Sino Great Wall Co., Ltd.The Semi-annual Report 2019
August 2019
I. Important Notice, Table of Contents and DefinitionsThe Board of Directors and the directors, Supervisory Committee and supervisors and Senior Executives of theCompany hereby warrant that at the year , there are no misstatement, misleading representation or importantomissions in this report and shall assume joint and several liability for the authenticity, accuracy and completenessof the contents hereof.Mr.Chen Lue , The Company leader, Ms.Yang Chunling, Person in charge of accounting and the Ms. ChangChunling, the person in charge of the accounting department (the person in charge of the accounting )herebyconfirm 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 asabsolute promises of the Company to investors. Therefore, investors are kindly reminded to pay attention topossible 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 attentionto possible investment risks.The Company has no plan of cash dividends carried out, bonus issued and capitalizing of common reserves either.
Table of Contents
Semi-Annual Report 2019I.Important Notice and DefinitionsII. Corporate Profile and Key Financial IndicatorsIII. Business ProfileIV. Performance Discussion and AnalysisV. Important EventsVI. Change of share capital and shareholding of Principal ShareholdersVII. Situation of the Preferred SharesVIII. Information about Directors, Supervisors and Senior ExecutivesIX. Corporate BondsX. Financial ReportXI. Documents available for inspection
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. |
II. Corporate Profile and Key Financial IndicatorsI.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 |
Contact address | Sino Great Wall Building, No.3 Jinxiu Street, Economic Technology Development Zone , Beijing | Sino Great Wall Building, No.3 Jinxiu Street, Economic Technology Development Zone , Beijing |
Tel | 010-89045855 | 010-89045855 |
Fax | 010-89045856 | 010-89045856 |
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 inreporting period or not
□ Applicable □√ Not Applicable
The registered address, office address and their postal codes, website address and email address of the Companydid 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 fordisclosing this report and the location where this report is placed did not change during the reporting period. Thesaid information can be found in the 2018 Annual Report.IV. Summary of Accounting Data and Financial Indicators
Indicate by tick mark whether the Company needs to retroactively restate any of its accounting data.
□ Yes √No
Reporting period | Same period of last year | YoY+/-(%) | |
Operating income(RMB) | 256,367,221.67 | 1,586,971,575.24 | -83.85% |
Net profit attributable to the shareholders of the listed company(RMB) | -1,416,774,391.50 | 143,999,455.72 | -1,083.87% |
Net profit after deducting of non-recurring gain/loss attributable to the shareholders of listed company(RMB) | -951,716,601.10 | -33,506,685.35 | 2,740.38% |
Cash flow generated by business operation, net(RMB) | -422,152,026.80 | 1,098,164,365.63 | -138.44% |
Basic earning per share(RMB/Share) | -0.8343 | 0.0848 | -1,083.84% |
Diluted gains per share(RMB/Share)(RMB/Share) | -0.8343 | 0.0848 | -1,083.84% |
Weighted average ROE(%) | -298.54% | 6.61% | -305.15% |
As at the end of the reporting period | As at the end of last year | YoY+/-(%) | |
Gross assets (RMB) | 7,971,610,486.31 | 9,603,455,934.89 | -16.99% |
Shareholders’ equity attributable to shareholders of the listed company(RMB) | -1,184,353,287.94 | 235,202,473.51 | -603.55% |
V.The differences between domestic and international accounting standards1.Simultaneously pursuant to both Chinese accounting standards and international accounting standards disclosedin 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 Chineseaccounting standards.
□ Applicable √Not applicable
NilVI.Items and amount of non-current gains and losses
√Applicable □Not applicable
In RMB
Items | Amount | Notes |
Non-current asset disposal gain/loss(including the write-off part for which assets impairment provision is made) | 54,651.22 | |
Net amount of non-operating income and expense except the aforesaid items | -465,112,441.62 | |
Total | -465,057,790.40 | -- |
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 oninformation disclosure for Compaines Offering their Securities to the Public-Non-recurring Gains and Losses andits non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosurefor Companies offering their securities to the public-non-recurring Gains and losses which have been defined asrecurring 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 informationdisclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period.
III. Business ProfileⅠ.Main Business the Company is Engaged in During the Report PeriodWhether the company needs to comply with the disclosure requirements of the particular industryYesCivil Engineering ConstructionDuring the reporting period, the company's core businesses were engineering construction and the investment andmanagement of medical and health industries. The construction of the project is mainly international generalcontracting (EPC) business and domestic professional projects. The investment and management of medical andhealth industry are mainly medical engineering, hospital investment and old-age care industry investment. Atpresent, the company's business scope has spread to major cities in China and many countries and regions such asSoutheast Asia, Middle East, South Asia and Africa.The main mode of the company's foreign engineering construction is EPC general contracting, that is, through theintegration of domestic and foreign high-quality resources, the whole process or several stages of contracting areimplemented 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 alsoparticipate 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
Main assets | Major 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 CompetitivenessWhether the company needs to comply with the disclosure requirements of the particular industryYesCivil Engineering ConstructionSino Great Wall is a leading construction & engineering contractor in China with business covers various typesconstruction & engineering contracting. With leading projects such as PM, EPC, BT, BO and PPP, etc., The
promotion of the national "the belt and road initiative" strategy has provided a good opportunity for the company'soverseas 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 relevantconstruction qualifications, domestic businesses will also embrace better development opportunities as thenational PPP project continues to advance. The company's comprehensive strength, overseas influence and marketcompetitiveness will increase year by year.
1. Strategic positioning advantage
The “Construction & Engineering contracting” and “Medical & Health Business” will be the company’s twostrategic directions for future development. In 2013, the company set up the development goal “Making biggerand 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 essentialdevelopment 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” projectsand “Medical & Health Industry” will provide a broad market space for the company’s business development. Interms of engineering contracting, the early-development advantage of overseas business enables the company tohave rich management experiences and high-quality customers and establish talented teams, thus laid a solidfoundation for the company’s overseas business development. In terms of the Medical & Health business, thecompany has set up project teams in many domestic places such as Sichuan, Henan and Hubei, and the companyhas purchased Wuhan Commercial Worker Hospital and won the bids of many medical PPP project. Also, thecompany has established cooperative relationships with many hospitals and has recruited many kinds of talents interms of medical, hospital management, investment and financing etc., thus provided a strong support for theMedical & 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 isbecoming more complex. However, the company timely set up the sound management system and theauthorization system to standardize the approval procedures, reduce the management hierarchy tiers and improvethe work efficiency and execution, thus ensured the efficient operation of the company’s business operation. Forthe operation mechanism, the company bravely faces the fierce competition in the market, adheres to themarket-oriented development, respects the objective laws of the market and constantly improvesits managementlevel, 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 integrateddesign and construction experiences and good project management capabilities, so the company is able to provideintegrated design and construction services in terms of civil engineering, decoration, mechanical and electricalinstallation and full industry chain of curtain wall, and the company can independently complete the wholeprocess of construction project. The company can form a comprehensive advantage in the field of buildingengineering, so it can reasonably schedule the procurement, labor use and construction plan, as well as thecompany 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 servicegreatly enhanced the customers’ satisfaction.
4. Costs advantages and quality-control advantages
The core management staff of the company all have more than 10 years experiences of building and
engineering construction. Upon the deep understanding of the industry, the company establisheda relatively perfectmaterial procurement, labor management and quality control system. Through the price ceiling mode forprocurement, the company screens the suppliers in the early stage of a project, thus to ensure that the procurementcosts of the project materials would be in a reasonable scope. By locking the technical requirements and timerequirements of the project, the company can lock the labor costs. The company has set up strict quality-controlsystem 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 andrecognition by a great number of customers.
IV. Performance Discussion and AnalysisⅠ.GeneralIn the first half of 2019, due to the escalation of trade tensions and the tightening of credit in major economies, thedifferentiation of major economies in the world has intensified and uncertainty has increased. The world economicsituation is facing downward risks. China's overall economic operation is within a reasonable range, continuingthe overall steady and steady development trend. Although the company is still affected by last year's nationalcapital management policy and the different degrees of loan collection by financial institutions such as loanwithdrawal and loan interruption, the company's operating capital is with difficulty in liquidity, which hastriggered a series of chain reactions of operating difficulties. The company's operating income has been greatlyreduced. The company has overcome many difficulties and actively responded to them. During the reportingperiod, the company actively solved the problem of back pay for some employees and increased the dunningeffort 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%; Operatingprofit was -951 million yuan, with a year-on-year decrease of 5583.63%; Net profit attributable to the parentcompany 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 existingbusiness area and scale, and continued to steadily expand its business. During the reporting period, the companyfaced difficulties both domestically and abroad. In terms of foreign business, the company continues to maintainthe normal operation of existing projects in Cambodia, Russia, Malaysia and Algeria. It actively promotes thesettlement, litigation, accounts receivable recovery and activation of shutdown projects. Meanwhile, it is expectedto sign a high-value business contract in 2019 by making use of the good relationship of existing major customersand 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, havebeen capped. The Xiangfu District Hospital of Traditional Chinese Medicine in Kaifeng City, Henan Province andthe Anyang Second People's Hospital are under active construction. Other large health projects such as medicalcare 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 promotedto be implemented, the scientific and technological content of the company's medical and health sector will beelevated, 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 theimplementation of strategic development goals. In recent years, the Chinese government has successively issuedrelevant policies to vigorously promote the transformation of the construction industry to constructionindustrialization. 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, theproduction line has not yet been established and put into operation. Meanwhile, the company promoted the ruralassembly 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 thedifficulties. It has successively carried out a series of reforms and innovations in enterprise management mode,
timely investigated and re-elected board members, integrated the senior management team, re-organized thebusiness sectors, defined the responsibility assessment, strengthened the asset preservation, comprehensivelyoptimized control and other measures to effectively stimulate enterprise development potential in adversity.Ⅱ.Main business analysisRefer to relevant contents of “1.Summarization” in “Discussion and Analysis of Management”.Changes in the financial data
In RMB
Reporting period | Same period of last year | YoY+/-(%) | Reason for change | |
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 expense | 87,163,665.56 | 127,907,861.56 | -31.85% | |
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 operating activities | -422,152,026.80 | 1,098,164,365.63 | -138.44% | |
Net cash generated by investing activities | -201,491,732.24 | -100.00% | ||
Net cash generated by financing activities | 356,304,797.30 | -1,281,374,118.34 | -127.81% | |
Net increase in cash and cash equivalents | -66,246,078.33 | -389,203,669.48 | -82.98% |
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 RMB
Operating revenue | operating costs | Gross profit rate(%) | Increase/decrease of reverse in the same period of the previous year(%) | Increase/decrease of principal business cost over the same period of previous year (%) | Increase/decrease of gross profit rate over the same period of the previous year (%) | |
On Industry |
EPC | 202,439,147.55 | 171,982,276.99 | 15.04% | -84.15% | -83.76% | -2.05% |
Decoration work | 53,928,074.12 | 55,663,759.25 | -3.22% | -82.60% | -78.04% | -21.44% |
On Product | ||||||
EPC | 202,439,147.55 | 171,982,276.99 | 15.04% | -84.15% | -83.76% | -2.05% |
Decoration work | 53,928,074.12 | 55,663,759.25 | -3.22% | -82.60% | -78.04% | -21.44% |
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 RMB
End of Reporting period | End of same period of last year | Change in percentage(%) | Reason for significant change | |||
Amount | As a percentage of total assets(%) | Amount | As a percentage of total assets(%) | |||
Monetary funds | 161,407,308.22 | 2.02% | 1,374,597,109.50 | 12.47% | -10.45% | |
Account receivable | 3,268,131,916.96 | 41.00% | 5,031,464,951.12 | 45.63% | -4.63% | |
Inventory | 997,074,459.45 | 12.51% | 745,455,718.17 | 6.76% | 5.75% | |
Long-term Equity Investment | 106,837,810.83 | 1.34% | 0.00% | 1.34% | ||
Fixed assets | 139,240,017.20 | 1.75% | 331,425,276.47 | 3.01% | -1.26% | |
Construction in process | 36,805,894.03 | 0.46% | 707,700.59 | 0.01% | 0.45% | |
Short-term loans | 3,306,944,094.49 | 41.48% | 2,798,513,481.24 | 25.38% | 16.10% | |
Long-term loans | 120,000,000.00 | 1.51% | 873,089,164.49 | 7.92% | -6.41% |
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 |
Monetary funds | 101,885,589.67 | Margin 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 the reporting period | Investments made in same period of last 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.
VI. Sales of major assets and equity
1. Sales of major assets
□ Applicable √ Not applicable
The Company had no sales of major assets in the reporting period.
2.Sales of major equity
□ Applicable √ Not applicable
Ⅶ.Analysis of the Main Share Holding Companies and Share Participating Companies
√ Applicable □ Not applicable
Situation of Main Subsidiaries and the Joint-stock Company with over 10% net profit influencing to the Company
In RMB
Company name | Company type | Main business scope | Registered capital | Total assets | Net assets | Turnover | Operating profit | Net profit |
Sino Great Wall International Engineering Co., Ltd. | Subsidiaries | General contracting, subcontracting, engineering survey and design; professional contracting; architectural decoration engineering; architectural curtain wall; project and technology study and experimental development; sell building material, machinery, hardware, plastic articles; technology development, | 1,000,000,000 | 6,645,553,235.97 | -234,815,416.20 | 185,542,158.51 | -646,229,605.66 | -1,112,908,329.81 |
Subsidiaries obtained or disposed in the reporting period
√Applicable □Not applicable
technologyconsultation,technologyservice; goodsimport andexport;technologyimport andexport; agentimport andexport.
Name
Name | Mode | Influence |
Sino Great Wall International Engineering Co., Ltd.Chengdu Branch | Written off | Which weight less in the whole company’s operation |
Notes
Sino Great Wall International Engineering Co., Ltd. is a wholly-owned subsidiary of the company, and is the mainsubsidiary of the company's business income and profit sources. Its business income and net profit both accountfor more than 90% of the company's business income and net profit. The ratio of business income and net profit ofother 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 2019Estimation of accumulative net profit from the beginning of the year to the end of next report period to be lossprobably or the warning of its material change compared with the corresponding period of the last year andexplanation 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 thedevelopment of construction industry, and factors such as the operation of national economy and the developmentof urbanization process will directly affect the construction industry. The construction industry and health careindustry that the company is engaged in are greatly affected by macro-economy and policies. The uncertainty ofinternational and domestic economic situation and changes in national policies bring potential risks to the
company's market development and operation management.Solutions: Pay constant attention to the international and domestic economic situation to make reasonableprejudgement. Make timely adjustment for operating strategy and marketing policy and make pre-arrangedplanning 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 giantinternational contractors in Europe, America, Japan and South Korea are increasingly common, which canincreasingly strength the aspects including the technology, financing and management; on the other hand, moredomestic 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 theattractiveness of medical engineering projects, many companies have participated in the construction of medicalengineering projects. Thus, the medical engineering projects have been more difficult to bid and have fiercecompetition, 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 toconstantly 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 themanagement of the company's management mode, talent reserve, technological innovation and marketdevelopment.
Solutions: The company will continue to improve the management level, strengthen the talent reserve, adjustand improve the management system, continue to strengthen the information management, and form big dataprecipitation and analysis of various data in the operation process through advanced technical means, so as topromote 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 inthe payment of project funds, restrictions on transportation, power supply and water supply, land acquisition andrelocation, 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 operatingperformance and reputation.
(2) Risk of increased material price
The construction industry is mainly about fixed cost contract, so gross profit margin is somehow sensitive tothe fluctuation of purchasing price of construction materials. The bulk materials used by the company mainlyinclude concrete and steel. Due to the long construction period in construction projects, the price increase of thesebulk materials will directly lead to the increase of construction costs, resulting in the difference between the actualconstruction 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 willface potential economic risks, exchange rate risks, political risks and other risks in the process of overseasbusiness operation. In case of major fluctuations or economic crises in the economic development of the countriesor regions where the company's overseas target markets are located, they will adversely affect the company'soverseas 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
technological innovation according to the professional development ideas, seek expansion of business areas andconstruction qualifications, improve operation quality and benefits, create green and high-quality projects, realizemulti-field professional construction operations and enterprise development, and continuously upgrade brandstrength.
4. Risk of bad debt caused by accounts receivable
Some countries have entered the debt repayment period, with increased financial pressure, increased risk ofdebt default, insufficient confidence of investors, and scarce funds for infrastructure construction. The companyhas a large balance of accounts receivable, and the high proportion of net accounts receivable to total assets is dueto the characteristics of the industry. With the expansion of the company's business scale, the balance of thecompany's accounts receivable is generally on the increase, and the proportion of net accounts receivable to totalassets is expected to remain at a relatively high level. The failure to recover the company's accounts receivable intime will affect the company's capital turnover rate and cash flow from operating activities, thus adverselyaffecting the company's production, operation and performance level.
Solutions:Strengthen fund management, rationally allocate fund structure, and establish assessmentmechanism 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 designatedinformation disclosure media. As the overdue debts of the company and its subsidiaries are not paid off and thecompany is under investigation by the CSRC, the company has been sued by some creditors and some of its bankaccounts and company's assets have been frozen. The overdue debts of the company may be subject to payment ofrelevant liquidated damages, late fees and penalty interests, increasing the company's financial expenses, thusaffecting the company's production and business operation, possibly weakening the confidence of other creditorsin 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 Roadand Bridge served by the court. Bihui Road and Bridge applied to the court for reorganization of the company onthe grounds that the company was unable to repay the debts due and obviously lacked solvency. If the courtformally accepts the application for reorganization of the company, the company will be declared bankrupt due tothe 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 oflitigation-related matters, and employ professional lawyers to actively respond to lawsuits so as to protect thelegitimate rights and interests of the company. The company is making every effort to raise debt service funds andproperly handle the debt crisis. If the court formally accepts the application for reorganization of the company andthe company smoothly implements the reorganization and completes the reorganization plan, it will be beneficialto improve the company's asset and liability structure and enhance the company's profitability. Up to now, thecompany has received a written letter of support for the reorganization of more than half of the amount ofcreditor's rights. During the period when the court accepts the review case, the company will actively cooperatewith the court to study and demonstrate the feasibility of the reorganization of the company. If the court decidesthat the company has entered the reorganization, the company will actively cooperate with the court and theadministrator 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
suspected illegal information disclosure. According to the relevant provisions of the Shenzhen Stock ExchangeListing Rules (Revised in November 2018), if the company is involved in the illegal material informationdisclosure and under other forced delisting situations stipulated in Article 13.2.1, the company's shares will besubject to the delisting risk warning. The company's shares will be suspended on the next trading day after theexpiration of the 30-trading-day period in the delisting risk warning until the Shenzhen Stock Exchange makes adecision on whether to suspend the listing of the company's shares within 15 trading days after the suspension. Ifthe 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 generalpartnership) 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 willbe subject to "delisting risk warning" from May 6, 2019. If the company's 2019 financial and accounting reportcontinues to be issued with audit reports that cannot express opinions or negative opinions, the company's stockswill be suspended from the date of disclosure of the 2019 annual report in accordance with the relevant provisionsof the Listing Rules of Shenzhen Stock Exchange.Solutions:(1) The Company will actively cooperate with the CSRC to carry out investigations, and perform itsinformation disclosure obligations according to the relevant provisions of the Listing Rules of Shenzhen StockExchange and disclose risk alert announcements at least once a month. (2) According to the reason why the auditreport 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 aninternal 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.
V. Important Events
1. Annual General Meeting and Extraordinary Shareholders’ Meetings in the Reporting Period
1.Annual General Meeting
Meeting | Type | Investor participation ratio | Convened date | Disclosure date | Index to disclosed information |
The first provisional shareholders’ General meeting in 2019 | Provisional shareholders’ General Meeting | 34.40% | February 13,2019 | February 14,2019 | The first provisional shareholders’ General Meeting in 2019 (No.2019-016) published on Securities Times,Hong Kong Commercial Daily and Juchao Website(http://www.cninfo.com.cn)on |
2018 Annual General Meeting | Annual General Meeting | 39.62% | May 20,2019 | May 21,2019 | 2018 Annual General Meeting (No.2019-059) published on Securities Times,Hong Kong Commercial Daily and Juchao Website(http://www.cninfo.com.cn)on |
2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √Not applicable
II. Proposal for profit distribution and converting capital Reserve into share atial for the reporting period
□ Applicable √Not applicable
For the reporting period, the Company plans not to distribute cash dividends or bonus shares or convert capitalreserve into share capital.III. The fulfilled commitments in the reporting period and under-fulfillment commitments by the end of thereporting period made by the company, shareholder, actual controller, acquirer, director, supervisor,senior management personnel and other related parities.
√ Applicable □ Not applicable
Commitment | Commitment maker | Type | Contents | Time of making commitment | Period of commitment | Fulfillment |
Commitment on share reform | No | No | No | No | No | |
Commitment in the acquisition report or the report on equity changes | No | No | No | No | No | |
Commitments in assets reorganization | Chen Lue | Stock lock | Shares acquired by matching funds raised: “I will not transfer the new shares of Victor Onward Holdings acquired through this issuing by any way, including but not limited to the public transfer through the stock market or by agreement, within 36 months from the date new shares list. If regulation rules or regulators have longer requirements for lock-up periods, it should be executed accordingly. | March 19, 2015 | 36 months | Strict performing |
Chen Lue | No capital occupation | Up to the issue day of the letter, I and other corporations controlled by me haven’t possessed funds of Sino Great Wall; After the transaction is completed, I and other companies controlled by me (if any), except for listed companies and their holding subsidiaries, will not possess the funds of listed companies or Sino Great Wall by any way, including cash in advance, other expenses, direct or indirect loans, assumption, etc. and try our best to | March 19,2015 | Long-term | Strict performing |
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. Meanwhile, I will actively urge Sino Great Wall to establish complete inner control system and funds management system within lawful authority. | |||||
Chen Lue | Cash compensation | In view of the fact that the houses rented by Sino Great Wall and it’s son subsidiaries, subsidiaries, haven’t rental registration, I promise, if Sino Great Wall and its son subsidiaries, subsidiaries, were penalized by real estate management department or suffered other losses resulting from it, I agree to compensate the loss of the company by cash. | March 19,2015 | Long-term | Strict performing |
Chen Lue | Cash compensation | During the reporting period, the project which Sino Great Wall is involved in is the decoration engineering construction project of Libo Grand Hotel (hereinafter referred to as “Libo project”) which the company contracted before the bidding process. Sino Great Wall is not involved in any other projects except for Libo project before bidding process. As to the violating issues existed in the Libo project, I promise as follows: if Sino Great Wall got penalized by government administration departments or suffered any economic loss resulted from it, I will compensate the company by cash; Meanwhile, I, within lawful authority, will also promise to urge the company to undertake related construction projects legally so as to avoid violating issues happened before implementation of bidding process, i.e., at | March 19,2015 | Long-term | Strict performing |
the time for construction again. | |||||
Chen Lue | Cash compensation | 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 parent-subsidiary companies of Sino Great Wall’s losses which are caused by operation and finance due to the above-mentioned matters. 2. I undertake to unconditionally bear the relevant fines by cash for parent-subsidiary companies of Sino Great Wall on condition that the rental house property of parent-subsidiary companies of Sino Great Wall and its subsidiary corporation is in absence of handling procedures for filing house leasing ,which resulted in that parent-subsidiary companies of Sino Great Wall and its subsidiary corporation are fined by property administrative department. 3.The commitment letter is irrevocable. | March 19,2015 | Long-term | Strict performing |
Chen Lue | Cash compensation | “In condition that parent-subsidiary companies of Sino Great Wall or its son subsidiary haven’t paid social security or housing fund for staff according to law, which resulted in any losses to Sino Great Wall , including the competent authorities’ requirement for Sino Great Wall or its subsidiary to make supplementary 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 | March 19, 2015 | Long-term | Strict performing |
its subsidiary to avoid suffering from any loss ”. | |||||
Chen Lue | Cash compensation | “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 and rural construction bureau, of which other examination and approval procedures of construction are in the process of handling “I undertake to actively supervise and urge Suzhou Lvbang on handling procedures of the approval process involved with factor refurnishing and reconstruction, and which is suffered from administrative punishment by relevant competent authorities in reason of claiming certificate of title, or in which any dispute or controversy exist in construction and ownership, which shall be my responsibility to carry out solution, and I undertake to compensate by cash for Suzhou Lvbang’s losses which are due to this matter, guaranteeing no losses occur to Sino Great Wall and Suzhou Lvbang for this matter. | March 19,2015 | Long-term | Strict performing |
Chen Lue | Cash compensation | “According to the “Agreement of Significant Asset Replacement and Issue of Share to Buy Asset”(hereinafter referred to as “Agreement”) signed among Victor Onward Holdings, all shareholders | March 19, 2015 | Long-term | Strict performing |
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. Meanwhile, I will reserve the resource rights for Union Group and the specified third party “. | |||||
Chen Lue; He Feiyan | Independent competition | 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 Great Wall. Independence exists in both staff, asset, finance, institution and business and no confusion exists. 2. I undertake, after this reorganization, to 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, | September 30,2015 | Long-term | Strict performing |
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 Lue; He | Related transa | “1.Before this reorganization, the fairness and reasonableness of pricing and the legitimacy and effectiveness of | March 19, 2015 | Long term | Strict performing |
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 offering or re-financing | No | No | No | No | No | |
Equity incentive commitment | No | No | No | No | ||
Other commitments for medium and small shareholders | No | No | No | No | ||
Completed on time(Y/N) | Yes | |||||
If the commitments are not fulfilled on time, shall explain the specify reason and the next work plan | Nil |
IV. Particulars about engagement and disengagement of CPAs firmWhether 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” Issuedby 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 anopinion, 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 ofdirectors of the company believes that "matters that lead to the inability to express opinions" fully reveal the risksfaced by the company and objectively reflect the actual situation and financial situation of the company. Theboard 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. TheBoard of Directors of the Company will take effective measures to eliminate the above risk factors as far aspossible.During the reporting period, the company took the following measures to eliminate non-standard items and theirimpacts:
1. During the reporting period, the company strengthened self-examination of its internal control system, foundproblems in internal control in a timely manner, formulated practical and feasible corrective measures andimplemented them, and strengthened sorting, revision and training of internal control related systems, which laid afoundation 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 inrecent years; To check and verify the company's bank deposits and loans, past and present funds, projectcorrespondence, etc., and collect complete financial information. At the same time, it strengthened communicationwith 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 returnof company funds and credit improvement. It reached clear opinions with the owner of the suspended project onthe follow-up promotion of the project, arranged the finance department and the engineering department toactively and effectively communicate with the relevant engineering parties and suppliers, and checked the relevantcapital flow, project progress, inventory, etc., so as to strive for the continuation of the project and reduce thecompany's losses. For litigation-related cases, the company will continue to pay attention to the follow-upprogress, 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 tolawsuits so as to protect the legitimate rights and interests of the company.
4. During the reporting period, the company is making every effort to raise debt service funds and properly handlethe debt crisis. The company has carried out all-round work in accounts receivable collection, including but notlimited to sending written collection letters, setting up a collection team to collect on-site and investigating theassets of the debt company on site. The company continues to collect evidence and materials, and will furtherintensify 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 investors interms 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 Bridgefrom Shenzhen Intermediate People's Court (hereinafter referred to as the "court"). The Application forReorganization stated that Bihui Road and Bridge applied to the court for reorganization of the company on thegrounds that the company could not repay the debts due and obviously lacked solvency. No matter whether itenters the reorganization process or not, the company will actively ensure daily operation and management on theexisting basis, actively solve the company's current financial difficulties, and promote the company to return to thetrack of healthy and sustainable development.
