读取中,请稍候

00-00 00:00:00
--.--
0.00 (0.000%)
昨收盘:0.000今开盘:0.000最高价:0.000最低价:0.000
成交额:0成交量:0买入价:0.000卖出价:0.000
市盈率:0.000收益率:0.00052周最高:0.00052周最低:0.000
*ST神城B:2019年半年度报告(英文版) 下载公告
公告日期:2019-08-28

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 definedRefers toDefinition
Company LawRefers toCompany Law of the People’s Republic of China
Securities LawRefers toSecurities Law of the People’s Republic of China
“CSRC”Refers toChina Securities Regulatory Commission
Company, The Company, Sino Great WallRefers toSino Great Wall Co., Ltd.
Sino InternationalRefers toSino Great Wall International Engineering Co., Ltd.
SZSERefers toShenzhen Stock Exchange
SSRBRefers toShenzhen Securities Regulatory Bureau
Reporting periodRefers toJanuary 1,2019 to June 30,2019
Wuhan Commercial worker HospitalRefers toWuhan Commercial worker Hospital Co., Ltd.
Union HoldingsRefers toUnion Holdings Co., Ltd.
Rich Crown InvestmentRefers toRich Crown Investment Co., Ltd.
Baden-Baden HospitalRefers toAcura Kliniken Baden-Baden GmbH
Bihui Road & BridgeRefers toXian Bihui Road & Bridge Engineering Co., Ltd.

II. Corporate Profile and Key Financial IndicatorsI.Company Information

Stock abbreviation*STSino Great Wall,*ST Sino-BStock code000018、200018
Stock exchange for listingShenzhen 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 RepresentativeChen Lue

II. Contact person and contact manner

Board secretarySecurities affairs Representative
NameYang ChunlingSun Yu
Contact addressSino Great Wall Building, No.3 Jinxiu Street, Economic Technology Development Zone , BeijingSino Great Wall Building, No.3 Jinxiu Street, Economic Technology Development Zone , Beijing
Tel010-89045855010-89045855
Fax010-89045856010-89045856
E-mail1208806865@qq.com000018sz@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 periodSame period of last yearYoY+/-(%)
Operating income(RMB)256,367,221.671,586,971,575.24-83.85%
Net profit attributable to the shareholders of the listed company(RMB)-1,416,774,391.50143,999,455.72-1,083.87%
Net profit after deducting of non-recurring gain/loss attributable to the shareholders of listed company(RMB)-951,716,601.10-33,506,685.352,740.38%
Cash flow generated by business operation, net(RMB)-422,152,026.801,098,164,365.63-138.44%
Basic earning per share(RMB/Share)-0.83430.0848-1,083.84%
Diluted gains per share(RMB/Share)(RMB/Share)-0.83430.0848-1,083.84%
Weighted average ROE(%)-298.54%6.61%-305.15%
As at the end of the reporting periodAs at the end of last yearYoY+/-(%)
Gross assets (RMB)7,971,610,486.319,603,455,934.89-16.99%
Shareholders’ equity attributable to shareholders of the listed company(RMB)-1,184,353,287.94235,202,473.51-603.55%

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

ItemsAmountNotes
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 assetsMajor changes
Equity assetsNo significant change
Fixed assetsNo significant change
Intangible assetsNo significant change
Construction in processNo 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 periodSame period of last yearYoY+/-(%)Reason for change
Operating revenues256,367,221.671,586,971,575.24-83.85%
Operating costs227,646,036.241,312,212,102.46-82.65%
Selling expense14,477,142.7616,521,622.08-12.37%
Administrative expense87,163,665.56127,907,861.56-31.85%
Financial cost325,054,182.14145,939,925.19122.73%
Income taxes950,360.9018,790,236.79-94.94%
Net cash generate by operating activities-422,152,026.801,098,164,365.63-138.44%
Net cash generated by investing activities-201,491,732.24-100.00%
Net cash generated by financing activities356,304,797.30-1,281,374,118.34-127.81%
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 revenueoperating costsGross 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
EPC202,439,147.55171,982,276.9915.04%-84.15%-83.76%-2.05%
Decoration work53,928,074.1255,663,759.25-3.22%-82.60%-78.04%-21.44%
On Product
EPC202,439,147.55171,982,276.9915.04%-84.15%-83.76%-2.05%
Decoration work53,928,074.1255,663,759.25-3.22%-82.60%-78.04%-21.44%
On Area
Domestic256,367,221.67227,646,036.2411.20%-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 periodEnd of same period of last yearChange in percentage(%)Reason for significant change
AmountAs a percentage of total assets(%)AmountAs a percentage of total assets(%)
Monetary funds161,407,308.222.02%1,374,597,109.5012.47%-10.45%
Account receivable3,268,131,916.9641.00%5,031,464,951.1245.63%-4.63%
Inventory997,074,459.4512.51%745,455,718.176.76%5.75%
Long-term Equity Investment106,837,810.831.34%0.00%1.34%
Fixed assets139,240,017.201.75%331,425,276.473.01%-1.26%
Construction in process36,805,894.030.46%707,700.590.01%0.45%
Short-term loans3,306,944,094.4941.48%2,798,513,481.2425.38%16.10%
Long-term loans120,000,000.001.51%873,089,164.497.92%-6.41%

2.Asset and Liabilities Measured by Fair Value

□ Applicable √ Not applicable

3. Restricted asset rights as of end of the reporting period

ItemsYear-end book valueReason
Monetary funds101,885,589.67Margin and frozen funds
Fixed asset13,740,651.43Financial lease assets
Total115,626,241.10--

Ⅴ.Investment situation

1. General

√ Applicable □ Not applicable

Investments made in the reporting periodInvestments made in same period of last year+/- %
0.0016,000,000.00-100.00%

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 nameCompany typeMain business scopeRegistered capitalTotal assetsNet assetsTurnoverOperating profitNet profit
Sino Great Wall International Engineering Co., Ltd.SubsidiariesGeneral 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,1,000,000,0006,645,553,235.97-234,815,416.20185,542,158.51-646,229,605.66-1,112,908,329.81

Subsidiaries obtained or disposed in the reporting period

√Applicable □Not applicable

technologyconsultation,technologyservice; goodsimport andexport;technologyimport andexport; agentimport andexport.

Name

NameModeInfluence
Sino Great Wall International Engineering Co., Ltd.Chengdu BranchWritten offWhich 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

MeetingTypeInvestor participation ratioConvened dateDisclosure dateIndex to disclosed information
The first provisional shareholders’ General meeting in 2019Provisional shareholders’ General Meeting34.40%February 13,2019February 14,2019The 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 MeetingAnnual General Meeting39.62%May 20,2019May 21,20192018 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

CommitmentCommitment makerTypeContentsTime of making commitmentPeriod of commitmentFulfillment
Commitment on share reformNoNoNoNoNo
Commitment in the acquisition report or the report on equity changesNoNoNoNoNo
Commitments in assets reorganizationChen LueStock lockShares 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, 201536 monthsStrict performing
Chen LueNo capital occupationUp 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 toMarch 19,2015Long-termStrict 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 LueCash compensationIn 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 19,2015Long-termStrict performing
Chen LueCash compensationDuring 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., atMarch 19,2015Long-termStrict performing
the time for construction again.
Chen LueCash compensation1. 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 19,2015Long-termStrict performing
Chen LueCash 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 andMarch 19, 2015Long-termStrict performing
its subsidiary to avoid suffering from any loss ”.
Chen LueCash 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 19,2015Long-termStrict performing
Chen LueCash 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 shareholdersMarch 19, 2015Long-termStrict 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 FeiyanIndependent competition1. 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 30,2015Long-termStrict 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; HeRelated transa“1.Before this reorganization, the fairness and reasonableness of pricing and the legitimacy and effectiveness ofMarch 19, 2015Long termStrict performing
Feiyactionsdecision-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-financingNoNoNoNoNo
Equity incentive commitmentNoNoNoNo
Other commitments for medium and small shareholdersNoNoNoNo
Completed on time(Y/N)Yes
If the commitments are not fulfilled on time, shall explain the specify reason and the next work planNil

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 informationInvolved amount (Ten thousand yuan)ProvisionProgressDecisions and effectsExecution of decisionsDisclosure dateIndex to disclosed information
Loan Contract Dispute Case with Shenzhen Guodingsheng Trading Co., Ltd.12,811.63NoSecond instance judgment is given and caseThe Guangdong Shenzhen Intermediate People's CourtAugust 31,2018On August 31, 2018, it was disclosed
is closedissued (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 dispute4,997.22NoThe judgmentDuring implementatioAugust 31,2018On 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 fee31, 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 Qiaoli16,192.92NoThe 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 yuanAugust 31,2018On 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 Ningbo9,523.09NoThe first-instance judgment is closed and an appeal is madeAugust 31,2018On 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-branch29,137.97NoThe judgment is given and the case is closed.Shenzhen Intermediate People's Court issued (2018) Y03Z2798, with a mandatory enforcementAugust 31,2018On 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., Ltd11,711.49NoThe (2018) XZZF Zi No. 140 executionUnder enforcementSeptember 14,2018On 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 executionment 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., Ltd21,111.82NoThe Notice of Enforcement from Beijing Third Intermediate People's Court on the Case of Notarization of Creditor's Rights Documents betweenUnder enforcementSeptember 18,2018On 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 Jiang4,980NoThe execution has been completed.September 18,2018On 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.4,285.52NoThe first-instance judgment is closed and an appeal is madeOctober 23,2018On 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 loan36,492.18NoWaitingSeptemberAnnounce
contract dispute case with Bohai International Trust Co., Ltd.for the judgment of first instance.15,2018ment 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 International10,245.74NoThe first-instance verdict wasNot yet applied for executionSptember 15,2018Announcement on Partial Debt Overdue
Trust Limitedclosedon 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 Limited10,113.78NoThe first-instance verdict was closedNot yet applied for executionSeptember 15,2018Announcement 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.305NoThe judgment is given and the case is closed.Under enforcementOctober 13,2018Announcement 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.456NoThe judgment is given and the case is closed.Under enforcementOctober 13,2018Announcement 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.507NoThe judgment is given and the case is closed.Under enforcementOctober 13,2018Announcement 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.13,801.32NoThe judgment is given and the case is closed.Under enforcementSeptember 14,2018Announcement 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.2,905.1NoThe judgment is given and the case is closed.Not yet applied for executionOctober 24,2018Announcement on Receiving Civil Complaint on October 24, 2018;Announcement on Receiving
2019-075).
Private loan dispute case with Gong Lihong3,143.18NoThe judgment of first instance is issued and an appeal is made. The plaintiff applied for additional preservation in the lawsuit.October 24,2018Announcement 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.1,056.34NoThe first-instance judgment is closed and an appeal is madeOctober 24,2018Announcement 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.32,738.68NoThe judgment is given and the case is closed.Under enforcementSeptember 29,2018Announcement 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.2,140.87NoThe enforcement verdict has been received.In commissionFebruary 13,2019Announcement 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.7,017.76NoUnder enforcementFebruary 13,2019Announcement 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 Bank10,164.09NoNo court session has been held yetFebruary 13,2019Announcement 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.736.1NoEnforcement.In commissionFebruary 13,2019Announcement 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.489.33NoAwaiting judgmentFebruary 13,2019Announcement 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.1,412.36NoAwaiting judgmentFebruary 13,2019Announcement 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.219.97NoWaiting for the judgment of first instanceUnder enforcementFebruary 13,2019Announcement 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.4,717.75NoThe first-instance verdict was closedUnder enforcementFebruary 19,2019Announcement 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.4,163.7NoThe case is closed through mediationUnder enforcementFebruary 19,2019Announcement on Receiving <Civil Complaint>, <Arbitration Notice>
2019-091)
Loan contract dispute case with Li Shaoxiong5,860.92NoThe verdict is closedFebruary 19,2019Announcement 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.30,736.58NoThe enforcement verdict has been received.Under enforcementFebruary 19,2019Announcement 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.979.05NoThe first-instance judgment is closed and an appeal is madeFebruary 19,2019Announcement 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 Kaixiang304.41NoWaiting for the judgment of first instanceFebruary 19,2019Announcement 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.251.57NoAn award is issued upon arbitration and the case is closed.February 19,2019Announcement 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 Branch7,977.89NoWaiting for the judgment of first instanceMarch 1,2019The 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 Branch27,411.99NoNolle prosequi and case closedMarch 1,2019Announcement 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 Futian7,934.39NoAwaiting judgmentMarch 1,2019Announcement 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 Branch20,000NoThe case is closed through mediationUnder enforcementMarch 1,2019Announcement 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 Branch10,024.5NoAwaiting judgmentApril 8,2019Announcement 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 Branch6,100NoAwaiting judgmentApril 8,2019Announcement 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.502NoIn the first instance trialApril 8,2019Announcement 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 Zhigui104.07NoIn the first instance trialApril 8,2019Announcement 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 Branch10,223.39NoAwaiting judgmentApril 8,2019Announcement 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 Branch20,451.46NoThe first-instance judgment is closed and an appeal is madeApril 13,2019Announcement 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.10,000NoNo court session has been held yetMay 11,2019Announcement on Receiving <Civil Complaint> plication > on May 11, 2019(Ann
ouncement No.2019-054)
Financial loan contract case with Shenzhen Rural Commercial Bank .Futian Branch4,522.8NoNo court session has been held yetMay 21,2019Announcement 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.15,843.37NoUnder enforcementUnder enforcementJune 14,2019Announcement 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.3,442.86NoNo court session has been held yetAugust 3,2019Announcement on Receiving <Civil Complaint> plication > on August 3, 2019(Ann
ouncement No.2019-096)
Financial loan contract case with Zhuhai Huarun Bank .Shenzhen Branch10,355.44NoNo court session has been held yetAugust 3,2019Announcement 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.1,048.45NoWaiting for the judgment of first instanceMay 8,2019Announcement on Receiving <Civil Complaint> plication > on May 8, 2019(Announcement No.2019-051)
646.76NoNolle prosequi and case closedMay 8,2019Announcement 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.567.19NoThe case is closed through mediationMay 8,2019Announcement on Receiving <Civil Complaint> plication > on May 8, 2019(Announcement No.2019-051)
Creditor's Subrogation Dispute with Xinbang Construction Group Co., Ltd.397.62NoAwaiting judgmentMay 8,2019Announcement on Receiving <Civil Complaint> plication > on May 8, 2019(Announcement No.2019-051)
Dispute case of contract of sale and purchase with Shenzhen Dingcheng Construction263.56NoThe verdict is closedUnder enforcementMay 8,2019Announcement 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.233.71NoThe verdict is closedMay 8,2019Announcement on Receiving <Civil Complaint> plication > on May 8, 2019(Announcement No.2019-051)
Construction Contract Subcontract Dispute Case With Shandong GRAD Group Co. Ltd.185.97NoAwaiting judgmentMay 8,2019Announcement on Receiving <Civil Complaint> plication > on May 8, 2019(Announcement No.2019-051)
Contract Dispute Case with Dongguan Yangcheng Stainless steel Product Co., Ltd.178.81NoAwaiting judgmentMay 8,2019Announcement on Receiving <Civil Complaint> plication
> on May 8, 2019(Announcement No.2019-051)
Bai Shuogang Labor Dispute Case153.98NoThe verdict is closedExecution completedMay 8,2019Announcement 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 Youmiao145.45NoMediation is closed and Wang Jianbo withdraws the lawsuitUnder implementation, and part of the implementation has been completedMay 8,2019Announcement on Receiving <Civil Complaint> plication > on May 8, 2019(Announcement No.2019-051)
Labor and Personnel Dispute of Guo Xiaoli , Li131.37NoThe case is closed through mediationMay 8,2019Announcement 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 MeilingComplaint> plication > on May 8, 2019(Announcement No.2019-051)
Housing lease contract dispute case with Sino,Great Wall International Engineering Co., Ltd.120NoSino,Great Wall International Engineering Co., Ltd.May 8,2019Announcement 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.116.25NoThe verdict is closedUnder enforcementMay 8,2019Announcement on Receiving <Civil Complaint> plication > on May 8, 2019(Announcement No.2019-051)
Contract Dispute with Jinhai112.18NoThe judgmentMay 8,2019Announcement on
Xinyuan Electric Jiangsu Co., Ltd.is closed and China Construction appealedReceiving <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)
109.4NoThe case is closed through mediationMay 8,2019Announcement 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.106.73NoAwaiting judgmentMay 8,2019Announcement 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.100NoThe case is closed through mediationMay 8,2019Announcement 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.857.73NoNo court session has been held yetMay 11,2019Announcement on Receiving <Civil Complaint> plication > on May 11, 2019(Announcement No.2019-054)
Contract Dispute Case with Jiangsu Huaiyin Construction Engineering Group Co., Ltd.130.49NoThe verdict is closedMay 11,2019Announcement 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.86.63NoUnder enforcementUnder enforcementMay 11,2019Announcement on Receiving <Civil Complaint> plication > on May 11, 2019(Announcement No.2019-054)
Lei Hongxiang construction project contract dispute case.81.87NoWaiting for the judgment of first instanceMay 11,2019Announcement 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.79.45NoNolle prosequi and case closedMay 21,2019Announcement 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.72.57NoThe verdict is closedNot yet applied for executionMay 21,2019Announcement on Receiving <Civil Complaint> plication > on May 21, 2019(Announcement No.2019-061)
Contract dispute case with Guangdong Chuanghong Furniture Co., Ltd.364.57NoAwaiting judgmentJune 13,2019Announcement 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.163.72NoNo court session has been held yetJune 13,2019Announcement 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.149.02NoNo court session has been held yetJune 13,2019Announcement 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.3,336.66NoJune 27,2019Announcement 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.152.66NoNo court session has been held yetJune 27,2019Announcement 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 Center100NoNo court session has been held yetJune 27,2019Announcement 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 Center100NoNo court session has been held yetJune 27,2019Announcement on the Progress of Major Litigation and Arbitration Matters on June 27, 2019 (Announcement No.: 2019-080)
Processing contract dispute case with Beijing106.32NoNo court session has beenJune 27,2019Announcement on the
Gelin Yisen Trade Co., Ltd.held yetProgress 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.379.62NoNo court session has been held yetJuly 3,2019Announcement 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.134.15NoThe verdict is closedNot yet applied for executionJuly 22,2019Announcement 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.82.57NoNo court session has been held yetJuly 22,2019Announcement on the Progress of Major Litigation and Arbitration Matters on July 22, 2019 (Announcement No.: 2019-091)
Wang Hong construction engineering subcontracting Dispute232.96NoNo court session has been held yetJuly 22,2019Announcement 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.209.6NoNo court session has been held yetJuly 22,2019Announcement on the Progress of Major Litigation and Arbitration Matters on July
22, 2019 (Announcement No.: 2019-091)
Sun shuhui construction project subcontract dispute170.51NoAwaiting judgmentJuly 22,2019Announcement 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.179.64NoNo court session has been held yetAugust 3,2019Announcement 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 Longmeida345.71NoNo court session has been held yetAugust 3,2019Announcement 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 informationInvolved amount (Ten thousand yuan)ProvisionProgressDecisions and effectsExecution of decisionsDisclosure dateIndex to disclosed information
Other small litigations(Among them, the amount involved by the company as the prosecutor is RMB 0)2,146.18NoApril 30,2019The full text of the 2018 annual report on April 30, 2019

