Stock code: 000018 ，200018 Stock ID : Sino Great Wall ，Sino B Announcement No. 2018-103
Summary of 2018 Annual Report of Sino Great Wall Co., Ltd.
I. Important notes
The summary is abstract from full-text of summary of the semi-annual report, for more details information ,investors should found in the full-text of summary of the semi-annual report that published on website ofShenzhen Stock Exchange and other website appointed by CSRC.
Non-standard auditor’s opinion□ Applicable √Not applicable
Preliminary plan for profit distribution to the common shareholders or turning the capital reserve into the sharecapital for the reporting period, which has been reviewed and approved at the board meeting
□ Applicable √Not applicable
The Company has no plan of cash dividends carried out, bonus issued and capitalizing of common reserves either.Preliminary plan for profit distribution to the preference shareholders for the reporting period which has been
reviewed and approved at the board meeting
□ Applicable √Not applicable
II. Basic information about the company
1. Company profile
| Stock ID | Sino Great Wall ，Sino-B | Stock code: | 000018 200018 | |
| Stock exchange | Shenzhen Stock Exchange | |||
| Contact person and contact manner | Board secretary | Securities affairs Representative | ||
| Name | Yang Chunling | |||
| Contact address | Sino Great Wall Building, No.3 Jinxiu Street, Economic Technology Development Zone , Beijing | |||
| Tel | 010-89045855 | |||
| Email. | 1208806865@qq.com | |||
2. Major accounting data and financial indicatorsIndicate by tick mark whether the Company needs to retroactively restate any of its accounting data.
□ Yes √No
| Reporting period | Same period of last year | YoY+/-（%） | |
| Operating income（RMB） | 1,586,971,575.24 | 3,025,082,356.80 | -47.54% |
| Net profit attributable to the shareholders of the listed company（RMB） | 143,999,455.72 | 268,606,450.03 | -46.39% |
| Net profit after deducting of non-recurring gain/loss attributable to the shareholders of listed company（RMB） | -33,506,685.35 | 264,902,836.16 | -112.65% |
| Cash flow generated by business operation, net（RMB） | 1,098,164,365.63 | -535,997,580.19 | 304.88% |
| Basic earning per share(RMB/Share) | 0.0848 | 0.16 | -47.00% |
| Diluted gains per share(RMB/Share)(RMB/Share) | 0.0848 | 0.16 | -47.00% |
| Weighted average ROE(%) | 6.61% | 14.39% | -7.78% |
| As at the end of the reporting period | As at the end of last year | YoY+/-（%） | |
| Gross assets (RMB) | 11,025,565,646.45 | 11,667,845,186.30 | -5.50% |
| Net assets attributable to shareholders of the listed company （RMB） | 2,205,590,520.66 | 2,151,482,467.52 | 2.51% |
3.Shareholders and shareholding
In Shares
| Total Number of common shareholders at the end of the reporting period | 73,328 | Number of shareholders of preferred stocks of which voting rights recovered in the report period(If any) | 0 | ||||||
| Shareholdings of Top 10 shareholders | |||||||||
| Shareholders | Nature of shareholder | Proportion of shares held（%） | Number of shares held at period -end | Amount of restricted shares held | Number of share pledged/frozen | ||||
| State of share | Amount | ||||||||
| Chen Lue | Domestic Natural person | 34.36% | 583,454,556 | 581,340,196 | Pledge | 583,454,556 | |||
| STYLE-SUCCESS LIMITED | Foreign legal person | 5.47% | 92,970,910 | 0 | |||||
| Union Holdings Co., Ltd. | Domestic Non- State-owned legal person | 5.18% | 87,935,921 | 0 | |||||
| He Feiyan | Domestic Natural person | 3.23% | 54,800,458 | 54,800,458 | Pledge | 54,000,000 | |||
| Jiutai Fund－Bank of Communications－Jiutai Huitong No.2 specific customer asset management plan | Other | 2.50% | 42,479,672 | 42,479,672 | |||||
| Rich Crown Investment Co., Ltd. | Foreign legal person | 1.37% | 23,235,313 | 0 | |||||
| Qinghai Heyi Industry Development Co., Ltd. | Domestic Non- State-owned legal person | 0.79% | 13,357,084 | 0 | Pledge | 13,357,000 | |||
| Zhang Xubao | Domestic Natural person | 0.65% | 11,015,100 | 0 | |||||
| Huang Huaian | Domestic Natural person | 0.59% | 10,000,000 | 0 | |||||
| Song Wenguang | Domestic Natural | 0.50% | 8,575,981 | 0 | |||||
| person | ||
