Sino Great Wall Co., Ltd.
The Semi-annual Report 2018
August 2018
I. Important Notice, Table of Contents and Definitions
The 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, Mr.Tang Xianyong, Chief financial officer and the Mr.Tang Xianyong, theperson in charge of the accounting department (the person in charge of the accounting) hereby confirm theauthenticity 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.The Company has no plan of cash dividends carried out, bonus issued and capitalizing of common reserves either.
Table of Contents
Semi-Annual Report 2018I. Important Notice and DefinitionsII. Corporate Profile and Key Financial IndicatorsIII. Business ProfileIV. Performance Discussion and AnalysisV. Important EventsVI. Change of share capital and shareholding of Principal ShareholdersVII. Situation of the Preferred SharesVIII.Information about Directors, Supervisors and Senior ExecutivesIX. Corporate BondsX.Financial ReportXI. Documents available for inspection
Definition
| Terms to be defined | Refers to | Definition |
| Company Law | Refers to | Company Law of the People’s Republic of China |
| Securities Law | Refers to | Securities Law of the People’s Republic of China |
| “CSRC” | Refers to | China Securities Regulatory Commission |
| Company,The Company, Sino Great Wall | Refers to | Sino Great Wall Co., Ltd. |
| Sino International | Refers to | Sino Great Wall International Engineering Co., Ltd. |
| SZSE | Refers to | Shenzhen Stock Exchange |
| Reporting period | Refers to | January 1,2018 to June 30,2018 |
| Wuhan Commercial worker Hospital | Refers to | Wuhan Commercial worker Hospital Co., Ltd. |
| Union Holdings | Refers to | Union Holdings Co., Ltd. |
| Rich Crown Investment | Refers to | Rich Crown Investment Co., Ltd. |
| Baden-Baden Hospital | Refers to | Acura Kliniken Baden-Baden GmbH |
II. Corporate Profile and Key Financial Indicators
I．Company Information
| Stock abbreviation: | Sino Great Wall Sino-B | Stock code： | 000018 200018 |
| Change of stock Abbreviation（If any） | Nil | ||
| Stock exchange for listing | Shenzhen Stock Exchange | ||
| Name in Chinese | 神州长城股份有限公司 | ||
| Chinese Abbreviation | 神州长城 神州B | ||
| English name (If any) | Sino Great Wall Co., Ltd. | ||
| English Abbreviation (If any) | Sino Great Wall Sino-B | ||
| Legal Representative | Chen Lue | ||
II. Contact person and contact manner
| Board secretary | Securities affairs Representative | |
| Name | Yang Chunling | |
| Contact address | Sino Great Wall Building, No.3 Jinxiu Street,EconomicTechnology Development Zone , Beijing | |
| Tel | 010-89045855 | |
| Fax | 010-89045856 | |
| 1208806865@qq.com |
III. Other information(1)Way to contact the CompanyWhether registrations address, offices address and codes as well as website and email of the Company changed in
reporting period or not
□ Applicable □√ Not Applicable
The registered address, office address and their postal codes, website address and email address of the Companydid not change during the reporting period. The said information can be found in the 2017 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. The
said information can be found in the 2017 Annual Report.IV. Summary of Accounting Data and Financial IndicatorsIndicate by tick mark whether the Company needs to retroactively restate any of its accounting data.
□ Yes √No
| Reporting period | Same period of last year | YoY+/-（%） | |
| Operating income（RMB） | 1,586,971,575.24 | 3,025,082,356.80 | -47.54% |
| Net profit attributable to the shareholders of the listed company（RMB） | 143,999,455.72 | 268,606,450.03 | -46.39% |
| Net profit after deducting of non-recurring gain/loss attributable to the shareholders of listed company（RMB） | -33,506,685.35 | 264,902,836.16 | -112.65% |
| Cash flow generated by business operation, net（RMB） | 1,098,164,365.63 | -535,997,580.19 | 304.88% |
| Basic earning per share(RMB/Share) | 0.0848 | 0.16 | -47.00% |
| Diluted gains per share(RMB/Share)(RMB/Share) | 0.0848 | 0.16 | -47.00% |
| Weighted average ROE(%) | -6.61% | 14.39% | -7.78% |
| As at the end of the reporting period | As at the end of last year | YoY+/-（%） | |
| Gross assets (RMB) | 11,025,565,646.45 | 11,667,845,186.30 | -5.50% |
| Shareholders’ equity attributable to shareholders of the listed company（RMB） | 2,205,590,520.66 | 2,151,482,467.52 | 2.51% |
V.The differences between domestic and international accounting standards
1．Simultaneously pursuant to both Chinese accounting standards and international accounting standards disclosed
in the financial reports of differences in net income and net assets.
□ Applicable□√ Not applicable
Nil
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chineseaccounting standards.
□ Applicable √Not applicable
Nil
VI. Items and amount of non-current gains and losses
√Applicable □Not applicable
In RMB
| Items | Amount | Notes |
| Non-current asset disposal gain/loss(including the write-off part for which assets impairment provision is made) | -570,793.76 | |
| Income from the exceeding part between investment cost of the Company paid for obtaining subsidiaries, associates and joint-ventures and recognizable net assets fair value attributable to the Company when acquiring the investment | 70,486,755.72 | Mainly due to the acquisition of Baden-Baden Hospital evaluation value-added |
| Net amount of non-operating income and expense except the aforesaid items | 108,668,232.63 | Mainly due to the land compensation paid by Union Holdings |
| Less: .Amount of influence of income tax | 1,078,053.52 | |
| Total | 177,506,141.07 | -- |
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses 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 information
disclosure 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 industry
Yes
Civil Engineering Construction
Within the report period, the core business of the company is engineering construction and investment andmanagement in medical treatment and health industry. The engineering construction mainly includes theinternational engineering general contracting (EPC) and domestic PPP business. The investment and managementin medical treatment and health industry mainly comprises the medical treatment operation management forhospitals in the industry through several ways including acquisition of existing hospitals, construction of newhospitals, as well as building and investing the PPP projects for hospitals, etc.
At present, the company’s business covers the house building, roads and bridges, power and chemical
industry as well as medical treatment and health, etc., which has extended to many countries and regions inSoutheast Asia, the Middle East, South Asia and Africa, etc. The company mainly engages in the foreignengineering construction through EPC, namely general contracting or several phases of contracting in design,purchase, construction and trial operation of construction project through integrating the high-quality resources athome and abroad. For the domestic engineering construction, the company mainly adopts PPP model, namely theproject operation model through cooperation of the government and social capital. Under such model, thegovernment will select the social capital with the investment and operation management capacity throughcompetitive ways, and both parties shall enter into the contract through consultation on the basis of equality, underwhich public services will be provided through social capital and the government shall pay the considerationagainst the social capital based on the public service performance assessment result.
Currently, the company’s construction qualifications include: first-class qualification as general contractor of
housing & construction engineering project, first-class qualification as specialized contractor of architecturaldecoration engineering design and construction, first-class qualification as specialized contractor of buildingcurtain wall engineering, first-class qualification as specialized contractor of ground foundation engineering,first-class qualification as specialized contractor of firefighting facilities engineering, first-class qualification asspecialized contractor of waterproof anti-corrosion insulation engineering, second-class qualification as generalcontractor of mechanical and electrical engineering construction, second-class qualification as specializedcontractor of bridge construction, second-class qualification as general contractor of petrochemical engineeringconstruction, second-class qualification as general contractor of municipal public engineering construction,second-class qualification as specialized contractor of tunnel construction, second-class qualification asspecialized contractor of fabrication and installation of hydraulic metal structure, second-class qualification asgeneral contractor of water conservancy and hydropower project construction, third-class qualification as generalcontractor of railway engineering construction, second-class qualification as general contractor of metallurgicalengineering construction, qualification regardless of grades as specialized contractor of special engineering,third-class qualification as specialized contractor of highway pavement engineering, third-class qualification asspecialized contractor of highway subgrade engineering, etc. The scope covers the engineering qualifications ofbuilding, highway, railway, municipal utilities, water conservancy and hydropower, petrochemical, electric powerand other types of engineering. Among these qualifications, class A qualification for design of architecturaldecoration engineering will expire on December 18, 2018, and the company is preparing for extension application,as it is qualified for the application.
In overseas market, after many years of development, the company’s ability to adapt to overseas standards and
localized project management capability has been continuously improved through years of talent cultivation andtechnology accumulation. For the domestic business, as the Company PPP project bid-winning quantity andcommencement quantity increase continuously, the Company improves PPP project operation capacitycontinuously, accumulates experience in aspects of the project bidding, financing ways and operation managementand forms its unique operation ways.
As of the end of the reporting period, the company has won more than 40 billion yuan of unfilled orders at
home and abroad, with good development prospect, thus providing excellent support for the company’s future
performance in the project.
Ⅱ.Major Changes in Main Assets
1. Major Changes in Main Assets
| Main assets | Major changes |
| Equity assets | Has not changed much |
| Fixed assets | Mainly due to the merger of Acura Kliniken Baden-Baden GmbH |
| Intangible assets | Mainly due to the merger of Acura Kliniken Baden-Baden GmbH |
| Construction in process | Mainly due to the completion of overseas equipment installation |
2. Main Conditions of Overseas Assets
√ Applicable □ Not applicable
| Specific content of the asset | Cause of formation | Asset size | location | Operational mode | Control measures to ensure asset security | Income status | The proportion of overseas assets to the company's net assets | Is there a significant risk of impairment? |
| Baden-Baden Hospital | Purchase | Total assets as of June 30, 2018 is 51,055,379.01yuan | Germany | Proprietary | Achieve actual control through the hiring of senior executives | Net profit for january-june 2018 is 2,331,129.11yuan | 2.2% | No |
□ Applicable √ Not applicableⅢ.Analysis On core Competitiveness
Whether the company needs to comply with the disclosure requirements of the particular industry
YesCivil Engineering Construction
As a leading construction contractor for comprehensive engineering services, Sino Great Wall Co., Ltd. has
leading integrated contracting capability in EPC, BT, BOT and PPP projects and other large projects. Under theBelt and Road Initiative, the company has had a good opportunity for overseas business development. With thecontinuous promotion of PPP project throughout the country, the company is faced with a good opportunity for its
domestic business development. In addition, the company’s comprehensive strength, overseas influence and
market competitiveness have been improved 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 bigger
and stronger overseas business, and to become the world's leading international comprehensive construction &
building service provider”. In 2016, the company set up the “Medical & Health business” as another 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. In
terms 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 solid
foundation for the company’s overseas business development. In terms of the Medical & Health business, the
company has set up project teams in many domestic places such as Sichuan, Henan ,Hubei and Guizhou, and thecompany has purchased Wuhan Commercial and Vocational Hospital Co, Ltd and won the bids of many medicaland health PPP projects. Also, the company has established cooperative relationships with many hospitals and hasrecruited many kinds of talents in terms of medical, hospital management, investment and financing etc, thusprovided a strong support for the Medical & Health business development.
2. Standardized and high-efficient management system, fully market-oriented operation mechanismWith 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 improve
the work efficiency and execution, thus ensured the efficient operation of the company’s business operation. For
the operation mechanism, the company bravely faces the fierce competition in the market, adheres to themarket-oriented development, respects the objective laws of the market and constantly improves its 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 advantagesThe 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 the
company can constantly optimize the process to reduce the project costs. The company’s excellent design ability,
sound construction quality, high-efficient construction planning and the comprehensive high-quality service
greatly enhanced the customers’ satisfaction.
4. Costs advantages and quality-control advantages
The company’s core management personnel have more than ten years of experience in building construction.
With a deep understanding of the industry, the company has established a sound system integrating materialprocurement, labor management and quality control. In the procurement, through comprehensive pricecomparison, bidding and procurement, the supplier is screened to manage material procurement cost of projectwithin the controllable range at the early stage of the project. 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.
5. Talent advantageThe company's core management team staff has many years of experience in construction work and hasstrong business ability and rich experience, with strong management ability and technological level. The companyalways adheres to the talent concept of "Employees are the most valuable wealth of the company", and an activeand positive management team is the cornerstone of the company's stable, healthy and sustainable development.
IV. Performance Discussion and Analysis
Ⅰ.General
In the first half of 2018, the company has continued to adhere to the values of “integrity, professionalism,
perfection and honor”, paying close attention to the policies and related developments of “the Belt and RoadInitiative”, PPP business and construction medical industry, in order to adapt to the economic developmentsituation by actively expanding overseas project contracting and investment business brought by “the Belt andRoad Initiative” and increasing the investment and construction of PPP projects in medical industry andinfrastructure, which has achieved good results.
In terms of engineering construction, the company has achieved relatively sound and rapid development at homeand abroad. In terms of overseas business, the company has signed important construction contracts with anumber of countries and regions in Southeast Asia, winning the bids for development project of DongphosySpecial Economic Zone in Vientiane, Laos and Mekong Villa project in Cambodian, which helps the company
expand the types and scope of domestic and international project contracting business and enhance the company’scompetitive advantage and overall profitability in order to become a “provider for integrated solution in buildingconstruction”. The company’s domestic business covers various fields such as medical treatment, municipal
construction, transportation and infrastructure. For example, the company has won the PPP project of ecologicalwater system and road network for new district in Yanjin County. As of the end of June 2018, the company has
obtained domestic and international orders exceeding 40 billion yuan, ensuring a steady growth in the company’s
operating performance in the next few years.In the investment and management in the medical and health industry, the company has acquired 100% of equityof Acura Kliniken Baden-Baden GmbH, Germany for 14.1 million euros. The Acura Kliniken Baden-Baden GmbH is along-established specialized hospital in Germany with a high reputation in medical rehabilitation. The acquiredhospital is used to introduce senior medical talents, technology and management experience owned by Germany,
and integrate Chinese and foreign resources to achieve the company’s development in the field of medical
rehabilitation.
In other respects, in order to actively grasp the important historical opportunity and business chance to build
Xiong’an New District into a city of “green wisdom” and “Xiong’an quality” proposed by the Party CentralCommittee, the company’s wholly-owned subsidiary Sino Great Wall International invested RMB 100 million toestablish a wholly-owned subsidiary, Sino Great Wall Hebei Xiong’an Engineering Co., Ltd., in Xiong’an NewDistrict, and Xiong’an Engineering officially obtained a business license on February 24, 2018. In order to carryout business effectively in Xiong’an New District, the company leased its office in Xiong’an New District andplanned to arrange the subsidiaries with relevant construction qualifications to merge with Xiong’an Company, sothat Xiong’an Company quickly obtained construction qualification to smoothly obtain orders.
In January-June 2018, the company realized operation income of 1,586,971,575.24 yuan , an decrease of
47.54% from the last year; and the net profit attributable to the parent company was 143,999,455.72 yuan, andecrease of 46.39% from the last year. The decrease in the above data was Mainly due to the country's credittightening, the funding is tight and the project is progressing slowly.
Ⅱ.Main business analysisRefer to relevant contents of “1.Summarization” in “Discussion and Analysis of Management”.
Changes in the financial data
In RMB
| Reporting period | Same period of last year | YoY+/-（%） | Reason for change | |
| Operating revenues | 1,586,971,575.24 | 3,025,082,356.80 | -47.54% | Mainly due to the country's credit tightening, the funding is tight and the project is progressing slowly. |
| Operating costs | 1,312,212,102.46 | 2,319,598,615.76 | -43.43% | Reduced operating income |
| Selling expense | 16,521,622.08 | 18,094,586.39 | -8.69% | |
| Administrative expense | 127,907,861.56 | 125,176,758.15 | 2.18% | |
| Finance costs | 145,939,925.19 | 139,811,809.59 | 4.38% | Due to increase of Long-term and short-term borrowing |
| Income taxes | 18,790,236.79 | 56,227,138.25 | -66.58% | Due to decrease of profit |
| R &D investment | 48,047,814.77 | 91,252,470.70 | -47.35% | Reduced R&D investment in this period |
| Net cash generate by operating activities | 1,098,164,365.63 | -535,997,580.19 | -304.88% | Mainly because the current payback is better. |
| Net cash generated by investing activities | -201,491,732.24 | -265,219,280.44 | -24.03% | |
| Net cash generated by financing activities | -1,281,374,118.34 | 1,308,613,716.28 | -197.92% | Mainly due to the repayment of loans in the current period |
| Net increase in cash and cash equivalents | -389,203,669.48 | 502,768,417.94 | -177.41% | Mainly due to the repayment of loans in the current period |
| Note receivable | 392,028,545.46 | 288,201,562.88 | 36.03% | Mainly for the increase of company bill collection |
| Fixed assets | 331,425,276.47 | 174,537,150.56 | 89.89% | Mainly due to the merger of Acura Kliniken Baden-Baden GmbH |
| Construction in | 707,700.59 | 4,968,590.96 | -85.76% | Mainly due to the |
| process | completion of overseas equipment installation | |||
| Intangible assets | 170,804,965.85 | 127,524,445.00 | 33.94% | Mainly due to the merger of Acura Kliniken Baden-Baden GmbH |
| Interest payable | 1,776,077.61 | 16,105,263.85 | -88.97% | Mainly due to the maturity of loans in the first half |
| Other account payable | 1,322,713,803.81 | 520,965,421.13 | 153.90% | Mainly due to the increase in short-term accounts payable |
| Non-current liabilitiesdue within 1 year | 487,657,918.14 | 820,422,471.45 | -40.56% | Mainly due to the gradual expiration of Long-term loans |
| Deferred income tax liabilities | 51,894,878.61 | 26,088,961.71 | 98.92% | Mainly due to the merger of Acura Kliniken Baden-Baden GmbH |
Major changes to the profit structure or sources of the Company in the reporting period
□ Applicable √Not applicableNo such cases in the reporting period。
Breakdown of main business
In RMB
| Operating revenue | operating costs | Gross profit rate(%) | Increase/decrease of reverse in the same period of the previous year(%) | Increase/decrease of principal business cost over the same period of previous year (%) | Increase/decrease of gross profit rate over the same period of the previous year (%) | |
| Industry | ||||||
| EPC | 1,277,090,209.10 | 1,058,787,163.78 | 17.09% | -37.30% | -30.28% | -8.35% |
| Decoration work | 309,881,366.14 | 253,424,938.68 | 18.22% | -68.64% | -68.36% | -0.72% |
| Product | ||||||
| EPC | 1,277,090,209.10 | 1,058,787,163.78 | 17.09% | -37.30% | -30.28% | -8.35% |
| Decoration work | 309,881,366.14 | 253,424,938.68 | 18.22% | -68.64% | -68.36% | -0.72% |
| Area | ||||||
| Domestic | 911,931,967.87 | 822,312,618.71 | 9.83% | -42.89% | -36.85% | -8.63% |
| Overseas | 675,039,607.37 | 489,899,483.75 | 27.43% | -52.74% | -51.85% | -1.33% |
III. Non-core business analysis
√ Applicable □ Not applicable
| Amount | Ratio in total profit | Note | Whether be sustainable | |
| Investment income | 5,171,892.51 | 3.20% | Due to the Disposal of subsidiaries | No |
| Non-operating income | 179,220,495.20 | 110.73% | Due to Land compensation and acquisition of subsidiaries assessed value added | No |
| Non-operating expenses | 636,300.61 | 0.39% | Due to Disposal of fixed assets | No |
IV. Analysis of assets and liabilities1.Significant changes in asset composition
In RMB
| End of Reporting period | End of same period of last year | Change in percentage(%) | Reason for significant change | |||
| Amount | As a percentage of total assets(%) | Amount | As a percentage of total assets(%) | |||
| Cash and bank balances | 1,374,597,109.50 | 12.47% | 1,720,256,083.77 | 18.08% | -5.61% | Has not changed much |
| Account receivable | 5,031,464,951.12 | 45.63% | 4,828,966,377.80 | 50.74% | -5.11% | Has not changed much |
| Inventory | 745,455,718.17 | 6.76% | 301,728,576.28 | 3.17% | 3.59% | Has not changed much |
| Fixed assets | 331,425,276.47 | 3.01% | 127,345,176.80 | 1.34% | 1.67% | Due to Acquisition of Acura Kliniken Baden-Baden GmbH |
| Construction in | 707,700.59 | 0.01% | 3,788,297.42 | 0.04% | -0.03% | Has not changed much |
| process | ||||||
| Short-term loans | 2,798,513,481.24 | 25.38% | 2,750,186,595.11 | 28.90% | -3.52% | Has not changed much |
| Long-term loans | 873,089,164.49 | 7.92% | 444,341,594.32 | 4.67% | 3.25% | Due to increase in loans |
2.Asset and Liabilities Measured by Fair Value
□ Applicable √ Not applicable
3. Restricted asset rights as of end of the reporting period
On January 4, 2017, Wuhan Commercial Worker Hospital received a loan of RMB 100 million from Great
Wall Guoxing Financial Leasing Co., Ltd. for a period of 36 months through finance leasing. Please refer to thepublished on January 5,2017 on www.cninfo.com.cn) on the relevant announcement.
By the end of the report, the pledge of receivables amounted to 4,121 million yuan. The land of shenzhouGreat Wall smart housing industry (zhanjiang) co., ltd. was mortgaged to shenzhen branch of bohai bank by thehighest amount of mortgage (the highest amount of debt is 22.28 million yuan). The term is June 11, 2018,solstice, December 21, 2018.
Ⅴ.Investment situation
1. General
√ Applicable □ Not applicable
| Investments made in the reporting period | Investments made in same period of last year | +/- % |
| 16,000,000.00 | 135,075,100.00 | -88.15% |
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 equity1. 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 applicableⅦ.Analysis of the Main Share Holding Companies and Share Participating Companies√ Applicable □ Not applicable
Situation of Main Subsidiaries and the Joint-stock Company with over 10% net profit influencing to the Company
In RMB
| Company name | Company type | Main business scope | Registered capital | Total assets | Net assets | Turnover | Operating profit | Net profit |
| Sino Great Wall International Engineering Co., Ltd. | Subsidiaries | Construction general contracting, labor subcontracting; engineering survey and design; professional contracting; engineering design for the construction decoration; | 1,000,000,000 | 10,301,339,207.19 | 2,342,029,908.99 | 1,481,683,700.81 | 101,065,871.37 | 160,005,549.15 |
Subsidiaries obtained or disposed in the reporting period
□ Applicable √ Not applicable
Notes
Sino international is a construction enterprise mainly engaged in project general contracting (EPC), whichcan provide customers with "one-stop" project solutions and services, and is committed to becoming a globalleading international comprehensive construction service provider. The business area covers two major domesticand foreign markets, with construction projects in 20 foreign countries and 15 overseas branches. The businessscope covers construction, highway, municipal public utilities, energy and chemical engineering and otherengineering construction majors.
Sino international mainly includes overseas general contracting business, domestic PPP construction business,decoration and mechanical and electrical business. Sino Great Wall hebei xiongan engineering co., LTD.(hereinafter referred to as xiongan company), a subsidiary of the company, was officially established and obtainedthe business license on feb 24, 2018. In order to better conduct business in xiongan new area, the company rentedoffices in the new area in 2017 to better serve the construction and development of xiongan new area.
In the first half of 2018, the business revenue was 148,1683,700 yuan. Realized net profit of 16,000.55million yuan.
VIII．Structured vehicle controlled by the Company□ Applicable √ Not applicable
IX. Prediction of business performance for January -September 2018Estimation of accumulative net profit from the beginning of the year to the end of next report period to be loss
probably or the warning of its material change compared with the corresponding period of the last year andexplanation of reason.
□ Applicable √ Not applicable
X. Risks facing the Company and countermeasures
（1）Influence of Macro Economy and Policy
The construction industry and the health-care industry, in which the Company are engaging, are influencedgreatly by macro economy and policies. The uncertainty in international and domestic economic situation and the
changes of national policy will bring potential risks to the Company’s market development and operating
management.
Solutions: Pay constant attention to the international and domestic economic situation to make reasonableprejudgment. 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 2018.
(2)Risks Aggravated by the Market CompetitionAs 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 PPP projects, many companies have participated in the construction of PPP projects. Thus, thePPP projects have been more difficult to bid and have fierce competition, which imposes a higher requirement onthe 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.
(3)Management Risks Brought by Constant Business Scope EnlargementThe company's main business is in a fully competitive market with low industry barriers and fiercecompetition. The company is in a period of rapid development, and the rapid development and expansion ofdomestic and foreign businesses raise higher requirements for the company's organizational operations and projectmanagement.
Solutions: Strengthen learning and training, constantly improve the quality of the on-the-job managers andtechnicists, introduce high-level personnel and improve the overall management capacity and the technical
capacity of the Company to fully adapt to the pace of the Company’s speedy development
4. Foreign exchange riskAffected by political factors, international exchange rate fluctuates greatly, which may bring certain losses.The impact of foreign exchange risk on the company is mainly reflected in the following three aspects: First,exchange rate fluctuation will affect the project quoted price and cost provided by the company, which will
adversely affect the company’s project margin; Second, the claims and debts of outstanding balance may bringlosses to the company’s foreign exchange exposure due to the different exchange rates between the signing date
and the settlement date. Third, when compiling the consolidated financial statements, the company may result inbook loss when local currency is translated into the accounting currency due to the difference between the
exchange rate for translation and the historical exchange rate, which affects the stability of the company’s
performance.
Solutions:：The settlement currency adopted by the company and the customer shall use US dollar or thecurrency pegged with US dollar as much as possible to ensure the relative stability of the exchange rate; thecompany purchases construction materials on a global scale to reduce costs and to some extent offset the risk
brought by exchange rate fluctuation to the company. When the settlement currency including US dollardepreciates, foreign exchange settlement shall be reduced to lower the actual exchange loss.
V. Important Events
1. Annual General Meeting and Extraordinary Shareholders’ Meetings in the Reporting Period
1.Annual General Meeting
| Meeting | Type | Investor participation ratio | Convened date | Disclosure date | Index to disclosed information |
| The first provisional shareholders’ General meeting in 2018 | Provisional shareholders’ General Meeting | 51.78% | March 28,2018 | March 29,2018 | The first provisional shareholders’ General Meeting (No.2018-050) published on Securities Times,Hong Kong Commercial Daily and Juchao Website（http://www.cninfo.com.cn）on March 29.2018. |
| The second provisional shareholders’ General meeting in 2018 | Provisional shareholders’ General Meeting | 38.84% | April 9,2018 | April 10,2018 | The second provisional shareholders’ General Meeting (No.2018-053) published on Securities |
| Times,Hong Kong Commercial Daily and Juchao Website（http://www.cninfo.com.cn）on April 10,.2018. | |||||
| 2017 Annual General Meeting | Annual General Meeting | 34.50% | May 16,2018 | May 17,2018 | 2017 Annual General Meeting (No.2018-071) published on Securities Times,Hong Kong Commercial Daily and Juchao Website（http://www.cninfo.com.cn）on May 17,2018. |
| The third provisional shareholders’ General meeting in 2018 | Provisional shareholders’ General Meeting | 34.50% | June 21,2018 | June 22,2018 | The third provisional shareholders’ General Meeting (No.2018-081) published on Securities Times,Hong Kong Commercial Daily and Juchao Website（http://www.cninfo.com.cn）on June 22,2018. |
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 actual for the reporting period
□ Applicable √Not applicable
For the reporting period, the Company plans not to distribute cash dividends or bonus shares or convert capitalreserve into share capital.
III. The fulfilled commitments in the reporting period and under-fulfillment commitments by the end of thereporting period made by the company, shareholder, actual controller, acquirer, director, supervisor,senior management personnel and other related parities.
√ Applicable □ Not applicable
| Commitment | Commitment maker | Type | Contents | Time of making commitment | Period of commitment | Fulfillment |
| Commitment on share reform | No | No | No | No | No | |
| Commitment in the acquisition report or the report on equity changes | No | No | No | No | No | |
| Commitments in assets reorganization | Chen Lue | Cash compensation | “1. Up to October 13th,2014, the related expenses of the litigation and arbitration cases, including the actual price, compensation, penalty, ligation costs, etc. which the parent-subsidiary companies of Sino Great Wall needs to pay caused by the final results of ligation and arbitration cases, | March 19,2015 | Long-term | It has been fulfilled (on May 21, 2018, Chen Lue paid the company a payment of RMB 5,601,460.21 for the difference between the lawsuit and arbitration of parent company and subsidiary of Sino Great Wall Co., Ltd.. For details information, please refer to the Announcement on the Payment of Cash by the |
| exceed the amount of liabilities which recognized in the “Audit Report” made for Sino Great Wall by Ruihua CPA (Special Ordinary Partnership) on the basis of the audit base day of July 31st, 2014, I promise to bear the balance by cash unconditionally so as to guarantee the parent-subsidiaries of Sino Great Wall won’t suffer any loss. 2. This commitment letter is irrevocable. | Controlling Shareholder and the Actual Controller to the Company to Fulfill the Commitment published by the company on the website of Juchao Information (cninfo.com.cn ) on May 22, 2018.) | ||||
| Chen Lue , He Feiyan | Performance commitment | According to“ Agreement of Shenzhen Victor Onward Textile | May 11,2015 | Long-term | Fulfilled |
| promised net profit mentioned above , Chen Lue and He Feiyan will compensate for listed company in accordance with “Performance Compensation Agreement” and its supplemental agreement | |||||
| Union Development Group Co., Ltd. | Income disposal | During the assets reorganization, the house property and land without property certificate in the disposed assets within the plant area of Kuixin Community of Kuichong Street of Longgang District and the expected compensations, as well | March 19,2015 | Long-term | It has been fulfilled (on March 29, 2018, the company received RMB 100 million as the economic compensation paid by Shenzhen Union Development Investment Co., Ltd., and promised to fulfill it.) |
| And the benefits and risks of the real estate without certificate are enjoyed and assumed by Victor Onward Holdings.” | ||||||
| Commitments make in initial public offering or re-financing | No | No | No | No | No | |
| Equity incentive commitment | No | No | No | No | No | |
| Other commitments for medium and small shareholders | No | No | No | No | No | |
| Completed on time(Y/N) | Yes | |||||
| If the commitments is not fulfilled on time, shall explain the specify reason and the next work plan | Nil | |||||
IV. Particulars about engagement and disengagement of CPAs firmWhether the semi-annual financial report had been audited?