IX. Punishments and rectifications

√ Applicable □ Not applicable

NameTypeReasonsType of PunishmentConclusion (if any)Disclosure dateDisclosure index
Sino Great Wall Co., LtdOtherAs the company is suspected of violating laws and regulations in information disclosure, according to the relevant provisions of the SecuritiesAn investigation is filed or an administrative punishment is imposed by the China Securities Regulatory CommissionAs of the disclosure date of this announcement, the company has not yet received the China Securities Regulatory Commission'sOctober 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., LtdOtherThe Shenzhen Supervision Bureau of China Securities Regulatory Commission will conduct on-site inspections of the company from May 2018 onwardsBe investigated by a competent authorityDecision 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 ChunlingSenior executivesThe Shenzhen Supervision Bureau of China Securities Regulatory Commission will conduct on-site inspections of the company from May 2018 onwardsBe investigated by a competent authorityDecision 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.16March 7,2019(www.cninfo.com.cn)(Announcement No.:2019-022)
Chen LueDirectorThe Shenzhen Supervision Bureau of ChinaBe investigated by a competent authorityDecision on Administrative Supervision Measures ofMarch 7,2019(www.cninfo.com.cn)(Announcement
Securities Regulatory Commission will conduct on-site inspections of the company from May 2018 onwardsShenzhen 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 CompanyRelevant disclosure date/No. of the guaranteed amountAmount of GuaranteeDate of happening (Date of signing agreement)Actual mount of guaranteeGuarantee typeGuarantee termComplete implementation or notGuarantee for associated parties (Yes or no)
Guarantee of the company for its subsidiaries
Guarantee provided toAmount of guarantee and date of disclosureAmount of the guaranteeActual date of occurring (signing date of agreementsActual amount of guaranteeType of guaranteeTermCompleted or notRelated guarantee
Sino InternationalMay 28,201927,196.18May 10,201927,196.18The joint liability1 yearNoYes
guaranty
Sino InternationalMay 20,201712,000February 12,201812,000The joint liability guaranty1 yearNoYes
Sino InternationalApril 4,20197,000March 31,20197,000The joint liability guaranty1 yearYesYes
Sino InternationalMarch 29,201811,990August 22,201811,990The joint liability guaranty1 yearNoYes
Sino InternationalMay 20,201740,000July 25,201740,000The joint liability guaranty1 yearNoYes
Sino InternationalMay 20,201722,000June 30,201722,000The joint liability guaranty1 yearNoYes
Sino InternationalMay 20,201720,000October 18,201720,000The joint liability guaranty1 yearNoYes
Sino InternationalMay 20,201710,000November 22,201710,000The joint liability guaranty1 yearNoYes
Sino InternationalMay 20,201710,000November 30,201710,000The joint liability guaranty1 yearNoYes
Sino InternationalMarch 31,20168,400March 31,20178,400The joint liability guaranty30 monthsNoYes
Sino InternationalMay 20,20178,000February 13,20188,000The joint liability guaranty1 yearNoYes
Sino InternationalMay 20,201720,000December 28,201720,000The joint liability guaranty1 yearNoYes
Sino InternationalJune 21,20198,000May 29,20198,000The joint liability guaranty1 yearNoYes
Wuhan Commercial Worker HospitalMarch 31,201610,889.81January 18,201710,889.81The joint liability guaranty3 yearsNoYes
Sino Great Wall JianyeMarch 29,20183,500September 30,20183,500The joint liability guaranty1 yearNoYes
Sino Great Wall Medical Investment Management Co., Ltd.April 4,20193,200December 21,20183,200The joint liability guaranty1 yearNoYes
Sino Great Wall Medical Investment Management Co., Ltd.April 4,20193,400March 11,20193,400The joint liability guaranty1 yearNoYes
Total of guarantee for subsidiaries approved in the Period (B1)800,000Total of actual guarantee for subsidiaries in the Period (B2)225,575.99
Total of guarantee for subsidiaries approved at Period-end (B3)800,000Total of actual guarantee for subsidiaries at Period-end (B4)225,575.99
Guarantee of the subsidiaries for the controlling subsidiaries
Name of the Company guaranteedRelevant disclosure date/No. of the guaranteed amountAmount of guaranteeDate of happening (Date o signing agreement)Actual mount of guaranteeGuarantee typeGuarantee termComplete implementation or notGuarantee 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)800,000Total of actual guarantee in the Period(A2+B2+C2)225,575.99
Total of guarantee at Period-end(A3+B3+C3)800,000Total 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

IndexMeasurement unitQuantity / 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 changeIncrease/decrease(+,-)After the Change
AmountProportionShare allotmentBonus sharesCapitalization of common reserve fundOtherSubtotalQuantityProportion
I. Share with conditional subscription438,857,06725.84%-304,969-304,969438,552,09825.82%
3.Other domestic shares438,857,06725.84%-304,969-304,969438,552,09825.82%
Domestic natural person shares438,857,06725.84%-304,969-304,969438,552,09825.82%
II. Shares with unconditional subscription1,259,387,94474.16%304,969304,9691,259,692,91374.18%
1.Common shares in RMB995,584,71358.62%304,969304,969995,889,68258.64%
2.Foreign shares in domestic market263,803,23115.53%00263,803,23115.53%
III. Total of capital shares1,698,245,011100.00%001,698,245,011100.00%

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 NameInitial Restricted SharesNumber of Unrestricted Shares This TermNumber of Increased Restricted Shares This TermRestricted Shares in the End of the TermReason for Restricted SharesDate of Restriction Removal
Chen Lue55,995,9340055,995,934The major asset restructuring and the issue of shares to purchase assets and raise matching funds--
Chen Lue381,594,98300381,594,983Executive locking stockNot applicable
Li Erlong619,050154,7250464,325Executive locking stockNot applicable
Yang Chunling46,1250046,125Executive locking stockNot applicable
Liang Rong600,975150,2440450,731Executive locking stockNot applicable
Total438,857,067304,9690438,552,098----

II.Issuing and listing

□ Applicable √ Not applicable

III. Shareholders and shareholding

In Shares

Total number of common69,421Total number of preferred0
shareholders at the end of the reporting periodshareholders 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
ShareholdersNature of shareholderProportion of shares held(%)Number of shares held at period -endChanges in reporting periodAmount of restricted shares heldAmount of un-restricted shares heldNumber of share pledged/frozen
State of shareAmount
Chen LueDomestic Natural person34.36%583,454,5560437,590,917145,863,639Pledge583,454,462
Freeze583,454,556
STYLE-SUCCESS LIMITEDForeign legal person5.47%92,970,9100092,970,910
Union Holdings Co., Ltd.Domestic Non- State-owned legal person5.18%87,935,9210087,935,921
He FeiyanDomestic Natural person3.23%54,800,4580054,800,458Freeze54,800,458
Jiutai Fund-Bank of Communications-Jiutai Huitong No.2 specific customer asset management planOther2.40%40,696,7720040,696,772
Rich Crown Investment Co., Ltd.Foreign legal person1.37%23,235,3130023,235,313
Lei ShizhangDomestic Natural person0.88%15,000,00010,555,000015,000,000
Qinghai Heyi Industry Development Co., Ltd.Domestic Non- State-owned legal person0.79%13,357,0840013,357,084Pledge13,357,084
HuangDomestic0.68%11,480,-820,000011,480,00
HuaianNatural person0000
Liu YongDomestic Natural person0.41%7,044,3524,745,50007,044,352
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 shareholdersThe 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 shareholderQuantity of unrestricted shares held at the end of the reporting periodShare type
Share typeQuantity
Che Lue145,863,639RMB Common shares145,863,639
STYLE-SUCCESS LIMITED92,970,910Foreign shares placed in domestic exchang92,970,910
Union Holdings Co., Ltd.87,935,921RMB Common shares87,935,921
He Feiyan54,800,458RMB Common shares54,800,458
Jiutai Fund-Bank of Communications-Jiutai Huitong No.2 specific customer asset management plan40,696,772RMB Common shares40,696,772
Rich Crown Investment Co., Ltd.23,235,313Foreign shares placed in domestic exchange23,235,313
Lei Shizhang15,000,000RMB Common shares15,000,000
Qinghai Heyi Industry Development Co., Ltd.13,357,084RMB Common shares13,357,084
Huang Huaian11,480,000Foreign shares11,480,000
placed in domestic exchange
Liu Yong7,044,352RMB Common shares7,044,352
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 shareholdersMr. 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

NameTitleTypeDateReason
Cui HongliDeputy General ManagerDismissalJuly 29,2019Resigned 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

ItemsJune 30,2019December 31,2018
Current asset:
Monetary fund161,407,308.22658,714,886.48
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 receivable44,816,417.701,518,790.00
Account receivable3,268,131,916.964,202,594,258.24
Financing of receivables
Prepayments326,344,231.02220,261,619.13
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts receivable
Other account receivable1,609,942,861.492,186,223,361.40
Including:Interest receivable
Dividend receivable
Repurchasing of financial assets
Inventories997,074,459.45717,531,578.23
Contract assets
Assets held for sales105,075,792.00105,075,792.00
Non-current asset due within 1 year
Other current asset3,975,630.095,795,797.44
Total of current assets6,516,768,616.938,097,716,082.92
Non-current assets:
Loans and payment on other’s behalf disbursed
Debt investment
Available for sale of financial assets10,338,500.00
Other investment on bonds
Expired investment in possess
Long-term receivable16,708,613.1916,708,613.19
Long term share equity investment106,837,810.83106,837,810.83
Other equity instruments investment
Other non-current financial assets
Property investment
Fixed assets139,240,017.20158,746,947.91
Construction in progress36,805,894.0336,697,284.04
Production physical assets
Oil & gas assets
Use right assets
Intangible assets91,036,651.0799,921,251.67
Development expenses
Goodwill27,268,234.5327,268,234.53
Long-germ expenses to be amortized3,038,767.306,727,688.90
Deferred income tax asset117,317,681.38117,983,727.91
Other non-current asset916,588,199.85924,509,792.99
Total of non-current assets1,454,841,869.381,505,739,851.97
Total of assets7,971,610,486.319,603,455,934.89
Current liabilities
Short-term loans3,306,944,094.492,862,584,629.01
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 payable396,643,774.401,034,087,499.72
Account payable833,996,925.55892,155,630.43
Advance receipts521,531,072.64478,101,743.92
Selling of repurchased financial assets
Deposit taking and interbank deposit
Entrusted trading of securities
Entrusted selling of securities
Employees’ wage payable75,011,224.2386,414,858.86
Tax payable384,786,118.81393,957,887.52
Other account payable2,217,993,070.712,212,412,970.43
Including:Interest payable505,034,931.59280,806,670.49
Dividend payable8,392,335.458,541,818.64
Fees and commissions payable
Reinsurance fee payable
Contract Liabilities
Liabilities held for sales
Non-current liability due within 1 year975,719,981.55975,719,981.55
Other current liability
Total of current liability8,712,626,262.388,935,435,201.44
Non-current liabilities:
Reserve fund for insurance contracts
Long-term loan120,000,000.00120,000,000.00
Bond payable266,242,374.52254,801,342.47
Including:preferred stock
Sustainable debt
Lease liability
Long-term payable276,923.55322,990.35
Long-term remuneration payable to staff
Expected liabilities2,958,723.152,958,723.15
Deferred income
Deferred income tax liability23,509,703.4124,369,456.18
Other non-current liabilities
Total non-current liabilities412,987,724.63402,452,512.15
Total of liability9,125,613,987.019,337,887,713.59
Owners’ equity
Share capital1,698,245,011.001,698,245,011.00
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 reserve18,250,420.7121,026,082.43
Surplus reserves84,394,441.2384,394,441.23
Common risk provision
Retained profit-1,686,340,531.63-269,566,140.13
Total of owner’s equity belong to the parent company-1,184,353,287.94235,202,473.51
Minority shareholders’ equity30,349,787.2430,365,747.79
Total of owners’ equity-1,154,003,500.70265,568,221.30
Total of liabilities and owners’ equity7,971,610,486.319,603,455,934.89

