occur is
the same within this scope, then the optimum estimated amount will be determined as per the middle value of this
scope, namely the average of the upper-limit and lower-limit amounts.
If the expenditure needed does not have a continuous scope (or range), or there is a continuous scope, but
the possibility for various results to occur within this scope is not the same, for example, contingencies involve
single item, the optimum estimated amount will be determined as per the amount which will occur most possibly;
if contingencies involve multiple items, the optimum estimated amount will be calculated and determined as per
various possible results and relevant probability.
If the Company’s expenditure needed for discharging accrued liabilities is predicted to compensate by third
parties fully or partially, then the compensation amount will be confirmed independently as assets when being
ascertained basically available to receive, and the compensation amount confirmed won’t be more than the book
value of the accrued liabilities.
37. Share-Based Payment
The share-based payment of the Company refers to the transaction through granting equity instruments or
undertaking equity-instrument-based liabilities to obtain the services provided by employees [or other parties].
The Company’s share-based payment is divided into the share-based payment settled with equity and the
share-based payment settled in cash.
1. Share-based payment settled with equity and equity instruments
The share-based payment settled with equity, if used to exchange for employees’ services, will be measured
with the fair value of the equity instruments granted to employees. If the Company makes share-based payment
with restricted shares, then the shares subscribed with investment by employees shall not be circulated in the
market or transferred before meeting unlocking conditions and being unlocked; if the unlocking conditions
regulated in the final Stock Incentive Plan are not satisfied, the Company will buy back shares at the
predetermined price. When obtaining the money paid by employees for subscribing restricted shares, the
Company will confirm capital stock and capital reserve (capital stock premium) as per the stock subscription
money obtained, and meanwhile, will confirm a liability and inventory stock as per the full amount of buyback
obligation. On every date of balance sheet within the w aiting period, the Company will make the optimum
estimate on the quantity of exercised equity instruments according to follow -up information such as the latest
acquired change in the number of right-exercising employees, whether meeting regulated performance conditions,
etc., on this basis, and according to the fair value on the date of granted, the Company will record the services
obtained in the very period in relevant cost or expense, and increase capital reserve correspondingly. After
exercising date, the Company will not adjust the total amount of relevant confirmed cost or expense and owner’s
equity. However, it’s available to exercise rights immediately after being granted, it will be recorded in relevant
cost or expense as per fair value on the date of granted, and capital reserve will be increased correspondingly.
For the share-based payment not exercised finally, the Company will not confirm cost or expense, unless the
exercise conditions are market conditions or non-excisable conditions. No matter whether market conditions or
non-excisable conditions are satisfied, if only non-market conditions among excisable conditions are satisfied, it
will be deemed as excisable. If the clauses of share-based payment settled with equity are amended, the services
obtained will be confirmed at least according to the clauses before amendment. In addition, any amendment
increasing the fair value of equity instruments granted, or alterations beneficial for employees on the date of
amendment will be confirmed as increase of services obtained.
If share-based payment settled with equity is cancelled, the Company will treat it as accelerated exercise on
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the date of cancellation, and confirm the non-confirmed amount immediately. If employees or other parties could
choose to meet non-exercisable conditions, but do not meet such conditions within waiting period, the Company
will treat this as cancelation of share-based payment settled with equity. However, if new equity instruments are
granted, and the new equity instruments granted are recognized to replace the cancelled equity instruments on the
granted date of the new equity instruments, the granted alternative equity instruments will be treated by the means
the same as those for amending the terms and conditions for treatment of original equity instruments.
38. Other financial instruments such as preferred stocks and perpetual bonds, etc.
39.Revenues
Whether the company needs to comply with the disclosure requirements of the particular industry
No
Civil engineering construction industry
The company shall comply with the disclosure requirements of "the Guidelines No.7 of the Shenzhen Stock
Exchange on Industry Information Disclosure—Listed Companies Engaging in the Civil Engineering
Construction Bus iness".
1. General principles for recognition of revenue from sales of goods:
(1) The significant risk and the rewards of the goods ownership has been transferred to the Buyer by the
Company.
(2) The Company neither reserves the continuous management right which is generally assoc iated with
ownership nor carries out effective control of sold commodities.
(3) Related income amount can be measured in a reliable way;
(4) The relevant economic benefits may flow into the Company;
(5) Relevant costs occurred or to be occurred can be measured in a reliable way.
2. Specific principles
(1) Service revenue
The service revenue provided by the Company mainly refers to the revenue of engineering design. In case
that the results from provision of labor transactions can be estimated reliably, the revenue shall be recognized as
per the important milestones specified by the design contract. Namely, the revenue is recognized as per the
percentage of the workload of important milestones of the completed design in the total design workload and the
expected recoverable contract amount.
If the result of providing service transaction cannot be estimated in a reliable way, the service revenue shall
be determined according to the service costs which has generated and expected to be compensated. The existing
service costs are calculated as the period charges. When it is not probable that the costs incurred will be recovered,
revenue is not recognized.
Provided that sales of commodity and provision of labor can be distinguished and separately measured in the
contract or agreement signed by the Company with other enterprises, sales of commodity and provision of labor
shall be separately disposed. Provided that sales of commodity and provision of labor cannot be distinguished, or
can be distinguished but cannot be separately measured, the entire contract shall be disposed as sales of
commodity.
(2) Income from construction contracts
Under the circumstance that the outcome of a construction contract can be estimated in a reliable way, the
contract revenue and the contract costs shall be recognized in light of the percentage-of-completion method on the
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date of the balance sheet. The percentage of completion is determined in the proportion of the accumulated actual
contract costs among the estimated total contract costs.
If the outcome of a contraction contract cannot be estimated in a reliable way, but the contract costs can be
recovered, the contract revenue shall be recognized in accordance with the recoverable actual contract costs and
the contract costs shall be recognized as contract expenses in the current period they are incurred; if the contract
costs cannot be recovered, they shall be recognized as contract expenses immediately when they are incurred and
no contract revenue shall be recognized. If uncertainties, due to which the outcome of a construction contract
cannot be measured in a reliable way, have passed out of existence, the revenues and expenses pertinent to the
construction contract shall be determined in the percentage-of-completion method.
If the estimated total contract costs exceed the total contract revenue, the estimated loss is recognized as the
expenses for the period.
The cost and the gross profit (loss) accumulatively incurred and recognized of a construction-in-progress
contract and the settled price are presented in the balance sheet with a net amount after offset. The part of the sum
of the cost and the gross profit (loss) accumulatively incurred from a construction-in-progress contract exceeding
over the settled contract price is presented as inventory; and the part of the settled contract price exceeding over
the cost and the gross profit (loss) accumulatively incurred from a construction-in-progress is presented as
advance payment.
(3) Recognized income of hospital business
The income of hospital mainly comes from the outpatient and inpatient departments, and the income
recognition is done at the time of patient’s settlement.
For the outpatient income, as the patients turning to the outpatient treatment do not need the inpatient
treatment generally, the treatment duration is short, the settlement is made with the hospital at the end of the
treatment and treatment and medicine expense is paid. Financially, such outpatient income shall be recognized at
the day of receipt.
For the inpatient income, as the patient needs to be treated in the hospital for a certain period and a part of
the medical expense shall be prepaid when be admitted to hospital, the inpatient income shall not be recognized at
this moment. When discharging from the hospital, the patient will settle the medical expense for the
hospitalization and the hospital will issue the invoice to the patient. In such case, the income from the inpatient is
recognized financially.
40. Governmental subsidy
A government subsidy means the monetary or non-monetary assets obtained free by this company from the
government. Government subsidies consist of the government subsidies pertinent to assets and government
subsidies pertinent to income.
The assets-related government subsidy refers to government subsidies that are obtained by the Company
used for purchase or construction, or forming the long-term assets by other ways. Government subsidies pertinent
to income refer to the governmental subsidies except governmental subsidies pertinent to assets.
(1) The judgment basis and accounting treatment method of assets-related government subsidy
1. Recognition time
In case the governmental subsidies are monetary assets, it shall be calculated according to the received
amount or the receivable amount. If a governmental subsidy is a nonmonetary asset, it shall be measured at its fair
value or at its nominal amount in case that the fair value cannot be reliably obtained. The governmental subsidies
calculated according to nominal amount shall be directly included in the current profits and losses.
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2. Accounting treatment
Governmental subsidy related to assets will be used to write down the book value of relevant assets or be
confirmed as deferred income. If being confirmed as deferred income, the governmental subsidy will be recorded
in the gain or loss of the current period within the service life of relevant assets with reasonable and systematic
methods (if being related to the Company’s daily activities, the governmental subsidy will be recorded in other
benefits; if not, they will be recorded in non-operating income).
(1) The judgment basis and accounting method of income-related government subsidy
The income-related government subsidy, if being used to compensate the Company’s relevant cost expenses
or losses in later period, will be confirmed as deferred income, and be recorded in the gain or loss of the current
period (if being related to the Company’s daily activities, the governmental subsidy will be recorded in other
benefits; if not, they will be recorded in non-operating income) or be used to write down relevant cost expenses or
losses during the period of confirmation on relevant cost expenses or losses; if being used to compensate the
Company’s relevant cost expenses or losses already incurred, the governmental subsidy will be directly recorded
in the gain or loss of the current period (if being related to the Company’s daily activities, the governmental
subsidy will be recorded in other benefits; if not, they will be recorded in non-operating income) or be used to
write down relevant cost expenses or losses.
41. Deferred Income Tax Assets/Deferred Income Tax Liabilities
For deductible temporary difference, deferred income tax assets will be confirmed within the limit of the
taxable income which will probably be obtained in future period and be used to offset deductible temporary
difference. As for deductible losses and taxes rebate which could be carried forward to later years, corresponding
deferred income tax assets will be confirmed within the limit of the future taxable income which will probably be
obtained to offset deductible losses and taxes.
For taxable temporary difference, deferred income tax liabilities will be confirmed except for under special
circumstances.
The special circumstances under which deferred income tax assets or deferred income tax liabilities are not
confirmed include: the initial confirmation of goodwill; other transactions or matters (except for business
combination) of which the occurrence won’t affect accounting profit or taxable income (or deductible loss).
If the Company has statutory right to settle with net amount, and has the intention to settle or obtain assets
with net amount, and the discharge of debts is conducted simultaneous ly, the income tax assets of the current
period and the income tax liabilities of the current period will be presented with the net amount after offsetting.
If the Company has the statutory right to settle the income tax assets of the current period and the income tax
liabilities of the current period with net amount, and the deferred income tax assets and deferred income tax
liabilities are related to the income tax levied by a same tax administration department from a same tax payment
subject, or are related to different tax payment subjects, but in every important period when deferred income tax
assets and liabilities are transferred back in future, if the tax payment subjects involved intend to settle the income
tax assets and liabilities of the very period with net amount or to obtain assets and discharge liabilities
simultaneous ly, deferred income tax assets and deferred income tax liabilities will be presented with the net
amount after offsetting.
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42. Leasing
1. Accounting treatment method for operating lease
(1) The rent paid by the Company for rented assets will be amortized with straight-line method within the
whole lease term including the rent-free period, and recorded in the expense of the current period. The initial
direct expenses paid by the Company and related to leasing transaction will be recorded in the expense of the
current period.
If the asset lessor undertakes the lease-related expenses which shall be assumed by the Company, the
Company shall deduct such expenses from the total rent, amortize the remained rent within the lease term, and
record it in the expense of the very period.
(2) The rent collected by the Company for leas ing out assets will be amortized with straight-line method
within the whole lease term including the rent-free period, and confirmed as lease-related income. The initial
direct expenses paid by the Company and related to leasing transaction will be recorded in the expense of the very
period; if the amount is relatively big, the amount will be capitalized, and will be recorded in the income of the
very period by installments within the whole lease term on the basis same as that for confirmation of lease-related
income.
If the Company undertakes lease-related expenses which shall be undertaken by the lessee, the Company
will deduct such expenses from the total amount of rent income, and distributed the remained rent expense within
the lease term.
2. Accounting treatment method for finance lease
(1) Assets rented through finance lease: On the date when the renting starts, the Company takes the fair
value of rented assets and the present value of minimum rent payment, whichever is lower, as the entry value of
rented assets, takes the minimum rent payment as the entry value of long-term accounts payable, and takes the
balance as non-confirmed financing expense. The Company adopts actual interest rate method to amortize the
non-confirmed financing expenses within the asset lease term, and records them in financial expenses. The
Company records the initial direct expenses incurred in the value of rented assets .
(2) Assets leased out through finance lease: On the date when leasing starts, the Company confirms the
balance between “the sum of finance lease account receivable and non-guaranteed balance” and their present
value as non-realized financing income, and confirms it as lease income within each future period when rents are
received. The Company records the initial direct expenses related to leasing transaction in the initial measured
amount of finance lease account receivable, and reduces the income amount confirmed within the lease term.
43． Other Important Accounting Policies and Accounting Estimates
44. Correction of Important Accounting Policies and Accounting Estimates
(1) Correction of Important Accounting Policies
□Applicable √ Not applicable
175
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
(2) Change of Important Accounting Estimates
□ Applicable √ Not applicable
（3）Adjustments to the Financial Statements at the Beginning of the First Execution Year of any New Standards
Governing Financial Instruments, Revenue or Leases
□ Applicable √ Not applicable
（4）Retrospective Restatement of Previous Comparative Data due to the First Execution of any New Standards
Governing Financial Instruments or Leases
□ Applicable √ Not applicable
45.Other
VI. Taxes
1. Main Types of Taxes and Tax Rate
Taxes Taxation basis Tax rate
VAT For the taxable income, the output tax
should be calculated based on relevant
tax rate, and the VAT shall be paid based
0%,3%,6%,11%,17%
on the difference after deducting the
input tax that is allowed to be deducted
in the current period
Urban maintenance and construction tax Paid as per 7%, 5% and 1% of the
7%,5%,1%
turnover tax paid actually.
Enterprise income tax Paid as per 15% and 25% of taxable
15%,25%
income
Educational surtax Paid as per 3% of the turnover tax paid
3%
actually.
Local educational surtax Paid as per 2% of the turnover tax paid
2%
actually.
Illustration for disclosure of tax payers of different corporate income tax rate
Name of tax payers Income tax rate
Changzhi Sino Laodingshan Industrial Co., Ltd. 25%
Xiangfen County Taoshan Construction Co., Ltd. 25%
Sino Great Wall (Xihua) Economic Development Zone
Investment Co., Ltd. 25%
Liupanshui Central People’s Hospital Investment Co., Ltd. 25%
176
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Sino Zhigu Industrial (Yueyang) Co., Ltd. 25%
Sino Great Wall Guangxia (Wuhan) M edical Development
Co., Ltd. 25%
Sino Great Wall Infrastructure Investment Co., Ltd. 25%
Wuhan Commercial Workers Hospital LLC 25%
Sino Great Wall M edical Investment M anagement Co., Ltd. 25%
Sino Great Wall International Engineering Co., Ltd. 15%
Fujian Sino Great Wall M ingy ihui M edical Investment Co.,
Ltd. 25%
Sino Great Wall M edical Investment (Hubei) Co., Ltd. 25%
Hubei Yuanyaotong Supply Chain Co., Ltd. 25%
Sino Great Wall M edical M anagement (Inner M ongolia) Co.,
Ltd. 25%
Sino Great Wall Health M anagement (Jiangsu) Co., Ltd. 25%
Sino Great Wall (Beijing) Investment Fund M anagement Co.,
Ltd. 25%
Sino Great Wall Culture Tourism Co., Ltd. 25%
Wu’an Juhe Photovoltaic Power Co., Ltd. 25%
Shanghai Lingrui International Trading Co., Ltd. 25%
Shenzhen Hongtulve Industrial Co., Ltd. 25%
Sino Great Wall Southwest Engineering Co., Ltd. 25%
Sino Great Wall Southwest Science and Technology Co., Ltd. 25%
Sino Great Wall Southwest Commercial and Trading Co.,
Ltd. 25%
Sino Great Wall Southwest Engineering Consultation Co.,
Ltd. 25%
Sino Great Wall Decoration and Design Co., Ltd. 25%
Huichang County Zhongcheng Construction Engineering Co.,
Ltd. 25%
Great Wall Biaodian Energy Co., Ltd. 25%
Kunming Sino Forest Industry Development Co., Ltd. 25%
Sino Great Wall Development (Hengqin) Co., Ltd. 25%
Sino Great Wall Real Estate (Hubei) Co., Ltd. 25%
SGW America LLC 21%
Sino Great Wall Group Co.,Limited 17%
Far eastern international engineering company,LLC 20%
Sino Great Wall(Philippines) International Corporation 30%
Sino Wai M an International Engineering Limited 12%
Sino Great Wall (HK) Property Co., Limited 17%
177
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
SGW HPEngineeringConstructionSDN.BHD 24%
SGW VENTURES SDN.BHD. 24%
SGW CONSTRUCTION (LANGKAWI) SDN.BHD. 24%
SINO GREAT WALL GENERAL TRADING &
15%
CONTRACTING CO.LTD
Sino Changcheng（Lao）Co.,Ltd 25%
Sino International Engineering (Laos) Co., Ltd. 25%
Sino Great Wall Investment (Laos) Co., Ltd. 25%
Sino Great Wall Group （UK）Co.,Limited 19%
Sino Great Wall International Engineering( MM ) Co.,Ltd 25%
Sino Great Wall International En gineering Co.,Ltd 0%
Inrich M e Engineering Co,.Ltd 17%
SINO GREAT
Sino Great WallInternationalEngineering(Thailand) Co.,Ltd. 20%
Sino Great Wall International Engineering(CNM I) Co.,LLC. 21%
SINO GREAT WALL（USA）.INC 21%
PT.SINO GREAT WALL INVESTM ENT INDONESIA 25%
PT.SINO GREAT WALL CONSTRUCTION INDONESIA 25%
Anshun Sino Great Wall Real Estate Development and
25%
Construction Co., Ltd.