□ Yes √ No
The semi-annual financial report has not been audited.
V. Explanations given by board of directors and supervisory board regarding “ Modified auditor’s” Issued
by CPAs firm for the reporting period
□ Applicable √ Not applicableVI. Explanations given by Board of Directors regarding “ Modified auditor’s Report” Issuedfor last year□ Applicable √ Not applicable
VII. Bankruptcy and restructuring
□ Applicable √ Not applicable
No such cases in the reporting period.
VIII. Legal mattersSignificant lawsuits or arbitrations
□ Applicable √ Not applicable
No such cases in the reporting period.Other legal matters
□ Applicable √ Not applicable
IX. Punishments and rectifications
□ Applicable √ Not applicable
No such cases in the reporting period.X. Credit conditions of the Company as well as its Controlling shareholder and actual Controller
□ Applicable √ Not applicable
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) ofShenzhen 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 the
share-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 November
21, 2017, the company held the twenty-sixth meeting of the seventh board of directors, which reviewed and
adopted the “Proposal on the one-year extension of the company's first phase ESOP”, and according to thevoting result of the holders’ meeting, the board agreed to extend the duration of the company's first phase ESOP
by one year, meaning that the ESOP can sell shares within the afore-said extension of one year (until 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.
XII. Material related transactions1. 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
On March 12, 2018, the company and Union Development Group Co., Ltd. and Chen Lue signed anAgreement on the Economic Compensation for the Events after the Major Asset Restructuring Period of ShenzhenVictor Onward Textile Industrial Co., Ltd.. On March 17, 2018, the company and Union Development Group andMr. Chen Lue signed a Supplementary Agreement on Agreement on the Economic Compensation for the Eventsafter the Major Asset Restructuring Period of Shenzhen Victor Onward Textile Industrial Co., Ltd.. On March 29,2018, the company received RMB 100 million as the economic compensation paid by Shenzhen UnionDevelopment Investment Co., Ltd..
Website for temporary disclosure of the connected transaction
| Announcement | Date of disclosure | Website for disclosure |
| Sino Great Wall ：Announcement on Signing the Economic Compensation Agreement and Changes in Shareholders' Commitments and Related Transactions | March 20,2018 | （http://www.cninfo.com.cn） |
| Sino Great Wall：Announcement on the Supplemental Agreement for the Signing of the Economic Compensation Agreement | March 20,2018 | （http://www.cninfo.com.cn） |
XIII. Particulars about the non-operating occupation of funds by the Controlling shareholder and 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 execution1.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
Notes
During 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
| External Guarantee (Exclude controlled subsidiaries) | ||||||||
| Name of the Company | Relevant disclosure date/No. of the guaranteed amount | Amount of Guarantee | Date of happening (Date of signing agreement) | Actual mount of guarantee | Guarantee type | Guarantee term | Complete implementation or not | Guarantee for associated parties (Yes or no) |
| Total of external guarantee approved in the report term (A1) | 0 | Total of external guarantee actually occurred in the report term (A2) | 0 | |||||
| Total of external guarantee approved as of end of report term (A3) | 0 | Total of external guarantee actually occurred as of end of report term (A4) | 0 | |||||
| Guarantee of the company for its subsidiaries | ||||||||
| Guarantee provided to | Amount of guarantee and date of disclosure | Amount of the guarantee | Actual date of occurring (signing date of agreements | Actual amount of guarantee | Type of guarantee | Term | Completed or not | Related guarantee |
| Sino International | April 15, 2016 | 70,000 | January 16,2017 | 70,000 | The joint liability guaranty | 1 year | No | No |
| Sino International | April 28, 2017 | 12,000 | February 12,2018 | 12,000 | The joint liability guaranty | 1 year | No | No |
| Sino International | April 28, 2017 | 12,000 | March 12,2018 | 12,000 | The joint liability guaranty | 1 year | No | No |
| Sino International | April 15, 2016 | 20,000 | April 11,2017 | 20,000 | The joint liability guaranty | 1 year | No | No |
| Sino International | April 28, 2017 | 12,000 | June 7,2017 | 12,000 | The joint liability guaranty | 1 year | No | No |
| Sino International | April 28, 2017 | 40,000 | June 25,2017 | 40,000 | The joint liability guaranty | 1 year | No | No |
| Sino International | April 28, 2017 | 22,000 | June 30,2017 | 22,000 | The joint liability guaranty | 1 year | No | No |
| Sino International | April 28, 2017 | 20,000 | October 18,2017 | 20,000 | The joint liability guaranty | 1 year | No | No |
| Sino International | April 28, 2017 | 10,000 | November 22,2017 | 10,000 | The joint liability guaranty | 1 year | No | No |
| Sino International | April 28, 2017 | 10,000 | November 30,2017 | 10,000 | The joint liability guaranty | 1 year | No | No |
| Sino International | April 28, 2017 | 20,000 | January 10,2018 | 20,000 | The joint liability guaranty | 1 year | No | No |
| Sino International | April 28, 2017 | 8,000 | February 13,2018 | 8,000 | The joint liability guaranty | 1 year | No | No |
| Sino International | April 15, 2016 | 8,400 | March 31,2017 | 8,400 | The joint liability guaranty | 30 months | No | No |
| Wuhan Commercial Worker Hospital | April 15, 2016 | 10,889.81 | January 18,2017 | 10,889.81 | The joint liability guaranty | 3 years | No | No |
| Sino Great Wall Jianye | April 28, 2017 | 5,000 | September 30,2017 | 5,000 | The joint liability guaranty | 1 year | No | No |
| Total of guarantee for subsidiaries approved in the Period (B1) | 1,000,000 | Total of actual guarantee for subsidiaries in the Period (B2) | 52,000 | |||||
| Total of guarantee for subsidiaries approved at Period-end (B3) | 1,000,000 | Total of actual guarantee for subsidiaries at Period-end (B4) | 280,289.81 | |||||
| Guarantee of the subsidiaries for the controlling subsidiaries | ||||||||
| Name of the Company | Relevant disclosure | Amount of | Date of happening | Actual mount of | Guarantee type | Guarantee term | Complete implem | Guarantee for |
| guaranteed | date/No. of the guaranteed amount | guarantee | (Date o signing agreement) | guarantee | entation or not | associated parties (Yes or no) | |||
| Total guarantee quota to the subsidiaries approved in the reporting period (C1) | 0 | Total amount of guarantee to the subsidiaries actually incurred in the reporting period (C2) | 0 | ||||||
| Total guarantee quota to the subsidiaries approved at the end of the reporting period (C3) | 0 | Total balance of actual guarantee to the subsidiaries at the end of the reporting period (C4) | 0 | ||||||
| Total of Company’s guarantee（namely total of the large three aforementioned） | |||||||||
| Total of guarantee in the Period （A1+B1+C1） | 1,000,000 | Total of actual guarantee in the Period（A2+B2+C2） | 52,000 | ||||||
| Total of guarantee at Period-end（A3+B3+C3） | 1,000,000 | Total of actual guarantee at Period-end （A4+B4+C4） | 280,289.81 | ||||||
| The actual total amount of guarantee (namely A4+B4+C4) accounts for the proportion of the company's net assets | 127.08% | ||||||||
| Including： | |||||||||
| Balance of security for shareholders, actual controllers and their affiliates (D) | 0 | ||||||||
| Debt guarantee balance (E) provided directly or indirectly to the insured object with the asset-liability ratio exceeding 70% | 0 | ||||||||
| Amount secured in excess of 50% of net assets (F) | 0 | ||||||||
| Total amount of the above three guarantees (D+E+F) | 0 | ||||||||
| Explanations on possibly bearing joint and several liquidating responsibilities for undue guarantees ( If any) | None | ||||||||
| Explanations on external guarantee against regulated procedures(If any) | None | ||||||||
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
| The name of the contracting company | The name of the contracted company | Contract object | The date of signature of the contract | The book value of the assets involved in the contract (ten thousand）（If any） | The assessed value of the assets involved in the contract(ten thousand）（If any） | Name of the evaluation organization(If any） | The base date evaluation(If any) | Pricing principles | Bargain price(ten thousand） | Whether connected transaction(Y/N) | Incidence relation | The performance by the end of the term | The date of disclosure | Index |
| Sino Great Wall International Engineering Co., Ltd. | UPLLaos Co., Ltd. | Development project of the Jubilee Special Economic Zone in Vientiane, Laos | February 14,2018 | None | None | None | February 14,2018 | The market price | Us $30 million (RMB 19,0284 million, of which us $10 million in cash and us $20 million in constructio | No | Do not apply | Some design work has been completed, the construction team has entered the site, and the basic temporary | February 14,2018 | Please refer to the published on February 14, 2018(www.cninfo.com.cn) on the relevant announcement.(Announcement No.2018-025) |
| n cushion) | construction facilities have been |
XV. Social responsibilities1.Major environmental protectionThe Listed Company and its subsidiary whether belongs to the key sewage units released from environmental
protection departmentNo1. Fulfilling the Social responsibility of Precision Poverty Alleviation(1) Precise poverty alleviation planThe company has no precise social responsibility for poverty alleviation in theperiodand bas no follow-up planeither.
（2）Half-year poverty relieving summary（3）Information of the listed company’s annual work in targeted poverty alleviation（4）Subsequent targeted poverty alleviation program
NilXVI. Other material events
√ Applicable □Not applicable
On January 4, 2018, the China Securities Regulatory Commission's approval of the company's non-publicoffering of shares expired. Please refer to the published the relevant announcement published on Securities times,Hongkong Commercial Daily and www.cninfo.com.cn) on January 6, 2018.
XVII. Material events of subsidiaries
□ Applicable √ Not applicable
VI. Change of share capital and shareholding of Principal Shareholders
I. Changes in share capital1. Changes in share capital
In shares
| Before the change | Increase/decrease（+，-） | After the Change | |||||||
| Amount | Proportion | Share allotment | Bonus shares | Capitalization of common reserve fund | Other | Subtotal | Quantity | Proportion | |
| I. Share with conditional subscription | 681,305,436 | 40.12% | 218,475 | 218,475 | 681,523,911 | 40.13% | |||
| 3.Other domestic shares | 681,305,436 | 40.12% | 218,475 | 218,475 | 681,523,911 | 40.13% | |||
| Of which：Domestic legal person shares | 42,479,672 | 2.50% | 0 | 0 | 42,479,672 | 2.50% | |||
| Domestic natural person shares | 638,825,764 | 37.62% | 218,475 | 218,475 | 639,044,239 | 37.63% | |||
| II. Shares with unconditional subscription | 1,016,939,575 | 59.88% | -218,475 | -218,475 | 1,016,721,100 | 59.87% | |||
| 1.Common shares in RMB | 753,136,344 | 44.34% | -218,475 | -218,475 | 752,917,869 | 44.34% | |||
| .Foreign shares in domestic market | 263,803,231 | 15.54% | 0 | 0 | 263,803,231 | 15.53% | |||
| III. Total of capital shares | 1,698,245,011 | 100.00% | 0 | 0 | 1,698,245,011 | 100.00% | |||
Reasons for share changed:
□ Applicable √ Not applicable
Approval of Change of Shares
□ Applicable √ Not applicable
Ownership transfer of share changes
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable tocommon shareholders of Company in latest year and period
□ Applicable √ Not applicable
Other information necessary to disclose for the company or need to disclosed under requirement from securityregulators
□ Applicable √ Not applicable
2. Change of shares with limited sales condition
√ Applicable □Not applicable
In shares
| Shareholder Name | Initial Restricted Shares | Number of Unrestricted Shares This Term | Number of Increased Restricted Shares This Term | Restricted Shares in the End of the Term | Reason for Restricted Shares | Date of Restriction Removal |
| Chen Lue | 525,344,262 | 0 | 0 | 525,344,262 | The major asset restructuring and the issue of shares to purchase assets and raise matching funds | October 14,2018 |
| Chen Lue | 55,995,934 | 0 | 0 | 55,995,934 | The major asset restructuring and the issue of shares to purchase assets and raise matching funds | November 27,2018 |
| Chen Lue | 382,500 | 382,500 | 0 | 0 | Executive locking stock | Not applicable |
| He Feiyan | 54,800,458 | 0 | 0 | 54,800,458 | The major asset restructuring and the issue of shares to purchase assets and raise matching funds | October 14,2018 |
| He Sen | 1,637,435 | 0 | 0 | 1,637,435 | The major asset restructuring and the issue of | October 14,2018 |
| shares to purchase assets and raise matching funds | ||||||
| Jiutai Fund－Bank of Communications－Jiutai Huitong No.2 specific customer asset management plan | 42,479,672 | 0 | 0 | 42,479,672 | The major asset restructuring and the issue of shares to purchase assets and raise matching fund | November 27,2018 |
| Li Erlong | 619,050 | 0 | 0 | 619,050 | Executive locking stock | Not applicable |
| Yang Chunling | 46,125 | 0 | 0 | 46,125 | Executive locking stock | Not applicable |
| Liang Rong | 0 | 0 | 600,975 | 600,975 | Executive locking stock | Not applicable |
| Total | 681,305,436 | 382,500 | 600,975 | 681,523,911 | -- | -- |
II.Issuing and listing
□ Applicable √ Not applicable
III. Shareholders and shareholding
In Shares
| Total number of common shareholders at the end of the reporting period | 73,328 | Total number of preferred shareholders that had restored the voting right at the end of the reporting period (if any) (note 8) | 0 | |||||||
| Shareholding of shareholders holding more than 5% shares | ||||||||||
| Shareholders | Nature of shareholder | Proportion of shares held（%） | Number of shares held at period -end | Changes in reporting period | Amount of restricted shares held | Amount of un-restricted shares held | Number of share pledged/frozen | |||
| State of share | Amount | |||||||||
| Chen Lue | Domestic Natural person | 34.36% | 583,454,556 | 0 | 581,340,196 | 2,114,360 | Pledge | 583,454,556 |
| STYLE-SUCCESS LIMITED | Foreign legal person | 5.47% | 92,970,910 | 0 | 0 | 92,970,910 | ||
| Union Holdings Co., Ltd. | Domestic Non- State-owned legal person | 5.18% | 87,935,921 | 0 | 0 | 87,935,921 | ||
| He Feiyan | Domestic Natural person | 3.23% | 54,800,458 | 0 | 54,800,458 | 0 | Pledge | 54,000,000 |
| Jiutai Fund－Bank of Communications－Jiutai Huitong No.2 specific customer asset management plan | Other | 2.50% | 42,479,672 | 0 | 42,479,672 | 0 | ||
| Rich Crown Investment Co., Ltd. | Foreign legal person | 1.37% | 23,235,313 | 0 | 0 | 23,235,313 | ||
| Qinghai Heyi Industry Development Co., Ltd. | Domestic Non- State-owned legal person | 0.79% | 13,357,084 | 0 | 0 | 13,357,084 | Pledge | 13,357,000 |
| Zhang Xubao | Domestic Natural person | 0.65% | 11,015,100 | 3,148,900 | 0 | 11,015,100 | ||
| Huang Huaian | Domestic Natural person | 0.59% | 10,000,000 | 1,493,000 | 0 | 10,000,000 | ||
| Song Wenguang | Domestic Natural person | 0.50% | 8,575,981 | 7,255,981 | 0 | 8,575,981 | ||
| Strategy investors or general legal person becomes top 10 shareholders due to rights issued (if applicable)See Notes 3） | Nil | |||||||
| Explanation on associated relationship among the aforesaid shareholders | The largest shareholder of Mr. Chen Lue and the Fourth largest shareholder of Ms. He Feiyan aforesaid are persons acting in concern; The controlling shareholder of the above-mentioned third shareholder Shenzhen Union Holdings Co.,Ltd. And Sixth shareholder Rich Crown Investment Co., Ltd.. Is Union Development Group Ltd. whether | |||||||
| the other shareholders have associated relations are unknown. | |||
| Shareholding of top 10 shareholders of unrestricted shares | |||
| Name of the shareholder | Quantity of unrestricted shares held at the end of the reporting period | Share type | |
| Share type | Quantity | ||
| STYLE-SUCCESS LIMITED | 92,970,910 | Foreign shares placed in domestic exchange | 92,970,910 |
| Union Holdings Co., Ltd. | 87,935,921 | RMB Common shares | 87,935,921 |
| Rich Crown Investment Co., Ltd. | 23,235,313 | Foreign shares placed in domestic exchange | 23,235,313 |
| Qinghai Heyi Industry Development Co., Ltd. | 13,357,084 | RMB Common shares | 13,357,084 |
| Zhang Xubao | 11,015,100 | RMB Common shares | 11,015,100 |
| Huang Huaian | 10,000,000 | RMB Common shares | 10,000,000 |
| Song Wenguang | 8,575,981 | RMB Common shares | 8,575,981 |
| Li Guanping | 8,132,700 | RMB Common shares | 8,132,700 |
| Zheng Qianghui | 5,485,820 | RMB Common shares | 5,485,820 |
| Chen Lihong | 4,683,460 | RMB Common shares | 4,683,460 |
| Explanation on associated relationship or consistent action among the top 10 shareholders of non-restricted negotiable shares and that between the top 10 shareholders of non-restricted negotiable shares and top 10 shareholders | The controlling shareholder of the above-mentioned shareholder Shenzhen Union Holdings Ltd. and shareholder Rich Crown Investment Co., Ltd.. Is Union Development Group Ltd. | ||
| Notes to the shareholders involved in financing securities (if any)(See Notes 4) | Nil | ||
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a
buy-back agreement dealing in reporting period.
□ Yes √ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company
have no buy –back agreement dealing in reporting period.
IV. Change of the controlling shareholder or the actual 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 Executives
I. Change in shares held by directors, supervisors and senior executives
√ Applicable □Not applicable
| Name | Position | Office status | Shares held at the year-begin(share) | Amount of shares increased at the reporting period(share) | Amount of shares decreased at the reporting period(share) | Shares held at the year-ending（share） | Number of restricted stock granted at the year-begin . share) | Number of restricted stock granted at the reporting period(share) | Number of restricted stock granted at the year-ending(share) |
| Chen Lue | Chairman | In office | 583,454,556 | 0 | 0 | 583,454,556 | 0 | 0 | 0 |
| Li Erlong | Vice Chairman, Deputy GM | In office | 825,400 | 0 | 0 | 825,400 | 0 | 0 | 0 |
| Liang Rong | Vice Chairman, Deputy GM | In office | 0 | 801,300 | 0 | 801,300 | 0 | 0 | 0 |
| Yang Chunling | Secretary to the board of directors | In office | 61,500 | 0 | 0 | 61,500 | 0 | 0 | 0 |
| Total | 584,341,456 | 801,300 | 0 | 585,142,756 | 0 | 0 | 0 |
II. Change in shares held by directors, supervisors and senior executives
√ Applicable □Not applicable
| Name | Positions | Types | Date | Reason |
| Tian Wei | Director | Appointment | March 28,2018 | Elected as a non-independent director in the first Provisional shareholders’ general meeting of 2018 |
| Bai Bin | Director | Dimission | January 18,2018 | Resigned due to personal reasons |
| Dong Binggen | Chairman of the supervisory | Dimission | June 21,2018 | Resigned due to personal reasons |
| committee | ||||
| Fang Xianzhong | Chairman of the supervisory committee | Appointment | June 21,2018 | Elected as shareholder Representative Supervisor in the third Provisional shareholders’ general meeting of 2018 , The chairman of the supervisory committee was elected by the 21st meeting of seventh supervisory committee . |
IX. Corporate Bond
Whether the company has corporate bonds that have been publicly issued and listed on the stock exchange, and
not yet due or due butnot folly cashed on the approval date of annual reportNo
X. Financial Report
I. 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:RMB1.Consolidated Balance sheetPrepared by : Sino Great Wall Co., Ltd.
June 30,2018
| Items | Year-end balance | Year-beginning balance |
| Current asset： | ||
| Cash and bank balances | 1,374,597,109.50 | 1,604,973,916.12 |
| Settlement provision | ||
| Outgoing call loan | ||
| Financial assets measured at fair value with variations accounted into current income account | ||
| Derivative financial assets | ||
| Note receivable | 392,028,545.46 | 288,201,562.88 |
| Account receivable | 5,031,464,951.12 | 5,706,675,244.08 |
| Prepayments | 214,849,286.28 | 225,208,527.88 |
| Insurance receivable | ||
| Reinsurance receivable | ||
| Provisions of Reinsurance contracts receivable | ||
| Interest receivable | ||
| Dividend receivable | ||
| Other account receivable | 1,444,685,359.48 | 1,674,675,360.28 |
| Repurchasing of financial assets |
| Inventories | 745,455,718.17 | 556,839,325.50 |
| Assets held for sales | ||
| Non-current asset due in 1 year | ||
| Other current asset | 16,047,813.14 | 17,126,911.05 |
| Total of current assets | 9,219,128,783.15 | 10,073,700,847.79 |
| Non-current assets： | ||
| Loans and payment on other’s behalf disbursed | ||
| Disposable financial asset | 10,338,500.00 | 10,338,500.00 |
| Expired investment in possess | ||
| Long-term receivable | 16,151,975.94 | 14,328,557.82 |
| Long term share equity investment | ||
| Property investment | ||
| Fixed assets | 331,425,276.47 | 174,537,150.56 |
| Construction in progress | 707,700.59 | 4,968,590.96 |
| Engineering material | ||
| Fixed asset pending for disposal | ||
| Productive biological assets | ||
| Gas & petrol | ||
| Intangible assets | 170,804,965.85 | 127,524,445.00 |
| R & D petrol | ||
| Goodwill | 57,769,954.64 | 64,494,271.55 |
| Long-germ expenses to be amortized | 11,605,439.50 | 10,124,913.15 |
| Differed income tax asset | 117,065,718.40 | 118,233,337.36 |
| Other non-current asset | 1,090,567,331.91 | 1,069,594,572.11 |
| Total of non-current assets | 1,806,436,863.30 | 1,594,144,338.51 |
| Total of assets | 11,025,565,646.45 | 11,667,845,186.30 |
| Current liabilities | ||
| Short-term loans | 2,798,513,481.24 | 3,477,200,420.55 |
| Loan from Central Bank | ||
| Deposit received and hold for others | ||
| Call loan received | ||
| Financial liabilities measured at fair value with variations accounted into current income account |
| Derivative financial liabilities | ||
| Notes payable | 882,244,105.35 | 906,597,988.15 |
| Account payable | 1,226,462,217.35 | 1,719,579,087.62 |
| Advance payment | 129,051,847.05 | 146,379,852.67 |
| Selling of repurchased financial assets | ||
| Fees and commissions receivable | ||
| Employees’ wage payable | 48,918,732.49 | 21,911,542.07 |
| Tax payable | 464,390,232.27 | 357,445,477.71 |
| Interest payable | 1,776,077.61 | 16,105,263.85 |
| Dividend payable | ||
| Other account payable | 1,322,713,803.81 | 520,965,421.13 |
| Reinsurance fee payable | ||
| Insurance contract provision | ||
| Entrusted trading of securities | ||
| Entrusted selling of securities | ||
| Liabilities held for sales | ||
| Non-current liability due in 1 year | 487,657,918.14 | 820,422,471.45 |
| Other current liability | 121,529,600.95 | |
| Total of current liability | 7,361,728,415.31 | 8,108,137,126.15 |
| Non-current liabilities： | ||
| Long-term loan | 873,089,164.49 | 843,092,471.02 |
| Bond payable | 345,000,000.00 | 345,000,000.00 |
| Including：preferred stock | ||
| Sustainable debt | ||
| Long-term payable | 63,606,067.75 | 81,945,567.86 |
| Long-term payable employee’s remuneration | ||
| Special payable | ||
| Expected liabilities | 2,958,723.15 | 3,414,189.15 |
| Deferred income | 5,999,151.77 | |
| Deferred income tax liability | 51,894,878.61 | 26,088,961.71 |
| Other non-current liabilities | ||
| Total non-current liabilities | 1,342,547,985.77 | 1,299,541,189.74 |
| Total of liability | 8,704,276,401.08 | 9,407,678,315.89 |
| Owners’ equity | ||
| Share capital | 1,698,245,011.00 | 1,698,245,011.00 |
| Other equity instruments | ||
| Including：preferred stock | ||
| Sustainable debt | ||
| Capital reserves | -1,299,349,701.74 | -1,299,349,701.74 |
| Less：Shares in stock | ||
| Other comprehensive income | 595,233.77 | 858,242.13 |
| Special reserves | 70,539,291.65 | 164,231,078.18 |
| Surplus reserves | 84,394,441.23 | 84,394,441.23 |
| Common risk provision | ||
| Undistributed profit | 1,651,166,244.75 | 1,503,103,396.72 |
| Total of owner’s equity belong to the parent company | 2,205,590,520.66 | 2,151,482,467.52 |
| Minority shareholders’ equity | 115,698,724.71 | 108,684,402.89 |
| Total of owners’ equity | 2,321,289,245.37 | 2,260,166,870.41 |
| Total of liabilities and owners’ equity | 11,025,565,646.45 | 11,667,845,186.30 |
Legal Representative: Chen Lue
Person in charge of accounting：Tang Xianyong
Accounting Dept Leader: Tang Xianyong2. Balance sheet of Parent Company
In RMB
| Items | Year-end balance | Year-beginning balance |
| Current asset： | ||
| Cash and bank balances | 343,246,908.78 | 407,959,304.60 |
| Financial assets measured at fair value with variations accounted into current income account | ||
| Derivative financial assets | ||
| Note receivable | ||
| Account receivable | ||
| Prepayments | 3,865,500.01 |
| Interest receivable | ||
| Dividend receivable | 100,000,000.00 | 100,000,000.00 |
| Other account receivable | 2,891,108,093.08 | 3,590,967,483.22 |
| Inventories | ||
| Assets held for sales | ||
| Non-current asset due in 1 year | ||
| Other current asset | 2,175,646.45 | |
| Total of current assets | 3,334,355,001.86 | 4,104,967,934.28 |
| Non-current assets： | ||
| Disposable financial asset | ||
| Expired investment in possess | ||
| Long-term receivable | ||
| Long term share equity investment | 3,311,211,536.66 | 3,311,211,536.66 |
| Property investment | ||
| Fixed assets | 44,308.72 | 52,246.48 |
| Construction in progress | ||
| Engineering material | ||
| Fixed asset disposal | ||
| Production physical assets | ||
| Gas & petrol | ||
| Intangible assets | ||
| R & D petrol | ||
| Goodwill | ||
| Long-germ expenses to be amortized | 2,216,225.79 | 168,284.84 |
| Deferred income tax asset | ||
| Other non-current asset | 627,328,020.00 | 550,524,570.00 |
| Total of non-current assets | 3,940,800,091.17 | 3,861,956,637.98 |
| Total of assets | 7,275,155,093.03 | 7,966,924,572.26 |
| Current liabilities | ||
| Short-term loans | 1,581,526,356.46 | 2,287,870,000.00 |
| Financial liabilities measured at fair value with variations accounted into current income account | ||
| Derivative financial liabilities | ||
| Bill payable | 542,227,578.11 | 537,227,578.11 |
| Account payable | ||
| Advance payment | ||
| Employees’ wage payable | 4,549,255.24 | 1,580,335.12 |
| Tax payable | 94,559,237.00 | 97,124,633.81 |
| Interest payable | 13,002,236.21 | |
| Dividend payable | ||
| Other account payable | 733,968,463.15 | 379,420,427.54 |
| Liabilities held for sales | ||
| Non-current liability due in 1 year | 410,000,000.00 | 700,000,000.00 |
| Other current liability | ||
| Total of current liability | 3,366,830,889.96 | 4,016,225,210.79 |
| Non-current liabilities： | ||
| Long-term loan | 766,250,000.00 | 800,000,000.00 |
| Bond payable | 100,000,000.00 | 100,000,000.00 |
| Including：preferred stock | ||
| Sustainable debt | ||
| Long-term payable | ||
| Employees’ wage payable | ||
| Special payable | ||
| Expected liabilities | ||
| Deferred income | ||
| Deferred income tax liability | ||
| Other non-current liabilities | ||
| Total of Non-current liabilities | 866,250,000.00 | 900,000,000.00 |
| Total of liability | 4,233,080,889.96 | 4,916,225,210.79 |
| Owners’ equity | ||
| Share capital | 1,698,245,011.00 | 1,698,245,011.00 |
| Other equity instrument | ||
| Including：preferred stock | ||
| Sustainable debt | ||
| Capital reserves | 1,237,956,472.37 | 1,237,956,472.37 |
| Less：Shares in stock | ||
| Other comprehensive income | ||
| Special reserves |
| Surplus reserves | 26,309,287.00 | 26,309,287.00 |
| Undistributed profit | 79,563,432.70 | 88,188,591.10 |
| Total of owners’ equity | 3,042,074,203.07 | 3,050,699,361.47 |
| Total of liabilities and owners’ equity | 7,275,155,093.03 | 7,966,924,572.26 |
3.Consolidated Income Statement
In RMB
| Items | Report period | Same period of the previous year |
| I. Income from the key business | 1,586,971,575.24 | 3,025,082,356.80 |
| Incl：Business income | 1,586,971,575.24 | 3,025,082,356.80 |
| Interest income | ||
| Insurance fee earned | ||
| Fee and commission received | ||
| II. Total business cost | 1,608,871,904.01 | 2,693,735,290.45 |
| Incl：Business cost | 1,312,212,102.46 | 2,319,598,615.76 |
| Interest expense | ||
| Fee and commission paid | ||
| Insurance discharge payment | ||
| Net claim amount paid | ||
| Insurance policy dividend paid | ||
| Insurance policy dividend paid | ||
| Reinsurance expenses | ||
| Business tax and surcharge | 2,106,518.05 | 1,942,587.29 |
| Sales expense | 16,521,622.08 | 18,094,586.39 |
| Administrative expense | 127,907,861.56 | 125,176,758.15 |
