Sino Great Wall Co., Ltd. The First Quarterly Report 2016 Sino Great Wall Co., Ltd.
The First Quarterly Report 2016
April 2016
Sino Great Wall Co., Ltd. The First Quarterly Report 2016 1 Important Notice
The Board of Directors ,Supervisory Committee, all directors, supervisors and senior executives of the Company hereby guarantees that there are no misstatement, misleading representation or important omissions in this report and shall assume joint and several liability for the authenticity, accuracy and completeness of the contents hereof. All the directors attended the board meeting for reviewing the Quarterly Report.
Mr.Chen Lue, Person in charge of the Company, Mr. Cui Hongli, Chief financial officer and the Mr. Cui Hongli, the person in charge of the accounting department (the person in charge of the accounting )hereby confirm the authenticity and completeness of the financial report enclosed in this Quarterly Report .
Sino Great Wall Co., Ltd. The First Quarterly Report 2016 II. Main financial data and changes of shareholders
I.Main financial data and financial index
Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting error correction or not.
□ Yes√ No
|||||||
|-|-|-|-|-|-|
||||||Changes of this period|
|||This period||Same period of last year|over same period of last|
||||||year（％）|
|Operating income（RMB）|924,667,155.55||825,262,582.68||12.05%|
|Net profit attributable to the shareholders|76,587,282.98||47,877,449.11|||
||||||59.97%|
|of the listed company（RMB）||||||
|Net profit after deducting of||||||
|non-recurring gain/loss attributable to||||||
|||76,587,282.98||47,877,449.11|59.97%|
|the shareholders of listed company||||||
|（RMB）||||||
|Cash flow generated by business|-318,972,753.01||-116,108,845.35|||
||||||-174.72%|
|operation, net（RMB）||||||
|Basic earning per share(RMB/Share)|0.1714||0.1071||60.04%|
|Diluted gains per|0.1714||0.1071|||
||||||60.04%|
|share(RMB/Share)(RMB/Share)||||||
|Weighted average return on equity||||||
|||5.63%||3.73%|1.90%|
|（%）||||||
||||||Changes of this|
|||End of this period||End of last period|period-end over same|
||||||period-end of last year(%)|
|Gross assets（RMB）|4,487,124,027.81||4,017,462,824.63||11.69%|
|Net assets attributable to the|1,361,402,634.98||1,282,256,738.74|||
|shareholders of the listed company|||||6.17%|
|（RMB）||||||

Items and amount of non-current gains and losses
□ Applicable√ Not applicable
No such cases in the Reporting Period
Sino Great Wall Co., Ltd. The First Quarterly Report 2016 II. Total Shareholders and Shares Held by Top Ten Shareholders at the End of the Reporting Period
1. About Total Common Shareholders, Total Preference Shareholders with the Voting Power Recovered and the Shares Held by Top Ten Common Shareholders
In shares
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||Total preference||||||
|||||||||shareholders with the voting||||||
||Total number of common|||||||||||||
|||||26,580||||power recovered at the end|||0|||
||shareholders at the period-end|||||||||||||
|||||||||of the reporting period(if||||||
|||||||||any)||||||
||Shares held by the top 10 shareholders|||||||||||||
|||||||||||Amount of||Pledging or freezing||
|||||||Share||||tradable||||
||||Properties of|||||||||||
||Shareholder name|||||proportio||Quantity||shares with||Status of||
||||shareholder||||||||||Quantity|
|||||||n %||||Conditional||the shares||
|||||||||||held||||
|Chen Lue||Domestic Naturalperson|||34.33%||153,406,462||153,186,762|||||
|||||||||||||Mortgage|113,621,209|
|Union Holdings Co., Ltd.||Domestic Non-State-owned legalperson|||9.03%||40,341,032||0|||||
|STYLE-SUCCESS LIMITED||Foreign legalperson|||5.47%||24,466,029||0|||||
|Shanghai FinancialDevelopment InvestmentFund(LP)||Domestic Non-State-owned legalperson|||4.49%||20,079,080||20,079,080|||||
|He Feiyan||Domestic Naturalperson|||3.23%||14,421,173||14,421,173|||||
|Jiutai Fund－Bank ofCommunications－JiutaiHuitong No.2 specificcustomer asset managementplan||Other|||2.50%||11,178,861||11,178,861|||||
|Wuxi Hengtai Jiuding AssetsManagement Centre（LP）||Domestic Non-State-owned legalperson|||2.26%||10,087,004||10,087,004|||||
|Foshan Haihui HeyingVenture ImvestmentPartnership(Limited||Domestic Non-State-owned legalperson|||2.25%||10,039,540||10,039,540|||||