Beijing Sino Xinda Real Estate Co., Ltd. 25%
Sino Great Wall Hebei Xiong’an Engineering Co., Ltd. 25%
Sino Great Wall Scientific and Technologic Development Co.,
25%
Ltd.
Weifang Sino Great Wall M edical care and Health Industry
25%
Co., Ltd.
Sino Great Wall (Guangzhou) Elevator Engineering Co., Ltd. 25%
Zhongda Chancheng Industrial (Chongqing) Co., Ltd. 25%
Sino Rongju Real Estate Development Co., Ltd. 25%
Chengwu County Shenguang Engineering Project
25%
M anagement Co., Ltd.
Sino Boda (Zhanjiang) Industrial Co., Ltd. 25%
Sino Great Wall Industrial (Chongqing) Co., Ltd. 25%
Sino Great WallDecoration Engineering (Beijing) Co., Ltd. 25%
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Sino Great Wall Co., Ltd. The Semi-annual Report 2019
2. Tax Preferences
(1) As verified by Beijing Munic ipal Office, SAT in 2013 as per Tax Category Verification Notice, the
taxable income of Sino Great Wall Des ign shall be 10% of the total income.
(2) According to provisions in Notice of the State Administration of Taxation on Several Issues Concerning
the Administration of Collection of Income Tax of Enterprises Operating Business across Different Regions and
Paying Taxes on a Consolidated Bas is (GSF (2008) No.28) on March 10, 2008, the head office (parent company)
of the operation units and the place of business, being established within territory of China and running business
across China without the legal personality (i.e. running production and operation activity across regions) shall be
deemed as the enterprise for consolidated taxation. If the parent Company adopt the consolidated taxation method
and the head office and the branches intend to prepay the enterprise income tax by stages, 50% of such taxes shall
be amortized to the branches and prepaid, while the other 50% shall be prepaid by the head office. The
amortization ratio of each branch shall be 0.35:0.35:0.30 among the operating income, the staff salary and the total
assets of each; the final settlement of annual corporate income tax shall be made to the tax authority by the parent
Company and shall never amortized to the branches.
(3) Sino Great Wall Group Co., Limited (hereinafter referred to as “Sino Hong Kong”) and Inrich Me
Engineering Co., Ltd. (hereinafter referred to as “Inrich Me”) under the subsidiary Company of the Company are
enterprises established in the Hong Kong Special Administrative Region, which shall pay the enterprise profit tax
at the rate of 16.5%. SINO GREAT WALL INTERNATIONAL ENGINEERING (MAC AU) CO., LIMITED
(hereinafter referred to as “SINO MACAU”) is an enterprise established in the Macao Special Administrative
Region, which shall pay the net profit tax and observe the progressive tax rate.
(4) Sino Great Wall International Engineering Co., Ltd. (hereinafter referred to as the “Sino International”),
the wholly-owned subsidiary Company of the Company, was granted the Certificate of High & New
Technological Enterprise on November 24, 2015 which was jointly approved and issued by Beijing Municipal
Science & Technology Commission, Beijing Finance Bureau, Beijing Munic ipal Office, SAT and Beijing Local
Taxation Bureau. Sino International was identified as the high and new technological enterprise (Certificate No.:
GR201511003125; Issue date: November 24, 2015; Term of Validity: Three Years), i.e. Sino International shall
pay the enterprise income tax at the rate of 15% in 2015, 2016 and 2017, respectively.
(5) According to Notice of Ministry of Finance and State Administration of Taxation on Pilot f or
Comprehensive Implementation of Business Tax Replaced by Value-added Tax (CS (2016) No.36), Wuhan
Commercial Workers Hospital LLC, the wholly-owned subsidiary Company of the Company was entitled to the
preferential policies of being exempted from VAT since May 1, 2016.
3. Other
According to provisions in the Notice of the State Administration of Taxation on the Tax Policies for
Implementing across the Country the Pilot Program of Levying Value-Added Tax in Lieu of Business Tax on the
Transportation Industry and Some Modern Service Industries (CS (2012) No.71) on July 31, 2012, the design
business of Sino Great Wall Decoration and Design Co., Ltd. (hereinafter referred to as the “Sino Great Wall
Design”) under the subsidiary Company of the Company was changed to taxable item of value-added tax from the
that of the business tax with the value-added tax rate of 3% since September 1, 2012 and Sino Great Wall Des ign
was deemed as the small-scale taxpayer.
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VII. Notes to Items in Consolidated Financial Statements
1.Monetary Resources
In RM B
Items Ending balance Opening balance
Cash on hand 3,431,627.74 3,116,229.51
Bank deposit 56,090,090.81 122,651,567.37
Other monetary resources 101,885,589.67 532,947,089.60
Total 161,407,308.22 658,714,886.48
Including: the total amount of overseas
16,550,177.27 51,902,846.57
funds
Other notes
Items Ending balance Opening balance
Bank acceptance guarantee deposit 10,013,312.10 230,602,428.53
Guarantee bond 51,667,953.23 181,351,839.27
Fixed time deposits or call deposits used for
3,024,675.00 100,024,675.00
guarantee
Overseas funds with limited remittance 873,465.90
Bond for wages of migrant workers 303,963.07 303,963.07
Freezing 36,875,686.27 19,790,717.83
Total 101,885,589.67 532,947,089.60
2. Transactional financial assets
In RM B
Items Ending balance Opening balance
Of which ：
Of which：
Other notes
3. Derivative financ ial assets
In RM B
Items Ending balance Opening balance
Other notes
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4. Notes receivable
1) Classified Presentation of Notes Receivable
In RM B
Items Ending balance Opening balance
Bank acceptance 5,480,000.00 0.00
Trade acceptance 39,336,417.70 1,518,790.00
Total 44,816,417.70 1,518,790.00
In RM B
Ending balance Opening balance
Book balance Bad debt reserve Book balance Bad debt reserve
Category Withdra Withdra
Book Book
Proporti wal Proporti wal
Amount Amount value Amount Amount value
on proporti on proporti
on on
Of which ：
Of which：
Accrual of bad debt provision by single item:
In RM B
Ending balance
Name
Book balance Bad debt reserve Withdrawal proportion Reason
Accrual of bad debt provision by portfolio:
In RM B
Ending balance
Name
Book balance Bad debt reserve Withdrawal proportion Reason
Notes：
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of
other receivables if the provision for bad debts of bills receivable is accrued according to the general model of
expected credit loss:
□ Applicable √ Not applicable
(2) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RM B
Amount of change in the current period
Category Opening balance Reversed or Closing balance
Accrual Write-off
collected amount
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Of which the significant amount of the reversed or collected part during the reporting period
□ Applicable √ Not applicable
（3）Notes receivable pledged by the Company at the end of the period
In RM B
Items Amounts pledged at the end of the period
（4）Notes Receivable Already Endorsed or Discounted by the Company at the End of Period, but Not Coming
Due Yet on the Date of Balance Sheet
In RM B
Confirmation-terminated amount at the Non-confirmation-terminated amount at
Items
end of period the end of period
Bank acceptance 3,858,910.00
Trade acceptance 4,460,584.00
Total 8,319,494.00
(5) Bills turned into account receivables due to the default of the drawer of the Company at the end of term
In RM B
Items End-of-period arrears among the receivables
Other notes
（6）The actual write-off of notes receivable for the current period
In RM B
Items Amount
The important notes receivable write-off situation：
In RM B
Whether the
Write-off money is
Name Nature Amount Reason procedures generated by the
performed associated
transaction
Notes：
5.Accounts receivable
1) Classified Disclosure of Accounts Receivable
In RM B
Ending balance Opening balance
Category Book balance Bad debt reserve Book Book balance Bad debt reserve Book
Amount Proporti Amount Withdra value Amount Proporti Amount Withdra value
182
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
on wal on wal
proporti proporti
on on
Accrual of bad 717,76 287,10 430,66 716,09 286,43
15.16 40.00 429,656,
debt provision by 6,987.3 6,794.9 0,192.4 4,881.3 13.72% 7,952.5 40.00%
% % 928.79
single item 3 3 0 2 3
Of which：
Accrual of bad 4,018,0 1,180,5 2,837,4 4,503,3 730,37
84.84 29.38 3,772,93
debt provision by 55,348. 83,623. 71,724. 09,614. 86.28% 2,285.3 16.22%
% % 7,329.45
portfolio 21 65 56 80 5
Of which：
4,735,8 1,467,6 3,268,1 5,219,4 1,016,8
100.00 69.38 100.00 4,202,59
Total 22,335. 90,418. 31,916. 04,496. 10,237. 56.22%
% % % 4,258.24
54 58 96 12 88
Accrual of bad debt provision by single item ：287106794.93
In RM B
Accounts receivable Ending balance
(per unit) Accounts receivable Bad debt reserve Withdrawal proportion Reasons for withdrawal
Shutdown for the
China Harbor
project of M ilitary
Engineering Company 717,766,987.33 287,106,794.93 40.00%
Academy, M inistry of
Ltd.
National Defense
Total 717,766,987.33 287,106,794.93 -- --
Accrual of bad debt provision by single item
In RM B
Accounts receivable Ending balance
(per unit) Accounts receivable Bad debt reserve Withdrawal proportion Reasons for withdrawal
Accrual of bad debt provision by single item
In RM B
Accounts receivable Ending balance
(per unit) Accounts receivable Bad debt reserve Withdrawal proportion Reasons for withdrawal
Accrual of bad debt provision by portfolio
In RM B
Accounts receivable Ending balance
(per unit) Accounts receivable Bad debt reserve Withdrawal proportion Reasons for withdrawal
Notes：
183
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of
other receivables if the provision for bad debts of bills receivable is accrued according to the general model of
expected credit loss:
□ Applicable √ Not applicable
Disclosure by aging
In RM B
Closing balance
Aging
Within 1 year（Including 1 year） 367,158,991.91
367,158,991.91
1-2 years 1,074,794,445.46
2-3 years 1,739,183,932.65
Over 3 years 836,917,978.19
3-4 years 533,846,351.71
4-5 years 185,018,763.12
Over 5 years 118,052,863.36
Total 4,018,055,348.21
The company shall comply with the disclosure requirements of the Shenzhen Stock Exchange Industry
Information Disclosure Guide No. 7 － Listed Companies Engaged in Civil Engineering Construction Business.
(2) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RM B
Amount of change in the current period
Category Opening balance Reversed or Closing balance
Accrual Write-off
collected amount
Of which the significant amount of the reversed or collected part during the reporting period
In RM B
Items Reversed or collected amount M ethod
（3）The current accounts receivable written-offs situation
In RM B
Items Amount written-offs
Account receivables actually written-offs during the reporting period：
In RM B
184
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Nature of account Reason for written Verification Arising form related
Name Amount written-off
receivable -off procedures transactions(Y/N)
Notes：
（4）The ending balance of account receivables owed by the imputation of the top five parties
Ending balance
Unit name Accounts receivable Proportion to total Bad debt reserve
accounts receivable
(%)
China Harbor Engineering Company Ltd. 833,351,267.74 17.60% 336,846,269.26
POWERCHINA Construction Group Ltd. 675,255,488.31 14.26% 193,843,163.07
Henan NO.1 Thermal Power Construction
297,332,124.14 6.28% 124,190,740.45
Company
Oxley Gem (Cambodia)Co.,Ltd 281,722,007.89 5.95% 28,172,200.79
Cambodia Petrochemical Co., Ltd. 211,776,257.79 4.47% 59,760,312.72
Total 2,299,437,145.87 48.55% 742,812,686.28
（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 note：
6. Financing of receivables
In RM B
Items End of term Opening term
Increase or decrease of financing backed by accounts receivable and changes in fair value thereof □ Applicable √
Not applicable
□Applicable √Not applicable
Relevant information of the provision for bad debts w ill be disclosed with reference to the disclosure method of
other receivables if the provision for bad debts of bills receivable is accrued according to the general model of
□Applicable √Not applicable
Other notes
7. Advance Payment
（1）Disclosed by aging:
In RM B
185
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Items Ending balance
Aging
Amount Proportion(%) Amount Proportion(%)
Within 1 year 119,092,458.52 36.49% 207,889,106.39 71.74%
1-2 years 138,133,509.84 42.33% 8,022,057.24 21.31%
2-3 years 53,914,086.16 16.52% 3,620,871.70 6.17%
Over 3 years 15,204,176.50 4.66% 729,583.80 0.78%
Total 326,344,231.02 -- 220,261,619.13 --
Notes：
（2）The ending balance of Prepayments owed by the imputation of the top five parties
Unit name Relationship with the Ending balance Proportion to the total Advance payment Reasons for not
company ending balance of time settlement
advance payments
(%)
Jiangsu Juye Jianshe Subcontractor Advance payment
Group Co., Ltd. 37,132,752.13 11.38% Within 3 years for subcontracted
project
Zhongcheng Jianye Subcontractor Advance payment
Construction Co., 31,356,742.06 9.61% Within 2 years for subcontracted
Ltd. project
Shandong Zhiyuan Subcontractor Advance payment
Building Installation 20,819,043.44 6.38% Within 2 years for subcontracted
Engineering Co., Ltd. project
Hangzhou Banwang Advance payment
Construction Labour Subcontractor 18,343,409.89 5.62% Within 2 years for subcontracted
service Co., Ltd. project
Longyan City Hengda Subcontractor Advance payment
Engineering Co., Ltd. 9,823,258.74 3.01% Within 2 years for subcontracted
project
Total 117,475,206.26 36.00%
Other notes：
8. Other accounts receivable
In RM B
Items Ending balance Opening balance
Other accounts receivable 1,609,942,861.49 2,186,223,361.40
Total 1,609,942,861.49 2,186,223,361.40
186
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
（1）Interest receivable
1) Classification of interest receivable
In RM B
Items Ending balance Opening balance
2) Important overdue interest
In RM B
Whether impairment
Borrowing unit Ending balance Overdue time Overdue reason occurs and the basis for
its judgment
Other notes：
3）Bad-debt provision
□ Applicable √ Not applicable
（2）Dividends receivable
1)Dividends receivable
In RM B
Items(or the invested unit) Ending balance Opening balance
2) Important dividends receivable over one year of account age
In RM B
Whether impairment
Items (or the invested
Ending balance Account age Reason for not recycling occurs and the basis for
unit)
its judgment
3）Bad-debt provision
□ Applicable √ Not applicable
Other notes：
（3）Other accounts receivable
1) Classified Disclosure of Other Accounts Receivable
In RM B
Nature Closing book balance Opening book balance
Other accounts receivables that are
individually significant and for which
20,402,980.00 22,402,980.00
individual bad debt reserves are
withdrawn
Other accounts receivable with bad debt
reserve withdrawn as per the portfolio of 1,880,687,952.40 2,341,177,867.34
credit risk characteristics
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Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Other accounts receivable with
insignificant single amount and having 2,963,005.73
bad debt reserve withdrawn separately
Total 1,901,090,932.40 2,366,543,853.07
2）Bad-debt provision
In RM B
Stage 1 Stage 2 Stage 3
Expected credit Expected credit loss over Expected credit losses for
Bad Debt Reserves Total
losses over the next life (no credit the entire duration (credit
12 months impairment) impairment occurred)
Balance as at January
—— —— —— ——
1, 2019 in current
Loss provision changes in current period, change in book balance with significant amount
□ Applicable √Not applicable
Disclosure by aging
In RM B
Aging Ending balance
Within 1 year(Including 1 year） 158,377,488.78
1-2 years 1,371,150,036.61
2-3 years 246,410,858.13
Over 3 years 104,749,568.88
3-4 years 47,765,797.84
4-5 years 43,378,672.91
Over 5 years 13,605,098.13
Total 1,880,687,952.40
3) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RM B
Amount of change in the current period
Category Opening balance Reversed or collected Closing balance
Accrual
amount
Of which the significant amount of the reversed or collected part during the reporting period
In RM B
Items Reversed or collected amount M ethod
188
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
4) Other Receivables with Actual Verification in the Reporting Period
Items Amount
Important cancelation after verification of other accounts receivable:
In RM B
Procedures Whether the
Reasons for
Nature of other Amounts cancelled performed for payment is generated
Unit name cancelation after
accounts receivable after verification cancelation after by related
verification
verification transactions
Other
5) Top 5 of the closing balance of the other accounts receivable collected according to the arrears party
In RM B
Proportion of the
total year end
Closing balance of
Name Nature Closing balance Aging balance of the
bad debt provision
accounts
receivable
Longyan City Intercourse funds
Hengda of the organization
338,357,011.98 Within 2 years 17.80% 32,234,196.76
Engineering Co.,
Ltd.