| Financial expenses | 145,939,925.19 | 139,811,809.59 |
| Asset impairment loss | 4,183,874.66 | 89,110,933.27 |
| Add：Gains from change of fir value （“-”for loss） | ||
| Investment gain（“-”for loss） | 5,171,892.51 | |
| Incl: investment gains from affiliates | ||
| Gains from currency exchange（“-”for loss） | ||
| Assets disposal income |
| Other income | ||
| III. Operational profit（“-”for loss） | -16,728,436.26 | 331,347,066.35 |
| Add ：Non-operational income | 179,220,495.20 | 4,444,624.78 |
| Less：Non business expenses | 636,300.61 | 93,122.33 |
| IV. Total profit(“-”for loss) | 161,855,758.33 | 335,698,568.80 |
| Less：Income tax expenses | 18,790,236.79 | 56,227,138.25 |
| V. Net profit | 143,065,521.54 | 279,471,430.55 |
| 1.Net continuing operating profit | ||
| 2.Termination of operating net profit | ||
| Net profit attributable to the owners of parent company | 143,999,455.72 | 268,606,450.03 |
| Minority shareholders’ equity | -933,934.18 | 10,864,980.52 |
| VI. Other comprehensive income | -263,008.36 | |
| Net of profit of other comprehensive income attributable to owners of the parent company. | -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. | ||
| （II） Other comprehensive income that will be reclassified into profit or loss. | -263,008.36 | |
| 1.Other comprehensive income under the equity method investee can be reclassified into profit or loss. | ||
| 2.Gains and losses from changes in fair value available for sale financial assets | ||
| 3.Held-to-maturity investments reclassified to gains and losses of available for sale financial assets | ||
| 4.The effective portion of cash flow hedges and losses |
| 5.Translation differences in currency financial statements | -263,008.36 | |
| 6.Other | ||
| Net of profit of other comprehensive income attributable to Minority shareholders’ equity | ||
| VII. Total comprehensive income | 142,802,513.18 | 279,471,430.55 |
| Total comprehensive income attributable to the owner of the parent company | 143,736,447.36 | 268,606,450.03 |
| Total comprehensive income attributable minority shareholders | -933,934.18 | 10,864,980.52 |
| VIII. Earnings per share | ||
| （I）Basic earnings per share | 0.0848 | 0.16 |
| (II)Diluted earnings per share | 0.0848 | 0.16 |
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 0
Legal Representative: Chen Lue
Person in charge of accounting：Tang Xianyong
Accounting Dept Leader: Tang Xianyong4. Income statement of the Parent Company
In RMB
| Items | Report period | Same period of the previous year |
| I. Income from the key business | 117,362.07 | 111,018.01 |
| Incl：Business cost | 1,482.50 | |
| Business tax and surcharge | 244,690.66 | |
| Sales expense | 994,445.50 | |
| Administrative expense | 17,904,118.30 | 10,577,092.07 |
| Financial expenses | 81,405,456.80 | 37,367,434.56 |
| Asset impairment loss | 8,438,499.87 | -57,423.85 |
| Add：Gains from change of fir value （“-”for loss） | ||
| Investment gain（“-”for loss） | ||
| Incl: investment gains from affiliates | ||
| Assets disposal income | ||
| Other income | ||
| II. Operational profit（“-”for loss） | -108,625,158.40 | -48,022,257.93 |
| Add ：Non-operational income | 100,000,000.00 | |
| Less：Non business expenses | ||
| III.Total profit(“-”for loss) | -8,625,158.40 | -48,022,257.93 |
| Less：Income tax expenses | ||
| IV. Net profit（“-”for net loss） | -8,625,158.40 | -48,022,257.93 |
| 1.Net continuing operating profit | ||
| 2.Termination of operating net profit | ||
| V.Net of profit 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. | ||
| （II）Other comprehensive income that will be reclassified into profit or loss. | ||
| 1.Other comprehensive income under the equity method investee can be re |
| classified into profit or loss. | ||
| 2.Gains and losses from changes in fair value available for sale financial assets | ||
| 3.Held-to-maturity investments reclassified to gains and losses of available for sale financial assets | ||
| 4.The effective portion of cash flow hedges and losses | ||
| 5.Translation differences in currency financial statements | ||
| 6.Other | ||
| VI. Total comprehensive income | -8,625,158.40 | -48,022,257.93 |
| VII. Earnings per share： | ||
| （I）Basic earnings per share | ||
| (II)Diluted earnings per share |
5. Consolidated Cash flow statement
In RMB
| Items | Report period | Same period of the previous year |
| I.Cash flows from operating activities | ||
| Cash received from sales of goods or rending of services | 2,448,493,180.76 | 1,722,890,541.67 |
| 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 |
| Net increase of trade financial asset disposal | ||
| Cash received as interest, processing fee and commission | ||
| Net increase of inter-bank fund received | ||
| Net increase of repurchasing business | ||
| Tax returned | 3,369,607.31 | 10,169,861.98 |
| Other cash received from business operation | 3,596,297,555.25 | 2,967,473,297.47 |
| Sub-total of cash inflow | 6,048,160,343.32 | 4,700,533,701.12 |
| Cash paid for purchasing of merchandise and services | 2,123,943,719.36 | 1,452,656,023.95 |
| Net increase of client trade and advance | ||
| Net increase of savings n central bank and brother company | ||
| Cash paid for original contract claim | ||
| Cash paid for interest, processing fee and commission | ||
| Cash paid for policy dividend | ||
| Cash paid to staffs or paid for staffs | 172,389,891.23 | 181,877,746.19 |
| Taxes paid | 75,707,443.61 | 157,274,185.63 |
| Other cash paid for business activities | 2,577,954,923.49 | 3,444,723,325.54 |
| Sub-total of cash outflow from business activities | 4,949,995,977.69 | 5,236,531,281.31 |
| Cash flow generated by business operation, net | 1,098,164,365.63 | -535,997,580.19 |
| II. Cash flow generated by investing | ||
| Cash received from investment retrieving | ||
| Cash received as investment gains | ||
| Net cash retrieved from disposal of fixed assets, intangible assets, and other long-term assets | 432,865.55 | |
| Net cash received from disposal of subsidiaries or other operational units | 1,062,398.45 |
| Other investment-related cash received | ||
| Sub-total of cash inflow due to investment activities | 1,495,264.00 | |
| Cash paid for construction of fixed assets, intangible assets and other long-term assets | 12,179,377.50 | 18,675,205.60 |
| Cash paid as investment | 226,429,730.78 | 246,074,074.84 |
| Net increase of loan against pledge | ||
| Net cash received from subsidiaries and other operational units | -35,622,112.04 | 470,000.00 |
| Other cash paid for investment activities | ||
| Sub-total of cash outflow due to investment activities | 202,986,996.24 | 265,219,280.44 |
| Net cash flow generated by investment | -201,491,732.24 | -265,219,280.44 |
| III.Cash flow generated by financing | ||
| Cash received as investment | 490,000.00 | 2,753,197,500.00 |
| Incl: Cash received as investment from minor shareholders | ||
| Cash received as loans | 1,170,509,245.00 | |
| Cash received from bond placing | ||
| Other financing –related ash received | ||
| Sub-total of cash inflow from financing activities | 1,170,999,245.00 | 2,753,197,500.00 |
| Cash to repay debts | 2,282,455,158.52 | 1,349,438,184.19 |
| Cash paid as dividend, profit, or interests | 169,918,204.82 | 95,084,766.20 |
| Incl: Dividend and profit paid by subsidiaries to minor shareholders | ||
| Other cash paid for financing activities | 60,833.33 | |
| Sub-total of cash outflow due to financing activities | 2,452,373,363.34 | 1,444,583,783.72 |
| Net cash flow generated by financing | -1,281,374,118.34 | 1,308,613,716.28 |
| IV. Influence of exchange rate | -4,502,184.53 | -4,628,437.71 |
| alternation on cash and cash equivalents | ||
| V.Net increase of cash and cash equivalents | -389,203,669.48 | 502,768,417.94 |
| Add: balance of cash and cash equivalents at the beginning of term | 647,222,590.49 | 943,705,322.41 |
| VI ..Balance of cash and cash equivalents at the end of term | 258,018,921.01 | 1,446,473,740.35 |
6. Cash Flow Statement of the Parent Company
In RMB
| Items | Amount in this period | Amount in last period |
| I.Cash flows from operating activities | ||
| Cash received from sales of goods or rending of services | 128,210.00 | |
| Tax returned | ||
| Other cash received from business operation | 3,329,634,571.90 | 2,072,983,202.47 |
| Sub-total of cash inflow | 3,329,634,571.90 | 2,073,111,412.47 |
| Cash paid for purchasing of merchandise and services | ||
| Cash paid to staffs or paid for staffs | 626,668.10 | 219,753.50 |
| Taxes paid | 1,012,217.08 | 147,356.70 |
| Other cash paid for business activities | 2,256,119,534.57 | 2,697,856,678.81 |
| Sub-total of cash outflow from business activities | 2,257,758,419.75 | 2,698,223,789.01 |
| Cash flow generated by business operation, net | 1,071,876,152.15 | -625,112,376.54 |
| 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 | 65,440.00 | |
| Cash paid as investment | 13,000,000.00 | 135,075,100.00 |
| Net cash received from subsidiaries and other operational units | 5,000,000.00 | |
| Other cash paid for investment activities | ||
| Sub-total of cash outflow due to investment activities | 13,000,000.00 | 140,140,540.00 |
| Net cash flow generated by investment | -13,000,000.00 | -140,140,540.00 |
| III.Cash flow generated by financing | ||
| Cash received as investment | ||
| Cash received as loans | 755,650,000.00 | 1,908,030,000.00 |
| Cash received from bond placing | ||
| Other financing –related ash received | ||
| Sub-total of cash inflow from financing activities | 1,690,650,010.00 | 1,908,030,000.00 |
| Cash to repay debts | 1,783,743,643.54 | 820,000,000.00 |
| Cash paid as dividend, profit, or interests | 91,415,896.63 | 70,346,435.20 |
| Other cash paid for financing activities | 60,833.33 | |
| Sub-total of cash outflow due to financing activities | 1,875,159,540.17 | 890,407,268.53 |
| Net cash flow generated by financing | -1,119,509,540.17 | 1,017,622,731.47 |
| IV. Influence of exchange rate alternation on cash and cash equivalents | 0.00 | |
| V.Net increase of cash and cash equivalents | -60,633,388.02 | 252,369,814.93 |
| Add: balance of cash and cash equivalents at the beginning of term | 99,547,899.86 | 168,691,344.34 |
| VI ..Balance of cash and cash equivalents at the end of term | 38,914,511.84 | 421,061,159.27 |
7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RMB
| Items | Amount in this period | ||||||||||||
| Owner’s equity Attributable to the Parent Company | Minor shareholders’ equity | Total of owners’ equity | |||||||||||
| Share Capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Common risk provision | Retained profits | |||||
| preferred stock | Sustainable debt | Other | |||||||||||
| I. Balance at the end of last year | 1,698,245,011.00 | -1,299,349,701.74 | 858,242.13 | 164,231,078.18 | 84,394,441.23 | 1,503,103,396.72 | 108,684,402.89 | 2,260,166,870.41 | |||||
| Add: Change of accounting policy | |||||||||||||
| Correcting of previous errors | |||||||||||||
| Merger of entities under common control | |||||||||||||
| Other | |||||||||||||
| II.Balance at the beginning of current year | 1,698,245,011.00 | -1,299,349,701.74 | 858,242.13 | 164,231,078.18 | 84,394,441.23 | 1,503,103,396.72 | 108,684,402.89 | 2,260,166,870.41 | |||||
| III.Changed in the current year | -263,008.36 | -93,691,786.53 | 148,062,848.03 | 7,014,321.82 | 61,122,374.96 | ||||||||
| （1）Total comprehensive income | -263,008.36 | 143,999,455.72 | -933,934.18 | 142,802,513.18 | |||||||||
| （II）Investment or decreasing of capital by owners | 4,063,392.31 | 7,948,256.00 | 12,011,648.31 | ||||||||||
| 1．Ordinary Shares invested by shareholders | |||||||||||||
| 2．Holders of other equity instruments invested capital | |||||||||||||
| 3．Amount of shares paid and accounted as owners’ equity | |||||||||||||
| 4．Other | 4,063,392.31 | 7,948,256.00 | 12,011,648.31 | ||||||||||
| （III）Profit allotment | |||||||||||||
| 1.Providing of surplus reserves | |||||||||||||
| 2.Providing of common risk provisions | |||||||||||||
| 3．Allotment to the owners (or shareholders) | |||||||||||||
| 4．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. Other | |||||||||||||
| (V). Special reserves | -93,691,786.53 | -93,691,786.53 | |||||||||||
| 1. Provided this year | 7,271,059.70 | 7,271,059.70 | |||||||||||
| 2．Used this term | -100,962,846.23 | -100,962,846.23 | |||||||||||
| （VI）Other | |||||||||||||
| IV. Balance at the end of this term | 1,698,245,011.00 | -1,299,349,701.74 | 595,233.77 | 70,539,291.65 | 84,394,441.23 | 1,651,166,244.75 | 115,698,724.71 | 2,321,289,245.37 |
Amount in last year
In RMB
| Items | Amount in last year | ||||||||||||
| Owner’s equity Attributable to the Parent Company | Minor shareholders’ equity | Total of owners’ equity | |||||||||||
| Share Capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Common risk provision | Retained profits | |||||
| preferred stock | Sustainable debt | Other | |||||||||||
| I.Balance at the end of last year | 1,698,245,011.00 | -1,299,349,701.74 | 65,687,868.14 | 84,394,441.23 | 1,228,970,498.86 | 52,534,755.10 | 1,830,482,872.59 | ||||||
| Add: Change of accounting policy | |||||||||||||
| Correcting of previous errors | |||||||||||||
| Merger of entities under | |||||||||||||
| common control | |||||||||||||
| Other | |||||||||||||
| II.Balance at the beginning of current year | 1,698,245,011.00 | -1,299,349,701.74 | 65,687,868.14 | 84,394,441.23 | 1,228,970,498.86 | 52,534,755.10 | 1,830,482,872.59 | ||||||
| III.Changed in the current year | -4,222,250.95 | 16,140,019.54 | 166,711,749.37 | 13,908,372.83 | 192,537,890.79 | ||||||||
| （1）Total comprehensive income | 268,606,450.03 | 10,864,980.52 | 279,471,430.55 | ||||||||||
| （II）Investment or decreasing of capital by owners | -4,222,250.95 | 3,043,392.31 | -1,178,858.64 | ||||||||||
| 1．Ordinary Shares invested by shareholders | |||||||||||||
| 2．Holders of other equity instruments invested capital | |||||||||||||
| 3．Allotment to the owners (or shareholders) | |||||||||||||
| 4．Other | -4,222,250.95 | 3,043,392.31 | 1,178,858.64 | ||||||||||
| (IV) Internal transferring of owners’ equity | -101,894,700.66 | -101,894,700.66 | |||||||||||
| 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. | -101,894,700.66 | -101,894,700.66 | |||||||||||
| 4. Other | |||||||||||||
| (VI )Special reserves | |||||||||||||
| 1. Provided this year | |||||||||||||
| 2．Used this term | |||||||||||||
| （VII）Other | |||||||||||||
| IV. Balance at the end of this term | |||||||||||||
| (V) Special reserves | 16,140,019.54 | 16,140,019.54 | |||||||||||
| 1. Provided this year | 35,597,306.04 | 35,597,306.04 | |||||||||||
| 2．Used this term | 19,457,286.50 | 19,457,286.50 | |||||||||||
| （VI）Other | |||||||||||||
| IV. Balance at the end of this term | 1,698,245,011.00 | -1,303,571,952.69 | 81,827,887.68 | 84,394,441.23 | 1,395,682,248.23 | 66,443,127.93 | 2,023,020,763.38 |
8.Statement of change in owner’s Equity of the Parent Company
Amount in this period
In RMB
| Items | Amount in this period | ||||||||||
| Share Capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Surplus reserves | Common risk provision | Retained profits | Total of owners’ equity | |||
| preferred stock | Sustainable debt | Other | |||||||||
| I.Balance at the end of last year | 1,698,245,011.00 | 1,237,956,472.37 | 26,309,287.00 | 88,188,591.10 | 3,050,699,361.47 | ||||||
| Add: Change of accounting policy | |||||||||||
| Correcting of previous errors | |||||||||||
| Other | |||||||||||
| II.Balance at the beginning of current year | 1,698,245,011.00 | 1,237,956,472.37 | 26,309,287.00 | 88,188,591.10 | 3,050,699,361.47 | ||||||
| III.Changed in the current year | -8,625,158.40 | -8,625,158.40 | |||||||||
| （I）Total comprehensive income | -8,625,158.40 | -8,625,158.40 | |||||||||
| (II) Investment or decreasing of capital by owners | |||||||||||
| 1．Ordinary Shares invested by shareholders | |||||||||||
| 2．Holders of other equity instruments invested capital | |||||||||||
| 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. Other | |||||||||||
| (V) Special reserves | |||||||||||
| 1. Provided this year | |||||||||||
| 2．Used this term | |||||||||||
| （VI）Other | |||||||||||
| IV. Balance at the end of this term | 1,698,245,011.00 | 1,237,956,472.37 | 26,309,287.00 | 79,563,432.70 | 3,042,074,203.07 |
Amount in last year
In RMB
| Items | Amount in last year | ||||||||||
| Share Capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Surplus reserves | Common risk provision | Retained profits | Total of owners’ equity | |||
| preferred stock | Sustainable debt | Other | |||||||||
| I.Balance at the end of last year | 1,698,245,011.00 | 1,237,956,472.37 | 26,309,287.00 | 242,353,634.55 | 3,204,864,404.92 | ||||||
| Add: Change of accounting policy | |||||||||||
| Correcting of previous errors | |||||||||||
| Other | |||||||||||
| II.Balance at the beginning of current year | 1,698,245,011.00 | 1,237,956,472.37 | 26,309,287.00 | 242,353,634.55 | 3,204,864,404.92 | ||||||
| III.Changed in the current year | -149,916,958.59 | -149,916,958.59 | |||||||||
| （I）Total comprehensive income | -48,022,257.93 | -48,022,257.93 | |||||||||
| (II) Investment or decreasing of capital by owners | |||||||||||
| 1．Ordinary Shares invested by shareholders | |||||||||||
| 2．Holders of other equity instruments invested capital | |||||||||||
| 3.Amount of shares paid and accounted as owners’ equity | |||||||||||
| 4．Other | |||||||||||
| （III）Profit allotment | -101,894,700.66 | -101,894,700.66 | |||||||||
| 1.Providing of surplus reserves | |||||||||||
| 2．Allotment to the owners (or shareholders) | -101,894,700.66 | -101,894,700.66 | |||||||||
| 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. Other | |||||||||||
| (V) Special reserves | |||||||||||
| 1. Provided this year | |||||||||||
| 2．Used this term | |||||||||||
| （VI）Other | |||||||||||
| IV. Balance at the end of this term | 1,698,245,011.00 | 1,237,956,472.37 | 26,309,287.00 | 92,436,675.96 | 3,054,947,446.33 |
III. Basic Information of the CompanySino Great Wall Co., Ltd. (hereinafter referred to as the "Company" or "Sino Great Wall") is formerly known as
Shenzhen Victor Onward Textile Industrial Company Limited which is formerly known as Xinnan Printing andDyeing Factory Co., Ltd.. Established in 1980, Xinnan Printing and Dyeing Factory Co., Ltd. is the first whollyforeign-owned enterprise in Shenzhen. In April 1984, Xinnan Printing and Dyeing Factory Co., Ltd. was changedinto a foreign joint venture and was renamed Shenzhen Victor Onward Printing and Dyeing Co., Ltd.. OnNovember 19, 1991, approved by the Government of Shenzhen City, Shenzhen Victor Onward Printing andDyeing Co., Ltd. was restructured into a joint stock limited company and was renamed Shenzhen Victor OnwardTextile Industrial Company Limited.
Domestic listed RMB ordinary shares ("A" shares; stock code: 000018) and overseas-listed foreign investmentshares ("B" shares; stock code: 200018) issued by the Company were listed for trading on the Shenzhen StockExchange in 1992.On July 23, 2015, approved by the China Securities Regulatory Commission under the Official Reply toApproving Shenzhen Victor Onward Textile Industrial Company Limited to Make Major Assets Restructuring andIssue Shares to Chen Lue and Other Shareholders to Purchase Assets and Raise Supporting Funds (Z.J.X.K. [2015]No.1774), the Company issued 251,849,593 shares to Chen Lue and other 167shareholders to purchase 100% ofequities of Sino Great Wall International Engineering Co., Ltd. held by them and issued to them 25,914,633
non-public offering shares, which raised funds of RMB 254,999,988.72.
As at September 24, 2015, equities of the listed company were changed to be registered in the name of theCompany. Both parties fully completed the transfer of equities and the relevant formalities of industrial andcommercial registration of changes, so the Company already owned 100% of equities in the listed company.Meanwhile, according to the Confirmation on Delivery of Exchange-Out Assets, as at the date of delivery (namelyJuly 31, 2015), all assets and liabilities of the Company had been exchanged out. On September 24, 2015,
Shenzhen Branch of the China Securities Depository and Clearing Corporation Li mited had completed the
relevant securities registration formalities for the above new shares.
On July 29, 2015, the listed company received the new registered capital of RMB 251,849,593 paid by all theshareholders of Sino Great Wall. Ruihua Certified Public Accountants issued the Verification Report (R.H.Y.Z.[2015] No.48250011) on July 30, 2015. Registered capital after the change was RMB 420,991,949 and sharecapital RMB 420,991,949. On December 4, 2015, Shenzhen Victor Onward Textile Industrial Company Limited.was renamed Sino Great Wall Co., Ltd..
At the Company's general meeting of shareholders held on May 6, 2016, the 2015 Plan of Conversion of CapitalReserves into Share Capital was adopted. The detailed plan was: to increase capital reserves to all the shareholderswith 28 shares for 10 shares based on 446,906,582 shares in total as at December 31, 2015 and to increase1,251,338,429 shares in total. After the increase, total share capital of the Company was increased to1,698,245,011 shares.
At the Company's general meeting of shareholders held on May 6, 2016, the 2015 Plan of Conversion ofCapital Reserves into Share Capital was adopted. The detailed plan was: to increase capital reserves to all theshareholders with 28 shares for 10 shares based on 446,906,582 shares in total as at December 31, 2015 and toincrease 1,251,338,429 shares in total. After the increase, total share capital of the Company was increased to1,698,245,011 shares.
\As at December 31, 2017, total share capital of the Company was 1,698,245,011 shares, in which there were
1,434,441,780 circulating A shares and 263,803,231 circulating B shares. Chen Lue who holds 582,944,556 Ashares, accounting for 34.33% of the total share capital, is the Company's controlling shareholder and actualcontroller.Registered address of the Company: No.26 Kuipeng Road, Baishi Gang, Kuichong Street, Dapeng New District,Shenzhen. Legal representative: Chen Lue. The Company falls under textile printing and dyeing industry. TheCompany mainly engages in dyeing and printing production, processing and sales of all kinds of pure cotton, purelinen, polyester cotton, ramie cotton, high-grade blended fabrics and finished garments.
The financial statements have been approved by the Board of Directors on August 31,2018.As at June 30, 2018, subsidiaries within the scope of the consolidated financial statements of the Companyare as follows:
| Invested units |
| Changzhi Shenzhou Laodingshan Industrial Co., Ltd. |
| Xiangfen County Taoshan Construction Co., Ltd. |
| Sino Great Wall (Xihua) Economic Development Zone Investment Co., Ltd. |
| Liupanshui Central People‘s Hospital Investment Co., Ltd. |
| Sino Zhigu Industrial (Yueyang) Co., Ltd. |
| Sino Great Wall Guangxia (Wuhan) Medical Development Co., Ltd. |
| Sino Great Wall Infrastructure Investment Co., Ltd. |
Sino Great Wall Medical Investment Management Co., Ltd.Sino Great Wall International Engineering Co., Ltd.
| Sino Great Wall International Engineering Co., Ltd. |
| Fujian Sino Great Wall Mingyihui Medical Investment Co., Ltd. |
| Sino Great Wall Medical Investment (Hubei) Co., Ltd. |
| Hubei Yuanyaotong Supply Chain Co., Ltd. |
| Sino Great Wall Medical Management (Inner Mongolia) Co., Ltd. |
| Sino Great Wall Health Management (Jiangsu) Co., Ltd. |
| Sino Great Wall New Energy (Beijing) Co., Ltd. |
| Wu‘an Juhe Photovoltaic Power Co., Ltd. |
| Shanghai Lingrui International Trading Co., Ltd. |
| Shenzhen Hongtulve Industrial Co., Ltd. |
| Guangzhou Herabenna Interior Design Co., Ltd. |
| Sino Great Wall Southwest Engineering Co., Ltd. |
| Sino Great Wall Southwest Science and Technology Co., Ltd. |
| Sino Great Wall Southwest Commercial and Trading Co., Ltd. |
| Sino Great Wall Southwest Engineering Designn Co., Ltd. |
| Shenzhen Yatian Decoration Design Engineering Co., Ltd. |
| Sino Great Wall Decoration and Design Co., Ltd. |
| Suzhou Lvbang Wood Industry Technology Co., Ltd. |
| Huichang County Zhongcheng Construction Engineering Co., Ltd. |
| Sino Great Wall Zhihui Housing Property (Zhanjiang) Co., Ltd. |
| Great Wall Biaodian Energy Co., Ltd. |
| Kunming Sino Forest Industry Development Co., Ltd. |
| Sino Great Wall Development (Hengqin) Co., Ltd. |
| Sino Great Wall Construction Construction Co., Ltd. |
| Sino Great Wall Real Estate (Hubei) Co., Ltd. |
| SGW America LLC |
| Sino Great Wall Group Co.,Limited |
| Far eastern international engineering company,LLC |
| Sino Great Wall(Philippines) International Corporation |
| Sino Wai Man International Engineering Limited |
| Sino Great Wall (HK) Property Co., Limited |
| SGW HPEngineeringConstructionSDN.BHD（Malaysia） |
| SGW VENTURES SDN.BHD. |
| SGW CONSTRUCTION (LANGKAWI) SDN.BHD. |
| Alor Vista Development Sdn Bhd |
| SINO GREAT WALL GENERAL TRADING & CONTRACTING CO.LTD(Kuwait Co.) |
| Shenzhou Changcheng（Lao）Co.,Ltd |
| Sino Great Wall Group （UK）Co.,Limited |
| Sino Great Wall International Engineering( MM ) Co.,Ltd |
Sino Great Wall International Engineering Co.,Ltd(Maldives Co.)Inrich Me Engineering Co,.Ltd (HK)
| Inrich Me Engineering Co,.Ltd (HK) |
| SINO GREAT WALL INTERNATIONAL ENGINEERING(MACAU) CO.,LIMITED |
| Sino Great WallInternationalEngineering(Thailand) Co.,Ltd. |
| Sino Great Wall International Engineering(CNMI) Co.,LLC. |
| SINO GREAT WALL（USA）.INC |
| PT.SINO GREAT WALL INVESTMENT INDONESIA |
| PT.SINO GREAT WALL CONSTRUCTION INDONESIA |
| Acura Kliniken Baden-Baden GmbH |
IV. Basis for the preparation of financial statements1.Basis for the 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 Business
Enterprises – Basic Rules, various detailed accounting rules, Guidelines for Application of Accounting Standards
for Business Enterprises, Interpretation of Accounting Standards for Business Enterprises and other relevant
regulations issued by the Ministry of Finance (hereinafter jointly referred to as ―Accounting Standards forBusiness Enterprises‖), as well as the disclosure provisions of the Preparation Rules for Information Disclosure byCompanies Offering Securities to the Public No.15 – General Provisions on Financial Report issued by China
Securities Regulatory Commission.2. Continuous operation.The Company since 12 months after the reporting period does not exist on the company's continued viability of si
gnificant concern events or circumstances.
V. Significant accounting policies and accounting estimatesSpecific accounting policies and accounting estimates tips:
Nil
1. Statement on the Accounting Standard Followed by the CompanyThe financial statements prepared by the Company comply with the requirements of corporate accountingstandards. They truly and completely reflect the financial situations, operating results, equity changes and cashflow, and other relevant information of the company.2.Fiscal YearThe Company adopts the Gregorian calendar year commencing on January 1 and ending on December 31 as thefiscal year.
3.Operating cycleThe Company has an operating cycle of 12 months.
4. Functional currency
The Company adopts RMB as recording currency.
5. Accounting treatment methods of business combinations under common control and not under commoncontrol
Business combinations under common control: The assets and liabilities acquired by the Company in businesscombinations are measured at the book value of assets and liabilities of the combinee (including the goodwillarising from the acquisition of the combinee by the ultimate controller) in the consolidated financial statements ofthe ultimate controller on the combination date. The stock premium in the capital reserves should be adjusted atthe difference between the book value of the net assets acquired in combinations and that of consideration paid forthe combination (or total par value of shares issued). If the stock premium in the capital reserves is insufficient tocover the differences, the retained earnings should be adjusted.Business combinations not under common control: The Company shall, on the acquisition date, measure the assetssurrendered and liabilities incurred or assumed by the Company for a business combination at their fair values.The Company shall recognize the difference of the combination costs in excess of the fair value of the identifiablenet assets acquired from the acquiree as goodwill. The Company shall recognize the difference of the combinationcosts in short of the fair value of the identifiable net assets acquired from the acquiree in the current profit and lossafter review.Intermediary service charges such as audit fee, legal service fee, appraisal and consultancy fee paid for businesscombinations and other directly relevant expenses are included in the current profit and loss when incurred; thetransaction costs for the issuance of equity securities for business combinations shall be used to offset equities.