5. Since being placed on file for investigation by the China Securities Regulatory Commission, the company hasfully cooperated with the investigation work of the China Securities Regulatory Commission, including but notlimited to providing relevant information as required and reporting the progress of relevant verification work in atimely manner. The company shall perform its information disclosure obligations in accordance with the relevantprovisions 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 seriously study the countermeasures, actively push forwardthe related work on improving the company's governance, and solve the current problems of the company as soonas possible. Meanwhile, the board of directors will further urge the company's management to communicate withrelevant parties and take active measures to do their best to continuously promote the project constructionprogress 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 mattersSignificant lawsuits or arbitrations
√ Applicable □Not applicable
General information | Involved amount (Ten thousand yuan) | Provision | Progress | Decisions and effects | Execution of decisions | Disclosure date | Index to disclosed information |
Loan Contract Dispute Case with Shenzhen Guodingsheng Trading Co., Ltd. | 12,811.63 | No | Second instance judgment is given and case | — | The Guangdong Shenzhen Intermediate People's Court | August 31,2018 | On August 31, 2018, it was disclosed |
is closed | issued (2019) Y03Z701 enforcement verdict, with a mandatory enforcement of 88,941,110.88 yuan. | in the 2018 Semi-annual Report on Cninf; On September 2018, Announcement on the Company, Its Wholly-owned Subsidiaries and Controlling Shareholders Receiving <Notice of Enforcement> and < Property Report Order>; On October 23, 2018, Announcement on Reply to Inquiry Letter on Semi-annual Report of Shenzhen Stock Exchange |
(Announcement No.:2018-125); On February 20, 2019, Announcement on Reply to Shenzhen Stock Exchange's Letter of Concern(Announcement No.::2019-019);Announcement on the Progress of Major Litigation and Arbitration Matters on April 19, 2019 (Announcement No.: 2019-036);The full text of the 2018 annual report on April 30, 2019 | |||||||
Financial loan contract dispute | 4,997.22 | No | The judgment | — | During implementatio | August 31,2018 | On August |
case of Zhuhai Branch of Xiamen International Bank Co., Ltd. | of the second instance is closed and is being implemented. | n: The People's Court of Xiangzhou District, Zhuhai City, Guangdong Province made the Execution Order [(2019) Y 0402 Z No. 4280], imposing a total of 48,882,075.8 yuan for the principal and interest of the loan and 116,283 yuan for execution fee | 31, 2018, it was disclosed in the 2018 Semi-annual Report on Cninf; On September 2018, Announcement on the Company, Its Wholly-owned Subsidiaries and Controlling Shareholders Receiving <Notice of Enforcement> and < Property Report Order>; On October 23, 2018, Announcement on Reply to Inquiry Letter on Semi-annual Report of |
); | |||||||
Loan contract dispute case with Li Qiaoli | 16,192.92 | No | The judgment is given and the case is closed. | — | Under enforcement On February 2, 2019, Shenzhen Intermediate People's Court issued (2019) Y03Z65 enforcement verdict, with a mandatory enforcement of 177.194128 million yuan | August 31,2018 | On August 31, 2018, it was disclosed in the 2018 Semi-annual Report on Cninf; On September 2018, Announcement on the Company, Its Wholly-owned Subsidiaries and Controlling Shareholders Receiving <Notice of Enforcement> and < Property Report Order>; On October 23, 2018, Announcement on Reply to Inquiry Letter on |
Semi-annual Report of Shenzhen Stock Exchange(Announcement No.:2018-125); On February 20, 2019, Announcement on Reply to Shenzhen Stock Exchange's Letter of Concern(Announcement No.::2019-019); The full text of the 2018 annual report on April 30, 2019 | |||||||
Loan contract dispute case of Shenzhen Brach of Bank of Ningbo | 9,523.09 | No | The first-instance judgment is closed and an appeal is made | — | — | August 31,2018 | On August 31, 2018, it was disclosed in the 2018 Semi-annual Report on Cninf; On Septembe |
ment on Reply to Shenzhen Stock Exchange's Letter of Concern(Announcement No.::2019-019); The full text of the 2018 annual report on April 30, 2019; Announcement on the Progress of Major Litigation and Arbitration Matters on May ,8, 2019 (Announcement No.: 2019-050) | |||||||
Loan contract dispute case of Industrial Bank (China) Shenzhen Houhai Sub-branch | 29,137.97 | No | The judgment is given and the case is closed. | — | Shenzhen Intermediate People's Court issued (2018) Y03Z2798, with a mandatory enforcement | August 31,2018 | On August 31, 2018, it was disclosed in the 2018 Semi-ann |
of 293,399,781 yuan. | ual Report on Cninf; On September 2018, Announcement on the Company, Its Wholly-owned Subsidiaries and Controlling Shareholders Receiving <Notice of Enforcement> and < Property Report Order>; On October 23, 2018, Announcement on Reply to Inquiry Letter on Semi-annual Report of Shenzhen Stock Exchange(Announcement No.:2018- |
125); On February 20, 2019, Announcement on Reply to Shenzhen Stock Exchange's Letter of Concern(Announcement No.::2019-019) ; The full text of the 2018 annual report on April 30, 2019; Announcement on the Progress of Major Litigation and Arbitration Matters on April 19,, 2019 (Announcement No.: 2019-036) | |||||||
Enforcement case of Shaanxi International Trust Co., Ltd | 11,711.49 | No | The (2018) XZZF Zi No. 140 execution | — | Under enforcement | September 14,2018 | On September 14,2018, Announce |
certificate issued by Xi'an Notary Office has become legally effective, and Shaanxi International Trust Co., Ltd. applied to Beijing Second Intermediate People's Court for compulsory execution | ment on the Company, Its Wholly-owned Subsidiaries and Controlling Shareholders Receiving <Notice of Enforcement> and < Property Report Order>; On October 23, 2018, Announcement on Reply to Inquiry Letter on Semi-annual Report of Shenzhen Stock Exchange(Announcement No.:2018-125); On February 20, 2019, Announcement on Reply to |
Shenzhen Stock Exchange's Letter of Concern(Announcement No.::2019-019); Announcement on the Progress of Major Litigation and Arbitration Matters on April 19, 2019 (Announcement No.: 2019-036) | |||||||
Enforcement case of CCB International Asset Management (Shanghai) Co., Ltd | 21,111.82 | No | The Notice of Enforcement from Beijing Third Intermediate People's Court on the Case of Notarization of Creditor's Rights Documents between | — | Under enforcement | September 18,2018 | On September 18, 2018, Announcement on the Company, Its Wholly-owned Subsidiaries and Controlling Shareholders Receiving |
the Company and CCB International Asset Management (Shanghai) Co., Ltd. is received | <Notice of Enforcement> and < Property Report Order>; On February 20, 2019, Announcement on Reply to Shenzhen Stock Exchange's Letter of Concern(Announcement No.::2019-019); The full text of the 2018 annual report on April 30, 2019 | ||||||
Loan dispute case with Chen Jiang | 4,980 | No | The execution has been completed. | — | — | September 18,2018 | On September 18, 2018, Announcement on the Company, Its Wholly-owned Subsidiaries and |
Announcement on Reply to Shenzhen Stock Exchange's Letter of Concern(Announcement No.::2019-019); The full text of the 2018 annual report Announcement on the Progress of Major Litigation and Arbitration Matters on June 14, 2019 (Announcement No.: 2019-075); | |||||||
Contract dispute case with Gome Cinda Factoring Co., Ltd. | 4,285.52 | No | The first-instance judgment is closed and an appeal is made | — | — | October 23,2018 | On October 23, 2018, Announcement on Reply to Inquiry Letter on Semi-annual |
Report of Shenzhen Stock Exchange; On February 20, 2019, Announcement on Reply to Shenzhen Stock Exchange's Letter of Concern(Announcement No.::2019-019); Announcement on the Progress of Major Litigation and Arbitration Matters on April 19, 2019 (Announcement No.: 2019-036) ; The full text of the 2018 annual report on April 30, 2019. | |||||||
Financial loan | 36,492.18 | No | Waiting | — | — | September | Announce |
contract dispute case with Bohai International Trust Co., Ltd. | for the judgment of first instance. | 15,2018 | ment on Partial Debt Overdue on September 15, 2018; Announcement on Receiving Civil Complaint on October 9, 2018; On February 20, 2019, Announcement on Reply to Shenzhen Stock Exchange's Letter of Concern(Announcement No.::2019-019); The full text of the 2018 annual report on April 30, 2019 | ||||
Financial loan contract dispute case with China Industrial International | 10,245.74 | No | The first-instance verdict was | — | Not yet applied for execution | Sptember 15,2018 | Announcement on Partial Debt Overdue |
Trust Limited | closed | on September 15, 2018; Announcement on Receiving Civil Complaint on October 13, 2018;On February 20, 2019, Announcement on Reply to Shenzhen Stock Exchange's Letter of Concern(Announcement No.::2019-019); Announcement on the Progress of Major Litigation and Arbitration Matters on April 19, 2019 (Announcement No.: 2019-036); |
The full text of the 2018 annual report on April 30, 2019 | |||||||
Financial loan contract dispute case with China Industrial International Trust Limited | 10,113.78 | No | The first-instance verdict was closed | — | Not yet applied for execution | September 15,2018 | Announcement on Partial Debt Overdue on September 15, 2018; Announcement on Receiving Civil Complaint on October 13, 2018;On February 20, 2019, Announcement on Reply to Shenzhen Stock Exchange's Letter of Concern(Announcement No.::2019-019); The full text of the 2018 annual |
report on April 30, 2019 | |||||||
Bill dispute case with Jiaozuo Junpeng Coal Co., Ltd. | 305 | No | The judgment is given and the case is closed. | — | Under enforcement | October 13,2018 | Announcement on Receiving Civil Complaint on October 13, 2018;On February 20, 2019, Announcement on Reply to Shenzhen Stock Exchange's Letter of Concern(Announcement No.::2019-019); The full text of the 2018 annual report on April 30, 2019; Announcement on the Progress of Major Litigation and Arbitration Matters on July 3, |
2019 (Announcement No.: 2019-083); | |||||||
Bill dispute case with Tongchuan New District Hengxin Building Material Co., Ltd. | 456 | No | The judgment is given and the case is closed. | — | Under enforcement | October 13,2018 | Announcement on Receiving Civil Complaint on October 13, 2018;On February 20, 2019, Announcement on Reply to Shenzhen Stock Exchange's Letter of Concern(Announcement No.::2019-019) |
Bill dispute case with Xian Bihui Road & Bridge Engineering Co., Ltd. | 507 | No | The judgment is given and the case is closed. | — | Under enforcement | October 13,2018 | Announcement on Receiving Civil Complaint on October 13, 2018;On February 20, 2019, Announcement on Reply to |
Shenzhen Stock Exchange's Letter of Concern(Announcement No.::2019-019); The full text of the 2018 annual report on April 30, 2019; Announcement on the Progress of Major Litigation and Arbitration Matters on July 3, 2019 (Announcement No.: 2019-083) | |||||||
Financial loan contract dispute case with Datong Securities Co., Ltd. | 13,801.32 | No | The judgment is given and the case is closed. | — | Under enforcement | September 14,2018 | Announcement on Early Termination of Collective Funds Trust Plan for Trust Loan on Septembe |
and Arbitration Matters on April 19, 2019 (Announcement No.: 2019-036); The full text of the 2018 annual report on April 30, 2019; Announcement on the Progress of Major Litigation and Arbitration Matters on June 14, 2019 (Announcement No.: 2019-075). | |||||||
Financial loan contract dispute case of Ping An International Financial Leasing Co., Ltd. | 2,905.1 | No | The judgment is given and the case is closed. | — | Not yet applied for execution | October 24,2018 | Announcement on Receiving Civil Complaint on October 24, 2018;Announcement on Receiving |
2019-075). | |||||||
Private loan dispute case with Gong Lihong | 3,143.18 | No | The judgment of first instance is issued and an appeal is made. The plaintiff applied for additional preservation in the lawsuit. | — | — | October 24,2018 | Announcement on Receiving Civil Complaint on October 24, 2018;On February 20, 2019, Announcement on Reply to Shenzhen Stock Exchange's Letter of Concern(Announcement No.::2019-019) ; Announcement on the Progress of Major Litigation and Arbitration Matters on April 19, 2019 (Announcement No.: 2019-036); The full text of the 2018 |
annual report on April 30, 2019; Announcement on the Progress of Major Litigation and Arbitration Matters on May 8, 2019 (Announcement No.: 2019-050). | |||||||
Right of recourse dispute case with Shenzhen Yi'an Factoring Co., Ltd. | 1,056.34 | No | The first-instance judgment is closed and an appeal is made | — | — | October 24,2018 | Announcement on Receiving Civil Complaint on October 24, 2018;On February 20, 2019, Announcement on Reply to Shenzhen Stock Exchange's Letter of Concern(Announcement No.::2019-019); |
The full text of the 2018 annual report on April 30, 2019; Announcement on the Progress of Major Litigation and Arbitration Matters on June 14, 2019 (Announcement No.: 2019-075). | |||||||
Loan contract dispute case with Zhongjiang International Trust Co., Ltd. | 32,738.68 | No | The judgment is given and the case is closed. | — | Under enforcement | September 29,2018 | Announcement on Receiving Notice of Early Maturity of Debt on September 29, 2018 ;Announcement on Receiving Civil Complaint on November 10, 2018;On February |
20, 2019, Announcement on Reply to Shenzhen Stock Exchange's Letter of Concern(Announcement No.::2019-019) ; The full text of the 2018 annual report on April 30, 2019; Announcement on the Progress of Major Litigation and Arbitration Matters on June 14, 2019 (Announcement No.: 2019-075). | |||||||
Loan dispute case with China Railway Trust Co., Ltd. | 2,140.87 | No | The enforcement verdict has been received. | — | In commission | February 13,2019 | Announcement on Receiving <Civil Complaint> and <Notice |
of Advance Mediation> on February 13, 2019; On February 20, 2019, Announcement on Reply to Shenzhen Stock Exchange's Letter of Concern(Announcement No.::2019-019) ;The full text of the 2018 annual report on April 30, 2019 | |||||||
Financial loan contract dispute case with Shenzhen Branch of Shanghai Pudong Development Co., Ltd. | 7,017.76 | No | — | Under enforcement | February 13,2019 | Announcement on Receiving <Civil Complaint> and <Notice of Advance Mediation> on February 13, 2019; On February |
20, 2019, Announcement on Reply to Shenzhen Stock Exchange's Letter of Concern(Announcement No.::2019-019); The full text of the 2018 annual report on April 30, 2019; Announcement on the Progress of Major Litigation and Arbitration Matters on June 14, 2019 (Announcement No.: 2019-075) | |||||||
Financial loan contract dispute case of Shenzhen Branch of China Minsheng Bank | 10,164.09 | No | No court session has been held yet | — | — | February 13,2019 | Announcement on Receiving <Civil Complaint> and <Notice |
of Advance Mediation> on February 13, 2019; On February 20, 2019, Announcement on Reply to Shenzhen Stock Exchange's Letter of Concern(Announcement No.::2019-019) | |||||||
Enforcement case with Beijing Zhongguancun Sci-tech Financing Guaranty Co., Ltd. | 736.1 | No | Enforcement. | — | In commission | February 13,2019 | Announcement on Receiving <Civil Complaint> and <Notice of Advance Mediation> on February 13, 2019; On February 20, 2019, Announcement on Reply to Shenzhen Stock Exchange |
's Letter of Concern(Announcement No.::2019-019) | |||||||
Sales contract dispute case with Jieyang Fangyuan Stone Co., Ltd. | 489.33 | No | Awaiting judgment | — | — | February 13,2019 | Announcement on Receiving <Civil Complaint> and <Notice of Advance Mediation> on February 13, 2019; On February 20, 2019, Announcement on Reply to Shenzhen Stock Exchange's Letter of Concern(Announcement No.::2019-019) |
Installation contract dispute case with lvmeiyi Environmental Construction Group Co., Ltd. | 1,412.36 | No | Awaiting judgment | — | — | February 13,2019 | Announcement on Receiving <Civil Complaint> and <Notice of |
Advance Mediation> on February 13, 2019; On February 20, 2019, Announcement on Reply to Shenzhen Stock Exchange's Letter of Concern(Announcement No.::2019-019); The full text of the 2018 annual report on April 30, 2019 | |||||||
Contract of hired work dispute case with Shanghai Disheng Wood Co., Ltd. | 219.97 | No | Waiting for the judgment of first instance | — | Under enforcement | February 13,2019 | Announcement on Receiving <Civil Complaint> and <Notice of Advance Mediation> on February 13, 2019; On February 20, 2019, |
n Matters on July 22, 2019 (Announcement No.: 2019-091) | |||||||
Loan dispute case with Henan No.1 Thermal Power Construction Co., Ltd. | 4,717.75 | No | The first-instance verdict was closed | — | Under enforcement | February 19,2019 | Announcement on Receiving <Civil Complaint>, <Arbitration Notice> and <Notice of Enforcement> on February 19, 2019; On February 20, 2019, Announcement on Reply to Shenzhen Stock Exchange's Letter of Concern(Announcement No.::2019-019) ; Announcement on the Progress |
of Major Litigation and Arbitration Matters on April 19, 2019 (Announcement No.: 2019-036); The full text of the 2018 annual report on April 30, 2019; Announcement on the Progress of Major Litigation and Arbitration Matters on June 14, 2019 (Announcement No.: 2019-075); | |||||||
Contract dispute case with Gome Cinda Factoring Co., Ltd. | 4,163.7 | No | The case is closed through mediation | — | Under enforcement | February 19,2019 | Announcement on Receiving <Civil Complaint>, <Arbitration Notice> |
2019-091) | |||||||
Loan contract dispute case with Li Shaoxiong | 5,860.92 | No | The verdict is closed | — | — | February 19,2019 | Announcement on Receiving <Civil Complaint>, <Arbitration Notice> and <Notice of Enforcement> on February 19, 2019; On February 20, 2019, Announcement on Reply to Shenzhen Stock Exchange's Letter of Concern(Announcement No.::2019-019); The full text of the 2018 annual report on April 30, 2019; Announcement on the |
Progress of Major Litigation and Arbitration Matters on May 8, 2019 (Announcement No.: 2019-050) | |||||||
Enforcement case with Bairui Trust Co., Ltd. | 30,736.58 | No | The enforcement verdict has been received. | — | Under enforcement | February 19,2019 | Announcement on Receiving <Civil Complaint>, <Arbitration Notice> and <Notice of Enforcement> on February 19, 2019; On February 20, 2019, Announcement on Reply to Shenzhen Stock Exchange's Letter of Concer(Announcement No.::2019 |
-019); The full text of the 2018 annual report on April 30, 2019; Announcement on the Progress of Major Litigation and Arbitration Matters on July 22, 2019 (Announcement No.: 2019-091) | |||||||
Dispute case over Lease Agreement of construction equipment with Zhejiang Huatie Construction Support Technology Co., Ltd. | 979.05 | No | The first-instance judgment is closed and an appeal is made | — | — | February 19,2019 | Announcement on Receiving <Civil Complaint>, <Arbitration Notice> and <Notice of Enforcement> on February 19, 2019; On February 20, 2019, Announce |
ment on Reply to Shenzhen Stock Exchange's Letter of Concern(Announcement No.::2019-019); The full text of the 2018 annual report on April 30, 2019 | |||||||
Construction contract dispute case with Wang Kaixiang | 304.41 | No | Waiting for the judgment of first instance | — | — | February 19,2019 | Announcement on Receiving <Civil Complaint>, <Arbitration Notice> and <Notice of Enforcement> on February 19, 2019; On February 20, 2019, Announcement on Reply to Shenzhen Stock Exchange |
2019-075) | |||||||
Labor subcontract dispute case with Hunan Zhongjian Construction Labor Co., Ltd. | 251.57 | No | An award is issued upon arbitration and the case is closed. | — | — | February 19,2019 | Announcement on Receiving <Civil Complaint>, <Arbitration Notice> and <Notice of Enforcement> on February 19, 2019; On February 20, 2019, Announcement on Reply to Shenzhen Stock Exchange's Letter of Concern(Announcement No.::2019-019);Announcement on the Progress of Major Litigation and Arbitration Matters on April 19, 2019 |
(Announcement No.: 2019-036); The full text of the 2018 annual report on April 30, 2019 | |||||||
Financial loan contract case with SPD Bank .Beijing Branch | 7,977.89 | No | Waiting for the judgment of first instance | — | — | March 1,2019 | The full text of the 2018 annual report on April 30, 2019; Announcement on Receiving <Civil Complaint> on March 1, 2019 |
Financial loan contract case with Shanghai Bank .Beijing Branch | 27,411.99 | No | Nolle prosequi and case closed | — | — | March 1,2019 | Announcement on Receiving <Civil Complaint> on March 1, 2019; The full text of the 2018 annual report on April 30, 2019; Announcement on |
the Progress of Major Litigation and Arbitration Matters on July 3, 2019 (Announcement No.: 2019-083). | |||||||
Financial loan contract case with Bank of China.Shenzhen Futian | 7,934.39 | No | Awaiting judgment | — | — | March 1,2019 | Announcement on Receiving <Civil Complaint> on March 1, 2019; The full text of the 2018 annual report on April 30, 2019; Announcement on the Progress of Major Litigation and Arbitration Matters on July 3, 2019 (Announcement No.: 2019-083 |
). | |||||||
Financial loan contract case with Zhejiang Commerce Bank .Shenzhen Branch | 20,000 | No | The case is closed through mediation | — | Under enforcement | March 1,2019 | Announcement on Receiving <Civil Complaint> on March 1, 2019; The full text of the 2018 annual report on April 30, 2019; Announcement on the Progress of Major Litigation and Arbitration Matters on July 3, 2019 (Announcement No.: 2019-083); Announcement on the Progress of Major Litigation and Arbitration Matters on July 22, 2019 (Announc |
ement No.: 2019-083) | |||||||
Financial loan contract case with Hengfeng Bank .Fuzhou Branch | 10,024.5 | No | Awaiting judgment | — | — | April 8,2019 | Announcement on Receiving <Civil Complaint> and <Application for Arbitration> on April 8, 2019; The full text of the 2018 annual report on April 30, 2019; Announcement on the Progress of Major Litigation and Arbitration Matters on July 3, 2019 (Announcement No.: 2019-083) |
Financial loan contract case with SPD Bank Beijing Branch | 6,100 | No | Awaiting judgment | — | — | April 8,2019 | Announcement on Receiving <Civil Complain |
t> and <Application for Arbitration> on April 8, 2019; The full text of the 2018 annual report on April 30, 2019 | |||||||
Financial loan contract case with Hunan Jinjude Construction Investment Co., Ltd. | 502 | No | In the first instance trial | — | — | April 8,2019 | Announcement on Receiving <Civil Complaint> and <Application for Arbitration> on April 8, 2019; The full text of the 2018 annual report on April 30, 2019 |
Dispute case over decoration and renovation contract with Xu Zhigui | 104.07 | No | In the first instance trial | — | — | April 8,2019 | Announcement on Receiving <Civil Complaint> and <Application for Arbitration> on April 8, |
2019; The full text of the 2018 annual report on April 30, 2019 | |||||||
Financial loan contract case with Jiujiang Bank .Guangzhou Haizhu Branch | 10,223.39 | No | Awaiting judgment | — | — | April 8,2019 | Announcement on Receiving <Civil Complaint> and <Application for Arbitration> on April 8, 2019; The full text of the 2018 annual report on April 30, 2019 ; Announcement on the Progress of Major Litigation and Arbitration Matters on July 3, 2019 (Announcement No.: 2019-083) |
Financial loan contract case with Baoshang Bank.Shenzhen Branch | 20,451.46 | No | The first-instance judgment is closed and an appeal is made | — | — | April 13,2019 | Announcement on Receiving <Civil Complaint> plication > on April 13, 2019; The full text of the 2018 annual report on April 30, 2019 ; Announcement on the Progress of Major Litigation and Arbitration Matters on July 3, 2019 (Announcement No.: 2019-083) |
Enterprise borrowing case with Zhejiang Changxing Jinkong Holding Co., Ltd. | 10,000 | No | No court session has been held yet | — | — | May 11,2019 | Announcement on Receiving <Civil Complaint> plication > on May 11, 2019(Ann |
ouncement No.2019-054) | |||||||
Financial loan contract case with Shenzhen Rural Commercial Bank .Futian Branch | 4,522.8 | No | No court session has been held yet | — | — | May 21,2019 | Announcement on Receiving <Civil Complaint> plication > on May 21, 2019(Announcement No.2019-061) |
Notarized creditor's rights documen case with Beijing Culture and Technology financing guarantee Co., Ltd. | 15,843.37 | No | Under enforcement | — | Under enforcement | June 14,2019 | Announcement on Receiving < Notice of execution > plication > on June 14, 2019(Announcement No.2019-076) |
Lease contract dispute case with China Seventeenth Metallurgical Group Co., Ltd. | 3,442.86 | No | No court session has been held yet | — | — | August 3,2019 | Announcement on Receiving <Civil Complaint> plication > on August 3, 2019(Ann |
ouncement No.2019-096) | |||||||
Financial loan contract case with Zhuhai Huarun Bank .Shenzhen Branch | 10,355.44 | No | No court session has been held yet | — | — | August 3,2019 | Announcement on Receiving <Civil Complaint> plication > on August 3, 2019(Announcement No.2019-096) |
Right of recourse dispute case with Shenzhen Yi'an Factoring Co., Ltd. | 1,048.45 | No | Waiting for the judgment of first instance | — | — | May 8,2019 | Announcement on Receiving <Civil Complaint> plication > on May 8, 2019(Announcement No.2019-051) |
646.76 | No | Nolle prosequi and case closed | — | — | May 8,2019 | Announcement on Receiving <Civil Complaint> plication > on May 8, 2019(Announcemen |
t No.2019-051) | |||||||
Case of Dispute over Construction Contract of Sino Great Wall International Engineering Co., Ltd. v. Zhuhai Cuilin Decoration engineering co., Ltd. , Guangzhou Zhujiang Qiaodu Real Estate Co., Ltd.and Shenzhen Haibai Decoration Engineering Co., Ltd. | 567.19 | No | The case is closed through mediation | — | — | May 8,2019 | Announcement on Receiving <Civil Complaint> plication > on May 8, 2019(Announcement No.2019-051) |
Creditor's Subrogation Dispute with Xinbang Construction Group Co., Ltd. | 397.62 | No | Awaiting judgment | — | — | May 8,2019 | Announcement on Receiving <Civil Complaint> plication > on May 8, 2019(Announcement No.2019-051) |
Dispute case of contract of sale and purchase with Shenzhen Dingcheng Construction | 263.56 | No | The verdict is closed | — | Under enforcement | May 8,2019 | Announcement on Receiving <Civil Complaint> |
Material Co., Ltd. | plication > on May 8, 2019(Announcement No.2019-051) | ||||||
Case of contract dispute over Decoration with Sino,Great Wall International Engineering Co., Ltd. | 233.71 | No | The verdict is closed | — | — | May 8,2019 | Announcement on Receiving <Civil Complaint> plication > on May 8, 2019(Announcement No.2019-051) |
Construction Contract Subcontract Dispute Case With Shandong GRAD Group Co. Ltd. | 185.97 | No | Awaiting judgment | — | — | May 8,2019 | Announcement on Receiving <Civil Complaint> plication > on May 8, 2019(Announcement No.2019-051) |
Contract Dispute Case with Dongguan Yangcheng Stainless steel Product Co., Ltd. | 178.81 | No | Awaiting judgment | — | — | May 8,2019 | Announcement on Receiving <Civil Complaint> plication |
> on May 8, 2019(Announcement No.2019-051) | |||||||
Bai Shuogang Labor Dispute Case | 153.98 | No | The verdict is closed | — | Execution completed | May 8,2019 | Announcement on Receiving <Civil Complaint> plication > on May 8, 2019(Announcement No.2019-051) |
Labor Dispute between Feng Guoqiang , Jin Xin, Wang Jianbo, Wang Yong, Cai Changming , Wang Zhiquan, Wang Li, Fang Yan, Yang Ting, Dong Qing, Shang Xiaojuan, Du Yanli, Li Hongyan, Li Qian, Zhang Weixuan, Niu and Niu Youmiao | 145.45 | No | Mediation is closed and Wang Jianbo withdraws the lawsuit | — | Under implementation, and part of the implementation has been completed | May 8,2019 | Announcement on Receiving <Civil Complaint> plication > on May 8, 2019(Announcement No.2019-051) |
Labor and Personnel Dispute of Guo Xiaoli , Li | 131.37 | No | The case is closed through mediation | — | — | May 8,2019 | Announcement on Receiving <Civil |
Hongshan, Feng Mingzeng, Li Guangyu, Liu Haixiang, Chen Honghua, Peng Junxiang, Dong Jihong, Wang Fengjun, Zhang Haichao, Xu Jiao, Xia Guohong and and Xiao Meiling | Complaint> plication > on May 8, 2019(Announcement No.2019-051) | ||||||
Housing lease contract dispute case with Sino,Great Wall International Engineering Co., Ltd. | 120 | No | Sino,Great Wall International Engineering Co., Ltd. | — | — | May 8,2019 | Announcement on Receiving <Civil Complaint> plication > on May 8, 2019(Announcement No.2019-051) |
Dispute over contract of sale and purchase case with Zhejiang Jianlifang Woods Co., Ltd. | 116.25 | No | The verdict is closed | — | Under enforcement | May 8,2019 | Announcement on Receiving <Civil Complaint> plication > on May 8, 2019(Announcement No.2019-051) |
Contract Dispute with Jinhai | 112.18 | No | The judgment | — | — | May 8,2019 | Announcement on |
Xinyuan Electric Jiangsu Co., Ltd. | is closed and China Construction appealed | Receiving <Civil Complaint> plication > on May 8, 2019(Announcement No.2019-051);Announcement on the Progress of Major Litigation and Arbitration Matters on July 3, 2019 (Announcement No.: 2019-083) |
109.4 | No | The case is closed through mediation | — | — | May 8,2019 | Announcement on Receiving <Civil Complaint> plication > on May 8, 2019(Announcement No.2019-051) |
Jun | |||||||
Dispute over contract of sale and purchase case with Fujian Nanan Feiwang Stone handicrafts co., Ltd. | 106.73 | No | Awaiting judgment | — | — | May 8,2019 | Announcement on Receiving <Civil Complaint> plication > on May 8, 2019(Announcement No.2019-051) |
Dispute over the right of claim for the return of Bill interests with Sino,Great Wall International Engineering Co., Ltd. | 100 | No | The case is closed through mediation | — | — | May 8,2019 | Announcement on Receiving <Civil Complaint> plication > on May 8, 2019(Announcement No.2019-051) |
Construction Contract Dispute Case with Beijing Beipao Light steel building materials co., Ltd. | 857.73 | No | No court session has been held yet | — | — | May 11,2019 | Announcement on Receiving <Civil Complaint> plication > on May 11, 2019(Announcement No.2019-054) |
Contract Dispute Case with Jiangsu Huaiyin Construction Engineering Group Co., Ltd. | 130.49 | No | The verdict is closed | — | — | May 11,2019 | Announcement on Receiving <Civil Complaint> plication > on May 11, 2019(Announcement No.2019-054); Announcement on the Progress of Major Litigation and Arbitration Matters on July 3, 2019 (Announcement No.: 2019-083) |
Contract dispute case with Dongguan Kema Decorative furniture co., Ltd. | 86.63 | No | Under enforcement | — | Under enforcement | May 11,2019 | Announcement on Receiving <Civil Complaint> plication > on May 11, 2019(Announcement No.2019-054) |
Lei Hongxiang construction project contract dispute case. | 81.87 | No | Waiting for the judgment of first instance | — | — | May 11,2019 | Announcement on Receiving <Civil Complaint> plication > on May 11, 2019(Announcement No.2019-054) |
Procurement contract dispute case with Guangdong New Mingzhu Ceramic Group Co. Ltd. | 79.45 | No | Nolle prosequi and case closed | — | — | May 21,2019 | Announcement on Receiving <Civil Complaint> plication > on May 21, 2019(Announcement No.2019-061); Announcement on the Progress of Major Litigation and Arbitration Matters on July 22, 2019 (Announcement No.: 2019-091) |
Procurement contract dispute case with Beijing Jingsheng Taihua Metal Structure Co., Ltd. | 72.57 | No | The verdict is closed | — | Not yet applied for execution | May 21,2019 | Announcement on Receiving <Civil Complaint> plication > on May 21, 2019(Announcement No.2019-061) |
Contract dispute case with Guangdong Chuanghong Furniture Co., Ltd. | 364.57 | No | Awaiting judgment | — | — | June 13,2019 | Announcement on the Progress of Major Litigation and Arbitration Matters on June 13, 2019 (Announcement No.: 2019-075); |
Contract dispute case with Luode Environmental protection Technology Co., Ltd. | 163.72 | No | No court session has been held yet | — | — | June 13,2019 | Announcement on the Progress of Major Litigation and Arbitration Matters on June 13, 2019 (Announcement |
No.: 2019-075); | |||||||
Contract dispute case with Quanzhou Fengze District Yumin Trade Co., Ltd. | 149.02 | No | No court session has been held yet | — | — | June 13,2019 | Announcement on the Progress of Major Litigation and Arbitration Matters on June 13, 2019 (Announcement No.: 2019-075); |
Contract dispute case with Leihe Ouya Construction Labor subcontract co., Ltd. | 3,336.66 | No | — | — | June 27,2019 | Announcement on the Progress of Major Litigation and Arbitration Matters on June 27, 2019 (Announcement No.: 2019-080) | |