POWERCHINA Intercourse funds
Construction of the organization 251,345,988.90 1-2 years 13.22% 25,134,598.89
Group Ltd.
Yueyang Public Tender bond
Resource 131,500,000.00 2-3 years 6.92% 39,450,000.00
Trading Center
Hebei Xuxing Tender bond
55,000,000.00 1-2 years 2.89% 5,500,000.00
Industrial Co., Ltd.
China Harbor Intercourse funds
Engineering of the organization 54,300,929.28 Within 4 years 2.86% 17,527,531.41
Company Ltd.
Total -- 830,503,930.16 -- 43.69% 119,846,327.06
(6) Accounts receivable involved with government subsidies
In RM B
Estimated time,
Name of government
Name Closing balance Closing aging amount and basis of
subsidy project
collection
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(7) Other account receivable which terminate the recognition owning to the transfer of the financial assets Nil
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other accounts
receivable
Other note：
9.Inventory
Whether implemented new revenue guidelines
□ Yes √No
（1）Category of Inventory
In RM B
Ending balance Opening balance
i Depreciation Depreciation
Book balance Book value Book balance Book value
reserve reserve
Raw materials 98,275.30 98,275.30 110,557.92 110,557.92
M erchandise
3,325,663.17 3,325,663.17 10,708,600.50 10,708,600.50
inventory
Completed and
unsettled assets
formed by the 965,637,960.46 4,354,226.05 961,283,734.41 678,132,183.22 4,354,226.05 673,777,957.17
construction
contract
Development
30,299,350.36 30,299,350.36 30,299,350.36 30,299,350.36
costs
Others 2,067,436.21 2,067,436.21 2,635,112.28 2,635,112.28
1,001,428,685.
Total 4,354,226.05 997,074,459.45 721,885,804.28 4,354,226.05 717,531,578.23
50
Whether the company shall comply with the disclosure requirements of the Shenzhen Stock Exchange Industry
Information Disclosure Guide No. 4 － Listed Companies Engaged in the Seed Industry and Planting Bus iness
No
（2）Depreciation Reserve of Inventories
In RM B
Amount increased of current Amount decreased of current
Opening period period
Items Ending balance
balance Transferred-bac
Withdrawn Others Others
k or written-off
Completed and 4,354,226.05 4,354,226.05
190
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unsettled assets
formed by the
construction
contract
Total 4,354,226.05 4,354,226.05
（3）Description about Capitalized Amount of Borrowing Costs Contained in Ending Balance of Inventories
（4）The completed and unsettled assets formed by the construction contract at the end of the period
In RM B
Items Amount
Aggregate costs incurred 18,832,783,056.38
Aggregate gross profits acknowledged 4,350,050,237.36
M inus: estimated losses 4,354,226.05
Amount settled 22,217,195,333.28
Completed and unsettled assets formed by the construction
961,283,734.41
contract
Other description:
10.Contact assets
In RM B
Ending balance Opening balance
Items Depreciation Depreciation
Book balance Book value Book balance Book value
reserve reserve
The amount and reasons of major changes in the book value of the contract assets during the current period ：
In RM B
Items Amount Reason
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of
other receivables if the provision for bad debts of bills receivable is accrued according to the general model of
expected credit loss:
□ Applicable √ Not applicable
Provision for impairment of assets under the contract for the current period
□ Applicable √ Not applicable
Other notes：
11. Holding assets for sale
191
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
In RM B
Ending carrying Impairment Ending carrying Estimated Estimated
Items Fair value
amount provision value disposal cost disposal time
Other notes：
12. Non-current Assets Due Within One Year
In RM B
Items Ending balance Opening balance
Important creditor's rights investment / other creditor's rights investment
Items
Ending balance Opening balance
Items Face Actual Due Face Actual Due
Rate Rate
value rate date value rate date
Other notes：
13. Other current assets
Whether implemented new revenue guidelines
□ Yes √No
In RMB
Items Ending balance Opening balance
Advance tax 93,709.32 291,392.34
Input tax to be deducted or verified 3,881,920.77 5,504,405.10
Total 3,975,630.09 5,795,797.44
Other notes：
14.Creditor's rights investment
In RM B
Ending balance Opening balance
Items Depreciation Depreciation
Book balance Book value Book balance Book value
reserve reserve
Important creditor's rights investment
In RM B
Ending balance Opening balance
Items Face Actual Due Face Actual Due
Rate Rate
value rate date value rate date
2）Bad-debt provision
192
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
In RM B
Stage 1 Stage 2 Stage 3
Expected credit Expected credit loss over Expected credit losses for
Bad Debt Reserves Total
losses over the next life (no credit the entire duration (credit
12 months impairment) impairment occurred)
Balance as at January
—— —— —— ——
1, 2019 in current
Loss provision changes in current period, change in book balance with significant amount
□ Applicable √Not applicable
Other notes：
15.Other creditor's rights investment
In RM B
Cumulativ
e loss
impairmen
Change of Cumulativ
t
Opening Accrued fair value Closing e changes
Items Cost recognized Remark
balance interest in the balance of fair
in other
period value
comprehen
sive
income
Important other creditors' investment
In RM B
Closing Opening balance
Other creditors'
Face Actual Due Face Actual Due
investment Rate Rate
value rate date value rate date
Accrual of impairment provision
In RM B
Stage 1 Stage 2 Stage 3
Expected credit Expected credit loss over Expected credit losses for
Bad Debt Reserves Total
losses over the next life (no credit the entire duration (credit
12 months impairment) impairment occurred)
Balance as at January
—— —— —— ——
1, 2019 in current
Loss provision changes in current period, change in book balance with significant amount
□ Applicable √ Not applicable
Other notes：
193
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
16. Long-Term Accounts Receivable
（1）Long-Term Accounts Receivable
In RM B
Ending balance Opening balance
Range of
Items Bad debt Bad debt
Book balance Book value Book balance Book value discount rate
reserve reserve
Long-Term
16,708,613.1 16,708,613.1 16,708,613.1 16,708,613.1
Accounts
9 9 9 9
Receivable
16,708,613.1 16,708,613.1 16,708,613.1 16,708,613.1
Total --
9 9 9 9
Provision for bad debts
In RM B
Stage 1 Stage 2 Stage 3
Expected credit Expected credit loss over Expected credit losses for
Bad Debt Reserves Total
losses over the next life (no credit the entire duration (credit
12 months impairment) impairment occurred)
Balance as at January
—— —— —— ——
1, 2019 in current
Loss provision changes in current period, change in book balance with significant amount
□ Applicable √ Not applicable
(2) Long-term accounts receivable which terminate the recognition owning to the transfer of the financial assets
(3) The amount of the assets and liabilities formed by the transfer and the continues involvement of long-term
accounts receivable
Other notes
17. Long-term equity investment
In RM B
Increase /decrease Closing
Cash Withdr balance
Openin
Investe Additio Other Change bonus awal of Closing of
g
es nal compre s in balance impair
or impair Other
balance investm hensive other
ent income equity profits ment ment
announ provisi provisi
194
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
ced to on on
issue
I. Joint ventures
II. Associates
Sino
Great
Wall
Zhihui
Housin
g 23,579, 23,579,
Propert 171.71 171.71
y
(Zhanji
ang)
Co.,
Ltd.
Cenang
Resort 83,258, 83,258,
Sdn 639.12 639.12
Bhd
III.
Subsidi
ary
AlorVis
ta
Develo
pment
Sdn
Bhd
106,83 106,83
Subtota
7,810.8 7,810.8
l
3 3
106,83 106,83
Total 7,810.8 7,810.8
3 3
Other notes
18. Other equity instruments investment
In RMB
Items Closing balance Opening balance
195
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Itemized disclosure of the current non - trading equity instrument investment
In RM B
Amount of
other Reasons for other
Reasons for being measured at
Recognized comprehensive comprehensive
Accumulating Accumulati fair value and whose changes are
Name dividend income income
gains ng losses included in other comprehensive
income transferred to transferred to
income
retained retained earnings
earning
Other notes：
19.Other non-current assets
In RM B
Items End of term Beginning of term
Other notes
20. Investment Real Estate
（1）Investment real estate using cost measurement
□ Applicable √ Not applicable
（2）Investment real estate using fair value measurement
□ Applicable √ Not applicable
（3）Investment real estate with the certificate of title not transacted
In RM B
Reason(s) for the failure to transact the
Items Book value
certificate of title
Other notes
Nil
21、Fixed Assets
In RM B
Items Ending balance Opening balance
Fixed assets 139,240,017.20 158,746,947.91
Total 139,240,017.20 158,746,947.91
196
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
（1）Fixed assets
In RM B
Houses and M echanical Transportation
Items Other equipment Total
buildings equipment Equipment
I. Original book
value
1. Opening
103,337,960.18 105,070,825.25 39,040,693.58 13,950,128.70 261,399,607.71
balance
2. Amount
increased of 0.00 0.00 0.00 0.00 0.00
current period
（1）Purchase 0.00
（2）Transfer-in of
construction in 0.00
progress
（3）Increase of
business 0.00
combination
3. Amount
decreased of 10,065,112.19 357,460.55 396,747.61 6,487.19 10,825,807.54
current period
（1）Disposal or
10,065,112.19 357,460.55 396,747.61 6,487.19 10,825,807.54
retirement
4. Ending balance 93,272,847.99 104,713,364.70 38,643,945.97 13,943,641.51 250,573,800.17
II. Accumulative
depreciation
1. Opening
29,794,321.47 40,732,183.08 20,451,855.15 11,674,300.10 102,652,659.80
balance
2. Amount
increased of 3,518,948.30 4,651,651.97 1,983,275.87 220,350.79 10,374,226.94
current period
（1）Withdrawn 3,518,948.30 4,651,651.97 1,983,275.87 220,350.79 10,374,226.94
3. Amount
decreased of 1,283,786.57 163,538.61 240,964.75 4,813.84 1,693,103.77
current period
197
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
（1）Disposal or
1,283,786.57 163,538.61 240,964.75 4,813.84 1,693,103.77
retirement
4. Ending balance 32,029,483.20 45,220,296.44 22,194,166.27 11,889,837.05 111,333,782.97
III. Depreciation
reserve
1. Opening
balance
2. Amount
increased of
current period
（1）Withdrawn
3. Amount
decreased of
current period
（1）Disposal or
retirement
4. Ending balance
IV Book value
1. Ending book
61,243,364.79 59,493,068.26 16,449,779.70 2,053,804.46 139,240,017.20
value
2. Opening book
73,543,638.71 64,338,642.17 18,588,838.43 2,275,828.60 158,746,947.91
value
（2）Temporarily idle fixed assets
In RM B
Accumulative
Items Original book value Depreciation reserve Book value Note
depreciation
（3）Fixed asset rented through financing lease
In RM B
Accumulative
Items Original book value Depreciation reserve Book value
depreciation
House buildings 11,152,810.36 10,560,357.40 592,452.96
M echanical equipment 34,196,914.00 21,048,715.53 13,148,198.47
198
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Total 45,349,724.36 31,609,072.93 13,740,651.43
（4）Fixed assets leased through operating leases
In RM B
Items Ending book value
（5）Fixed assets with the certificate of title not transacted
In RM Bn
Reason(s) for the failure to transact the
Items Book value
certificate of title
Other notes
（6）Disposal of fixed assets
In RM B
Items Ending balance Opening balance
Other notes
22．Construction in Progress
In RM B
Items Ending balance Opening balance
Construction in progress 36,805,894.03 36,697,284.04
Total 36,805,894.03 36,697,284.04
（1）Construction in Progress
In RM B
Ending balance Opening balance
Items Depreciation Depreciation
Book balance Book value Book balance Book value
reserve reserve
Equipment and
Construction in 36,805,894.03 36,805,894.03 36,697,284.04 36,697,284.04
progress
Total 36,805,894.03 36,805,894.03 36,697,284.04 36,697,284.04
（2）Change of Important Projects of Construction in Progress in Current Period
I n RM B
199
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Includi
Amoun
Proport ng:
t Accum
Amou Other ion of Amoun
transfer ulative Current
Openi nt amount accumu t of
Name red into Ending Project amount interest
Budget ng increas decreas lative interest Capital
of fixed balanc progres of capitali
amount balanc ed of ed in project capitali source
items assets e s interest zation
e current current input to zation
in capitali rate
period period the in the
current zation
budget current
period
period
Liangd
u
Centra
l
Hospit
al of
Liupan
shui
City 509,32
5,001, 5,001,
(tentati 0,300. Other
448.94 448.94
ve 00
name)
medic
al and
nursin
g
integra
tion
project
PPP
project
of the
north
coast
landsc
10,909
ape 8,476, 8,476,
,100.0 67% Other
engine 351.41 351.41
0
ering
of
Huanb
aiyang
Lake
(Centr
200
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
al
Lake),
PPP
project
of
Baiyan
g Lake
Headq
uarters
Econo
mic
Port,
Xinga
ng
Distric
t,
Cheng
lingji,
Hunan
Provin
ce
Constr
uction
Project
of
Radio
and
Televi
sion 80,042 15,792 15,792
M edia ,900.0 ,351.4 ,351.4 13% Other
Activit 0 8 8
y
Center
,
Cheng
wu
Count
y
600,27 29,270 29,270
Total 2,300. ,151.8 ,151.8 -- -- --
00 3 3
201
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
（3）Impairment provision of project under construction withdrawn in the period
In RM B
Items Current withdrawal amount Reason for withdrawal
Other notes
（4）Engineering materials
In RM B
Ending balance Opening balance
Items Depreciation Depreciation
Book balance Book value Book balance Book value
reserve reserve
Other notes
23. Productive Biological Asset
（1）Productive biological assets measured at costs
□ Applicable √ Not applicable
（2）Productive biological assets measured according to fair value
□ Applicable √ Not applicable
24. Oil and gas assets
□Applicable √ Not applicable
25.Right-to-use assets
In RM B
Items Total
Other notes：
26. Intangible Assets
（1）Intangible Assets
In RM B
Non-patent
Items Land use right Patent right Software Total
technology
I. Original price
1. Balance at 108,621,002.59 4,551,469.92 113,172,472.51
202
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
period-beginning
2.Increase in the
current period
(1) Purchase
（2）Internal R &
D
（3）Increased of
Enterprise
Combination
3.Decreased
amount of the 7,714,044.00 7,714,044.00
period
（1）Disposal 7,714,044.00 7,714,044.00
4. Balance at
100,906,958.59 4,551,469.92 105,458,428.51
period-end
II. Accumulated
amortization
1. Balance at
9,743,123.91 3,508,096.93 13,251,220.84
period-beginning
2. Increase in the
1,528,598.52 289,109.57 1,817,708.09
current period
(1) Withdrawal 1,528,598.52 289,109.57 1,817,708.09
3.Decreased
amount of the 647,151.49 647,151.49
period
（1）Disposal 647,151.49 647,151.49
4. Balance at
10,624,570.94 3,797,206.50 14,421,777.44
period-end
III. Impairment
provision
1. Balance at
period-beginning
2. Increase in the
current period
203
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
(1) Withdrawal
3.Decreased
amount of the
period
（1）Disposal
4. Balance at
period-end
4. Book value
1.Book value at
90,282,387.65 754,263.42 91,036,651.07
period -end
2.Book value at
98,877,878.68 1,043,372.99 99,921,251.67
period-beginning
The proportion of ending intangible assets generated via internal R&D of the Company in the balance of
intangible assets.