6.Preparation method for consolidated financial statements
1.Scope of consolidationThe scope of consolidation of the consolidated financial statements of the Company is recognized based on thecontrol and all subsidiaries (including the divisible part of the investee controlled by the Company) shall beincluded in the consolidated financial statements.
2. Procedures for consolidationThe Company prepares the consolidated financial statements based on its own financial statements and those of itssubsidiaries according to other relevant information. When the Company prepares its consolidated financialstatements, it shall regard the whole enterprise group as an accounting entity to reflect the overall financialposition, operating results and cash flows of the enterprise group according to the requirements for recognition,measurement and presentation of the relevant accounting standards for business enterprises and the unifiedaccounting policies.Accounting policies and accounting periods adopted by all subsidiaries included in the scope of consolidation ofthe consolidated financial statements shall be consistent with those of the Company. If accounting policies andaccounting periods adopted by the subsidiaries are inconsistent with those of the Company, in the preparation ofthe consolidated financial statements, necessary adjustments shall be made according to the accounting policiesand accounting periods of the Company. For the subsidiaries acquired through business combination not undercommon control, adjustments to their financial statements shall be made based on the fair values of netidentifiable assets on the acquisition date. For the subsidiaries acquired through business combination undercommon control, adjustments to their financial statements shall be made based on the fair values of their assetsand liabilities (including goodwill from acquisition of the subsidiaries by the ultimate controller) in the financialstatements of the ultimate controller.The share of owner's equity, net profits and losses in the current year and comprehensive income in the currentyear of subsidiaries attributable to minority shareholders should be separately presented under the item "owner'sequity" in the consolidated balance sheet, the item "net profit" and the item "total comprehensive income" in theconsolidated income statement. The difference of the loss in the current year shared by minority shareholders ofthe subsidiaries in excess of the share of minority shareholders in the owner's equity at the beginning of the yearof the subsidiaries should be used to offset the minority equity.
（1）Increase in subsidiaries or business
During the reporting period, if the Company increased subsidiaries or business from business combinations undercommon control, the beginning balance of the consolidated balance sheet shall be adjusted; the incomes, expensesand profits from the beginning of the current year of the combinations of the subsidiaries or business to the end ofthe reporting period shall be included in the consolidated income statement; cash flows from the beginning of the
current year of the combinations of the subsidiaries or business to the end of the reporting period shall be includedin the consolidated statement of cash flows. Relevant items in the comparative financial statements of thesubsidiaries shall be adjusted accordingly, as if the reporting entity after the business combination exists when theultimate controller starts its control.Where the Company can control the investee under common control due to additional investments and otherreasons, adjustments shall be made as if parties involved in the combination have existed in the current state whenthe ultimate controller start its control. Equity investments held before the Company controls the combinee, andthe relevant profit and loss, other comprehensive income and other changes in net assets that are recognized fromthe later of the date when the Company obtains the original equity and the date when the combiner and thecombinee are under common control to the combination date, shall be used to offset the retained earnings at thebeginning of the year or the current profit and loss during the period of the comparative statements.During the reporting period, if the Company increased subsidiaries or business from business combinations notunder common control, the beginning balance in the consolidated balance sheet shall not be adjusted; the incomes,expenses and profits of the subsidiaries or business from the acquisition date to the end of the reporting periodshall be included in the consolidated income statement; cash flows of the subsidiaries and business from theacquisition date to the end of the reporting period shall be included in the consolidated statement of cash flows.Where the Company can implement control over an investee not under common control due to additionalinvestment or other reasons, the equity held by the combinee before the purchase date is remeasured at the fairvalue on the purchase date of the equity, and the difference between the fair value and the book value shall beincluded in the current investment income. In the event that the equity of the acquiree held prior to the acquisitiondate involves changes to other comprehensive income under the equity method and other changes to owners'equity except for net profit and loss, other comprehensive income and profit distribution, other comprehensiveincome and other changes in the owner's equity associated therewith are transferred to investment income of theperiod to which the acquisition date belong, except for other comprehensive income arising from changes in netliabilities or net assets due to the re-measurement of defined benefits plan by the investee.
（2）Disposal of subsidiaries or business
A .General method of disposalDuring the reporting period, if the Company disposes subsidiaries or business, the incomes, expenses and profitsfrom the subsidiaries or business from the beginning of the year to the disposal date shall be included in theconsolidated income statement; cash flows of the subsidiaries and business from the beginning of the year to thedisposal date shall be included in the consolidated statement of cash flows.The difference of total amount of the consideration from disposal of equities plus the fair value of the remainingequities less the shares calculated at the original shareholding ratio in net assets and goodwill of the originalsubsidiary which are continuously calculated as of the acquisition date or combination date is included in theinvestment income of the period at the loss of control. Other comprehensive incomes associated with the equityinvestments of the original subsidiary, or the changes in owners' equity other than net profit or loss, othercomprehensive income and profit distribution, are transferred into investment income of the period when controlis lost, except for other comprehensive income from the change in net liability or net asset due to the investor'sre-measurement of designated benefit plan.B .Disposal of subsidiaries by stagesWhere the Company disposes the equity investments in subsidiary through multiple transactions and by stagesuntil it loses the control, if the effect of the disposal on the terms and conditions of all transactions of equityinvestments in subsidiary and economic effect meet one or more of the following circumstance, it usuallyindicates that the multiple transactions should be accounted for as a package deal:
i. The transactions are concluded at the same time or under the consideration of mutual effect;ii. The transactions as a whole can reach a complete business result;iii. The occurrence of a transaction depends on that of at least one other transactions; and/oriv. A single transaction is uneconomical but it is economical when considered together with other transactions.
Where various transactions of disposal of equity investments in subsidiaries until loss of the control belongto a package deal, accounting treatment shall be made by the Company on the transactions as a transaction todispose subsidiaries and lose the control; however, the difference between each disposal cost and net assetshare in the subsidiaries corresponding to each disposal of investments before loss of the control should be
recognized as other comprehensive income in the consolidated financial statements and should be transferred intothe current profit or loss at the loss of the control.Where various transactions of disposal of equity investments in subsidiaries until loss of the control do not belongto a package deal, before the loss of the control, accounting treatment shall be made according to the relevantpolicies for partial disposal of equity investments in the subsidiary without losing control; at the loss of the control,
accounting treatment shall be made according to general treatment methods for disposal of subsidiaries.
（3）Purchase of minority equity of subsidiaries
The difference between long-term equity investments acquired by the Company through purchase of minority
interest and the subsidiary’s identifiable net assets attributable to the Company calculated continuously from the
acquisition date (or the combination date) in accordance with the increased shareholding ratio shall be chargedagainst stock premium within capital reserves in the consolidated balance sheet; when stock premium withincapital reserves is insufficient to offset, the retained earnings shall be adjusted.(4) Partial disposal of long-term equity investments in subsidiaries without losing controlThe difference between the proceeds from partial disposal of equity investments in the subsidiary and the share ofidentifiable net assets of the subsidiary attributable to the Company which are calculated continuously from theacquisition date (or the combination date) and which are corresponding to the disposal of long-term equityinvestments without losing control shall be charged against stock premium within capital reserves in theconsolidated balance sheet; when stock premium within capital reserves is insufficient to offset, the retainedearnings shall be adjusted.
7. Joint venture arrangements classification and Co-operation accounting treatment8..Recognition Standard of Cash & Cash Equivalents
The company recognizes its cash in vault & the deposits that are ready for payment at any time as cash whenpreparing the cash flow statement.which are featured with short term (expire within 3 months since purchased),high liquidity, easy to convert to know cash, low in risk of value change, could be recognized as cash equivalents.
9. Foreign currency transactions and translation of foreign currency statements
1.Foreign currency transactions
Foreign currency transactions are translated into functional currency at the approximate rate of spotexchange rate on the day when the transactions occur.The balance of foreign currency monetary items as at the balance sheet date are translated at the spotexchange rate on the balance sheet date and the exchange differences arising therefrom shall be included inthe current profit and loss, except those exchange differences arising from the special borrowings of foreigncurrency related to the acquired and constructed assets qualified for capitalization that will be capitalized atthe borrowing expenses.
2.Translation of foreign currency statements
Assets and liabilities in the balance sheet are translated at the spot exchange rates on balance sheet date;
owners' equity items, except for the item of “undistributed profits”, are translated at the spot exchange rates
on the dates when the transactions occur. The income and expenses items in income statements are translatedat the approximate rate of spot exchange rate prevailing on the date when transactions occur.Where the Company disposes of an overseas business, it shall transfer the exchange difference relating to theoverseas business to the current profit and loss.
10. Financial instruments
Financial instruments include financial assets, financial liabilities and equity instruments.
1.Classification of financial instrumentsAt the initial recognition, financial assets and financial liabilities are classified as: financial assets or financialliabilities measured at fair value through current profit and loss, including financial assets or financial liabilitiesheld for trading (and financial assets or financial liabilities directly designated to be measured at fair valuethrough current profit and loss); held-to-maturity investments; receivables; available-for-sale financial assets; andother financial liabilities, etc.
2.Recognition basis and measurement method of financial instruments(1)Financial assets (financial liabilities) measured at fair value through current profit and lossFinancial assets (financial liabilities) measured at fair value through current profit and loss are initially recognizedat the fair value upon acquisition (net of cash dividends declared but not yet paid or bond interest due but not yetreceived) and the related transaction costs are included in current profit and loss.The interest or cash dividends to be received during the holding period is or are recognized as investment income.
Change in fair values is included in the current profit and loss at the end of the period.Difference between the fair value and initial book-entry value is recognized as investment income upon disposal;meanwhile, adjustment is made to gains or losses from changes in fair values.(2) Held-to-maturity investmentsHeld-to-maturity investments are initially recognized at the sum of the fair value (net of bond interest due but notyet received) and related transaction costs upon acquisition.The interest income will be calculated and determined according to the amortized cost and effective interest rateduring the holding period and included in investment income. The effective interest rates are determined uponacquisition and remain unchanged during the expected remaining period, or a shorter period if applicable.Upon disposal, the difference between the purchase price obtained and the book value of the investment isrecognized in investment income.(3) Receivables
For creditor’s rights receivable arising from external sales of goods or rendering of service by the Company and
other creditor's rights of other enterprises (excluding liability instruments quoted in an active market) held by theCompany, including accounts receivable and other receivables, the initial recognition amount shall be the contractprice or agreement price receivable from purchasing party. Receivables with financing nature are initiallyrecognized at their present values.Upon recovery or disposal, the difference between the purchase price obtained and the book value of thereceivables is recognized in current profit and loss.(4) Available-for-sale financial assetsFinancial assets (financial liabilities) measured at fair value through current profit and loss are initially recognizedat the fair value and related transaction expenses upon acquisition (net of cash dividends declared but not yet paidor bond interest due but not yet received).The interest or cash dividends to be received during the holding period is or are recognized as investment income.The interest or cash dividends should be measured at fair value and their changes in fair value should be included
in other comprehensive income. However, for an equity instrument investment that has no quoted price in an
active market and whose fair value cannot be reliably measured, and for derivative financial asset linked to thesaid equity instrument investment and settled by delivery of the same equity instrument, they shall be measured atcost.Difference between the proceeds and the book value of the financial assets is recognized as investment incomeupon disposal; meanwhile, amount of disposal corresponding to the accumulated change in fair value which isoriginally and directly included in other comprehensive income shall be transferred out and recognized as thecurrent profit and loss.(5) Other financial liabilities
They are initially recognized at the sum of the fair value and the associated transaction costs. Other financialliabilities are subsequently measured at amortized cost.
3.Recognition and measurement of transfer of financial assetsWhen a financial assets transfer occurs, the financial assets will be derecognized when substantially all the risksand rewards on the ownership of the financial assets have been transferred to the transferee; and they will not bederecognized if substantially all the risks and rewards on the ownership of the financial assets have been retained.The principle of substance over form is adopted to determine whether a financial asset meets the abovede-recognition conditions for the financial asset. The transfer of a financial asset of the Company is classified intothe entire transfer and the partial transfer of financial asset. Where the entire transfer of the financial asset meetsthe de-recognition conditions, the difference of the following two amounts will be included in current profit andloss:
(1) The book value of the transferred financial asset;(2) The sum of the consideration received from the transfer and the accumulated amount of the changes in fair
value originally and directly included in owners’ equity (the situation where the financial asset transferred is an
available-for-sale financial asset is involved in).
If the partial transfer of financial asset satisfies the criteria for derecognition, the entire book value of the
transferred financial asset shall be split into the derecognized and recognized part according to their respective fairvalue and the difference between the amounts of the following two items shall be included in the current profitand loss:
(1) The book value of derecognized part;(2) The sum of the consideration for the derecognized part and the portion of de-recognition corresponding tothe accumulated amount of the changes in fair value originally and directly included in owners' equity (thesituation where the financial asset transferred is an available-for-sale financial asset is involved in).
If the transfer of a financial asset does not meet the derecognition criteria, the financial asset shall continue to berecognized, and the consideration received will be recognized as a financial liability.
4 .Derecognition criteria of financial liabilitiesWhere the present obligations of financial liabilities have been discharged in whole or in part, the financialliability is derecognized or any part thereof will be derecognized; if the Company signs an agreement withcreditors to replace the existing financial liabilities by undertaking new financial liabilities, and the new financialliabilities are substantially different from the existing ones in terms of contract terms, the existing financialliabilities will be derecognized, and at the same time, the new financial liability will be recognized.Where substantial revisions are made to some or all of the contractual stipulations of the existing financial liability,the Company shall derecognize the existing financial liability wholly or partly, and at the same time recognize thefinancial liability with revised contractual stipulations as a new financial liability.Upon whole or partial derecognition of financial liabilities, the difference between the book value of the financialliabilities derecognized and the consideration paid (including non-cash assets surrendered or new financialliabilities assumed) shall be included in the current profit and loss.Where the Company repurchases part of a financial liability, the entire book value of the financial liability shall besplit into the derecognized part and continuously-recognized part according to their respective fair value on therepurchase date. The difference between the book value allocated to the derecognized part and the considerationspaid (including non-cash assets surrendered and the new financial liabilities assumed) shall be included in thecurrent profit and loss.
5 .Recognition method of fair value of financial assets and financial liabilitiesWhere there is an active market for financial instruments, the fair values shall be recognized at quoted prices inthe active market. Where there is no active market, the fair values shall be recognized with valuation techniques.At the time of valuation, the Company adopts the techniques that are applicable in the current situation andsupported by enough available data and other information, selects the input values consistent with the features ofassets or liabilities considered by market participants in relevant asset or liability transactions, and gives priorityto using relevant observable inputs. Unobservable inputs are used only under the circumstance when it isimpossible or unobservable inputs to obtain relevant observable inputs.
6.Test method and accounting treatment of depreciation of financial assets (excluding receivables)Except for the financial assets measured at fair values through current profit and loss, the book value of financialassets on the balance sheet date should be checked. If there is objective evidence that a financial asset is impaired,provision for impairment shall be made.(1) Provision for impairment of available-for-sale financial assets:
If the fair value of available-for-sale financial assets has significantly declined at the end of the period, or it isexpected that the trend of decrease in value is non-temporary after considering of various relevant factors, theimpairment shall be recognized, and accumulated losses from decreases in fair value originally and directlyincluded in owners' equity shall be all transferred out and recognized as impairment loss.For available-for-sale debt instruments whose impairment losses have been recognized, if their fair values rise inthe subsequent accounting period and such rise is objectively related to the matters occurring after the recognitionof impairment loss, the previously recognized impairment loss shall be reversed and recorded into the currentprofit and loss.Impairment losses on available-for-sale equity instruments should not be reversed through profit and loss.(2) Provision for impairment of held-to-maturity investments:
Measurement of provision for impairment loss on held-to-maturity investments is treated in accordance with themeasurement method of impairment loss on accounts receivable.
11. Accounts receivable
（1）Receivables that are individually significant but with provision for bad debts made on an individual
basis:
| The judgment basis for significant single-item amount or standard for significant amount | The Company recognizes accounts receivable for a single project with the balance more than RMB 10 million (inclusive) and other accounts receivable from a single relevant unit with |
| the balance more than RMB 2 million (inclusive) as accounts receivable with significant single amount. | |
| The method of separate provision for bad debts of the accounts receivable with significant single-item amount | On the date of balance sheet, the Company will carry out impairment test independently for accounts receivable with significant single amount. If such accounts receivable are proved impairing through the test, the Company will determine the impairment loss and withdraw bad debt reserve according to the balance that the present value of its future cash flow is lower than its book value. The accounts receivable not impairing as proved in single test, will, together with the accounts receivable with insignificant single amount, be divided into many portfolios according to similar credit risk characteristics. Then according to certain proportion of the balance on the date of balance sheet of the portfolios of these accounts receivable, the Company will calculate and determine impairment loss and withdraw bad debt reserve. |
（2）Provision for bad debts of accounts receivable made on credit risk characteristics portfolio basis:
| Group name | Method |
| Combination of affiliated parties within the range of consolidation | Account age analysis method |
For those subject to provision for bad debts under aging analysis method:
√Applicable □Not applicable
| Age | Rate for receivables(%) | Rate for other receivables(%) |
| Within 1 year（Included 1 year） | 5.00% | 5.00% |
| 1－2 years | 10.00% | 10.00% |
| 2－3 years | 30.00% | 30.00% |
| 3－4 years | 50.00% | 50.00% |
| 4－5 years | 80.00% | 80.00% |
| Over 5 years | 100.00% | 100.00% |
Accounts on percentage basis in group：
□ Applicable √Not applicable
Accounts on other basis in group：
□ Applicable √Not applicable
（3）Receivables that are individually insignificant but with provision for bad debts made on an individual
basis:
| Reason for separate provision for bad debts | On the date of balance sheet, for the other accounts receivable with insignificant single amount and having obvious sign of impairment, the Company will determine impairment loss and |
| withdraw bad debt reserve according to the balance that the present value of their future cash flow is lower than their book value. | |
| Method of provision for bad debts | On the date of balance sheet, the Company will execute impairment test of the accounts receivable with insignificant single amount but having bad debt reserve withdrawn separately. If such accounts receivable are proved impairing during the test, the Company will determine impairment loss and withdraw bad debt reserve according to the balance that the present value of their future cash flow is lower than their book value. |
The Company complies with the disclosure requirements of the No.7 Industry Information Disclosure Guidelineof Shenzhen Stock Exchange-the Listed Company that Engaged in Civil Engineering and Construction Business.12.InventoriesIs the company subject to any disclosure requirements for special industries?YesCivil Engineering Construction
1.Classification of inventoriesInventories are classified into: raw materials and engineering construction, etc..
2.Valuation method of inventories dispatchedThe inventories are measured at weighted average method when dispatched.
3.Recognition basis for net realizable values of inventories of different categoriesNet realizable values of merchandise inventories held directly for sale, such as finished goods, stock commodities,and available-for-sale materials, are measured at the estimated selling prices less estimated sales expenses andrelevant taxes and surcharges in the normal production process. Net realizable values of material inventorieswhich need further processing are measured at the estimated selling prices less the estimated costs of completion,estimated sales expenses and relevant taxes and surcharges in the normal production process. Net realizable valuesof inventories held for the purpose of fulfillment of sales contracts or service contracts are calculated on the basisof the contract prices; if the quantity of inventories held exceeds that stated in the contract, the net realizablevalues of the excessive part are calculated on the basis of normal selling prices.The provisions for inventory depreciation reserve are made on an individual basis at the end of the period, forinventories with large quantities and relatively low unit prices, the provisions for inventory depreciation reserveare made on a category basis. For inventories related to the product portfolios manufactured and sold in the samearea, and of which the final usage or purpose is identical or similar thereto, and which is difficult to be separatedfrom other items for measurement purposes, the provisions for inventory depreciation reserve are made on aportfolio basis.Except that there is clear evidence that the market price is abnormal on the balance sheet date, the net realizablevalue of inventory items shall be recognized at the market price on the balance sheet date.Net realizable value of inventory items at the end of the year is recognized at the market price on the balance sheetdate.4. Inventory systemPerpetual inventory system is adopted.
5.Amortization methods for low-cost consumables and packaging materials(1) One-off amortization method is adopted for low-cost consumables;(2) One-off amortization method is adopted for packaging materials.
13.Assets held for sale
The Company classifies the non-current assets or disposal group meeting the following conditions as assets heldfor sale:
(1) Based on the practice of selling such assets or disposal groups in similar transactions, they can be soldimmediately under current conditions;
(2) 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.
14.Long-term equity investment
1.Standards for joint control and significant influence
The term ‘common control’ refers to the joint control, according to the relevant provisions, over an arrangement,
of which the relevant activities should be agreed and decided by the participants that share the control. Where theCompany and other investors exert common joint control over the investee and the Company is entitled to netassets of the investee, the investee is the joint venture of the Company.Significant influence refers to the power to participate in making decisions on the financial and operating policiesof an enterprise, but not the power to control, or jointly control, the formulation of such policies with other parties.Where the Company is able to exert significant influence over the investee, the investee is its associate.
2.Recognition of initial investment costs(1) Long-term equity investments acquired from business combinationBusiness combination under the same control: if the Company makes payment in cash, transfers non-cash assetsor bears debts and issues equity securities as the consideration for the business combination, the book value of theowner's equity of the acquiree in the consolidated financial statements of the ultimate controller is recognized asthe initial cost of the long-term equity investment on the combination date. In case the Company can exercisecontrol over the investee under common control for additional investment or other reasons, the initial investmentcost of long-term equity investments is recognized at the share of book value of net asset of the acquiree after thecombination in the consolidated financial statements of the ultimate controller on the combination date. The stockpremium should be adjusted at the difference between the initial investment cost of long-term equity investmentson the combination date and the book value of long-term equity investments before the combination plus the bookvalue of consideration paid for additional shares; if there is no sufficient stock premium for write-downs, theretained earnings are adjusted.Business combination not under common control: The Company recognizes the combination cost determined onthe combination date as the initial cost of long-term equity investments. Where the Company can control theinvestee not under common control from additional investments, the initial investment cost should be changed tobe accounted for under the cost method and recognized at the sum of the book value of equity investmentsoriginally held and newly increased investment cost.(2) Long-term equity investment acquired by other meansFor a long-term equity investment acquired through making payments in cash, its initial cost is the actually paidpurchase cost.For a long-term equity investment acquired from issuance of equity securities, its initial cost is the fair value ofthe issued equity securities.If the exchange of non-monetary assets has commercial substance and the fair values of assets traded out andtraded in can be measured reliably, the initial cost of long-term equity investment traded in with non-monetaryassets are determined based on the fair values of the assets traded out and the relevant taxes and surchargespayable unless there is any conclusive evidence that the fair values of the assets traded in are more reliable; if theexchange of non-monetary assets does not meet the above criteria, the book value of the assets traded out and therelevant taxes and surcharges payable are recognized as the initial cost of long-term equity investment traded in.For a long-term equity investment acquired from debt restructuring, its initial cost is determined based on the fairvalue.
3.Subsequent measurement and recognition of gains and losses(1) Long-term equity investments accounted for under the cost methodLong-term equity investments in subsidiaries are accounted for under the cost method. Except for the actual price
paid for acquisition of investment or the cash dividends or profits contained in the consideration which have beendeclared but not yet distributed, the Company recognizes the investment income in the current year at the cashdividends or profits declared by the investee.(2) Long-term equity investments accounted for under the equity methodLong-term equity investments in associates and joint ventures are accounted for under the equity method. If thecost of initial investment is in excess of the proportion of the fair value of the net identifiable assets in the investeewhen the investment is made, the difference will not be adjusted to the initial cost of the long-term equityinvestments; if the cost of initial investment is in short of the proportion of the fair value of the net identifiableassets in the investee when the investment is made, the difference will be included in the current profit and loss.The Company shall recognize the investment income and other comprehensive income at the shares of net profitand loss and other comprehensive income realized by the investee which the Company shall enjoy or bear andadjust the book value of long-term equity investments at the same time; the Company shall calculate the sharesaccording to profits or cash dividends declared by the investee and correspondingly reduce the book value oflong-term equity investments; the book value of long-term equity investments shall be adjusted according to theinvestee's other changes in owner's equity other than net profit and loss, other comprehensive income and profitdistribution, which should be included in owner's equity.The share of the investee's net profit or loss should be recognized after adjustments are made to net profit of theinvestee based on the fair value of identifiable net assets of the investee upon acquisition of investments andaccording to accounting policies and accounting period of the Company. When holding the investment, theinvestee should prepare the consolidated financial statements, it shall account for the investment income based onthe net profit, other comprehensive income and the changes in other owner's equity attributable to the investee.
The Company shall write off the part of incomes from internal unrealized transactions between the Company andassociates and joint ventures which are attributable to the Company according to the corresponding ratio andrecognize the profit and loss on investments on such basis. Where the losses from internal transactions betweenthe Company and the investee fall into the scope of assets impairment loss, the full amount of such losses shouldbe recognized. For transactions on investments or sales of assets between the Company and associates and jointventures, where such assets constitute business, they should be accounted for according to the relevant policiesdisclosed in this note "Accounting treatment of business combinations under common control and not undercommon control" and "Preparation of consolidated financial statements".When the Company recognizes its share of loss incurred to the investee, treatment shall be done in followingsequence: firstly, the book value of the long-term equity investment shall be reduced. Secondly, where the bookvalue thereof is insufficient to cover the share of losses, investment losses are recognized to the extent of bookvalue of other long-term equities which form net investment in the investee in substance and the book value oflong term receivables shall be reduced. Finally, after all the above treatments, if the Company is still responsiblefor any additional liability in accordance with the provisions stipulated in the investment contracts or agreements,provisions are recognized and included into current investment loss according to the obligations estimated toundertake.(3) Disposal of long-term equity investmentsFor disposal of long-term equity investments, the difference between the book value and the actual price shall beincluded in the current investment income.For long-term equity investments accounted for under the equity method, when the Company disposes suchinvestments, accounting treatment should be made to the part that is originally included in other comprehensiveincome according to the corresponding proportion by using the same basis for the investee to directly dispose therelevant assets or liabilities. Owner's equity recognized at the changes in the investee's other owner's equity otherthan net profit or loss, other comprehensive income and profit distribution shall be transferred to the current profitand loss according to the proportion, except for other comprehensive income from changes arising fromre-measurement of net liabilities or net assets of defined benefit plan.In case the joint control or significant influence over the investee is lost for disposing part of equity investments orother reasons, the remaining equity will be changed to be accounted for according to the recognition andmeasurement principles of financial instruments. The difference between the fair value and the book value on thedate of the loss of joint control or significant influence should be included in the current profit and loss. For othercomprehensive income recognized from accounting of the original equity investments under the equity method,accounting treatment should be made by using the same basis for the investee to directly dispose the relevantassets or liabilities when the equity method is no longer adopted. Owner's equity recognized from the investee's
changes in other owner's equity other than net profit or loss, other comprehensive income and profit distributionshould all transferred to the current profit and loss when the equity method confirmed is no longer adopted.Where the Company loses the control over the investee due to disposal of partial equity investments or otherreasons, when it prepares individual financial statements, if the remaining equity after disposal can exercise jointcontrol or significant influence on the investee, such investments should be changed to be accounted for under theequity method and the remaining equity should be deemed to have be adjusted on acquisition, namely when theequity method is adopted for accounting; if the remaining equity after disposal can exercise joint control orsignificant influence on the investee, such equity will be changed to be accounted for according to recognition andmeasurement standards of financial instruments and the difference between fair value and book value on the dateof loss of the control or significant influence should be included in the current profit and loss.Where equity after the disposal is acquired from business combinations due to additional investments or otherreasons, when the Company prepares individual financial statements, if the remaining equity after the disposal isaccounted for under the cost method or equity method, other comprehensive income and other owners' equityrecognized from equity investments that are held before the acquisition date and are accounted for under theequity method should be carried forward in proportion; if the remaining equity after the disposal is changed to beaccounted for according to recognition and measurement standards of financial instruments, other comprehensiveincome and other owners' equity should be carried forward at full amount.
15. Investment real estateThe measurement mode of investment property
Cost measurementDepreciation or amortization method
The investment property refers to the real estate held for earning rentals or/and capital appreciation or both,including leased land use right, land use right held for transfer upon appreciation, and leased building(including self-built buildings or buildings developed for renting or buildings under construction ordevelopment for future renting).
The Company measures its existing investment property at cost. For investment properties measured with thecost model - in terms of buildings for renting, the same depreciation policy as that for fixed assets of theCompany is adopted and land use rights for renting are implemented with the same amortization policy asthat for intangible assets.
16. Fixed assets1. 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
| Type | Depreciation method | Expected useful life（Year） | Estimated residual value rate | Annual depreciation rate（%） |
| House and Building | Straight-line method | 20 | 5.00 | 4.75 |
| Machinery and equipment | Straight-line method | 10 | 5.00 | 9.50 |
| Transportation equipment | Straight-line method | 7 | 5.00 | 13.57 |
| Electronic equipment and other equipment | Straight-line method | 3-5 | 5.00 | 19.00-31.67 |
3.Cognizance evidence and pricing method of financial leasing fixed assetsThe fixed assets acquired under financing lease are recognized if one of the following conditions is specified bythe Company and the leaser in their lease agreement:
(1) Upon the expiration of the lease term, the ownership of the leased asset has been transferred to the Company;
(2) The Company has the option to purchase the asset and the purchase price is far lower than the asset’s fair
value at the time of the option being exercised;(3) The lease term covers the most of the useful life of the leased asset;(4) The present value of the minimum payment by the Company on the lease commencement date is almost equal
to the asset’s fair value.
On the lease commencement date, the book entry value of a fixed asset acquired under financing lease is
measured at the asset’s fair value or the present value of the minimum lease payment, whichever is the lower. The
minimum lease payment is recorded as the book entry value of the long-term payables, and the difference betweenthem is deemed as the unrecognized financing expenses.