| Explanation on associated relationship among the aforesaid shareholders | The largest shareholder of Mr. Chen Lue and the Fourth largest shareholder of Ms. He Feiyan aforesaid are persons acting in concernp; The controlling shareholder of the above-mentioned third shareholder Shenzhen Union Holdings Co.,Ltd. And Sixth shareholder Rich Crown Investment Co., Ltd.. Is Union Development Group Ltd. whether the other shareholders have associated relations are unknown. | |
| Notes to the shareholders involved in financing securities (if any) | Nil | |
4. Change of the controlling shareholder or the actual controllerChange 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.5.Number of preference shareholders and shareholdings of top 10 of them
□ Applicable √ Not applicable
No preference shareholders in the reporting period6.Corporate bondsAre there any corporate bonds publicly offered and listed on the stock exchange, which were undue before the
approval date of this report or were due but could not be redeemed in full?No
III. Performance discussion & analysis
1．Performance Review for Reporting period
Is the company subject to any disclosure requirements for special industries?YesCivil Engineering Construction
In the first half of 2018, the company has continued to adhere to the values of “integrity, professionalism,perfection and honor”, paying close attention to the policies and related developments of “the Belt and RoadInitiative”, PPP business and construction medical industry, in order to adapt to the economic developmentsituation by actively expanding overseas project contracting and investment business brought by “the Belt andRoad Initiative” and increasing the investment and construction of PPP projects in medical industry andinfrastructure, which has achieved good results.
In terms of engineering construction, the company has achieved relatively sound and rapid development at homeand abroad. In terms of overseas business, the company has signed important construction contracts with anumber of countries and regions in Southeast Asia, winning the bids for development project of DongphosySpecial Economic Zone in Vientiane, Laos and Mekong Villa project in Cambodian, which helps the company
expand the types and scope of domestic and international project contracting business and enhance the company’scompetitive advantage and overall profitability in order to become a “provider for integrated solution in buildingconstruction”. The company’s domestic business covers various fields such as medical treatment, municipal
construction, transportation and infrastructure. For example, the company has won the PPP project of ecologicalwater system and road network for new district in Yanjin County. As of the end of June 2018, the company has
obtained domestic and international orders exceeding 40 billion yuan, ensuring a steady growth in the company’s
operating performance in the next few years.
In the investment and management in the medical and health industry, the company has acquired 100% of equity
of Acura Kliniken Baden-Baden GmbH, Germany for 14.1 million euros. The Acura Kliniken Baden-Baden GmbH is along-established specialized hospital in Germany with a high reputation in medical rehabilitation. The acquiredhospital is used to introduce senior medical talents, technology and management experience owned by Germany,
and integrate Chinese and foreign resources to achieve the company’s development in the field of medical
rehabilitation.
In other respects, in order to actively grasp the important historical opportunity and business chance to build
Xiong’an New District into a city of “green wisdom” and “Xiong’an quality” proposed by the Party CentralCommittee, the company’s wholly-owned subsidiary Sino Great Wall International invested RMB 100 million toestablish a wholly-owned subsidiary, Sino Great Wall Hebei Xiong’an Engineering Co., Ltd., in Xiong’an NewDistrict, and Xiong’an Engineering officially obtained a business license on February 24, 2018. In order to carryout business effectively in Xiong’an New District, the company leased its office in Xiong’an New District andplanned to arrange the subsidiaries with relevant construction qualifications to merge with Xiong’an Company, sothat Xiong’an Company quickly obtained construction qualification to smoothly obtain orders.