（2）Conditions of land use right with incomplete certificates of title
In RM B
Reason(s) for the failure to transact the
Items Book value
certificate of title
Other notes:
27. Development Expenditure
In RM B
Opening Ending
Items Amount increased of current period Amount decreased of current period
balance balance
Other notes
28. Goodwill
(1) Original book value of goodwill
In RM B
Name of
invested units Opening Amount increased of current Amount decreased of current
Ending balance
or the matters balance period period
forming
204
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
goodwill
Wuhan
Commercial
27,257,314.49 27,257,314.49
Workers
Hospital LLC
Sino Great
Wall Southwest
17,948,978.53 17,948,978.53
Engineering
Co., Ltd.
SAFAT GULF
GENERAL
TRADING &
5,547,635.00 5,547,635.00
CONTRACTI
NG
COM PANY
Far eastern
international
10,920.04 10,920.04
engineering
Company,LLC
Total 50,764,848.06 50,764,848.06
(2) Depreciation Reserve of Goodwill
In RM B
Name of
invested units
Opening Amount increased of current Amount decreased of current
or the matters Ending balance
balance period period
forming
goodwill
Sino Great
Wall Southwest
17,948,978.53 17,948,978.53
Engineering
Co., Ltd.
SAFAT GULF
GENERAL
TRADING &
5,547,635.00 5,547,635.00
CONTRACTI
NG
COM PANY
Total 23,496,613.53 23,496,613.53
Company decides to record full goodwill impairment.
205
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Description of process of goodwill impairment test, key factors (including estimated growth rate at the time of
future cash flow value estimation, growth rate during the stable period, profit rate, discount rate and) and the
method to confirm the loss of goodwill impairment:
Influences of goodwill impairment test
Other notes
29. Long-term deferred expense
In RM B
Amount increased Amount amortized Other amount
Items Opening balance Ending balance
of current period of current period decreased
Decorate cost 4,076,589.98 2,632,913.41 1,443,676.57
Overseas fees for
1,191,474.19 862,611.96 328,862.23
letter of guarantee
Others 1,459,624.73 193,396.23 1,266,228.50
Less: Long-term
deferred expenses
coming due within
1 year
Total 6,727,688.90 3,688,921.60 3,038,767.30
Other notes
30.Deferred income tax assets/deferred income tax liabilities
(1) Non-offset deferred income tax assets
In RM B
Ending balance Opening balance
Items Deductible temporary Deferred Income Tax Deductible temporary Deferred Income Tax
difference Assets difference Assets
Asset depreciation
740,943,807.98 117,317,681.38 700,024,233.95 107,117,209.33
reserve
Deductible losses 43,486,026.03 10,871,506.51
Total 740,943,807.98 117,317,681.38 743,510,259.98 117,988,715.84
(2) Non-offset deferred income tax liabilities
In RM B
Items Ending balance Opening balance
206
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Taxable temporary Deferred Income Tax Taxable temporary Deferred Income Tax
difference Liabilities difference Liabilities
Appraised increment
of assets for business
94,038,813.64 23,509,703.41 97,477,824.72 24,369,456.18
combination not under
the same control
Total 94,038,813.64 23,509,703.41 97,477,824.72 24,369,456.18
(3) Offset deferred income tax assets or liabilities
In RM B
Offset amount of Offset amount of Balance of deferred tax
Balance of deferred tax
deferred tax assets and deferred tax assets and assets and liabilities at
Items assets and liabilities at
liabilities at the end of liabilities at the the beginning of a
the end of a period
a period beginning of a period period
Deferred Income Tax
117,317,681.38 117,983,727.91
Assets
Deferred Income Tax
23,509,703.41 24,369,456.18
Liabilities
(4) Details of unconfirmed deferred income tax assets
In RM B
Items Ending balance Opening balance
Deductible temporary difference 1,072,730,889.21 506,759,969.56
Deductible losses 2,429,144,351.68 1,297,146,979.98
Total 3,501,875,240.89 1,803,906,949.54
(5) Deductible losses of unconfirmed deferred income tax assets due in the following years
In RM B
Year Ending balance Opening balance Note
Other notes:
31. Other non-current assets
Whether implemented new revenue guidelines
□ Yes √No
In RM B
Items Closing balance Opening balance
207
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
PPP Project investment 664,524,570.00 664,524,570.00
Advance payment for purchasing
128,895,990.79 129,221,120.79
long-term assets
Other project investment 114,935,222.16 121,953,450.20
Others 8,232,416.90 8,810,652.00
Total 916,588,199.85 924,509,792.99
Other notes：
32. Short-term Loans
(1) Classification of Short-Term Loans
In RM B
Items Ending balance Opening balance
Pledged loan 50,000,000.00
M ortgaged loan 112,696,582.10
Guaranteed loan 2,650,398,046.91
Credit loan 49,490,000.00
Trade acceptance for which endorsement
and discounting have been conducted
while still being unmatured at the
balance sheet date
Total 3,306,944,094.49 2,862,584,629.01
Description for classification of short-term loans:
(2) Description for overdue but unpaid short-term loans
The total overdue but unpaid short-term loans by the end of this period is 0, in which details of significant overdue
but unpaid short-term loans are as follow:
In RM B
Late payment interest
Borrower Ending balance Interest rate Overdue period
rate
Other notes：
33. Transactional financial liabilities
In RM B
Items Ending balance Opening balance
Including：
208
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Including：
Other notes：
34. Derivative financ ial liability
In RM B
Items Ending balance Opening balance
Other notes：
35.Notes payable
In RM B
Items Closing balance Opening balance
Commercial acceptance 335,643,774.40 471,267,864.12
Bank acceptance bills 61,000,000.00 562,819,635.60
Total 396,643,774.40 1,034,087,499.72
Overdue but unpaid notes receivable by the end of the period is 4381,643,774.40 yuan.
36. Accounts payable
(1) List of accounts payable
In RM B
Items Closing balance Opening balance
Project construction cost 814,784,702.22 870,866,176.06
Payment for purchasing long-term assets
Payment for medicine 19,212,223.33 17,497,130.23
Others 3,792,324.14
Total 833,996,925.55 892,155,630.43
(3) Significant accounts receivable with account age of more than 1 year
In RM B
Items Ending balance Causes for non-payment or carryover
Other notes:
Nil
209
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
37. Advance from customers
Whether implemented new revenue guidelines
□ Yes √No
(1) List of advance from customers
In RM B
Items Closing balance Opening balance
Unfinished project with settled
10,850,086.84
construction cost
Advance payment for project
424,631,860.73 391,350,850.34
construction cost
Advance payment for medical treatment 908,829.95 845,407.87
Advance payment for lease 64,668,308.96 43,733,325.87
Advance payment for rent 31,322,073.00 31,322,073.00
Total 521,531,072.64 478,101,743.92
(2) Significant items received in advance with account age of more than 1 year
Nil
(3) Description for unfinished project with settled construction cost due to end-of-period contract conclusion
In RM B
Items Amount
Accrued occurred cost 18,832,783,056.38
Accrued recognized gross profit 4,350,050,237.36
Less：advance loss 4,354,226.05
Settled amount 22,217,195,333.28
Unfinished project with settled construction cost arising from
961,283,734.41
contract conclusion
Other notes：
38.Contract liabilities
In RM B
Items Closing balance Opening balance
Book value has major changes in the period and causes
In RM B
Items Amount changes Causes
210
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
39. Payroll payable
(1) Presentation of payroll payable
In RM B
Amount increased of Amount decreased of
Items Opening balance Ending balance
current period current period
I. Short-term
20,727,897.18 368,573,235.31 303,232,214.76 86,068,917.73
remuneration
2. Post-demission
welfare - defined 345,941.13 4,003,990.59 3,952,684.39 397,247.33
contribution plans
Total 86,414,858.86 86,340,075.20 97,743,709.83 75,011,224.23
(2) Presentation of short-term remuneration
In RM B
Amount increased of Amount decreased of
Items Opening balance Ending balance
current period current period
1. Salary, bonus,
allowance and 84,912,841.53 73,510,997.06 86,993,040.09 71,430,798.50
subsidy
2. Employees’
923,582.18 2,354,663.97 2,354,663.97 923,582.18
welfare expense
3. Social
insurance 53,015.28 2,996,371.23 2,729,794.29 319,592.22
premium
Including:
M edical insurance 3,281.40 2,746,242.13 2,460,037.23 289,486.30
premium
Industrial
injury 16,097.35 62,919.34 70,613.38 8,403.31
insurance
premium
M aternity
33,636.53 187,209.76 199,143.68 21,702.61
insurance
premium
4. Housing fund 179,478.74 3,462,374.35 1,701,849.09 1,940,004.00
211
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
5. Labor union
outlay and
11,678.00 11,678.00 0.00
employees’
education outlay
Total 86,068,917.73 82,336,084.61 93,791,025.44 74,613,976.90
(3) Presentation of Drawing Plans Set Up
In RM B
Amount increased of Amount decreased of
Items Opening balance Ending balance
current period current period
1. Basic pension
345,519.30 3,830,488.52 3,797,678.22 378,329.60
insurance
2. Unemployment
421.83 173,502.07 155,006.17 18,917.73
insurance premium
Total 345,941.13 4,003,990.59 3,952,684.39 397,247.33
Other notes：
40. Taxes payable
In RM B
Items Ending balance Opening balance
Value-added tax 86,159,784.29 85,518,697.30
Enterprise income tax 218,960,138.30 221,830,373.42
Personal income tax 7,018,895.33 6,468,895.33
Urban maintenance and construction tax 3,776,658.05 4,026,082.61
Educational surtax 2,815,593.48 3,001,921.43
Other taxes 66,055,049.36 73,111,917.43
Total 384,786,118.81 393,957,887.52
Other notes：
41. Other accounts payable
In RM B
Items Ending balance Opening balance
Interest payable 505,034,931.59 280,806,670.49
Dividends payable 8,392,335.45 8,541,818.64
Other accounts payable 1,704,565,803.67 1,923,064,481.30
212
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Total 2,217,993,070.71 2,212,412,970.43
(1) Interest payable
In RM B
Items Ending balance Opening balance
Payment of principal at maturity and
242,502,415.77 142,367,316.80
interest in installments
Interest payable on short-term loans 259,787,955.64 137,060,010.22
Interests withdrawn for overdue notes 2,744,560.18 1,379,343.47
Total 505,034,931.59 280,806,670.49
Significant overdue but unpaid interest
In RM B
Borrower Overdue amount Causes for overdue
CITIC Trust Co., Ltd. 36,899,539.35 Capital shortage
Industrial International Trust Co., Ltd. 17,894,803.57 Capital shortage
Industrial Bank Houhai Branch 22,666,694.77 Capital shortage
Bohai International Trust Co., Ltd. 40,916,334.59 Capital shortage
Xiamen International Bank Zhuhai
6,673,461.94 Capital shortage
Branch
Bank of Ningbo Shenzhen Branch 6,238,632.40 Capital shortage
Shenzhen Rural Commercial Bank
2,466,660.02 Capital shortage
Futian Branch
Wanxiang Trust Co., Ltd. 30,097,183.56 Capital shortage
Zhongjiang International Trust Co., Ltd. 68,082,184.06 Capital shortage
Baoshang Bank Shenzhen Branch 26,385,212.95 Capital shortage
Shenzhen Rural Commercial Bank
1,036,262.79 Capital shortage
M eilin Branch
China Bohai Bank Shenzhen Branch 6,828,436.71 Capital shortage
Shaanxi International Trust Co., Ltd. 27,375,163.93 Capital shortage
Chang'an International Trust Co., Ltd. 15,360,496.85 Capital shortage
Industrial International Trust Co., Ltd. 21,336,446.17 Capital shortage
Bridge Trust Co., Ltd. 53,876,933.97 Capital shortage
Shanghai Pudong Development Bank
7,007,077.97 Capital shortage
Shenzhen Center District Branch
Bank of Jiujiang Zhuhai Branch 11,375,270.32 Capital shortage
213
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
China M insheng Bank Shenzhen Branch 9,053,680.23 Capital shortage
Shanghai Pudong Development Bank
9,995,142.09 Capital shortage
Fulicheng Subbranch
China Railway Trust Co., Ltd. 4,352,544.37 Capital shortage
Ping'an International Financial Leasing
1,776,839.22 Capital shortage
Co., Ltd.
Bank of Beijing Shuangxiu Subbranch 36,284,712.70 Capital shortage
Total 463,979,714.53 --
Other notes：
(2) Dividends payable
In RM B
Items Ending balance Opening balance
Common stock dividends 8,392,335.45 8,541,818.64
Total 8,392,335.45 8,541,818.64
Other description, including reasons for significant dividends in arrears for over a year:
(3) Other accounts payable
1) Presentation of other accounts payable by the nature of accounts
In RM B
Items Ending balance Opening balance
Tender bond, performance bond and
59,294,032.21 29,414,375.04
deposit
Personal intercourse funds and withheld
252,866,721.00 266,550,420.26
items
Intercourse funds of the organization 649,477,026.42 841,985,904.64
Payment for subscription of non-public
33,536.80
offerings
Others 742,928,024.04 785,080,244.56
Total 1,704,565,803.67 1,923,064,481.30
2) Other significant accounts receivable with account age of more than 1 year
In RM B
Items Ending balance Causes for non-payment or carryover
Other notes
214
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
42. Liabilities held for sale
Unit: Yuan
Items Ending balance Opening balance
Other notes:
43. Non-current liabilities coming due within one year
In RM B
Items Ending balance Opening balance
Long-term loans coming due within 1
906,690,152.95 906,690,152.95
year
Long-term account payable coming due
69,029,828.60 69,029,828.60
within 1 year
Total 975,719,981.55 975,719,981.55
Other notes：
215
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
44. Other current-liabilities
Whether implemented new revenue guidelines
□ Yes √No
In RM B
Items Closing balance Opening balance
Changes in short-term debentures payable：
In RM B
Amortisati
Balance at the on of
M aturity Issuance Issuance during Interest at Repayment for Balance at the
Name Face value Issuance date beginning of discounts
period amounts the year face value the period end of the year
the year or
premium
Other notes：
216
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
45.Long-term borrowings
（1）Long-term term borrowings
In RM B
Items Ending balance Opening balance
Guaranteed loan 1,026,690,152.95 1,026,690,152.95
Less: Long-term loans coming due
-906,690,152.95 -906,690,152.95
within 1 year (see Note VI, 25)
Total 120,000,000.00 120,000,000.00
Description for classification of long-term loans:
None
Other description: including the range of interest rate:
Nil
46. Bonds payable
(1) Bonds payable
InRM B
Items Ending balance Opening balance
First period bond financing plan of Sino
Great Wall International Engineering 266,242,374.52 254,801,342.47
Co., Ltd. in 2017
Total 266,242,374.52 254,801,342.47
(2) Increase or decrease of bonds payable (excluding other financial instruments classified as financial
liabilities, like preferred stocks and perpetual bonds, etc.)