17.Construction in process
Projects under construction are recorded as fixed assets at necessary expenditures incurred before preparing theasset to reach the condition for its intended use. For construction in progress that has reached working conditionfor intended use but for which the completion of settlement has not been handled, it shall be transferred into fixedassets at the estimated value according to the project budget, construction price or actual cost, etc. from the datewhen it reaches the working condition for intended use and the fixed assets shall be depreciated in accordance
with the Company’s policy for fixed asset depreciation; adjustment shall be made to the estimated value based on
the actual cost after the completion of settlement is handled, but depreciation already provided for will not beadjusted.
`
18.Borrowing costs
1.Recognition principles of capitalization of borrowing costsBorrowing costs include the interest of borrowings, the amortization of discount or premium, auxiliary expenses,exchange differences incurred by foreign currency borrowings, etc.The borrowing costs incurred to the Company and directly attributable to the acquisition and construction orproduction of assets eligible for capitalization should be capitalized and recorded into asset costs; other borrowingcosts should be recognized as costs according to the amount incurred and be included into current profit and loss.Assets eligible for capitalization refer to fixed assets, investment property, inventories and other assets which mayreach their intended use or sale status only after long-time acquisition and construction or production activities.Borrowing costs may be capitalized only when all the following conditions are met at the same time:
(1) Asset disbursements, which include those incurred by cash payment, the transfer of non-cash assets or theundertaking of interest-bearing debts for acquiring and constructing or producing assets eligible for capitalization,have already been incurred;(2) Borrowing costs have already been incurred;(3) The acquisition and construction or production activities which are necessary to prepare the assets for theirintended use or sale have already been started.
2.Capitalization period of borrowing costs
Capitalization period refers to the period from commencement of capitalization of borrowing costs to itscessation; period of suspension for capitalization is excluded.
Capitalization of borrowing costs should cease when the acquired and constructed or produced assets eligible forcapitalization have reached the working condition for their intended use or sale.When some projects among the acquired and constructed or produced assets eligible for capitalization are
completed and can be used separately, the capitalization of borrowing costs of such projects should be ceased.If all parts of the acquired and constructed or produced assets are completed but the assets cannot be used or soldexternally until overall completion, the capitalization of borrowing costs should be ceased at the time of overallcompletion of the said assets.
3.Period of capitalization suspensionIf the acquisition and construction or production activities of assets eligible for capitalization are abnormallyinterrupted and such condition lasts for more than three months, the capitalization of borrowing costs should besuspended; if the interruption is necessary procedures for the acquired, constructed or produced assets eligible forcapitalization to reach the working conditions for its intended use or sale, the borrowing costs continue to becapitalized. Borrowing costs incurred during the interruption are recognized as the current profit and loss andcontinue to be capitalized until the acquisition, construction or production of the asset restarts.
4.Measurement of capitalization rate and capitalized amounts of borrowing costsAs for special borrowings borrowed for acquiring and constructing or producing assets eligible for capitalization,borrowing costs of special borrowing actually incurred in the current period less the interest income of theborrowings unused and deposited in bank or return on temporary investment should be recognized as thecapitalization amount of borrowing costs.As for general borrowings used for acquiring and constructing or producing assets eligible for capitalization, theinterest of general borrowings to be capitalized should be calculated by multiplying the weighted average of assetdisbursements of the part of accumulated asset disbursements exceeding special borrowings by the capitalizationrate of used general borrowings. The capitalization rate is calculated by weighted average interest rate of generalborrowings.
19.Biological AssetsNil20.Oil & gas assets
Nil
21..Intangible assets(1) Valuation method, service life and impairment test
1.Measurement method of intangible assets(1) The Company initially measures intangible assets at cost on acquisition;The cost of an externally acquired intangible asset comprises its purchase price, related taxes and surcharges andany other directly attributable expenditure of preparing the asset for its intended use. If the deferred payment ofpurchase price of intangible assets exceeding normal credit terms is substantially of financial nature, the cost ofintangible assets should be determined at the present value of the purchase price.The intangible assets acquired and used by the debtor to repay debt in debt restructuring should be recorded at thefair value of the intangible assets. The difference between the book value of restructured debts and the fair valueof intangible assets used to repay debt should be included in the current profit and loss.On the premise that non-monetary assets trade is of commercial nature and the fair value of the assets traded in orout can be measured reliably, the intangible assets traded in with non-monetary assets should be recognized at thefair value of the assets traded out, unless any unambiguous evidence indicates that the fair value of the assetstraded in is more reliable; as to the non-monetary assets trade not meeting the aforesaid premise, the book value ofthe assets traded out and related taxes and surcharges payable should be recognized as the cost of the intangibleassets, with gains or losses not recognized.(2) Subsequent measurementThe useful lives of intangible assets are analyzed on acquisition.For intangible assets with definite useful lives, the Company shall adopt the straight-line method for amortizationwithin the period during which they can bring economic benefits to the Company; where the period during whichthey can bring economic benefits to the Company cannot be forecast, those intangible assets shall be deemed as
assets with indefinite lives and no amortization will be made.2.Estimate of useful life of intangible assets with limited useful life:
| Item | Estimated useful lives | Basis |
| Land use right | 50 years | Land use certificate |
| software | 5 years | By reference to the same industry |
The useful life and amortization method of intangible assets with limited useful lives should be reviewed.After review, the useful life of intangible assets and amortization method at the end of the year are not differentfrom previous estimates.
3.Specific criteria for classification of research phase and development phaseResearch phase: the phase for the creative and planned investigation and research to acquire and understand newscientific or technological knowledge.Development stage: the phase for the application of research achievements and other knowledge to a certain planor design, prior to the commercial production or use, so as to produce any new material, device or product, orsubstantially improved material, device and product.Expenditure of an internal research and development project on the research phase shall be included in currentprofit and loss when it occurs.
4.Specific criteria for capitalization of expenditures at the development phaseExpenditure on the development phase of an internal research and development project shall be recognized asintangible assets only when the following conditions are simultaneously satisfied:
(1) It is feasible technically to finish intangible assets for use or sale;(2) It is intended to finish and use or sell the intangible asset;(3) The ways whereby the intangible asset is to generate economic benefits, including those whereby it is ableprove that there is a potential market for the products manufactured by applying this intangible asset or that thereis a potential market for the intangible asset itself; if the intangible asset will be used internally, its usefulness shallbe proved;(4) It is able to finish the development of the intangible assets, and able to use or sell the intangible assets, withthe support of sufficient technologies, financial resources and other resources; and(5) The expenditure attributable to the intangible asset during its development phase can be measured reliably.
（2）Internal research and development expenditure accounting policy
Nil
22.Impairment of long-term assets
For the long-term equity investments, investment property, fixed assets, construction in progress, intangible assets,and other long-term assets measured at cost model, if there are signs of impairment, an impairment test will beconducted on the balance sheet date. If the recoverable amount of the asset is less than its book value after test,assets impairment provision will be made at the difference and included into impairment loss. The recoverableamount is determined at the higher of the net of the fair value less disposal costs and the present value of theexpected future cash flows. The assets impairment provision is calculated and made on an individual basis. If it isdifficult for the Company to estimate the recoverable amount of the individual asset, the recoverable amount of anasset group to which the said asset belongs to will be determined. Asset group is the smallest asset group that canindependently generate cash inflows.For goodwill, impairment test shall be conducted at least in the end of each year.The Company conducts an impairment test for the goodwill. The book value of goodwill arising from businesscombinations is amortized to relevant asset groups with a reasonable method from the date of acquisition; oramortized to relevant combination of asset groups if it is difficult to be amortized to relevant asset groups. Whenthe book value of goodwill is amortized to the relevant assets group or combination of assets groups, it shall beevenly amortized according to the proportion of the fair value of each assets group or combination of assetsgroups in the total fair value of the relevant assets groups or combinations of assets groups. Where the fair valuecannot be reliably measured, it should be amortized according to the proportion of the book value of each assetgroup or combination of assets groups in the total book value of assets groups or combinations of assets groups.
When making an impairment test on the relevant assets groups or combination of assets groups containinggoodwill, if any indication shows that the assets groups or combinations of assets groups may be impaired, theCompany shall first conduct an impairment test on the assets groups or combinations of assets groups notcontaining goodwill, calculate the recoverable amount and compare it with the relevant book value to recognizethe corresponding impairment loss. Then the Company shall conduct an impairment test on the assets groups orcombinations of assets groups containing goodwill, and compare the book value of these assets groups orcombinations of assets groups (including the book value of the goodwill apportioned thereto) with the recoverableamount. Where the recoverable amount of the relevant assets groups or combinations of assets groups is lowerthan the book value thereof, the Company shall recognize the impairment loss of the goodwill.
The above losses from asset impairment shall not be reversed in subsequent accounting periods once recognized.
23.Long-term deferred expenses
Long-term deferred expenses refer to various expenses which have been already incurred but will be bornin this period and in the future with an amortization period of over 1 year.1.Amortization methodLong-term deferred expenses are amortized evenly over the beneficial period.
2.Amortization yearsThe amortization period is determined in accordance with the contract or expected beneficial period.
24.Employee compensation
1.Accounting treatment of short-term compensationDuring the accounting period of an employee' providing services for the Company, the Company should recognizethe short-term compensation actually incurred as liabilities and include it in the current profit and loss or therelevant asset costs.During the accounting period when employees serve the Company, the corresponding amount of employeecompensation is calculated and determined according to the provision basis and provision proportion as stipulatedin the provisions on the social insurance premiums and housing funds paid for employees by the Company, aswell as trade union funds and employee education funds.If the employee benefits are of non-monetary, they are measured at fair value if they can be reliably measured.
2.Accounting treatment of post-employment benefitsDefined contribution plansThe Company pays basic endowment insurance and unemployment insurance for employees according to therelevant provisions of the local government, calculate payables according to payment base and proportionspecified by the local government and recognizes them as liabilities, and includes them into the current profit andloss or the relevant asset costs.
3.Accounting treatment of dismissal benefitsThe Company recognizes the employee compensation arising from dismissal benefits as liabilities and include itin the current profit and loss when the Company cannot unilaterally withdraw dismissal benefits which areprovided for termination of labor relation plan or layoff proposal, or when the Company recognizes costs orexpenses (which is earlier) associated with restructuring of payment of dismissal benefits.(4) Accounting methods for other long-term employee benefits
Nil25. Estimated liabilities
1.Recognition criteria for estimated liabilitiesWhere all the following conditions are met simultaneously for any obligation pertinent to any contingencyincluding litigation, debt guarantee, onerous contract and reorganization, the Company will recognize suchcontingency as estimated liabilities:
(1) The obligation is a present obligation of the Company;(2) The performance of such obligation is likely to result in outflow of economic benefits from the Company;and(3) The amount of the obligation can be measured reliably.
2.Measurement of estimated liabilitiesEstimated liabilities of the Company is initially measured as the best estimate of expenses required for theperformance of the relevant present obligations.When the Company determines the best estimate, it should have a comprehensive consideration of risks withrespect to contingencies, uncertainties and the time value of money. If the time value of money is significant, thebest estimate shall be determined after discounting the relevant future outflow of cash.The best estimate shall be accounted as follows in different circumstances:
If there is continuous range (or interval) for the necessary expenses, and probabilities of occurrence of all theoutcomes within this range are equal, the best estimate shall be determined at the average amount of upper andlower limits within the range.If there is no continuous range (or interval) for the necessary expenses, or probabilities of occurrence of all theoutcomes within this range are unequal although such a range exists, in case that the contingency involves a singleitem, the best estimate shall be determined at the most likely outcome; if the contingency involves two or moreitems, the best estimate should be determined according to all the possible outcomes with their relevantprobabilities.When all or some of the expenses necessary for the liquidation of estimated liabilities of the Company areexpected to be compensated by a third party, the compensation should be separately recognized as an asset onlywhen it is virtually certain that the reimbursement will be obtained. The amount recognized for the reimbursementshould not exceed the book value of estimated liabilities.
26.Share-based payments
The Company's share-based payments are transactions in which the Company grants equity instruments orundertakes equity-instrument-based liabilities in return for services from employees [or other parties]. Theshare-based payments of the Company consist of equity-settled share-based payments and cash-settledshare-based payments.Where equity-settled share-based payments are exchanged for providing services by employees, their fair values
are measured at those of employees’ equity instruments. Where the Company makes share-based payments in
restricted stocks and the employee makes capital contributions to subscribe such shares, such shares should not becirculated or transferred before they reach unlocked conditions and before they are unlocked; if the unlockedconditions specified in the final equity incentive plan fail to be reached, then the Company should repurchase theshares at the price agreed in advance. When the Company received the payment of the employee for thesubscription of restricted stocks, it should recognize share capital and capital reserves (share premiums) inaccordance with the payment for subscription received. The Company should fully recognize a liability at therepurchase obligations and recognize treasury stock at the same time. On each balance sheet date within thevesting period, the Company will, based on the newly-acquired subsequent information such as the changes in thenumber of the vested employees and whether the specified performance is reached, make the best estimate on thenumber of the vesting equity instruments. On such basis, the services received in the current period should beincluded in the relevant cost or expenses according to fair value on the date of grant and capital reserves should beaccordingly increased. No adjustments should be made to the recognized relevant costs or expenses and totalowners' equity after the vesting date. However, when the right can be exercised immediately after the grant, itshould be included in the relevant costs or expenses at the fair value on the date of grant. The capital reservesshould be increased accordingly.For share-based payments finally failing to be exercised, costs or expenses should not be recognized, unless theconditions for vesting are market conditions or non-vesting conditions. At this time, whether market conditions ornon-vesting conditions are met or not, it is deemed to have vesting rights if non-market conditions in all thevesting conditions are met.If the terms of the equity-settled share-based payments were modified, the services received should be recognizedat least in accordance with the terms of the unmodified terms. Moreover, the modification of fair value of equityinstruments granted from any increase, or beneficial changes to the employee on the modification date should berecognized as increases in services obtained.If the equity-settled share-based payments were cancelled, they should be handled as accelerated exercise of rightson the date of cancellation and the amount that is not yet recognized should be immediately recognized. Whereemployees or other parties could choose to meet non-vesting conditions but failed to meet the conditions in thevesting period, they should be handed as cancelling the equity-settled share-based payments. But, if new equityinstruments were granted and such new equity instruments granted are recognized to be used to replace thecancelled equity instruments on the date of grant of new equity instruments, then the alternative equityinstruments for granted should be handled in the way same as the revision to terms and conditions on handling the
original equity instruments.27. Preferred shares, perpetual capital securities and other financial instruments
Nil
28.Revenue
Is the company subject to any disclosure requirements for special industries?YesCivil Engineering ConstructionThe Company complies with the disclosure requirements of the No.7 Industry Information Disclosure Guideline
of Shenzhen Stock Exchange-the Listed Company that Engaged in Civil Engineering and Construction 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 with ownershipnor caries 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 revenueThe service revenue provided by the Company mainly refers to the revenue of engineering design. In case that theresults from provision of labor transactions can be estimated reliably, the revenue shall be recognized as per theimportant milestones specified by the design contract. Namely, the revenue is recognized as per the percentage ofthe workload of important milestones of the completed design in the total design workload and the expectedrecoverable contract amount.If the result of providing service transaction cannot be estimated in a reliable way, the service revenue shall bedetermined 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 contractsUnder the circumstance that the outcome of a construction contract can be estimated in a reliable way, the contractrevenue and the contract costs shall be recognized in light of the percentage-of- completion method on the date ofthe 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 contract
costs 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-progress contractand the settled price are presented in the balance sheet with a net amount after offset. The part of the sum of thecost and the gross profit (loss) accumulatively incurred from a construction-in-progress contract exceeding overthe settled contract price is presented as inventory; and the part of the settled contract price exceeding over thecost and the gross profit (loss) accumulatively incurred from a construction-in-progress is presented as advancepayment.(3) Recognized income of hospital businessThe income of hospital mainly comes from the outpatient and inpatient departments, and the income recognition
is done at the time of patient‘s settlement.
For the outpatient income, as the patients turning to the outpatient treatment do not need the inpatient treatmentgenerally, the treatment duration is short, the settlement is made with the hospital at the end of the treatment andtreatment and medicine expense is paid. Financially, such outpatient income shall be recognized at the day ofreceipt.For the inpatient income, as the patient needs to be treated in the hospital for a certain period and a part of themedical expense shall be prepaid when be admitted to hospital, the inpatient income shall not be recognized at thismoment. When discharging from the hospital, the patient will settle the medical expense for the hospitalizationand the hospital will issue the invoice to the patient. In such case, the income from the inpatient is recognizedfinancially.
29.Government subsidies(1)Basis and accounting methods for assets related government subsidies
1.TypeGovernment subsidies are monetary assets and non-monetary assets freely obtained by the Company from thegovernment. They are divided into government subsidies related to assets and government subsidies related toincome.Government subsidies related to assets refer to government subsidies which are acquired by the Company forconstruction or form long-term assets in other ways, including the financial allocation for purchasing fixed assetsor intangible assets, the financial discount for special loan of fixed assets and others. Government subsidiesrelated to income refer to government subsidies other than government subsidies related to assets.
2.Timing of recognitionIf a government subsidy is a monetary asset, it shall be measured in the light of the amount received or receivable.If a government subsidy is a non-monetary asset, it shall be measured at its fair value; and if its fair value cannotbe obtained in a reliable way, it shall be measured at a nominal amount. Government subsidies measured at thenominal amount are directly included in the current profit or loss.
3.Accounting treatment
Governmental subsidy related to assets will be used to write down the book value of relevant assets orbe confirmed as deferred income. If being confirmed as deferred income, the governmental subsidy willbe recorded in the gain or loss of the current period within the service life of relevant assets with
reasonable and systematic methods (if being related to the Company‘s daily activities, the governmental
subsidy will be recorded in other benefits; if not, they will be recorded in non-operating income).(2)Basis and accounting methods for income related government subsidies
The governmental subsidy related to income, if being used to compensate the Company‘s relevant cost expenses
or losses in later period, will be confirmed as deferred income, and be recorded in the gain or loss of the current
period (if beingrelated to the Company‘s daily activities, the governmental subsidy will be recorded in other
benefits; if not, they will be recorded in non-operating income) or be used to write down relevant cost expenses orlosses during the period of confirmation on relevant cost expenses or losses; if being used to compensate the
Company‘s relevant cost expenses or losses already incurred, the governmental subsidy will be directly recordedin the gain or loss of the current period (if being related to the Company‘s daily activities, the governmental
subsidy will be recorded in other benefits; if not, they will be recorded in non-operating income) or be used towrite down relevant cost expenses or losses.
30. Deferred income tax assets and deferred income tax liabilities
Deferred income tax assets are recognized at deductible temporary differences to the extent that it shall not exceedthe taxable income probably obtained in future period to be against the deductible temporary difference. Fordeductible losses and tax credits that can be carried forward to subsequent periods, deferred tax assets arisingtherefrom are recognized to the extent that future taxable income will be probable to be available againstdeductible losses and tax credits.Taxable temporary differences are recognized as deferred income tax liabilities except in special circumstances.Such special circumstances include: the initial recognized of goodwill; other transactions or events that are not abusiness combination and affect neither accounting profit nor taxable profit (tax loss).If the Company has the legal right of netting and intends to settle in net amount or to obtain assets and dischargeliabilities simultaneously, the current income tax assets and current income tax liabilities of the Company shall bepresented based on the net amount after offset.When the Company has the legal right for netting of current income tax assets and current income tax liabilitiesand the income tax assets and income tax liabilities are related to the income tax levied on the same taxpayer bythe same tax administrative department or are related to different taxpayers but, within each future period ofreversal of important income tax assets and income tax liabilities, the taxpayers involved intend to settle currentincome tax assets and current income tax liabilities or acquire assets and liquidate liabilities at the same time, theCompany's income tax assets and income tax liabilities shall be presented at the net amount after the offset.
31.Leases
1.Accounting treatment of operating leases(1) The Company's rental expenses paid for leased assets shall, within the whole lease term excluding therent-free period, be amortized with the straight-line method and included in current expenses. Initial direct costsrelated to lease transactions paid by the Company shall be included in the current expenses.When assets lessor bears costs related to the lease borne by the Company, the Company shall deduct the part ofexpenses from the total rents and amortize the rents after deduction over the lease term and include them incurrent expenses.(2) The Company's rental expenses collected for leased assets shall, within the whole lease term excluding therent-free period, be amortized with the straight-line method and recognized as the relevant rental income. Initialdirect cost associated with leasing transactions paid by the Company should be included in the current cost; thecost of large amount shall be capitalized and included by stages in the current income according to the same baserecognized at the income related to leasing over the whole leasing period.When the Company bears costs related to the lease borne by the leasee, the Company shall deduct part ofexpenses from the total rents and amortize the rents after deduction over the lease term.
2.Accounting treatment of finance leases(1) Assets acquired under finance leases: at the inception of the leases, the Company shall recognize thebook-entry value of leased assets at the lower of their fair values or their present values of the minimum leasepayments, and shall recognize the book-entry value of long-term payables at the amounts of the minimum leasepayments, and shall recognize the differences between the above two book-entry values as unrecognized financingcharges. Under the effective interest method, the Company amortizes the unrecognized financing charges over thelease term and includes them in the financial expenses. The Company records the initial direct expenses in thevalues of leased assets.(2) Assets leased under finance leases: On the lease beginning date, the Company recognizes the difference of
finance leasing receivables plus unguaranteed residual value and their present value as unrealized financingincome and recognized the unrealized financing income as rental income in each period when the rents will bereceived in the future. The initial direct expenses of the Company related to lease are included into the initialmeasurement of financing lease payment receivable, and the income recognized in lease period is decreasedaccordingly.
32. Other significant accounting policies and estimatesNil
33.Change of main accounting policies and estimations(1)Change of main accounting policies
√Applicable □Not applicable
| Content and reasons for changes in accounting policies | Approval procedure | Rremark |
(2) Change of main accounting estimations
□Applicable √Not applicable
34.OtherVI.Taxation1.Main categories and rates of taxes
| Tax type | Tax basis | Tax rate(%) |
| VAT | The output tax is calculated based on taxable income in accordance with tax laws, and value added tax payable should be the balance of the output tax after deducting the deductible input tax for the current year | 0、3、6、11、17 |
| Sales tax | Paid based on the actual business tax, VAT and consumption tax paid | |
| Urban maintenance and construction tax | Paid as per the turnover tax paid actually. | 1、5、7 |
| Enterprise income tax | Calculated and paid at turnover tax actually paid. | 15、25 |
In case there exist any taxpayer paying corporate income tax at different tax rates, disclose the information
| Name of taxpayer | Income tax rates |
| Changzhi Shenzhou Laodingshan Industrial Co., Ltd. | 25% |
| Xiangfen County Taoshan Construction Co., Ltd. | 25% |
| Sino Great Wall (Xihua) Economic Development Zone Investment Co., Ltd. | 25% |
| Liupanshui Central People‘s Hospital Investment Co., Ltd. | 25% |
| Sino Zhigu Industrial (Yueyang) Co., Ltd. | 25% |
| Sino Great Wall Guangxia (Wuhan) Medical Development Co., Ltd. | 25% |
| Sino Great Wall Infrastructure Investment Co., Ltd. | 25% |
| Wuhan Commercial Workers Hospital LLC | 25% |
| Sino Great Wall Medical Investment Management Co., Ltd. | 25% |
| Sino Great Wall International Engineering Co., Ltd. | 15% |
| Fujian Sino Great Wall Mingyihui Medical Investment Co., Ltd. | 25% |
| Sino Great Wall Medical Investment (Hubei) Co., Ltd. | 25% |
| Hubei Yuanyaotong Supply Chain Co., Ltd. | 25% |
| Sino Great Wall Medical Management (Inner Mongolia) Co., Ltd. | 25% |
| Sino Great Wall Health Management (Jiangsu) Co., Ltd. | 25% |
| Sino Great Wall New Energy (Beijing) Co., Ltd. | 25% |
| Wu‘an Juhe Photovoltaic Power Co., Ltd. | 25% |
| Shanghai Lingrui International Trading Co., Ltd. | 25% |
| Shenzhen Hongtulve Industrial Co., Ltd. | 25% |
| Guangzhou Herabenna Interior Design 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% |
| Suzhou Lvbang Wood Industry Technology Co., Ltd. | 25% |
| Huichang County Zhongcheng Construction Engineering Co., Ltd. | 25% |
| Sino Great Wall Zhihui Housing Property (Zhanjiang) 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 Construction Engineering Co., Ltd. | 25% |
| Sino Great Wall Real Estate (Hubei) Co., Ltd. | 25% |
| SGW America LLC | 21% |
| Sino Great Wall Group Co.,Limited | 17% |
| Far eastern international engineering company,LLC | 20% |
| Sino Great Wall(Philippines) International Corporation | 30% |
| Sino Wai Man International Engineering Limited | 12% |
| Sino Great Wall (HK) Property Co., Limited | 17% |
| SGW HPEngineeringConstructionSDN.BHD（Malaysia） | 24% |
| SGW VENTURES SDN.BHD.（Venture Company） | 24% |
| SGW CONSTRUCTION (LANGKAWI) SDN.BHD. | 24% |
| Alor Vista Development Sdn Bhd | 24% |
| SINOGREATWALLGENERALTRADING&CONTRACTINGCO.LTD(Kuait) | 15% |
| Shenzhou Changcheng（Lao）Co.,Ltd | 25% |
| Sino Great Wall Group （UK）Co.,Limited | 19% |
| Sino Great Wall International Engineering( MM ) Co.,Ltd | 25% |
| Sino Great Wall International Engineering Co.,Ltd(Maldives) | 0% |
| Inrich Me Engineering Co,.Ltd(HK) | 17% |
| SINO GREAT WALL INTERNATIONAL ENGINEERING(MACAU) CO.,LIMITED | 12% |
| Sino Great WallInternationalEngineering(Thailand) Co.,Ltd. | 20% |
| Sino Great Wall International Engineering(CNMI) Co.,LLC. | 21% |
| SINO GREAT WALL（USA）.INC | 21% |
| PT.SINO GREAT WALL INVESTMENT INDONESIA | 25% |
| PT.SINO GREAT WALL CONSTRUCTION INDONESIA | 25% |
| Acura Kliniken Baden-Baden GmbH | 19% |
| Wuhan Huaye Pharmaceutical Co., Ltd. | 25% |
2.Tax preferences3.OtherVII. Notes to the major items of consolidated financial statement1. Cash and bank balances
In RMB
| Items | Year-end balance | Year-beginning balance |
| Cash on hand | 5,289,118.55 | 4,614,087.16 |
| Bank deposit | 252,706,397.26 | 642,608,503.33 |
| Other monetary capital | 1,116,601,593.69 | 957,751,325.63 |
| Total | 1,374,597,109.50 | 1,604,973,916.12 |
| Including: Total amount deposited abroad | 77,277,614.52 | 221,610,258.90 |
Other notes
| Thereinto, the details of monetary capitals with restrictive use due to mortgage, pledge or freezing etc. and restrictive monetary capitals depositing in overseas and repatriation are as follows: | ||
| Current amount | Last amount | |
| Bank acceptance guarantee deposit | 278,488,640.49 | 349,043,551.56 |
| Guarantee bond | 537,808,990.13 | 555,665,432.94 |
| Performance bond | ||
| Fixed time deposits or call deposits used for guarantee | 300,000,000.00 | 50,000,000.00 |
| Overseas funds with limited remittance | 22,098.66 |
| Bond for wages of migrant workers | 303,963.07 | 3,020,242.47 |
| Total | 1,116,601,593.69 | 957,751,325.63 |
2. Financial assets measured at fair value through current profit and loss
In RMB
| Items | Year-end balance | Year-Beginning balance |
Other notes：
3.Derivative financial assets
□ Applicable √ Not applicable
4.Note receivables(1)Classification Note receivable
In RMB
| Items | Year-end balance | Year-beginning balance |
| Bank acceptance bill | 4,710,772.96 | 15,544,160.00 |
| Commercial acceptance bill | 387,317,772.50 | 272,657,402.88 |
| Total | 392,028,545.46 | 288,201,562.88 |
(2) Notes receivable pledged by the Company at the period-end
（3）Notes receivable endorsed or discounted by the Company as at June 30,2018 but not expired on the balance
sheet date
In RMB
| Items | Amount derecognized as at June 30,2018 | Amount underecognized as at June 30,2018 |
| Bank acceptance bill | 5,710,000.00 | |
| Commercial acceptance bill | 260,000,000.00 | |
| Total | 5,710,000.00 | 260,000,000.00 |
（4）There is no notes transferred to accounts receivable because drawer of the notes fails to exited the contract or
agreement
In RMB
| Items | Amount |
| Commercial acceptance bill | 0.00 |
| Total | 0.00 |
Other notes
5. Account receivable
(1)Classification account receivables.
In RMB
| Category | Amount in year-end | Amount in year- begin | ||||||||
| Book Balance | Bad debt provision | Book value | Book Balance | Bad debt provision | Book value | |||||
| Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | |||
| Receivables subject to provision for bad debts on credit risk characteristics basis | 5,648,176,303.16 | 100.00% | 616,711,352.04 | 10.92% | 5,031,464,951.12 | 6,332,915,727.57 | 100.00% | 626,240,483.49 | 9.89% | 5,706,675,244.08 |
| Total | 5,648,176,303.16 | 100.00% | 616,711,352.04 | 10.92% | 5,031,464,951.12 | 6,332,915,727.57 | 100.00% | 626,240,483.49 | 9.89% | 5,706,675,244.08 |
Receivable accounts with large amount individually and bad debt provisions were provided
□Applicable √Not applicable
Account receivable on which bad debt provisions are provided on age basis in the group
√ Applicable □Not applicable
In RMB
| Aging | Balance in year-end | ||
| Account receivable | Bad debt provision | Proportion(%) | |
| Subitem Within 1 year | |||
| Subtotal within 1 year | 3,910,816,346.90 | 195,540,817.35 | 5.00% |
| 1-2 years | 1,103,635,029.32 | 110,363,502.93 | 10.00% |
| 2-3 years | 309,067,975.44 | 92,720,392.63 | 30.00% |
| 3-4 years | 161,130,166.66 | 80,565,083.33 | 50.00% |
| 4-5 years | 130,026,145.20 | 104,020,916.16 | 80.00% |
| Over 5 years | 33,500,639.64 | 33,500,639.64 | 100.00% |
| Total | 5,648,176,303.16 | 616,711,352.04 | |
Notes of the basis of recognizing the group:
The Company complies with the disclosure requirements of the No.7 Industry Information Disclosure Guidelineof Shenzhen Stock Exchange-the Listed Company that Engaged in Civil Engineering and Construction Business.