Purchase and sale contract dispute case with Beijing Zhongxing Guoji Trade Co., Ltd. | 152.66 | No | No court session has been held yet | — | — | June 27,2019 | Announcement on the Progress of Major Litigation and Arbitratio |
n Matters on June 27, 2019 (Announcement No.: 2019-080) | |||||||
Right of recourse dispute case with Guan Haihang Trade Center | 100 | No | No court session has been held yet | — | — | June 27,2019 | Announcement on the Progress of Major Litigation and Arbitration Matters on June 27, 2019 (Announcement No.: 2019-080) |
Right of recourse dispute case with Guan Haihang Trade Center | 100 | No | No court session has been held yet | — | — | June 27,2019 | Announcement on the Progress of Major Litigation and Arbitration Matters on June 27, 2019 (Announcement No.: 2019-080) |
Processing contract dispute case with Beijing | 106.32 | No | No court session has been | — | — | June 27,2019 | Announcement on the |
Gelin Yisen Trade Co., Ltd. | held yet | Progress of Major Litigation and Arbitration Matters on June 27, 2019 (Announcement No.: 2019-080) | |||||
Contract dispute case of Construction Engineering Design with Guangdong Xinchangan Construction Designing Institute Co., Ltd. | 379.62 | No | No court session has been held yet | — | — | July 3,2019 | Announcement on the Progress of Major Litigation and Arbitration Matters on July 3, 2019 (Announcement No.: 2019-083) |
Dispute case of contract of sale and purchase with Beijing Zhongxing Guoji Trade Co., Ltd. | 134.15 | No | The verdict is closed | — | Not yet applied for execution | July 22,2019 | Announcement on the Progress of Major Litigation and Arbitration Matters on July 22, 2019 (Announcement No.: 2019-091 |
) | |||||||
Dispute case of contract of sale and purchase with Guangdong New Mingzhu Ceramic Group Co. Ltd. | 82.57 | No | No court session has been held yet | — | — | July 22,2019 | Announcement on the Progress of Major Litigation and Arbitration Matters on July 22, 2019 (Announcement No.: 2019-091) |
Wang Hong construction engineering subcontracting Dispute | 232.96 | No | No court session has been held yet | — | — | July 22,2019 | Announcement on the Progress of Major Litigation and Arbitration Matters on July 22, 2019 (Announcement No.: 2019-091) |
Dispute case of contract of sale and purchase withQuanzhou Fengze Yumin Trade Co., Ltd. | 209.6 | No | No court session has been held yet | — | — | July 22,2019 | Announcement on the Progress of Major Litigation and Arbitration Matters on July |
22, 2019 (Announcement No.: 2019-091) | |||||||
Sun shuhui construction project subcontract dispute | 170.51 | No | Awaiting judgment | — | — | July 22,2019 | Announcement on the Progress of Major Litigation and Arbitration Matters on July 22, 2019 (Announcement No.: 2019-091) |
Construction contract dispute case with Haikou Xingxin Stone co., Ltd. | 179.64 | No | No court session has been held yet | — | — | August 3,2019 | Announcement on the Progress of Major Litigation and Arbitration Matters on August 3, 2019 (Announcement No.: 2019-096) |
Dispute case of contract of sale and purchase with Foshan Longmeida | 345.71 | No | No court session has been held yet | — | — | August 3,2019 | Announcement on the Progress of Major |
Stone industry co., Ltd. | Litigation and Arbitration Matters on August 3, 2019 (Announcement No.: 2019-096) |
Other legal matters
√ Applicable □ Not applicable
General information | Involved amount (Ten thousand yuan) | Provision | Progress | Decisions and effects | Execution of decisions | Disclosure date | Index to disclosed information |
Other small litigations(Among them, the amount involved by the company as the prosecutor is RMB 0) | 2,146.18 | No | — | — | — | April 30,2019 | The full text of the 2018 annual report on April 30, 2019 |
IX. Punishments and rectifications
√ Applicable □ Not applicable
Name | Type | Reasons | Type of Punishment | Conclusion (if any) | Disclosure date | Disclosure index |
Sino Great Wall Co., Ltd | Other | As the company is suspected of violating laws and regulations in information disclosure, according to the relevant provisions of the Securities | An investigation is filed or an administrative punishment is imposed by the China Securities Regulatory Commission | As of the disclosure date of this announcement, the company has not yet received the China Securities Regulatory Commission's | October 19,2018 | (www.cninfo.com.cn)(Announcement No.:2018-121) |
Law of the People's Republic of China, the CSRC has decided to initiate an investigation in the company. | concluding comments or decisions on relevant investigation matters. | |||||
Sino Great Wall Co., Ltd | Other | The Shenzhen Supervision Bureau of China Securities Regulatory Commission will conduct on-site inspections of the company from May 2018 onwards | Be investigated by a competent authority | Decision on Administrative Supervision Measures of Shenzhen Supervision Bureau of China Securities Regulatory Commission ([2019] No.11) | March 7,2019 | (www.cninfo.com.cn)(Announcement No.:2019-022) |
Chen Lue, Tian Wei, Tang Xianyong, Cui Hongli, Yang Chunling | Senior executives | The Shenzhen Supervision Bureau of China Securities Regulatory Commission will conduct on-site inspections of the company from May 2018 onwards | Be investigated by a competent authority | Decision on Administrative Supervision Measures of Shenzhen Supervision Bureau of China Securities Regulatory Commission [2019] No.12 [2019]No.13 [2019]No.14 [2019]No.15 and [2019]No.16 | March 7,2019 | (www.cninfo.com.cn)(Announcement No.:2019-022) |
Chen Lue | Director | The Shenzhen Supervision Bureau of China | Be investigated by a competent authority | Decision on Administrative Supervision Measures of | March 7,2019 | (www.cninfo.com.cn)(Announcement |
Securities Regulatory Commission will conduct on-site inspections of the company from May 2018 onwards | Shenzhen Supervision Bureau of China Securities Regulatory Commission ([2019] No.12) | No.:2019-022) |
Explanation on Rectification
√Applicable □Not applicable
On October 18, 2018, the company received the notice of investigation issued by the China Securities RegulatoryCommission (No: JDC Zi No. 18041). As the company is suspected of violating laws and regulations ininformation disclosure, according to the relevant provisions of the Securities Law of the People's Republic ofChina, the CSRC has decided to initiate an investigation in the company. On March 6, 2019, the companyreceived the Shenzhen Securities Regulatory Bureau's Decision on Administrative Supervision Measures (No2019] 11, No. [2019] 12 , No. [2019] 13 ,No. [2019] 14 , No. [2019] 15, and No. [2019] 16) showing that theShenzhen Securities Regulatory Bureau had carried out on-site inspection of the company since May 2018, andthe Shenzhen Securities Regulatory Bureau had filed a case for investigation on the illegal disclosure of relevantinformation found in the inspection; In addition, through inspection, it is also found that the company had thefollowing problems "I. The income cost accounting is not standardized, and expenses are charged throughout-of-account fund accounts; II. It did not disclose the changes in major items in a timely manner, the preparationof performance forecasts and performance report is not prudent; III. It has capital exchanges of no real businessfoundation with a number of companies, and illegal foreign financial assistance; IV. The relevant managementsystem 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, thecompany's relevant directors, senior management personnel, and issue warning letters to Mr. Chen Lue, Mr. TianWei, Mr. Tang Xianyong, Ms. Cui Hongli, Ms. Yang Chunling (see Announcements No. 2018-121, and 2019-022In response to the relevant problems found during the inspection against the company, the company has madeserious rectification in accordance with the matters involved in the Decision on Taking Corrective Measuresagainst Sino Great Wall Co., Ltd. ([2019] No.11). Please refer to the company's Rectification Report on IssuesRelated 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 detailsconcerning 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 independentagency to conduct special inspections on the problems of NPP-0057 in Xingang, Qatar, Cambodia Refinery and NAGA Casino PhaseII 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-mentionedprojects and issue an independent verification report [YK A ZS Zi (2019) No. 0057]. For details, please refer tothe Independent Verification Report of Sino Great Wall Co., Ltd. published by the company on the same day onJuchao Information Network (www.cninfo.com.cn).As of the disclosure date of this announcement, the company has not yet received the China Securities RegulatoryCommission's concluding comments or decisions on relevant investigation matters. The company shall perform its
information disclosure obligations in accordance with the relevant provisions of the Listing Rules of ShenzhenStock 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 intothe list of defaulters due to breach by the Beijing Second Intermediate People's Court due to the dispute withShaanxi 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 thelist 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 tothe 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 itswholly-owned subsidiary Sino International Engineering Co., Ltd. were incorporated into the list of defaulters bythe 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 intothe list by the Haidian District People's Court of Beijing for notarizing the enforcement of creditor's rightsdocuments 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 company'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 ofdefaulters due to a dispute over the internet service contract with Shanghai Ctrip Hongrui International TravelService Co., Ltd. and Shanghai Huacheng Southwest International Travel Service Co., Ltd. Currently, the case isin enforcement.
7. 2. Due to disputes over bills with Tongchuan New District Hengxin Building Materials Co., Ltd., Xi'an BihuiRoad and Bridge Engineering Co., Ltd. and Jiaozuo Junpeng Coal Co., Ltd., the company was incorporated byShenzhen Longgang District People's Court into the list of defaulters. At present, the above cases are all in theprocess 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 listof 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, ChenLue, as the guarantor and counter-guarantor, assumed joint and several guarantee liability for the above debts andwas incorporated into the list of defaulters by the Beijing Second Intermediate People's Court. Currently, the caseis 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 intothe list of defaulters by the Chengdu Intermediate People's Court. Currently, the case is in enforcement.
3) Chen Lue was incorporated into the list of defaulters by Tongzhou District People's Court of Beijing for adispute 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 ZhongguancunSci-tech Financing Guaranty Co., Ltd., Chen Lue, as the guarantor and counter-guarantor, assumed joint andseveral guarantee liabilities for the debts and was incorporated into the list of defaulters by the Haidian DistrictPeople'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 theguarantor and counter-guarantor, assumed joint guarantee liability for the debt and was incorporated into the listof 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 AssetManagement (Shanghai) Co., Ltd., Chen Lue as the counter guarantor assumed a joint surety bond liability for thedebt and was incorporated by Beijing Third Intermediate People's Court into the list of defaulters. Currently, thecase 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, 2018respectively.7)In the dispute over private loans between Chen Changfeng, Sheng Xiaomei and Zhao Jirong, Chen Lv and SinoGreat Wall Investment (Beijing) Co., Ltd., as guarantors, were jointly and severally liable for the debts, and werelisted by the Tongzhou District People's Court of Beijing into the list of defaulters. At present, the case ends thisexecution.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 Beijinginto 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 adispute 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 werefrozen and waited for being frozen, attributable to a property preservation caused by his assumption of personaljoint guarantee for a subsidiary to carry out business financing.For more information, please refer to Announcement on Waiting to Freeze Shares of the Holding Shareholder2018-112, 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 andthe 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
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 relevantannouncement.On December 24, 2015, the company as the asset trustor of the ESOP asset management plan, together with theasset manager- Xingzheng Securities Asset Management Co.,Ltd and the asset trustee- China Everbright BankCo.,Ltd signed the contract of No.57 Xing Zheng Zi Guan Xin Zhong Assets Management Contract of theCollection Assets Management Plan which concretely explained and stipulated the information included the basicinformation of the collection plan, participating in and withdrawal of the collection plan, guarantee, classificationof the collection plan, the management methods and the management rights of the customer assets in thecollection plan, the establishment of the collection plan, the expenses of the collection plan, the proceeds and itsdistribution of the collection plan, investment philosophy and investment strategy, investment decision-makingand 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 theshare-purchasing by means of buying in the secondary security market, of which the average position price isRMB44.7578 per share, the total purchase quantity is 833,187 shares which account for 0.1864% of thecompany's total share capital, and the total turnover is RMB37,291,630. The lock-up period of the sharespurchased under the plan is 12 months commenced from the date of this announcement.Please refer to thepublished 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 November21, 2017, the company held the twenty-sixth meeting of the seventh board of directors, which reviewed andadopted the “Proposal on the one-year extension of the company's first phase ESOP”, and according to thevoting result of the holders’ meeting, the board agreed to extend the duration of the company's first phase ESOPby one year, meaning that the ESOP can sell shares within the afore-said extension of one year (until November23, 2018).If the shares are not sold before the expiration of the extended one year, a further meeting of theholders and the meeting of the board of directors can be convened two months before the expiration to considerthe follow-up matters. .Please refer to the published on November 22, 2017 (www.cninfo.com.cn) on therelevant announcement.On November 20, 2018, attendees of the holders' meeting with 2/3 of shares agreed and adopted the Proposal onExtending the Company's First Staff Shareholding Plan for One Year. On November 21, 2018, the Companyconvened the second meeting of the eighth Board of Directors, deliberating and adopting the Proposal onExtending 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., theformer expiry date was extended to one year later--November 23, 2019. In the duration, once the Company'sshares 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 Directorsmay be convened 2 months before the expiration to deliberate relevant following matters. Please refer to thepublished on November 22, 2018 (www.cninfo.com.cn) on the relevant announcement.
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 otherrelated 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.
(2)Contracting
□Applicable √ Not applicable
No such cases in the reporting period.
(3)Leasing
√Applicable □ Not applicable
NotesDuring the reporting period, the company's leasing expenses were mainly the company’s office space and staffquarters’ capital expenditures.
The company's profit and loss has reached more than 10% of the company's total profit during the reportingperiod
□ Applicable √ Not applicable
Nil
2.Guarantees
√ Applicable □ Not applicable
(1)Guarantees
Ten thousand yuan
External Guarantee (Exclude controlled subsidiaries) | ||||||||
Name of the Company | Relevant disclosure date/No. of the guaranteed amount | Amount of Guarantee | Date of happening (Date of signing agreement) | Actual mount of guarantee | Guarantee type | Guarantee term | Complete implementation or not | Guarantee for associated parties (Yes or no) |
Guarantee of the company for its subsidiaries | ||||||||
Guarantee provided to | Amount of guarantee and date of disclosure | Amount of the guarantee | Actual date of occurring (signing date of agreements | Actual amount of guarantee | Type of guarantee | Term | Completed or not | Related guarantee |
Sino International | May 28,2019 | 27,196.18 | May 10,2019 | 27,196.18 | The joint liability | 1 year | No | Yes |
guaranty | ||||||||
Sino International | May 20,2017 | 12,000 | February 12,2018 | 12,000 | The joint liability guaranty | 1 year | No | Yes |
Sino International | April 4,2019 | 7,000 | March 31,2019 | 7,000 | The joint liability guaranty | 1 year | Yes | Yes |
Sino International | March 29,2018 | 11,990 | August 22,2018 | 11,990 | The joint liability guaranty | 1 year | No | Yes |
Sino International | May 20,2017 | 40,000 | July 25,2017 | 40,000 | The joint liability guaranty | 1 year | No | Yes |
Sino International | May 20,2017 | 22,000 | June 30,2017 | 22,000 | The joint liability guaranty | 1 year | No | Yes |
Sino International | May 20,2017 | 20,000 | October 18,2017 | 20,000 | The joint liability guaranty | 1 year | No | Yes |
Sino International | May 20,2017 | 10,000 | November 22,2017 | 10,000 | The joint liability guaranty | 1 year | No | Yes |
Sino International | May 20,2017 | 10,000 | November 30,2017 | 10,000 | The joint liability guaranty | 1 year | No | Yes |
Sino International | March 31,2016 | 8,400 | March 31,2017 | 8,400 | The joint liability guaranty | 30 months | No | Yes |
Sino International | May 20,2017 | 8,000 | February 13,2018 | 8,000 | The joint liability guaranty | 1 year | No | Yes |
Sino International | May 20,2017 | 20,000 | December 28,2017 | 20,000 | The joint liability guaranty | 1 year | No | Yes |
Sino International | June 21,2019 | 8,000 | May 29,2019 | 8,000 | The joint liability guaranty | 1 year | No | Yes |
Wuhan Commercial Worker Hospital | March 31,2016 | 10,889.81 | January 18,2017 | 10,889.81 | The joint liability guaranty | 3 years | No | Yes |
Sino Great Wall Jianye | March 29,2018 | 3,500 | September 30,2018 | 3,500 | The joint liability guaranty | 1 year | No | Yes | |
Sino Great Wall Medical Investment Management Co., Ltd. | April 4,2019 | 3,200 | December 21,2018 | 3,200 | The joint liability guaranty | 1 year | No | Yes | |
Sino Great Wall Medical Investment Management Co., Ltd. | April 4,2019 | 3,400 | March 11,2019 | 3,400 | The joint liability guaranty | 1 year | No | Yes | |
Total of guarantee for subsidiaries approved in the Period (B1) | 800,000 | Total of actual guarantee for subsidiaries in the Period (B2) | 225,575.99 | ||||||
Total of guarantee for subsidiaries approved at Period-end (B3) | 800,000 | Total of actual guarantee for subsidiaries at Period-end (B4) | 225,575.99 | ||||||
Guarantee of the subsidiaries for the controlling subsidiaries | |||||||||
Name of the Company guaranteed | Relevant disclosure date/No. of the guaranteed amount | Amount of guarantee | Date of happening (Date o signing agreement) | Actual mount of guarantee | Guarantee type | Guarantee term | Complete implementation or not | Guarantee for associated parties (Yes or no) | |
Total of Company’s guarantee(namely total of the large three aforementioned) | |||||||||
Total of guarantee in the Period (A1+B1+C1) | 800,000 | Total of actual guarantee in the Period(A2+B2+C2) | 225,575.99 | ||||||
Total of guarantee at Period-end(A3+B3+C3) | 800,000 | Total of actual guarantee at Period-end (A4+B4+C4) | 225,575.99 | ||||||
The proportion of the total amount of actually guarantee in the net assets of the company(A4+B4+C4) | -190.46% | ||||||||
Including: |
Amount of guarantee for shareholders, actual controller and its associated parties(D) | 0 |
The debts guarantee amount provided for the Guaranteed parties whose assets-liability ratio exceed 70% directly or indirectly(E) | 225,575.99 |
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 liquidating responsibilities for undue guarantees (If any) | Nil |
Explanations on external guarantee against regulated procedures (If any) | Nil |
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 environmentalprotection departmentNoListed companies and their subsidiaries are not key pollutant discharging units announced by environmentalprotection 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.
(2) Annual precision poverty alleviation
(3) Accuracy of poverty alleviation
Index | Measurement unit | Quantity / Status |
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 Acquisition of Shares of UPL Laos Co., Ltd., according to which, UPL(MALAYSIA) SDN. BHD. (hereinafter referred to as UPL Malaysia) 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 onLaos Vientiane Dongphosy Special Economic Zone Project, UPL Laos entered into a franchise agreement for50+40 years with Laos Government by cash contribution of USD 10 million and advance payment of USD 20million for project construction put together as the consideration of acquisition and took full charge of matters ofdevelopment of Dongphosy as the franchisee to Dongphosy Special Economic Zone (refer to the Company'sAnnouncement 2018-020 and 021). On June 12, 2018, the Company agreed with UPL Malaysia on transfer of10% of shares, hence the Company's shareholding ratio rose to 40%. Whereas the Company is experiencing afinancial difficulty at the moment and has failed to perform duties of advance payment and construction in theequity agreement and duties in the loan agreement, the Malaysian shareholder UPL Malaysia sent a latter inrequest for a return of equity and filed an arbitration to Hong Kong International Arbitration Centre on the disputeof 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” issuedby OXLEYEMERALD (CAMBODIA) CO., LTD, and Sino International won the bid for the “Mekong RiverVilla Project” in Cambodia, with the bid amount of USD 46.5 million (equivalent to RMB 295 million) (See the
2018-035 announcement of the Company for details). As of the end of the reporting period, most of the on-sitepiling construction work has been completed, and the relevant civil work has been in progress. As of thedisclosure date of this report, both parties have agreed to terminate the contract and the project is in the process ofsettlement.
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 ChongqingCircum-Yinglonghu Industrial Co., Ltd. (hereinafter referred to as Party A) and 7 village committees concerned atthe project location (hereinafter referred to as Party C). The registered capital of the Project Company was RMB125 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 GreatWall contributed RMB 100 million by currency, accounting for 80% of the registered capital; Party C subscribedRMB 1.25 million by currency or contribution in kind, accounting for 1% of the registered capital (refer to theCompany's Announcement 2018-104 and 105). At the moment, the Project Company has been registered andproject planning and design are underway.
4. The company held the sixth meeting of the eighth Board of Directors on April 12, 2019, deliberated and passedthe Proposal on Adjusting the Company's Organizational Structure and agreed to adjust the operating organizationand business structure of the company's headquarters. The company will implement a division system by sectionsand 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 carebusiness sector (division). After this adjustment, the organizational structure of the company's headquarters is asfollows: eight functional departments and offices, including the comprehensive office, the finance department andthe human resources department, as well as the above-mentioned four operating institutions (see the company'sannouncement 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 InvestmentGroup Co., Ltd. (hereinafter referred to as "Nanbu Xincheng Group"), and signed a Letter of Intent forCooperation on the judicial reorganization to be carried out by the company. Nanbu Xincheng Group has reacheda preliminary intention to participate as the reorganizing party and promote the reorganization process of thecompany. If the judicial reorganization can be successfully completed, Nanbu Xincheng Group will become thecontrolling shareholder of the company, and Mr. Chen Lv will become the second largest shareholder of thecompany (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 toformally carry out due diligence. Nanbu Xincheng Group will decide whether to further promote cooperationbased on the results of due diligence.
6. On July 24, 2019, the company received the application for reorganization submitted by the creditor BihuiRoad and Bridge served by the court. Bihui Road and Bridge applied to the court for reorganization of thecompany on the grounds that the company was unable to repay the debts due and obviously lacked solvency. As ofthe disclosure date of this report, the company has not received the court's ruling on Bihui Road and Bridge'sapplication for reorganization of the company. Whether the application of creditor Bihui Road and Bridge can beaccepted by the court and whether the company will enter the reorganization process are still with majoruncertainty (see Announcement No 2019-092 of the company for details).
XVII. Material events of subsidiaries
□ Applicable √ Not applicable
VI. Change of share capital and shareholding of Principal Shareholders
I.Changes in share capital
1. Changes in share capital
In shares
Before the change | Increase/decrease(+,-) | After the Change | |||||||
Amount | Proportion | Share allotment | Bonus shares | Capitalization of common reserve fund | Other | Subtotal | Quantity | Proportion | |
I. Share with conditional subscription | 438,857,067 | 25.84% | -304,969 | -304,969 | 438,552,098 | 25.82% | |||
3.Other domestic shares | 438,857,067 | 25.84% | -304,969 | -304,969 | 438,552,098 | 25.82% | |||
Domestic natural person shares | 438,857,067 | 25.84% | -304,969 | -304,969 | 438,552,098 | 25.82% | |||
II. Shares with unconditional subscription | 1,259,387,944 | 74.16% | 304,969 | 304,969 | 1,259,692,913 | 74.18% | |||
1.Common shares in RMB | 995,584,713 | 58.62% | 304,969 | 304,969 | 995,889,682 | 58.64% | |||
2.Foreign shares in domestic market | 263,803,231 | 15.53% | 0 | 0 | 263,803,231 | 15.53% | |||
III. Total of capital shares | 1,698,245,011 | 100.00% | 0 | 0 | 1,698,245,011 | 100.00% |
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
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable tocommon 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 securityregulators
□ Applicable √Not applicable
2. Change of shares with limited sales condition
√ Applicable □Not applicable
In shares
Shareholder Name | Initial Restricted Shares | Number of Unrestricted Shares This Term | Number of Increased Restricted Shares This Term | Restricted Shares in the End of the Term | Reason for Restricted Shares | Date of Restriction Removal |
Chen Lue | 55,995,934 | 0 | 0 | 55,995,934 | The major asset restructuring and the issue of shares to purchase assets and raise matching funds | -- |
Chen Lue | 381,594,983 | 0 | 0 | 381,594,983 | Executive locking stock | Not applicable |
Li Erlong | 619,050 | 154,725 | 0 | 464,325 | Executive locking stock | Not applicable |
Yang Chunling | 46,125 | 0 | 0 | 46,125 | Executive locking stock | Not applicable |
Liang Rong | 600,975 | 150,244 | 0 | 450,731 | Executive locking stock | Not applicable |
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 |
shareholders at the end of the reporting period | shareholders that had restored the voting right at the end of the reporting period (if any) (note 8) | |||||||||
Shareholding of shareholders holding more than 5% shares | ||||||||||
Shareholders | Nature of shareholder | Proportion of shares held(%) | Number of shares held at period -end | Changes in reporting period | Amount of restricted shares held | Amount of un-restricted shares held | Number of share pledged/frozen | |||
State of share | Amount | |||||||||
Chen Lue | Domestic Natural person | 34.36% | 583,454,556 | 0 | 437,590,917 | 145,863,639 | Pledge | 583,454,462 | ||
Freeze | 583,454,556 | |||||||||
STYLE-SUCCESS LIMITED | Foreign legal person | 5.47% | 92,970,910 | 0 | 0 | 92,970,910 | ||||
Union Holdings Co., Ltd. | Domestic Non- State-owned legal person | 5.18% | 87,935,921 | 0 | 0 | 87,935,921 | ||||
He Feiyan | Domestic Natural person | 3.23% | 54,800,458 | 0 | 0 | 54,800,458 | Freeze | 54,800,458 | ||
Jiutai Fund-Bank of Communications-Jiutai Huitong No.2 specific customer asset management plan | Other | 2.40% | 40,696,772 | 0 | 0 | 40,696,772 | ||||
Rich Crown Investment Co., Ltd. | Foreign legal person | 1.37% | 23,235,313 | 0 | 0 | 23,235,313 | ||||
Lei Shizhang | Domestic Natural person | 0.88% | 15,000,000 | 10,555,000 | 0 | 15,000,000 | ||||
Qinghai Heyi Industry Development Co., Ltd. | Domestic Non- State-owned legal person | 0.79% | 13,357,084 | 0 | 0 | 13,357,084 | Pledge | 13,357,084 | ||
Huang | Domestic | 0.68% | 11,480, | -820,000 | 0 | 11,480,00 |
Huaian | Natural person | 000 | 0 | |||||||
Liu Yong | Domestic Natural person | 0.41% | 7,044,352 | 4,745,500 | 0 | 7,044,352 | ||||
Strategy investors or general legal person becomes top 10 shareholders due to rights issued (if applicable)See Notes 3) | Not applicable | |||||||||
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 concerted; 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.; It is 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 | ||||||||||
Name of the shareholder | Quantity of unrestricted shares held at the end of the reporting period | Share type | ||||||||
Share type | Quantity | |||||||||
Che Lue | 145,863,639 | RMB Common shares | 145,863,639 | |||||||
STYLE-SUCCESS LIMITED | 92,970,910 | Foreign shares placed in domestic exchang | 92,970,910 | |||||||
Union Holdings Co., Ltd. | 87,935,921 | RMB Common shares | 87,935,921 | |||||||
He Feiyan | 54,800,458 | RMB Common shares | 54,800,458 | |||||||
Jiutai Fund-Bank of Communications-Jiutai Huitong No.2 specific customer asset management plan | 40,696,772 | RMB Common shares | 40,696,772 | |||||||
Rich Crown Investment Co., Ltd. | 23,235,313 | Foreign shares placed in domestic exchange | 23,235,313 | |||||||
Lei Shizhang | 15,000,000 | RMB Common shares | 15,000,000 | |||||||
Qinghai Heyi Industry Development Co., Ltd. | 13,357,084 | RMB Common shares | 13,357,084 | |||||||
Huang Huaian | 11,480,000 | Foreign shares | 11,480,000 |
placed in domestic exchange | |||
Liu Yong | 7,044,352 | RMB Common shares | 7,044,352 |
Explanation on associated relationship or consistent action among the top 10 shareholders of non-restricted negotiable shares and that between the top 10 shareholders of non-restricted negotiable shares and top 10 shareholders | Mr. Chen Lue and Ms. He Feiyan are the unanimous persons; Union Development Group Co., Ltd. is the controlling shareholder of the Above –mentioned shareholder Union Holdings Co., Ltd. And Rich Grown Investment Co., Ltd., It is 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. | ||
Notes to the shareholders involved in financing securities (if any) (See Notes 4) | Not applicable |
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have abuy-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 Companyhave no buy –back agreement dealing in reporting period.IV. 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.
VII. Situation of the Preferred Shares
□Applicable √Not applicable
The Company had no preferred shares in the reporting period
VIII. Information about Directors, Supervisors and Senior ExecutivesI. 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 specificinformation please refer to the 2018 Annual Report.II. Changes in directors, supervisors and senior management staffs
√ Applicable □ Not applicable
Name | Title | Type | Date | Reason |
Cui Hongli | Deputy General Manager | Dismissal | July 29,2019 | Resigned due to personal reasons |
IX. Corporate BondWhether the company has corporate bonds that have been publicly issued and listed on the stock exchange, andnot yet due or due but not folly cashed on the approval date of annual reportNo
X. Financial ReportI. Audit reportHas this semi-annual report been audited?
□ Yes √ No
The semi-annual financial report has not been audited.II. Financial statementsCurrency unit for the statements in the notes to these financial statements: RMB
1.Consolidated Balance sheet
Prepared by : Sino Great Wall Co., Ltd.