In RM B
Amortizat
Interests Amount
Issue of ion of Other
Bond Date of Bond Issued Opening withdraw repaid of Ending
Par value current premium amount
name issue period amount balance n as per current balance
period or decreased
par value period
discount
First
period
bond 245,000,0 245,000,0 254,801,3 11,441,03 266,242,3
2017/1/31 2020/1/31
financing 00.00 00.00 42.47 2.05 74.52
plan of
Sino
217
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Great
Wall
Internatio
nal
Engineeri
ng Co.,
Ltd. in
2017
245,000,0 254,801,3 11,441,03 266,242,3
Total -- -- --
00.00 42.47 2.05 74.52
(3) Description of conversion conditions and time for convertible corporate bonds
Nil
(4) Description of other financial instruments classified as financial liabilities
Basic description of financial instruments including preferred stocks and perpetual bonds issued at the end of a
period
Nil
Presentation of changed situations of financial instruments including preferred stocks and perpetual bonds issued
at the end of a period
In RM B
Issued Amount increased of current Amount decreased of
Opening Ending
financial period current period
instruments Amount Book value Amount Book value Amount Book value Amount Book value
Description of other financial instruments classified as financial liabilities
Nil
Other description
Nil
47. Lease liability
In RM B
Items Ending balance Opening balance
Other notes
Nil
218
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
48. Long-term payable
In RM B
Items Closing balance Opening balance
Long-term payable 276,923.55 322,990.35
Total 276,923.55 322,990.35
(1) Long-term payable listed by nature of the account
In RM B
Items Closing balance Opening balance
Financing lease 276,923.55 322,990.35
Other notes
Nil
（2）Specific payable
In RM B
Items Opening balance Increase Decrease Closing balance Cause
Other notes
Nil
49. Long-term employee salary payable
（1）Long-term employee salary payable
In RM B
Items Closing balance Opening balance
(2) Changed situations of benefit plan measured and set up
Present value of benefit plan measured and set up
Unit: Yuan
Items Amount incurred of current period Amount incurred of last period
Asset set up:
In RM B
Items Amount incurred of current period Amount incurred of last period
Net liabilities or net assets of benefit plan measured and set up
In RM B
Items Amount incurred of current period Amount incurred of last period
219
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Explanation on the content of benefit plan set up and related risks, impact on the company’s cash flow, timing and
uncertainties:
Explanation on the sensitivity analysis result and significant actuarial assumptions of benefit plan set up:
Other notes
50. Estimates liabilities
Whether implemented new revenue guidelines
□ Yes √No
In RM B
Items Ending balance Opening balance Reason for formation
Pending actions 2,958,723.15 2,958,723.15
Total 2,958,723.15 2,958,723.15 --
Other descriptions, including significant assumptions and appraisal of significant accrued liabilities :
51. Deferred income
In RM B
Amount increased of Amount decreased Reason for
Items Opening balance Ending balance
current period of current period formation
Projects involving governmental subsidy:
Unit: Yuan
Amount
Amount
Subsidy recorded in Cost offset
recorded in Related to
Liability Opening increased non-operatin expenses Other Ending
other benefits assets/Relate
items balance over current g income over current changes balance
over current d to income
period over current period
period
period
Other notes: Nil
52. Other Non-current liabilities
Whether implemented new revenue guidelines
□ Yes √No
In RM B
Items Ending balance Opening balance
Other notes：Nil
220
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
53. Capital Stock
In RM B
Increase/Decrease (+/-)
Shares
Opening Shares Ending
New shares converted
balance presented for Others Subtotal balance
issued from public
free
reserve
Total amount 1,698,245,01 1,698,245,01
of shares 1.00 1.00
Other notes：
54. Other equity instruments
(1) Basic description of financial instruments including preferred stocks and perpetual bonds issued at the end of a
period
Nil
(2) Presentation of changed situations of financial instruments including preferred stocks and perpetual bonds
issued at the end of a period
In RM B
Issued Amount increased of current Amount decreased of
Opening Ending
financial period current period
instruments Amount Book value Amount Book value Amount Book value Amount Book value
Explanation on the reason for increase, decrease or change of other current equity instruments and the accounting
methods:
Nil
Other notes:
55. Capital reserve
In RM B
Amount increased of Amount decreased of
Items Opening balance Ending balance
current period current period
Capital premium
(capital stock -857,285,524.28 -857,285,524.28
premium)
Other capital reserve -441,561,015.79 -441,561,015.79
Total -1,298,846,540.07 -1,298,846,540.07
221
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Other description, including explanation on the reason for increase, decrease or change of current special reserve:
56. Inventory stock
In RM B
Amount increased of Amount decreased of
Items Opening balance Ending balance
current period current period
Other description, including explanation on the reason for increase, decrease or change of current inventory stock
Nil
57. Other composite benefits
In RM B
Amount incurred of current period
Less：
Less：
Prior
Amount
period
transferred
included
into profit
in other After-ta After-ta
and loss in
Amount composi Less： x x Closin
the current
Opening incurred te Income attribute attribute g
Items period that
balance before income tax to the to balanc
recognied
income transfer expense parent minority e
into other
tax to s compan sharehol
comprehen
retained y der
sive
income
income in
in the
prior
current
period
period
II. Other composite benefits to -50,380.9 -5,708.2 -56,08
be re-classified as gain and loss 5 3 9.18
Balance from
-50,380.9 -5,708.2 -56,08
conversion of foreign-currency
5 3 9.18
financial statements
Total of other composite -50,380.9 -5,708.2 -56,08
benefits 5 3 9.18
Other description, including adjustment of init ial carrying amount of hedged items converted from the effective
portion of gain or loss of cash flow hedge
58.Special reserve
In RM B
222
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Amount increased of Amount decreased of
Items Opening balance Ending balance
current period current period
Work safety expense 21,026,082.43 2,775,661.72 18,250,420.71
Total 21,026,082.43 2,775,661.72 18,250,420.71
Other description, including explanation on the reason for increase, decrease or change of current special reserve:
59. Surplus reserve
In RM B
Amount increased of Amount decreased of
Items Opening balance Ending balance
current period current period
Statutory surplus
84,394,441.23 84,394,441.23
reserve
Total 84,394,441.23 84,394,441.23
Description, including explanation on the reason for increase, decrease or change of current surplus reserve
60. Undistributed profit
I n RM B
Items Amount of current period Amount of last period
Undistributed profit at the end of last period
-269,566,140.13 1,503,103,396.72
before adjustment
Undistributed profit at beginning of the year
-269,566,140.13 1,503,103,396.72
after adjustment
Plus: Net profit attributed to the parent
-1,416,774,391.50 -1,704,739,736.40
company’s owners in the current period
Common stock dividends payable 67,929,800.44
Ending undistributed profit -1,686,340,531.63 -269,566,140.13
Details of undistributed profit at beginning of the year:
1) Undistributed profit affected by the tracking and adjustment carried out in accordance with the Accounting
Standards for Business Enterprises and related regulations.
2) Undistributed profit affected by change of accounting methods.
3) Undistributed profit affected by significant accounting errors.
4) Undistributed profit affected by change of accounting scope after business combination under the same contr ol.
5) Undistributed profit affected by other adjustments.
61．Operating Income and Operating Cost
In RM B
223
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Amount incurred of current period Amount incurred of last period
Items
Income Cost Income Cost
M ain businesses 256,367,221.67 227,646,036.24 1,586,667,973.99 1,312,150,678.84
Other businesses 303,601.25 61,423.62
Total 256,367,221.67 227,646,036.24 1,586,971,575.24 1,312,212,102.46
Whether implemented new revenue guidelines
□ Yes √No
Other notes
62．Taxes and Surcharge
In RM B
Items Amount incurred of current period Amount incurred of last period
Urban maintenance and construction
tax 197,543.59 505,520.08
Educational surtax 97,373.42 394,400.96
Stamp duty 451,136.70 351.80
Other taxes 948,837.16 1,206,245.21
Total 1,694,890.87 2,106,518.05
Other notes：
63．Selling Expenses
In RM B
Items Amount incurred of current period Amount incurred of last period
Employee Compensation 133,620.94 2,243,754.49
Office expenses 12,741.61 132,464.60
Travel expenses 6,984.60 99,055.21
Business entertainment expense 2,700.00 308,931.00
Advertising and promotion expenses 125,500.00
Construction maintenance fees 3,323,787.55 11,051,634.52
Others 10,997,308.06 2,560,282.26
Total 14,477,142.76 16,521,622.08
Other notes：
224
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
64．Management Expenses
In RM B
Items Amount incurred of current period Amount incurred of last period
Employee Compensation 34,994,225.46 67,710,884.17
Office expenses 3,036,779.22 3,693,918.16
Rental 4,540,767.74 8,715,549.21
Travel expenses 1,177,618.35 4,994,824.31
Business entertainment expense 3,156,106.06 4,984,925.91
Depreciation fees of fixed assets 5,258,921.41 8,618,171.30
Vehicle expenses 596,848.79 1,575,536.62
Long-term deferred expense
2,912,560.62 2,076,778.32
amortization
Consulting fee 9,391,994.11 20,133,330.03
Recruitment fee 32,096.53 821,120.23
Conference Fee 3,780.00 121,178.39
Communication expenses 492,453.93 930,008.46
Advertisement fee 380,094.19
Litigation Fee 781,121.80
Others 20,408,297.35 3,531,636.45
Total 87,163,665.56 127,907,861.56
Other notes：
65．R&D Expenses
In RM B
Items Amount incurred of current period Amount incurred of last period
Other notes:
66．Financial Expenses
In RM B
Items Amount incurred of current period Amount incurred of last period
Interest expenditure 326,584,927.26 174,606,407.88
Less: Interest income 2,650,575.42 6,490,217.11
Exchange gain or loss -5,694,081.87 -32,447,772.71
Discount interest
225
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Handling charges and others 6,813,912.17 10,271,507.13
Total 325,054,182.14 145,939,925.19
Other notes：
67．Other Income
In RM B
Sources of other income Amount incurred of current period Amount incurred of last period
Subsidy for post stabilization 38,940.28
Return of handling charges on personal
13,100.20
income tax
68. Investment income
In RM B
Items Amount incurred of current period Amount incurred of last period
Investment yield obtained from disposal of
6,596,880.93 5,171,892.51
long-term equity investments
Proceeds from wealth management products
Total 6,596,880.93 5,171,892.51
Other notes：
69.Net exposure hedging income
In RM B
Items Amount incurred of current period Amount incurred of last period
70. Gains on the changes in the fair value
In RM B
Other sources of revenue Amount of the Current Term Amount of the Previous Term
Other notes：
71. Credit impairment loss
In RM B
Items Amount of the Current Term Amount of the Previous Term
Other notes：
226
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
72. Losses from asset impairment
Whether implemented new revenue guidelines
□ Yes √No
In RM B
Items Amount of the Current Term Amount of the Previous Term
Loss of bad debts -563,404,467.65 -4,183,874.66
Total -563,404,467.65 -4,183,874.66
Other notes：
73. Asset disposal income
In RM B
Source Amount of this period Amount of last period
74．Non-Operating Income
In RM B
Amount recorded in the
Amount incurred of current Amount incurred of last
Items non-recurring gain or loss of
period period
current period
Government subsidy 935,867.42
Other 71,623.22 178,957,486.84
Total 71,623.22 179,220,495.20
Governmental subsidies included in gain or loss of current period:
In RM B
Whether
subsidies Amount Related to
Whether it Amount
Subsidy Granting Nature/typ affect gain incurred of assets/Rela
Reasons is special incurred of
items subjects e or loss in current ted to
subsidy last period
the current period income
period
Awards for
steady
growth
Subsidy for
post
stabilizatio
n
227
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Return of
handling
charge on
personal
income tax
Other notes：
75．Non-Operating Expenditure
In RM B
Amount recorded in the
Amount incurred of current Amount incurred of last
Items non-recurring gain or loss of
period period
current period
Loss from non-current asset
6,081.90
retirement
Loss of inventory disposal 732,512.00 636,300.61
Overdue fine 105.00
Loss by default 464,303,416.20
Others 87,298.49
Total 465,129,413.62 636,300.61
Other notes：
76．Expense of Income Tax
(I) Table of Income Tax
In RM B
Items Amount incurred of current period Amount incurred of last period
Expense of income tax in the current
1,810,113.67 18,832,808.48
period
Deferred income tax expenses -859,752.77 -42,571.69
Total 950,360.90 18,790,236.79
(II) Adjustment Process of Accounting Profit and Expense of Income Tax
In RM B
Items Amount incurred of current period
Total profit -1,415,839,991.15
Expense of income tax calculated with statutory [or applicable] 1,810,113.67
228
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
tax rate
Influences of deductible temporary difference or deductible
loss of non-confirmed deferred income tax assets in the current -859,752.77
period
Expense of income tax 950,360.90
Other notes
77．Other Composite Benefits
For more details, please see Notes
78．Items of Cash Flow Statement
(I) Cash Received Relating to Other Operating Activities
In RM B
Items Amount incurred of current period Amount incurred of last period
Interest income 2,818,999.16 8,884,622.44
Bond, deposit and other intercourse
209,847,070.39 3,587,412,932.81
funds
Total 212,666,069.55 3,596,297,555.25
Description on cash received relating to other operating activities:
Nil
(II) Cash Paid Relating to Other Operating Activities
In RM B
Items Amount incurred of current period Amount incurred of last period
Handling charges 371,660.71 8,436,090.29
Warranties and deposit expenses 32,578,756.07 507,914,597.76
Selling Expenses 1,008,859.42 2,108,633.03
M anagement Expenses 36,123,823.62 164,665,583.14
Current account 556,523,245.26 1,894,830,019.27
Others
Total 626,606,345.08 2,577,954,923.49
Description on cash paid relating to other operating activities:
Nil
229
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
(III) Cash Received Relating to Other Investment Activities
In rmb
Items Amount incurred of current period Amount incurred of last period
Description on cash received relating to other investment activities:
(IV) Cash Paid Relating to Other Investment Activities
In RM B
Items Amount incurred of current period Amount incurred of last period
Description on cash paid relating to other investment activities :
Nil
(V) Cash Received Relating to Other Financing Activities
In RM B
Items Amount incurred of current period Amount incurred of last period
Received company/personal financing
6,362,955.91
fund
Total 6,362,955.91
Description on cash received relating to other financing activities:
Nil
(VI) Cash Paid Relating to Other Financing Activities
In RM B
Items Amount incurred of current period Amount incurred of last period
Description on cash paid relating to other financing activities:
Nil
79．Supplementary Data of Cash Flow Statement
(I) Supplementary Data of Cash Flow Statement
In RM B
Supplementary Data Amount of current period Amount of last period
1. Net profit adjusted to cash flow of
-- --
operating activities:
Net profit -1,416,790,352.05 143,065,521.54
Plus: Asset depreciation reserve 563,404,467.65 4,183,874.66
230
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Depreciation of fixed assets, depreciation
of oil and gas assets, and depreciation of 5,258,921.41 12,300,753.00
productive biological assets
Intangible asset amortization 1,817,708.09 804,312.23
Long-term deferred expense amortization 2,912,560.62 6,993,115.98
Loss from fixed asset retirement (Income
-570,793.76
is represented with “-”)
Financial expenses (income represented
325,054,182.14 145,939,925.19
with “－”)
Investment loss (income represented with
-6,596,880.93 -5,171,892.51
“－”)
Decrease of deferred income tax assets
666,046.53 1,167,618.96
(increase represented with “－”)
Increase of deferred income tax liabilities
-859,752.77 25,805,916.90
(decrease represented with “－”)
Decrease of inventories (increase
-279,542,881.22 -175,020,420.56
represented with “－”)
Decrease of operating items receivable
1,049,692,358.27 628,339,650.86
(increase represented with “－”)
Increase of operating items payable
-667,168,404.54 310,326,783.14
(decrease represented with “－”)
Net amount of cash flow from operating
-422,152,026.80 1,098,164,365.63
activities
2. M ajor investment and financing
activities not involving cash revenue and -- --
expenditure:
3. Net change of cash and cash
-- --
equivalents:
Ending balance of cash 59,521,718.55 258,018,921.01
Less: Opening balance of cash 125,767,796.88 647,222,590.49
Net increment of cash and cash
-66,246,078.33 -389,203,669.48
equivalents
231
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
(II) Net Amount of Cash Paid for Acquisition of Subsidiaries in Current Period
In RM B
Amount
Of which： --
Of which： --
Of which： --
Other notes：
(III) Net Amount of Cash Received from Disposal of Subsidiaries in Current Period
In RM B
Amount
Of which： --
Of which： --
Of which： --
Other notes：
(IV) Composition of Cash and Cash Equivalents
In RM B
Items Ending balance Opening balance
I. Cash 59,521,718.55 125,767,796.88
Including: Cash on hand 3,431,627.74 5,400,461.90
Bank deposit available for payment
56,090,090.81 252,595,053.91
anytime
III. Ending balance of cash and cash
59,521,718.55 125,767,796.88
equivalents
Other notes：
80．Notes to Items in Statement of Changes in Owner’s Equity
Explain names of "other" items that adjust the ending balance of last year and the amount adjusted and other
items:
81．Assets with Ownership or Use Right Restricted
In RM B
232
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Items Ending book value Reason for restriction
M onetary Resources 101,885,589.67 Guarantee deposit and frozen fund
Fixed assets 13,740,651.43 Finance lease assets
Total 115,626,241.10 --
Other notes：
82．Foreign-Currency Monetary Items
(I) Foreign-Currency Monetary Items
In RM B
Ending balance in foreign Ending balance in RM B after
Items Exchange rate for conversion
currency conversion
M onetary funds -- --
Wherein: USD 2,014,928.27 6.8747 13,852,027.38
EUR
HKD 204,569.47 0.8797 179,951.58
QAR 48,391.43 1.8881 91,369.56
BUK 28,210.00 0.0045 127.80
IDR 2,781,362.67 0.0005 1,352.74
Russian Ruble (RUB) 2,847,740.85 0.1090 310,441.38
M aldivian Raphael 6,511.79 0.4447 2,895.64
Sri Lankan rupees 5,038,709.65 0.0389 196,147.32
Thai B 195,179.18 0.2234 43,594.03
.Philippines Peso 7,244,045.95 0.1342 972,289.00
Ringgit, M alaysia 542,318.56 1.6593 899,874.82
Pataca 124.19 0.8537 106.02
Accounts receivable -- --
Wherein: USD 77,698,067.99 6.8747 534,150,908.01
EUR
HKD
Qatarrial 357,701,359.03 1.8881 675,388,501.21
Ringgit, M alaysia 35,520,850.67 1.6593 58,940,116.60
Australian dollar 1,362,817.67 0.8537 1,163,412.72
Long-term loans -- --
Wherein: USD
233
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
EUR
HKD
Advance Payment 0.00
Wherein: USD 5,213,170.81 6.8747 35,838,985.37
Qatarrial 158,589.22 1.8881 299,437.88
Sri Lankan rupees 26,809,430.46 0.0389 1,043,639.82
Russian Ruble (RUB) 8,356,436.91 0.1090 910,962.03
Ringgit, M alaysia 19,912.96 1.6593 33,041.78
Other accounts receivable: 0.00
Wherein: USD 1,970,462.46 6.8747 13,546,338.27
EUR 2,600,000.00 7.8170 20,324,200.00
HKD 75,646.09 0.8797 66,542.84
Qatarrial 3,762,349.23 1.8881 7,103,823.74
Kyat 118,150,000.00 0.0045 535,252.59
Russian Ruble (RUB) 9,549,638.66 0.1090 1,041,036.79
Sri Lankan rupees 38,866,058.46 0.0389 1,512,981.27
Thai B 301,957.83 0.2234 67,443.45
Philippines Peso 146,997.00 0.1342 19,729.80
Ringgit, M alaysia 2,257,432.22 1.6593 3,745,780.74
Accounts payable 0.00
Wherein: USD 23,872,745.73 6.8747 164,117,965.07
Qatarrial 4,026,732.05 1.8881 7,603,014.23
Kyat 1,121,875.00 0.0045 5,082.41
Sri Lankan rupees 478,505,974.27 0.0389 18,627,321.75
Thai B 4,536.36 0.2234 1,013.21
Philippines Peso 44,130.43 0.1342 5,923.14
Ringgit, M alaysia 8,225,631.54 1.6593 13,648,875.88
Items Received in Advance: 0.00
Wherein: USD 354,069.48 6.8747 2,434,121.45
Other accounts payable: 0.00
Wherein: USD 272,622.87 6.8747 1,874,200.44
HKD 1,374.73 0.8797 1,209.29
Philippines Peso 8,447.15 0.1342 1,133.77
Sri Lankan rupees 500,000.00 0.0389 19,464.04
234
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Ringgit, M alaysia 0.00 1.6593 0.00
Australian dollar 6,270.00 4.8156 30,193.81
Other notes：
(II) Description of Overseas Operating Entities; In Particular, Important Overseas Operating Entities Should
Disclose Their Main Business Place, Recording Currency and the Basis for Selection; Reasons for Changes in the
Recording Currency Should Also Be Disclosed.