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision：
□ Applicable √ Not applicable
In the groups, other accounts receivable adopting other methods to accrue bad debt provision:
（2）Accrual period, recovery or reversal of bad debts situation
The current amount of provision for bad debts is 121,993,522.74 ; recovery or payback for bad debts Amount isRMB113,587,478.57.
Significant amount of reversed or recovered bad debt provision：
In RMB
| Name | Amount | Recovery mode |
(3) Receivable accounts actually written off in the report period
In RMB
| Items | Amount |
The significant actual write-off accounts receivable:
In RMB
| Name | Nature of account | Amount written | Reason for | Verification | Arising from |
| receivable | off | written-off | procedures | related transactions(Y/N) |
Notes：
（4）The ending balance of other receivables owed by the imputation of the top five parties
| Name | Amount in year-end |
| Account receivable | Proportion(%) | Bad debt provision | |
| China Harbour Engineering Company Ltd. | 1,003,444,178.47 | 17.77% | 118,482,837.94 |
| POWERCHINA Construction Group Ltd. | 649,904,063.29 | 11.51% | 56,522,378.64 |
| Oxley Diamond (Cambodia) Co., Ltd | 441,911,888.95 | 7.82% | 22,095,594.45 |
| Cambodia petrochemical co. LTD | 370,449,132.48 | 6.56% | 18,522,456.62 |
| Henan Henan No.1 Thermal Power Construction Co., Ltd. | 338,259,078.47 | 5.99% | 44,283,837.21 |
| Total | 2,803,968,341.66 | 49.64% | 259,907,104.86 |
（5）Account receivable which terminate the recognition owning to the transfer of the financial assets
Nil
(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of accountsreceivable
Nil
Other notes：
6. Prepayments
（1）Age analysis
In RMB
| Age | Balance in year-end | Balance in year-begin | ||
| Book balance | Proportion(%) | Book balance | Proportion(%) | |
| Within 1 year | 201,642,321.00 | 93.85% | 212,854,246.00 | 94.51% |
| 1-2 years | 8,978,204.28 | 4.18% | 11,257,454.64 | 5.00% |
| 2-3 years | 3,425,120.00 | 1.59% | 903,997.25 | 0.40% |
| Over 3 years | 803,641.00 | 0.37% | 192,829.99 | 0.09% |
| Total | 214,849,286.28 | -- | 225,208,527.88 | -- |
Notes：
(2) Top 5 of the closing balance of the prepayment colleted according to the prepayment target
| Name | Balance in year-end | Proportion |
| Boer Construction Group Co., Ltd. | 25,000,000.00 | 11.64% |
| Firstunited General Trading and Contracting Co., Ltd. | 23,828,617.02 | 11.09% |
| Jiangsu Juye Construction Group Co., Ltd. | 23,610,627.75 | 10.99% |
| Zhanjiang Construction Engineering Co., Ltd. | 22,000,000.00 | 10.24% |
| China Harbor Engineering Company Ltd. | 9,086,405.77 | 4.23% |
| Total | 103,525,650.54 | 48.19% |
Other notes7.Interest receivable
（1）Classification Interest receivable
In RMB
| Items | Balance in year-end | Balance in Year-beginning |
（2）Important overdue interest
| Name | Balance in year-end | Overdue date | Reason | Is there any impairment and its judgment basis? |
Other notes：
8.Dividend receivable
（1）Dividend receivable
In RMB
| Items | Amount in year-end | Amount in year-beginning |
（2）Dividend receivable aging over 1 years
In RMB
| Items | Amount in year-end | Age | Reason | Whether the impairment and its judgment basis |
Other notes：
9. Other accounts receivable(1) Other accounts receivable disclosed by category
In RMB
| category | Amount in year-end | Amount in year- begin | ||||||||
| Book Balance | Bad debt provision | Book value | Book Balance | Bad debt provision | Book value | |||||
| Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | |||
| Other accounts receivable with bad debt reserve withdrawn as per the portfolio of credit risk characteristics | 1,605,120,595.84 | 100.00% | 160,435,236.36 | 10.57% | 1,444,685,359.48 | 1,820,332,846.84 | 100.00% | 145,657,486.56 | 8.07% | 1,674,675,360.28 |
| Total | 1,605,120,595.84 | 100.00% | 160,435,236.36 | 10.57% | 1,444,685,359.48 | 1,820,332,846.84 | 100.00% | 145,657,486.56 | 8.07% | 1,674,675,360.28 |
Receivable accounts with large amount individually and bad debt provisions were provided
□Applicable √Not applicable
Account reveivable on which bad debt proisions are provided on age basis in the group
√ Applicable □ not applicable
In RMB
| Aging | Amount in year-end | ||
| Account receivable | Bad debt provision | Rate of alloance(%) | |
| Within item 1 year | |||
| Subtotal within 1 year | 1,164,638,654.14 | 58,231,932.71 | 5.00% |
| 1-2 years | 291,252,077.07 | 29,125,207.71 | 10.00% |
| 2-3 years | 63,835,516.06 | 19,150,654.82 | 30.00% |
| 3-4 years | 51,431,754.33 | 25,715,877.17 | 50.00% |
| 4-5 years | 28,755,151.40 | 23,004,121.12 | 80.00% |
| Over 5 years | 5,207,442.84 | 5,207,442.84 | 100.00% |
| Total | 1,605,120,595.84 | 160,428,855.19 | |
Notes：
Other receivable account in Group on which bad debt provisions were provided on percentage basis：
□Applicable √Not applicable
Other Receivable accounts on which bad debt provisions are provided by other ways in the portfolio：
□Applicable √Not applicable
（2）Bad debt provision accrual collected or switch back
Bad debt provision accrual was 46,811,290.99, the account collected or switches back amounting to RMB51,033,460.50.
Significant amount of reversed or recovered bad debt provision：
In RMB
| Name | Amount | Recovery mode |
(3) Other account receivables actually cancel after write-off
In RMB
| Items | Amount |
Of Which, Other receivable write-off：
In RMB
| Name | Nature | Amount | Reason | program | Whether the money is generated by related party transactions |
Notes：
(4) Other account receivables category by nature of money
In RMB
| Nature | Ending book balance | Beginning book balance |
| Bidding margins, performance bonds and deposits | 536,673,592.03 | 564,988,488.94 |
| Petty cash and current accounts between individuals | 62,671,091.79 | 45,065,829.65 |
| Current accounts between entities | 980,808,214.24 | 1,191,088,012.16 |
| Others | 24,967,697.78 | 19,190,516.09 |
| Total | 1,605,120,595.84 | 1,820,332,846.84 |
（5）The ending balance of other receivables owed by the imputation of the top five parties
In RMB
| Name | Nature | Year-end balance | Age | Portion in total other | Bad debt provision of year-end |
| receivables(%) | balance | ||||
| China Electric Power Construction Group Co., Ltd. | Current accounts between entities | 241,021,370.60 | Within 1 year | 15.02% | 12,051,068.53 |
| Chengdu Xianglong Real Estate Co., Ltd. | House payment and performance bond | 115,452,000.00 | 1-2 years | 7.19% | 10,390,680.00 |
| Qingyuan HefengNew Energy Technology Co., Ltd. | Current accounts between entities | 75,000,000.00 | Within 1 year | 4.67% | 22,500,000.00 |
| PT.WANXIANG NICKEL INDONESIA | Current accounts between entities | 68,000,000.00 | Within 1 year | 4.24% | 6,800,000.00 |
| Hebei Xuxing Industry Co., Ltd. | Deposit | 55,000,000.00 | 1-2 years | 3.43% | 5,500,000.00 |
| Total | -- | 554,473,370.60 | -- | 34.55% | 57,241,748.53 |
(6) Account receivables with government subsidies involved
In RMB
| Name | Project name | Amount in year-end | At the end of aging | Estimated time, amount and basis |
(7) Other account receivables recognition terminated due to transfer of financial assets(8) Other account receivables transferred and assets & liability formed by its continuous involvement
Other Notes
10.Inventory
（1）Inventory types
In RMB
| Items | Year-end balance | Year-beginning balance | ||||
| Book Balance | Provision for bad debts | Book value | Book Balance | Provision for bad debts | Book value | |
| Raw materials | 0.00 | 1,810,694.49 | 1,810,694.49 | |||
| Processing products | 0.00 | |||||
| Stock goods | 24,579,210.44 | 24,713.28 | 24,554,497.16 | 9,328,819.66 | 9,328,819.66 | |
| Construction contract has been completed unsettled assets | 680,009,952.10 | 5,051,867.60 | 674,958,084.50 | 516,478,683.84 | 5,051,867.60 | 511,426,816.24 |
| Development cost | 45,943,136.51 | 45,943,136.51 | 34,272,995.11 | 34,272,995.11 | ||
| Total | 750,532,299.05 | 5,076,580.88 | 745,455,718.17 | 561,891,193.10 | 5,051,867.60 | 556,839,325.50 |
Whether the company is required to comply with the "Shenzhen Stock Exchange Industry Information DisclosureGuidelines No. 4 - listed companies engaged in seed industry, planting business" disclosure requirements
No
(2) Inventory depreciation reserve
In RMB
| Items | Year-beginning balance | Increase | Decrease | |||
| Accrual | Other | Switch back | Other | |||
| Stock goods | 24,713.28 | 24,713.28 | ||||
| Construction contract has been completed unsettled assets | 5,051,867.60 | 5,051,867.60 | ||||
| Total | 5,051,867.60 | 24,713.28 | 5,076,580.88 | |||
(3) Explanation on inventories with capitalization of borrowing costs included at ending balance(4) Assets unsettled formed by construction contract which has completed at period-end
In RMB
| Items | Amount |
| Accumulated Incurred Cost | 20,973,059,511.19 |
| Accumulated Confirmed Gross Profit | 5,282,086,405.51 |
| Less: expected loss | 5,051,867.60 |
| Settlement Amount | 25,575,135,964.60 |
| Unliquidated Completed Assets Formed in the Construction Contract | 674,958,084.50 |
Other notes：
11. Holding assets for sale
In RMB
| Items | End book value | Fair value | Estimated disposal cost | Estimated disposal time |
Other notes：
12. Non current assets due within one year
In RMB
| Items | Year-end balance | Year-beginning balance |
Other notes：
13. Other current assets
In RMB
| Items | Year-end balance | Year-beginning balance |
| Input VAT | 16,047,813.14 | 15,347,777.42 |
| Expense of prepaid income tax | 1,779,133.63 | |
| Total | 16,047,813.14 | 17,126,911.05 |
Other notes：
14. Available-for-sale financial assets(1) Available-for-sale financial assets
In RMB
| Items | Closing balance | Opening balance | ||||
| Book balance | Provision of impairment | Book value | Book balance | Provision of impairment | Book value | |
| Available-for-sale equity instruments | 10,338,500.00 | 10,338,500.00 | 10,338,500.00 | 10,338,500.00 | ||
| Total | 10,338,500.00 | 10,338,500.00 | 10,338,500.00 | 10,338,500.00 | ||
(2) Available-for-sale financial assets measured at fair value at period-end
In RMB
| Type | Available-for-sale equity instruments | Available-for-sale Debt instruments | Total |
(3) Available-for-sale financial assets measured by cost at the period-end
In RMB
| Investee | Book balance | Impairment provision | Shareholding proportion among the investees | Cash bonus of the reporting period | ||||||
| Period-begin | Increase | Decrease | Period -end | Period-begin | Increase | Decrease | Period -end | |||
| Zhanjiang Construction Engineering | 10,338,500.00 | 10,338,500.00 | ||||||||
| Total | 10,338,500.00 | 10,338,500.00 | -- | |||||||
(4) Changes of the impairment of the available-for-sale financial assets during the reporting period
In RMB
| Type | Available-for-sale Equity instruments | Available-for-sale Debt instruments | Total |
⑸Relevant description of the end of the fair value of the equity instruments at the end of a serious decline in fair
value or non temporary decline but not related to impairment provision
In RMB
| Item of available-for-sale equity instruments | Investment cost | Ending fair value | Falling scope of fair value against the cost | Duration of falling (month) | Withdrawn impairment amount | Reason for not withdrawing the impairment |
Other notes
15. Held-to-maturity investment(1) Held-to-maturity investment
In RMB
| Items | Year-end balance | Year-beginning balance | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
(2) Important held-to-maturity investment at period-end
In RMB
| Project | Face value | Interest rate | Actual interest rate | Expiring date |
(3) Reclassify of held-to-maturity investment in the periodOther notes16. Long-term account receivables
（1）Long-term account receivables
In RMB
| Items | End of term | Beginning of term | Range of rate | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | ||
| Long-term account receivable | 16,151,975.94 | 16,151,975.94 | 14,328,557.82 | 14,328,557.82 | |||
| Total | 16,151,975.94 | 16,151,975.94 | 14,328,557.82 | 14,328,557.82 | -- | ||
(2) Long-term account receivables recognition terminated due to transfer of financial assets
Nil
(3) Long-term account receivables transferred and assets & liability formed by its continuous involvement
NilOther notes
17. Long-term equity investment
In RMB
| Investees | Opening balance | Increase/decrease | Closing balance | Closing balance of impairment provision | |||||||
| Add investment | Decreased investment | Gain/loss of Investment | Adjustment of other comprehensive income | Other equity changes | Declaration of cash dividends or profit | Withdrawn impairment provision | Other | ||||
| I. Joint ventures | |||||||||||
| Investment in subsidiaries | 3,311,211,536.66 | 3,311,211,536.66 | |||||||||
| Subtotal | 3,311,211,536.66 | 3,311,211,536.66 | |||||||||
| II. Associated enterprises | |||||||||||
| Total | 3,311,211,536.66 | 3,311,211,536.66 | |||||||||
Other notes18. Investment real estate(1) Investment real estate by cost measurement
□Applicable √ Not applicable
(2) Investment real estate by fair value
□Applicable √ Not applicable
(3) Investment real estate without certificate of ownership
In RMB
| Items | Book value | Reason |
| Nil |
Other notes
19. Fixed assets(1) List of fixed assets
In RMB
| Items | House, building | Machinery equipment | Transportations | Other equipment | Total |
| I. Original price | |||||
| 1. Balance at period-beginning | 103,857,727.50 | 99,011,854.51 | 41,578,019.37 | 14,847,444.63 | 259,295,046.01 |
| 2.Increase in the current period | 356,522,059.87 | 43,060,321.63 | 2,521,107.64 | 15,313,102.76 | 417,416,591.90 |
| (1) Purchase | 45,846.63 | 7,846,107.26 | 1,647,091.29 | 540,002.07 | 10,079,047.25 |
| （2） Transferred from construction in progress | |||||
| (3)Increased of Enterprise Combination | 356,476,213.24 | 35,214,214.37 | 874,016.35 | 14,773,100.69 | 407,337,544.65 |
| 3.Decreased amount of the period | 1,285,304.99 | 5,169.60 | 820,859.82 | 2,111.28 | 2,113,445.69 |
| （1）Disposal | 1,285,304.99 | 5,169.60 | 820,859.82 | 2,111.28 | 2,113,445.69 |
| 4. Balance at period-end | 459,094,482.38 | 142,067,006.54 | 43,278,267.19 | 30,158,436.11 | 674,598,192.22 |
| II. Accumulated depreciation | |||||
| 1.Opening balance | 19,725,422.54 | 32,621,369.35 | 20,803,056.53 | 11,608,047.03 | 84,757,895.45 |
| 2.Increased amount of the period | 204,188,862.41 | 39,081,555.76 | 2,193,383.65 | 13,357,314.31 | 258,821,116.13 |
| (1) Withdrawal | 5,102,324.52 | 5,827,473.63 | 1,631,901.79 | 1,015,611.08 | 13,577,311.02 |
| （2）other | 199,086,537.89 | 33,254,082.13 | 561,481.86 | 12,341,703.23 | 245,243,805.11 |
| 3.Decrease in the reporting period | 58,155.48 | 345,934.83 | 2,005.52 | 406,095.83 | |
| （1）Disposal | 58,155.48 | 345,934.83 | 2,005.52 | 406,095.83 |
| 4.Closing balance | 223,856,129.47 | 71,702,925.11 | 22,650,505.35 | 24,963,355.82 | 343,172,915.75 |
| III. Impairment provision | |||||
| 1.Opening balance | |||||
| 2.Increase in the reporting period | |||||
| （1）Withdrawal | |||||
| 3.Decrease in the reporting period | |||||
| （1）Disposal | |||||
| 4. Closing balance | |||||
| IV. Book value | |||||
| 1.Book value of the period-end | 235,238,352.91 | 70,364,081.43 | 20,627,761.84 | 5,195,080.29 | 331,425,276.47 |
| 2.Book value of the period-begin | 84,132,304.96 | 66,390,485.16 | 20,774,962.84 | 3,239,397.60 | 174,537,150.56 |
(2) Fixed assets temporarily idled
In RMB
| Items | Original book value | Accumulated depreciation | Provision for impairment | Book value | Remark |
(3) Fixed assets rented by finance leases
In RMB
| Items | Original book value | Accumulated depreciation | Accumulated depreciation | Book value |
| House Building | 14,392,016.02 | 12,499,205.18 | 0.00 | 1,892,810.84 |
| Machinery equipment | 41,794,318.20 | 29,583,792.38 | 0.00 | 12,210,525.82 |
(4) Fixed assets leased in the operating leases
In RMB
| Items | End book value |
(5) Fixed assets without certificate of title completed
In RMB
| Items | Book value | Reason |
| International engineering | 34,640,848.79 | Being processed |
| Suzhou plant | 8,982,474.09 | Being processed |
Other notes20. Project under construction(1)Project under construction
In RMB
| Items | Year-end balance | Year-beginning balance | ||||
| Book balance | Provision for devaluation | Book value | Book balance | Provision for devaluation | Book value | |
| Equipment and constructions in progress | 707,700.59 | 707,700.59 | 4,968,590.96 | 4,968,590.96 | ||
| Total | 707,700.59 | 707,700.59 | 4,968,590.96 | 4,968,590.96 | ||
(2) Changes of significant construction in progress
In RMB
| Name | Budget | Amount at year beginning | Increase at this period | Transferred to fixed assets | Other decrease | Balance in year-end | Proportion(%) | Progress of work | Capitalization of interest accumulated balance | Including：Current amount of capitalization of interest | Capitalization of interest ratio（%) | Source of funds |
| Facilities under install | 1,224,800.00 | 1,224,800.00 | 0.00 |
| ation | ||||||||||||
| Liangdu Central Hospital Project | 2,630,910.96 | 6,077,772.97 | 8,708,683.93 | |||||||||
| Zhigu Project | 1,112,880.00 | 3,774,408.18 | 4,887,288.18 | |||||||||
| Smart House Project | 270,700.59 | 270,700.59 | ||||||||||
| Commercial hospital | 437,000.00 | 437,000.00 | ||||||||||
| Total | 4,968,590.96 | 10,559,881.74 | 1,224,800.00 | 14,303,672.70 | -- | -- | -- |
（3）Provision for impairment of construction projects
In RMB
| Items | Amount | Reason |
Other notes
21. Engineering Material
In RMB
| Items | Closing balance | Opening balance |
Other notes22. Disposal of fixed assets
In RMB
| Items | Closing balance | Opening balance |
Other notes：
23. Productive biological assets(1) Measured by cost
□ Applicable √ Not applicable
(2) Measured by fair value
□ Applicable √ Not applicable
24. Oil-and-gas assets
□ Applicable √ Not applicable
25. Intangible assets
（1）Information
In RMB
| Items | Land use right | Patent | Non-patent Technology | Software | Total |
| I. Original price | |||||
| 1.Opening balance | 132,460,370.94 | 4,551,469.92 | 137,011,840.86 | ||
| 2.Increased amount of the period | 44,792,429.91 | 44,792,429.91 | |||
| (1) Purchase | 222,873.47 | 222,873.47 | |||
| (2)Internal Development | |||||
| (3)Increased of Enterprise Combination | 44,569,556.44 | 44,569,556.44 | |||
| 3.Decreased amount of the period | 16,360.00 | 16,360.00 | |||
| （1）Disposal | 16,360.00 | 16,360.00 | |||
| 4. Balance at period-end | 177,252,800.85 | 4,535,109.92 | 181,787,910.77 | ||
| II.Accumulated amortization |
| 1. Balance at period-beginning | 6,882,267.85 | 2,605,128.01 | 9,487,395.86 | ||
| 2. Increase in the current period | 1,094,384.00 | 401,165.06 | 1,495,549.06 | ||
| (1) Withdrawal | 1,094,384.00 | 401,165.06 | 1,495,549.06 | ||
| 3.Decreased amount of the period | |||||
| （1）Disposal | |||||
| 4. Balance at period-end | 7,976,651.85 | 3,006,293.07 | 10,982,944.92 | ||
| III. Impairment provision | |||||
| 1. Balance at period-beginning | |||||
| 2. Increase in the current period | |||||
| (1) Withdrawal | |||||
| 3.Decreased amount of the period | |||||
| （1）Disposal | |||||
| 4. Balance at period-end | |||||
| 4. Book value | |||||
| 1.Book value at period -end | 169,276,149.00 | 1,528,816.85 | 170,804,965.85 | ||
| 2.Book value at period-beginning | 125,578,103.09 | 1,946,341.91 | 127,524,445.00 |
The intangible assets by the end of the formation of the company's internal R & D accounted of the proportion ofthe balance of intangible assets
⑵Details of Land use right failed to accomplish certification of property
In RMB
| Items | Book value | Reason |
Other notes：
26. Development expenditure
In RMB
| Items | Beginning balance | Increase in the period | Decrease in period | Ending balance |
Other notes27. Goodwill(1) Original book value of goodwill
In RMB
| Name of the investees or the events formed goodwill | Opening balance | Increase | Decrease | Closing balance |
（2）Impairment provision of goodwill
In RMB
| Name of the investees or the events formed goodwill | Opening balance | Increase | Decrease | Closing balance |
Notes of the testing process of goodwill impairment, parameters and the recognition method of goodwillimpairment losses:
Other notes:
28.Long-term amortization expenses
In RMB
| Items | Balance in year-begin | Increase at this period | Amortization at this period | Decrease | Balance in year-end |
| Renovation costs | 7,029,913.15 | 0.00 | 1,977,938.70 | 5,051,974.45 | |
| Overseas guarantee fees | 3,095,000.00 | 0.00 | 1,040,913.85 | 2,054,086.15 | |
| Guarantee fees | 0.00 | 5,424,544.00 | 925,165.10 | 4,499,378.90 | |
| Less: Long-term | 0.00 |
| deferred expenses due within one year | |||||
| Total | 10,124,913.15 | 5,424,544.00 | 3,944,017.65 | 0.00 | 11,605,439.50 |
Other notes29.Deferred income tax assets/deferred income tax liabilities(1)Details of the un-recognized deferred income tax assets
In RMB
| Items | Balance in year-end | Balance in year-begin | ||
| Deductible temporary difference | Deferred income tax assets | Deductible temporary difference | Deferred income tax assets | |
| Provision for asset impairment | 777,146,588.40 | 117,065,718.40 | 734,228,861.56 | 133,462,054.67 |
| Total | 777,146,588.40 | 117,065,718.40 | 734,228,861.56 | 133,462,054.67 |
(2)Details of the un-recognized deferred income tax liabilities
In RMB
| Items | Balance in year-end | Balance in year-begin | ||
| Temporarily Deductible or Taxable Difference | Deferred Income Tax liabilities | Temporarily Deductible or Taxable Difference | Deferred Income Tax liabilities | |
| Appraised increment of assets for business combination not under the same control | 278,236,528.90 | 51,894,878.61 | 104,355,846.82 | 26,088,961.71 |
| Total | 278,236,528.90 | 51,894,878.61 | 104,355,846.82 | 26,088,961.71 |
(3) Deferred income tax assets or liabilities listed by net amount after off-set
In RMB
| Items | Trade-off between the deferred income tax assets and liabilities | End balance of deferred income tax assets or liabilities after off-set | Trade-off between the deferred income tax assets and liabilities at period-begin | Opening balance of deferred income tax assets or liabilities after off-set |
| Deferred income tax assets | 117,065,718.40 | 118,233,337.36 |
| Deferred income liabilities | 51,894,878.61 | 26,088,961.71 |
(4)Details of income tax assets not recognizedIn RMB
| Items | End of term | Beginning of term |
| Deductible provisional differences | 11,552,823.18 | |
| Deductible losses | 3,133,043.61 | |
| Total | 14,685,866.79 |
(5) The un-recognized deductible losses of deferred income tax assets will due in the following years:
In RMB
| Year | End of term | Beginning of term | Remark |
Other notes：
30 .Other non-current assets
In RMB
| Items | Closing balance | Opening balance |
| PPP project investment | 623,524,570.00 | 610,524,570.00 |
| Advances for purchase of long-term assets | 278,480,672.79 | 283,729,420.79 |
| Other investment | 188,562,089.12 | 175,340,581.32 |
| Total | 1,090,567,331.91 | 1,069,594,572.11 |
Other notes：
31 .Short-term loans
（1）Category of short-term borrowings
In RMB
| Items | End of term | Beginning of term |
| Pledge borrowings | 713,964,614.92 | 2,137,870,000.00 |
| Mortgage borrowings | 43,613,550.00 | 150,000,000.00 |
| Guaranteed borrowings | 1,780,935,316.32 | 1,189,330,420.55 |
| Commercial acceptance bills endorsed or discounted but not expired on the balance sheet date | 260,000,000.00 | |
| Total | 2,798,513,481.24 | 3,477,200,420.55 |
Notes to short-term borrowings:
(2) Situation of Overdue Outstanding Short-Term BorrowingFinal overdue outstanding short-term borrowing was zero, and situation of important overdue outstanding
short-term borrowing was as follows:
In RMB
| Unit | Closing balance | Interest rate | Time | Overdue interest rate |
Other notes：
32. Financial liabilities measured at fair value through current profit and loss
In RMB
| Items | Closing balance | Opening balance |
Other notes：
33. Derivative financial liabilities
□ Applicable√ Not applicable
34. Note payable
In RMB
| Type | Closing balance | Opening balance |
| Commercial acceptance | 475,745,011.64 | 283,190,010.00 |
| Bank acceptance | 406,499,093.71 | 623,407,978.15 |
| Total | 882,244,105.35 | 906,597,988.15 |
Amount due in next fiscal period is RMB 0.00.35.Account payable
（1）Account payable
In RMB
| Items | Closing balance | Opening balance |
| Project engineering Fund | 1,212,049,028.27 | 1,704,130,649.60 |
| Payments for purchase of long-term assets | ||
| Payment for purchase of medicines | 14,413,189.08 | 15,448,438.02 |
| Total | 1,226,462,217.35 | 1,719,579,087.62 |
（2）Significant accounts payable that aged over one year
In RMB
| Items | Balance in year-end | The reason for not repaid or carried forward |
Other notes：
36. Accounts received in advance(1)Accounts received in advance
In RMB
| Items | End of term | Beginning of term |
| Project engineering Fund | 127,873,130.27 | 145,513,588.44 |
| Accounts received in advance | 1,178,716.78 | 866,264.23 |
| Total | 129,051,847.05 | 146,379,852.67 |
(2) Accounts payable with major amount and aging of over one year
In RMB
| Items | Closing balance | Reason |
（3）Information of unliquidated completed assets formed in the construction contract at the end of the
period
In RMB
| Items | Amount |
Other notes：
37. Employee compensation payable(1)Classification of employee compensation payable
In RMB
| Items | Balance in year-begin | Increase at this period | Decrease at this period | Balance in year-end |
| I. Short-term remuneration | 20,728,678.96 | 184,496,842.64 | 157,373,141.87 | 47,852,379.73 |
| II. Post-employment benefits - defined contribution plans | 1,182,863.11 | 6,641,104.76 | 6,757,615.11 | 1,066,352.76 |
| Total | 21,911,542.07 | 191,137,947.40 | 164,130,756.98 | 48,918,732.49 |
（2）Short-term remuneration
In RMB
| Items | Balance in year-begin | Increase at this period | Decrease at this period | Balance in year-end |
| 1.Wages, bonuses, | 20,123,644.40 | 158,998,753.48 | 132,734,677.09 | 46,387,720.79 |
| allowances and subsidies | ||||
| 2.Employee welfare | 13,049,019.18 | 12,296,647.62 | 752,371.56 | |
| 3. Social insurance premiums | 596,755.82 | 8,448,938.02 | 8,469,807.65 | 575,886.19 |
| Including：Medical insurance | 501,699.51 | 8,003,871.21 | 8,026,724.98 | 478,845.74 |
| Work injury insurance | 22,668.30 | 105,889.90 | 102,612.16 | 25,946.04 |
| Maternity insurance | 72,388.01 | 339,176.91 | 340,470.51 | 71,094.41 |
| 4. Public reserves for housing | 8,278.74 | 3,850,080.17 | 3,751,822.88 | 106,536.03 |
| 5.Union funds and staff education fee | 150,051.79 | 120,186.63 | 29,865.16 | |
| Total | 20,728,678.96 | 184,496,842.64 | 157,373,141.87 | 47,852,379.73 |
（3）Defined contribution plans listed
In RMB
| Items | Balance in year-begin | Increase at this period | Decrease at this period | Balance in year-end |
| 1. Basic old-age insurance premiums | 1,153,676.86 | 6,380,445.34 | 6,496,828.20 | 1,037,294.00 |
| 2.Unemployment insurance | 29,186.25 | 260,659.42 | 260,786.91 | 29,058.76 |
| Total | 1,182,863.11 | 6,641,104.76 | 6,757,615.11 | 1,066,352.76 |
Other notes:
38. Taxes payable
In RMB
| Items | Closing balance | Opening balance |
| VAT | 153,383,283.46 | 32,678,325.28 |
| Enterprise Income tax | 229,594,535.61 | 239,018,994.88 |
| Individual income tax | 265,138.45 | 374,031.94 |
| City Construction tax | 3,509,945.52 | 3,928,587.22 |
| Stamp Tax and other taxes | 220,312.15 | 360,597.97 |
| Educational surtax | 2,643,096.05 | 2,983,381.35 |
| Business tax | 74,773,921.03 | 78,101,559.07 |
| Total | 464,390,232.27 | 357,445,477.71 |
Other notes：
39. Interest payable
In RMB
| Items | Closing balance | Opening balance |
| Long-term loan interest payable | 171,538.58 | 10,819,629.22 |
| Interest payable on short-term borrowings | 1,604,539.03 | 5,285,634.63 |
| Total | 1,776,077.61 | 16,105,263.85 |
Particulars of significant overdue unpaid interest:
In RMB
| Name | Overdue amount | Overdue reason |
Other notes：
40. Dividends payable
In RMB
| Items | Closing balance | Opening balance |
Note: Including significant unpaid dividends payable over one year, the unpaid reason shall be disclosed:
41. Other accounts payable(1) Other accounts payable listed by nature of the account
In RMB
| Items | Closing balance | Opening balance |
| Bidding margins, performance bonds and deposits | 53,631,024.27 | 48,363,917.10 |
| Current accounts between individuals and withholding payables | 74,841,390.56 | 14,453,897.50 |
| Lendings to shareholders | ||
| Current accounts between entities | 1,192,725,603.51 | 450,793,562.35 |
| Other | 1,515,785.47 | 2,854,044.18 |
| Payment for subscription of non-public offerings | 0.00 | 4,500,000.00 |
| Total | 1,322,713,803.81 | 520,965,421.13 |
(2) Other payables with large amount and aging of over one year
In RMB
| Items | Ending balance | Reason |
Other notes