In January-June 2018, the company realized operation income of 1,586,971,575.24 yuan , an decrease
of 47.54% from the last year; and the net profit attributable to the parent company was 143,999,455.72 yuan, andecrease of 46.39% from the last year. The decrease in the above data was Mainly due to the country's credittightening, the funding is tight and the project is progressing slowly.
2.Maters related to financial report(1) Reason for changes in accounting policies, accounting estimates and accounting methods as compared to the
financial report for the prior year
√ Applicable □ Not applicable
I. Overview of changes in the accounting policy
1. Reasons for the change in the accounting policyOn May 10, 2017, the Ministry of Finance issued the "Accounting Standards for Business Enterprises No. 16- Government Grants (Revised in 2017)" (Accounting [2017] No. 15), which was effective on June 12, 2017, andrequired that the prospective approach shall be used on the government grants existed on 1 January 2017 and theadjustments shall be made according to the revised standards for the newly-increased government grants occurredduring the period from January 1, 2017 to the afore-said effective date.
On December 25, 2017, the Ministry of Finance issued the “Notice on Issuance of the Revised Format ofFinancial Statements for General Enterprises” (Accounting [2017] No. 30), requiring the enterprises that
implement the corporate accounting standards shall prepare the financial statement of 2017 and the years after2017 according to the Accounting Standards for Business Enterprises and the requirements of the afore-saidnotice.2. The Accounting Policy adopted by the company before the change
The accounting treatment of government grants prior to this change was implemented according to the
“Accounting Standards for Business Enterprises No. 16-Government Grants" in the “Notice of the Ministry of
Finance of 38 Specific Standards Such as "Accounting Standards for Business Enterprises No. 1-Inventory" issuedby the Ministry of Finance on February 15, 2006 (Accounting [2006] No.3.).
3. The Accounting policy adopted by the Company after the change
The company will implement the “Accounting Standards for Business Enterprises No. 16 – GovernmentGrants (Revised in 2017)” (Accounting [2017] No. 15): the government grants related to daily activities occurred
after January 1, 2017 will be included into the other income; and the government grants not related to dailyactivities will be included into the non-operating income and expenditure.
The company will prepare the financial statement for 2017 and the years after 2017 in accordance with the
“Notice on Issuance of the Revised Format of Financial Statements for General Enterprises” (Accounting [2017]
No. 30) by Minister of Finance. Except the above change in the accounting policy, the rest will be stillimplemented in accordance with the "Enterprise Accounting Standards - Basic Standards" previously promulgatedby the Ministry of Finance and the various specific accounting standards, application guidelines for businessaccounting standards, corporate accounting standards interpretation announcements and other relevant regulations.
4. The date of the ChangeThe company implements the revised accounting policy from the start date specified in such document.
II. The impact of this accounting policy change on the Company
The implementation of “Accounting Standards for Business Enterprises No. 16 – Government Grants
(Revised in 2017) only involves the adjustments in Gains and Losses subjects, which does not affect the currentGains and Losses nor involve the retrospective adjustments in previous years.
It will prepare the financial statement for 2017 and the years after 2017 in accordance with the “Notice onIssuance of the Revised Format of Financial Statements for General Enterprises by Minister of Finance”
(Accounting [2017] No. 30).(2) Reason for retrospective restatement to correct major accounting errors during the reporting period
□ Applicable √ Not applicable
No such cases.(3) Reason for changes in scope of the consolidated financial statements as compared to the financial report forthe prior year
□ Applicable √ Not applicable
No such cases.
Legal representative: Chen LueSino Great Wall Co., Ltd.
August 31,2018