√ Applicable □ Not applicable
83．Hedging
Disclosure of hedging items and related hedging instruments and qualitative and quantitative information on
hedged risks in accordance with the hedging category:
84．Governmental Subsidy
(I) Basic Facts about Governmental Subsidies
In RM B
Amount recorded in the gain or
Type Amount Presented items
loss of the current period
(II) Refund of Governmental Subsidy
□ Applicable √ Not applicable
Other notes:
85.Other
VIII. Change of Combination Scope
(I) Bus iness Combination not under the Same Control
1. Bus iness combination not under the same control in current term:
In RM B
The The
Basis for purchased purchased
Name of the Time point of Cost of Proportion of Way to
Date of determining party’s party’s net
purchased equity equity equity acquire the
purchasing the date of income from profit from
party acquisition acquisition acquired stock equity
purchasing the date of the date of
purchasing to purchasing to
235
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
the end of the end of
term term
Others：
2. Combination cost and goodwill
Combination cost
Method to determine the fair value of combination cost, contingent consideration and its changes:
Main reasons for large amount of goodwill:
Others:
3. Identifiable assets and liabilities of the purchased party on the date of purchasing
In RM B
Fair value on the date of purchasing Book value on the date of purchasing
Method to determine the fair value of identifiable assets and liabilities :
Contingent liabilities from the purchased party during the combination:
Others:
4. Gains or losses on re-measurement as per fair value of equity held before the date of purchasing
Is there such transaction that realizes combination through several steps of transactions and obtains control right
during reporting period?
□ Yes √ No
5. Relevant descriptions for failure to reasonably determine combination consideration and fair value of
identifiable assets and liabilities of the purchased party on the purchasing date or at the end of current combination
term.
6. Others
(II) Bus iness Combination under the Same Control
1. Bus iness combination under the same control in current term
In RM B
Proportion of Basis for Basis for The The The The
Name of the gained business determining combined combined combined combined
Combination
combined equities combination the party’s party’s net party’s party’s net
date
party during the under the combination income from profit from income in the profit in the
combination. same control date the beginning the beginning comparative comparative
236
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
to the end of to the end of period period
the current the current
combination combination
term term
Others:
2. Combination cost
In RM B
Combination cost
Contingent consideration and its changes:
Others:
3. The combined party’s book value of assets and liabilities on the combination date
In RM B
Combination date At the end of the last term
Contingent liabilities from the combined party during the combination:
Others:
(III) Counter Purchase
Transaction basic information, basis to determine a transaction as a counter purc hase, remaining assets of the
listed company, whether liabilities are part of businesses and basis to determine it, determination of combination
cost, adjusted equity amount and its calculation when dealt per equity transaction:
(IV) Disposal of Subsidiaries
Is there a single disposal of investments in a subsidiary, that is, loss of control right?
√ Yes □ No
In RM B
Basis Balanc Remai Book Fair Gain M etho Amou
for e ning value value or loss d to nt of
Propor
Price Way Time determ betwee propor of the of the on determ profit
tion of
Name of the of the point ining n the tion of remain remain re-mea ine the and
the
of the stock equity of the dispos stock ing ing sureme fair loss on
stock
subsidi equity stock losing time al equity stock stock nt of value invest
equity
ary dispos dispos control point price at the equity equity remain of the ments
dispos
al al right of and date of at the at the ing remain conver
ed
losing the losing date of date of stock ing ted
control owned control losing losing equity stock from
237
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
right net right control control as per equity other
asset right right fair at the compr
share value date of ehensi
of the losing ve
subsidi control gains
ary right related
corres and to the
pondin major stock
g to assum equity
the ptions invest
dispos ments
al of the
invest origina
ment l
in the subsidi
financi ary
al
statem
ent
Compl
etion
Suzho
of
u
industr
Lvban
ial and
g 24,000 April
100.00 Transf comm 6,596,
Woods ,000.0 28,201 0.00%
% er ercial 880.93
Techn 0 9
registr
ology
ation
Co.,
of
Ltd.
change
s
Others
Is there disposal by steps of investments in a subsidiary through several transactions and losing control right in the
current term?
□ Yes √ No
(V) Changes of Combination Scope for Other Reasons
Describing other reasons for the changes of combination scope (e.g. newly-established subsidiary, liquidation of a
subsidiary) and related matters:
(1)Newly established subsidiaries for the current period
Name Business plant Registered Share-holding ratio（%） Acquired way
238
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
address Directly Indirectly
Sino Great Wall Decoration
Engineering (Beijing ) Co., Beijing Beijing 100 Establish
Ltd.
（2）Other reasons for decreasing of subsidiaries in the current period
Basis for
The time point
determining the Disposition gains and
Name Share-holding ratio Disposition way at which control
point of loss of losses
is lost
control.
Industrial &
Suzhou Lvbang Woods commercial
100% Sell April 26,2019
Technology Co., Ltd. registration of
changes
6.Other
IX. Equity in Other Subjects
(I) Equity in Subsidiaries
1. Composition of the enterprise group
Registered Share-holding ratio
Subsidiary M ain operation Business nature Acquired way
place Directly Indirectly
Sino Great Wall
International Decoration
Beijing Beijing 100.00% Investment
Engineering industry
Co., Ltd.
Sino Great Wall Investment
Infrastructure management,
Beijing Beijing 100.00% Establish
Investment Co., import and
Ltd. export
Highway
engineering,
Sino Great Wall
municipal Under
Hengda
Longyan Longyan public works, 80.00% non-common
Engineering
building works, control
Co., Ltd.
railway
engineering,
239
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
etc.
Sino Great Wall
M edical
M edical
Investment Beijing Beijing 100.00% Establish
investment
M anagement
Co., Ltd.
Wuhan
Under
Commercial Sanitary &
Wuhan Wuhan 100.00% non-common
Workers medical service
control
Hospital LLC
M edical
technology
Sino Great Wall development,
Guangxia pharmaceutical
(Wuhan) sales, medical
Wuhan Wuhan 60.00% Establish
M edical device
Development wholesale,
Co., Ltd. medical and
pension
investment
Urban
infrastructure
construction
and
Changzhi Sino development,
Laodingshan construction
Changzhi Changzhi 100.00% Establish
Industrial Co., engineering
Ltd. design, R&D,
construction
equipment
leasing,
construction
Xiangfen
Urban
County
infrastructure
Taoshan Xiangfen Xiangfen 100.00% Establish
construction,
Construction
trade
Co., Ltd.
Sino Great Wall Infrastructure
(Xihua) investment,
Economic Xihua Xihua road and bridge 100.00% Establish
Development construction,
Zone water
240
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Investment Co., conservancy
Ltd. construction,
general airport
construction
Hospital
management
service,
Liupanshui
pension
Central
rehabilitation
People‘s
Liupanshui Liupanshui service, 75.00% Establish
Hospital
investment,
Investment Co.,
trade, aged
Ltd.
articles
wholesale and
retail
Sino Zhigu
Industrial Building
Yueyang Yueyang 78.40% Establish
(Yueyang) Co., construction
Ltd.
Construction,
Sino Great Wall
design, trade,
Group Hongkong Hongkong 100.00% Establish
investment
Co.,Limited
consulting
Aofa
Investment Co., Hongkong Hongkong 100.00% Establish
Ltd.
Sino Great Wall
Decoration and Design and
Beijing Beijing 100.00% Establish
Design Co., consulting
Ltd.
Sino Great Wall
International
Design and
Engineering M acao M acao 96.00% 4.00% Establish
construction
(M acao) Co.,
Ltd.
Shenzhen Investment,
Hongtulve R&D and sales,
Shenzhen Shenzhen 100.00% Establish
Industrial Co., trade, import
Ltd. and export
Inrich M e M echanical and
Engineering Hongkong Hongkong electrical 100.00% Establish
Co., Ltd. engineering,
241
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
scientific
research, trade,
investment
consulting
Sino Great Wall
Real Estate Real estate
Wuhan Wuhan 80.00% Establish
(Hubei) Co., development
Ltd.
Sino Great Wall
Renewable
New Energy
Beijing Beijing energy 100.00% Establish
(Beijing) Co.,
technology
Ltd.
Shanghai
Trade
Lingrui
International Shanghai Shanghai 100.00% Establish
Trading Co.,
Ltd.
Sino Great Wall
Under
Southwest Building
Chengdu Chengdu 100.00% non-common
Engineering construction
control
Co., Ltd.
Huichang
M edical
County
industry Under
Zhongcheng
Huichang Huichang construction, 100.00% non-common
Construction
import and control
Engineering
export
Co., Ltd.
Great Wall
Energy trade,
Biaodian
Beijing Beijing R&D, import 51.00% Establish
Energy Co.,
and export
Ltd.
SINO GREAT
WALL
INTERNETIO
Design and
NAL Saipan Saipan 100.00% Establish
construction
ENGINEERIN
G(CNM I)CO.,
LLC
SINO GREAT
Under
WALL Building
Kuwait Kuwait 49.00% non-common
GENERA L construction
control
TRADING &
242
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
CONTRACTI
NG CO.LTD
Sino Great Wall
International Design and
Burma Burma 80.00% Establish
Engineering( M construction
M ) Co.,Ltd
PT.SINO
GREAT WALL
Building
CONSTRUCTI Indonesia Indonesia 67.00% Establish
construction
ONINDONESI
A
Sino Great Wall Building
Laos Laos 100.00% Establish
（Lao）Co.,Ltd construction
Sino
International
Engineering
Laos Laos 100.00% Establish
(Lao) Sole
investor Co.,
Ltd.
Sino Great
Wall
Investment
Laos Laos 100.00% Establish
(Lao) Sole
investor Co.,
Ltd.
Engaged in
domestic and
international
construction
contracting,
interior and
Sino Great exterior
WallInternation decoration of
alEngineering( Thailand Thailand buildings, 49.00% Establish
Th ailand) accepting bids
Co.,Ltd. to obtain
bidding civil
engineering
projects of
government
agencies (cities,
organs, etc.),
243
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
individuals and
legal entities;
engaged in
leasing, sales,
export,
purchase of
various
construction
materials and
construction
equipment, and
real estate
development,
etc.
Sino Great Wall
International Design and
M aldives M aldives 100.00% Establish
Engineering construction
Co.,Ltd
PT.SINO
GREAT WALL Real estate or
Indonesia Indonesia 99.90% Establish
INVESTM ENT leasing
INDONESIA
SGW America Construction,
USA USA 99.00% 1.00% Establish
LLC design
Sino Great Wall
Design and
Group （UK） Britain Britain 98.00% Establish
construction
Co.,Limited
Development,
Kunming Sino
construction,
Forest Industry
Kunming Kunming operation and 51.00% Establish
Development
management of
Co., Ltd.
industrial parks
SINO GREAT
Legal business
WALL USA USA 100.00% Establish
practices
（USA）.INC
Sino Great Wall
Development Design and
Zhuhai Hengqin 85.00% Establish
(Hengqin) Co., construction
Ltd.
Fujian Sino Investment in
Great Wall Fuzhou Fuzhou medical and 88.00% Establish
M ingyihui pension
244
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
M edical industry;
Investment Co., hospital
Ltd. management;
medical device
sales
Investment in
medical
industry
Sino Great Wall projects;
M edical self-operation
Investment Wuhan Wuhan and agency of 100.00% Establish
(Hubei) Co., the import and
Ltd. export business
of various
goods and
technology
Pharmaceutical
wholesale,
Hubei
self-operation
Yuanyaotong
Wuhan \Wuhan and agency of 51.00% Establish
Supply Chain
the import and
Co., Ltd.
export of goods
and technology
Wu‘an Juhe
Solar
Photovoltaic Wuan Wuan 100.00% Establish
photovoltaic
Power Co., Ltd.
Sino Great Wall
Sales,
Southwest
Science and Chengdu Chengdu 100.00% Establish
equipment
Technology
Co., Ltd. installation
Sino Great Wall
Southwest
Wholesale and
Commercial Chengdu Chengdu 100.00% Establish
sales
and Trading
Co., Ltd.
Sino Great Wall Construction
Southwest engineering
Engineering Chengdu Chengdu design, 100.00% Establish
Consultation consulting,
Co., Ltd. survey
Far eastern Russia Russia Building 95.00% Under
245
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
international construction, non-common
engineering commerce and control
company,LLC trade, transport,
leasing
Sino Great Building
Wall(Philippine construction,
Philippines Philippines 100.00% Establish
s) International import and
Corporation export trade
Real estate
development
and
management,
land
Sino Great Wall
investment,
(HK) Property Hongkong Hongkong 100.00% Establish
property
Co., Limited
management,
investment and
business
consulting,
trade
Building
construction,
engineering
SGWHPEngine design,
eringConstructi M alaysia M alaysia installation 100.00% Establish
onSDN.BHD project,
mechanical and
electrical
installation, etc.
Purchased, or
otherwise
SGW obtained,
VENTURES M alaysia M alaysia attributes, 100.00% Establish
SDN.BHD. stocks, bonds,
reinvested
earnings, etc.