42. Divided into liability held for sale
In RMB
| Items | Closing balance | Opening balance |
Other notes：
43.Non-current liabilities due within 1 year
In RMB
| Items | Closing balance | Opening balance |
| Long-term loans due 1 year | 487,657,918.14 | 820,422,471.45 |
| Total | 487,657,918.14 | 820,422,471.45 |
Other notes：
44.Other current liabilities
In RMB
| Items | Closing balance | Opening balance |
| Output tax to be carried forward | 121,529,600.95 | |
| Total | 121,529,600.95 |
Increase or decrease in short-term bonds payable：
In RMB
| Name | Par value | Issuing date | Term | Issuing amount | Amount in year-begin | This issue | Interest | Premium and discount amortization | This period for repayment | Balance in year-end |
Other notes：
45. Long-term loan(1) Category of long-term loan
In RMB
| Items | Balance in year-end | Balance in year-begin |
| Pledged borrowings | 400,000,000.00 | |
| Mortgage borrowings | 16,839,164.49 | 16,839,164.49 |
| Guarantee loan | 456,250,000.00 | 826,253,306.53 |
| Total | 873,089,164.49 | 843,092,471.02 |
Notes of short-term loans category:
Other notes including interest rate range:
46.Bond payable
（1）Bond payable
In RMB
| Items | Closing balance | Opening balance |
| 1.Qianhai Wutong Private bond No.2016070 | 100,000,000.00 | 100,000,000.00 |
| 2 First period bond financing plan of Sino Great Wall International Engineering Co., Ltd. in 2017 | 245,000,000.00 | 245,000,000.00 |
| Total | 345,000,000.00 | 345,000,000.00 |
(2) Changes on bonds payable (not including other financial instrument classified as preferred stock andperpetual capital securities of financial liabilities)
In RMB
| Bond name | Par value | Date of issue | Bond period | Issued amount | Opening balance | Issue of current period | Interests withdrawn as per par value | Amortization of premium or discount | Amount repaid of current | Ending balance | |
| 1.Qianhai Wutong Private bond No.2016070 | 100,000,000.00 | 2017-1-6 | 2019-1-6 | 99,800,000.00 | 99,800,000.00 | 6,200,000.00 | |||||
| 2 First period bond financing plan of Sino Great Wall | 245,000,000.00 | 2017-10-31 | 2020-10-31 | 245,000,000.00 | 245,000,000.00 | 2,440,334.25 |
| International Engineering Co., Ltd. in 2017 | |||||||||||
| Total | -- | -- | -- | 344,800,000.00 | 344,800,000.00 | 8,640,334.25 |
(3) Note to conditions and time of share transfer of convertible bonds
（4）Other financial instruments that are classified as financial liabilities
The issuance of preferred stock and other financial instruments such as perpetual debtTable of changes in financial instruments such as preferred stock and perpetual debt
In RMB
| External financial instruments | Balance in year-begin | Increase at this period | Decrease at this period | Balance in year-end | ||||
| Amount | Book value | Amount | Book value | Amount | Book value | Amount | Book value | |
Notes
47. Long-term payable(1) Long-term payable listed by nature of the account
In RMB
| Items | Closing balance | Opening balance |
| Accrued financial lease outlay | 63,606,067.75 | 81,945,567.86 |
Other notes：
48. Long-term employee salary payable
（1）Long-term employee salary payable
In RMB
| Items | Closing balance | Opening balance |
(2) Changes of defined benefit plansPresent worth of defined benefit plans obligation:
In RMB
| Items | Closing balance | Opening balance |
Plan assets：
In RMB
| Items | Closing balance | Opening balance |
Net liabilities(net assets) of defined benefit plans
In RMB
| Items | Closing balance | Opening balance |
Notes to the influence of the content and related risk of defined benefit plans to the future cash flows, time anduncertainty of the Company:
Notes to analysis results of major actuarial assumptions and sensibility of defined benefit plansOther notes:
49. Specific payable
In RMB
| Items | Balance in year-begin | Increase at this period | Decrease at this period | Balance in year-end | Reason |
Other notes：
50. Estimates liabilities
In RMB
| Items | Balance in year-end | Balance in year-begin | Reason |
| Pending litigation | 2,958,723.15 | 3,414,189.15 | Provision for pending litigation of the Company |
| Total | 2,958,723.15 | 3,414,189.15 | -- |
Other notes：
51.Deferred income
In RMB
| Items | Balance in year-begin | Increase at this period | Decrease at this period | Balance in year-end | Reason |
| Germany Hospital | 5,999,151.77 | 5,999,151.77 | |||
| Total | 5,999,151.77 | 5,999,151.77 | -- |
Details of government subsidies
In RMB
| Items | Beginning of term | New subsidy in current period | Amount transferred to | Other changes | End of term | Asset-related or income-related |
Other notes：
52.Other Non-current liabilities
In RMB
non-operational
income
Items
| Items | Closing balance | Opening balance |
Other notes：
53.Stock capital
In RMB
| Balance Year-beginning | Increase/decrease this time (+ , - ) | Balance year-end | |||||
| Issuing of new share | Bonus shares | Transferred from reserves | Other | Subtotal | |||
| Total of capital shares | 1,698,245,011.00 | 1,698,245,011.00 | |||||
Other notes：
54. Other equity instruments(1) Basic information of preferred stock, perpetual capital securities and other financial instruments
outstanding issued at period-end(2) Change list of preferred stock, perpetual capital securities and other financial instruments outstandingissued at period-end
In RMB
| Financial instruments outstanding issued | Opening period | Increase | Decrease少 | Closing period | ||||
| Amount | Book value | Amount | Book value | Amount | Book value | Amount | Book value | |
Changes, reason of change and basis of relevant accounting treatment of other equity instruments in reportingperiod:
Notes:
55. Capital reserves
In RMB
| Items | Year-beginning balance | Increase in current | Decrease in current | Year-end balance |
| Share premium | -857,285,524.28 | -857,285,524.28 | ||
| Other | -442,064,177.46 | -442,064,177.46 | ||
| Total | -1,299,349,701.74 | -1,299,349,701.74 |
Other notes, including changes and reason of change:
56.Treasury stock
In RMB
| Items | Year-beginning balance | Increase in the current | Decrease in the current period | Year-end balance |
Other notes, including changes and reason of change:
57. Other comprehensive income
In RMB
| Items | Year-beginning balance | Amount of current period | Year-end balance | ||||
| Amount for the period before income tax | Less：Previously recognized in profit or loss in other comprehensive income | Less：Income tax | After - tax attributable to the parent company | After - tax attributable to minority shareholders | |||
| 2.Other comprehensive income re-classifiable to profit or loss in subsequent periods | 858,242.13 | -263,008.36 | -263,008.36 | 595,233.77 | |||
| Balance form the translation of foreign currency financial statements | 858,242.13 | -263,008.36 | -263,008.36 | 595,233.77 | |||
| Total of Other comprehensive income | 858,242.13 | -263,008.36 | -263,008.36 | 595,233.77 | |||
Other notes, including the adjustment of the recognition of initial amount of effective part of the cash flowhedging gains and losses
58. Special reserves
In RMB
| Items | Year-beginning balance | Increase in the current | Decrease in the current period | Year-end balance |
| Safety production cost | 164,231,078.18 | 7,271,059.70 | 100,962,846.23 | 70,539,291.65 |
| Total | 164,231,078.18 | 7,271,059.70 | 100,962,846.23 | 70,539,291.65 |
Other notes, including changes and reason of change:
59. Surplus reserve
In RMB
| Items | Year-beginning balance | Increase in the current period | Decrease in the current period | Year-end balance |
| Statutory surplus reserve | 84,394,441.23 | 84,394,441.23 | ||
| Total | 84,394,441.23 | 84,394,441.23 |
Other note, including changes and reason of change60. Retained profits
In RMB
| Items | Amount of current period | Amount of previous period |
| After adjustments: Retained profits at the period beginning | 1,503,103,396.72 | 1,228,970,498.86 |
| Retained profits at the period end | 1,651,166,244.75 | 1,395,682,248.23 |
As regards the details of adjusted the beginning undistributed profits(1)As the retroactive adjustment on Enterprise Accounting Standards and its related new regulations, the affectedbeginning undistributed profits are RMB 0.00.(2) As the change of the accounting policy, the affected beginning undistributed profits are RMB 0.00.(3) As the correction of significant accounting error, the affected beginning undistributed profits are RMB 0.00 .(4) As the change of consolidation scope caused by the same control, the affected beginning undistributed profitsare RMB 0.00.(5) Other adjustment of the total affected beginning undistributed profits are RMB 0.00 .
61. Business income, Business cost
In RMB
| Items | Amount of current period | Amount of previous period |
| Income | Cost | Income | Cost | |
| Main business | 1,586,667,973.99 | 1,312,150,678.84 | 3,024,948,121.79 | 2,319,597,133.26 |
| Other business | 303,601.25 | 61,423.62 | 134,235.01 | 1,482.50 |
| Total | 1,586,971,575.24 | 1,312,212,102.46 | 3,025,082,356.80 | 2,319,598,615.76 |
62. Business tax and subjoin
In RMB
| Items | Amount of current period | Amount of previous period |
| Urban construction tax | 505,520.08 | 1,042,829.78 |
| Education surcharg | 394,400.96 | 655,066.85 |
| Property tax | 68,451.48 | |
| Land use tax | 47,718.08 | |
| Stamp tax | 351.80 | 128,521.10 |
| Other | 1,206,245.21 | |
| Total | 2,106,518.05 | 1,942,587.29 |
Other notes63.Sales expenses
In RMB
| Items | Amount of current period | Amount of previous period |
| Wage | 2,243,754.49 | 4,603,916.86 |
| Office fee | 132,464.60 | 4,078,158.29 |
| Travel | 99,055.21 | 393,660.38 |
| Business expenses | 308,931.00 | 128,844.14 |
| Advertising | 125,500.00 | 47,834.95 |
| Advertising | 11,051,634.52 | 7,849,265.92 |
| Other | 2,560,282.26 | 992,905.85 |
| Total | 16,521,622.08 | 18,094,586.39 |
Other notes：
64. Administrative expenses
In RMB
| Items | Amount of current period | Amount of previous period |
| Wage | 67,710,884.17 | 68,871,087.57 |
| Office fee | 3,693,918.16 | 8,687,944.68 |
| Rental fees | 8,715,549.21 | 7,347,823.86 |
| Travel expenses | 4,994,824.31 | 5,571,017.05 |
| Entertainment expenses | 4,984,925.91 | 3,996,369.24 |
| Depreciation of fixed assets | 8,618,171.30 | 6,270,469.80 |
| Vehicle costs | 1,575,536.62 | 1,479,810.31 |
| Amortization of long-term prepaid expenses | 2,076,778.32 | 1,939,541.82 |
| Consulting fees | 20,133,330.03 | 7,555,211.52 |
| Entertainment expenses | 821,120.23 | 823,301.14 |
| Conference expenses | 121,178.39 | 58,389.00 |
| Tax fee | 311,342.47 | |
| Cultivate fee | 37,574.26 | |
| Insurance fee | 582,826.56 | |
| Transportation changes | 930,008.46 | 930,631.36 |
| Other | 3,531,636.46 | 10,713,417.51 |
| Total | 127,907,861.57 | 125,176,758.15 |
Other notes：
65. Financial expenses
In RMB
| Items | Amount of this period | Amount of last period |
| Interest expenses | 174,606,407.88 | 96,401,355.73 |
| Less: Interest income | 6,490,217.11 | 4,508,510.14 |
| Gains or losses on exchange | -32,447,772.71 | 28,659,038.33 |
| Discount interest | 2,767,616.98 | |
| Guarantee expenses | 8,617,206.29 | |
| Handling charges and others | 10,271,507.13 | 7,875,102.40 |
| Total | 145,939,925.19 | 139,811,809.59 |
Other notes：
66.Loss of assets impairment
In RMB
| Items | Amount of this period | Amount of last period |
| Losses on bad debts | 4,183,874.66 | 89,110,933.27 |
| Total | 4,183,874.66 | 89,110,933.27 |
Other notes：
67. Gains from changes in fair value
In RMB
| Source of the gains from changes in fair value | Amount of this period | Amount of last period |
Other notes：
68. Investment income
In RMB
| Items | Amount of this period | Amount of last period |
| Long-term equity investment income by equity method | 5,171,892.51 | |
| Hold the investment income during from available-for-sale financial assets | 0.00 | |
| Total | 5,171,892.51 |
Other notes：
69.Assets disposal income
In RMB
| Source | Amount of this period | Amount of last period |
Other notes：
70. Other income
In RMB
| Source | Amount of this period | Amount of last period |
71. Non-operating income
In RMB
| Items | Amount of current period | Amount of previous period | Recorded in the amount of the non-recurring gains and losses |
| Government Subsidy | 935,867.42 | 60,363.52 | |
| Other | 178,957,486.84 | 4,384,261.26 | |
| Total | 179,220,495.20 | 4,444,624.78 |
Government subsidy reckoned into current gains/losses
In RMB
| Items | Issuing subject | Reason | Nature | Whether the impact of subsidies on the current profit and loss | Whether special subsidies | Amount of current period | Amount of previous period | Assets-related/income -related |
Other notes：
72. Non-operating expenses
In RMB
| Items | Amount of current period | Amount of previous period | The amount of non-operating gains & losses |
| Other | 636,300.61 | 93,122.33 | |
| Total | 636,300.61 | 93,122.33 |
Other notes：
73 .Income tax expenses(1) Table of income tax expenses
In RMB
| Items | Amount of current period | Amount of previous period |
| Current income tax expenses | 18,832,808.48 | 68,435,528.34 |
| Deferred income tax expenses | -42,571.69 | -12,208,390.09 |
| Total | 18,790,236.79 | 56,227,138.25 |
(2) Adjustment progress of accounting profit and income tax
In RMB
| Items | Amount of current period |
| Total profits | 161,855,758.33 |
| Expense of income tax calculated with statutory [or applicable] tax rate | 18,832,808.48 |
| Influences of deductible temporary difference or deductible loss of non-confirmed deferred income tax assets in the current period | -42,571.69 |
| Income tax expense | 18,790,236.79 |
Other notes74 .Other comprehensive incomeMore details can be seen in Note.75.Items of Cash flow statement
（1）Other cash received from business operation
In RMB
| Items | Amount of current period | Amount of previous period |
| Interest income | 8,884,622.44 | 5,594,387.25 |
| Bond, deposit and other intercourse funds | 3,587,412,932.81 | 2,961,878,910.22 |
| Governmental subsidy | 0.00 | |
| Total | 3,596,297,555.25 | 2,967,473,297.47 |
Notes：
(2)Other cash paid related to operating activities
In RMB
| Items | Amount of current period | Amount of previous period |
| Handling charges | 8,436,090.29 | 9,715,737.69 |
| Margin and deposit expenses | 507,914,597.76 | 390,616,487.26 |
| Selling expenses | 2,108,633.03 | 1,218,208.55 |
| General and administrative expenses | 164,665,583.14 | 103,574,686.71 |
| Current accounts | 1,894,830,019.27 | 2,939,598,205.33 |
| Total | 2,577,954,923.49 | 3,444,723,325.54 |
Notes：
（3）Other Cash received related to investment activities
In RMB
| Items | Amount of current period | Amount of previous period |
Notes：
（4）Other Cash payable related to investment activities
In RMB
| Items | Amount of current period | Amount of previous period |
Notes
（5）Other Cash received related to Financing activities
In RMB
| Items | Amount of current period | Amount of previous period |
Notes：
（6）Other Cash payable related to Financing activities
In RMB
| Items | Amount of current period | Amount of previous period |
| Paid personal or company financing fund | ||
| Paid trust deposit | ||
| Paid financing fees | 60,833.33 | |
| Total | 60,833.33 |
Notes：
76. Supplement Information for cash flow statement
（1）Supplement Information for cash flow statement
In RMB
| Supplement Information | Amount of current period | Amount of previous period |
| I. Adjusting net profit to cash flow from operating activities | -- | -- |
| Net profit | 143,065,521.54 | 279,471,430.55 |
| Add: Impairment loss provision of assets | 4,183,874.66 | 89,110,933.27 |
| Depreciation of fixed assets, oil and gas assets and consumable biological assets | 12,300,753.00 | 6,270,469.80 |
| Amortization of intangible assets | 804,312.23 | 1,754,011.80 |
| Amortization of Long-term deferred expenses | 6,993,115.98 | 1,939,541.82 |
| Loss from fixed asset retirement | -570,793.76 | |
| Financial expenses | 145,939,925.19 | 139,811,809.59 |
| Investment loss | -5,171,892.51 | |
| Decrease in deferred income tax assets | 1,167,618.96 | -14,181,797.35 |
| Increased of deferred income tax liabilities | 25,805,916.90 | -956,819.50 |
| Decrease of inventories | -175,020,420.56 | 30,297,693.75 |
| Decease of operating receivables | 628,339,650.86 | -1,224,519,302.24 |
| Increased of operating Payable | 310,326,783.14 | 155,004,448.32 |
| Net cash flows arising from operating activities | 1,098,164,365.63 | -535,997,580.19 |
| II. Significant investment and financing activities that without cash flows: | -- | -- |
| III．Movement of cash and cash equivalents： | -- | -- |
| Ending balance of cash equivalents | 258,018,921.01 | 1,446,473,740.35 |
| Less: Beginning balance of cash equivalents | 647,222,590.49 | 943,705,322.41 |
| Net increase of cash and cash equivalents | -389,203,669.48 | 502,768,417.94 |
（2）Net Amount of Cash Paid for Acquisition of Subsidiaries in Current Period
In RMB
| Amount | |
| Including | -- |
| Including | -- |
| Including | -- |
Other notes：
(3) Net Cash receive of disposal of the subsidiary
In RMB
| Amount | |
| Including | -- |
| Including | -- |
| Including | -- |
Other notes：
（4）Composition of cash and cash equivalents
In RMB
| Items | Balance in year-end | Balance in year-Beginning |
| I. Cash | 258,018,921.01 | 647,222,590.49 |
| Of which: Cash in stock | 5,400,461.90 | 1,446,473,740.35 |
| Bank savings could be used at any time | 252,595,053.91 | |
| III. Balance of cash and cash equivalents at the period end | 258,018,921.01 | 647,222,590.49 |
Other notes：
77. Note of statement of changes in the owner's equityExplain "other" project name and adjustment amount of the adjustment of closing balance in previous year, etc.
78. The assets with the ownership or use right restricted
In RMB
| Items | Book value in year-end | Reason |
Other notes：
79. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
| Items | Closing foreign currency balance | Exchange rate | Closing convert to RMB balance |
| Monetary fund | -- | -- | |
| Including：USD | 5,809,831.62 | 6.6166 | 38,441,331.90 |
| Euro | 11,513.17 | 7.6515 | 88,093.02 |
| HKD | 11,055,871.58 | 0.8431 | 9,321,205.33 |
| Riyal | 11,513.17 | 7.6515 | 88,093.02 |
| Rupee（Sri lank） | 683,729.38 | 1.8172 | 1,242,505.85 |
| MOP | 39,853,766.22 | 0.0418 | 1,665,801.83 |
| Peso | 109,000.18 | 0.8193 | 89,302.95 |
| MMK | 1,386,804.51 | 0.1238 | 171,623.40 |
| RM | 49,448,624.06 | 0.0047 | 230,572.07 |
| KWD | 2,498,160.73 | 1.6373 | 4,090,316.38 |
| IDR | 186,517.21 | 21.8767 | 4,080,376.17 |
| LAK | 2,870,713.86 | 0.0005 | 1,321.35 |
| Ruble | 14,502,000.00 | 0.0008 | 11,387.84 |
| DHS | 5,090,933.47 | 0.1054 | 536,486.34 |
| THB | 478,180.27 | 1.8020 | 861,679.23 |
| 1,643,613.35 | 0.1998 | 328,368.03 | |
| Account receivable | -- | -- | |
| Including：USD | 145,530,006.35 | 6.6166 | 962,913,840.04 |
| Euro | 338,667.52 | 7.6515 | 2,591,314.53 |
| HKD | |||
| Rupee（Sri lank） | 765,226,004.27 | 0.0418 | 31,984,803.41 |
| GBP | 1,362,817.67 | 0.8193 | 1,116,545.24 |
| KWD | 61,330,313.16 | 21.8767 | 1,341,703,256.92 |
| Riyal | 357,701,359.03 | 1.8172 | 650,032,082.44 |
| RM | 64,298,948.73 | 1.6373 | 105,278,671.68 |
| DZD | 19,555,262.81 | 0.0562 | 1,098,185.82 |
| Long –term borrowing | -- | -- | |
| Including：USD | |||
| Euro | |||
| HKD | |||
| Advances to suppliers | 0.00 | 0.00 | |
| Including：USD | 2,271,051.61 | 6.6166 | 15,026,640.08 |
| Riyal | 158,589.22 | 1.8172 | 288,195.94 |
| RM | 856,048.89 | 1.6373 | 1,401,635.51 |
| Rupee (Sri Lanka) | 5,075,716.69 | 0.0418 | 212,154.06 |
| Ruble | 28,343,100.63 | 0.1054 | 2,986,816.94 |
| KWD | 4,268,471.62 | 21.8767 | 93,379,961.38 |
| Other receivable | 0.00 | 0.00 | |
| Including：USD | 2,229,411.69 | 6.6166 | 14,751,125.39 |
| HKD | 7,164.68 | 0.8431 | 6,040.54 |
| Rupee (Sri Lanka) | 40,133,778.80 | 0.0418 | 1,677,505.75 |
| RM | 2,100,482.03 | 1.6373 | 3,439,184.66 |
| Peso | 146,997.00 | 0.1238 | 18,191.55 |
| DZD | 0.00 | 0.0562 | 0.00 |
| MMK | 25,039,954.91 | 0.0047 | 116,757.83 |
| THB | 146,175.05 | 0.1998 | 29,203.47 |
| Riyal | 136,256,996.76 | 1.8172 | 247,612,756.05 |
| Ruble | 4,943,825.61 | 0.1054 | 520,984.00 |
| DHS | 3,277,277.06 | 1.8020 | 5,905,642.16 |
| Euro | 0.00 | 7.6515 | 0.00 |
| KWD | 1,460,981.66 | 21.8767 | 31,961,419.25 |
| Account payable | 0.00 | 0.00 | |
| Including：USD | 59,110,187.50 | 6.6166 | 391,108,466.61 |
| Riyal | 6,064,647.10 | 1.8172 | 11,020,967.87 |
| Rupee (Sri Lanka) | 405,424,265.53 | 0.0418 | 16,945,863.52 |
| Peso | 44,130.43 | 0.1238 | 5,461.34 |
| RM | 28,495,338.26 | 1.6373 | 46,656,304.97 |
| MMK | 1,121,875.00 | 0.0047 | 5,231.15 |
| Ruble | 726,164.63 | 0.1054 | 76,523.77 |
| THB | 4,536.36 | 0.1998 | 906.29 |
| KWD | 1,529,180.73 | 21.8767 | 33,453,388.06 |
| Advance receipts | 0.00 | 0.00 | |
| Including：USD | 0.00 | 6.6166 | 0.00 |
| DZD | 393,934,866.66 | 0.0562 | 22,122,621.93 |
| Euro | 0.00 | 7.6515 | 0.00 |
| DHS | 5,533,806.27 | 1.8020 | 9,971,900.15 |
| THB | 0.00 | 0.1998 | 0.00 |
| Other payable | 0.00 | 0.00 | |
| Including：USD | 316,436.18 | 6.6166 | 2,093,731.63 |
| Peso | 8,447.15 | 0.1238 | 1,045.37 |
| Riyal | 70,300.00 | 1.8172 | 127,752.54 |
| HKD | 407.62 | 0.8431 | 343.66 |
| KWD | 865,313.29 | 21.8767 | 18,930,176.61 |
| RM | 1,090,569.89 | 1.6373 | 1,785,624.05 |
| Rupee (Sri Lanka) | 39,528,917.53 | 0.0418 | 1,652,223.85 |
| Ruble | 14,110.76 | 0.1054 | 1,487.00 |
| DHS | 1,350.00 | 1.8020 | 2,432.70 |
Other notes：
(2) Explanation on foreign operational entity, as for major foreign operational entity, disclosed foreign mainoperation land, book-keeping currency and basis; and disclosed reasons if the book-keeping currency changed
□ Applicable √Not applicable
80. HedgingDisclose hedging items by type of hedging as well as relevant arbitrage tool, qualitative and quantitative
information for arbitrage project:
81.OtherVIII. Changes of consolidation scope1. Enterprise consolidation not under the same control
（1）Business combinations not under common control in the reporting period
In RMB
| Acquiree | Timing of acquisition of equities | Costs for acquisition of equities | Proportion of equities acquired (%) | Method of acquisition of equities | Acquisition date | Recognition basis of the acquisition date | Revenue of the acquire from the acquisition date | Net profit of the acquiree from the acquisition date |
Other notes：
（2）Combination cost and goodwill
In RMB
| Combination cost |
Notes to determination method, consideration and changes of fair value of combined cost:
The main formation reason for the large goodwill:
Other notes:
(3) The identifiable assets and liabilities of acquiree at purchase date
In RMB
| Fair value on the acquisition date | Book value on the acquisition date | |
Determination method for fair value of the identifiable assets and liabilities:
Contingent liability of the acquiree bear during combination:
Other explanation:
(4) The profit or loss from equity held by the date before acquisition in accordance with the fair value
measured again
Whether there is a transaction that through multiple transaction step by step to realize enterprises merger and
gaining the controlling the reporting period
□ Yes √ No
(5) Note to merger could not be determined reasonable consideration or Identifiable assets, Fair value ofliabilities of the acquiree at acquisition date or closing period of the merge(6) Other notes:
2. Business combination under the same control(1) Business combination under the same control during the reporting period
In RMB
| Combined party | Proportion of the profits | Basis | Combination date | Recognition basis of combination date | Income from the period-begin to the combination date of the combination | Net profits from the reporting period to the combination date of the combination | Income during the period of comparison | Net profits during the period of comparison |
Other notes：
(2) Combination cost
In RMB
| Combination cost |
Notes to contingent consideration or other changes:
Other notes:
(3) The book value of the assets and liabilities of the combined party at combining date
In RMB
| Combination date | Last closing period | |
Notes to contingent consideration or other changes:
Other notes:
3. Counter purchaseBasic information of trading, the basis of transactions constitute counter purchase, the retain assets , liabilities ofthe listed companies whether constituted a business and its basis, the determination of the combination costs, theamount and calculation of adjusted rights and interests in accordance with the equity transaction process.4. The disposal of subsidiaryWhether there is a single disposal of the investment to subsidiary and lost control
□ Yes √ No
In RMB
| Name | Equity disposal price | Equity disposal ratio | Disposal of equity | Loss of control point | Determining the basis for | The difference | Proportion of remainin | The book value of | The fair value of the | Regaining gains or losses | Determination of the fair | The amount of other |
| the loss of control | between the disposal price and the share of the subsidiary's net assets at the level of the consolidated financial statement corresponding to the disposal of the investment | g stocks at the date of loss of control | the remaining equity at the date of loss of control | remaining equity at the date of loss of control | arising from re-measurement of the remaining equity at fair value | value of the remaining equity at the date of loss of control rights and its main assumptions | comprehensive income related to the atomic company's equity investment transferred to investment profit and loss |
Other notes：
Whether there are multiple transactions step by step dispose the investment to subsidiary and lost control inreporting period
□ Yes √ No
5. Other reasons for the changes in combination scopeNotes to reasons for the changes in combination scope (Newly established subsidiary and subsidiary of liquidation)and relevant information:
6.Other
IX. Equity in other entity
1. Equity in subsidiary
（1）Constitute of enterprise group
| Subsidiary | Main operation | Registered place | Business nature | Share-holding ratio | Acquired way | |
| Directly | Indirectly | |||||
| Sino Great Wall International Engineering Co., Ltd. | Beijing | Beijing | Decoration industry | 100.00% | Under non-common control | |
| Sino Great Wall Infrastructure Investment Co., Ltd. | Beijing | Beijing | Investment management, import and export | 100.00% | Establishment | |
| Sino Great Wall Medical Investment Management Co., Ltd. | Beijing | Beijing | Medical investment | 100.00% | Establishment | |
| Wuhan Commercial Workers Hospital LLC | Wuhan | Wuhan | Sanitary & medical service | 100.00% | Under non-common control | |
| Sino Great Wall Guangxia (Wuhan) Medical Development Co., Ltd. | Wuhan | Wuhan | Medical technology development, pharmaceutical sales, medical device wholesale, medical and pension investment | 60.00% | Establishment | |
| Changzhi Shenzhou Laodingshan Industrial Co., Ltd. | Changzhi | Changzhi | Urban infrastructure construction and development, | 100.00% | Establishment | |
| construction engineering design, R&D, construction equipment leasing, construction | ||||||
| Xiangfen County Taoshan Construction Co., Ltd. | Xiangfen | Xiangfen | Urban infrastructure construction, trade | 100.00% | Establishment | |
| Sino Great Wall (Xihua) Economic Development Zone Investment Co., Ltd. | Xihua | Xihua | Infrastructure investment, road and bridge construction, water conservancy construction, general airport construction | 100.00% | Establishment | |
| Liupanshui Central People‘s Hospital Investment Co., Ltd. | Liupanshui | Liupanshui | Hospital management service, pension rehabilitation service, investment, trade, aged articles wholesale and retail | 75.00% | Establishment | |
| Sino Zhigu Industrial (Yueyang) Co., Ltd. | Yueyang | Yueyang | Building construction | 78.30% | Establishment | |
| Sino Great Wall Group Co.,Limited | Hongkong | Hongkong | Construction, design, trade, investment consulting | 100.00% | Establishment | |
| Sino Great Wall Decoration and | Beijing | Beijing | Design and consulting | 100.00% | Establishment |
| Design Co., Ltd. | ||||||
| Sino Great Wall International Engineering (Macao) Co., Ltd. | Macao | Macao | Design and construction | 96.00% | 4.00% | Establishment |
| Suzhou Lvbang Wood Industry Technology Co., Ltd. | Suzhou | Suzhou | Production and sales | 100.00% | Establishment | |
| Guangzhou Herabenna Interior Design Co., Ltd. | Guangzhou | Guangzhou | Design | 100.00% | Establishment | |
| Shenzhen Hongtulve Industrial Co., Ltd. | Shenzhen | Shenzhen | Investment, R&D and sales, trade, import and export | 100.00% | Establishment | |
| Inrich Me Engineering Co., Ltd. | Hongkong | Hongkong | Mechanical and electrical engineering, scientific research, trade, investment consulting | 100.00% | Establishment | |