Legal Representative: Chen LuePerson in charge of accounting: Yang ChunlingAccounting Dept Leader: Yang Chunling

2. Balance sheet of Parent Company

In RMB

ItemsJune 30,2019December 31, 2018
Current asset:
Monetary fund46,772,355.3646,778,625.47
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 receivable2,815,822,695.732,986,852,664.14
Including:Interest receivable
Dividend receivable100,000,000.00100,000,000.00
Inventories
Contract assets
Assets held for sales
Non-current asset due within 1 year
Other current asset2,604,075.38
Total of current assets2,862,595,051.093,036,235,364.99
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 investment3,323,211,536.663,323,211,536.66
Other equity instruments investment
Other non-current financial assets
Property investment
Fixed assets32,550.4236,371.12
Construction in progress
Production physical assets
Oil & gas assets
Use right assets
Intangible assets
Development expenses
Goodwill
Long-germ expenses to be amortized1,074,666.67
Deferred income tax asset
Other non-current asset728,328,020.00728,328,020.00
Total of non-current assets4,051,572,107.084,052,650,594.45
Total of assets6,914,167,158.177,088,885,959.44
Current liabilities
Short-term loans2,192,097,807.252,189,866,602.21
Transactional financial liabilities
Financial liabilities measured at fair value with variations accounted into current income account
Derivative financial liabilities
Notes payable28,900,000.0029,000,000.00
Account payable66,000,000.0066,000,000.00
Advance receipts
Contract Liabilities
Employees’ wage payable22,743,594.8615,016,143.39
Tax payable94,679,025.4797,149,029.10
Other account payable1,455,190,996.161,347,473,661.05
Including:Interest payable421,338,124.12243,458,030.15
Dividend payable8,392,335.458,541,818.64
Liabilities held for sales
Non-current liability due within 1 year866,250,000.00866,250,000.00
Other current liability
Total of current liability4,725,861,423.744,610,755,435.75
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 liability4,725,861,423.744,610,755,435.75
Owners’ equity
Share capital1,698,245,011.001,698,245,011.00
Other equity instruments
Including:preferred stock
Sustainable debt
Capital reserves1,237,956,472.371,237,956,472.37
Less:Shares in stock
Other comprehensive income
Special reserve
Surplus reserves26,309,287.0026,309,287.00
Retained profit-774,205,035.94-484,380,246.68
Total of owners’ equity2,188,305,734.432,478,130,523.69
Total of liabilities and owners’ equity6,914,167,158.177,088,885,959.44

3.Consolidated Income Statement

In RMB

ItemsSemi-annual of 2019Semi-annual of 2018
I. Income from the key business256,367,221.671,586,971,575.24
Incl:Business income256,367,221.671,586,971,575.24
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost656,035,917.571,604,688,029.35
Incl:Business cost227,646,036.241,312,212,102.46
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 surcharge1,694,890.872,106,518.05
Sales expense14,477,142.7616,521,622.08
Administrative expense87,163,665.56127,907,861.56
R & D expense
Financial expenses325,054,182.14145,939,925.19
Including:Interest expense326,584,927.26
Interest income2,650,575.42
Add:Other income
Investment gain(“-”for loss)6,596,880.935,171,892.51
Including: investment gains from affiliates
Financial assets measured at amortized cost cease to be recognized as income
Gains from currency exchange5,694,081.87
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 income71,623.22179,220,495.20
Less: Non-operating expense465,129,413.62636,300.61
IV. Total profit(“-”for loss)-1,415,839,991.15161,855,758.33
Less:Income tax expenses950,360.9018,790,236.79
V. Net profit-1,416,790,352.05143,065,521.54
(I) Classification by business continuity
1.Net continuing operating profit-1,416,790,352.05143,065,521.54
2.Termination of operating net profit
(II) Classification by ownership
1.Net profit attributable to the owners of parent company-1,416,774,391.50143,999,455.72
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-1,416,796,060.28142,802,513.18
Total comprehensive income attributable to the owner of the parent company-1,416,780,099.73143,736,447.36
Total comprehensive income attributable minority shareholders-15,960.55-933,934.18
VIII. Earnings per share
(I)Basic earnings per share-0.83430.0848
(II)Diluted earnings per share-0.83430.0848

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

ItemsSemi-annual of 2019Semi-annual of 2018
I. Income from the key business0.00117,362.07
Incl:Business cost0.000.00
Business tax and surcharge
Sales expense49,276.69994,445.50
Administrative expense19,086,870.6617,904,118.30
R & D expense
Financial expenses255,746,111.0081,405,456.80
Including:Interest expenses255,844,130.73
Interest income24,977.21
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 assets14,942,530.918,438,499.87
Assets disposal income
II. Operational profit(“-”for loss)-289,824,789.26-108,625,158.40
Add :Non-operational income100,000,000.00
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

ItemsSemi-annual of 2019Semi-annual of 2018
I.Cash flows from operating activities
Cash received from sales of goods or rending of services572,525,325.642,448,493,180.76
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 returned968,575.593,369,607.31
Other cash received from business operation212,666,069.553,596,297,555.25
Sub-total of cash inflow786,159,970.786,048,160,343.32
Cash paid for purchasing of merchandise and services449,528,268.832,123,943,719.36
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 staffs110,097,634.29172,389,891.23
Taxes paid22,079,749.3875,707,443.61
Other cash paid for business activities626,606,345.082,577,954,923.49
Sub-total of cash outflow from business activities1,208,311,997.584,949,995,977.69
Net cash generated from /used in operating activities-422,152,026.801,098,164,365.63
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 assets432,865.55
Net cash received from disposal of subsidiaries or other operational units1,062,398.45
Other investment-related cash received
Sub-total of cash inflow due to investment activities1,495,264.00
Cash paid for construction of fixed assets, intangible assets and other long-term assets12,179,377.50
Cash paid as investment226,429,730.78
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 activities202,986,996.24
Net cash flow generated by investment-201,491,732.24
III.Cash flow generated by financing
Cash received as investment490,000.00
Including: Cash received as investment from minor shareholders
Cash received as loans379,941,841.391,170,509,245.00
Cash received from bond placing
Other financing –related cash received6,362,955.91
Sub-total of cash inflow from financing activities386,304,797.301,170,999,245.00
Cash to repay debts30,000,000.002,282,455,158.52
Cash paid as dividend, profit, or interests169,918,204.82
Including: Dividend and profit paid by subsidiaries to minor shareholders
Other cash paid for financing activities
Sub-total of cash outflow due to financing activities30,000,000.002,452,373,363.34
Net cash flow generated by financing356,304,797.30-1,281,374,118.34
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 term125,767,796.88647,222,590.49
VI ..Balance of cash and cash equivalents at the end of term59,521,718.55258,018,921.01

6. Cash flow statement of the Parent Company

In RMB

ItemsSemi-annual of 2019Semi-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 operation3,014,684.543,329,634,571.90
Sub-total of cash inflow3,014,684.543,329,634,571.90
Cash paid for purchasing of merchandise and services
Cash paid to staffs or paid for staffs626,668.10
Taxes paid1,012,217.08
Other cash paid for business activities26,695,809.222,256,119,534.57
Sub-total of cash outflow from business activities26,695,809.222,257,758,419.75
Net cash generated from /used in operating activities-23,681,124.681,071,876,152.15
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 investment13,000,000.00
Net cash received from subsidiaries and other operational units
Other cash paid for investment
activities
Sub-total of cash outflow due to investment activities13,000,000.00
Net cash flow generated by investment-13,000,000.00
III. Cash flow generated by financing
Cash received as investment
Cash received as loans755,650,000.00
Cash received from bond placing
Other financing –related ash received
Sub-total of cash inflow from financing activities755,650,000.00
Cash to repay debts1,783,743,643.54
Cash paid as dividend, profit, or interests91,415,896.63
Other cash paid for financing activities
Sub-total of cash outflow due to financing activities1,875,159,540.17
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 term23,708,889.9099,547,899.86
VI ..Balance of cash and cash equivalents at the end of term27,765.2238,914,511.84

7. Consolidated Statement on Change in Owners’ Equity

Amount in this period

In RMB

ItemsSemi-annual of 2019
Owner’s equity Attributable to the Parent CompanyMinor sharTotal of own
shareOther Equity instrumentCapitalLess:OtherSpecializSurplusCommonRetainedOtherSubtotal
preOt
Capitaferred stockSustainable debtherreservesShares in stockComprehensive Incomeed reservereservesrisk provisionprofiteholders’ equityers’ equity
I.Balance at the end of last year1,698,245,011.00-1,298,846,540.07-50,380.9521,026,082.4384,394,441.23-269,566,140.13235,202,473.5130,365,747.79265,568,221.30
Add: Change of accounting policy0.00
Correcting of previous errors0.00
Merger of entities under common control0.00
Other0.00
II.Balance at the beginning of current year1,698,245,011.00-1,298,846,540.07-50,380.9521,026,082.4384,394,441.23-269,566,140.13235,202,473.5130,365,747.79265,568,221.30
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 or0.00
decreasing of capital by owners
1.Ordinary Shares invested by shareholders0.00
2.Holders of other equity instruments invested capital0.00
3.Amount of shares paid and accounted as owners’ equity0.00
4.Other0.00
(III)Profit allotment0.00
1.Providing of surplus reserves0.00
2.Providing of common risk provisions0.00
3.Allotment to the owners (or shareholders)0.00
4.Other0.00
(IV) Internal transferring of owners’ equity0.00
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 earnings0.00
5.Other comprehensive income carry-over retained earnings0.00
6.Other0.00
(V). Special reserves-2,775,661.72-2,775,661.72-2,775,661.72
1. Provided this year0.00
2.Used this term2,775,661.722,775,661.722,775,661.72
(VI)Other
IV. Balance at the end of this term1,698,245,011.00-1,298,846,540.07-56,089.1818,250,420.7184,394,441.23-1,686,340,531.63-1,184,353,287.9430,349,787.24-1,154,003,500.70

Amount in last year

In RMB

ItemsSemi-annual of 2018
Owner’s equity Attributable to the Parent CompanyMinor shareholders’ equityTotal of owners’ equity
share CapitaOther Equity instrumentCapital reservesLess: Shares in stockOther Comprehensive IncomeSpecialized reserveSurplus reservesCommon risk provisionRetained profitOtherSubtotal
preferred stockSustainable debtOther
I.Balance at the end of last year1,698,245,011.00-1,299,349,701.74858,242.13164,231,078.1884,394,441.231,503,103,396.722,151,482,467.52108,684,402.892,260,166,870.41
Add: Change of accounting policy0.00
Correcting of previous errors0.00
Merger of entities under common control0.00
Other0.00
II.Balance at the beginning of current year1,698,245,011.00-1,299,349,701.74858,242.13164,231,078.1884,394,441.231,503,103,396.722,151,482,467.52108,684,402.892,260,166,870.41
III.Changed in the current year-263,008.36-93,691,786.53148,062,848.0354,108,053.147,014,321.8261,122,374.96
(1)Total comprehensive income-263,008.36143,999,455.72143,736,447.36-933,934.18142,802,513.18
(II)Investment or decreasing of capital by owners4,063,392.314,063,392.317,948,256.0012,011,648.31
1.Ordinary Shares invested by shareholders0.00
2.Holders of other equity instruments invested capital0.00
3.Amount of shares paid and accounted as owners’ equity0.00
4.Other4,063,392.314,063,392.317,948,256.0012,011,648.31
(III)Profit allotment0.00
1.Providing of surplus reserves0.00
2.Providing of common risk provisions0.00
3.Allotment to the owners (or shareholders)0.00
4.Other0.00
(IV) Internal transferring of owners’ equity0.00
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 earnings0.00
5.Other comprehensive income carry-over retained earnings0.00
6.Other0.00
(V). Special reserves-93,691,786.53-93,691,786.53-93,691,786.53
1. Provided this year7,271,059.707,271,059.707,271,059.70
2.Used this term-100,962,846.23-100,962,846.23-100,962,846.23
(VI)Other0.00
IV. Balance at the end of this term1,698,245,011.000.000.000.00-1,299,349,701.740.00595,233.7770,539,291.6584,394,441.230.001,651,166,244.750.002,205,590,520.66115,698,724.712,321,289,245.37

8. Statement of change in owner’s Equity of the Parent Company

Amount in this period

In RMB

ItemsSemi-annual of 2019
Share capitalOther Equity instrumentCapital reservesLess: Shares in stockOther Comprehensive IncomeSpecialized reserveSurplus reservesRetained profitOtherTotal of owners’ equity
preferred stockSustainable debtOther
I.Balance at the end of last year1,698,245,011.001,237,956,472.3726,309,287.00-484,380,246.682,478,130,523.69
Add: Change of accounting policy0.00
Correcting of previous errors0.00
Other0.00
II.Balance at the beginning of current year1,698,245,011.001,237,956,472.3726,309,287.00-484,380,246.682,478,130,523.69
III.Changed in-289,-289,824
the current year824,789.26,789.26
(I)Total comprehensive income-289,824,789.26-289,824,789.26
(II) Investment or decreasing of capital by owners0.00
1.Ordinary Shares invested by shareholders0.00
2.Holders of other equity instruments invested capital0.00
3.Amount of shares paid and accounted as owners’ equity0.00
4.Other0.00
(III)Profit allotment0.00
1.Providing of surplus reserves0.00
2.Allotment to the owners (or shareholders)0.00
3.Other0.00
(IV) Internal transferring of owners’ equity0.00
1. Capitalizing of capital reserves (or to0.00
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 earnings0.00
5.Other comprehensive income carry-over retained earnings0.00
6.Other0.00
(V) Special reserves0.00
1. Provided this year0.00
2.Used this term0.00
(VI)Other0.00
IV. Balance at the end of this term1,698,245,011.001,237,956,472.3726,309,287.00-774,205,035.940.002,188,305,734.43

Amount in last year

In RMB

ItemsSemi-annual of 2018
ShareOther Equity instrumentCapitalLess: ShareOther CompSpecializedSurplusRetained profitOtherTotal of owners’
Capitalpreferred stockSustainable debtOtherreservess in stockrehensive Incomereservereservesequity
I.Balance at the end of last year1,698,245,011.001,237,956,472.3726,309,287.0088,188,591.103,050,699,361.47
Add: Change of accounting policy
Correcting of previous errors
Other
II.Balance at the beginning of current year1,698,245,011.001,237,956,472.3726,309,287.0088,188,591.103,050,699,361.47
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 term1,698,245,011.001,237,956,472.3726,309,287.0079,563,432.703,042,074,203.07

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 amountThe 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 reserveOn 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 reserveOn 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 nameMethod for withdrawal of bad debt reserve
Account aging portfolioAccount age analysis method
Combination of affiliated parties within the range of consolidationRegardless of the provision for bad debts

For those subject to provision for bad debts under aging analysis method:

AgingRate for receivables(%)Rate for other receivables(%)
Within 1 year(Included 1 year)55
1-2 years1010
2-3 years3030
3-4 years5050
4-5 years8080
Over 5 years100100

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

TypeDepreciation methodDepreciation lifeSalvage rate (%)Annual depreciation
(Year)rate (%)
House and buildingsStraight-line method20 years54.75
Mechanical equipmentStraight-line method1059.5
Transportation equipmentStraight-line method7513.57
Electronic equipment and other equipmentStraight-line method3-5519.00-31.67

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:

ItemsService lifeAmortization method
Software royalty5 yearsStraight-line method
Land use right50 yearsStraight-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

TaxesTaxation basisTax rate
VATFor 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 period0%,3%,6%,11%,17%
Urban maintenance and construction taxPaid as per 7%, 5% and 1% of the turnover tax paid actually.7%,5%,1%
Enterprise income taxPaid as per 15% and 25% of taxable income15%,25%
Educational surtaxPaid as per 3% of the turnover tax paid actually.3%
Local educational surtaxPaid 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 payersIncome 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 LLC25%
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 LLC21%
Sino Great Wall Group Co.,Limited17%
Far eastern international engineering company,LLC20%
Sino Great Wall(Philippines) International Corporation30%
Sino Wai Man International Engineering Limited12%
Sino Great Wall (HK) Property Co., Limited17%
SGW HPEngineeringConstructionSDN.BHD24%
SGW VENTURES SDN.BHD.24%
SGW CONSTRUCTION (LANGKAWI) SDN.BHD.24%
SINO GREAT WALL GENERAL TRADING & CONTRACTING CO.LTD15%
Sino Changcheng(Lao)Co.,Ltd25%
Sino International Engineering (Laos) Co., Ltd.25%
Sino Great Wall Investment (Laos) Co., Ltd.25%
Sino Great Wall Group (UK)Co.,Limited19%
Sino Great Wall International Engineering( MM ) Co.,Ltd25%
Sino Great Wall International Engineering Co.,Ltd0%
Inrich Me Engineering Co,.Ltd17%
SINOGREAT
Sino Great WallInternationalEngineering(Thailand) Co.,Ltd.20%
Sino Great Wall International Engineering(CNMI) Co.,LLC.21%
SINO GREAT WALL(USA).INC21%
PT.SINO GREAT WALL INVESTMENT INDONESIA25%
PT.SINO GREAT WALL CONSTRUCTION INDONESIA25%
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

ItemsEnding balanceOpening balance
Cash on hand3,431,627.743,116,229.51
Bank deposit56,090,090.81122,651,567.37
Other monetary resources101,885,589.67532,947,089.60
Total161,407,308.22658,714,886.48
Including: the total amount of overseas funds16,550,177.2751,902,846.57

Other notes

ItemsEnding balanceOpening balance
Bank acceptance guarantee deposit10,013,312.10230,602,428.53
Guarantee bond51,667,953.23181,351,839.27
Fixed time deposits or call deposits used for guarantee3,024,675.00100,024,675.00
Overseas funds with limited remittance873,465.90
Bond for wages of migrant workers303,963.07303,963.07
Freezing36,875,686.2719,790,717.83
Total101,885,589.67532,947,089.60

2. Transactional financial assets

In RMB

ItemsEnding balanceOpening balance
Of which :
Of which:

Other notes

3. Derivative financial assets

In RMB

ItemsEnding balanceOpening balance

Other notes

4. Notes receivable

1) Classified Presentation of Notes Receivable

In RMB

ItemsEnding balanceOpening balance
Bank acceptance5,480,000.000.00
Trade acceptance39,336,417.701,518,790.00
Total44,816,417.701,518,790.00

In RMB

CategoryEnding balanceOpening balance
Book balanceBad debt reserveBook valueBook balanceBad debt reserveBook value
AmountProportionAmountWithdrawal proportionAmountProportionAmountWithdrawal proportion
Of which :
Of which:

Accrual of bad debt provision by single item:

In RMB

NameEnding balance
Book balanceBad debt reserveWithdrawal proportionReason

Accrual of bad debt provision by portfolio:

In RMB

NameEnding balance
Book balanceBad debt reserveWithdrawal proportionReason

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

CategoryOpening balanceAmount of change in the current periodClosing balance
AccrualReversed or collected amountWrite-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

ItemsAmounts 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

ItemsConfirmation-terminated amount at the end of periodNon-confirmation-terminated amount at the end of period
Bank acceptance3,858,910.00
Trade acceptance4,460,584.00
Total8,319,494.00

(5) Bills turned into account receivables due to the default of the drawer of the Company at the end of term

In RMB

ItemsEnd-of-period arrears among the receivables

Other notes

(6)The actual write-off of notes receivable for the current period

In RMB

ItemsAmount

The important notes receivable write-off situation:

In RMB

NameNatureAmountReasonWrite-off procedures performedWhether the money is generated by the associated transaction

Notes:

5.Accounts receivable

1) Classified Disclosure of Accounts Receivable

In RMB

CategoryEnding balanceOpening balance
Book balanceBad debt reserveBook valueBook balanceBad debt reserveBook value
AmountProportiAmountWithdraAmountProportiAmountWithdra
onwal proportiononwal proportion
Accrual of bad debt provision by single item717,766,987.3315.16%287,106,794.9340.00%430,660,192.40716,094,881.3213.72%286,437,952.5340.00%429,656,928.79
Of which:
Accrual of bad debt provision by portfolio4,018,055,348.2184.84%1,180,583,623.6529.38%2,837,471,724.564,503,309,614.8086.28%730,372,285.3516.22%3,772,937,329.45
Of which:
Total4,735,822,335.54100.00%1,467,690,418.5869.38%3,268,131,916.965,219,404,496.12100.00%1,016,810,237.8856.22%4,202,594,258.24

Accrual of bad debt provision by single item:287106794.93

In RMB

Accounts receivable (per unit)Ending balance
Accounts receivableBad debt reserveWithdrawal proportionReasons for withdrawal
China Harbor Engineering Company Ltd.717,766,987.33287,106,794.9340.00%Shutdown for the project of Military Academy, Ministry of National Defense
Total717,766,987.33287,106,794.93----

Accrual of bad debt provision by single item

In RMB

Accounts receivable (per unit)Ending balance
Accounts receivableBad debt reserveWithdrawal proportionReasons for withdrawal

Accrual of bad debt provision by single item

In RMB

Accounts receivable (per unit)Ending balance
Accounts receivableBad debt reserveWithdrawal proportionReasons for withdrawal

Accrual of bad debt provision by portfolio

In RMB

Accounts receivable (per unit)Ending balance
Accounts receivableBad debt reserveWithdrawal proportionReasons 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

AgingClosing balance
Within 1 year(Including 1 year)367,158,991.91
367,158,991.91
1-2 years1,074,794,445.46
2-3 years1,739,183,932.65
Over 3 years836,917,978.19
3-4 years533,846,351.71
4-5 years185,018,763.12
Over 5 years118,052,863.36
Total4,018,055,348.21

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

CategoryOpening balanceAmount of change in the current periodClosing balance
AccrualReversed or collected amountWrite-off

Of which the significant amount of the reversed or collected part during the reporting period

In RMB

ItemsReversed or collected amountMethod

(3)The current accounts receivable written-offs situation

In RMB

ItemsAmount written-offs

Account receivables actually written-offs during the reporting period:

In RMB

NameNature of account receivableAmount written-offReason for written -offVerification proceduresArising form related transactions(Y/N)

Notes:

(4)The ending balance of account receivables owed by the imputation of the top five parties

Unit nameEnding balance
Accounts receivableProportion to total accounts receivable (%)Bad debt reserve
China Harbor Engineering Company Ltd.833,351,267.7417.60%336,846,269.26
POWERCHINA Construction Group Ltd.675,255,488.3114.26%193,843,163.07
Henan NO.1 Thermal Power Construction Company297,332,124.146.28%124,190,740.45
Oxley Gem (Cambodia)Co.,Ltd281,722,007.895.95%28,172,200.79
Cambodia Petrochemical Co., Ltd.211,776,257.794.47%59,760,312.72
Total2,299,437,145.8748.55%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

ItemsEnd of termOpening 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

AgingItemsEnding balance
AmountProportion(%)AmountProportion(%)
Within 1 year119,092,458.5236.49%207,889,106.3971.74%
1-2 years138,133,509.8442.33%8,022,057.2421.31%
2-3 years53,914,086.1616.52%3,620,871.706.17%
Over 3 years15,204,176.504.66%729,583.800.78%
Total326,344,231.02--220,261,619.13--

Notes:

(2)The ending balance of Prepayments owed by the imputation of the top five parties

Unit nameRelationship with the companyEnding balanceProportion to the total ending balance of advance payments (%)Advance payment timeReasons for not settlement
Jiangsu Juye Jianshe Group Co., Ltd.Subcontractor37,132,752.1311.38%Within 3 yearsAdvance payment for subcontracted project
Zhongcheng Jianye Construction Co., Ltd.Subcontractor31,356,742.069.61%Within 2 yearsAdvance payment for subcontracted project
Shandong Zhiyuan Building Installation Engineering Co., Ltd.Subcontractor20,819,043.446.38%Within 2 yearsAdvance payment for subcontracted project
Hangzhou Banwang Construction Labour service Co., Ltd.Subcontractor18,343,409.895.62%Within 2 yearsAdvance payment for subcontracted project
Longyan City Hengda Engineering Co., Ltd.Subcontractor9,823,258.743.01%Within 2 yearsAdvance payment for subcontracted project
Total117,475,206.2636.00%

Other notes:

8. Other accounts receivable

In RMB

ItemsEnding balanceOpening balance
Other accounts receivable1,609,942,861.492,186,223,361.40
Total1,609,942,861.492,186,223,361.40

(1)Interest receivable

1) Classification of interest receivable

In RMB

ItemsEnding balanceOpening balance

2) Important overdue interest

In RMB

Borrowing unitEnding balanceOverdue timeOverdue reasonWhether 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 balanceOpening balance

2) Important dividends receivable over one year of account age

In RMB

Items (or the invested unit)Ending balanceAccount ageReason for not recyclingWhether 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

NatureClosing book balanceOpening book balance
Other accounts receivables that are individually significant and for which individual bad debt reserves are withdrawn20,402,980.0022,402,980.00
Other accounts receivable with bad debt reserve withdrawn as per the portfolio of credit risk characteristics1,880,687,952.402,341,177,867.34
Other accounts receivable with insignificant single amount and having bad debt reserve withdrawn separately2,963,005.73
Total1,901,090,932.402,366,543,853.07

2)Bad-debt provision

In RMB

Bad Debt ReservesStage 1Stage 2Stage 3Total
Expected credit losses over the next 12 monthsExpected 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

AgingEnding balance
Within 1 year(Including 1 year)158,377,488.78
1-2 years1,371,150,036.61
2-3 years246,410,858.13
Over 3 years104,749,568.88
3-4 years47,765,797.84
4-5 years43,378,672.91
Over 5 years13,605,098.13
Total1,880,687,952.40

3) Accounts receivable withdraw, reversed or collected during the reporting periodThe withdrawal amount of the bad debt provision:

In RMB

CategoryOpening balanceAmount of change in the current periodClosing balance
AccrualReversed or collected amount

Of which the significant amount of the reversed or collected part during the reporting period

In RMB

ItemsReversed or collected amountMethod

4) Other Receivables with Actual Verification in the Reporting Period

ItemsAmount

Important cancelation after verification of other accounts receivable:

In RMB

Unit nameNature of other accounts receivableAmounts cancelled after verificationReasons for cancelation after verificationProcedures performed for cancelation after verificationWhether 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

NameNatureClosing balanceAgingProportion of the total year end balance of the accounts receivableClosing balance of bad debt provision
Longyan City Hengda Engineering Co., Ltd.Intercourse funds of the organization338,357,011.98Within 2 years17.80%32,234,196.76
POWERCHINA Construction Group Ltd.Intercourse funds of the organization251,345,988.901-2 years13.22%25,134,598.89
Yueyang Public Resource Trading CenterTender bond131,500,000.002-3 years6.92%39,450,000.00
Hebei Xuxing Industrial Co., Ltd.Tender bond55,000,000.001-2 years2.89%5,500,000.00
China Harbor Engineering Company Ltd.Intercourse funds of the organization54,300,929.28Within 4 years2.86%17,527,531.41
Total--830,503,930.16--43.69%119,846,327.06

(6) Accounts receivable involved with government subsidies

In RMB

NameName of government subsidy projectClosing balanceClosing agingEstimated 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

iEnding balanceOpening balance
Book balanceDepreciation reserveBook valueBook balanceDepreciation reserveBook value
Raw materials98,275.3098,275.30110,557.92110,557.92
Merchandise inventory3,325,663.173,325,663.1710,708,600.5010,708,600.50
Completed and unsettled assets formed by the construction contract965,637,960.464,354,226.05961,283,734.41678,132,183.224,354,226.05673,777,957.17
Development costs30,299,350.3630,299,350.3630,299,350.3630,299,350.36
Others2,067,436.212,067,436.212,635,112.282,635,112.28
Total1,001,428,685.504,354,226.05997,074,459.45721,885,804.284,354,226.05717,531,578.23

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

ItemsOpening balanceAmount increased of current periodAmount decreased of current periodEnding balance
WithdrawnOthersTransferred-back or written-offOthers
Completed and4,354,226.054,354,226.05
unsettled assets formed by the construction contract
Total4,354,226.054,354,226.05

(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

ItemsAmount
Aggregate costs incurred18,832,783,056.38
Aggregate gross profits acknowledged4,350,050,237.36
Minus: estimated losses4,354,226.05
Amount settled22,217,195,333.28
Completed and unsettled assets formed by the construction contract961,283,734.41

Other description:

10.Contact assets

In RMB

ItemsEnding balanceOpening balance
Book balanceDepreciation reserveBook valueBook balanceDepreciation reserveBook value

The amount and reasons of major changes in the book value of the contract assets during the current period:

In RMB

ItemsAmountReason

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

ItemsEnding carrying amountImpairment provisionEnding carrying valueFair valueEstimated disposal costEstimated disposal time

Other notes:

12. Non-current Assets Due Within One Year

In RMB

ItemsEnding balanceOpening balance

Important creditor's rights investment / other creditor's rights investment

Items

ItemsEnding balanceOpening balance
Face valueRateActual rateDue dateFace valueRateActual rateDue date

Other notes:

13. Other current assets

Whether implemented new revenue guidelines

□ Yes √No

In RMB

ItemsEnding balanceOpening balance
Advance tax93,709.32291,392.34
Input tax to be deducted or verified3,881,920.775,504,405.10
Total3,975,630.095,795,797.44

Other notes:

14.Creditor's rights investment

In RMB

ItemsEnding balanceOpening balance
Book balanceDepreciation reserveBook valueBook balanceDepreciation reserveBook value

Important creditor's rights investment

In RMB

ItemsEnding balanceOpening balance
Face valueRateActual rateDue dateFace valueRateActual rateDue date

2)Bad-debt provision

In RMB

Bad Debt ReservesStage 1Stage 2Stage 3Total
Expected credit losses over the next 12 monthsExpected 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

ItemsOpening balanceAccrued interestChange of fair value in the periodClosing balanceCostCumulative changes of fair valueCumulative loss impairment recognized in other comprehensive incomeRemark