Building
SGW construction,
CONSTRUCTI engineering
ON M alaysia M alaysia design, 100.00% Establish
(LANGKAWI) installation
SDN.BHD. project,
mechanical and
246
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
electrical
installation, etc.
SinoOmanRefi Oil production,
neryandPetroch Oman Oman import and 51.00% Establish
emicals LLC export
General
contracting of
construction,
Sino Great Wall
subcontracting
Hebei Xiongan
Xiongan Xiongan of construction 100.00% Establish
Construction
services,
Co., Ltd.
engineering
investigation
and design, etc.
Technology
development,
technology
transfer,
Sino Great Wall technology
Technology consultation,
Beijing Beijing 100.00% Establish
Development technology
Co., Ltd. promotion,
technical
services; sales
of construction
materials.
Design phase
project
management
Zhongda
service;
Changcheng
Chongqing Chongqing construction 60.00% Establish
Industry(Chong
stage project
qing) Co.,Ltd.
management
service and so
on
Construction
project
Sino Great Wall
contracting and
Engineering
construction
M anagement Shenzhen Shenzhen 51.00% Establish
project
(Shenzhen)
management,
Co., Ltd.
labor
subcontract, etc
247
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Real estate
development;
construction
Sino Rongju general
Real Estate contracting,
Beijing Beijing 51.00% Establish
Development professional
Co., Ltd. contracting,
labor
subcontracting,
etc.
Health
consulting
Weifang Sino services; real
Greart Wall estate
Health Weifang Weifang development; 100.00% Establish
Development sales of
Co., Ltd. self-developed
commercial
housing, etc.
Ecological
agriculture
development,
agricultural
science and
technology
development,
agricultural
Sino Great Wall project
Industry comprehensive
Chongqing Chongqing 80.00% Establish
（Chongqing） development,
Co., Ltd. enterprise
management;
landscaping,
landscape
design; travel
agency service;
construction
engineering,
etc.
Sino Great Wall Hospitals and
M edical medical
Changsha Changsha 75.00% Establish
Industry investment, old
（Hunan ) - age industry
248
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Investment Co., investment,
Ltd. small town
investment.
Hunan
Hospital
University of
management;
Traditional
brand
Chinese
promotion
M edicine Sino Changsha Changsha 51.00% Establish
marketing;
Great Wall
chain enterprise
M edical
management,
M anagement
etc.
Co., Ltd.
Real estate
development
and
management;
Sino Great Wall
industrial real
Real Estate
estate
Development Changsha Changsha 80.00% Establish
development;
（Hunan ) Co.,
property
Ltd.
management;
real estate
intermediary
services, etc.
Hospital
Hunan Sino management;
Great Wall brand
Oncology promotion
Changsha Changsha 55.00% Establish
Hospital marketing;
M anagement chain enterprise
Co. Ltd. management,
etc.
Hunan
University of
Investment in
traditional
medicine,
Chinese
investment
M edicine Sino Changsha Changsha 80.00% Establish
management,
Great Wall
investment
M edical
consulting, etc.
Industry Co.,
Ltd.
Sino Real estate
Zhanjiang Zhanjiang 51.00% Establish
Boda(Zhangjia investment and
249
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
ng) Industry development,
Co., Ltd. management,
property
management,
rental and
maintenance of
construction
machinery and
equipment, etc.
Housing
demolition, real
estate
development
Anshun Sino and
Great Wall Real management,
Estate Anshun Anshun construction 90.00% Establish
Decelopment projects, land
Co., Ltd. governance
projects, real
estate
infrastructure
construction.
Elevator
installation
engineering
service;
Sino Great Wall
elevator
（Guangzhou)
maintenance;
Elevator Guangzhou Guangzhou 60.00% Establish
elevator sales;
Engineering
elevator,
Co., Ltd.
escalator and
lift
manufacturing,
etc.
Engineering
investigation;
Sino Great Wall Engineering
Decoration Design;
Engineering Beijing Beijing Professional 100.00% Establish
(Beijing) Co., contract;
Ltd. General
Construction
contract, etc.
250
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
About a subsidiary’s shareholding proportion different from voting proportion:
Basis for controlling the invested party while holding half or less voting rights and not controlling the invested
party despite holding half or more voting rights:
Basis for controlling the important structured entity incorporated into the combination scope:
Basis to confirm whether a company is an agent or a consignor:
Others:
2. Main non-sole subsidiaries
In RM B
Gains and losses of Dividends declared to Equity balance of
Shares of minority
Name of the subsidiary minority shareholders in minority shareholders in minority shareholders at
shareholders
current term current term the end of the term
About minority shareholders’ shareholding proportion different from voting proportion:
Others:
3. Main financial information of important non-sole subsidiaries
In RM B
Name of Ending balance Opening balance
the Non-curr Non-curr Non-curr Non-curr
Current Total Current Total Current Total Current Total
subsidiar ent ent ent ent
assets assets liabilities liabilities assets assets liabilities liabilities
y assets liabilities assets liabilities
In RM B
Amount incurred of current term Amount incurred of last term
Cash flow Cash flow
Name of the Total amount Total amount
Operating from Operating from
subsidiary Net profit of composite Net profit of composite
income operating income operating
benefits benefits
activities activities
Others:
4. Major limitations on using corporate group assets and liquidating corporate group liabilities
5. Financial and other support for structured entities incorporated into the combined financial statement
Others:
251
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
（II） Transactions When Owned Equity Shares of a Subsidiary Changed but Still Control the Subsidiary
1. About change of owned equity shares of a subsidiary
2. Influence of transactions on parent company’s owned equity and the equity of minority shareholders
In RM B
Others:
(III). Equity in Joint Ventures and Jointly-run Enterprises
1. Important joint ventures and jointly-run enterprises
Shareholding proportion Accountant
Name of the joint arrangement
venture and M ain business method for joint
Registered place Business nature
jointly-run place Direct Indirect ventures and
enterprise jointly-run
enterprise
About a joint venture or jointly-run enterprise’s shareholding proportion different from voting proportion:
Basis for holding 20% or less voting rights but exerting important influence, or holding 20% or more voting rights
but not exerting important influence:
2. Main financial information of important joint ventures
In RM B
Ending balance/Amount incurred of Opening balance/Amount incurred of last
current term term
Others:
3. Main financial information of important jointly-run enterprises
In RM B
Ending balance/Amount incurred of Opening balance/Amount incurred of last
current term term
Others:
252
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
4. Financial information summary of not important joint ventures and jointly-run enterprises
In RM B
Ending balance/Amount incurred of Opening balance/Amount incurred of
current term last term
Joint ventures: -- --
Total number of the following items
-- --
calculated by shareholding proportion
Jointly-run enterprises: -- --
Total number of the following items
-- --
calculated by shareholding proportion
Other
5. About major limitations on joint ventures and jointly-run enterprises’ capability of capital transfer to the
company
6. Excess deficit incurred by joint ventures and jointly-run enterprises
In RM B
Accumulated unconfirmed Unconfirmed losses of the
Name of the joint venture and Accumulated unconfirmed
losses accrued in the previous current term (or shared net
jointly-run enterprise losses in current term
term profits of the current term)
Others:
7. Contingent liabilities related to the investments of joint ventures or jointly-run enterprises
(IV). Important Joint Operation
Name of the joint Shareholding proportion/Owned shares
M ain business place Registered place Business nature
operation Direct Indirect
About shareholding proportion or owned shares in the joint operation different from voting proportion:
Basis for classifying a single entity as joint operation:
Others:
1. Equity in structured entities not incorporated into the combined financial statement
About structured entities not incorporated into the combined financial statement:
253
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
2. Others
X. Risks associated with financial instruments
The Company faces various financial risks in the process of operation: credit risks, market risks and liquidity risks.
The Board of Directors of the Company shall be fully responsible for determining risk management objectives and
policies and bearing the ultimate liabilities for that. However, the Board of Directors has authorized the
management to design and implement the process that can ensure the effective implementation of the risk
management objectives and policies. The Board of Directors reviews the effectiveness of the enforced procedures
and the rationality of risk management objectives and polic ies through monthly reports submitted by the
management. Internal auditors of the Company will also audit risk management policies and procedures and
report the relevant findings to the audit committee.
Overall objective of risk management of the Company is to formulate risk management policies to minimize risks
without undue prejudice to the Company's competitiveness and resilience.
(1) Credit risk
Credit risk refers to a risk of financial losses suffered by one party of financial instruments due to the failure
of the other party to fulfill obligations. The Company mainly faces customer credit risks caused by sales on
account. Prior to the conclusion of a new contract, the Company will evaluate the credit risk of the new customer,
including external credit rating and bank reference letter under some circumstances if the relevant information is
available. The Company sets a credit limit for each customer. The limit is the maximum amount unnecessary for
additional approval.
The Company quarterly monitors credit ratings of existing customers and monthly reviews aging analysis of
accounts receivable to ensure that the Company's overall credit risk is within the controllable range. When the
Company monitors credit risks of customers, the customers shall be divided into groups according to their credit
features. Customers rated as "high risk" will be placed in a restricted customer list. The Company may sell goods
to such customers on credit in future periods subject to additional approval; otherwise the Company must require
advance payments.
（2）Market risk
Market risk associated with financial instruments refers to the risk arising from changes in fair value or
future cash flows of financial instruments due to market price fluctuation, including interest rate ris k and foreign
exchange risk.
(1) Interest rate risk Interest rate risk refers to the risk arising from changes in fair value or future cash flows
of financial instruments due to fluctuation in market interest rate. The Company's interest rate risk mainly d erives
from bank borrowings. The Company establishes good relations with banks and reasonably designs credit lines,
credit varieties and credit period to guarantee sufficient bank credit lines and to meet short-term financing needs.
By shortening the time limit of a single loan, the Company may specifically agree terms of the prepayment to
reasonably reduce the risk of interest rate.
(2) Exchange rate risk Exchange rate risk refers to the risk arising from changes in fair value or future cash
flows of financial instruments due to fluctuation in foreign exchange rate. The Company shall match foreign
currency income and foreign currency expenses as much as possible to minimize exchange rate risk. In addition,
the Company may also sign forward foreign exchange contracts or currency swap contracts to avoid exchange rate
risks.
（3）Liquidity risk
254
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Liquidity risk refers to a risk arising from shortage of funds when the Company performs the obligations
settled in cash or other financial assets. Policies of the Company are to ensure sufficient cash to pay matured debts.
Liquidity risk is under centralized control of the financial department of the Company. The financial department
monitors cash balance and readily realizable and marketable securities and makes rolling forecast on cash flows of
the next 12 months to ensure that the Company has sufficient funds to repay debts in all cases of reasonable
prediction. See disclosure of the relevant items of Note 5 for details of financial liabilities of the Company
presented at undiscounted contractual cash flows on the maturity date.
XI. Disclosure of Fair Values
1. Closing fair values of assets and liabilities measured with fair value
In RM B
Closing fair value
Fair value Fair value Fair value
Items
measurement items at measurement items at measurement items at Total
level 1 level 2 level 3
II. Consistent fair value -- -- -- --
II. Inconsistent fair
-- -- -- --
value measurement
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
Shareholding Voting right
Name of Parent proportion of proportion of
Registered place Business nature Registered capital
Company Parent Company Parent Company
to the Company to the Company
26 Kuipeng Road,
Chen Lue 582,944,556 34.33% 34.33%
Baishigang,
255
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Kuiyong Street,
Dapeng New
District, Shenzhen
Description about Parent Company of the Company
The final controller of the Company is Chen Lue.
Other description:
2. Information about Subsidiaries of the Company
Please refer to Note IV. 1 “Equity in Subsidiaries”.
3. Information about Joint Ventures and Associates of the Company
Please refer to Notes.
Other joint ventures or associates that had balances from related party transactions with the Company during the current period or the
previous period:
Name of joint venture or associate Relationship with the Company
Sino Great Wall Zhihuai Building Industry （Zhangjiang）Co.,
An associate of which the Company holds 40% shares
Ltd.
Cenang Resort Sdn Bhd An associate of which the Company holds 40% shares
Other notes
4. Information about Other Related Parties
Name of other related party Relationship with the Company
Shenzhen Hualian Development Investment Co., Ltd. An affiliated company of shareholder
Bai Bin, a former director of the Company, acts as its
Kunwu Jiuding Investment M anagement Co., Ltd.
Investment Director
Wang Lei, a former director of the Company, acts as its
Shanghai Heyi Supply Chain M anagement Co., Ltd.
director
Sino Great Wall (Beijing) Investment Fund M anagement Co.,
A company controlled by the actual controller
Ltd.
A company controlled by Wang Lei, a former director of the
Qinghai Heyi Commerce Co., Ltd.
Company
Sino Great Wall Investment (Beijing) Co., Ltd. A company controlled by Chen Lue, a director of the Company
Yang Chunling Secretary to the Board of Directors of the Company
Fang Xianzhong Deputy General M anager
Chen Lve Actual controller of the Company
He Sen Brother-in-law of the shareholder and actual controller of the
256
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Company
Luyi Shuguang M edical Industrial Investment Construction
A PPP Project Company controlled by the Company
Co., Ltd.
Huichang County Sino Great Wall M edical Industrial
A PPP Project Company controlled by the Company
Construction Service Co., Ltd.
Sino Great Wall (Fugou) High-speed Railways District
A PPP Project Company controlled by the Company
Investment Co., Ltd.
Anyang Sino Great Wall M edical M anagement Service Co.,
A PPP Project Company controlled by the Company
Ltd.
Sino Great Wall (Fugou) Jialu River Comprehensive Control
A PPP Project Company controlled by the Company
Investment Co., Ltd.
Sino Great Wall (Fugou) National Fitness Center Investment
A PPP Project Company controlled by the Company
Co., Ltd.
Sino Great Wall Shaanxi Fuyan Industrial Park Investment
A PPP Project Company controlled by the Company
Co., Ltd.
Wuchuan City Sino Great Wall People’s Hospital A PPP Project Company controlled by the Company
Wuchuan Sino Great Wall TCM Hospital Investment Co., Ltd. A PPP Project Company controlled by the Company
Guizhou Hongqiao Sino Great Wall M edical Real Estate
A PPP Project Company controlled by the Company
Investment Co., Ltd.
Gongxian Sino M edical Investment Co., Ltd. A PPP Project Company controlled by the Company
Other notes
5. Related Transaction
（1）Related transactions for the provision and receipt of labor services for merchandises purchas ed and sold
Purchase goods/Service acceptance
In RMB
Content of
Approved Whether exceed the
Related Party related Current amount Last Amount
transaction quota transaction limited
transactions
Purchase goods/Service acceptance
In RM B
Content of related
Related Party Current amount Last Amount
transactions
Huichang County Sino Great
Wall M edical Industrial
PPP project construction 20,954,172.77 31,440,776.87
Construction Service Co.,
Ltd.
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Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Sino Great Wall (Fugou)
High-speed Railways District PPP project construction
Investment Co., Ltd.
Sino Great Wall (Fugou)
Fitness Center Investment PPP project construction
Co., Ltd.
Wuchuan City Sino Great
PPP project construction 54,342,707.21
Wall People’s Hospital
Wuchuan Sino Great Wall
TCM Hospital Investment PPP project construction 14,949,298.53 18,315,685.75
Co., Ltd.