In RMB
Items | June 30,2019 | December 31,2018 |
Current asset: | ||
Monetary 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 |
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 assets | 10,338,500.00 | |
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 amortized | 3,038,767.30 | 6,727,688.90 |
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 |
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 year | 975,719,981.55 | 975,719,981.55 |
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 |
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 parent company | -1,184,353,287.94 | 235,202,473.51 |
Minority 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 LuePerson in charge of accounting: Yang ChunlingAccounting Dept Leader: Yang Chunling
2. Balance sheet of Parent Company
In RMB
Items | June 30,2019 | December 31, 2018 |
Current asset: | ||
Monetary 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 |
Construction in progress | ||
Production physical assets | ||
Oil & gas assets | ||
Use right assets | ||
Intangible assets | ||
Development expenses | ||
Goodwill | ||
Long-germ expenses to be amortized | 1,074,666.67 | |
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 year | 866,250,000.00 | 866,250,000.00 |
Other current liability | ||
Total of current liability | 4,725,861,423.74 | 4,610,755,435.75 |
Non-current liabilities: | ||
Long-term loan |
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 RMB
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 |
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 |
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 of parent company | -1,416,774,391.50 | 143,999,455.72 |
2.Minority shareholders’ equity | -15,960.55 | -933,934.18 |
VI. Net after-tax of other comprehensive income | -5,708.23 | -263,008.36 |
Net of profit of other comprehensive income attributable to owners of the parent company. | -5,708.23 | -263,008.36 |
(I)Other comprehensive income items that will not be reclassified into gains/losses in the subsequent accounting period | ||
1.Re-measurement of defined benefit plans of changes in net debt or net assets | ||
2.Other comprehensive income under the equity method investee can not be 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 will be reclassified into profit or loss. | -5,708.23 | -263,008.36 |
1.Other comprehensive income under the equity method investee can be reclassified 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 assets | ||
4. Other comprehensive income arising from the reclassification of financial assets | ||
5.Held-to-maturity investments reclassified 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 financial statements | -5,708.23 | -263,008.36 |
9.Other | ||
Net of profit of other comprehensive income attributable to Minority 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 company | -1,416,780,099.73 | 143,736,447.36 |
Total comprehensive income attributable minority shareholders | -15,960.55 | -933,934.18 |
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 net profit of RMB 0 last period the combined party realized RMB 0Legal Representative: Chen LuePerson in charge of accounting: Yang ChunlingAccounting Dept Leader: Yang Chunling
4. Income statement of the Parent Company
In RMB
Items | Semi-annual of 2019 | Semi-annual of 2018 |
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 |
plans of changes in net debt or net assets | ||
2.Other comprehensive income under the equity method investee can not be 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 will be reclassified into profit or loss. | ||
1.Other comprehensive income under the equity method investee can be reclassified 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 assets | ||
4. Other comprehensive income arising from the reclassification of financial assets | ||
5.Held-to-maturity investments reclassified 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 financial statements | ||
9.Other | ||
VI. Total comprehensive income | -289,824,789.26 | -8,625,158.40 |
VII. Earnings per share |
(I)Basic earnings per share | ||
(II)Diluted earnings per share |
5. Consolidated Cash flow statement
In RMB
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 | 572,525,325.64 | 2,448,493,180.76 |
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 operation | 212,666,069.55 | 3,596,297,555.25 |
Sub-total of cash inflow | 786,159,970.78 | 6,048,160,343.32 |
Cash paid for purchasing of merchandise and services | 449,528,268.83 | 2,123,943,719.36 |
Net increase of client trade and advance |
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 business activities | 1,208,311,997.58 | 4,949,995,977.69 |
Net cash generated from /used in operating activities | -422,152,026.80 | 1,098,164,365.63 |
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 | 432,865.55 | |
Net cash received from disposal of subsidiaries or other operational units | 1,062,398.45 | |
Other investment-related cash received | ||
Sub-total of cash inflow due to investment activities | 1,495,264.00 | |
Cash paid for construction of fixed assets, intangible assets and other long-term assets | 12,179,377.50 | |
Cash paid as investment | 226,429,730.78 | |
Net increase of loan against pledge | ||
Net cash received from subsidiaries and other operational units | -35,622,112.04 | |
Other cash paid for investment |
activities | ||
Sub-total of cash outflow due to investment activities | 202,986,996.24 | |
Net cash flow generated by investment | -201,491,732.24 | |
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 received | 6,362,955.91 | |
Sub-total of cash inflow from financing activities | 386,304,797.30 | 1,170,999,245.00 |
Cash to repay debts | 30,000,000.00 | 2,282,455,158.52 |
Cash paid as dividend, profit, or interests | 169,918,204.82 | |
Including: Dividend and profit paid by subsidiaries to minor shareholders | ||
Other cash paid for financing activities | ||
Sub-total of cash outflow due to financing activities | 30,000,000.00 | 2,452,373,363.34 |
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 equivalents | -398,848.83 | -4,502,184.53 |
V.Net increase of cash and cash equivalents | -66,246,078.33 | -389,203,669.48 |
Add: balance of cash and cash equivalents at the beginning of term | 125,767,796.88 | 647,222,590.49 |
VI ..Balance of cash and cash equivalents at the end of term | 59,521,718.55 | 258,018,921.01 |
6. Cash flow statement of the Parent Company
In RMB
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 operation | 3,014,684.54 | 3,329,634,571.90 |
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 business activities | 26,695,809.22 | 2,257,758,419.75 |
Net cash generated from /used in operating activities | -23,681,124.68 | 1,071,876,152.15 |
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 |
activities | ||
Sub-total of cash outflow due to investment activities | 13,000,000.00 | |
Net cash flow generated by investment | -13,000,000.00 | |
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 financing activities | 755,650,000.00 | |
Cash to repay debts | 1,783,743,643.54 | |
Cash paid as dividend, profit, or interests | 91,415,896.63 | |
Other cash paid for financing activities | ||
Sub-total of cash outflow due to financing activities | 1,875,159,540.17 | |
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 equivalents | -23,681,124.68 | -60,633,388.02 |
Add: balance of cash and cash equivalents at the beginning of term | 23,708,889.90 | 99,547,899.86 |
VI ..Balance of cash and cash equivalents at the end of term | 27,765.22 | 38,914,511.84 |
7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RMB
Items | Semi-annual of 2019 | ||||||||||||||
Owner’s equity Attributable to the Parent Company | Minor shar | Total of own | |||||||||||||
share | Other Equity instrument | Capital | Less: | Other | Specializ | Surplus | Common | Retained | Other | Subtotal | |||||
pre | Ot |
Capita | ferred stock | Sustainable debt | her | reserves | Shares in stock | Comprehensive Income | ed reserve | reserves | risk provision | profit | eholders’ equity | ers’ equity | |||
I.Balance at the end of last year | 1,698,245,011.00 | -1,298,846,540.07 | -50,380.95 | 21,026,082.43 | 84,394,441.23 | -269,566,140.13 | 235,202,473.51 | 30,365,747.79 | 265,568,221.30 | ||||||
Add: Change of accounting policy | 0.00 | ||||||||||||||
Correcting of previous errors | 0.00 | ||||||||||||||
Merger of entities under common control | 0.00 | ||||||||||||||
Other | 0.00 | ||||||||||||||
II.Balance at the beginning of current year | 1,698,245,011.00 | -1,298,846,540.07 | -50,380.95 | 21,026,082.43 | 84,394,441.23 | -269,566,140.13 | 235,202,473.51 | 30,365,747.79 | 265,568,221.30 | ||||||
III.Changed in the current year | -5,708.23 | -2,775,661.72 | -1,416,774,391.50 | -1,419,555,761.45 | -15,960.55 | -1,419,571,722.00 | |||||||||
(1)Total comprehensive income | -5,708.23 | -1,416,774,391.50 | -1,416,780,099.73 | -15,960.55 | -1,416,796,060.28 | ||||||||||
(II)Investment or | 0.00 |
decreasing of capital by owners | |||||||||||||||
1.Ordinary Shares invested by shareholders | 0.00 | ||||||||||||||
2.Holders of other equity instruments invested capital | 0.00 | ||||||||||||||
3.Amount of shares paid and accounted as owners’ equity | 0.00 | ||||||||||||||
4.Other | 0.00 | ||||||||||||||
(III)Profit allotment | 0.00 | ||||||||||||||
1.Providing of surplus reserves | 0.00 | ||||||||||||||
2.Providing of common risk provisions | 0.00 | ||||||||||||||
3.Allotment to the owners (or shareholders) | 0.00 | ||||||||||||||
4.Other | 0.00 | ||||||||||||||
(IV) Internal transferring of owners’ equity | 0.00 | ||||||||||||||
1. Capitalizing of capital reserves (or to capital shares) | 0.00 | ||||||||||||||
2. | 0.00 |
Capitalizing of surplus reserves (or to capital shares) | |||||||||||||||
3.Making up losses by surplus reserves. | 0.00 | ||||||||||||||
4.Change amount of defined benefit plans that carry forward Retained earnings | 0.00 | ||||||||||||||
5.Other comprehensive income carry-over retained earnings | 0.00 | ||||||||||||||
6.Other | 0.00 | ||||||||||||||
(V). Special reserves | -2,775,661.72 | -2,775,661.72 | -2,775,661.72 | ||||||||||||
1. Provided this year | 0.00 | ||||||||||||||
2.Used this term | 2,775,661.72 | 2,775,661.72 | 2,775,661.72 | ||||||||||||
(VI)Other | |||||||||||||||
IV. Balance at the end of this term | 1,698,245,011.00 | -1,298,846,540.07 | -56,089.18 | 18,250,420.71 | 84,394,441.23 | -1,686,340,531.63 | -1,184,353,287.94 | 30,349,787.24 | -1,154,003,500.70 |
Amount in last year
In RMB
Items | Semi-annual of 2018 | ||||||||||||||
Owner’s equity Attributable to the Parent Company | Minor shareholders’ equity | Total of owners’ equity | |||||||||||||
share Capita | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Common risk provision | Retained profit | Other | Subtotal | |||||
preferred stock | Sustainable debt | Other | |||||||||||||
I.Balance at the end of last year | 1,698,245,011.00 | -1,299,349,701.74 | 858,242.13 | 164,231,078.18 | 84,394,441.23 | 1,503,103,396.72 | 2,151,482,467.52 | 108,684,402.89 | 2,260,166,870.41 | ||||||
Add: Change of accounting policy | 0.00 | ||||||||||||||
Correcting of previous errors | 0.00 | ||||||||||||||
Merger of entities under common control | 0.00 | ||||||||||||||
Other | 0.00 | ||||||||||||||
II.Balance at the beginning of current year | 1,698,245,011.00 | -1,299,349,701.74 | 858,242.13 | 164,231,078.18 | 84,394,441.23 | 1,503,103,396.72 | 2,151,482,467.52 | 108,684,402.89 | 2,260,166,870.41 | ||||||
III.Changed in the current year | -263,008.36 | -93,691,786.53 | 148,062,848.03 | 54,108,053.14 | 7,014,321.82 | 61,122,374.96 |
(1)Total comprehensive income | -263,008.36 | 143,999,455.72 | 143,736,447.36 | -933,934.18 | 142,802,513.18 | ||||||||||
(II)Investment or decreasing of capital by owners | 4,063,392.31 | 4,063,392.31 | 7,948,256.00 | 12,011,648.31 | |||||||||||
1.Ordinary Shares invested by shareholders | 0.00 | ||||||||||||||
2.Holders of other equity instruments invested capital | 0.00 | ||||||||||||||
3.Amount of shares paid and accounted as owners’ equity | 0.00 | ||||||||||||||
4.Other | 4,063,392.31 | 4,063,392.31 | 7,948,256.00 | 12,011,648.31 | |||||||||||
(III)Profit allotment | 0.00 | ||||||||||||||
1.Providing of surplus reserves | 0.00 | ||||||||||||||
2.Providing of common risk provisions | 0.00 | ||||||||||||||
3.Allotment to the owners (or shareholders) | 0.00 | ||||||||||||||
4.Other | 0.00 |
(IV) Internal transferring of owners’ equity | 0.00 | ||||||||||||||
1. Capitalizing of capital reserves (or to capital shares) | 0.00 | ||||||||||||||
2. Capitalizing of surplus reserves (or to capital shares) | 0.00 | ||||||||||||||
3.Making up losses by surplus reserves. | 0.00 | ||||||||||||||
4.Change amount of defined benefit plans that carry forward Retained earnings | 0.00 | ||||||||||||||
5.Other comprehensive income carry-over retained earnings | 0.00 | ||||||||||||||
6.Other | 0.00 | ||||||||||||||
(V). Special reserves | -93,691,786.53 | -93,691,786.53 | -93,691,786.53 | ||||||||||||
1. Provided this year | 7,271,059.70 | 7,271,059.70 | 7,271,059.70 |
2.Used this term | -100,962,846.23 | -100,962,846.23 | -100,962,846.23 | ||||||||||||
(VI)Other | 0.00 | ||||||||||||||
IV. Balance at the end of this term | 1,698,245,011.00 | 0.00 | 0.00 | 0.00 | -1,299,349,701.74 | 0.00 | 595,233.77 | 70,539,291.65 | 84,394,441.23 | 0.00 | 1,651,166,244.75 | 0.00 | 2,205,590,520.66 | 115,698,724.71 | 2,321,289,245.37 |
8. Statement of change in owner’s Equity of the Parent Company
Amount in this period
In RMB
Items | Semi-annual of 2019 | |||||||||||
Share capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Retained profit | Other | Total of owners’ equity | |||
preferred stock | Sustainable debt | Other | ||||||||||
I.Balance at the end of last year | 1,698,245,011.00 | 1,237,956,472.37 | 26,309,287.00 | -484,380,246.68 | 2,478,130,523.69 | |||||||
Add: Change of accounting policy | 0.00 | |||||||||||
Correcting of previous errors | 0.00 | |||||||||||
Other | 0.00 | |||||||||||
II.Balance at the beginning of current year | 1,698,245,011.00 | 1,237,956,472.37 | 26,309,287.00 | -484,380,246.68 | 2,478,130,523.69 | |||||||
III.Changed in | -289, | -289,824 |
the current year | 824,789.26 | ,789.26 | ||||||||||
(I)Total comprehensive income | -289,824,789.26 | -289,824,789.26 | ||||||||||
(II) Investment or decreasing of capital by owners | 0.00 | |||||||||||
1.Ordinary Shares invested by shareholders | 0.00 | |||||||||||
2.Holders of other equity instruments invested capital | 0.00 | |||||||||||
3.Amount of shares paid and accounted as owners’ equity | 0.00 | |||||||||||
4.Other | 0.00 | |||||||||||
(III)Profit allotment | 0.00 | |||||||||||
1.Providing of surplus reserves | 0.00 | |||||||||||
2.Allotment to the owners (or shareholders) | 0.00 | |||||||||||
3.Other | 0.00 | |||||||||||
(IV) Internal transferring of owners’ equity | 0.00 | |||||||||||
1. Capitalizing of capital reserves (or to | 0.00 |
capital shares) | ||||||||||||
2. Capitalizing of surplus reserves (or to capital shares) | 0.00 | |||||||||||
3.Making up losses by surplus reserves. | 0.00 | |||||||||||
4.Change amount of defined benefit plans that carry forward Retained earnings | 0.00 | |||||||||||
5.Other comprehensive income carry-over retained earnings | 0.00 | |||||||||||
6.Other | 0.00 | |||||||||||
(V) Special reserves | 0.00 | |||||||||||
1. Provided this year | 0.00 | |||||||||||
2.Used this term | 0.00 | |||||||||||
(VI)Other | 0.00 | |||||||||||
IV. Balance at the end of this term | 1,698,245,011.00 | 1,237,956,472.37 | 26,309,287.00 | -774,205,035.94 | 0.00 | 2,188,305,734.43 |
Amount in last year
In RMB
Items | Semi-annual of 2018 | |||||||||
Share | Other Equity instrument | Capital | Less: Share | Other Comp | Specialized | Surplus | Retained profit | Other | Total of owners’ |
Capital | preferred stock | Sustainable debt | Other | reserves | s in stock | rehensive Income | reserve | reserves | equity | |||
I.Balance at the end of last year | 1,698,245,011.00 | 1,237,956,472.37 | 26,309,287.00 | 88,188,591.10 | 3,050,699,361.47 | |||||||
Add: Change of accounting policy | ||||||||||||
Correcting of previous errors | ||||||||||||
Other | ||||||||||||
II.Balance at the beginning of current year | 1,698,245,011.00 | 1,237,956,472.37 | 26,309,287.00 | 88,188,591.10 | 3,050,699,361.47 | |||||||
III.Changed in the current year | -8,625,158.40 | -8,625,158.40 | ||||||||||
(I)Total comprehensive income | -8,625,158.40 | -8,625,158.40 | ||||||||||
(II) Investment or decreasing of capital by owners | ||||||||||||
1.Ordinary Shares invested by shareholders | ||||||||||||
2.Holders of other equity instruments invested capit |
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.Making up losses by surplus reserves. | ||||||||||||
4.Change amount of defined |
benefit plans that carry forward Retained earnings | ||||||||||||
5.Other comprehensive income carry-over retained earnings | ||||||||||||
6.Other | ||||||||||||
(V) Special reserves | ||||||||||||
1. Provided this year | ||||||||||||
2.Used this term | ||||||||||||
(VI)Other | ||||||||||||
IV. Balance at the end of this term | 1,698,245,011.00 | 1,237,956,472.37 | 26,309,287.00 | 79,563,432.70 | 3,042,074,203.07 |
III.Basic Information of the Company
Sino Great Wall Co., Ltd. (hereinafter referred to as "Company” or the "Company”) is a limited liabilitycompany restructured by Shenzhen Victor Onward Textile Printing Co., Ltd. and altered its name to ShenzhenVictor Onward Textile Industrial Co., Ltd. upon the approval of the People's Government of ShenzhenMunicipality 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 ShenzhenVictor Onward Textile Industrial Co., Ltd.’s Material Assets Reorganization, Issuance of Stock Shares to ChenLve and Others, Asset Purchase, and Raising of Supporting Fund” ([2015] No. 1774). The company issued251,849,593 shares to 17 shareholders of Sino Great Wall Co., Ltd. including Chen Lve to purchase a 100% stakein Sino Great Wall International Engineering Co., Ltd. Meanwhile, it also issued 25,914,633 shares in anon-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 251,849,593contributed by all shareholders of Sino Great Wall Co., Ltd. On July 30, 2015, Ruihua Certified PublicAccountants (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 withcapital stock of RMB 420,991,949. On December 4, 2015, the company changed its name to Sino Great Wall Co.,
Ltd.
On May 6, 2016, the general meeting of stockholders reviewed and approved the 2015 plan of convertingcapital reserve into share capital. The specific plan was: Based on the total capital stock of 446,906,582 sharesissued as of December 31, 2015, all shareholders would receive 28 shares for every 10 shares, with the totalamount of converted capital stock reaching 1,251,338,429 shares. After the transfer, the total capital stock wouldbe increased to 1,698,245,011 shares. As of December 31 2016, the Company’s total capital stock was1,698,245,011 shares, of which 1,434,441,780 were outstanding A shares, and 263,803,231 were outstanding Bshares. Chen Lve held 582,944,556 A shares, accounting for 34.33% of the total. He was the controllingshareholder and actual controller of the Company.The industries involved are the architectural decoration industry and other construction industries. As ofDecember 31, 2018, the Company has issued capital stock of RMB 169,824,500 shares in total with the registeredcapital of RMB 169,824,500; the registration address is located at No. 26, Kuipeng Road, Baishigang, KuichongSubdistrict, 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 neededraw materials, accessories, mechanical equipment, clothes of various face fabrics and provision of relevantservices (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: engagingin businesses of quota-free license management, acquisition and export of non-monopolized commodity. Theactual controller of the Company is Chen Lue. The financial statements have been reported on August 31, 2019after 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 thecurrent 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 thetransactions and matters having occurred actually, and in accordance with the Accounting Standards for BusinessEnterprises – Basic Rules (Issued by the Order No. 33 of the Ministry of Finance, amended in accordance with theOrder No. 76 of the Ministry of Finance), the 42 detailed accounting rules, Guidelines for Application ofAccounting Standards for Business Enterprises, Interpretation of Accounting Standards for Business Enterprisesand other relevant regulations issued and amended on February 15, 2006 and afterwards (hereinafter jointlyreferred to as “Accounting Standards for Business Enterprises”), as well as the disclosure provisions of thePreparation Rules for Information Disclosure by Companies Offering Securities to the Public No.15 – GeneralProvisions 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 accountingof the Company is based on the accrual basis. Except for certain financial instruments, the measurement of thefinancial statements is based on historical cost. If the asset is impaired, the corresponding provision forimpairment will be made in accordance with relevant regulations.
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 thespecial 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 forBusiness Enterprises, and reflect the Company’s financial standing as of December 31, 2018 and its operatingresults, cash flow, and other relevant information in 2018 authentically and completely. In addition, all materialaspects of the financial statements of the Company are in line with the disclosure provisions regarding financialstatements and notes stipulated in the Preparation Rules for Information Disclosure by Companies OfferingSecurities to the Public No.15 – General Provisions on Financial Report (Amended in 2014) issued by ChinaSecurities 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 andliabilities.
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
Business combination under the same control: The assets and liabilities obtained by the Company frombusiness combination are measured as per the book value of the combined party’s assets and liabilities (includingthe goodwill formed from the final controller’s acquisition of the combined party) on the date of combination inthe final controller’s consolidated financial statements. For the balance between the book value of net assetsobtained from the combination and the book value of combination consideration paid (or the total book value ofshares issued), the capital stock premium in capital reserve will be adjusted; and if the capital stock premium inthe capital reserve is insufficient to write down, the retained earnings will be adjusted.
Business combination not under the same control: The assets paid as consideration for business combination
and the liabilities incurred or undertaken by the Company on the date of purchasing will be measured as per fairvalue, and the balance between the fair value and its book value will be recorded in the gain or loss of the currentperiod. The Company confirms the balance that the “combination cost” is bigger than “the fair value shares of thepurchased party’s distinguishable net assets obtained from the combination” as goodwill; and records afterchecking the balance that the “combination cost” is smaller than “the fair value shares of the purchased party’sdistinguishable 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 andconsulting, etc., and other directly related expenses will be recorded in the gain or loss of the current period whenincurred; the transaction expenses of equity securities issued for business combination will be used to write downthe equity.
6. Method for Preparation of Consolidated Financial 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 therelevant activities of the investee, and has the ability to use the power over the investee to affect the amount of thereturns. The scope of consolidation includes the Company and all subsidiaries. Subsidiaries refer to the entitiescontrolled by the Company.
The company will conduct a reassessment once the relevant facts and circumstances have changed and therelevant 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 financialstatements, and according to other relevant materials. For preparing consolidated financial statements, theCompany deems the whole enterprise group as an accounting subject, and reflects the enterprise group’s overallfinancial standing, operating results and cash flow according to the confirmation, measuring and presentationrequirements of relevant enterprise accounting standards, and according to uniform accounting policies.
The accounting policies and accounting period of all the subsidiaries incorporated into the consolidationscope of consolidated financial statements are consistent with those adopted by the Company. If the accountingpolicies 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 theCompany’s accounting policies and accounting period. For the subsidiaries obtained through businesscombination not under the same control, their financial statements will be adjusted based on the fair value ofdistinguishable net assets on the date of purchasing. For subsidiaries obtained through business combination underthe same control, their financial statements will be adjusted based on the book value of their assets and liabilities
(including the goodwill formed from the final controller’s acquisition of the subsidiaries) in the final controller’sfinancial 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 consolidatedbalance sheet, the net profit and total composite benefit in consolidated profit statement respectively. The balanceformed from that “the loss of current period shared by subsidiaries’ minor shareholders” exceeds “the sharesshared by the minor shareholders in the subsidiaries’ owners’ equity at the beginning of period” will be used towrite 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 samecontrol, the opening amount in the consolidated balance sheet will be adjusted; the income, expense, and profit ofthe subsidiaries or businesses from the beginning of the very period of combination to the end of the reportingperiod will be incorporated into the consolidated profit statement; the cash flow of the subsidiaries or businessesfrom the beginning of the very period of combination to the end of the reporting period will be incorporated intothe 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 thefinal controller starts the control.
If it’s available to impose control on invested parties under the same control for reason of additionalinvestment, etc., each party participating in the combination will be deemed to exist and make adjustmentsaccording to present state when the final controller starts the control. The equity investments held before obtainingthe right to control the combined parties, relevant gain or loss already confirmed from “the date when originalequity 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 willbe used to write down the opening retained benefit of the period of comparative statement or the gain or loss ofthe current period respectively.
In the reporting period, if subsidiaries or businesses are increased for business combination not under thesame control, the opening amount of consolidated balance sheet will not be adjusted; the income, expense andprofit of the subsidiaries or businesses from the date of purchasing to the end of reporting period will beincorporated into the profit statement respectively; and the cash flow of the subsidiaries or businesses from thedate 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 additionalinvestment, etc., then the purchased parties’ stock equity held before the date of purchasing will be re-measuredby the Company as per the fair value of the stock equity on the date of purchasing, and the balance between thefair value and its book value will be recorded in the investment yield of the current period. If the purchased
parties’ equity held before the date of purchasing involves other composite benefits under accounting with equitymethod, as well as changes of other owners’ equity except for net gain or loss, other composite benefit and profitdistribution, then relevant other composite benefit and changes of other owner’s equity will be converted into theinvestment yield in the very period to which the date of purchasing belongs, excluding the other compositebenefits arising from the changes of the net liabilities or net assets of benefit plan measured and set up over againby the invested parties.
② Disposal of Subsidiaries or Businesses
In the reporting period, if the Company disposes some subsidiaries or businesses, then the income, expenseand profit of such subsidiaries or businesses from the beginning of the period to the date of disposal will beincorporated into the consolidated profit statement; the cash flow of the subsidiaries or businesses from thebeginning 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 otherreasons, the remained equity investments after disposal will be re-measured by the Company as per their fair valueon the date when the control right is lost. The balance of “the sum of the consideration obtained from disposal ofequity and the fair value of the remained stock equity” minus “the sum of the net asset shares enjoyed in originalsubsidiaries and calculated continuously from the date of purchasing or date of combination according to originalshareholding proportion and the goodwill” will be recorded in the investment yield of the very period whencontrol right is lost. Other composite benefits related to original subsidiaries’ equity investments, or the changesof other owners’ equity except for other composite benefits and profit distribution, will be converted into theinvestment yield of the very period when the control right is lost, excluding the other composite benefits arisingfrom the changes of the net liabilities or net assets of benefit plan measured and set up over again by the investedparties.In case of any declination on the shareholding proportion of the Company and herein losing the control rightsover its subsidiary arising from the capital increase contributed by other investors, it shall conduct accountingtreatment in the light of the aforesaid principles.If the Company disposes the equity investments in subsidiaries by steps through multiple transactions untillosing the right to control the subsidiaries, and if the clauses, terms and economic influences of varioustransactions for disposing the equity investments in the subsidiaries meet one or several of the followingcircumstances, such multiple transactions will generally be subject to accounting treatment as package transaction:
a. These transactions are concluded simultaneously or in condition of considering mutualinfluences;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 othertransactions;
d. A transaction is not economical independently, but economical if considered together withother transactions.If various transactions of disposing the equity investments in subsidiaries until losing the control right belongto package transaction, the Company will execute accounting treatment of various transactions as a transaction ofdisposing subsidiaries until losing control right; but the balance between the price of every disposal before losingcontrol right and the subsidiaries’ net asset shares enjoyed and corresponding to the investments disposed will beconfirmed as other composite benefits in the consolidated financial statements, and transferred into the gain orloss of the very period when the control right is lost.If various transactions of disposing the equity investments in subsidiaries until losing the control right do notbelong to package transaction, then before losing control right, the Company will execute accounting treatmentaccording to relevant policies about partial disposal of equity investments in subsidiaries in condition of not losingcontrol right; if control right is lost, the accounting treatment will be carried out according to general method fortreatment of subsidiaries.For the balance between “the long-term equity investments newly obtained from purchasing of minor stockequity” and “the net asset shares to be enjoyed in the subsidiaries according to newly increased shareholdingproportion and calculated continuously from the date of purchasing (or the date of combination)”, the capital stockpremium in the capital reserve in the consolidated balance sheet will be adjusted; if the capital stock premium inthe 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 equityinvestments in subsidiaries in condition of not losing control right” and “the net asset shares to be enjoyed in thesubsidiaries, corresponding to the disposal of long-term equity investments, and calculated continuously from thedate of purchasing or the date of combination”, the capital stock premium in the capital reserve in the consolidatedbalance 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 Companyclassifies joint venture arrangements into joint operations and joint ventures in line with the rights and obligationsin joint venture arrangements. A joint operation refers to a joint arrangement whereby the Company has rights tothe assets, and obligations for the liabilities, relating to the arrangement. A joint venture refers to a jointarrangement 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 theaccounting policy described in Note IV. 13, “Long-term Equity Investments Subject to Accounting with EquityMethod”.
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 ofthe output by the joint operation; and its expenses, including its share of any expenses incurred jointly.
When the Company, as a joint operator, invests in or sells assets to a joint operation (such assets do notconstitute businesses, the same below), or purchases assets from the joint operation, the Company only recognizesthe portion of the profits and losses arising from such transactions that is attributable to other participants in thejoint operation before such assets are sold to third parties. If such assets are subject to asset impairment lossesstipulated in the Accounting Standards for Business Enterprises No.8 of Asset Impairment, etc., in case that theCompany invests in or sells assets to the joint operation, the Company will fully recognize such losses incurredthereof; in case that the Company purchases assets from the joint operation, the Company will recognize its shareof 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 tomake payment at any time, should be confirmed as the cash. The investment, having four features of shortduration (expired within three months from the acquisition date), strong mobility, being easy to be changed intoknown 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 rateof the spot exchange rate on transaction date as the exchange rate for conversion. The balance of foreign-currencymonetary items on the date of balance sheet will be converted with the spot exchange rate on the date of balancesheet, 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 andconstruction of assets meeting capitalization conditions is treated in line with the principle for capitalization ofborrowing 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 ofbalance sheet; for the owner’s equity, except for “undistributed profit”, all the other items will be converted withthe spot exchange rate when they are incurred. The revenue item and the expense item in the Profit Statement areconverted 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 financialstatements related to such foreign operation shall be transferred from owner’s equity to the gain or loss of the veryperiod 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 orfinancial liabilities measured with fair value and having the change of fair value recorded in the gain or loss ofcurrent period, including tradable financial assets or financial liabilities, and financial assets or financial liabilitiesdirectly specified to measure with fair value and having the change of fair value recorded in the gain or loss of thecurrent period; held-to-maturity investments; accounts receivable; available-for-sale financial assets; and otherfinancial liabilities, etc.