Important other creditors' investment

In RMB

Other creditors' investmentClosingOpening balance
Face valueRateActual rateDue dateFace valueRateActual rateDue date

Accrual of impairment provision

In RMB

Bad Debt ReservesStage 1Stage 2Stage 3Total
Expected credit losses over the next 12 monthsExpected 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

ItemsEnding balanceOpening balanceRange of discount rate
Book balanceBad debt reserveBook valueBook balanceBad debt reserveBook value
Long-Term Accounts Receivable16,708,613.1916,708,613.1916,708,613.1916,708,613.19
Total16,708,613.1916,708,613.1916,708,613.1916,708,613.19--

Provision for bad debts

In RMB

Bad Debt ReservesStage 1Stage 2Stage 3Total
Expected credit losses over the next 12 monthsExpected 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

InvesteesOpening balanceIncrease /decreaseClosing balanceClosing balance of impairment provisi
Additional investmentOther comprehensive incomeChanges in other equityCash bonus or profits announWithdrawal of impairment provisiOther
ced to issueonon
I. Joint ventures
II. Associates
Sino Great Wall Zhihui Housing Property (Zhanjiang) Co., Ltd.23,579,171.7123,579,171.71
Cenang Resort Sdn Bhd83,258,639.1283,258,639.12
III. Subsidiary
AlorVista Development Sdn Bhd
Subtotal106,837,810.83106,837,810.83
Total106,837,810.83106,837,810.83

Other notes

18. Other equity instruments investment

In RMB

ItemsClosing balanceOpening balance

Itemized disclosure of the current non - trading equity instrument investment

In RMB

NameRecognized dividend incomeAccumulating gainsAccumulating lossesAmount of other comprehensive income transferred to retained earningReasons for being measured at fair value and whose changes are included in other comprehensive incomeReasons for other comprehensive income transferred to retained earnings

Other notes:

19.Other non-current assets

In RMB

ItemsEnd of termBeginning 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

ItemsBook valueReason(s) for the failure to transact the certificate of title

Other notesNil

21、Fixed Assets

In RMB

ItemsEnding balanceOpening balance
Fixed assets139,240,017.20158,746,947.91
Total139,240,017.20158,746,947.91

(1)Fixed assets

In RMB

ItemsHouses and buildingsMechanical equipmentTransportation EquipmentOther equipmentTotal
I. Original book value
1. Opening balance103,337,960.18105,070,825.2539,040,693.5813,950,128.70261,399,607.71
2. Amount increased of current period0.000.000.000.000.00
(1)Purchase0.00
(2)Transfer-in of construction in progress0.00
(3)Increase of business combination0.00
3. Amount decreased of current period10,065,112.19357,460.55396,747.616,487.1910,825,807.54
(1)Disposal or retirement10,065,112.19357,460.55396,747.616,487.1910,825,807.54
4. Ending balance93,272,847.99104,713,364.7038,643,945.9713,943,641.51250,573,800.17
II. Accumulative depreciation
1. Opening balance29,794,321.4740,732,183.0820,451,855.1511,674,300.10102,652,659.80
2. Amount increased of current period3,518,948.304,651,651.971,983,275.87220,350.7910,374,226.94
(1)Withdrawn3,518,948.304,651,651.971,983,275.87220,350.7910,374,226.94
3. Amount decreased of current period1,283,786.57163,538.61240,964.754,813.841,693,103.77
(1)Disposal or retirement1,283,786.57163,538.61240,964.754,813.841,693,103.77
4. Ending balance32,029,483.2045,220,296.4422,194,166.2711,889,837.05111,333,782.97
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 value61,243,364.7959,493,068.2616,449,779.702,053,804.46139,240,017.20
2. Opening book value73,543,638.7164,338,642.1718,588,838.432,275,828.60158,746,947.91

(2)Temporarily idle fixed assets

In RMB

ItemsOriginal book valueAccumulative depreciationDepreciation reserveBook valueNote

(3)Fixed asset rented through financing lease

In RMB

ItemsOriginal book valueAccumulative depreciationDepreciation reserveBook value
House buildings11,152,810.3610,560,357.40592,452.96
Mechanical equipment34,196,914.0021,048,715.5313,148,198.47
Total45,349,724.3631,609,072.9313,740,651.43

(4)Fixed assets leased through operating leases

In RMB

ItemsEnding book value

(5)Fixed assets with the certificate of title not transacted

In RMBn

ItemsBook valueReason(s) for the failure to transact the certificate of title

Other notes

(6)Disposal of fixed assets

In RMB

ItemsEnding balanceOpening balance

Other notes22.Construction in Progress

In RMB

ItemsEnding balanceOpening balance
Construction in progress36,805,894.0336,697,284.04
Total36,805,894.0336,697,284.04

(1)Construction in Progress

In RMB

ItemsEnding balanceOpening balance
Book balanceDepreciation reserveBook valueBook balanceDepreciation reserveBook value
Equipment and Construction in progress36,805,894.0336,805,894.0336,697,284.0436,697,284.04
Total36,805,894.0336,805,894.0336,697,284.0436,697,284.04

(2)Change of Important Projects of Construction in Progress in Current Period

I n RMB

Name of itemsBudget amountOpening balanceAmount increased of current periodAmount transferred into fixed assets in current periodOther amount decreased in current periodEnding balanceProportion of accumulative project input to the budgetProject progressAccumulative amount of interest capitalizationIncluding: Amount of interest capitalization in the current periodCurrent interest capitalization rateCapital source
Liangdu Central Hospital of Liupanshui City (tentative name) medical and nursing integration project509,320,300.005,001,448.945,001,448.94Other
PPP project of the north coast landscape engineering of Huanbaiyang Lake (Centr10,909,100.008,476,351.418,476,351.4167%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 County80,042,900.0015,792,351.4815,792,351.4813%Other
Total600,272,300.0029,270,151.8329,270,151.83------

(3)Impairment provision of project under construction withdrawn in the period

In RMB

ItemsCurrent withdrawal amountReason for withdrawal

Other notes

(4)Engineering materials

In RMB

ItemsEnding balanceOpening balance
Book balanceDepreciation reserveBook valueBook balanceDepreciation reserveBook 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

ItemsTotal

Other notes:

26. Intangible Assets

(1)Intangible Assets

In RMB

ItemsLand use rightPatent rightNon-patent technologySoftwareTotal
I. Original price
1. Balance at108,621,002.594,551,469.92113,172,472.51
period-beginning
2.Increase in the current period
(1) Purchase
(2)Internal R & D
(3)Increased of Enterprise Combination
3.Decreased amount of the period7,714,044.007,714,044.00
(1)Disposal7,714,044.007,714,044.00
4. Balance at period-end100,906,958.594,551,469.92105,458,428.51
II. Accumulated amortization
1. Balance at period-beginning9,743,123.913,508,096.9313,251,220.84
2. Increase in the current period1,528,598.52289,109.571,817,708.09
(1) Withdrawal1,528,598.52289,109.571,817,708.09
3.Decreased amount of the period647,151.49647,151.49
(1)Disposal647,151.49647,151.49
4. Balance at period-end10,624,570.943,797,206.5014,421,777.44
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 -end90,282,387.65754,263.4291,036,651.07
2.Book value at period-beginning98,877,878.681,043,372.9999,921,251.67

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

ItemsBook valueReason(s) for the failure to transact the certificate of title

Other notes:

27. Development Expenditure

In RMB

ItemsOpening balanceAmount increased of current periodAmount decreased of current periodEnding balance

Other notes

28. Goodwill

(1) Original book value of goodwill

In RMB

Name of invested units or the matters formingOpening balanceAmount increased of current periodAmount decreased of current periodEnding balance
goodwill
Wuhan Commercial Workers Hospital LLC27,257,314.4927,257,314.49
Sino Great Wall Southwest Engineering Co., Ltd.17,948,978.5317,948,978.53
SAFAT GULF GENERAL TRADING & CONTRACTING COMPANY5,547,635.005,547,635.00
Far eastern international engineering Company,LLC10,920.0410,920.04
Total50,764,848.0650,764,848.06

(2) Depreciation Reserve of Goodwill

In RMB

Name of invested units or the matters forming goodwillOpening balanceAmount increased of current periodAmount decreased of current periodEnding balance
Sino Great Wall Southwest Engineering Co., Ltd.17,948,978.5317,948,978.53
SAFAT GULF GENERAL TRADING & CONTRACTING COMPANY5,547,635.005,547,635.00
Total23,496,613.5323,496,613.53

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

ItemsOpening balanceAmount increased of current periodAmount amortized of current periodOther amount decreasedEnding balance
Decorate cost4,076,589.982,632,913.411,443,676.57
Overseas fees for letter of guarantee1,191,474.19862,611.96328,862.23
Others1,459,624.73193,396.231,266,228.50
Less: Long-term deferred expenses coming due within 1 year
Total6,727,688.903,688,921.603,038,767.30

Other notes

30.Deferred income tax assets/deferred income tax liabilities

(1) Non-offset deferred income tax assets

In RMB

ItemsEnding balanceOpening balance
Deductible temporary differenceDeferred Income Tax AssetsDeductible temporary differenceDeferred Income Tax Assets
Asset depreciation reserve740,943,807.98117,317,681.38700,024,233.95107,117,209.33
Deductible losses43,486,026.0310,871,506.51
Total740,943,807.98117,317,681.38743,510,259.98117,988,715.84

(2) Non-offset deferred income tax liabilities

In RMB

ItemsEnding balanceOpening balance
Taxable temporary differenceDeferred Income Tax LiabilitiesTaxable temporary differenceDeferred Income Tax Liabilities
Appraised increment of assets for business combination not under the same control94,038,813.6423,509,703.4197,477,824.7224,369,456.18
Total94,038,813.6423,509,703.4197,477,824.7224,369,456.18

(3) Offset deferred income tax assets or liabilities

In RMB

ItemsOffset amount of deferred tax assets and liabilities at the end of a periodBalance of deferred tax assets and liabilities at the end of a periodOffset amount of deferred tax assets and liabilities at the beginning of a periodBalance of deferred tax assets and liabilities at the beginning of a period
Deferred Income Tax Assets117,317,681.38117,983,727.91
Deferred Income Tax Liabilities23,509,703.4124,369,456.18

(4) Details of unconfirmed deferred income tax assets

In RMB

ItemsEnding balanceOpening balance
Deductible temporary difference1,072,730,889.21506,759,969.56
Deductible losses2,429,144,351.681,297,146,979.98
Total3,501,875,240.891,803,906,949.54

(5) Deductible losses of unconfirmed deferred income tax assets due in the following years

In RMB

YearEnding balanceOpening balanceNote

Other notes:

31. Other non-current assets

Whether implemented new revenue guidelines

□ Yes √No

In RMB

ItemsClosing balanceOpening balance
PPP Project investment664,524,570.00664,524,570.00
Advance payment for purchasing long-term assets128,895,990.79129,221,120.79
Other project investment114,935,222.16121,953,450.20
Others8,232,416.908,810,652.00
Total916,588,199.85924,509,792.99

Other notes:

32. Short-term Loans

(1) Classification of Short-Term Loans

In RMB

ItemsEnding balanceOpening balance
Pledged loan50,000,000.00
Mortgaged loan112,696,582.10
Guaranteed loan2,650,398,046.91
Credit loan49,490,000.00
Trade acceptance for which endorsement and discounting have been conducted while still being unmatured at the balance sheet date
Total3,306,944,094.492,862,584,629.01

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

BorrowerEnding balanceInterest rateOverdue periodLate payment interest rate

Other notes:

33. Transactional financial liabilities

In RMB

ItemsEnding balanceOpening balance
Including:
Including:

Other notes:

34. Derivative financial liability

In RMB

ItemsEnding balanceOpening balance

Other notes:

35.Notes payable

In RMB

ItemsClosing balanceOpening balance
Commercial acceptance335,643,774.40471,267,864.12
Bank acceptance bills61,000,000.00562,819,635.60
Total396,643,774.401,034,087,499.72

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

ItemsClosing balanceOpening balance
Project construction cost814,784,702.22870,866,176.06
Payment for purchasing long-term assets
Payment for medicine19,212,223.3317,497,130.23
Others3,792,324.14
Total833,996,925.55892,155,630.43

(3) Significant accounts receivable with account age of more than 1 year

In RMB

ItemsEnding balanceCauses 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

ItemsClosing balanceOpening balance
Unfinished project with settled construction cost10,850,086.84
Advance payment for project construction cost424,631,860.73391,350,850.34
Advance payment for medical treatment908,829.95845,407.87
Advance payment for lease64,668,308.9643,733,325.87
Advance payment for rent31,322,073.0031,322,073.00
Total521,531,072.64478,101,743.92

(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

ItemsAmount
Accrued occurred cost18,832,783,056.38
Accrued recognized gross profit4,350,050,237.36
Less:advance loss4,354,226.05
Settled amount22,217,195,333.28
Unfinished project with settled construction cost arising from contract conclusion961,283,734.41

Other notes:

38.Contract liabilities

In RMB

ItemsClosing balanceOpening balance

Book value has major changes in the period and causes

In RMB

ItemsAmount changesCauses

39. Payroll payable

(1) Presentation of payroll payable

In RMB

ItemsOpening balanceAmount increased of current periodAmount decreased of current periodEnding balance
I. Short-term remuneration20,727,897.18368,573,235.31303,232,214.7686,068,917.73
2. Post-demission welfare - defined contribution plans345,941.134,003,990.593,952,684.39397,247.33
Total86,414,858.8686,340,075.2097,743,709.8375,011,224.23

(2) Presentation of short-term remuneration

In RMB

ItemsOpening balanceAmount increased of current periodAmount decreased of current periodEnding balance
1. Salary, bonus, allowance and subsidy84,912,841.5373,510,997.0686,993,040.0971,430,798.50
2. Employees’ welfare expense923,582.182,354,663.972,354,663.97923,582.18
3. Social insurance premium53,015.282,996,371.232,729,794.29319,592.22
Including: Medical insurance premium3,281.402,746,242.132,460,037.23289,486.30
Industrial injury insurance premium16,097.3562,919.3470,613.388,403.31
Maternity insurance premium33,636.53187,209.76199,143.6821,702.61
4. Housing fund179,478.743,462,374.351,701,849.091,940,004.00
5. Labor union outlay and employees’ education outlay11,678.0011,678.000.00
Total86,068,917.7382,336,084.6193,791,025.4474,613,976.90

(3) Presentation of Drawing Plans Set Up

In RMB

ItemsOpening balanceAmount increased of current periodAmount decreased of current periodEnding balance
1. Basic pension insurance345,519.303,830,488.523,797,678.22378,329.60
2. Unemployment insurance premium421.83173,502.07155,006.1718,917.73
Total345,941.134,003,990.593,952,684.39397,247.33

Other notes:

40. Taxes payable

In RMB

ItemsEnding balanceOpening balance
Value-added tax86,159,784.2985,518,697.30
Enterprise income tax218,960,138.30221,830,373.42
Personal income tax7,018,895.336,468,895.33
Urban maintenance and construction tax3,776,658.054,026,082.61
Educational surtax2,815,593.483,001,921.43
Other taxes66,055,049.3673,111,917.43
Total384,786,118.81393,957,887.52

Other notes:

41. Other accounts payable

In RMB

ItemsEnding balanceOpening balance
Interest payable505,034,931.59280,806,670.49
Dividends payable8,392,335.458,541,818.64
Other accounts payable1,704,565,803.671,923,064,481.30
Total2,217,993,070.712,212,412,970.43