Total 90,246,178.51 49,756,462.62
Related transactions for the provision and receipt of labor services for merchandises purchased and sold
（2）Related Trusteeship/contract and entrusted management/packaging situation
Table on company’s trusteeship/contract
In RM B
Beginning date Pricing basis of Confirmed
Name of Name of Type of asset End date of
of trustee trustee
entrusting/contr trustee/contract trustee/contract trustee/contract
trustee/contract earning/contrac earning/contrac
act-out part ing party ing ing
ing ting earning t earning
Note of related trustee/contracting
Table on company’s trusteeship/contract-out
In RM B
Pricing basis of
Beginning date Confirmed
Name of Name of Type of asset End date of trustee
of trustee
entrusting/contr trustee/contract trustee/contract trustee/contract earning/contrac
trustee/contract earning/contrac
act-out part ing party ing ing ting-out
ing t earning
earning
Note of related trustee/contracting
（3）Related tenancy situation
The company as the lessor
In RM B
Current confirmed rental
Name of renter Type of leased assets Last confirmed rental income
income
The company as the renter:
In RM B
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Current confirmed rental
Name of renter Type of leased assets Last confirmed rental income
income
Note of related tenancy situation
（4）Related guarantee situation
The company as the guarantee:
In RM B
Secured party Amount guaranteed Beginning date of End date of guarantee Finished or yet
guarantee
The company as the secured party
In RM B
Secured party Amount guaranteed Beginning date of End date of guarantee Finished or yet
guarantee
Note on related guarantee
（5）Related party fund borrowing
In RM B
Related party Borrowing amount Beginning date End date Note
Borrowing
Lending
（6）Related party asset transferring and debt restructing
In RM B
Content or related
Related party Current amount Last amount
transactions
Shenzhen Hualian Economic compensation for
Development Investment Co., the reorganization of M ajor 100,000,000.00
Ltd. assets
(7) Rewards for the key management personnel
In RM B
Project Current amount Last amount
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Rewards for the key management
1,538,740.95
personnel
（8）Other related transactions
6、Receivables and payables of related party
（1）Receivables
In RM B
Ending book value Beginning book value
Project name Related party Reserve for Reserve for
Book balance Book balance
bad-debt bad-debt
Account
receivable
JD Capital
Investment
M anagement Co., 77,613.49 23,284.05 77,613.49 7,761.35
Ltd. and its related
party
Lhasa JD Capital
Investment
M anagement Co., 160,000.00 80,000.00 160,000.00 48,000.00
Ltd. and its related
party
Shanghai Heyi
Supply Chain
2,469,164.81 740,749.44 2,469,164.81 246,916.48
M anagement Co.,
Ltd
Huichang County
Sino Great Wall
M edical Industrial 25,116,590.68 1,255,829.53 78,155,590.97 3,907,779.55
Construction
Service Co., Ltd.
Sino Great Wall
(Fugou)
High-speed
Railways District
Investment Co.,
Ltd.
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Sino Great Wall
(Fugou) Fitness
4,445,215.33 444,521.53 4,445,215.33 444,521.53
Center Investment
Co., Ltd.
Wuchuan Sino
Great Wall TCM
Hospital 34,967,873.54 1,748,393.68 19,724,082.47 986,204.12
Investment Co.,
Ltd.
Total 67,236,457.85 4,292,778.23 105,031,667.07 5,641,183.04
Other receivables
Yang Chunling 247,389.25 12,369.46 530,000.00 26,500.00
Fang Xianzhong 382,218.50 75,096.25 227,789.60 24,066.88
Sino Great Wall
Investment 9,500.00 2,850.00 9,500.00 950.00
(Beijing) Co., Ltd.
Sino Great Wall
Investment 1,060,000.00 106,000.00 1,060,000.00 53,000.00
(Beijing) Co., Ltd,
Luyi Shuguang
M edical Industrial
Investment 4,220,171.89 1,253,980.64 4,220,171.89 418,999.46
Construction Co.,
Ltd.
Sino Great Wall
(Fugou) Jialu
River
Comprehensive 615,869.20 41,671.92 217,569.20 3,851.67
Treatment
Investment Co.,
Ltd.
Sino Great Wall
Shaanxi Fuyan
Industrial Park 7,652,124.54 1,198,764.58 5,195,923.58 400,761.72
Investment Co.,
Ltd.
Sino Great Wall
(Fugou)
High-speed
24,193,648.34 2,412,190.47 23,773,722.22 1,188,686.11
Railways District
Investment Co.,
Ltd.
261
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Sino Great Wall
(Fugou) Fitness
1,015,767.69 84,827.48 573,300.00 28,665.00
Center Investment
Co., Ltd.
Wuchuan City
Sino Great Wall
People’s Hospital 6,026,341.47 1,743,366.52 35,626,341.47 1,818,500.17
Investment CO.,
Ltd.
Wuchuan City
Sino Great Wall
People’s Hospital 343,018.86 102,905.66 343,018.86 34,301.89
Investment CO.,
Ltd.
Yanjin County
Sino Great Wall
Drainage Network 2,320,000.00 116,000.00 400,000.00 20,000.00
Construction Co.,
Ltd.
Total 48,086,049.74 7,150,022.98 72,177,336.82 4,018,282.90
（2）Payables
In RM B
Project name Related party Ending book value Beginning book value
Account payable
Qinghai Heyi Commercial
Co., Ltd.
Total
Advance received
Huichang County Sino Great
Wall M edical Industrial
244,863,301.51 244,863,301.51
Construction Service Co.,
Ltd.
Wuchuan City Sino Great
Wall People’s Hospital 12,360,000.00
Investment CO., Ltd.
Total 244,863,301.51 257,223,301.51
Other payable
Sino Great Wall
3,590,000.00
(Beijing)Investment Co., Ltd.
262
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
He Sen 200,000.00
Chen Lue 127,590.95 153,613.00
Yang Chunling 22,106.90
Anyang Sino Great Wall
M edical M anagement Service 177,973,316.87 159,973,316.87
Co., Ltd.
Total 178,100,907.82 163,939,036.77
7. Promise of related party
8.Other
XIII. Share payment
1. Overall situation of share payment
□ Applicable √ Not Applicable
2. Share payments settled in equity
□ Applicable √ Not Applicable
3. Share payments settled in cash
□ Applicable √ Not Applicable
4. Modification and termination of share payment
5. Other
XIV. Commitments and Contingencies
1. Important commitments
Important commitments on the balance sheet date
2. Contingencies
(1) Important contingencies on the balance sheet date
(2) Contingent liabilities arising from pending litigation/arbitration and their financial implications
Nil
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3.Other
XV. Matters after the balance sheet date
1. Important non-adjusting events
In RM B
Item Contents effects on financial conditions Reasons for inestimable
and operating results effects
2. Profit distribution
3. Sales return
4. Description of other events after the balance sheet date
XVI. Other important events
1. Correction of accounting errors in the prior period
(1) Retrospective restatement method
In RM B
Correction contents of the
Report items of various
accounting errors Treatment procedure Cumulative effects
affected comparative periods
(2) Prospective application method
Correction contents of the accounting Reasons for adopting prospective
Approval procedure
errors application method
264
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
2. Debt restructuring
3. Asset replacement
(1) Non-monetary asset exchange
(2) Other asset replacement
4. Annuity plan
5. Discontinued operation
In RM B
Discontinued operation
Item Revenue Expense Total profit Income tax expense Net profit profits attributable to the
owner of the parent company
Other notes
6. Segment information
(1) Determination basis and accounting policy of the reporting segments
Accounting policy of the reporting segments:
As businesses in domestic architectural decoration, outbound architectural decoration and medical sectors are not
associated with each other, there is no price transfer among the segments; medical businesses are operated by the
Company and independent subsidies. Outbound architectural decoration business shall be accounted by overseas
companies according to regions in which the projects under construction is located by establishing independent
account sets for 8 main projects in Qatar, Kuwait, Cambodia, Sri Lanka, Malays ia, Myanmar, Maldives and
Saipan. There are no expenses indirectly attributable to various segments to be apportioned. And outbound
architectural decoration business data also consist of financial figures from the account sets of the above 8 main
projects.
(2) Financial information of reporting segments
In RM B
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.
Nil
（4）Other notes
7. Other important transactions and events have an impact on investors’ decision-making
265
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
8.Other
XVII. Notes s of main items in financial reports of parent company
（1）Account receivable
1.Classification account receivables.
In RM B
Amount in year-end Amount in year-beginning
Bad debt
Book Balance Book Balance Bad debt provision
Category provision Book Book
Amoun Proport Amoun Proport value Amoun Proport Amoun Proport value
t ion(%) t ion(%) t ion(%) t ion(%)
Of which ：
Of which：
Accrual of bad debt provision by single item:
In RM B
Ending balance
Name
Book balance Bad debt reserve Withdrawal proportion Reason
Accrual of bad debt provision by portfolio:
In RM B
Ending balance
Name
Book balance Bad debt reserve Withdrawal proportion Reason
Notes：
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of
other receivables if the provision for bad debts of bills receivable is accrued according to the general model of
expected credit loss:
□ Applicable √ Not applicable
Disclosure by aging
In RM B
Closing balance
Aging
Within 1 year（Including 1 year） 0.00
0.00
1-2 years 0.00
2-3 years 0.00
Over 3 years 0.00
3-4 years 0.00
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4-5 years 0.00
Over 5 years 0.00
Total 0.00
(2) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RM B
Amount of change in the current period
Category Opening balance Reversed or Closing balance
Accrual Write-off
collected amount
Of which the significant amount of the reversed or collected part during the reporting period
In RM B
Items Reversed or collected amount M ethod
（3）The current accounts receivable written-offs situation
In RM B
Items Amount written-offs
Significant receivables written off are as follows:
In RM B
Is the amount
Nature of other Reasons for writing Writing-off incurred by the
Unit name Amount written off
receivables off procedure connected
transaction
Notes to receivable write-off:
4) Receivables ranking top five on the ending balance list based on the concentration degree of the borrower
5) Receivables for which the recognition is terminated due to the transfer of financial assets
6) Asset and liability amounts incurred by the transfer of accounts receivables and continuing involvement
Other notes:
2. Other receivables
In RM B
Item Closing balance Beginning balance
Dividends receivable 100,000,000.00 100,000,000.00
Other receivables 2,715,822,695.73 2,886,852,664.14
Total 2,815,822,695.73 2,986,852,664.14
267
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(1) Interests receivable
1) Classification of interests receivable
In RM B
Item Closing balance Beginning balance
2) Significant overdue interests
In RM B
Whether impairment occurs and the
Borrower Closing balance Overdue time Overdue reasons
judgment basis
Other notes：
3）Bad-debt provision
□ Applicable √ Not applicable
（2）Dividends receivable
1)Dividends receivable
In RM B
Item (or the invested party) Closing balance Beginning balance
Sino Great Wall International
100,000,000.00 100,000,000.00
Engineering Co., Ltd.
Total 100,000,000.00 100,000,000.00
2) Significant dividends receivable with an aging of more than 1 year
In RM B
Whether impairment
Item (or the invested Reasons for recovery
Closing balance Aging occurs and the
party) failure
judgment basis
Sino Great Wall
International 100,000,000.00 2-3 years No actual payment
Engineering Co., Ltd.
Total 100,000,000.00 -- -- --
Other notes：
3）Bad-debt provision
□ Applicable √ Not applicable
(3) Other receivables
1) Disclosure of other receivables by class
In RM B
Nature Closing book balance Opening book balance
268
Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Current payment between units 2,588,244,431.37 2,757,783,997.09
Reserve fund 798,554.43 666,710.88
Cash deposit and pledge 126,779,709.93 151,379,709.93
Others 139,151.87
Total 2,715,822,695.73 2,909,969,569.77
2）Bad-debt provision
In RM B
Stage 1 Stage 2 Stage 3
Expected credit Expected credit loss over Expected credit losses for
Bad Debt Reserves Total
losses over the next life (no credit the entire duration (credit
12 months impairment) impairment occurred)
Balance as at January
—— —— —— ——
1, 2019 in current
Loss provision changes in current period, change in book balance with significant amount
□ Applicable √Not applicable
Disclosure by aging
In RM B
Aging Ending balance
Within 1 year(Including 1 year） 61,489,056.94
1-2 years 109,634,494.04
2-3 years 72,817,431.09
Over 3 years 4,352,609.93
3-4 years 4,352,609.93
Total 248,293,592.00
3) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RM B
Amount of change in the current period
Category Opening balance Reversed or collected Closing balance
Accrual
amount
During the reporting period, there were altogether 14942530.91 yuan bad-debt provision set aside and 0.00 yuan
bad-debt provision recovered or carried back.
Bad-debt provisions carried back or recovered in the current period with significant amount are as follows:
In RM B
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Sino Great Wall Co., Ltd. The Semi-annual Report 2019
Unit name Amount carried back or recovered Recovery method
3) Other receivables actually written off in the current period are as follows:
InRM B
Item Amount written off
Significant other receivables written off are as follows:
In RM B
Is the amount
Nature of other Reasons for writing Writing-off incurred by the
Unit name Amount written off
receivables off procedure connected
transaction
Notes to the write-off of other receivables :
5) Other receivables ranking top five on the ending balance list based on the concentration degree of the borrower
In RM B
Proportion in the
Nature of total closing Closing balance of
Unit name Closing balance Aging
payment balance of other bad-debt provision
receivables
Sino Great Wall
International
Current payment 2,379,350,202.49 Within 1 year 87.61%
Engineering Co.,
Ltd.
Wuhan Commercial
Worker Hospital Current payment 89,886,449.10 Within 1 year 3.31%
Co., Ltd.
Administration
Committee of
Current payment 50,000,000.00 2-3 years 1.84% 15,000,000.00
Fuping High-tech
Development Zone
Ningling County
Neihu Wetland shed
Reform Deposit 28,400,000.00 Within 1 year 1.05%
Construction Co.,
Ltd.
Fugou County
Comprehensive
Current payment 30,000,000.00 1-2 years 1.10% 3,000,000.00
Investment Co.,
Ltd.
Total -- 2,577,636,651.59 -- 94.91% 18,000,000.00
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6) Receivables covered by governmental subsidy
In RM B
Name of government Estimated time, amount
Unit name Closing balance Closing aging
subsidy project and basis of the receipt
7) Other receivables for which the recognition is terminated due to the transfer of financial assets
8) Asset and liability amounts incurred by the transfer of other receivables and continuing involvement
Other notes:
3. Long-term equity investment
In RM B
Closing balance Beginning balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Investment in 3,323,211,536. 3,323,211,536. 3,323,211,536. 3,323,211,536.
subsidies 66 66 66 66
3,323,211,536. 3,323,211,536. 3,323,211,536. 3,323,211,536.
Total
66 66 66 66
(1) Investment in subsidies
In RM B
Increase/decrease in this period Balance of
Name of Opening the provision
Increase in End of term
investee balance Other on for
investment
impairment
Sino Great
Wall
3,079,451,53 3,079,451,53
International
6.66 6.66
Engineering
Co., Ltd.
Wuhan
Commercial
97,000,000.0 97,000,000.0
Worker
0 0
Hospital Co.,
Ltd.
Sino Great
Wall M edical
Investment 5,000,000.00 5,000,000.00
M anagement
Co., Ltd.
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Changye City
Sino
10,000,000.0 10,000,000.0
Laodingshan
0 0
Industrial Co.,
Ltd.
Xiangfen
County
10,000,000.0 10,000,000.0
Taoshan
0 0
Construction
Co., Ltd.
Sino Z higu
Industrial 109,760,000. 109,760,000.
(Yueyang) 00 00
Co., Ltd.
Ningling
County Inner
Lake Wetland
Shanty-town 5,000,000.00 5,000,000.00
Renovation
Construction
Co., Ltd.
Chengwu
County
Shenguang
Engineering 7,000,000.00 7,000,000.00
Project
M anagement
Co., Ltd.
3,323,211,53 3,323,211,53
Total
6.66 6.66
（2）Investment in joint ventures and associates
In RM B
Increase/decrease in this period
Balance
Announ
Investm of the
Name ced for
Beginni Increas Decreas ent Other Other Provisi provisi
of distribu End of
ng of e in e in income compre changes on for on on
investe ting Other term
term investm investm under hensive in impair for
e cash
ent ent equity income equity ment impair
dividen
method ment
d or
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Sino Great Wall Co., Ltd. The Semi-annual Report 2019
profit
I.Joint venture
II. Associated
（3）Other notes
4. Business income, Business cost
In RM B
Amount of current period Amount of previous period
Items
Income Cost Income Cost
M ain business 117,362.07 108,742,520.47
Total 117,362.07 108,742,520.47
Whether implemented new revenue guidelines
□ Yes √ No
Other notes：
5.Investment income
In RM B
Items Amount of current period Amount of previous period
6.Other
XVIII. Supplementary Information
1.Current non-recurring gains/losses
√ Applicable □Not applicable
I n RM B
Items Amount Notes
Gain or loss on disposal of non-current
54,651.22
assets
Other non-operating income and
-465,112,441.62
expenditure except for the above items
Total -465,057,790.40 --
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.
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Sino Great Wall Co., Ltd. The Semi-annual Report 2019
□ Applicable √ Not applicable
2 Return on net assets and earnings per share
Earnings per share
Profit of the report period Return on net assets . Weighted（%） Basic earnings per Diluted gains per share
share
Net profit attributable to the
Common stock shareholders of -298.54% -0.8343 -0.8343
Company.
Net profit attributable to the
Common stock shareholders of
-200.54% -0.5604 -0.5604
Company after deducting of
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
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
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XI. Docume nts 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.
275