(2) Confirmation Basis and Measuring Method of Financial Instruments
①Financial assets (financial liabilities) measured with fair value and having the change of fair valuerecorded in the gain or loss of current periodWhen they are obtained, fair value (after deduction of cash dividends already declared but not paid yet, or bondinterests with interest payment period expired but having not been acquired) will be taken as initial confirmedamount, 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 beconfirmed 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 periodexpired 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 actualinterest 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 berecorded 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 anoffer in active market, including accounts receivable and other accounts receivable, etc., the contract or agreementprice receivable from purchasers will be taken as the initially confirmed amount; if the receivables have financingnature, 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 accountsreceivable 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 notpaid yet, or bond interests with interest payment period expired but having not been acquired) and relevanttransaction expenses will be taken as initially confirmed amount.
During the holding period, the interests or cash dividends obtained will be confirmed as investment yield. Atthe end of period, they will be measured as per fair value, and the change of fair value will be recorded in othercomposite benefit. However, the equity instrument investments which have no offer in active market and of whichthe fair value cannot be reliably measured, and the derived financial assets which are linked with the equityinstruments 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 berecorded in the gain or loss of investment; meanwhile, the amount of corresponding disposal part and originallyrecorded in the accumulative amount of change in the fair value of other composite benefit directly will berecorded 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 Basis 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
financial assets to the transfer-in party, the Company will terminate the confirmation of the financial assets; if theCompany reserves nearly all risks and rewards on the ownership of the financial assets, the Company will notterminate the confirmation of such financial assets.When judging whether the transfer of financial assets meets the above-mentioned conditions for terminatingthe confirmation of financial assets, the Company will follow the “Substance Over Form” principle. The Companydistinguishes the transfer of financial assets into overall transfer and partial transfer of financial assets. If theoverall transfer of financial assets meets the conditions for termination of confirmation, the balance of thefollowing 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 fairvalue originally recorded in the owner’s equity directly (involving the circumstance that the financial assetstransferred are available-for-sale financial assets);If partial transfer of financial assets meets the conditions for termination of confirmation, the overall bookvalue of the financial assets transferred will be amortized between the confirmation-terminated part andnon-confirmation-terminated part as per respective relative fair value, and the balance of the following twoamounts 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 correspondingconfirmation-terminated part in the accumulative amount of change in the fair value originally recorded in theowner's equity directly (involving the circumstance that the financial assets transferred are available-for-salefinancial assets);
If the transfer of financial assets does not meet the conditions for termination of confirmation, the financialassets 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 suchfinancial liabilities or part of them will be terminated; if the Company signs an agreement with creditors to replacethe existing financial liabilities by means of undertaking new financial liabilities, and the contract clauses for newfinancial liabilities are substantially different from the contract clauses for existing financial liabilities, theconfirmation of the existing financial liabilities will be terminated, and new financial liabilities will be confirmedat the same time.
If all or partial contract clauses for existing financial liabilities are amended substantially, the confirmationof the existing financial liabilities or part of them will be terminated, and meanwhile, the financial liabilities afteramendment 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 bookvalue of the financial liabilities of which the confirmation is terminated and the consideration paid (includingnon-cash assets transferred out or the new financial liabilities undertaken) will be recorded in the gain or loss ofthe current period.
If the Company buys back partial financial liabilities, then on the date of buyback, the Company willdistribute the overall book value of the financial assets according to the relative fair value of the part confirmedcontinuously and the confirmation-terminated part. The balance between the book value distributed to theconfirmation and the consideration paid (including non-cash assets transferred out or the new financial liabilitiesundertaken) 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
active market. For financial instruments not having an active market, their value will be determined by estimationtechnique. In case of estimation, the Company will adopt estimation techniques which are applicable underpresent circumstances and supported by sufficient available data and other information, select input valuesconsistent with the asset or liability characteristics considered by market participants in the transactions ofrelevant assets or liabilities, and preferentially use relevant observable input values. Non-observable input valueswill be used only under the circumstance that relevant observable input values cannot be obtained or such valuesobtained are not practicable.
(6) Method for Testing and Accounting Treatment of Depreciation of Financial Assets (Excluding AccountsReceivable)Except for the financial assets measured with fair value and having the change of fair value recorded in thegain or loss of the current period, the Company checks the book value of financial assets on the date of balancesheet. If some objective evidence proves that some financial asset depreciates, the Company will withdrawdepreciation 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 ofdrop is predicted to be non-temporary after comprehensively considering various relevant factors, the Companywill confirm that the available-for-sale financial assets depreciate, will transfer out the accumulative losses arisingfrom 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 fairvalue rises and the rise is objectively related to the matters occurring after confirmation of original impairmentloss, then the originally confirmed impairment loss will be transferred back and recorded in the gain or loss of thecurrent period.
The impairment loss on available-for-sale equity instrument investments will not be transferred back throughgain 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 theallowance method for bad debt losses accounting.
(1) Accounts Receivable with Significant Single Amount and Having Bad Debt Reserve WithdrawnIndependently:
Judgment basis or amount standard of significant single amount | The Company recognizes accounts receivable for a single project with the balance ≥ RMB 10 million and other accounts receivable from a single relevant unit with the balance ≥ RMB 2 million as accounts receivable with significant single amount. |
Method for withdrawal of bad debt reserve with significant single amount and withdrawn independently: | The Company will carry out impairment test independently for accounts receivable with significant single amount. If such |
(2)Accounts Receivable with Insignificant Single Amount but Having Bad Debt Reserve Withdrawn
Separately:
accounts receivable are proved impairing through the test, theCompany will determine the impairment loss and withdrawbad debt reserve according to the balance that the present valueof its future cash flow is lower than its book value. Theaccounts receivable not impairing as proved in single test, will,together with the accounts receivable with insignificant singleamount, be divided into many portfolios according to similarcredit risk characteristics. Then according to certain proportionof the balance on the date of balance sheet of the portfolios ofthese accounts receivable, the Company will calculate anddetermine impairment loss and withdraw bad debt reserve.
Reasons for independent withdrawal of bad debt reserve
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. |
Method 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 | Method for withdrawal of bad debt reserve |
Account aging portfolio | Account age analysis method |
Combination of affiliated parties within the range of consolidation | Regardless of the provision for bad debts |
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 |
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 StockExchange 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 industriesYesCivil 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 forsale, etc., their net realizable value is confirmed during normal production and operation as per the amount afterdeduction of estimated selling expenses and relevant taxes from the estimated sales price of such inventories; formaterial stocks needing processing, their net realizable value will be determined during normal production andoperation as per the amount after deduction of costs estimated to incur until completion of work, estimated sellingexpenses and relevant taxes from the estimated sales price of finished products; for the inventories held forexecuting sales contract or labor service contract, their net realizable value will be calculated on the basis ofcontract price. If the quantity of inventories held is more than the quantity ordered under sales contract, the netrealizable 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, forplentiful inventories of relatively low unit price, inventory depreciation reserve will be withdrawn by the type ofinventory; for inventories related to the product series produced and sold in a same region, having the same orsimilar final use or objective, and difficult to measure by separating from other items, inventory depreciationreserve will be withdrawn in a consolidated way. Except for that some conclusive evidence proves abnormality ofmarket price on the date of balance sheet, the net realizable value of inventory items will be determined based onthe 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
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 PackingOne-off writing-off method is adopted for low-value easily-consumed articles; one-off writing-off methodis 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 assetsheld for sale:
(1) Based on the practice of selling such assets or disposal groups in similar transactions, they can be soldimmediately under current conditions;
The sale is very likely to happen, that is, the Company has already made a resolution on a sales plan andobtained 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 beforethey 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, andrelevant activities of such arrangement must be unanimously agreed by the participants sharing the control rightbefore being decided. If the Company and other joint operators impose common control on invested units andhave 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 financialaffairs and business operation, but could not control or jointly control together with other parties the making ofthese policies. If the Company could impose significant influences on invested units, the invested units will be theCompany’s associates.
(2) Determination of Initial Investment Cost
① Long-term Equity Investments Formed from Business Combination
Business combination under the same control: If the Company pays combination consideration by payingcash, transferring non-cash assets or undertaking debts and issuing equity securities, the Company will take thebook value shares of the combined party’s owners’ equity obtained on the date of combination in the finalcontroller’s consolidated financial statements as the initial investment cost of long-term equity investments. If theCompany 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
as per the book value shares of the combined party’s net assets to be enjoyed in the final controller’s consolidatedfinancial statements after combination. For the balance between “the initial investment cost of long-term equityinvestments on the date of combination” and “the sum of the book value of long-term equity investments beforecombination and the book value of newly paid consideration for further obtaining shares on the date ofcombination”, the Company will adjust the capital stock premium; and if the capital stock premium is not enoughto write down, the Company will write down the retained benefits.
Business combination not under the same control: The Company takes the combination cost determined onthe date of purchasing as the initial investment cost of long-term equity investments. If the Company couldimpose control on invested units not under the same control for reason of additional investment, etc., theCompany will take the sum of the book value of originally held equity investments and the newly increasedinvestment cost as the initial investment cost of long-term equity investments which are subject to accounting withcost 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 paidwill be taken as initial investment cost.
For long-term equity investments obtained by issuing equity securities, the fair value of the equity securitiesissued will be taken as initial investment cost.
In the precondition that non-monetary asset exchange has business nature, and the fair value of exchanged-inor exchanged-out assets could be measured reliably, the fair value of exchanged-out assets and relevant expensespayable will be determined as the initial investment cost of the long-term equity investments obtained fromnon-monetary assets exchange, unless some conclusive evidence proves that the fair value of exchanged-in assetsis more reliable; for non-monetary assets exchange not meeting the above-mentioned precondition, the book valueof exchanged-out assets and relevant taxes payable shall be taken as the initial investment cost of exchanged-inlong-term equity investments.
For long-term equity investments obtained through debt reorganization, their initial investment cost will bedetermined 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 forthe 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 tothe 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 jointventures. 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 initialinvestment cost of long-term equity investments; for the balance that the initial investment cost is smaller than thefair value shares of invested units’ distinguished net assets which shall be enjoyed by the Company, the Companywill 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 andconfirm the invested units’ net profit based on the fair value of the invested units’ distinguishable net assets wheninvestments are obtained, and according to the Company’s accounting policies and fiscal period. If the investedunits prepare consolidated financial statements during the holding of investments, the accounting will beconducted based on the amount attributing to the invested units in the net profit in the consolidated financial
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-runenterprises/ joint ventures, the part attributing to the Company will be calculated as per the proportion to beenjoyed, will be written down, and on this basis, the investment yield will be confirmed. The gain or loss onnon-realized internal transactions done with invested units will be fully confirmed if belonging to assetimpairment loss. During the period of holding investment, as for the invested entity preparing consolidatedfinancial statements, carry out accounting based on the invested entity’s attributable amount of the net profit, othercomprehensive 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 jointventures will confirm the investment income on the basis of offsetting the company’s attributable part calculatedaccording to the entitlement proportion. The unrealized losses on internal transaction occurring in the investedentity belonging to assets impairment loss will be confirmed in full amount. If the assets of investment orasset-sale transactions occurring among the company, associates and joint ventures constitute the business, theaccounting treatment shall be carried out according to the related policies disclosed in “IV. (4) Method forAccounting Treatment of Business Combination under and Not under the Same Control” and “IV. (5) Method forPreparation of Consolidated Financial Statements”.When the Company determines to share the losses of the invested entity, it will be treated in the order asfollows: firstly, the book value of long-term equity investments will be offset. Secondly, if the book value of thelong-term equity investment is not sufficient to be offset, the recognition of losses of the investment will becontinued to the extent of the book value of other long-term rights and interests which substantially form the netinvestment 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 provisionsof investment contract or agreement, the Company will confirm accrued liabilities with obligations predicted toundertake, 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 acquisitionprice 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 aredisposed, the part originally recorded in other composite benefits will be subject to accounting treatmentaccording to corresponding proportion and on the same basis adopted by invested units to directly dispose relevantassets 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 thecurrent period, excluding the other composite benefits arising from the change of net liabilities or net assets ofinvested units’ new measurement and setting of benefit plan.If the Company loses common control or significant influences on invested units for reason of disposal ofpartial equity investments, etc., the remained equity after disposal will be subject to accounting according to thestandards for the confirmation and measurement of financial instruments, and the balance between the fair valueand book value of such remained equity investments on the date when the Company losing common control orsignificant influences will be recorded in the gain or loss of the current period. Other composite benefitsconfirmed for accounting with equity method of original equity investments will be subject to accountingtreatment with the same basis adopted by invested units to directly dispose relevant assets or liabilities when theaccounting with equity method is terminated. The owner’s equity confirmed for change of other owner’s equityexcept for invested parties’ net gain or loss, other composite benefit and profit distribution will be totallytransferred in the gain or loss of the current period when the accounting with equity method is terminated.
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 thecompany, when preparing certain financial statement, the residual equity shall be checked by equity method ifhaving common control or major effect on invested unit, and adjusted as the residual equity is checked by theequity method from being obtained; If the remaining equity cannot exert joint control or significant influence onthe invested unit, it shall take accounting treatment according to the relevant provisions of financial tools andmeasurement rules, and the difference between the fair value and book value on the date of losing control shall beincluded in the current profits and losses.If the equity disposed is obtained from business combination for reason of additional investment, and whenindividual financial statements are prepared,cost method or equity method is adopted for accounting of the remained equity after disposal, the othercomposite benefits and other owner’s equity confirmed for accounting with equity method of the equityinvestments held before the date of purchasing will be carried forward by proportion; if the remained equity afterdisposal is subject to accounting treatment according to the standards for confirmation and measurement offinancial instruments, the other composite benefits and other owner’s equity will be carried forward completely.
23. Investment Real Estate
Investment real estate measurement modelCosting accountingMethod of depreciation or amortization
The company's investment real estate includes the land use right held and prepared to transfer afterincrement, the buildings already leased (including the buildings used for leasing after completion ofself-construction or development activities, and buildings in construction or development and to be used forleasing in future).
The Company adopts cost mode to measure the existing investment real estates. For investment real estatemeasured with cost mode – the buildings used for leasing, the Company will adopt the depreciation policy, whichis the same for fixed assets, and for the land use right for leasing, the Company will adopt the amortization policywhich 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 operationmanagement, and having a service life of more than one fiscal year. No fixed asset may be recognized unless itsimultaneously 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 |
(Year) | rate (%) | |||
House and buildings | Straight-line method | 20 years | 5 | 4.75 |
Mechanical equipment | Straight-line method | 10 | 5 | 9.5 |
Transportation equipment | Straight-line method | 7 | 5 | 13.57 |
Electronic equipment and other equipment | Straight-line method | 3-5 | 5 | 19.00-31.67 |
3. Recognition basis and valuation method for fixed assets under financing leaseWhere 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 datewhen 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 largedifferences 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 theminimum rent payment, whichever is lower, will be taken as the entry value of leased-in assets, and the minimumrent payment will be taken as the entry value of long-term accounts payable, and the balance will be taken asnon-confirmed financing cost.
25. Construction in Progress
For construction in progress, the necessary expenditure incurred for making the constructed assets reach thepredetermined usable state will be taken as the entry value of the fixed assets. If the constructed fixed assets havereached the predetermined usable state, but the completion settlement has not been handled, then since the datewhen such assets reach the predetermined usable state, the Company will transfer such assets into fixed assets asper estimated value and based on engineering budget, construction cost, or actual cost of engineering, etc., andwill withdraw fixed asset depreciation according to the Company’s policy for fixed asset depreciation; afterhandling 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 exchangebalance 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 assetsmeeting capitalization conditions, will be capitalized and recorded in the cost of relevant assets; and other
borrowing costs will be confirmed as expenses and recorded in the gain or loss of current period as per theiramount incurred when they are incurred.
Assets meeting capitalization conditions indicate the fixed assets which need to experience quite a long termof construction or production activities before reaching the predetermined usable or salable state, as well asinvestment real estates and inventories, etc.Borrowing costs will be capitalized if simultaneously meeting the following conditions:
(1) Asset expenditure has occurred, including the payment in cash for purchasing and construction orproduction of assets meeting capitalization conditions, transfer of non-cash assets, or undertaking ofinterest-bearing debts;
(2) Borrowing costs have occurred;
(3) The purchasing and construction or production activities necessary for making assets reachpredetermined 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 costsstarts to the time point when capitalization stops, excluding the period when the capitalization of borrowing costsis suspended.
If the assets purchased and constructed or produced and meeting capitalization conditions reach thepredetermined 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 arecompleted separately and could be used independently, the capitalization of borrowing costs for such assets willstop.
If each part of the assets purchased and constructed or produced is completed respectively, but cannot beused or sold until the whole assets are completed, the capitalization of borrowing costs may be stopped when theassets are totally completed.
3. Period for suspension of capitalization
If the assets meeting capitalization conditions are broken abnormally during purchasing and construction orproduction process, and the suspension lasts for more than 3 months successively, the capitalization of borrowingcosts will be suspended; if such suspension is a necessary procedure for making the assets purchased andconstructed 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 willbe confirmed as gain or loss in the current period, and the capitalization of borrowing costs will continue after theconstruction 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 construction or production of assets meeting capitalizationconditions, the capitalized amount of borrowing costs will be determined as per the amount after “the borrowingcosts actually incurred in the very period of special loan” minus “the interest income obtained from bank depositor 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 capitalizationconditions, the borrowing costs amount to be capitalized of general loans shall be calculated and determined asper 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 determinedas per the weighted mean interest rate of general loan.
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 theCompany. 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 cost when they are acquired.
The cost of purchased intangible assets includes purchasing price, relevant taxes, and other expendituresdirectly for making the assets reach the predetermined use. If the price for purchasing intangible assets is delayedin 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, theirentry value will be determined based on the fair value of such intangible assets, and the balance between the bookvalue of reorganized debts and the fair value of the intangible assets used for repaying debts will be recorded inthe gain or loss of the current period.
In the precondition that non-monetary asset exchange has the essence of commerce, and the fair value ofexchanged-in or exchanged-out assets could be measured reliably, the entry value of the intangible assets obtainedfrom non-monetary asset exchange will be determined based on the fair value of exchanged-out assets, unlessconclusive evidence proves that the fair value of exchanged-in assets is more reliable; for the non-monetary assetexchange not meeting the above-mentioned precondition, the book value of exchanged-out assets and relevanttaxes 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 whenthey bring about economic benefits for the enterprise; if it’s impossible to predict the period when the intangibleassets could bring about economic benefits to the enterprise, the intangible assets will be deemed to haveuncertain service life, and won’t be amortized.
2. Estimate on the service life of intangible assets with limited service life:
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 intangibleassets with limited service life. As checked, the service life and amortization method of intangible assets at the endof 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 atresearch stage and expenditure at development stage.
Research stage: The stage of unique and planned investigation and research activities conducted for obtainingand understanding new scientific or technological knowledge.
Development stage: The stage of applying research findings or other knowledge to some plan or design, inorder to produce new or substantially improved materials, devices and products, etc. before commercialproduction 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 asintangible 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 suchintangible assets, including proving that the products produced with such intangible assets have markets, or suchintangible assets have markets, and intangible assets would be used internally;
(4) The Company has sufficient technical, financial resources and other resources to support the completionof 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 measuredreliably.
31. Long-term Asset Impairment
If there is any sign of impairment in long-term equity investments, investment real estates measured by thecost model, fixed assets, construction in progress, intangible assets with finite service life and other long-termassets at the balance sheet date, an impairment test will be made. If the result of impairment test proves that therecoverable amount of assets is lower than their book value, the depreciation reserve will be withdrawn as pertheir balance and recorded in the impairment loss. The recoverable amount indicates the net amount after the fairvalue 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
to estimate the recoverable amount of single assets, the recoverable amount of asset portfolio will be determinedas per the asset portfolio to which the assets belong. Asset portfolio indicates the minimum asset group whichcould 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 formedfrom business combination to relevant asset group by reasonable means since the date of purchasing; if it isdifficult 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 torelevant asset group or asset group portfolio, the Company will execute amortization as per the proportion of thefair value of each asset group or asset group portfolio to the total fair value of relevant asset group or asset groupportfolio. If it is difficult to measure the fair value reliably, the Company will execute amortization as per theproportion of the book value of each asset group or asset group portfolio to the total book value of relevant assetgroup or asset group portfolio.When impairment test is carried out for relevant asset groups or asset group portfolios including goodwill, ifthe asset groups or asset group portfolios relevant to goodwill have the sign of impairment, the Company willcarry out impairment test of the asset group or asset group portfolio excluding goodwill, calculate recoverableamount, compare it with relevant book value, and confirm corresponding impairment loss. And then conductimpairment test on asset groups or asset group combination with goodwill, compare book values of relevant assetgroups or asset group combination (including the book value of amortized goodwill) with recoverable amounts, ifthe recoverable amounts of relevant asset groups or asset group combination are lower than their book values, theimpairment loss of goodwill will be recognized. Once any loss of asset impairment is recognized, it shall not beturned 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 periodand 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 theshort-term remuneration incurred actually as liabilities, and records them in the gain or loss of the current periodor the cost of relevant assets.
For the social insurance premiums and housing fund paid by the Company for employees, the trade unionoutlay and employee education outlay withdrawn as per regulations, the Company calculates and determinescorresponding amount of employees’ remuneration as per the withdrawal basis and withdrawal proportionregulated during the fiscal period when employees provide services for the Company.
If employees’ welfare expense is non-monetary welfare and could be measured reliably, they will bemeasured 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 employeesaccording to relevant provisions of local government, the amount payable will be calculated as per the baseamount and proportion of payment regulated by local place and recorded in the gain or loss of the current periodor 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 relationshipplan or staff cut-down suggestions, or when confirming the costs or expenses related to reorganization involvingthe payment of dismiss welfare (whichever is earlier), the Company will confirm the employee compensationliabilities 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 contributionplans shall be subject to accounting treatment in accordance with the defined contribution plans; otherwise shallbe 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, reorganizationmatters, etc. simultaneously meet the following conditions, the Company will confirm such obligations as accruedliabilities:
(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 theCompany;
(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 expendituresnecessary for implementation of relevant current obligations.
When determining the optimum estimated amount, the Company comprehensively considers the risksrelated to contingencies, uncertainty, time value of money, and other factors. If the time value of money hassignificant influences, the optimum estimated amount will be determined after discounting with relevant futurecash outflow.
The optimum estimated amount is treated by the following circumstances respectively:
If the expenditure needed has a continuous scope (or range), and the possibility for various results to occur isthe same within this scope, then the optimum estimated amount will be determined as per the middle value of thisscope, 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, butthe possibility for various results to occur within this scope is not the same, for example, contingencies involvesingle 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 pervarious possible results and relevant probability.If the Company’s expenditure needed for discharging accrued liabilities is predicted to compensate by thirdparties fully or partially, then the compensation amount will be confirmed independently as assets when beingascertained basically available to receive, and the compensation amount confirmed won’t be more than the bookvalue of the accrued liabilities.
37. Share-Based Payment
The share-based payment of the Company refers to the transaction through granting equity instruments orundertaking 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 theshare-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 measuredwith the fair value of the equity instruments granted to employees. If the Company makes share-based paymentwith restricted shares, then the shares subscribed with investment by employees shall not be circulated in themarket or transferred before meeting unlocking conditions and being unlocked; if the unlocking conditionsregulated in the final Stock Incentive Plan are not satisfied, the Company will buy back shares at thepredetermined price. When obtaining the money paid by employees for subscribing restricted shares, theCompany will confirm capital stock and capital reserve (capital stock premium) as per the stock subscriptionmoney obtained, and meanwhile, will confirm a liability and inventory stock as per the full amount of buybackobligation. On every date of balance sheet within the waiting period, the Company will make the optimumestimate on the quantity of exercised equity instruments according to follow-up information such as the latestacquired 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 servicesobtained in the very period in relevant cost or expense, and increase capital reserve correspondingly. Afterexercising date, the Company will not adjust the total amount of relevant confirmed cost or expense and owner’sequity. However, it’s available to exercise rights immediately after being granted, it will be recorded in relevantcost 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 theexercise conditions are market conditions or non-excisable conditions. No matter whether market conditions ornon-excisable conditions are satisfied, if only non-market conditions among excisable conditions are satisfied, itwill be deemed as excisable. If the clauses of share-based payment settled with equity are amended, the servicesobtained will be confirmed at least according to the clauses before amendment. In addition, any amendmentincreasing the fair value of equity instruments granted, or alterations beneficial for employees on the date ofamendment 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
the date of cancellation, and confirm the non-confirmed amount immediately. If employees or other parties couldchoose to meet non-exercisable conditions, but do not meet such conditions within waiting period, the Companywill treat this as cancelation of share-based payment settled with equity. However, if new equity instruments aregranted, and the new equity instruments granted are recognized to replace the cancelled equity instruments on thegranted date of the new equity instruments, the granted alternative equity instruments will be treated by the meansthe 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 industryNoCivil engineering construction industryThe company shall comply with the disclosure requirements of "the Guidelines No.7 of the Shenzhen StockExchange on Industry Information Disclosure—Listed Companies Engaging in the Civil EngineeringConstruction Business".
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 theCompany.
(2) The Company neither reserves the continuous management right which is generally associated withownership 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 casethat the results from provision of labor transactions can be estimated reliably, the revenue shall be recognized asper the important milestones specified by the design contract. Namely, the revenue is recognized as per thepercentage of the workload of important milestones of the completed design in the total design workload and theexpected recoverable contract amount.
If the result of providing service transaction cannot be estimated in a reliable way, the service revenue shallbe determined according to the service costs which has generated and expected to be compensated. The existingservice 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 thecontract or agreement signed by the Company with other enterprises, sales of commodity and provision of laborshall be separately disposed. Provided that sales of commodity and provision of labor cannot be distinguished, orcan be distinguished but cannot be separately measured, the entire contract shall be disposed as sales ofcommodity.
(2) Income from construction contracts
Under the circumstance that the outcome of a construction contract can be estimated in a reliable way, thecontract revenue and the contract costs shall be recognized in light of the percentage-of-completion method on the
date of the balance sheet. The percentage of completion is determined in the proportion of the accumulated actualcontract 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 berecovered, the contract revenue shall be recognized in accordance with the recoverable actual contract costs andthe contract costs shall be recognized as contract expenses in the current period they are incurred; if the contractcosts cannot be recovered, they shall be recognized as contract expenses immediately when they are incurred andno contract revenue shall be recognized. If uncertainties, due to which the outcome of a construction contractcannot be measured in a reliable way, have passed out of existence, the revenues and expenses pertinent to theconstruction 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 theexpenses for the period.The cost and the gross profit (loss) accumulatively incurred and recognized of a construction-in-progresscontract and the settled price are presented in the balance sheet with a net amount after offset. The part of the sumof the cost and the gross profit (loss) accumulatively incurred from a construction-in-progress contract exceedingover the settled contract price is presented as inventory; and the part of the settled contract price exceeding overthe cost and the gross profit (loss) accumulatively incurred from a construction-in-progress is presented asadvance payment.
(3) Recognized income of hospital business
The income of hospital mainly comes from the outpatient and inpatient departments, and the incomerecognition 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 inpatienttreatment generally, the treatment duration is short, the settlement is made with the hospital at the end of thetreatment and treatment and medicine expense is paid. Financially, such outpatient income shall be recognized atthe day of receipt.
For the inpatient income, as the patient needs to be treated in the hospital for a certain period and a part ofthe medical expense shall be prepaid when be admitted to hospital, the inpatient income shall not be recognized atthis moment. When discharging from the hospital, the patient will settle the medical expense for thehospitalization and the hospital will issue the invoice to the patient. In such case, the income from the inpatient isrecognized financially.
40. Governmental subsidy
A government subsidy means the monetary or non-monetary assets obtained free by this company from thegovernment. Government subsidies consist of the government subsidies pertinent to assets and governmentsubsidies pertinent to income.
The assets-related government subsidy refers to government subsidies that are obtained by the Companyused for purchase or construction, or forming the long-term assets by other ways. Government subsidies pertinentto 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 receivedamount or the receivable amount. If a governmental subsidy is a nonmonetary asset, it shall be measured at its fairvalue or at its nominal amount in case that the fair value cannot be reliably obtained. The governmental subsidiescalculated according to nominal amount shall be directly included in the current profits and losses.
2. Accounting treatment
Governmental subsidy related to assets will be used to write down the book value of relevant assets or beconfirmed as deferred income. If being confirmed as deferred income, the governmental subsidy will be recordedin the gain or loss of the current period within the service life of relevant assets with reasonable and systematicmethods (if being related to the Company’s daily activities, the governmental subsidy will be recorded in otherbenefits; 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 expensesor losses in later period, will be confirmed as deferred income, and be recorded in the gain or loss of the currentperiod (if being related to the Company’s daily activities, the governmental subsidy will be recorded in otherbenefits; if not, they will be recorded in non-operating income) or be used to write down relevant cost expenses orlosses during the period of confirmation on relevant cost expenses or losses; if being used to compensate theCompany’s relevant cost expenses or losses already incurred, the governmental subsidy will be directly recordedin the gain or loss of the current period (if being related to the Company’s daily activities, the governmentalsubsidy will be recorded in other benefits; if not, they will be recorded in non-operating income) or be used towrite 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 thetaxable income which will probably be obtained in future period and be used to offset deductible temporarydifference. As for deductible losses and taxes rebate which could be carried forward to later years, correspondingdeferred income tax assets will be confirmed within the limit of the future taxable income which will probably beobtained to offset deductible losses and taxes.