| Sino Great Wall Real Estate (Hubei) Co., Ltd. | Wuhan | Wuhan | Real estate development | 80.00% | Establishment | |
| Sino Great Wall New Energy (Beijing) Co., Ltd. | Beijing | Beijing | Renewable energy technology | 100.00% | Establishment | |
| Shanghai Lingrui International Trading Co., Ltd. | Shanghai | Shanghai | Trade | 100.00% | Establishment | |
| Sino Great Wall Construction Engineering | Chengdu | Chengdu | Building construction | 60.00% | under non-common |
| Co., Ltd. | control | |||||
| Sino Great Wall Southwest Engineering Co., Ltd. | Chengdu | Chengdu | Building construction | 100.00% | under non-common control | |
| Huichang County Zhongcheng Construction Engineering Co., Ltd. | Huichang | Huichang | Medical industry construction, import and export | 100.00% | under non-common control | |
| Great Wall Biaodian Energy Co., Ltd. | Beijing | Beijing | Energy trade, R&D, import and export | 51.00% | Establishment | |
| Sino Great Wall Zhihui Housing Property (Zhanjiang) Co., Ltd. | Zhanjiang | Zhangjiang | Real estate development, interior decoration works for buildings and houses | 100.00% | Establishment | |
| SINO GREAT WALL INTERNETIONAL ENGINEERING(CNMI)CO.,LLC | Saipan | Saipan | Design and construction | 100.00% | Establishment | |
| SINO?GREAT?WALL?GENERAL?TRADING?&?CONTRACTING?CO.LTD | Kuwait | Kuwait | Building construction | 49.00% | under non-common control | |
| Sino Great Wall International Engineering( MM ) Co.,Ltd | Burma | Burma | Design and construction | 80.00% | Establishment | |
| PT.SINO GREAT WALL CONSTRUCTI | Indonesia | Indonesia | Building construction | 67.00% | Establishment |
| ON INDONESIA | ||||||
| Shenzhou Changcheng（Lao）Co.,Ltd | Laos | Laos | Building construction | 100.00% | Establishment | |
| Sino Great WallInternationalEngineering(Thailand) Co.,Ltd. | Thailand | Thailand | Engaged in domestic and international construction contracting, interior and exterior decoration of buildings, accepting bids to obtain bidding civil engineering projects of government agencies (cities, organs, etc.), individuals and legal entities; engaged in leasing, sales, export, purchase of various construction materials and construction equipment, and real estate development, etc. | 49.00% | Establishment | |
| Sino Great Wall International Engineering Co.,Ltd | Maldives | Maldives | Design and construction | 100.00% | Establishment | |
| PT.SINO GREAT WALL INVESTMENT | Indonesia | Indonesia | Real estate or leasing | 99.90% | Establishment |
| INDONESIA | ||||||
| SGW America LLC | USA | USA | Construction, design | 99.00% | 1.00% | Establishment |
| Sino Great Wall Group （UK）Co.,Limited | Britain | Britain | Design and construction | 98.00% | Establishment | |
| Kunming Sino Forest Industry Development Co., Ltd. | Kunming | Kunming | Development, construction, operation and management of industrial parks | 51.00% | Establishment | |
| SINO GREAT WALL（USA）.INC | USA | USA | Legal business practices | 100.00% | Establishment | |
| Sino Great Wall Development (Hengqin) Co., Ltd. | Zhuhai | Hengqin | Design and construction | 85.00% | Establishment | |
| Fujian Sino Great Wall Mingyihui Medical Investment Co., Ltd. | Fuzhou | Fuzhou | Investment in medical and pension industry; hospital management; medical device sales | 87.50% | Establishment | |
| Sino Great Wall Medical Investment (Hubei) Co., Ltd. | Wuhan | Wuhan | Investment in medical industry projects; self-operation and agency of the import and export business of various goods and technology | 100.00% | Establishment |
| Sino Great Wall Medical Management (Inner Mongolia) Co., Ltd. | Hohehot | Hohehot | Pharmaceutical development, pharmaceutical sales, medical device sales | 62.00% | Establishment | |
| Sino Great Wall Health Management (Jiangsu) Co., Ltd. | Jingjiang | Jingjiang | Health consulting, fitness, pension service and medical device sales | 51.00% | Establishment | |
| Hubei Yuanyaotong Supply Chain Co., Ltd. | Wuhan | \Wuhan | Pharmaceutical wholesale, self-operation and agency of the import and export of goods and technology | 51.00% | Establishment | |
| Wu‘an Juhe Photovoltaic Power Co., Ltd. | Wuan | Wuan | Solar photovoltaic | 100.00% | Establishment | |
| Sino Great Wall Southwest Science and Technology Co., Ltd. | Chengdu | Chengdu | Computer technology service, software and hardware R&D sales, equipment installation | 100.00% | Establishment | |
| Sino Great Wall Southwest Commercial and Trading Co., Ltd. | Chengdu | Chengdu | Wholesale and sales | 100.00% | Establishment |
| Sino Great Wall Southwest Engineering Consultation Co., Ltd. | Chengdu | Chengdu | Construction engineering design, consulting, survey | 100.00% | Establishment | |
| Far eastern international engineering company,LLC | Russia | Russia | Building construction, commerce and trade, transport, leasing | 95.00% | under non-common control | |
| Sino Great Wall(Philippines) International Corporation | Philippines | Philippines | Building construction, import and export trade | 100.00% | Establishment | |
| Sino Great Wall (HK) Property Co., Limited | Hongkong | Hongkong | Real estate development and management, land investment, property management, investment and business consulting, trade | 100.00% | Establishment | |
| SGW HPEngineeringConstructionSDN.BHD | Malaysia | Malaysia | Building construction, engineering design, installation project, mechanical and electrical installation, etc. | 100.00% | Establishment | |
| SGW VENTURES SDN.BHD. | Malaysia | Malaysia | Purchased, or otherwise obtained, attributes, stocks, bonds, reinvested earnings, etc. | 100.00% | Establishment |
| SGW CONSTRUCTION (LANGKAWI) SDN.BHD. | Malaysia | Malaysia | Building construction, engineering design, installation project, mechanical and electrical installation, etc. | 100.00% | Establishment | |
| Alor Vista Development Sdn Bhd | Malaysia | Malaysia | Real estate development and management, land investment, building and construction, etc. | 51.00% | under non-common control | |
| SINO GREAT WALL GENERAL TRADING & CONTRACTING CO.,LTD | Kuwait | Kuwait | Building construction | 100.00% | under non-common control | |
| Acura Kliniken Baden-Baden GmbH | Germany | Germany | Hospital management service | 100.00% | under non-common control | |
| Wuhan Huaye Pharmaceutical co., Ltd. | Wuhan | Wuhan | Hardware and electrical equipment, decoration and building materials, fitness equipment wholesale | 51.00% | under non-common control | |
| Sino Wai Man International Engineering Limited | Macao | Macao | Engineering, design, trade, investment, consulting | 60.00% | Establishment |
Explanation on share-holding ratio in subsidiary different from ratio of voting right：
Basis for controlling the invested entity with half or below voting rights held and without controlling invested
entity but with over half and over voting rights：
Controlling basis for the structuring entity included in consolidated range：
Basis on determinning to be a agent or consignor：
Other notes：
（2）Significant not wholly-owned subsidiaries
Holding proportion of minority shareholder in subsidiary different from voting proportion:
Other notes:
(3) The main financial information of significant not wholly owned subsidiaryOther notes:
(4) Significant restrictions of using enterprise group assets and pay off enterprise group debt(5) Provide financial support or other support for structure entities incorporate into the scope of
Other notes
2. The transaction of the Company with its owner’s equity share changed but still controlling the subsidiary(1) Note to owner’s equity share changed in subsidiary(2) The transaction’s influence to equity of minority shareholders and attributable to the owner's equity of
the parent company
In RMB
Other notes3. Equity in joint venture arrangement or associated enterprise(1) Significant joint venture arrangement or associated enterprise
| Name | Main operating place | Registration place | Business nature | Proportion | Accounting treatment of the investment of joint venture or associated enterprise | |
| Directly | Indirectly | |||||
Notes to holding proportion of joint venture or associated enterprise different from voting proportion:
Basis of holding less than 20% of the voting rights but has a significant impact or holding 20% or more votingrights but does not have a significant impact:
（2）Main financial information of Significant joint venture
In RMB
| Amount of current period | Amount of previous period | |
Other notes
(3) Main financial information of significant associated enterprise
In RMB
| Amount of current period | Amount of previous period |
Other notes
(4) Summary financial information of insignificant joint venture or associated enterprise
In RMB
| Amount of current period | Amount of previous period | |
| Joint venture: | -- | -- |
| The total number of the following | -- | -- |
| Associated enterprise： | -- | -- |
| The total number of the following | -- | -- |
Other notes(5) Note to the significant restrictions of the ability of joint venture or associated enterprise transfer fundsto the Company
(6) The excess loss of joint venture or associated enterprise
In RMB
| Name | The cumulative recognized losses in previous accumulatively derecognized | The derecognized losses or the share of net profit in reporting period | The no cumulative unrecognized losses in reporting period |
Other notes(7) The unrecognized commitment related to joint venture investment(8) Contingent liabilities related to joint venture or associated enterprise investment
4. Significant common operation
| Name | Main operating place Registration place | Registration place | Business nature | Proportion/share portion | |
| Directly | Indirectly | ||||
Note to holding proportion or share portion in common operation different from voting proportion:
Basis of common operation as a single entity, classify as common operationOther notes5. Equity of structure entity not including in the scope of consolidated financial statementsRelated notes to structure entity not including in the scope of consolidated financial statements6.OtherX. The risk related financial instruments
XI. The disclosure of the fair value1. Closing fair value of assets and liabilities calculated by fair value
In RMB
| Items | Closing fair value | |||
| Fir value measurement items at level 1 | Fiar value measurement items at level 2 | Fiar value measurement items at level 3 | Total | |
| II. Consistent fair value | -- | -- | -- | -- |
| II. Inconsistent fair value measurement | -- | -- | -- | -- |
2. Market price recognition basis for consistent and inconsistent fair value measurement items at level 13. Valuation technique adopted and nature and amount determination of important parameters forconsistent and inconsistent fair value measurement items at level 24. Valuation technique adopted and nature and amount determination of important parameters forconsistent and inconsistent fair value measurement items at level 35. Sensitiveness analysis on unobservable parameters and adjustment information between opening andclosing book value of consistent fair value measurement items at level 36. Explain the reason for conversion and the policy governing when the conversion happens if conversionhappens among consistent fair value measurement items at different levels7. Changes in the valuation technique in the current period and the reason for change8. Fair value of financial assets and liabilities not measured at fair value9.Other
XII. Related party and related party transactions
1.Parent company information of the enterprise
| Name | Registered address | Nature | Registered capital | The parent company of the Company's shareholding ratio | The parent company of the Company’s vote ratio |
Notes
The finial control of the company was:
Other notes：
2. Subsidiaries of the CompanySituation of the enterprise subsidiaries refer to the Notes.3. Information on the joint ventures and associated enterprises of the CompanyThe details of significant joint venture and associated enterprise of the CompanyInformation on other joint venture and associated enterprise of occurring related party transactions with theCompany in reporting period, or form balance due to related party transactions in previous period:
| Name | Relationship |
Other notes4.Other Related parties information of the enterprise
| Other Related parties name | Relation of other Related parties with the company |
| HE SEN | The shareholders of the company and the brother-in-law of the actual controller |
| HE FEIYAN | The shareholders of the company and the spouse of the actual controller |
| LI ERLONG | Directors, supervisors and senior management of the company |
| Qinghai integrated trading co. LTD | The company's director wang lei control of the enterprise |
| Qinghai integrated mining co. LTD | The company's director wang lei control of the enterprise |
| Kunwu jiuding investment management co. LTD and its related parties | More than 5% of the company's shareholders and subject to the same control enterprise |
| Beijing polaroid technology co. LTD | The directors of the company shall be the wholly-owned subsidiary of the company |
Other notes5. Related transactions.
（1）Related transactions on purchasing goods and receiving services
Acquisition of goods and reception of labor service
In RMB
| Related parties | Content of related transaction | Amount of current period | Amount of previous period | Over the trading limit or not? | Amount of last period |
Related transactions on sale goods and receiving services
In RMB
| Related parties | Content of related transaction | Amount of current period | Amount of previous period |
Notes
（2）Related trusteeship or contracting
Related trusteeship or contracting in which the Company is the undertake
In RMB
| Name of the employer | Name of the undertaker | Asset situation of the undertaker | Start date | Terminating date | Pricing basis | Gains from the deal in report period |
Notes
(3) Information of related leaseThe company was lessor:
In RMB
| Name of lessee | Category of leased assets | The lease income confirmed in this year | The lease income confirmed in last year |
The Company was lessee：
In RMB
| Lessor | Category of leased assets | The lease income confirmed in this year | Category of leased assets |
Notes
（4）Related guarantee condition
The Company as a guarantor
In RMB
| Guarantor | Amount | Starting date | Stop date | If completed or not |
The Company was secured party
In RMB
| Guarantor | Guarantee Amount | Starting date | Stop date | If completed or not |
Notes
(5) Inter-bank lending of capital of related parties：
In RMB
| Related party | Amount borrowed and loaned | Initial date | Due date | Notes |
| Borrowed | ||||
| Loaned | ||||
(6) Related party asset transfer and debt restructuring
In RMB
| Related party | Amount borrowed and loaned | Amount of current period | Amount of previous period |
(7) Rewards for the key management personnel
In RMB
| Items | Amount of current period | Amount of previous period |
（8）Other related party transactions
6.Payables and receivables of the related party
（1）Receivable
In RMB
| Name | Related party | Amount at year end | Amount at year beginning | ||
| Balance of Book | Bad debt Provision | Balance of Book | Bad debt Provision | ||
| Accounts receivable | Kunwu jiuding investment management co. | 427,613.49 | 21,380.67 | 1,227,613.49 | 61,380.67 |
| LTD and its related parties | ||||
| Beijing polaroid technology co. LTD | 160,000.00 | 16,000.00 | 160,000.00 | 16,000.00 |
| Shanghai oneness supply chain management co. LTD | 2,469,164.81 | 123,458.24 | 2,469,164.81 | 123,458.24 |
（2）Payables
In RMB
| Name | Related party | Book balance at year end | Book balance at year beginning |
| Accounts payable | Qinghai integrated trading co. LTD | 3,190,000.00 |
7. Related party commitment8.OtherXIII. Stock payment1. The Stock payment overall situation
□ Applicable √ Not applicable
2. The Stock payment settled by equity
□ Applicable √ Not applicable
3. The Stock payment settled by cash
□ Applicable √ Not applicable
4. Modification and termination of the stock payment5.OtherXIV. Commitments1.Importance commitment eventsImportant commitments of existence of balance sheet date
2. Contingency(1) Significant contingency at balance sheet date(2) The Company have no significant contingency to disclose, also should be statedThere was no significant contingency in the Company.3.OtherXV. Events after balance sheet date1. Significant events had not adjusted
In RMB
| Items | Content | Influence number to the financial position and operating results | Reason of unable to estimate influence number |
2. Profit distribution3. Sales return4.Notes of other significant eventsXVI. Other significant events1.The accounting errors correction in previous period
（1）Retrospective restatement
In RMB
| Content | Processing program | Name of the influenced report items during comparison period | Cumulative impact |
| Nil |
（2）Prospective application
| Content | Processing program | Reason of adopting prospective application |
| Nil |
2. Debt restructuringNil3. Replacement of assets
（1）Non-monetary assets exchange
Nil
（2）Other assets replacement
Nil
4. Pension plan
Nil
5.Discontinuing operation
In RMB
| Items | Income | Expense | Total profits | Income tax | Net profit | Termination of the business profits attributable of the parent company owner |
| Nil |
Other notesNil
6. Segment information(1) Recognition basis and accounting policies of reportable segment
Accounting Policies of Report Segment:
There is no related business among the domestic construction and decoration section, the overseas constructionand decoration section and the medical section, thus there is no price transfer among the various divisions.The medical section business is implemented by the company and the independent subsidiary company. Theaccount sets of the overseas construction and decoration section business are set up according to the constructionareas of the projects under construction for accounting. There are 8 major account sets respectively for Qatar,Kuwait, Cambodia, Sri Lanka, Malaysia, Burma, Maldives and Saipan for accounting. There is no situation inwhich the costs indirectly attributing to the various divisions need to be shared. The business data of the overseasconstruction and decoration section is also composed of the financial data of the above 8 major project accountsets.
(2) The financial information of reportable segment
In RMB
| Items | Offset during segments | Total |
(3) There was no reportable segment, or the total amount of assets and liabilities of each part of reportablesegment, shall disclose the reason.Nil
（4）Other notes
Nil
7. Other important transactions and events have an impact on investors’ decision-making
Nil8.OtherNilXVII. Notes s of main items in financial reports of parent company1.Account receivable
（1）Classification account receivables.
In RMB
| Category | Amount in year-end | Amount in year-beginning | ||||||||
| Book Balance | Bad debt provision | Book value | Book Balance | Bad debt provision | Book value | |||||
| Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | |||
| Accounts Receivable with Significant Single Amount and Having Bad Debt Reserve Withdrawn Independently | 0.00 | 0.00% | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||
| Accounts receivable with bad debt reserve withdrawn as per | 0.00 | 0.00% | 0.00 | 0.00 | 0.00 | |||||
| the portfolio of credit risk characteristics | ||||||||||
| Accounts receivable with insignificant single amount, but having bad debt reserve withdrawn separately | 0.00 | 0.00% | 0.00 | 0.00 | 0.00 | |||||
| Total | 0.00 | 0.00% | 0.00 |
Receivable accounts with large amount individually and bad debt provisions were provided.
□ Applicable √ Not applicable
Account receivable on which bad debt provisions are provided on age basis in the group
√ Applicable □Not applicable
In RMB
| Aging | Amount in year-end | ||
| Account revisable | Provision for bad debts | Proportion% | |
| Within item 1 year | |||
Notes：
Receivable accounts on which had debt provisions are provided on percentage analyze basis in a portfolio
□Applicable √Not applicable
Receivable accounts on which had debt provisions are provided by other ways in the portfolio(2) Accounts receivable withdraw, reversed or collected during the Reporting PeriodThe withdrawal amount of the bad debt provision during the Reporting Period was of RMB9,315,221.66; the
amount of the reversed or collected part during the Reporting Period was of RMB0.00.
Significant amount of reversed or recovered bad debt provision：
In RMB
| Name | Amount | Method |
（3）The current accounts receivable written-offs situation
In RMB
| Items | Amount |
Of which: significant actual written-offs situation：
In RMB
| Name | Nature | Amount | Reason | Procedure | Whether occurred |
Notes：
(4) Top five of account receivable of closing balance collected by arrears partyNil(5) Derecogniziton of account receivable due to the transfer of financial assets
Nil(6) The amount of the assets and liabilities formed by the transfer and the continues involvement of account
receivable.Nil
Other notes：
Notes2.Other receivable
（1）.Category of Other receivable
In RMB
because of relatedparty transaction
Category
| Category | Amount in year-end | Amount in year-beginning | ||||||||
| Book Balance | Bad debt provision | Book value | Book Balance | Bad debt provision | Book value | |||||
| Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | |||
| Other account receivables provided bad debt provision in credit risk groups | 2,907,761,802.07 | 100.00% | 16,653,708.99 | 0.57% | 2,891,108,093.08 | 3,599,182,692.34 | 100.00% | 8,215,209.12 | 0.23% | 3,590,967,483.22 |
| Total | 2,907,761,802.07 | 100.00% | 16,653,708.99 | 0.57% | 2,891,108,093.08 | 3,599,182,692.34 | 100.00% | 8,215,209.12 | 0.23% | 3,590,967,483.22 |
Other Receivable accounts on which bad debt provisions are provided by other ways in the portfolio：
□Applicable √Not applicable
Other receivable of combinational withdrawing bad debt provision by aging analysis method
√Applicable□ Not applicable
In RMB
| Aging | Amount in year-end | ||
| Other receivable | Provision for bad debts | Proportion(%) | |
| Within Item 1 year | |||
| 192,368,959.97 | 9,618,448.00 | 5.00% | |
| Subtotal within 1 year | 192,368,959.97 | 9,618,448.00 | 5.00% |
| 1-2 years | 70,352,609.93 | 7,035,260.99 | 10.00% |
| Total | 2,907,761,802.07 | 16,653,708.99 | 0.57% |
Notes：
Other receivable account in Group on which bad debt provisions were provided on percentage basis：
□Applicable √Not applicableOther Receivable accounts on which bad debt provisions are provided by other ways in the portfolio：
□Applicable √Not applicable
（2）Bad debt provision accrual collected or switch backBad debt provision accrual was RMB9,315,221.66， the account collected or switches back amounting to
RMB876,721.79.
Significant amount of reversed or recovered bad debt provision：
In RMB
| Name | Back or withdraw money | Method |
（3）The current accounts receivable written-offs situationOf which: significant actual written-offs situation：
In RMB
| Name | Nature | Amount | Reason | Procedure | Whether occurred because of related party transaction |
Notes：
（4）Other account receivable classified by account nature
In RMB
| Nature | Closing book value | Opening book value |
| Bid bond, performance bond and deposit | 113,189,709.93 | 92,152,609.93 |
| Petty cash | 919,442.48 | 142,590.46 |
| Current account | 2,793,652,649.66 | 3,506,887,491.95 |
| Other |
| Total | 2,907,761,802.07 | 3,599,182,692.34 |
(5) The top five other account receivable classified by debtor at period end
In RMB
| Name | Nature | Closing balance | Aging | Proportion % | Closing balance of bad debt provision |
| Sino Great Wall International Engineering Co., Ltd., | Related party dealing | 2,495,544,546.06 | Within 1 year | 85.82% | |
| Wuhan Commercial Workers Hospital LLC | Related party dealing | 99,000,000.00 | 1-2 years | 3.40% | |
| Fuping hi tech Industrial Development Zone Management Committee | Deposit | 50,000,000.00 | 1-2 years | 1.72% | 5,000,000.00 |
| Sino Great wall Medical Investment Management Co., Ltd. | Related party dealing | 40,445,288.62 | Within 1 year | 1.39% | |
| Yanjin County Sino Great Wall Construction Co., Ltd. | Related party dealing | 40,200,000.00 | Within 1 year | 1.38% | 2,010,000.00 |
| Total | -- | 2,725,189,834.68 | -- | 7,010,000.00 |
(6) Accounts receivable involved with government subsidies
In RMB
| Name of units | Project of government | Closing balance | Closing age | Estimated received time, amount and basis |
| Nil |
(7) Other account receivable which terminate the recognition owning to the transfer of the financial assetsNil
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of otheraccounts receivable
Nil
Other Notes：
Nil
3.Long-term equity investment
In RMB
| Items | Year-end balance | Year-beginning balance | ||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |
| Investment to the subsidiary | 3,311,211,536.66 | 0.00 | 3,311,211,536.66 | 3,311,211,536.66 | 0.00 | 3,311,211,536.66 |
| Total | 3,311,211,536.66 | 3,311,211,536.66 | 3,311,211,536.66 | 3,311,211,536.66 | ||
（1）Investment to the subsidiary
In RMB
| Name | Opening balance | Increase | Decrease | Closing balance | Withdrawn impairment provision in the reporting period | Closing balance of impairment provision |
| Sino Great Wall International Engineering Co., Ltd., | 3,079,451,536.66 | 3,079,451,536.66 | ||||
| Wuhan Commercial Workers Hospital LLC | 97,000,000.00 | 97,000,000.00 | ||||
| Changzhi Shenzhou Laodingshan Industrial Co., Ltd. | 10,000,000.00 | 10,000,000.00 | ||||
| Xiangfen County Taoshan Construction Co., Ltd. | 10,000,000.00 | 10,000,000.00 | ||||
| Sino Great Wall | 5,000,000.00 | 5,000,000.00 |
| Medical Investment Management Co., Ltd. | ||||||
| Sino Zhigu Industrial (Yueyang) Co., Ltd. | 109,760,000.00 | 109,760,000.00 | ||||
| Total | 3,311,211,536.66 | 3,311,211,536.66 | 0.00 |
（2）Investment to joint ventures and associated enterprises
In RMB
| Name | Opening balance | Increase /decrease in reporting period | Closing balance | Closing balance of impairment provision | |||||||
| Add investment | Decreased investment | Gain/loss of Investment | Adjustment of other comprehensive income | Other equity changes | Declaration of cash dividends or profit | Withdrawn impairment provision | Other | ||||
| I. Joint ventures | |||||||||||
| II. Associated enterprises | |||||||||||
（3）Other notes
Nil4.Business income and Business cost
In RMB
| Items | Amount of current period | Amount of previous period | ||
| Business income | Business cost | Business income | Business cost | |
| Main operations | 117,362.07 | 108,742,520.47 | 0.00 | 111,018.01 |
| Total | 117,362.07 | 108,742,520.47 | 0.00 | 111,018.01 |
Other notes：
5.Investment income
In RMB
| Items | Amount of current period | Amount of previous period |
6.OtherXVIII. Supplementary Information1.Current non-recurring gains/losses
√ Applicable □Not applicable
In RMB
| Items | Amount | Notes |
| Gain or loss on disposal of non-current assets | -570,793.76 | |
| Entitled income generated from fair value of net identifiable assets of invested company when the investment cost obtained by the enterprise from subsidiaries, affiliated enterprises and joint ventures is less than the obtained investment. | 70,486,755.72 | |
| Other non-operating income and expenditure except for the above items | 108,668,232.63 | |
| Less: Influenced amount of income tax | 1,078,053.52 | |
| Total | 177,506,141.07 | -- |
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses andits non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosurefor Companies offering their securities to the public-non-recurring Gains and losses which have been defined asrecurring gains and losses, it is necessary to explain the reason.
□ Applicable √ Not applicable
2 Return on net assets and earnings per share
| Profit of the report period | Return on net assets . Weighted（%） | Earnings per share | |
| Basic earnings per share | Diluted gains per share | ||
| Net profit attributable to the | 6.61% | 0.0848 | 0.0848 |
| Common stock shareholders of Company. | |||
| Net profit attributable to the Common stock shareholders of Company after deducting of non-recurring gain/loss. | -1.47% | -0.0147 | -0.0147 |
3. Differences between accounting data under domestic and overseas accounting standards(1) Differences of net profit and net assets disclosed in financial reports prepared under international and
Chinese accounting standards
□ Applicable √Not applicable
(2) Differences between the net profit and net asset in the financial reports prepared under IAS and 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 foreigninstitutions4.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 Lue
Sino Great Wall Co., Ltd.
August 31, 2018