(1) Interest payable

In RMB

ItemsEnding balanceOpening balance
Payment of principal at maturity and interest in installments242,502,415.77142,367,316.80
Interest payable on short-term loans259,787,955.64137,060,010.22
Interests withdrawn for overdue notes2,744,560.181,379,343.47
Total505,034,931.59280,806,670.49

Significant overdue but unpaid interest

In RMB

BorrowerOverdue amountCauses for overdue
CITIC Trust Co., Ltd.36,899,539.35Capital shortage
Industrial International Trust Co., Ltd.17,894,803.57Capital shortage
Industrial Bank Houhai Branch22,666,694.77Capital shortage
Bohai International Trust Co., Ltd.40,916,334.59Capital shortage
Xiamen International Bank Zhuhai Branch6,673,461.94Capital shortage
Bank of Ningbo Shenzhen Branch6,238,632.40Capital shortage
Shenzhen Rural Commercial Bank Futian Branch2,466,660.02Capital shortage
Wanxiang Trust Co., Ltd.30,097,183.56Capital shortage
Zhongjiang International Trust Co., Ltd.68,082,184.06Capital shortage
Baoshang Bank Shenzhen Branch26,385,212.95Capital shortage
Shenzhen Rural Commercial Bank Meilin Branch1,036,262.79Capital shortage
China Bohai Bank Shenzhen Branch6,828,436.71Capital shortage
Shaanxi International Trust Co., Ltd.27,375,163.93Capital shortage
Chang'an International Trust Co., Ltd.15,360,496.85Capital shortage
Industrial International Trust Co., Ltd.21,336,446.17Capital shortage
Bridge Trust Co., Ltd.53,876,933.97Capital shortage
Shanghai Pudong Development Bank Shenzhen Center District Branch7,007,077.97Capital shortage
Bank of Jiujiang Zhuhai Branch11,375,270.32Capital shortage
China Minsheng Bank Shenzhen Branch9,053,680.23Capital shortage
Shanghai Pudong Development Bank Fulicheng Subbranch9,995,142.09Capital shortage
China Railway Trust Co., Ltd.4,352,544.37Capital shortage
Ping'an International Financial Leasing Co., Ltd.1,776,839.22Capital shortage
Bank of Beijing Shuangxiu Subbranch36,284,712.70Capital shortage
Total463,979,714.53--

Other notes:

(2) Dividends payable

In RMB

ItemsEnding balanceOpening balance
Common stock dividends8,392,335.458,541,818.64
Total8,392,335.458,541,818.64

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

ItemsEnding balanceOpening balance
Tender bond, performance bond and deposit59,294,032.2129,414,375.04
Personal intercourse funds and withheld items252,866,721.00266,550,420.26
Intercourse funds of the organization649,477,026.42841,985,904.64
Payment for subscription of non-public offerings33,536.80
Others742,928,024.04785,080,244.56
Total1,704,565,803.671,923,064,481.30

2) Other significant accounts receivable with account age of more than 1 year

In RMB

ItemsEnding balanceCauses for non-payment or carryover

Other notes

42. Liabilities held for sale

Unit: Yuan

ItemsEnding balanceOpening balance

Other notes:

43. Non-current liabilities coming due within one year

In RMB

ItemsEnding balanceOpening balance
Long-term loans coming due within 1 year906,690,152.95906,690,152.95
Long-term account payable coming due within 1 year69,029,828.6069,029,828.60
Total975,719,981.55975,719,981.55

Other notes:

44. Other current-liabilities

Whether implemented new revenue guidelines

□ Yes √No

In RMB

ItemsClosing balanceOpening balance

Changes in short-term debentures payable:

In RMB

NameFace valueIssuance dateMaturity periodIssuance amountsBalance at the beginning of the yearIssuance during the yearInterest at face valueAmortisation of discounts or premiumRepayment for the periodBalance at the end of the year

Other notes:

45.Long-term borrowings

(1)Long-term term borrowings

In RMB

ItemsEnding balanceOpening balance
Guaranteed loan1,026,690,152.951,026,690,152.95
Less: Long-term loans coming due within 1 year (see Note VI, 25)-906,690,152.95-906,690,152.95
Total120,000,000.00120,000,000.00

Description for classification of long-term loans:

NoneOther description: including the range of interest rate:

Nil

46. Bonds payable

(1) Bonds payable

InRMB

ItemsEnding balanceOpening balance
First period bond financing plan of Sino Great Wall International Engineering Co., Ltd. in 2017266,242,374.52254,801,342.47
Total266,242,374.52254,801,342.47

(2) Increase or decrease of bonds payable (excluding other financial instruments classified as financialliabilities, like preferred stocks and perpetual bonds, etc.)

In RMB

Bond namePar valueDate of issueBond periodIssued amountOpening balanceIssue of current periodInterests withdrawn as per par valueAmortization of premium or discountAmount repaid of current periodOther amount decreasedEnding balance
First period bond financing plan of Sino245,000,000.002017/1/312020/1/31245,000,000.00254,801,342.4711,441,032.05266,242,374.52
Great Wall International Engineering Co., Ltd. in 2017
Total------245,000,000.00254,801,342.4711,441,032.05266,242,374.52

(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 instrumentsOpeningAmount increased of current periodAmount decreased of current periodEnding
AmountBook valueAmountBook valueAmountBook valueAmountBook value

Description of other financial instruments classified as financial liabilitiesNilOther descriptionNil

47. Lease liability

In RMB

ItemsEnding balanceOpening balance

Other notesNil

48. Long-term payable

In RMB

ItemsClosing balanceOpening balance
Long-term payable276,923.55322,990.35
Total276,923.55322,990.35

(1) Long-term payable listed by nature of the account

In RMB

ItemsClosing balanceOpening balance
Financing lease276,923.55322,990.35

Other notesNil

(2)Specific payable

In RMB

ItemsOpening balanceIncreaseDecreaseClosing balanceCause

Other notesNil

49. Long-term employee salary payable

(1)Long-term employee salary payable

In RMB

ItemsClosing balanceOpening balance

(2) Changed situations of benefit plan measured and set up

Present value of benefit plan measured and set up

Unit: Yuan

ItemsAmount incurred of current periodAmount incurred of last period

Asset set up:

In RMB

ItemsAmount incurred of current periodAmount incurred of last period

Net liabilities or net assets of benefit plan measured and set up

In RMB

ItemsAmount incurred of current periodAmount 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

ItemsEnding balanceOpening balanceReason for formation
Pending actions2,958,723.152,958,723.15
Total2,958,723.152,958,723.15--

Other descriptions, including significant assumptions and appraisal of significant accrued liabilities:

51. Deferred income

In RMB

ItemsOpening balanceAmount increased of current periodAmount decreased of current periodEnding balanceReason for formation

Projects involving governmental subsidy:

Unit: Yuan

Liability itemsOpening balanceSubsidy increased over current periodAmount recorded in non-operating income over current periodAmount recorded in other benefits over current periodCost offset expenses over current periodOther changesEnding balanceRelated to assets/Related to income

Other notes: Nil

52. Other Non-current liabilities

Whether implemented new revenue guidelines

□ Yes √No

In RMB

ItemsEnding balanceOpening balance

Other notes:Nil

53. Capital Stock

In RMB

Opening balanceIncrease/Decrease (+/-)Ending balance
New shares issuedShares presented for freeShares converted from public reserveOthersSubtotal
Total amount of shares1,698,245,011.001,698,245,011.00

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 instrumentsOpeningAmount increased of current periodAmount decreased of current periodEnding
AmountBook valueAmountBook valueAmountBook valueAmountBook 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

ItemsOpening balanceAmount increased of current periodAmount decreased of current periodEnding 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

ItemsOpening balanceAmount increased of current periodAmount decreased of current periodEnding balance

Other description, including explanation on the reason for increase, decrease or change of current inventory stockNil

57. Other composite benefits

In RMB

ItemsOpening balanceAmount incurred of current periodClosing balance
Amount incurred before income taxLess:Amount transferred into profit and loss in the current period that recognied into other comprehensive income in prior periodLess:Prior period included in other composite income transfer to retained income in the current periodLess:Income tax expensesAfter-tax attribute to the parent companyAfter-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

ItemsOpening balanceAmount increased of current periodAmount decreased of current periodEnding balance
Work safety expense21,026,082.432,775,661.7218,250,420.71
Total21,026,082.432,775,661.7218,250,420.71

Other description, including explanation on the reason for increase, decrease or change of current special reserve:

59. Surplus reserve

In RMB

ItemsOpening balanceAmount increased of current periodAmount decreased of current periodEnding balance
Statutory surplus reserve84,394,441.2384,394,441.23
Total84,394,441.2384,394,441.23

Description, including explanation on the reason for increase, decrease or change of current surplus reserve

60. Undistributed profit

I n RMB

ItemsAmount of current periodAmount of last period
Undistributed profit at the end of last period before adjustment-269,566,140.131,503,103,396.72
Undistributed profit at beginning of the year after adjustment-269,566,140.131,503,103,396.72
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 payable67,929,800.44
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

ItemsAmount incurred of current periodAmount incurred of last period
IncomeCostIncomeCost
Main businesses256,367,221.67227,646,036.241,586,667,973.991,312,150,678.84
Other businesses303,601.2561,423.62
Total256,367,221.67227,646,036.241,586,971,575.241,312,212,102.46

Whether implemented new revenue guidelines

□ Yes √No

Other notes62.Taxes and Surcharge

In RMB

ItemsAmount incurred of current periodAmount incurred of last period
Urban maintenance and construction tax197,543.59505,520.08
Educational surtax97,373.42394,400.96
Stamp duty451,136.70351.80
Other taxes948,837.161,206,245.21
Total1,694,890.872,106,518.05

Other notes:

63.Selling Expenses

In RMB

ItemsAmount incurred of current periodAmount incurred of last period
Employee Compensation133,620.942,243,754.49
Office expenses12,741.61132,464.60
Travel expenses6,984.6099,055.21
Business entertainment expense2,700.00308,931.00
Advertising and promotion expenses125,500.00
Construction maintenance fees3,323,787.5511,051,634.52
Others10,997,308.062,560,282.26
Total14,477,142.7616,521,622.08

Other notes:

64.Management Expenses

In RMB

ItemsAmount incurred of current periodAmount incurred of last period
Employee Compensation34,994,225.4667,710,884.17
Office expenses3,036,779.223,693,918.16
Rental4,540,767.748,715,549.21
Travel expenses1,177,618.354,994,824.31
Business entertainment expense3,156,106.064,984,925.91
Depreciation fees of fixed assets5,258,921.418,618,171.30
Vehicle expenses596,848.791,575,536.62
Long-term deferred expense amortization2,912,560.622,076,778.32
Consulting fee9,391,994.1120,133,330.03
Recruitment fee32,096.53821,120.23
Conference Fee3,780.00121,178.39
Communication expenses492,453.93930,008.46
Advertisement fee380,094.19
Litigation Fee781,121.80
Others20,408,297.353,531,636.45
Total87,163,665.56127,907,861.56

Other notes:

65.R&D Expenses

In RMB

ItemsAmount incurred of current periodAmount incurred of last period

Other notes:

66.Financial Expenses

In RMB

ItemsAmount incurred of current periodAmount incurred of last period
Interest expenditure326,584,927.26174,606,407.88
Less: Interest income2,650,575.426,490,217.11
Exchange gain or loss-5,694,081.87-32,447,772.71
Discount interest
Handling charges and others6,813,912.1710,271,507.13
Total325,054,182.14145,939,925.19

Other notes:

67.Other Income

In RMB

Sources of other incomeAmount incurred of current periodAmount incurred of last period
Subsidy for post stabilization38,940.28
Return of handling charges on personal income tax13,100.20

68. Investment income

In RMB

ItemsAmount incurred of current periodAmount incurred of last period
Investment yield obtained from disposal of long-term equity investments6,596,880.935,171,892.51
Proceeds from wealth management products
Total6,596,880.935,171,892.51

Other notes:

69.Net exposure hedging income

In RMB

ItemsAmount incurred of current periodAmount incurred of last period

70. Gains on the changes in the fair value

In RMB

Other sources of revenueAmount of the Current TermAmount of the Previous Term

Other notes:

71. Credit impairment loss

In RMB

ItemsAmount of the Current TermAmount of the Previous Term

Other notes:

72. Losses from asset impairment

Whether implemented new revenue guidelines

□ Yes √No

In RMB

ItemsAmount of the Current TermAmount 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

SourceAmount of this periodAmount of last period

74.Non-Operating Income

In RMB

ItemsAmount incurred of current periodAmount incurred of last periodAmount recorded in the non-recurring gain or loss of current period
Government subsidy935,867.42
Other71,623.22178,957,486.84
Total71,623.22179,220,495.20

Governmental subsidies included in gain or loss of current period:

In RMB

Subsidy itemsGranting subjectsReasonsNature/typeWhether subsidies affect gain or loss in the current periodWhether it is special subsidyAmount incurred of current periodAmount incurred of last periodRelated 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

ItemsAmount incurred of current periodAmount incurred of last periodAmount recorded in the non-recurring gain or loss of current period
Loss from non-current asset retirement6,081.90
Loss of inventory disposal732,512.00636,300.61
Overdue fine105.00
Loss by default464,303,416.20
Others87,298.49
Total465,129,413.62636,300.61

Other notes:

76.Expense of Income Tax(I) Table of Income Tax

In RMB

ItemsAmount incurred of current periodAmount incurred of last period
Expense of income tax in the current period1,810,113.6718,832,808.48
Deferred income tax expenses-859,752.77-42,571.69
Total950,360.9018,790,236.79

(II) Adjustment Process of Accounting Profit and Expense of Income Tax

In RMB

ItemsAmount 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 tax950,360.90

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

ItemsAmount incurred of current periodAmount incurred of last period
Interest income2,818,999.168,884,622.44
Bond, deposit and other intercourse funds209,847,070.393,587,412,932.81
Total212,666,069.553,596,297,555.25

Description on cash received relating to other operating activities:

Nil(II) Cash Paid Relating to Other Operating Activities

In RMB

ItemsAmount incurred of current periodAmount incurred of last period
Handling charges371,660.718,436,090.29
Warranties and deposit expenses32,578,756.07507,914,597.76
Selling Expenses1,008,859.422,108,633.03
Management Expenses36,123,823.62164,665,583.14
Current account556,523,245.261,894,830,019.27
Others
Total626,606,345.082,577,954,923.49

Description on cash paid relating to other operating activities:

Nil

(III) Cash Received Relating to Other Investment Activities

In rmb

ItemsAmount incurred of current periodAmount incurred of last period

Description on cash received relating to other investment activities:

(IV) Cash Paid Relating to Other Investment Activities

In RMB

ItemsAmount incurred of current periodAmount incurred of last period

Description on cash paid relating to other investment activities:

Nil(V) Cash Received Relating to Other Financing Activities

In RMB

ItemsAmount incurred of current periodAmount incurred of last period
Received company/personal financing fund6,362,955.91
Total6,362,955.91

Description on cash received relating to other financing activities:

Nil(VI) Cash Paid Relating to Other Financing Activities

In RMB

ItemsAmount incurred of current periodAmount 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 DataAmount of current periodAmount of last period
1. Net profit adjusted to cash flow of operating activities:----
Net profit-1,416,790,352.05143,065,521.54
Plus: Asset depreciation reserve563,404,467.654,183,874.66
Depreciation of fixed assets, depreciation of oil and gas assets, and depreciation of productive biological assets5,258,921.4112,300,753.00
Intangible asset amortization1,817,708.09804,312.23
Long-term deferred expense amortization2,912,560.626,993,115.98
Loss from fixed asset retirement (Income is represented with “-”)-570,793.76
Financial expenses (income represented with “-”)325,054,182.14145,939,925.19
Investment loss (income represented with “-”)-6,596,880.93-5,171,892.51
Decrease of deferred income tax assets (increase represented with “-”)666,046.531,167,618.96
Increase of deferred income tax liabilities (decrease represented with “-”)-859,752.7725,805,916.90
Decrease of inventories (increase represented with “-”)-279,542,881.22-175,020,420.56
Decrease of operating items receivable (increase represented with “-”)1,049,692,358.27628,339,650.86
Increase of operating items payable (decrease represented with “-”)-667,168,404.54310,326,783.14
Net amount of cash flow from operating activities-422,152,026.801,098,164,365.63
2. Major investment and financing activities not involving cash revenue and expenditure:----
3. Net change of cash and cash equivalents:----
Ending balance of cash59,521,718.55258,018,921.01
Less: Opening balance of cash125,767,796.88647,222,590.49
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

ItemsEnding balanceOpening balance
I. Cash59,521,718.55125,767,796.88
Including: Cash on hand3,431,627.745,400,461.90
Bank deposit available for payment anytime56,090,090.81252,595,053.91
III. Ending balance of cash and cash equivalents59,521,718.55125,767,796.88

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

ItemsEnding book valueReason for restriction
Monetary Resources101,885,589.67Guarantee deposit and frozen fund
Fixed assets13,740,651.43Finance lease assets
Total115,626,241.10--

Other notes:

82.Foreign-Currency Monetary Items

(I) Foreign-Currency Monetary Items

In RMB

ItemsEnding balance in foreign currencyExchange rate for conversionEnding balance in RMB after conversion
Monetary funds----
Wherein: USD2,014,928.276.874713,852,027.38
EUR
HKD204,569.470.8797179,951.58
QAR48,391.431.888191,369.56
BUK28,210.000.0045127.80
IDR2,781,362.670.00051,352.74
Russian Ruble (RUB)2,847,740.850.1090310,441.38
Maldivian Raphael6,511.790.44472,895.64
Sri Lankan rupees5,038,709.650.0389196,147.32
Thai B195,179.180.223443,594.03
.Philippines Peso7,244,045.950.1342972,289.00
Ringgit, Malaysia542,318.561.6593899,874.82
Pataca124.190.8537106.02
Accounts receivable----
Wherein: USD77,698,067.996.8747534,150,908.01
EUR
HKD
Qatarrial357,701,359.031.8881675,388,501.21
Ringgit, Malaysia35,520,850.671.659358,940,116.60
Australian dollar1,362,817.670.85371,163,412.72
Long-term loans----
Wherein: USD
EUR
HKD
Advance Payment0.00
Wherein: USD5,213,170.816.874735,838,985.37
Qatarrial158,589.221.8881299,437.88
Sri Lankan rupees26,809,430.460.03891,043,639.82
Russian Ruble (RUB)8,356,436.910.1090910,962.03
Ringgit, Malaysia19,912.961.659333,041.78
Other accounts receivable:0.00
Wherein: USD1,970,462.466.874713,546,338.27
EUR2,600,000.007.817020,324,200.00
HKD75,646.090.879766,542.84
Qatarrial3,762,349.231.88817,103,823.74
Kyat118,150,000.000.0045535,252.59
Russian Ruble (RUB)9,549,638.660.10901,041,036.79
Sri Lankan rupees38,866,058.460.03891,512,981.27
Thai B301,957.830.223467,443.45
Philippines Peso146,997.000.134219,729.80
Ringgit, Malaysia2,257,432.221.65933,745,780.74
Accounts payable0.00
Wherein: USD23,872,745.736.8747164,117,965.07
Qatarrial4,026,732.051.88817,603,014.23
Kyat1,121,875.000.00455,082.41
Sri Lankan rupees478,505,974.270.038918,627,321.75
Thai B4,536.360.22341,013.21
Philippines Peso44,130.430.13425,923.14
Ringgit, Malaysia8,225,631.541.659313,648,875.88
Items Received in Advance:0.00
Wherein: USD354,069.486.87472,434,121.45
Other accounts payable:0.00
Wherein: USD272,622.876.87471,874,200.44
HKD1,374.730.87971,209.29
Philippines Peso8,447.150.13421,133.77
Sri Lankan rupees500,000.000.038919,464.04
Ringgit, Malaysia0.001.65930.00
Australian dollar6,270.004.815630,193.81

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

TypeAmountPresented itemsAmount 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 partyTime point of equity acquisitionCost of equity acquisitionProportion of equity acquiredWay to acquire the stock equityDate of purchasingBasis for determining the date of purchasingThe purchased party’s income from the date of purchasing toThe purchased party’s net profit from the date of purchasing to
the end of termthe 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 purchasingBook 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 partyProportion of gained equities during the combination.Basis for business combination under the same controlCombination dateBasis for determining the combination dateThe combined party’s income from the beginningThe combined party’s net profit from the beginningThe combined party’s income in the comparativeThe combined party’s net profit in the comparative
to the end of the current combination termto the end of the current combination termperiodperiod

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 dateAt 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 subsidiaryPrice of the stock equity disposalProportion of the stock equity disposedWay of the equity stock disposalTime point of losing control rightBasis for determining the time point of losing controlBalance between the disposal price and the ownedRemaining proportion of stock equity at the date of losing controlBook value of the remaining stock equity at the date of losingFair value of the remaining stock equity at the date of losingGain or loss on re-measurement of remaining stock equityMethod to determine the fair value of the remaining stockAmount of profit and loss on investments converted from
rightnet asset share of the subsidiary corresponding to the disposal investment in the financial statementrightcontrol rightcontrol rightas per fair valueequity at the date of losing control right and major assumptionsother comprehensive gains related to the stock equity investments of the original subsidiary
Suzhou Lvbang Woods Technology Co., Ltd.24,000,000.00100.00%TransferApril 28,2019Completion of industrial and commercial registration of changes6,596,880.930.00%

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

NameBusiness plantRegisteredShare-holding ratio(%)Acquired way
addressDirectlyIndirectly
Sino Great Wall Decoration Engineering (Beijing ) Co., Ltd.BeijingBeijing100Establish

(2)Other reasons for decreasing of subsidiaries in the current period

NameShare-holding ratioDisposition wayThe time point at which control is lostBasis for determining the point of loss of control.Disposition gains and losses
Suzhou Lvbang Woods Technology Co., Ltd.100%SellApril 26,2019Industrial & commercial registration of changes

6.Other

IX. Equity in Other Subjects(I) Equity in Subsidiaries

1. Composition of the enterprise group

SubsidiaryMain operationRegistered placeBusiness natureShare-holding ratioAcquired way
DirectlyIndirectly
Sino Great Wall International Engineering Co., Ltd.BeijingBeijingDecoration industry100.00%Investment
Sino Great Wall Infrastructure Investment Co., Ltd.BeijingBeijingInvestment management, import and export100.00%Establish
Sino Great Wall Hengda Engineering Co., Ltd.LongyanLongyanHighway engineering, municipal public works, building works, railway engineering,80.00%Under non-common control
etc.
Sino Great Wall Medical Investment Management Co., Ltd.BeijingBeijingMedical investment100.00%Establish
Wuhan Commercial Workers Hospital LLCWuhanWuhanSanitary & medical service100.00%Under non-common control
Sino Great Wall Guangxia (Wuhan) Medical Development Co., Ltd.WuhanWuhanMedical technology development, pharmaceutical sales, medical device wholesale, medical and pension investment60.00%Establish
Changzhi Sino Laodingshan Industrial Co., Ltd.ChangzhiChangzhiUrban infrastructure construction and development, construction engineering design, R&D, construction equipment leasing, construction100.00%Establish
Xiangfen County Taoshan Construction Co., Ltd.XiangfenXiangfenUrban infrastructure construction, trade100.00%Establish
Sino Great Wall (Xihua) Economic Development ZoneXihuaXihuaInfrastructure investment, road and bridge construction, water100.00%Establish
Investment Co., Ltd.conservancy construction, general airport construction
Liupanshui Central People‘s Hospital Investment Co., Ltd.LiupanshuiLiupanshuiHospital management service, pension rehabilitation service, investment, trade, aged articles wholesale and retail75.00%Establish
Sino Zhigu Industrial (Yueyang) Co., Ltd.YueyangYueyangBuilding construction78.40%Establish
Sino Great Wall Group Co.,LimitedHongkongHongkongConstruction, design, trade, investment consulting100.00%Establish
Aofa Investment Co., Ltd.HongkongHongkong100.00%Establish
Sino Great Wall Decoration and Design Co., Ltd.BeijingBeijingDesign and consulting100.00%Establish
Sino Great Wall International Engineering (Macao) Co., Ltd.MacaoMacaoDesign and construction96.00%4.00%Establish
Shenzhen Hongtulve Industrial Co., Ltd.ShenzhenShenzhenInvestment, R&D and sales, trade, import and export100.00%Establish
Inrich Me Engineering Co., Ltd.HongkongHongkongMechanical and electrical engineering,100.00%Establish
scientific research, trade, investment consulting
Sino Great Wall Real Estate (Hubei) Co., Ltd.WuhanWuhanReal estate development80.00%Establish
Sino Great Wall New Energy (Beijing) Co., Ltd.BeijingBeijingRenewable energy technology100.00%Establish
Shanghai Lingrui International Trading Co., Ltd.ShanghaiShanghaiTrade100.00%Establish
Sino Great Wall Southwest Engineering Co., Ltd.ChengduChengduBuilding construction100.00%Under non-common control
Huichang County Zhongcheng Construction Engineering Co., Ltd.HuichangHuichangMedical industry construction, import and export100.00%Under non-common control
Great Wall Biaodian Energy Co., Ltd.BeijingBeijingEnergy trade, R&D, import and export51.00%Establish
SINO GREAT WALL INTERNETIONAL ENGINEERING(CNMI)CO.,LLCSaipanSaipanDesign and construction100.00%Establish
SINO GREAT WALL GENERA L TRADING &KuwaitKuwaitBuilding construction49.00%Under non-common control
CONTRACTING CO.LTD
Sino Great Wall International Engineering( MM ) Co.,LtdBurmaBurmaDesign and construction80.00%Establish
PT.SINO GREAT WALL CONSTRUCTIONINDONESIAIndonesiaIndonesiaBuilding construction67.00%Establish
Sino Great Wall (Lao)Co.,LtdLaosLaosBuilding construction100.00%Establish
Sino International Engineering (Lao) Sole investor Co., Ltd.LaosLaos100.00%Establish
Sino Great Wall Investment (Lao) Sole investor Co., Ltd.LaosLaos100.00%Establish
Sino Great WallInternationalEngineering(Th ailand) Co.,Ltd.ThailandThailandEngaged 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.,LtdMaldivesMaldivesDesign and construction100.00%Establish
PT.SINO GREAT WALL INVESTMENT INDONESIAIndonesiaIndonesiaReal estate or leasing99.90%Establish
SGW America LLCUSAUSAConstruction, design99.00%1.00%Establish
Sino Great Wall Group (UK)Co.,LimitedBritainBritainDesign and construction98.00%Establish
Kunming Sino Forest Industry Development Co., Ltd.KunmingKunmingDevelopment, construction, operation and management of industrial parks51.00%Establish
SINO GREAT WALL(USA).INCUSAUSALegal business practices100.00%Establish
Sino Great Wall Development (Hengqin) Co., Ltd.ZhuhaiHengqinDesign and construction85.00%Establish
Fujian Sino Great Wall MingyihuiFuzhouFuzhouInvestment in medical and pension88.00%Establish
Medical Investment Co., Ltd.industry; hospital management; medical device sales
Sino Great Wall Medical Investment (Hubei) Co., Ltd.WuhanWuhanInvestment in medical industry projects; self-operation and agency of the import and export business of various goods and technology100.00%Establish
Hubei Yuanyaotong Supply Chain Co., Ltd.Wuhan\WuhanPharmaceutical wholesale, self-operation and agency of the import and export of goods and technology51.00%Establish
Wu‘an Juhe Photovoltaic Power Co., Ltd.WuanWuanSolar photovoltaic100.00%Establish
Sino Great Wall Southwest Science and Technology Co., Ltd.ChengduChengduSales, equipment installation100.00%Establish
Sino Great Wall Southwest Commercial and Trading Co., Ltd.ChengduChengduWholesale and sales100.00%Establish
Sino Great Wall Southwest Engineering Consultation Co., Ltd.ChengduChengduConstruction engineering design, consulting, survey100.00%Establish
Far easternRussiaRussiaBuilding95.00%Under
international engineering company,LLCconstruction, commerce and trade, transport, leasingnon-common control
Sino Great Wall(Philippines) International CorporationPhilippinesPhilippinesBuilding construction, import and export trade100.00%Establish
Sino Great Wall (HK) Property Co., LimitedHongkongHongkongReal estate development and management, land investment, property management, investment and business consulting, trade100.00%Establish
SGWHPEngineeringConstructionSDN.BHDMalaysiaMalaysiaBuilding construction, engineering design, installation project, mechanical and electrical installation, etc.100.00%Establish
SGW VENTURES SDN.BHD.MalaysiaMalaysiaPurchased, or otherwise obtained, attributes, stocks, bonds, reinvested earnings, etc.100.00%Establish
SGW CONSTRUCTION (LANGKAWI) SDN.BHD.MalaysiaMalaysiaBuilding construction, engineering design, installation project, mechanical and100.00%Establish
electrical installation, etc.
SinoOmanRefineryandPetrochemicals LLCOmanOmanOil production, import and export51.00%Establish
Sino Great Wall Hebei Xiongan Construction Co., Ltd.XionganXionganGeneral contracting of construction, subcontracting of construction services, engineering investigation and design, etc.100.00%Establish
Sino Great Wall Technology Development Co., Ltd.BeijingBeijingTechnology development, technology transfer, technology consultation, technology promotion, technical services; sales of construction materials.100.00%Establish
Zhongda Changcheng Industry(Chongqing) Co.,Ltd.ChongqingChongqingDesign phase project management service; construction stage project management service and so on60.00%Establish
Sino Great Wall Engineering Management (Shenzhen) Co., Ltd.ShenzhenShenzhenConstruction project contracting and construction project management, labor subcontract, etc51.00%Establish
Sino Rongju Real Estate Development Co., Ltd.BeijingBeijingReal estate development; construction general contracting, professional contracting, labor subcontracting, etc.51.00%Establish
Weifang Sino Greart Wall Health Development Co., Ltd.WeifangWeifangHealth consulting services; real estate development; sales of self-developed commercial housing, etc.100.00%Establish
Sino Great Wall Industry(Chongqing)Co., Ltd.ChongqingChongqingEcological 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 )ChangshaChangshaHospitals and medical investment, old - age industry75.00%Establish
Investment Co., Ltd.investment, small town investment.
Hunan University of Traditional Chinese Medicine Sino Great Wall Medical Management Co., Ltd.ChangshaChangshaHospital management; brand promotion marketing; chain enterprise management, etc.51.00%Establish
Sino Great Wall Real Estate Development (Hunan ) Co., Ltd.ChangshaChangshaReal 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.ChangshaChangshaHospital management; brand promotion marketing; chain enterprise management, etc.55.00%Establish
Hunan University of traditional Chinese Medicine Sino Great Wall Medical Industry Co., Ltd.ChangshaChangshaInvestment in medicine, investment management, investment consulting, etc.80.00%Establish
Sino Boda(ZhangjiaZhanjiangZhanjiangReal estate investment and51.00%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.AnshunAnshunHousing 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.GuangzhouGuangzhouElevator installation engineering service; elevator maintenance; elevator sales; elevator, escalator and lift manufacturing, etc.60.00%Establish
Sino Great Wall Decoration Engineering (Beijing) Co., Ltd.BeijingBeijingEngineering 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 subsidiaryShares of minority shareholdersGains and losses of minority shareholders in current termDividends declared to minority shareholders in current termEquity 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 subsidiaryEnding balanceOpening balance
Current assetsNon-current assetsTotal assetsCurrent liabilitiesNon-current liabilitiesTotal liabilitiesCurrent assetsNon-current assetsTotal assetsCurrent liabilitiesNon-current liabilitiesTotal liabilities