For taxable temporary difference, deferred income tax liabilities will be confirmed except for under specialcircumstances.
The special circumstances under which deferred income tax assets or deferred income tax liabilities are notconfirmed include: the initial confirmation of goodwill; other transactions or matters (except for businesscombination) 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 assetswith net amount, and the discharge of debts is conducted simultaneously, the income tax assets of the currentperiod 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 taxliabilities of the current period with net amount, and the deferred income tax assets and deferred income taxliabilities are related to the income tax levied by a same tax administration department from a same tax paymentsubject, or are related to different tax payment subjects, but in every important period when deferred income taxassets and liabilities are transferred back in future, if the tax payment subjects involved intend to settle the incometax assets and liabilities of the very period with net amount or to obtain assets and discharge liabilitiessimultaneously, deferred income tax assets and deferred income tax liabilities will be presented with the netamount after offsetting.
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 thewhole lease term including the rent-free period, and recorded in the expense of the current period. The initialdirect expenses paid by the Company and related to leasing transaction will be recorded in the expense of thecurrent period.
If the asset lessor undertakes the lease-related expenses which shall be assumed by the Company, theCompany shall deduct such expenses from the total rent, amortize the remained rent within the lease term, andrecord it in the expense of the very period.
(2) The rent collected by the Company for leasing out assets will be amortized with straight-line methodwithin the whole lease term including the rent-free period, and confirmed as lease-related income. The initialdirect expenses paid by the Company and related to leasing transaction will be recorded in the expense of the veryperiod; if the amount is relatively big, the amount will be capitalized, and will be recorded in the income of thevery period by installments within the whole lease term on the basis same as that for confirmation of lease-relatedincome.
If the Company undertakes lease-related expenses which shall be undertaken by the lessee, the Companywill deduct such expenses from the total amount of rent income, and distributed the remained rent expense withinthe 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 fairvalue of rented assets and the present value of minimum rent payment, whichever is lower, as the entry value ofrented assets, takes the minimum rent payment as the entry value of long-term accounts payable, and takes thebalance as non-confirmed financing expense. The Company adopts actual interest rate method to amortize thenon-confirmed financing expenses within the asset lease term, and records them in financial expenses. TheCompany 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 thebalance between “the sum of finance lease account receivable and non-guaranteed balance” and their presentvalue as non-realized financing income, and confirms it as lease income within each future period when rents arereceived. The Company records the initial direct expenses related to leasing transaction in the initial measuredamount 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
(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 StandardsGoverning Financial Instruments, Revenue or Leases
□ Applicable √ Not applicable
(4)Retrospective Restatement of Previous Comparative Data due to the First Execution of any New StandardsGoverning 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 on the difference after deducting the input tax that is allowed to be deducted in the current period | 0%,3%,6%,11%,17% |
Urban maintenance and construction tax | Paid as per 7%, 5% and 1% of the turnover tax paid actually. | 7%,5%,1% |
Enterprise income tax | Paid as per 15% and 25% of taxable income | 15%,25% |
Educational surtax | Paid as per 3% of the turnover tax paid actually. | 3% |
Local educational surtax | Paid as per 2% of the turnover tax paid actually. | 2% |
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% |
Sino Zhigu Industrial (Yueyang) Co., Ltd. | 25% |
Sino Great Wall Guangxia (Wuhan) Medical Development Co., Ltd. | 25% |
Sino Great Wall Infrastructure Investment Co., Ltd. | 25% |
Wuhan Commercial Workers Hospital LLC | 25% |
Sino Great Wall Medical Investment Management Co., Ltd. | 25% |
Sino Great Wall International Engineering Co., Ltd. | 15% |
Fujian Sino Great Wall Mingyihui Medical Investment Co., Ltd. | 25% |
Sino Great Wall Medical Investment (Hubei) Co., Ltd. | 25% |
Hubei Yuanyaotong Supply Chain Co., Ltd. | 25% |
Sino Great Wall Medical Management (Inner Mongolia) Co., Ltd. | 25% |
Sino Great Wall Health Management (Jiangsu) Co., Ltd. | 25% |
Sino Great Wall (Beijing) Investment Fund Management 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 Man International Engineering Limited | 12% |
Sino Great Wall (HK) Property Co., Limited | 17% |
SGW HPEngineeringConstructionSDN.BHD | 24% |
SGW VENTURES SDN.BHD. | 24% |
SGW CONSTRUCTION (LANGKAWI) SDN.BHD. | 24% |
SINO GREAT WALL GENERAL TRADING & CONTRACTING CO.LTD | 15% |
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 Engineering Co.,Ltd | 0% |
Inrich Me Engineering Co,.Ltd | 17% |
SINO | GREAT |
Sino Great WallInternationalEngineering(Thailand) Co.,Ltd. | 20% |
Sino Great Wall International Engineering(CNMI) Co.,LLC. | 21% |
SINO GREAT WALL(USA).INC | 21% |
PT.SINO GREAT WALL INVESTMENT INDONESIA | 25% |
PT.SINO GREAT WALL CONSTRUCTION INDONESIA | 25% |
Anshun Sino Great Wall Real Estate Development and Construction Co., Ltd. | 25% |
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., Ltd. | 25% |
Weifang Sino Great Wall Medical care and Health Industry Co., Ltd. | 25% |
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 Management Co., Ltd. | 25% |
Sino Boda (Zhanjiang) Industrial Co., Ltd. | 25% |
Sino Great Wall Industrial (Chongqing) Co., Ltd. | 25% |
Sino Great WallDecoration Engineering (Beijing) Co., Ltd. | 25% |
2. Tax Preferences
(1) As verified by Beijing Municipal Office, SAT in 2013 as per Tax Category Verification Notice, thetaxable income of Sino Great Wall Design shall be 10% of the total income.
(2) According to provisions in Notice of the State Administration of Taxation on Several Issues Concerningthe Administration of Collection of Income Tax of Enterprises Operating Business across Different Regions andPaying Taxes on a Consolidated Basis (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 businessacross China without the legal personality (i.e. running production and operation activity across regions) shall bedeemed as the enterprise for consolidated taxation. If the parent Company adopt the consolidated taxation methodand the head office and the branches intend to prepay the enterprise income tax by stages, 50% of such taxes shallbe amortized to the branches and prepaid, while the other 50% shall be prepaid by the head office. Theamortization ratio of each branch shall be 0.35:0.35:0.30 among the operating income, the staff salary and the totalassets of each; the final settlement of annual corporate income tax shall be made to the tax authority by the parentCompany and shall never amortized to the branches.
(3) Sino Great Wall Group Co., Limited (hereinafter referred to as “Sino Hong Kong”) and Inrich MeEngineering Co., Ltd. (hereinafter referred to as “Inrich Me”) under the subsidiary Company of the Company areenterprises established in the Hong Kong Special Administrative Region, which shall pay the enterprise profit taxat the rate of 16.5%. SINO GREAT WALL INTERNATIONAL ENGINEERING (MACAU) CO., LIMITED(hereinafter referred to as “SINO MACAU”) is an enterprise established in the Macao Special AdministrativeRegion, 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 & NewTechnological Enterprise on November 24, 2015 which was jointly approved and issued by Beijing MunicipalScience & Technology Commission, Beijing Finance Bureau, Beijing Municipal Office, SAT and Beijing LocalTaxation 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 shallpay 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 forComprehensive Implementation of Business Tax Replaced by Value-added Tax (CS (2016) No.36), WuhanCommercial Workers Hospital LLC, the wholly-owned subsidiary Company of the Company was entitled to thepreferential 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 forImplementing across the Country the Pilot Program of Levying Value-Added Tax in Lieu of Business Tax on theTransportation Industry and Some Modern Service Industries (CS (2012) No.71) on July 31, 2012, the designbusiness of Sino Great Wall Decoration and Design Co., Ltd. (hereinafter referred to as the “Sino Great WallDesign”) under the subsidiary Company of the Company was changed to taxable item of value-added tax from thethat of the business tax with the value-added tax rate of 3% since September 1, 2012 and Sino Great Wall Designwas deemed as the small-scale taxpayer.
VII. Notes to Items in Consolidated Financial Statements
1.Monetary Resources
In RMB
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 funds | 16,550,177.27 | 51,902,846.57 |
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 guarantee | 3,024,675.00 | 100,024,675.00 |
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 RMB
Items | Ending balance | Opening balance |
Of which : | ||
Of which: |
Other notes
3. Derivative financial assets
In RMB
Items | Ending balance | Opening balance |
Other notes
4. Notes receivable
1) Classified Presentation of Notes Receivable
In RMB
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 RMB
Category | Ending balance | Opening balance | ||||||||
Book balance | Bad debt reserve | Book value | Book balance | Bad debt reserve | Book value | |||||
Amount | Proportion | Amount | Withdrawal proportion | Amount | Proportion | Amount | Withdrawal proportion | |||
Of which : | ||||||||||
Of which: |
Accrual of bad debt provision by single item:
In RMB
Name | Ending balance | |||
Book balance | Bad debt reserve | Withdrawal proportion | Reason |
Accrual of bad debt provision by portfolio:
In RMB
Name | Ending balance | |||
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 ofother receivables if the provision for bad debts of bills receivable is accrued according to the general model ofexpected credit loss:
□ Applicable √ Not applicable
(2) Accounts receivable withdraw, reversed or collected during the reporting periodThe withdrawal amount of the bad debt provision:
In RMB
Category | Opening balance | Amount of change in the current period | Closing balance | ||
Accrual | Reversed or collected amount | Write-off |
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 RMB
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 ComingDue Yet on the Date of Balance Sheet
In RMB
Items | Confirmation-terminated amount at the end of period | Non-confirmation-terminated amount at 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 RMB
Items | End-of-period arrears among the receivables |
Other notes
(6)The actual write-off of notes receivable for the current period
In RMB
Items | Amount |
The important notes receivable write-off situation:
In RMB
Name | Nature | Amount | Reason | Write-off procedures performed | Whether the money is generated by the associated transaction |
Notes:
5.Accounts receivable
1) Classified Disclosure of Accounts Receivable
In RMB
Category | Ending balance | Opening balance | ||||||||
Book balance | Bad debt reserve | Book value | Book balance | Bad debt reserve | Book value | |||||
Amount | Proporti | Amount | Withdra | Amount | Proporti | Amount | Withdra |
on | wal proportion | on | wal proportion | |||||||
Accrual of bad debt provision by single item | 717,766,987.33 | 15.16% | 287,106,794.93 | 40.00% | 430,660,192.40 | 716,094,881.32 | 13.72% | 286,437,952.53 | 40.00% | 429,656,928.79 |
Of which: | ||||||||||
Accrual of bad debt provision by portfolio | 4,018,055,348.21 | 84.84% | 1,180,583,623.65 | 29.38% | 2,837,471,724.56 | 4,503,309,614.80 | 86.28% | 730,372,285.35 | 16.22% | 3,772,937,329.45 |
Of which: | ||||||||||
Total | 4,735,822,335.54 | 100.00% | 1,467,690,418.58 | 69.38% | 3,268,131,916.96 | 5,219,404,496.12 | 100.00% | 1,016,810,237.88 | 56.22% | 4,202,594,258.24 |
Accrual of bad debt provision by single item:287106794.93
In RMB
Accounts receivable (per unit) | Ending balance | |||
Accounts receivable | Bad debt reserve | Withdrawal proportion | Reasons for withdrawal | |
China Harbor Engineering Company Ltd. | 717,766,987.33 | 287,106,794.93 | 40.00% | Shutdown for the project of Military Academy, Ministry of National Defense |
Total | 717,766,987.33 | 287,106,794.93 | -- | -- |
Accrual of bad debt provision by single item
In RMB
Accounts receivable (per unit) | Ending balance | |||
Accounts receivable | Bad debt reserve | Withdrawal proportion | Reasons for withdrawal |
Accrual of bad debt provision by single item
In RMB
Accounts receivable (per unit) | Ending balance | |||
Accounts receivable | Bad debt reserve | Withdrawal proportion | Reasons for withdrawal |
Accrual of bad debt provision by portfolio
In RMB
Accounts receivable (per unit) | Ending balance | |||
Accounts receivable | Bad debt reserve | Withdrawal proportion | Reasons for withdrawal |
Notes:
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method ofother receivables if the provision for bad debts of bills receivable is accrued according to the general model ofexpected credit loss:
□ Applicable √ Not applicable
Disclosure by aging
In RMB
Aging | Closing balance |
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 IndustryInformation Disclosure Guide No. 7 - Listed Companies Engaged in Civil Engineering Construction Business.
(2) Accounts receivable withdraw, reversed or collected during the reporting periodThe withdrawal amount of the bad debt provision:
In RMB
Category | Opening balance | Amount of change in the current period | Closing balance | ||
Accrual | Reversed or collected amount | Write-off |
Of which the significant amount of the reversed or collected part during the reporting period
In RMB
Items | Reversed or collected amount | Method |
(3)The current accounts receivable written-offs situation
In RMB
Items | Amount written-offs |
Account receivables actually written-offs during the reporting period:
In RMB
Name | Nature of account receivable | Amount written-off | Reason for written -off | Verification procedures | Arising form related transactions(Y/N) |
Notes:
(4)The ending balance of account receivables owed by the imputation of the top five parties
Unit name | Ending balance | ||
Accounts receivable | Proportion to total accounts receivable (%) | Bad debt reserve | |
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 Company | 297,332,124.14 | 6.28% | 124,190,740.45 |
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 accountsreceivableOther note:
6. Financing of receivables
In RMB
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 will be disclosed with reference to the disclosure method ofother 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 RMB
Aging | Items | Ending balance | |||
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 company | Ending balance | Proportion to the total ending balance of advance payments (%) | Advance payment time | Reasons for not settlement |
Jiangsu Juye Jianshe Group Co., Ltd. | Subcontractor | 37,132,752.13 | 11.38% | Within 3 years | Advance payment for subcontracted project |
Zhongcheng Jianye Construction Co., Ltd. | Subcontractor | 31,356,742.06 | 9.61% | Within 2 years | Advance payment for subcontracted project |
Shandong Zhiyuan Building Installation Engineering Co., Ltd. | Subcontractor | 20,819,043.44 | 6.38% | Within 2 years | Advance payment for subcontracted project |
Hangzhou Banwang Construction Labour service Co., Ltd. | Subcontractor | 18,343,409.89 | 5.62% | Within 2 years | Advance payment for subcontracted project |
Longyan City Hengda Engineering Co., Ltd. | Subcontractor | 9,823,258.74 | 3.01% | Within 2 years | Advance payment for subcontracted project |
Total | 117,475,206.26 | 36.00% |
Other notes:
8. Other accounts receivable
In RMB
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 |
(1)Interest receivable
1) Classification of interest receivable
In RMB
Items | Ending balance | Opening balance |
2) Important overdue interest
In RMB
Borrowing unit | Ending balance | Overdue time | Overdue reason | Whether impairment occurs and the basis for its judgment |
Other notes:
3)Bad-debt provision
□ Applicable √ Not applicable
(2)Dividends receivable
1)Dividends receivable
In RMB
Items(or the invested unit) | Ending balance | Opening balance |
2) Important dividends receivable over one year of account age
In RMB
Items (or the invested unit) | Ending balance | Account age | Reason for not recycling | Whether impairment occurs and the basis for its judgment |
3)Bad-debt provision
□ Applicable √ Not applicable
Other notes:
(3)Other accounts receivable
1) Classified Disclosure of Other Accounts Receivable
In RMB
Nature | Closing book balance | Opening book balance |
Other accounts receivables that are individually significant and for which individual bad debt reserves are withdrawn | 20,402,980.00 | 22,402,980.00 |
Other accounts receivable with bad debt reserve withdrawn as per the portfolio of credit risk characteristics | 1,880,687,952.40 | 2,341,177,867.34 |
Other accounts receivable with insignificant single amount and having bad debt reserve withdrawn separately | 2,963,005.73 | |
Total | 1,901,090,932.40 | 2,366,543,853.07 |
2)Bad-debt provision
In RMB
Bad Debt Reserves | Stage 1 | Stage 2 | Stage 3 | Total |
Expected credit losses over the next 12 months | Expected credit loss over life (no credit impairment) | Expected credit losses for the entire duration (credit 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 RMB
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 periodThe withdrawal amount of the bad debt provision:
In RMB
Category | Opening balance | Amount of change in the current period | Closing balance | |
Accrual | Reversed or collected amount |
Of which the significant amount of the reversed or collected part during the reporting period
In RMB
Items | Reversed or collected amount | Method |
4) Other Receivables with Actual Verification in the Reporting Period
Items | Amount |
Important cancelation after verification of other accounts receivable:
In RMB
Unit name | Nature of other accounts receivable | Amounts cancelled after verification | Reasons for cancelation after verification | Procedures performed for cancelation after verification | Whether the payment is generated by related transactions |
Other
5) Top 5 of the closing balance of the other accounts receivable collected according to the arrears party
In RMB
Name | Nature | Closing balance | Aging | Proportion of the total year end balance of the accounts receivable | Closing balance of bad debt provision |
Longyan City Hengda Engineering Co., Ltd. | Intercourse funds of the organization | 338,357,011.98 | Within 2 years | 17.80% | 32,234,196.76 |
POWERCHINA Construction Group Ltd. | Intercourse funds of the organization | 251,345,988.90 | 1-2 years | 13.22% | 25,134,598.89 |
Yueyang Public Resource Trading Center | Tender bond | 131,500,000.00 | 2-3 years | 6.92% | 39,450,000.00 |
Hebei Xuxing Industrial Co., Ltd. | Tender bond | 55,000,000.00 | 1-2 years | 2.89% | 5,500,000.00 |
China Harbor Engineering Company Ltd. | Intercourse funds of the organization | 54,300,929.28 | Within 4 years | 2.86% | 17,527,531.41 |
Total | -- | 830,503,930.16 | -- | 43.69% | 119,846,327.06 |
(6) Accounts receivable involved with government subsidies
In RMB
Name | Name of government subsidy project | Closing balance | Closing aging | Estimated time, amount and basis of collection |
(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 accountsreceivable
Other note:
9.Inventory
Whether implemented new revenue guidelines
□ Yes √No
(1)Category of Inventory
In RMB
i | Ending balance | Opening balance | ||||
Book balance | Depreciation reserve | Book value | Book balance | Depreciation reserve | Book value | |
Raw materials | 98,275.30 | 98,275.30 | 110,557.92 | 110,557.92 | ||
Merchandise inventory | 3,325,663.17 | 3,325,663.17 | 10,708,600.50 | 10,708,600.50 | ||
Completed and unsettled assets formed by the construction contract | 965,637,960.46 | 4,354,226.05 | 961,283,734.41 | 678,132,183.22 | 4,354,226.05 | 673,777,957.17 |
Development costs | 30,299,350.36 | 30,299,350.36 | 30,299,350.36 | 30,299,350.36 | ||
Others | 2,067,436.21 | 2,067,436.21 | 2,635,112.28 | 2,635,112.28 | ||
Total | 1,001,428,685.50 | 4,354,226.05 | 997,074,459.45 | 721,885,804.28 | 4,354,226.05 | 717,531,578.23 |
Whether the company shall comply with the disclosure requirements of the Shenzhen Stock Exchange IndustryInformation Disclosure Guide No. 4 - Listed Companies Engaged in the Seed Industry and Planting Business
No
(2)Depreciation Reserve of Inventories
In RMB
Items | Opening balance | Amount increased of current period | Amount decreased of current period | Ending balance | ||
Withdrawn | Others | Transferred-back or written-off | Others | |||
Completed and | 4,354,226.05 | 4,354,226.05 |
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 RMB
Items | Amount |
Aggregate costs incurred | 18,832,783,056.38 |
Aggregate gross profits acknowledged | 4,350,050,237.36 |
Minus: estimated losses | 4,354,226.05 |
Amount settled | 22,217,195,333.28 |
Completed and unsettled assets formed by the construction contract | 961,283,734.41 |
Other description:
10.Contact assets
In RMB
Items | Ending balance | Opening balance | ||||
Book balance | Depreciation reserve | Book value | Book balance | Depreciation reserve | Book value |
The amount and reasons of major changes in the book value of the contract assets during the current period:
In RMB
Items | Amount | Reason |
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method ofother receivables if the provision for bad debts of bills receivable is accrued according to the general model ofexpected 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
In RMB
Items | Ending carrying amount | Impairment provision | Ending carrying value | Fair value | Estimated disposal cost | Estimated disposal time |
Other notes:
12. Non-current Assets Due Within One Year
In RMB
Items | Ending balance | Opening balance |
Important creditor's rights investment / other creditor's rights investment
Items
Items | Ending balance | Opening balance | ||||||
Face value | Rate | Actual rate | Due date | Face value | Rate | Actual rate | Due 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 RMB
Items | Ending balance | Opening balance | ||||
Book balance | Depreciation reserve | Book value | Book balance | Depreciation reserve | Book value |
Important creditor's rights investment
In RMB
Items | Ending balance | Opening balance | ||||||
Face value | Rate | Actual rate | Due date | Face value | Rate | Actual rate | Due date |
2)Bad-debt provision
In RMB
Bad Debt Reserves | Stage 1 | Stage 2 | Stage 3 | Total |
Expected credit losses over the next 12 months | Expected credit loss over life (no credit impairment) | Expected credit losses for the entire duration (credit 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 RMB
Items | Opening balance | Accrued interest | Change of fair value in the period | Closing balance | Cost | Cumulative changes of fair value | Cumulative loss impairment recognized in other comprehensive income | Remark |
Important other creditors' investment
In RMB
Other creditors' investment | Closing | Opening balance | ||||||
Face value | Rate | Actual rate | Due date | Face value | Rate | Actual rate | Due date |
Accrual of impairment provision
In RMB
Bad Debt Reserves | Stage 1 | Stage 2 | Stage 3 | Total |
Expected credit losses over the next 12 months | Expected credit loss over life (no credit impairment) | Expected credit losses for the entire duration (credit 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:
16. Long-Term Accounts Receivable
(1)Long-Term Accounts Receivable
In RMB
Items | Ending balance | Opening balance | Range of discount rate | ||||
Book balance | Bad debt reserve | Book value | Book balance | Bad debt reserve | Book value | ||
Long-Term Accounts Receivable | 16,708,613.19 | 16,708,613.19 | 16,708,613.19 | 16,708,613.19 | |||
Total | 16,708,613.19 | 16,708,613.19 | 16,708,613.19 | 16,708,613.19 | -- |
Provision for bad debts
In RMB
Bad Debt Reserves | Stage 1 | Stage 2 | Stage 3 | Total |
Expected credit losses over the next 12 months | Expected credit loss over life (no credit impairment) | Expected credit losses for the entire duration (credit 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-termaccounts receivableOther notes
17. Long-term equity investment
In RMB
Investees | Opening balance | Increase /decrease | Closing balance | Closing balance of impairment provisi | |||||||
Additional investment | Other comprehensive income | Changes in other equity | Cash bonus or profits announ | Withdrawal of impairment provisi | Other |
ced to issue | on | on | |||||||||
I. Joint ventures | |||||||||||
II. Associates | |||||||||||
Sino Great Wall Zhihui Housing Property (Zhanjiang) Co., Ltd. | 23,579,171.71 | 23,579,171.71 | |||||||||
Cenang Resort Sdn Bhd | 83,258,639.12 | 83,258,639.12 | |||||||||
III. Subsidiary | |||||||||||
AlorVista Development Sdn Bhd | |||||||||||
Subtotal | 106,837,810.83 | 106,837,810.83 | |||||||||
Total | 106,837,810.83 | 106,837,810.83 |
Other notes
18. Other equity instruments investment
In RMB
Items | Closing balance | Opening balance |
Itemized disclosure of the current non - trading equity instrument investment
In RMB
Name | Recognized dividend income | Accumulating gains | Accumulating losses | Amount of other comprehensive income transferred to retained earning | Reasons for being measured at fair value and whose changes are included in other comprehensive income | Reasons for other comprehensive income transferred to retained earnings |
Other notes:
19.Other non-current assets
In RMB
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 RMB
Items | Book value | Reason(s) for the failure to transact the certificate of title |
Other notesNil
21、Fixed Assets
In RMB
Items | Ending balance | Opening balance |
Fixed assets | 139,240,017.20 | 158,746,947.91 |
Total | 139,240,017.20 | 158,746,947.91 |
(1)Fixed assets
In RMB
Items | Houses and buildings | Mechanical equipment | Transportation Equipment | Other equipment | Total |
I. Original book value | |||||
1. Opening balance | 103,337,960.18 | 105,070,825.25 | 39,040,693.58 | 13,950,128.70 | 261,399,607.71 |
2. Amount increased of current period | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
(1)Purchase | 0.00 | ||||
(2)Transfer-in of construction in progress | 0.00 | ||||
(3)Increase of business combination | 0.00 | ||||
3. Amount decreased of current period | 10,065,112.19 | 357,460.55 | 396,747.61 | 6,487.19 | 10,825,807.54 |
(1)Disposal or retirement | 10,065,112.19 | 357,460.55 | 396,747.61 | 6,487.19 | 10,825,807.54 |
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 balance | 29,794,321.47 | 40,732,183.08 | 20,451,855.15 | 11,674,300.10 | 102,652,659.80 |
2. Amount increased of current period | 3,518,948.30 | 4,651,651.97 | 1,983,275.87 | 220,350.79 | 10,374,226.94 |
(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 current period | 1,283,786.57 | 163,538.61 | 240,964.75 | 4,813.84 | 1,693,103.77 |
(1)Disposal or retirement | 1,283,786.57 | 163,538.61 | 240,964.75 | 4,813.84 | 1,693,103.77 |
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 value | 61,243,364.79 | 59,493,068.26 | 16,449,779.70 | 2,053,804.46 | 139,240,017.20 |
2. Opening book value | 73,543,638.71 | 64,338,642.17 | 18,588,838.43 | 2,275,828.60 | 158,746,947.91 |
(2)Temporarily idle fixed assets
In RMB
Items | Original book value | Accumulative depreciation | Depreciation reserve | Book value | Note |
(3)Fixed asset rented through financing lease
In RMB
Items | Original book value | Accumulative depreciation | Depreciation reserve | Book value |
House buildings | 11,152,810.36 | 10,560,357.40 | 592,452.96 | |
Mechanical equipment | 34,196,914.00 | 21,048,715.53 | 13,148,198.47 |
Total | 45,349,724.36 | 31,609,072.93 | 13,740,651.43 |
(4)Fixed assets leased through operating leases
In RMB
Items | Ending book value |
(5)Fixed assets with the certificate of title not transacted
In RMBn
Items | Book value | Reason(s) for the failure to transact the certificate of title |
Other notes
(6)Disposal of fixed assets
In RMB
Items | Ending balance | Opening balance |
Other notes22.Construction in Progress
In RMB
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 RMB
Items | Ending balance | Opening balance | ||||
Book balance | Depreciation reserve | Book value | Book balance | Depreciation reserve | Book value | |
Equipment and Construction in progress | 36,805,894.03 | 36,805,894.03 | 36,697,284.04 | 36,697,284.04 | ||
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 RMB
Name of items | Budget amount | Opening balance | Amount increased of current period | Amount transferred into fixed assets in current period | Other amount decreased in current period | Ending balance | Proportion of accumulative project input to the budget | Project progress | Accumulative amount of interest capitalization | Including: Amount of interest capitalization in the current period | Current interest capitalization rate | Capital source |
Liangdu Central Hospital of Liupanshui City (tentative name) medical and nursing integration project | 509,320,300.00 | 5,001,448.94 | 5,001,448.94 | Other | ||||||||
PPP project of the north coast landscape engineering of Huanbaiyang Lake (Centr | 10,909,100.00 | 8,476,351.41 | 8,476,351.41 | 67% | Other |
al Lake), PPP project of Baiyang Lake Headquarters Economic Port, Xingang District, Chenglingji, Hunan Province | ||||||||||||
Construction Project of Radio and Television Media Activity Center, Chengwu County | 80,042,900.00 | 15,792,351.48 | 15,792,351.48 | 13% | Other | |||||||
Total | 600,272,300.00 | 29,270,151.83 | 29,270,151.83 | -- | -- | -- |
(3)Impairment provision of project under construction withdrawn in the period
In RMB
Items | Current withdrawal amount | Reason for withdrawal |
Other notes
(4)Engineering materials
In RMB
Items | Ending balance | Opening balance | ||||
Book balance | Depreciation reserve | Book value | Book balance | Depreciation reserve | Book value |
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 RMB
Items | Total |
Other notes:
26. Intangible Assets
(1)Intangible Assets
In RMB
Items | Land use right | Patent right | Non-patent technology | Software | Total |
I. Original price | |||||
1. Balance at | 108,621,002.59 | 4,551,469.92 | 113,172,472.51 |
period-beginning | |||||
2.Increase in the current period | |||||
(1) Purchase | |||||
(2)Internal R & D | |||||
(3)Increased of Enterprise Combination | |||||
3.Decreased amount of the period | 7,714,044.00 | 7,714,044.00 | |||
(1)Disposal | 7,714,044.00 | 7,714,044.00 | |||
4. Balance at period-end | 100,906,958.59 | 4,551,469.92 | 105,458,428.51 | ||
II. Accumulated amortization | |||||
1. Balance at period-beginning | 9,743,123.91 | 3,508,096.93 | 13,251,220.84 | ||
2. Increase in the current period | 1,528,598.52 | 289,109.57 | 1,817,708.09 | ||
(1) Withdrawal | 1,528,598.52 | 289,109.57 | 1,817,708.09 | ||
3.Decreased amount of the period | 647,151.49 | 647,151.49 | |||
(1)Disposal | 647,151.49 | 647,151.49 | |||
4. Balance at period-end | 10,624,570.94 | 3,797,206.50 | 14,421,777.44 | ||
III. Impairment provision | |||||
1. Balance at period-beginning | |||||
2. Increase in the current period |
(1) Withdrawal | |||||
3.Decreased amount of the period | |||||
(1)Disposal | |||||
4. Balance at period-end | |||||
4. Book value | |||||
1.Book value at period -end | 90,282,387.65 | 754,263.42 | 91,036,651.07 | ||
2.Book value at period-beginning | 98,877,878.68 | 1,043,372.99 | 99,921,251.67 |
The proportion of ending intangible assets generated via internal R&D of the Company in the balance ofintangible assets.
(2)Conditions of land use right with incomplete certificates of title
In RMB
Items | Book value | Reason(s) for the failure to transact the certificate of title |
Other notes:
27. Development Expenditure
In RMB
Items | Opening balance | Amount increased of current period | Amount decreased of current period | Ending balance |
Other notes
28. Goodwill
(1) Original book value of goodwill
In RMB
Name of invested units or the matters forming | Opening balance | Amount increased of current period | Amount decreased of current period | Ending balance |
goodwill | ||||||
Wuhan Commercial Workers Hospital LLC | 27,257,314.49 | 27,257,314.49 | ||||
Sino Great Wall Southwest Engineering Co., Ltd. | 17,948,978.53 | 17,948,978.53 | ||||
SAFAT GULF GENERAL TRADING & CONTRACTING COMPANY | 5,547,635.00 | 5,547,635.00 | ||||
Far eastern international engineering Company,LLC | 10,920.04 | 10,920.04 | ||||
Total | 50,764,848.06 | 50,764,848.06 |
(2) Depreciation Reserve of Goodwill
In RMB
Name of invested units or the matters forming goodwill | Opening balance | Amount increased of current period | Amount decreased of current period | Ending balance | ||
Sino Great Wall Southwest Engineering Co., Ltd. | 17,948,978.53 | 17,948,978.53 | ||||
SAFAT GULF GENERAL TRADING & CONTRACTING COMPANY | 5,547,635.00 | 5,547,635.00 | ||||
Total | 23,496,613.53 | 23,496,613.53 |
Company decides to record full goodwill impairment.
Description of process of goodwill impairment test, key factors (including estimated growth rate at the time offuture cash flow value estimation, growth rate during the stable period, profit rate, discount rate and) and themethod to confirm the loss of goodwill impairment:
Influences of goodwill impairment testOther notes
29. Long-term deferred expense
In RMB
Items | Opening balance | Amount increased of current period | Amount amortized of current period | Other amount decreased | Ending balance |
Decorate cost | 4,076,589.98 | 2,632,913.41 | 1,443,676.57 | ||
Overseas fees for letter of guarantee | 1,191,474.19 | 862,611.96 | 328,862.23 | ||
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 RMB
Items | Ending balance | Opening balance | ||
Deductible temporary difference | Deferred Income Tax Assets | Deductible temporary difference | Deferred Income Tax Assets | |
Asset depreciation reserve | 740,943,807.98 | 117,317,681.38 | 700,024,233.95 | 107,117,209.33 |
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 RMB
Items | Ending balance | Opening balance |
Taxable temporary difference | Deferred Income Tax Liabilities | Taxable temporary difference | Deferred Income Tax Liabilities | |
Appraised increment of assets for business combination not under the same control | 94,038,813.64 | 23,509,703.41 | 97,477,824.72 | 24,369,456.18 |
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 RMB
Items | Offset amount of deferred tax assets and liabilities at the end of a period | Balance of deferred tax assets and liabilities at the end of a period | Offset amount of deferred tax assets and liabilities at the beginning of a period | Balance of deferred tax assets and liabilities at the beginning of a period |
Deferred Income Tax Assets | 117,317,681.38 | 117,983,727.91 | ||
Deferred Income Tax Liabilities | 23,509,703.41 | 24,369,456.18 |
(4) Details of unconfirmed deferred income tax assets
In RMB
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 RMB
Year | Ending balance | Opening balance | Note |
Other notes:
31. Other non-current assets
Whether implemented new revenue guidelines
□ Yes √No
In RMB
Items | Closing balance | Opening balance |
PPP Project investment | 664,524,570.00 | 664,524,570.00 |
Advance payment for purchasing long-term assets | 128,895,990.79 | 129,221,120.79 |
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 RMB
Items | Ending balance | Opening balance |
Pledged loan | 50,000,000.00 | |
Mortgaged 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 overduebut unpaid short-term loans are as follow:
In RMB
Borrower | Ending balance | Interest rate | Overdue period | Late payment interest rate |
Other notes:
33. Transactional financial liabilities
In RMB
Items | Ending balance | Opening balance |
Including: |
Including: |
Other notes:
34. Derivative financial liability
In RMB
Items | Ending balance | Opening balance |
Other notes:
35.Notes payable
In RMB
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 RMB
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 RMB
Items | Ending balance | Causes for non-payment or carryover |
Other notes:
Nil
37. Advance from customers
Whether implemented new revenue guidelines
□ Yes √No
(1) List of advance from customers
In RMB
Items | Closing balance | Opening balance |
Unfinished project with settled construction cost | 10,850,086.84 | |
Advance payment for project construction cost | 424,631,860.73 | 391,350,850.34 |
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 yearNil
(3) Description for unfinished project with settled construction cost due to end-of-period contract conclusion
In RMB
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 contract conclusion | 961,283,734.41 |
Other notes:
38.Contract liabilities
In RMB
Items | Closing balance | Opening balance |
Book value has major changes in the period and causes
In RMB
Items | Amount changes | Causes |
39. Payroll payable
(1) Presentation of payroll payable
In RMB
Items | Opening balance | Amount increased of current period | Amount decreased of current period | Ending balance |
I. Short-term remuneration | 20,727,897.18 | 368,573,235.31 | 303,232,214.76 | 86,068,917.73 |
2. Post-demission welfare - defined contribution plans | 345,941.13 | 4,003,990.59 | 3,952,684.39 | 397,247.33 |
Total | 86,414,858.86 | 86,340,075.20 | 97,743,709.83 | 75,011,224.23 |
(2) Presentation of short-term remuneration
In RMB
Items | Opening balance | Amount increased of current period | Amount decreased of current period | Ending balance |
1. Salary, bonus, allowance and subsidy | 84,912,841.53 | 73,510,997.06 | 86,993,040.09 | 71,430,798.50 |
2. Employees’ welfare expense | 923,582.18 | 2,354,663.97 | 2,354,663.97 | 923,582.18 |
3. Social insurance premium | 53,015.28 | 2,996,371.23 | 2,729,794.29 | 319,592.22 |
Including: Medical insurance premium | 3,281.40 | 2,746,242.13 | 2,460,037.23 | 289,486.30 |
Industrial injury insurance premium | 16,097.35 | 62,919.34 | 70,613.38 | 8,403.31 |
Maternity insurance premium | 33,636.53 | 187,209.76 | 199,143.68 | 21,702.61 |
4. Housing fund | 179,478.74 | 3,462,374.35 | 1,701,849.09 | 1,940,004.00 |
5. Labor union outlay and employees’ education outlay | 11,678.00 | 11,678.00 | 0.00 | |
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 RMB
Items | Opening balance | Amount increased of current period | Amount decreased of current period | Ending balance |
1. Basic pension insurance | 345,519.30 | 3,830,488.52 | 3,797,678.22 | 378,329.60 |
2. Unemployment insurance premium | 421.83 | 173,502.07 | 155,006.17 | 18,917.73 |
Total | 345,941.13 | 4,003,990.59 | 3,952,684.39 | 397,247.33 |
Other notes:
40. Taxes payable
In RMB
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 RMB
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 |
Total | 2,217,993,070.71 | 2,212,412,970.43 |
(1) Interest payable
In RMB
Items | Ending balance | Opening balance |
Payment of principal at maturity and interest in installments | 242,502,415.77 | 142,367,316.80 |
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 RMB
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 Branch | 6,673,461.94 | Capital shortage |
Bank of Ningbo Shenzhen Branch | 6,238,632.40 | Capital shortage |
Shenzhen Rural Commercial Bank Futian Branch | 2,466,660.02 | Capital shortage |
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 Meilin Branch | 1,036,262.79 | Capital shortage |
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 Shenzhen Center District Branch | 7,007,077.97 | Capital shortage |
Bank of Jiujiang Zhuhai Branch | 11,375,270.32 | Capital shortage |
China Minsheng Bank Shenzhen Branch | 9,053,680.23 | Capital shortage |
Shanghai Pudong Development Bank Fulicheng Subbranch | 9,995,142.09 | Capital shortage |
China Railway Trust Co., Ltd. | 4,352,544.37 | Capital shortage |
Ping'an International Financial Leasing Co., Ltd. | 1,776,839.22 | Capital shortage |
Bank of Beijing Shuangxiu Subbranch | 36,284,712.70 | Capital shortage |
Total | 463,979,714.53 | -- |
Other notes:
(2) Dividends payable
In RMB
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 RMB
Items | Ending balance | Opening balance |
Tender bond, performance bond and deposit | 59,294,032.21 | 29,414,375.04 |
Personal intercourse funds and withheld items | 252,866,721.00 | 266,550,420.26 |
Intercourse funds of the organization | 649,477,026.42 | 841,985,904.64 |
Payment for subscription of non-public offerings | 33,536.80 | |
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 RMB
Items | Ending balance | Causes for non-payment or carryover |
Other notes
42. Liabilities held for sale
Unit: Yuan
Items | Ending balance | Opening balance |
Other notes:
43. Non-current liabilities coming due within one year
In RMB
Items | Ending balance | Opening balance |
Long-term loans coming due within 1 year | 906,690,152.95 | 906,690,152.95 |
Long-term account payable coming due within 1 year | 69,029,828.60 | 69,029,828.60 |
Total | 975,719,981.55 | 975,719,981.55 |
Other notes:
44. Other current-liabilities
Whether implemented new revenue guidelines
□ Yes √No
In RMB
Items | Closing balance | Opening balance |
Changes in short-term debentures payable:
In RMB
Name | Face value | Issuance date | Maturity period | Issuance amounts | Balance at the beginning of the year | Issuance during the year | Interest at face value | Amortisation of discounts or premium | Repayment for the period | Balance at the end of the year |
Other notes:
45.Long-term borrowings
(1)Long-term term borrowings
In RMB
Items | Ending balance | Opening balance |
Guaranteed loan | 1,026,690,152.95 | 1,026,690,152.95 |
Less: Long-term loans coming due within 1 year (see Note VI, 25) | -906,690,152.95 | -906,690,152.95 |
Total | 120,000,000.00 | 120,000,000.00 |
Description for classification of long-term loans:
NoneOther description: including the range of interest rate:
Nil
46. Bonds payable
(1) Bonds payable
InRMB
Items | Ending balance | Opening balance |
First period bond financing plan of Sino Great Wall International Engineering Co., Ltd. in 2017 | 266,242,374.52 | 254,801,342.47 |
Total | 266,242,374.52 | 254,801,342.47 |
(2) Increase or decrease of bonds payable (excluding other financial instruments classified as financialliabilities, like preferred stocks and perpetual bonds, etc.)
In RMB
Bond name | Par value | Date of issue | Bond period | Issued amount | Opening balance | Issue of current period | Interests withdrawn as per par value | Amortization of premium or discount | Amount repaid of current period | Other amount decreased | Ending balance |
First period bond financing plan of Sino | 245,000,000.00 | 2017/1/31 | 2020/1/31 | 245,000,000.00 | 254,801,342.47 | 11,441,032.05 | 266,242,374.52 |
Great Wall International Engineering Co., Ltd. in 2017 | |||||||||||
Total | -- | -- | -- | 245,000,000.00 | 254,801,342.47 | 11,441,032.05 | 266,242,374.52 |
(3) Description of conversion conditions and time for convertible corporate bondsNil
(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 aperiodNilPresentation of changed situations of financial instruments including preferred stocks and perpetual bonds issuedat the end of a period
In RMB
Issued financial instruments | Opening | Amount increased of current period | Amount decreased of current period | Ending | ||||
Amount | Book value | Amount | Book value | Amount | Book value | Amount | Book value |
Description of other financial instruments classified as financial liabilitiesNilOther descriptionNil
47. Lease liability
In RMB
Items | Ending balance | Opening balance |
Other notesNil
48. Long-term payable
In RMB
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 RMB
Items | Closing balance | Opening balance |
Financing lease | 276,923.55 | 322,990.35 |
Other notesNil
(2)Specific payable
In RMB
Items | Opening balance | Increase | Decrease | Closing balance | Cause |
Other notesNil
49. Long-term employee salary payable
(1)Long-term employee salary payable
In RMB
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 RMB
Items | Amount incurred of current period | Amount incurred of last period |
Net liabilities or net assets of benefit plan measured and set up
In RMB
Items | Amount incurred of current period | Amount incurred of last period |
Explanation on the content of benefit plan set up and related risks, impact on the company’s cash flow, timing anduncertainties:
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 RMB
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 RMB
Items | Opening balance | Amount increased of current period | Amount decreased of current period | Ending balance | Reason for formation |
Projects involving governmental subsidy:
Unit: Yuan
Liability items | Opening balance | Subsidy increased over current period | Amount recorded in non-operating income over current period | Amount recorded in other benefits over current period | Cost offset expenses over current period | Other changes | Ending balance | Related to assets/Related to income |
Other notes: Nil
52. Other Non-current liabilities
Whether implemented new revenue guidelines
□ Yes √No
In RMB
Items | Ending balance | Opening balance |
Other notes:Nil
53. Capital Stock
In RMB
Opening balance | Increase/Decrease (+/-) | Ending balance | |||||
New shares issued | Shares presented for free | Shares converted from public reserve | Others | Subtotal | |||
Total amount of shares | 1,698,245,011.00 | 1,698,245,011.00 |
Other notes:
54. Other equity instruments
(1) Basic description of financial instruments including preferred stocks and perpetual bonds issued at the end of aperiodNil
(2) Presentation of changed situations of financial instruments including preferred stocks and perpetual bondsissued at the end of a period
In RMB
Issued financial instruments | Opening | Amount increased of current period | Amount decreased of current period | Ending | ||||
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 accountingmethods:
NilOther notes:
55. Capital reserve
In RMB
Items | Opening balance | Amount increased of current period | Amount decreased of current period | Ending balance |
Capital premium (capital stock premium) | -857,285,524.28 | -857,285,524.28 | ||
Other capital reserve | -441,561,015.79 | -441,561,015.79 | ||
Total | -1,298,846,540.07 | -1,298,846,540.07 |
Other description, including explanation on the reason for increase, decrease or change of current special reserve:
56. Inventory stock
In RMB
Items | Opening balance | Amount increased of current period | Amount decreased of current period | Ending balance |
Other description, including explanation on the reason for increase, decrease or change of current inventory stockNil
57. Other composite benefits
In RMB
Items | Opening balance | Amount incurred of current period | Closing balance | |||||
Amount incurred before income tax | Less:Amount transferred into profit and loss in the current period that recognied into other comprehensive income in prior period | Less:Prior period included in other composite income transfer to retained income in the current period | Less:Income tax expenses | After-tax attribute to the parent company | After-tax attribute to minority shareholder | |||
II. Other composite benefits to be re-classified as gain and loss | -50,380.95 | -5,708.23 | -56,089.18 | |||||
Balance from conversion of foreign-currency financial statements | -50,380.95 | -5,708.23 | -56,089.18 | |||||
Total of other composite benefits | -50,380.95 | -5,708.23 | -56,089.18 |
Other description, including adjustment of initial carrying amount of hedged items converted from the effectiveportion of gain or loss of cash flow hedge
58.Special reserve
In RMB
Items | Opening balance | Amount increased of current period | Amount decreased of current period | Ending balance |
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 RMB
Items | Opening balance | Amount increased of current period | Amount decreased of current period | Ending balance |
Statutory surplus reserve | 84,394,441.23 | 84,394,441.23 | ||
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 RMB
Items | Amount of current period | Amount of last period |
Undistributed profit at the end of last period before adjustment | -269,566,140.13 | 1,503,103,396.72 |
Undistributed profit at beginning of the year after adjustment | -269,566,140.13 | 1,503,103,396.72 |
Plus: Net profit attributed to the parent company’s owners in the current period | -1,416,774,391.50 | -1,704,739,736.40 |
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 AccountingStandards 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 control.
5) Undistributed profit affected by other adjustments.
61.Operating Income and Operating Cost
In RMB
Items | Amount incurred of current period | Amount incurred of last period | ||
Income | Cost | Income | Cost | |
Main 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 notes62.Taxes and Surcharge
In RMB
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 RMB
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:
64.Management Expenses
In RMB
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 amortization | 2,912,560.62 | 2,076,778.32 |
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 RMB
Items | Amount incurred of current period | Amount incurred of last period |
Other notes:
66.Financial Expenses
In RMB
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 |
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 RMB
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 income tax | 13,100.20 |
68. Investment income
In RMB
Items | Amount incurred of current period | Amount incurred of last period |
Investment yield obtained from disposal of long-term equity investments | 6,596,880.93 | 5,171,892.51 |
Proceeds from wealth management products | ||
Total | 6,596,880.93 | 5,171,892.51 |
Other notes:
69.Net exposure hedging income
In RMB
Items | Amount incurred of current period | Amount incurred of last period |
70. Gains on the changes in the fair value
In RMB
Other sources of revenue | Amount of the Current Term | Amount of the Previous Term |
Other notes:
71. Credit impairment loss
In RMB
Items | Amount of the Current Term | Amount of the Previous Term |
Other notes:
72. Losses from asset impairment
Whether implemented new revenue guidelines
□ Yes √No
In RMB
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 RMB
Source | Amount of this period | Amount of last period |
74.Non-Operating Income
In RMB
Items | Amount incurred of current period | Amount incurred of last period | Amount recorded in the non-recurring gain or loss of 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 RMB
Subsidy items | Granting subjects | Reasons | Nature/type | Whether subsidies affect gain or loss in the current period | Whether it is special subsidy | Amount incurred of current period | Amount incurred of last period | Related to assets/Related to income |
Awards for steady growth | ||||||||
Subsidy for post stabilization |
Return of handling charge on personal income tax |
Other notes:
75.Non-Operating Expenditure
In RMB
Items | Amount incurred of current period | Amount incurred of last period | Amount recorded in the non-recurring gain or loss of current period |
Loss from non-current asset retirement | 6,081.90 | ||
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 RMB
Items | Amount incurred of current period | Amount incurred of last period |
Expense of income tax in the current period | 1,810,113.67 | 18,832,808.48 |
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 RMB
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 |
tax rate | |
Influences of deductible temporary difference or deductible loss of non-confirmed deferred income tax assets in the current period | -859,752.77 |
Expense of income tax | 950,360.90 |
Other notes
77.Other Composite BenefitsFor more details, please see Notes78.Items of Cash Flow Statement(I) Cash Received Relating to Other Operating Activities
In RMB
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 funds | 209,847,070.39 | 3,587,412,932.81 |
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 RMB
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 |
Management 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
(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 RMB
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 RMB
Items | Amount incurred of current period | Amount incurred of last period |
Received company/personal financing fund | 6,362,955.91 | |
Total | 6,362,955.91 |
Description on cash received relating to other financing activities:
Nil(VI) Cash Paid Relating to Other Financing Activities
In RMB
Items | Amount incurred of current period | Amount incurred of last period |
Description on cash paid relating to other financing activities:
Nil79.Supplementary Data of Cash Flow Statement(I) Supplementary Data of Cash Flow Statement
In RMB
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 |
Depreciation of fixed assets, depreciation of oil and gas assets, and depreciation of productive biological assets | 5,258,921.41 | 12,300,753.00 |
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 is represented with “-”) | -570,793.76 | |
Financial expenses (income represented with “-”) | 325,054,182.14 | 145,939,925.19 |
Investment loss (income represented with “-”) | -6,596,880.93 | -5,171,892.51 |
Decrease of deferred income tax assets (increase represented with “-”) | 666,046.53 | 1,167,618.96 |
Increase of deferred income tax liabilities (decrease represented with “-”) | -859,752.77 | 25,805,916.90 |
Decrease of inventories (increase represented with “-”) | -279,542,881.22 | -175,020,420.56 |
Decrease of operating items receivable (increase represented with “-”) | 1,049,692,358.27 | 628,339,650.86 |
Increase of operating items payable (decrease represented with “-”) | -667,168,404.54 | 310,326,783.14 |
Net amount of cash flow from operating activities | -422,152,026.80 | 1,098,164,365.63 |
2. Major 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 equivalents | -66,246,078.33 | -389,203,669.48 |
(II) Net Amount of Cash Paid for Acquisition of Subsidiaries in Current Period
In RMB
Amount | |
Of which: | -- |
Of which: | -- |
Of which: | -- |
Other notes:
(III) Net Amount of Cash Received from Disposal of Subsidiaries in Current Period
In RMB
Amount | |
Of which: | -- |
Of which: | -- |
Of which: | -- |
Other notes:
(IV) Composition of Cash and Cash Equivalents
In RMB
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 anytime | 56,090,090.81 | 252,595,053.91 |
III. Ending balance of cash and cash equivalents | 59,521,718.55 | 125,767,796.88 |
Other notes:
80.Notes to Items in Statement of Changes in Owner’s EquityExplain names of "other" items that adjust the ending balance of last year and the amount adjusted and otheritems:
81.Assets with Ownership or Use Right Restricted
In RMB
Items | Ending book value | Reason for restriction |
Monetary 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 RMB
Items | Ending balance in foreign currency | Exchange rate for conversion | Ending balance in RMB after conversion |
Monetary 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 |
Maldivian 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, Malaysia | 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, Malaysia | 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 |
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, Malaysia | 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, Malaysia | 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, Malaysia | 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 |
Ringgit, Malaysia | 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 ShouldDisclose Their Main Business Place, Recording Currency and the Basis for Selection; Reasons for Changes in theRecording Currency Should Also Be Disclosed.
√ Applicable □ Not applicable
83.HedgingDisclosure of hedging items and related hedging instruments and qualitative and quantitative information onhedged risks in accordance with the hedging category:
84.Governmental Subsidy(I) Basic Facts about Governmental Subsidies
In RMB
Type | Amount | Presented items | Amount recorded in the gain or loss of the current period |
(II) Refund of Governmental Subsidy
□ Applicable √ Not applicable
Other notes:
85.Other
VIII. Change of Combination Scope(I) Business Combination not under the Same Control
1. Business combination not under the same control in current term:
In RMB
Name of the purchased party | Time point of equity acquisition | Cost of equity acquisition | Proportion of equity acquired | Way to acquire the stock equity | Date of purchasing | Basis for determining the date of purchasing | The purchased party’s income from the date of purchasing to | The purchased party’s net profit from the date of purchasing to |
the end of term | the end of 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 RMB
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 purchasingIs there such transaction that realizes combination through several steps of transactions and obtains control rightduring reporting period?
□ Yes √ No
5. Relevant descriptions for failure to reasonably determine combination consideration and fair value ofidentifiable assets and liabilities of the purchased party on the purchasing date or at the end of current combinationterm.
6. Others
(II) Business Combination under the Same Control
1. Business combination under the same control in current term
In RMB
Name of the combined party | Proportion of gained equities during the combination. | Basis for business combination under the same control | Combination date | Basis for determining the combination date | The combined party’s income from the beginning | The combined party’s net profit from the beginning | The combined party’s income in the comparative | The combined party’s net profit in the comparative |
to the end of the current combination term | to the end of the current combination term | period | period |
Others:
2. Combination cost
In RMB
Combination cost |
Contingent consideration and its changes:
Others:
3. The combined party’s book value of assets and liabilities on the combination date
In RMB
Combination date | At the end of the last term |
Contingent liabilities from the combined party during the combination:
Others:
(III) Counter PurchaseTransaction basic information, basis to determine a transaction as a counter purchase, remaining assets of thelisted company, whether liabilities are part of businesses and basis to determine it, determination of combinationcost, adjusted equity amount and its calculation when dealt per equity transaction:
(IV) Disposal of SubsidiariesIs there a single disposal of investments in a subsidiary, that is, loss of control right?
√ Yes □ No
In RMB
Name of the subsidiary | Price of the stock equity disposal | Proportion of the stock equity disposed | Way of the equity stock disposal | Time point of losing control right | Basis for determining the time point of losing control | Balance between the disposal price and the owned | Remaining proportion of stock equity at the date of losing control | Book value of the remaining stock equity at the date of losing | Fair value of the remaining stock equity at the date of losing | Gain or loss on re-measurement of remaining stock equity | Method to determine the fair value of the remaining stock | Amount of profit and loss on investments converted from |
right | net asset share of the subsidiary corresponding to the disposal investment in the financial statement | right | control right | control right | as per fair value | equity at the date of losing control right and major assumptions | other comprehensive gains related to the stock equity investments of the original subsidiary | |||||
Suzhou Lvbang Woods Technology Co., Ltd. | 24,000,000.00 | 100.00% | Transfer | April 28,2019 | Completion of industrial and commercial registration of changes | 6,596,880.93 | 0.00% |
OthersIs there disposal by steps of investments in a subsidiary through several transactions and losing control right in thecurrent term?