In RMB

Name of the subsidiaryAmount incurred of current termAmount incurred of last term
Operating incomeNet profitTotal amount of composite benefitsCash flow from operating activitiesOperating incomeNet profitTotal amount of composite benefitsCash 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 enterpriseMain business placeRegistered placeBusiness natureShareholding proportionAccountant arrangement method for joint ventures and jointly-run enterprise
DirectIndirect

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 termOpening balance/Amount incurred of last term

Others:

3. Main financial information of important jointly-run enterprises

In RMB

Ending balance/Amount incurred of current termOpening 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 termOpening 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 enterpriseAccumulated unconfirmed losses accrued in the previous termUnconfirmed 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 operationMain business placeRegistered placeBusiness natureShareholding proportion/Owned shares
DirectIndirect

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

ItemsClosing fair value
Fair value measurement items at level 1Fair value measurement items at level 2Fair value measurement items at level 3Total
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 CompanyRegistered placeBusiness natureRegistered capitalShareholding proportion of Parent Company to the CompanyVoting right proportion of Parent Company to the Company
Chen Lue26 Kuipeng Road, Baishigang,582,944,55634.33%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 associateRelationship with the Company
Sino Great Wall Zhihuai Building Industry (Zhangjiang)Co., Ltd.An associate of which the Company holds 40% shares
Cenang Resort Sdn BhdAn associate of which the Company holds 40% shares

Other notes

4. Information about Other Related Parties

Name of other related partyRelationship 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 ChunlingSecretary to the Board of Directors of the Company
Fang XianzhongDeputy General Manager
Chen LveActual controller of the Company
He SenBrother-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 HospitalA 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 PartyContent of related transactionsCurrent amountApproved transaction quotaWhether exceed the transaction limitedLast Amount

Purchase goods/Service acceptance

In RMB

Related PartyContent of related transactionsCurrent amountLast Amount
Huichang County Sino Great Wall Medical Industrial Construction Service Co., Ltd.PPP project construction20,954,172.7731,440,776.87
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 HospitalPPP project construction54,342,707.21
Wuchuan Sino Great Wall TCM Hospital Investment Co., Ltd.PPP project construction14,949,298.5318,315,685.75
Total90,246,178.5149,756,462.62

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 partName of trustee/contracting partyType of asset trustee/contractingBeginning date of trustee/contractingEnd date of trustee/contractingPricing basis of trustee earning/contracting earningConfirmed trustee earning/contract earning

Note of related trustee/contractingTable on company’s trusteeship/contract-out

In RMB

Name of entrusting/contract-out partName of trustee/contracting partyType of asset trustee/contractingBeginning date of trustee/contractingEnd date of trustee/contractingPricing basis of trustee earning/contracting-out earningConfirmed trustee earning/contract earning

Note of related trustee/contracting

(3)Related tenancy situation

The company as the lessor

In RMB

Name of renterType of leased assetsCurrent confirmed rental incomeLast confirmed rental income

The company as the renter:

In RMB

Name of renterType of leased assetsCurrent confirmed rental incomeLast confirmed rental income

Note of related tenancy situation

(4)Related guarantee situation

The company as the guarantee:

In RMB

Secured partyAmount guaranteedBeginning date of guaranteeEnd date of guaranteeFinished or yet

The company as the secured party

In RMB

Secured partyAmount guaranteedBeginning date of guaranteeEnd date of guaranteeFinished or yet

Note on related guarantee

(5)Related party fund borrowing

In RMB

Related partyBorrowing amountBeginning dateEnd dateNote
Borrowing
Lending

(6)Related party asset transferring and debt restructing

In RMB

Related partyContent or related transactionsCurrent amountLast amount
Shenzhen Hualian Development Investment Co., Ltd.Economic compensation for the reorganization of Major assets100,000,000.00

(7) Rewards for the key management personnel

In RMB

ProjectCurrent amountLast amount
Rewards for the key management personnel1,538,740.95

(8)Other related transactions

6、Receivables and payables of related party

(1)Receivables

In RMB

Project nameRelated partyEnding book valueBeginning book value
Book balanceReserve for bad-debtBook balanceReserve for bad-debt
Account receivable
JD Capital Investment Management Co., Ltd. and its related party77,613.4923,284.0577,613.497,761.35
Lhasa JD Capital Investment Management Co., Ltd. and its related party160,000.0080,000.00160,000.0048,000.00
Shanghai Heyi Supply Chain Management Co., Ltd2,469,164.81740,749.442,469,164.81246,916.48
Huichang County Sino Great Wall Medical Industrial Construction Service Co., Ltd.25,116,590.681,255,829.5378,155,590.973,907,779.55
Sino Great Wall (Fugou) High-speed Railways District Investment Co., Ltd.
Sino Great Wall (Fugou) Fitness Center Investment Co., Ltd.4,445,215.33444,521.534,445,215.33444,521.53
Wuchuan Sino Great Wall TCM Hospital Investment Co., Ltd.34,967,873.541,748,393.6819,724,082.47986,204.12
Total67,236,457.854,292,778.23105,031,667.075,641,183.04
Other receivables
Yang Chunling247,389.2512,369.46530,000.0026,500.00
Fang Xianzhong382,218.5075,096.25227,789.6024,066.88
Sino Great Wall Investment (Beijing) Co., Ltd.9,500.002,850.009,500.00950.00
Sino Great Wall Investment (Beijing) Co., Ltd,1,060,000.00106,000.001,060,000.0053,000.00
Luyi Shuguang Medical Industrial Investment Construction Co., Ltd.4,220,171.891,253,980.644,220,171.89418,999.46
Sino Great Wall (Fugou) Jialu River Comprehensive Treatment Investment Co., Ltd.615,869.2041,671.92217,569.203,851.67
Sino Great Wall Shaanxi Fuyan Industrial Park Investment Co., Ltd.7,652,124.541,198,764.585,195,923.58400,761.72
Sino Great Wall (Fugou) High-speed Railways District Investment Co., Ltd.24,193,648.342,412,190.4723,773,722.221,188,686.11
Sino Great Wall (Fugou) Fitness Center Investment Co., Ltd.1,015,767.6984,827.48573,300.0028,665.00
Wuchuan City Sino Great Wall People’s Hospital Investment CO., Ltd.6,026,341.471,743,366.5235,626,341.471,818,500.17
Wuchuan City Sino Great Wall People’s Hospital Investment CO., Ltd.343,018.86102,905.66343,018.8634,301.89
Yanjin County Sino Great Wall Drainage Network Construction Co., Ltd.2,320,000.00116,000.00400,000.0020,000.00
Total48,086,049.747,150,022.9872,177,336.824,018,282.90

(2)Payables

In RMB

Project nameRelated partyEnding book valueBeginning book value
Account payable
Qinghai Heyi Commercial Co., Ltd.
Total
Advance received
Huichang County Sino Great Wall Medical Industrial Construction Service Co., Ltd.244,863,301.51244,863,301.51
Wuchuan City Sino Great Wall People’s Hospital Investment CO., Ltd.12,360,000.00
Total244,863,301.51257,223,301.51
Other payable
Sino Great Wall (Beijing)Investment Co., Ltd.3,590,000.00
He Sen200,000.00
Chen Lue127,590.95153,613.00
Yang Chunling22,106.90
Anyang Sino Great Wall Medical Management Service Co., Ltd.177,973,316.87159,973,316.87
Total178,100,907.82163,939,036.77

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

ItemContentseffects on financial conditions and operating resultsReasons 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 errorsTreatment procedureReport items of various affected comparative periodsCumulative effects

(2) Prospective application method

Correction contents of the accounting errorsApproval procedureReasons 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

ItemRevenueExpenseTotal profitIncome tax expenseNet profitDiscontinued 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

ItemsOffset during segmentsTotal

(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

CategoryAmount in year-endAmount in year-beginning
Book BalanceBad debt provisionBook valueBook BalanceBad debt provisionBook value
AmountProportion(%)AmountProportion(%)AmountProportion(%)AmountProportion(%)
Of which :
Of which:

Accrual of bad debt provision by single item:

In RMB

NameEnding balance
Book balanceBad debt reserveWithdrawal proportionReason

Accrual of bad debt provision by portfolio:

In RMB

NameEnding balance
Book balanceBad debt reserveWithdrawal proportionReason

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

AgingClosing balance
Within 1 year(Including 1 year)0.00
0.00
1-2 years0.00
2-3 years0.00
Over 3 years0.00
3-4 years0.00
4-5 years0.00
Over 5 years0.00
Total0.00

(2) Accounts receivable withdraw, reversed or collected during the reporting periodThe withdrawal amount of the bad debt provision:

In RMB

CategoryOpening balanceAmount of change in the current periodClosing balance
AccrualReversed or collected amountWrite-off

Of which the significant amount of the reversed or collected part during the reporting period

In RMB

ItemsReversed or collected amountMethod

(3)The current accounts receivable written-offs situation

In RMB

ItemsAmount written-offs

Significant receivables written off are as follows:

In RMB

Unit nameNature of other receivablesAmount written offReasons for writing offWriting-off procedureIs 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

ItemClosing balanceBeginning balance
Dividends receivable100,000,000.00100,000,000.00
Other receivables2,715,822,695.732,886,852,664.14
Total2,815,822,695.732,986,852,664.14

(1) Interests receivable

1) Classification of interests receivable

In RMB

ItemClosing balanceBeginning balance

2) Significant overdue interests

In RMB

BorrowerClosing balanceOverdue timeOverdue reasonsWhether 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 balanceBeginning balance
Sino Great Wall International Engineering Co., Ltd.100,000,000.00100,000,000.00
Total100,000,000.00100,000,000.00

2) Significant dividends receivable with an aging of more than 1 year

In RMB

Item (or the invested party)Closing balanceAgingReasons for recovery failureWhether impairment occurs and the judgment basis
Sino Great Wall International Engineering Co., Ltd.100,000,000.002-3 yearsNo actual payment
Total100,000,000.00------

Other notes:

3)Bad-debt provision

□ Applicable √ Not applicable

(3) Other receivables

1) Disclosure of other receivables by class

In RMB

NatureClosing book balanceOpening book balance
Current payment between units2,588,244,431.372,757,783,997.09
Reserve fund798,554.43666,710.88
Cash deposit and pledge126,779,709.93151,379,709.93
Others139,151.87
Total2,715,822,695.732,909,969,569.77

2)Bad-debt provision

In RMB

Bad Debt ReservesStage 1Stage 2Stage 3Total
Expected credit losses over the next 12 monthsExpected 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

AgingEnding balance
Within 1 year(Including 1 year)61,489,056.94
1-2 years109,634,494.04
2-3 years72,817,431.09
Over 3 years4,352,609.93
3-4 years4,352,609.93
Total248,293,592.00

3) Accounts receivable withdraw, reversed or collected during the reporting periodThe withdrawal amount of the bad debt provision:

In RMB

CategoryOpening balanceAmount of change in the current periodClosing balance
AccrualReversed 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 nameAmount carried back or recoveredRecovery method

3) Other receivables actually written off in the current period are as follows:

InRMB

ItemAmount written off

Significant other receivables written off are as follows:

In RMB

Unit nameNature of other receivablesAmount written offReasons for writing offWriting-off procedureIs 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 nameNature of paymentClosing balanceAgingProportion in the total closing balance of other receivablesClosing balance of bad-debt provision
Sino Great Wall International Engineering Co., Ltd.Current payment2,379,350,202.49Within 1 year87.61%
Wuhan Commercial Worker Hospital Co., Ltd.Current payment89,886,449.10Within 1 year3.31%
Administration Committee of Fuping High-tech Development ZoneCurrent payment50,000,000.002-3 years1.84%15,000,000.00
Ningling County Neihu Wetland shed Reform Construction Co., Ltd.Deposit28,400,000.00Within 1 year1.05%
Fugou County Comprehensive Investment Co., Ltd.Current payment30,000,000.001-2 years1.10%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 nameName of government subsidy projectClosing balanceClosing agingEstimated 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

ItemClosing balanceBeginning balance
Book balanceProvision for impairmentBook valueBook balanceProvision for impairmentBook value
Investment in subsidies3,323,211,536.663,323,211,536.663,323,211,536.663,323,211,536.66
Total3,323,211,536.663,323,211,536.663,323,211,536.663,323,211,536.66

(1) Investment in subsidies

In RMB

Name of investeeOpening balanceIncrease/decrease in this periodEnd of termBalance of the provision on for impairment
Increase in investmentOther
Sino Great Wall International Engineering Co., Ltd.3,079,451,536.663,079,451,536.66
Wuhan Commercial Worker Hospital Co., Ltd.97,000,000.0097,000,000.00
Sino Great Wall Medical Investment Management Co., Ltd.5,000,000.005,000,000.00
Changye City Sino Laodingshan Industrial Co., Ltd.10,000,000.0010,000,000.00
Xiangfen County Taoshan Construction Co., Ltd.10,000,000.0010,000,000.00
Sino Z higu Industrial (Yueyang) Co., Ltd.109,760,000.00109,760,000.00
Ningling County Inner Lake Wetland Shanty-town Renovation Construction Co., Ltd.5,000,000.005,000,000.00
Chengwu County Shenguang Engineering Project Management Co., Ltd.7,000,000.007,000,000.00
Total3,323,211,536.663,323,211,536.66

(2)Investment in joint ventures and associates

In RMB

Name of investeeBeginning of termIncrease/decrease in this periodEnd of termBalance of the provision on for impairment
Increase in investmentDecrease in investmentInvestment income under equity methodOther comprehensive incomeOther changes in equityAnnounced for distributing cash dividend orProvision for impairmentOther
profit
I.Joint venture
II. Associated

(3)Other notes

4. Business income, Business cost

In RMB

ItemsAmount of current periodAmount of previous period
IncomeCostIncomeCost
Main business117,362.07108,742,520.47
Total117,362.07108,742,520.47

Whether implemented new revenue guidelines

□ Yes √ No

Other notes:

5.Investment income

In RMB

ItemsAmount of current periodAmount of previous period

6.Other

XVIII. Supplementary Information

1.Current non-recurring gains/losses

√ Applicable □Not applicable

I n RMB

ItemsAmountNotes
Gain or loss on disposal of non-current assets54,651.22
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 periodReturn on net assets . Weighted(%)Earnings per share
Basic earnings per shareDiluted 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.


  附件:公告原文
返回页顶