□ Yes √ No
(V) Changes of Combination Scope for Other ReasonsDescribing other reasons for the changes of combination scope (e.g. newly-established subsidiary, liquidation of asubsidiary) and related matters:
(1)Newly established subsidiaries for the current period
Name | Business plant | Registered | Share-holding ratio(%) | Acquired way |
address | Directly | Indirectly | |||
Sino Great Wall Decoration Engineering (Beijing ) Co., Ltd. | Beijing | Beijing | 100 | Establish |
(2)Other reasons for decreasing of subsidiaries in the current period
Name | Share-holding ratio | Disposition way | The time point at which control is lost | Basis for determining the point of loss of control. | Disposition gains and losses |
Suzhou Lvbang Woods Technology Co., Ltd. | 100% | Sell | April 26,2019 | Industrial & commercial registration of changes |
6.Other
IX. Equity in Other Subjects(I) Equity in Subsidiaries
1. Composition of the enterprise group
Subsidiary | Main operation | Registered place | Business nature | Share-holding ratio | Acquired way | |
Directly | Indirectly | |||||
Sino Great Wall International Engineering Co., Ltd. | Beijing | Beijing | Decoration industry | 100.00% | Investment | |
Sino Great Wall Infrastructure Investment Co., Ltd. | Beijing | Beijing | Investment management, import and export | 100.00% | Establish | |
Sino Great Wall Hengda Engineering Co., Ltd. | Longyan | Longyan | Highway engineering, municipal public works, building works, railway engineering, | 80.00% | Under non-common control |
etc. | ||||||
Sino Great Wall Medical Investment Management Co., Ltd. | Beijing | Beijing | Medical investment | 100.00% | Establish | |
Wuhan Commercial Workers Hospital LLC | Wuhan | Wuhan | Sanitary & medical service | 100.00% | Under non-common control | |
Sino Great Wall Guangxia (Wuhan) Medical Development Co., Ltd. | Wuhan | Wuhan | Medical technology development, pharmaceutical sales, medical device wholesale, medical and pension investment | 60.00% | Establish | |
Changzhi Sino Laodingshan Industrial Co., Ltd. | Changzhi | Changzhi | Urban infrastructure construction and development, construction engineering design, R&D, construction equipment leasing, construction | 100.00% | Establish | |
Xiangfen County Taoshan Construction Co., Ltd. | Xiangfen | Xiangfen | Urban infrastructure construction, trade | 100.00% | Establish | |
Sino Great Wall (Xihua) Economic Development Zone | Xihua | Xihua | Infrastructure investment, road and bridge construction, water | 100.00% | Establish |
Investment Co., Ltd. | conservancy construction, general airport construction | |||||
Liupanshui Central People‘s Hospital Investment Co., Ltd. | Liupanshui | Liupanshui | Hospital management service, pension rehabilitation service, investment, trade, aged articles wholesale and retail | 75.00% | Establish | |
Sino Zhigu Industrial (Yueyang) Co., Ltd. | Yueyang | Yueyang | Building construction | 78.40% | Establish | |
Sino Great Wall Group Co.,Limited | Hongkong | Hongkong | Construction, design, trade, investment consulting | 100.00% | Establish | |
Aofa Investment Co., Ltd. | Hongkong | Hongkong | 100.00% | Establish | ||
Sino Great Wall Decoration and Design Co., Ltd. | Beijing | Beijing | Design and consulting | 100.00% | Establish | |
Sino Great Wall International Engineering (Macao) Co., Ltd. | Macao | Macao | Design and construction | 96.00% | 4.00% | Establish |
Shenzhen Hongtulve Industrial Co., Ltd. | Shenzhen | Shenzhen | Investment, R&D and sales, trade, import and export | 100.00% | Establish | |
Inrich Me Engineering Co., Ltd. | Hongkong | Hongkong | Mechanical and electrical engineering, | 100.00% | Establish |
scientific research, trade, investment consulting | ||||||
Sino Great Wall Real Estate (Hubei) Co., Ltd. | Wuhan | Wuhan | Real estate development | 80.00% | Establish | |
Sino Great Wall New Energy (Beijing) Co., Ltd. | Beijing | Beijing | Renewable energy technology | 100.00% | Establish | |
Shanghai Lingrui International Trading Co., Ltd. | Shanghai | Shanghai | Trade | 100.00% | Establish | |
Sino Great Wall Southwest Engineering Co., Ltd. | Chengdu | Chengdu | Building construction | 100.00% | Under non-common control | |
Huichang County Zhongcheng Construction Engineering Co., Ltd. | Huichang | Huichang | Medical industry construction, import and export | 100.00% | Under non-common control | |
Great Wall Biaodian Energy Co., Ltd. | Beijing | Beijing | Energy trade, R&D, import and export | 51.00% | Establish | |
SINO GREAT WALL INTERNETIONAL ENGINEERING(CNMI)CO.,LLC | Saipan | Saipan | Design and construction | 100.00% | Establish | |
SINO GREAT WALL GENERA L TRADING & | Kuwait | Kuwait | Building construction | 49.00% | Under non-common control |
CONTRACTING CO.LTD | ||||||
Sino Great Wall International Engineering( MM ) Co.,Ltd | Burma | Burma | Design and construction | 80.00% | Establish | |
PT.SINO GREAT WALL CONSTRUCTIONINDONESIA | Indonesia | Indonesia | Building construction | 67.00% | Establish | |
Sino Great Wall (Lao)Co.,Ltd | Laos | Laos | Building construction | 100.00% | Establish | |
Sino International Engineering (Lao) Sole investor Co., Ltd. | Laos | Laos | 100.00% | Establish | ||
Sino Great Wall Investment (Lao) Sole investor Co., Ltd. | Laos | Laos | 100.00% | Establish | ||
Sino Great WallInternationalEngineering(Th ailand) Co.,Ltd. | Thailand | Thailand | Engaged in domestic and international construction contracting, interior and exterior decoration of buildings, accepting bids to obtain bidding civil engineering projects of government agencies (cities, organs, etc.), | 49.00% | Establish |
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 Engineering Co.,Ltd | Maldives | Maldives | Design and construction | 100.00% | Establish | |
PT.SINO GREAT WALL INVESTMENT INDONESIA | Indonesia | Indonesia | Real estate or leasing | 99.90% | Establish | |
SGW America LLC | USA | USA | Construction, design | 99.00% | 1.00% | Establish |
Sino Great Wall Group (UK)Co.,Limited | Britain | Britain | Design and construction | 98.00% | Establish | |
Kunming Sino Forest Industry Development Co., Ltd. | Kunming | Kunming | Development, construction, operation and management of industrial parks | 51.00% | Establish | |
SINO GREAT WALL(USA).INC | USA | USA | Legal business practices | 100.00% | Establish | |
Sino Great Wall Development (Hengqin) Co., Ltd. | Zhuhai | Hengqin | Design and construction | 85.00% | Establish | |
Fujian Sino Great Wall Mingyihui | Fuzhou | Fuzhou | Investment in medical and pension | 88.00% | Establish |
Medical Investment Co., Ltd. | industry; hospital management; medical device sales | |||||
Sino Great Wall Medical Investment (Hubei) Co., Ltd. | Wuhan | Wuhan | Investment in medical industry projects; self-operation and agency of the import and export business of various goods and technology | 100.00% | Establish | |
Hubei Yuanyaotong Supply Chain Co., Ltd. | Wuhan | \Wuhan | Pharmaceutical wholesale, self-operation and agency of the import and export of goods and technology | 51.00% | Establish | |
Wu‘an Juhe Photovoltaic Power Co., Ltd. | Wuan | Wuan | Solar photovoltaic | 100.00% | Establish | |
Sino Great Wall Southwest Science and Technology Co., Ltd. | Chengdu | Chengdu | Sales, equipment installation | 100.00% | Establish | |
Sino Great Wall Southwest Commercial and Trading Co., Ltd. | Chengdu | Chengdu | Wholesale and sales | 100.00% | Establish | |
Sino Great Wall Southwest Engineering Consultation Co., Ltd. | Chengdu | Chengdu | Construction engineering design, consulting, survey | 100.00% | Establish | |
Far eastern | Russia | Russia | Building | 95.00% | Under |
international engineering company,LLC | construction, commerce and trade, transport, leasing | non-common control | ||||
Sino Great Wall(Philippines) International Corporation | Philippines | Philippines | Building construction, import and export trade | 100.00% | Establish | |
Sino Great Wall (HK) Property Co., Limited | Hongkong | Hongkong | Real estate development and management, land investment, property management, investment and business consulting, trade | 100.00% | Establish | |
SGWHPEngineeringConstructionSDN.BHD | Malaysia | Malaysia | Building construction, engineering design, installation project, mechanical and electrical installation, etc. | 100.00% | Establish | |
SGW VENTURES SDN.BHD. | Malaysia | Malaysia | Purchased, or otherwise obtained, attributes, stocks, bonds, reinvested earnings, etc. | 100.00% | Establish | |
SGW CONSTRUCTION (LANGKAWI) SDN.BHD. | Malaysia | Malaysia | Building construction, engineering design, installation project, mechanical and | 100.00% | Establish |
electrical installation, etc. | ||||||
SinoOmanRefineryandPetrochemicals LLC | Oman | Oman | Oil production, import and export | 51.00% | Establish | |
Sino Great Wall Hebei Xiongan Construction Co., Ltd. | Xiongan | Xiongan | General contracting of construction, subcontracting of construction services, engineering investigation and design, etc. | 100.00% | Establish | |
Sino Great Wall Technology Development Co., Ltd. | Beijing | Beijing | Technology development, technology transfer, technology consultation, technology promotion, technical services; sales of construction materials. | 100.00% | Establish | |
Zhongda Changcheng Industry(Chongqing) Co.,Ltd. | Chongqing | Chongqing | Design phase project management service; construction stage project management service and so on | 60.00% | Establish | |
Sino Great Wall Engineering Management (Shenzhen) Co., Ltd. | Shenzhen | Shenzhen | Construction project contracting and construction project management, labor subcontract, etc | 51.00% | Establish |
Sino Rongju Real Estate Development Co., Ltd. | Beijing | Beijing | Real estate development; construction general contracting, professional contracting, labor subcontracting, etc. | 51.00% | Establish | |
Weifang Sino Greart Wall Health Development Co., Ltd. | Weifang | Weifang | Health consulting services; real estate development; sales of self-developed commercial housing, etc. | 100.00% | Establish | |
Sino Great Wall Industry(Chongqing)Co., Ltd. | Chongqing | Chongqing | Ecological agriculture development, agricultural science and technology development, agricultural project comprehensive development, enterprise management; landscaping, landscape design; travel agency service; construction engineering, etc. | 80.00% | Establish | |
Sino Great Wall Medical Industry (Hunan ) | Changsha | Changsha | Hospitals and medical investment, old - age industry | 75.00% | Establish |
Investment Co., Ltd. | investment, small town investment. | |||||
Hunan University of Traditional Chinese Medicine Sino Great Wall Medical Management Co., Ltd. | Changsha | Changsha | Hospital management; brand promotion marketing; chain enterprise management, etc. | 51.00% | Establish | |
Sino Great Wall Real Estate Development (Hunan ) Co., Ltd. | Changsha | Changsha | Real estate development and management; industrial real estate development; property management; real estate intermediary services, etc. | 80.00% | Establish | |
Hunan Sino Great Wall Oncology Hospital Management Co. Ltd. | Changsha | Changsha | Hospital management; brand promotion marketing; chain enterprise management, etc. | 55.00% | Establish | |
Hunan University of traditional Chinese Medicine Sino Great Wall Medical Industry Co., Ltd. | Changsha | Changsha | Investment in medicine, investment management, investment consulting, etc. | 80.00% | Establish | |
Sino Boda(Zhangjia | Zhanjiang | Zhanjiang | Real estate investment and | 51.00% | Establish |
ng) Industry Co., Ltd. | development, management, property management, rental and maintenance of construction machinery and equipment, etc. | |||||
Anshun Sino Great Wall Real Estate Decelopment Co., Ltd. | Anshun | Anshun | Housing demolition, real estate development and management, construction projects, land governance projects, real estate infrastructure construction. | 90.00% | Establish | |
Sino Great Wall (Guangzhou) Elevator Engineering Co., Ltd. | Guangzhou | Guangzhou | Elevator installation engineering service; elevator maintenance; elevator sales; elevator, escalator and lift manufacturing, etc. | 60.00% | Establish | |
Sino Great Wall Decoration Engineering (Beijing) Co., Ltd. | Beijing | Beijing | Engineering investigation; Engineering Design; Professional contract; General Construction contract, etc. | 100.00% | Establish |
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 investedparty 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 RMB
Name of the subsidiary | Shares of minority shareholders | Gains and losses of minority shareholders in current term | Dividends declared to minority shareholders in current term | Equity balance of minority shareholders at 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 RMB
Name of the subsidiary | Ending balance | Opening balance | ||||||||||
Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities |
In RMB
Name of the subsidiary | Amount incurred of current term | Amount incurred of last term | ||||||
Operating income | Net profit | Total amount of composite benefits | Cash flow from operating activities | Operating income | Net profit | Total amount of composite benefits | Cash flow from operating 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 statementOthers:
(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 RMB
Others:
(III). Equity in Joint Ventures and Jointly-run Enterprises
1. Important joint ventures and jointly-run enterprises
Name of the joint venture and jointly-run enterprise | Main business place | Registered place | Business nature | Shareholding proportion | Accountant arrangement method for joint ventures and jointly-run enterprise | |
Direct | Indirect |
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 rightsbut not exerting important influence:
2. Main financial information of important joint ventures
In RMB
Ending balance/Amount incurred of current term | Opening balance/Amount incurred of last term | |
Others:
3. Main financial information of important jointly-run enterprises
In RMB
Ending balance/Amount incurred of current term | Opening balance/Amount incurred of last term | |
Others:
4. Financial information summary of not important joint ventures and jointly-run enterprises
In RMB
Ending balance/Amount incurred of current term | Opening balance/Amount incurred of 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 thecompany
6. Excess deficit incurred by joint ventures and jointly-run enterprises
In RMB
Name of the joint venture and jointly-run enterprise | Accumulated unconfirmed losses accrued in the previous term | Unconfirmed losses of the current term (or shared net profits of the current term) | Accumulated unconfirmed losses in 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 operation | Main business place | Registered place | Business nature | Shareholding proportion/Owned shares | |
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 statementAbout structured entities not incorporated into the combined financial statement:
2. Others
X. Risks associated with financial instrumentsThe 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 andpolicies and bearing the ultimate liabilities for that. However, the Board of Directors has authorized themanagement to design and implement the process that can ensure the effective implementation of the riskmanagement objectives and policies. The Board of Directors reviews the effectiveness of the enforced proceduresand the rationality of risk management objectives and policies through monthly reports submitted by themanagement. Internal auditors of the Company will also audit risk management policies and procedures andreport the relevant findings to the audit committee.Overall objective of risk management of the Company is to formulate risk management policies to minimize riskswithout 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 failureof the other party to fulfill obligations. The Company mainly faces customer credit risks caused by sales onaccount. 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 isavailable. The Company sets a credit limit for each customer. The limit is the maximum amount unnecessary foradditional approval.
The Company quarterly monitors credit ratings of existing customers and monthly reviews aging analysis ofaccounts receivable to ensure that the Company's overall credit risk is within the controllable range. When theCompany monitors credit risks of customers, the customers shall be divided into groups according to their creditfeatures. Customers rated as "high risk" will be placed in a restricted customer list. The Company may sell goodsto such customers on credit in future periods subject to additional approval; otherwise the Company must requireadvance payments.
(2)Market risk
Market risk associated with financial instruments refers to the risk arising from changes in fair value orfuture cash flows of financial instruments due to market price fluctuation, including interest rate risk and foreignexchange risk.
(1) Interest rate risk Interest rate risk refers to the risk arising from changes in fair value or future cash flowsof financial instruments due to fluctuation in market interest rate. The Company's interest rate risk mainly derivesfrom 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 toreasonably 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 cashflows of financial instruments due to fluctuation in foreign exchange rate. The Company shall match foreigncurrency 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 raterisks.
(3)Liquidity risk
Liquidity risk refers to a risk arising from shortage of funds when the Company performs the obligationssettled 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 departmentmonitors cash balance and readily realizable and marketable securities and makes rolling forecast on cash flows ofthe next 12 months to ensure that the Company has sufficient funds to repay debts in all cases of reasonableprediction. See disclosure of the relevant items of Note 5 for details of financial liabilities of the Companypresented 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 RMB
Items | Closing fair value | |||
Fair value measurement items at level 1 | Fair value measurement items at level 2 | Fair value measurement items at level 3 | Total | |
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 forconsistent and inconsistent fair value measurement items at level 2
4. Valuation technique adopted and nature and amount determination of important parameters forconsistent and inconsistent fair value measurement items at level 3
5. Sensitiveness analysis on unobservable parameters and adjustment information between opening andclosing 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 conversionhappens among consistent fair value measurement items at different levels
7. Changes in the valuation technique in the current period and the reason for change
8. Fair value of financial assets and liabilities not measured at fair value
9.Other
XII. Related party and related party transactions
1.Parent company information of the enterprise
Name of Parent Company | Registered place | Business nature | Registered capital | Shareholding proportion of Parent Company to the Company | Voting right proportion of Parent Company to the Company |
Chen Lue | 26 Kuipeng Road, Baishigang, | 582,944,556 | 34.33% | 34.33% |
Description about Parent Company of the CompanyThe 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 theprevious period:
Kuiyong Street,Dapeng NewDistrict, ShenzhenName of joint venture or associate
Name of joint venture or associate | Relationship with the Company |
Sino Great Wall Zhihuai Building Industry (Zhangjiang)Co., Ltd. | An associate of which the Company holds 40% shares |
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 |
Kunwu Jiuding Investment Management Co., Ltd. | Bai Bin, a former director of the Company, acts as its Investment Director |
Shanghai Heyi Supply Chain Management Co., Ltd. | Wang Lei, a former director of the Company, acts as its director |
Sino Great Wall (Beijing) Investment Fund Management Co., Ltd. | A company controlled by the actual controller |
Qinghai Heyi Commerce Co., Ltd. | A company controlled by Wang Lei, a former director of the 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 Manager |
Chen Lve | Actual controller of the Company |
He Sen | Brother-in-law of the shareholder and actual controller of the |
Company | |
Luyi Shuguang Medical Industrial Investment Construction Co., Ltd. | A PPP Project Company controlled by the Company |
Huichang County Sino Great Wall Medical Industrial Construction Service Co., Ltd. | A PPP Project Company controlled by the Company |
Sino Great Wall (Fugou) High-speed Railways District Investment Co., Ltd. | A PPP Project Company controlled by the Company |
Anyang Sino Great Wall Medical Management Service Co., Ltd. | A PPP Project Company controlled by the Company |
Sino Great Wall (Fugou) Jialu River Comprehensive Control Investment Co., Ltd. | A PPP Project Company controlled by the Company |
Sino Great Wall (Fugou) National Fitness Center Investment Co., Ltd. | A PPP Project Company controlled by the Company |
Sino Great Wall Shaanxi Fuyan Industrial Park Investment Co., Ltd. | A PPP Project Company controlled by the Company |
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 Medical Real Estate Investment Co., Ltd. | A PPP Project Company controlled by the Company |
Gongxian Sino Medical 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 purchased and soldPurchase goods/Service acceptance
In RMB
Related Party | Content of related transactions | Current amount | Approved transaction quota | Whether exceed the transaction limited | Last Amount |
Purchase goods/Service acceptance
In RMB
Related Party | Content of related transactions | Current amount | Last Amount |
Huichang County Sino Great Wall Medical Industrial Construction Service Co., Ltd. | PPP project construction | 20,954,172.77 | 31,440,776.87 |
Sino Great Wall (Fugou) High-speed Railways District Investment Co., Ltd. | PPP project construction | ||
Sino Great Wall (Fugou) Fitness Center Investment Co., Ltd. | PPP project construction | ||
Wuchuan City Sino Great Wall People’s Hospital | PPP project construction | 54,342,707.21 | |
Wuchuan Sino Great Wall TCM Hospital Investment Co., Ltd. | PPP project construction | 14,949,298.53 | 18,315,685.75 |
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 situationTable on company’s trusteeship/contract
In RMB
Name of entrusting/contract-out part | Name of trustee/contracting party | Type of asset trustee/contracting | Beginning date of trustee/contracting | End date of trustee/contracting | Pricing basis of trustee earning/contracting earning | Confirmed trustee earning/contract earning |
Note of related trustee/contractingTable on company’s trusteeship/contract-out
In RMB
Name of entrusting/contract-out part | Name of trustee/contracting party | Type of asset trustee/contracting | Beginning date of trustee/contracting | End date of trustee/contracting | Pricing basis of trustee earning/contracting-out earning | Confirmed trustee earning/contract earning |
Note of related trustee/contracting
(3)Related tenancy situation
The company as the lessor
In RMB
Name of renter | Type of leased assets | Current confirmed rental income | Last confirmed rental income |
The company as the renter:
In RMB
Name of renter | Type of leased assets | Current confirmed rental income | Last confirmed rental income |
Note of related tenancy situation
(4)Related guarantee situation
The company as the guarantee:
In RMB
Secured party | Amount guaranteed | Beginning date of guarantee | End date of guarantee | Finished or yet |
The company as the secured party
In RMB
Secured party | Amount guaranteed | Beginning date of guarantee | End date of guarantee | Finished or yet |
Note on related guarantee
(5)Related party fund borrowing
In RMB
Related party | Borrowing amount | Beginning date | End date | Note |
Borrowing | ||||
Lending |
(6)Related party asset transferring and debt restructing
In RMB
Related party | Content or related transactions | Current amount | Last amount |
Shenzhen Hualian Development Investment Co., Ltd. | Economic compensation for the reorganization of Major assets | 100,000,000.00 |
(7) Rewards for the key management personnel
In RMB
Project | Current amount | Last amount |
Rewards for the key management personnel | 1,538,740.95 |
(8)Other related transactions
6、Receivables and payables of related party
(1)Receivables
In RMB
Project name | Related party | Ending book value | Beginning book value | ||
Book balance | Reserve for bad-debt | Book balance | Reserve for bad-debt | ||
Account receivable | |||||
JD Capital Investment Management Co., Ltd. and its related party | 77,613.49 | 23,284.05 | 77,613.49 | 7,761.35 | |
Lhasa JD Capital Investment Management Co., Ltd. and its related party | 160,000.00 | 80,000.00 | 160,000.00 | 48,000.00 | |
Shanghai Heyi Supply Chain Management Co., Ltd | 2,469,164.81 | 740,749.44 | 2,469,164.81 | 246,916.48 | |
Huichang County Sino Great Wall Medical Industrial Construction Service Co., Ltd. | 25,116,590.68 | 1,255,829.53 | 78,155,590.97 | 3,907,779.55 | |
Sino Great Wall (Fugou) High-speed Railways District Investment Co., Ltd. |
Sino Great Wall (Fugou) Fitness Center Investment Co., Ltd. | 4,445,215.33 | 444,521.53 | 4,445,215.33 | 444,521.53 | |
Wuchuan Sino Great Wall TCM Hospital Investment Co., Ltd. | 34,967,873.54 | 1,748,393.68 | 19,724,082.47 | 986,204.12 | |
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 (Beijing) Co., Ltd. | 9,500.00 | 2,850.00 | 9,500.00 | 950.00 | |
Sino Great Wall Investment (Beijing) Co., Ltd, | 1,060,000.00 | 106,000.00 | 1,060,000.00 | 53,000.00 | |
Luyi Shuguang Medical Industrial Investment Construction Co., Ltd. | 4,220,171.89 | 1,253,980.64 | 4,220,171.89 | 418,999.46 | |
Sino Great Wall (Fugou) Jialu River Comprehensive Treatment Investment Co., Ltd. | 615,869.20 | 41,671.92 | 217,569.20 | 3,851.67 | |
Sino Great Wall Shaanxi Fuyan Industrial Park Investment Co., Ltd. | 7,652,124.54 | 1,198,764.58 | 5,195,923.58 | 400,761.72 | |
Sino Great Wall (Fugou) High-speed Railways District Investment Co., Ltd. | 24,193,648.34 | 2,412,190.47 | 23,773,722.22 | 1,188,686.11 |
Sino Great Wall (Fugou) Fitness Center Investment Co., Ltd. | 1,015,767.69 | 84,827.48 | 573,300.00 | 28,665.00 | |
Wuchuan City Sino Great Wall People’s Hospital Investment CO., Ltd. | 6,026,341.47 | 1,743,366.52 | 35,626,341.47 | 1,818,500.17 | |
Wuchuan City Sino Great Wall People’s Hospital Investment CO., Ltd. | 343,018.86 | 102,905.66 | 343,018.86 | 34,301.89 | |
Yanjin County Sino Great Wall Drainage Network Construction Co., Ltd. | 2,320,000.00 | 116,000.00 | 400,000.00 | 20,000.00 | |
Total | 48,086,049.74 | 7,150,022.98 | 72,177,336.82 | 4,018,282.90 |
(2)Payables
In RMB
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 Medical Industrial Construction Service Co., Ltd. | 244,863,301.51 | 244,863,301.51 | |
Wuchuan City Sino Great Wall People’s Hospital Investment CO., Ltd. | 12,360,000.00 | ||
Total | 244,863,301.51 | 257,223,301.51 | |
Other payable | |||
Sino Great Wall (Beijing)Investment Co., Ltd. | 3,590,000.00 |
He Sen | 200,000.00 | ||
Chen Lue | 127,590.95 | 153,613.00 | |
Yang Chunling | 22,106.90 | ||
Anyang Sino Great Wall Medical Management Service Co., Ltd. | 177,973,316.87 | 159,973,316.87 | |
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 implicationsNil
3.Other
XV. Matters after the balance sheet date
1. Important non-adjusting events
In RMB
Item | Contents | effects on financial conditions and operating results | Reasons for inestimable 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 RMB
Correction contents of the accounting errors | Treatment procedure | Report items of various affected comparative periods | Cumulative effects |
(2) Prospective application method
Correction contents of the accounting errors | Approval procedure | Reasons for adopting prospective application method |
2. Debt restructuring
3. Asset replacement
(1) Non-monetary asset exchange
(2) Other asset replacement
4. Annuity plan
5. Discontinued operation
In RMB
Item | Revenue | Expense | Total profit | Income tax expense | Net profit | Discontinued operation 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 notassociated with each other, there is no price transfer among the segments; medical businesses are operated by theCompany and independent subsidies. Outbound architectural decoration business shall be accounted by overseascompanies according to regions in which the projects under construction is located by establishing independentaccount sets for 8 main projects in Qatar, Kuwait, Cambodia, Sri Lanka, Malaysia, Myanmar, Maldives andSaipan. There are no expenses indirectly attributable to various segments to be apportioned. And outboundarchitectural decoration business data also consist of financial figures from the account sets of the above 8 mainprojects.
(2) Financial information of reporting segments
In RMB
Items | Offset during segments | Total |
(3) There was no reportable segment, or the total amount of assets and liabilities of each part of reportablesegment, shall disclose the reason.Nil
(4)Other notes
7. Other important transactions and events have an impact on investors’ decision-making
8.Other
XVII. Notes s of main items in financial reports of parent company
(1)Account receivable
1.Classification account receivables.
In RMB
Category | Amount in year-end | Amount in year-beginning | ||||||||
Book Balance | Bad debt provision | Book value | Book Balance | Bad debt provision | Book value | |||||
Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | |||
Of which : | ||||||||||
Of which: |
Accrual of bad debt provision by single item:
In RMB
Name | Ending balance | |||
Book balance | Bad debt reserve | Withdrawal proportion | Reason |
Accrual of bad debt provision by portfolio:
In RMB
Name | Ending balance | |||
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 ofother receivables if the provision for bad debts of bills receivable is accrued according to the general model ofexpected credit loss:
□ Applicable √ Not applicable
Disclosure by aging
In RMB
Aging | Closing balance |
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 |
4-5 years | 0.00 |
Over 5 years | 0.00 |
Total | 0.00 |
(2) Accounts receivable withdraw, reversed or collected during the reporting periodThe withdrawal amount of the bad debt provision:
In RMB
Category | Opening balance | Amount of change in the current period | Closing balance | ||
Accrual | Reversed or collected amount | Write-off |
Of which the significant amount of the reversed or collected part during the reporting period
In RMB
Items | Reversed or collected amount | Method |
(3)The current accounts receivable written-offs situation
In RMB
Items | Amount written-offs |
Significant receivables written off are as follows:
In RMB
Unit name | Nature of other receivables | Amount written off | Reasons for writing off | Writing-off procedure | Is the amount incurred by the 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 involvementOther notes:
2. Other receivables
In RMB
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 |
(1) Interests receivable
1) Classification of interests receivable
In RMB
Item | Closing balance | Beginning balance |
2) Significant overdue interests
In RMB
Borrower | Closing balance | Overdue time | Overdue reasons | Whether impairment occurs and the judgment basis |
Other notes:
3)Bad-debt provision
□ Applicable √ Not applicable
(2)Dividends receivable
1)Dividends receivable
In RMB
Item (or the invested party) | Closing balance | Beginning balance |
Sino Great Wall International Engineering Co., Ltd. | 100,000,000.00 | 100,000,000.00 |
Total | 100,000,000.00 | 100,000,000.00 |
2) Significant dividends receivable with an aging of more than 1 year
In RMB
Item (or the invested party) | Closing balance | Aging | Reasons for recovery failure | Whether impairment occurs and the judgment basis |
Sino Great Wall International Engineering Co., Ltd. | 100,000,000.00 | 2-3 years | No actual payment | |
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 RMB
Nature | Closing book balance | Opening book balance |
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 RMB
Bad Debt Reserves | Stage 1 | Stage 2 | Stage 3 | Total |
Expected credit losses over the next 12 months | Expected credit loss over life (no credit impairment) | Expected credit losses for the entire duration (credit 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 RMB
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 periodThe withdrawal amount of the bad debt provision:
In RMB
Category | Opening balance | Amount of change in the current period | Closing balance | |
Accrual | Reversed or collected amount |
During the reporting period, there were altogether 14942530.91 yuan bad-debt provision set aside and 0.00 yuanbad-debt provision recovered or carried back.
Bad-debt provisions carried back or recovered in the current period with significant amount are as follows:
In RMB
Unit name | Amount carried back or recovered | Recovery method |
3) Other receivables actually written off in the current period are as follows:
InRMB
Item | Amount written off |
Significant other receivables written off are as follows:
In RMB
Unit name | Nature of other receivables | Amount written off | Reasons for writing off | Writing-off procedure | Is the amount incurred by the 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 RMB
Unit name | Nature of payment | Closing balance | Aging | Proportion in the total closing balance of other receivables | Closing balance of bad-debt provision |
Sino Great Wall International Engineering Co., Ltd. | Current payment | 2,379,350,202.49 | Within 1 year | 87.61% | |
Wuhan Commercial Worker Hospital Co., Ltd. | Current payment | 89,886,449.10 | Within 1 year | 3.31% | |
Administration Committee of Fuping High-tech Development Zone | Current payment | 50,000,000.00 | 2-3 years | 1.84% | 15,000,000.00 |
Ningling County Neihu Wetland shed Reform Construction Co., Ltd. | Deposit | 28,400,000.00 | Within 1 year | 1.05% | |
Fugou County Comprehensive Investment Co., Ltd. | Current payment | 30,000,000.00 | 1-2 years | 1.10% | 3,000,000.00 |
Total | -- | 2,577,636,651.59 | -- | 94.91% | 18,000,000.00 |
6) Receivables covered by governmental subsidy
In RMB
Unit name | Name of government subsidy project | Closing balance | Closing aging | Estimated time, amount 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 involvementOther notes:
3. Long-term equity investment
In RMB
Item | Closing balance | Beginning balance | ||||
Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
Investment in subsidies | 3,323,211,536.66 | 3,323,211,536.66 | 3,323,211,536.66 | 3,323,211,536.66 | ||
Total | 3,323,211,536.66 | 3,323,211,536.66 | 3,323,211,536.66 | 3,323,211,536.66 |
(1) Investment in subsidies
In RMB
Name of investee | Opening balance | Increase/decrease in this period | End of term | Balance of the provision on for impairment | |||
Increase in investment | Other | ||||||
Sino Great Wall International Engineering Co., Ltd. | 3,079,451,536.66 | 3,079,451,536.66 | |||||
Wuhan Commercial Worker Hospital Co., Ltd. | 97,000,000.00 | 97,000,000.00 | |||||
Sino Great Wall Medical Investment Management Co., Ltd. | 5,000,000.00 | 5,000,000.00 |
Changye City Sino Laodingshan Industrial Co., Ltd. | 10,000,000.00 | 10,000,000.00 | |||||
Xiangfen County Taoshan Construction Co., Ltd. | 10,000,000.00 | 10,000,000.00 | |||||
Sino Z higu Industrial (Yueyang) Co., Ltd. | 109,760,000.00 | 109,760,000.00 | |||||
Ningling County Inner Lake Wetland Shanty-town Renovation Construction Co., Ltd. | 5,000,000.00 | 5,000,000.00 | |||||
Chengwu County Shenguang Engineering Project Management Co., Ltd. | 7,000,000.00 | 7,000,000.00 | |||||
Total | 3,323,211,536.66 | 3,323,211,536.66 |
(2)Investment in joint ventures and associates
In RMB
Name of investee | Beginning of term | Increase/decrease in this period | End of term | Balance of the provision on for impairment | |||||||
Increase in investment | Decrease in investment | Investment income under equity method | Other comprehensive income | Other changes in equity | Announced for distributing cash dividend or | Provision for impairment | Other |
profit | ||
I.Joint venture | ||
II. Associated |
(3)Other notes
4. Business income, Business cost
In RMB
Items | Amount of current period | Amount of previous period | ||
Income | Cost | Income | Cost | |
Main 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 RMB
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 RMB
Items | Amount | Notes |
Gain or loss on disposal of non-current assets | 54,651.22 | |
Other non-operating income and expenditure except for the above items | -465,112,441.62 | |
Total | -465,057,790.40 | -- |
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 oninformation disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses andits non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosurefor Companies offering their securities to the public-non-recurring Gains and losses which have been defined asrecurring gains and losses, it is necessary to explain the reason.
□ Applicable √ Not applicable
2 Return on net assets and earnings per share
Profit of the report period | Return on net assets . Weighted(%) | Earnings per share | |
Basic earnings per share | Diluted gains per share | ||
Net profit attributable to the Common stock shareholders of Company. | -298.54% | -0.8343 | -0.8343 |
Net profit attributable to the Common stock shareholders of Company after deducting of non-recurring gain/loss. | -200.54% | -0.5604 | -0.5604 |
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 andChinese accounting standards
□ Applicable √Not applicable
(2) Differences between the net profit and net asset in the financial reports prepared under IAS and ChineseAccounting Standard
□ Applicable √Not applicable
(3) Explain reasons for the differences between accounting data under domestic and overseas accountingstandards, for audit data adjusting differences had been foreign audited, should indicate the name of the foreigninstitutions
4.Other
XI. Documents available for inspection
1. Text of financial statement with signature and seals of legal person, person in charge of accounting works andperson in charge of accounting institution.
2. Original and official copies of all documents which have been disclosed on Securities Times and Hong KongCommercial Daily in the report period.
English translation for reference Only Should there be any discrepancy between the two versions, the Chineseversion shall prevail.
Legal Representative: Chen LueSino Great Wall Co., Ltd.