Sino Great Wall Co., Ltd. The First Quarterly Report 2016
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Partnership)||||||||||
|Jiangxi Taihao VentureInvestment Centre(LP）||Domestic Non-State-owned legalperson|||1.87%|8,366,284|8,366,284|||
|Yantai ZhaoxuanYuantaiJiuding Venture InvestmentCentre(LP)||Domestic Non-State-owned legalperson|||1.87%|8,353,354|8,353,354|||
||Shares held by the Top 10 Shareholders of Non-restricted shares|||||||||
|||||Number of the non-restricted shares||||Share type||
||Shareholders’ Names|||||||||
|||||held||||Share type|Quantity|
|Union Holdings Co., Ltd.|||40,341,032|||||RMB Common||
||||||||||40,341,032|
|||||||||shares||
|STYLE-SUCCESS LIMITED|||24,466,029|||||Foreign shares||
|||||||||placed in domestic|24,466,029|
|||||||||exchange||
|Rich Crown Investment Co., Ltd.|||6,114,556|||||Foreign shares||
|||||||||placed in domestic|6,114,556|
|||||||||exchange||
|Union Development Group Co., Ltd.|||4,011,389|||||RMB Common||
||||||||||4,011,389|
|||||||||shares||
|Liuzhou Jiali Real estate DevelopmentCo., ltd.|||3,600,000|||||RMB Common||
||||||||||3,600,000|
|||||||||shares||
|Shanghai PanHou InvestmentManagement Co., Ltd.－Panhoumomentum－Haofu No.1 Fund|||1,800,000|||||||
|||||||||RMB Common||
||||||||||1,800,000|
|||||||||shares||
|Zeng Ying|||1,720,000|||||Foreign shares||
|||||||||placed in domestic|1,720,000|
|||||||||exchange||
|ICBC－Morgan smart Internet stocksecurities investment fund|||1,379,903|||||RMB Common||
||||||||||1,379,903|
|||||||||shares||
|KGI ASIA LIMITED|||1,370,060|||||Foreign shares||
|||||||||placed in domestic|1,370,060|
|||||||||exchange||
|China Galaxy International Securities(HK) Co., Ltd.|||963,113|||||Foreign shares||
|||||||||placed in domestic|963,113|
|||||||||exchange||
|||||Chen Lue and He Yanfei are consortium officers; Wuxi Hengtai Jiuding Assets||||||
||Explanation on associated relationship or|||Management Centre （LP）and Yantai Zhaoxuan Yuantai Jiuding Venture||||||
||concerted action of the above shareholders|||Investment Centre（LP）are consortium officers;Union Development Group Ltd. is||||||
|||||the controlling shareholder of the above-mentioned shareholder Shenzhen Union||||||

Sino Great Wall Co., Ltd. The First Quarterly Report 2016
|||
|-|-|
||Holdings Ltd. and third shareholder Rich Crown Investment Co., Ltd. The other|
||tradable shareholders neither knew whether there exists associated relationship|
||between them.|
|Note to the top 10 common stockholdersinvolved in margin financing & securitieslending (If any)|Among the shareholders above, Liuzhou Jiali Real estate Development Co., ltd.|
||holds 3,600,000 shares of the Company through stock account with credit|
||transaction and guarantee of Guohai Securities Co., Ltd.|

Agreed re-purchasing by theCompany’s top 10 shareholders of common shares and top 10 shareholders of unconditional common shares in the report period
□ Yes√ No
No agreed re-purchasing is performed by theCompany’s shareholders in the report period.
2.Total number of preferred shareholders and shareholding of top 10 preferred shareholders by the end of the report period
□Applicable√ Not applicable
III Significant Events
I. Major changes of main accounting statement items and financial indicators in the reporting period, as well as reasons for the changes
√ Applicable□ Not applicable
||||||
|-|-|-|-|-|
|Items|End of term|Beginning of term|Scale of change|Remarks on the change|
|Short-term loans|673,408,496.07|225,408,496.07|198.75%|Caused by the increase ofshort-term bank loan in thisperiod|
|Other accountPayable|401,331,304.86|635,200,976.60|-36.82%|Caused by returning theinter-banking lending fund to theaffiliated party|
|Long -term loans|145,669,124.50|30,140,649.14|383.3%|Caused by the increase oflong-term bank loan in this period|
|Administrativeexpense|42,252,271.83|29,832,508.95|41.63%|Caused by the increase ofoverseas branches, overseasgroups, photovoltatic, medicaland other department in thisperiod|
|Financial expenses|14,979,885.12|6,352,212.68|135.82%|Caused by the increase ofshort-term loan, long-term loanand overseas L/C.|
|Asset impairment|29,750,485.54|13,205,214.65|125.29%|Caused by the increased of bad|

Sino Great Wall Co., Ltd. The First Quarterly Report 2016
||||||
|-|-|-|-|-|
|loss||||debts reserve in the company|
|Net profitattributable to theshareholders of theParent company|76,587,282.98|47,877,449.11|59.97%|The overseas income increased, andthe gross profit of overseas business ishigher than that at home; itswholly-owned subsidiary washonored as new hi-tech company in2015, and the income tax rate reduced.|
|Net Cash flowgenerated bybusiness operation|-318,972,753.01|-116,108,845.35|-174.72%|Mainly caused by the short creditaccount period of suppliers ofoverseas projects|
|Net cash flowgenerated byinvestment|0|-6,710,715.18|-100.00%|Caused by the increase ofinvestment at the end of this reportperiod|
|Net cash flowgenerated byfinancing|406,096,087.93|82,619,950.02|391.52%|Caused by increase of short-term andlong-term loans.|

II. The progress of significant events and influence, as well as the analysis and explanation on resolving proposal.
□ Applicable√ Not applicable
III. Commitments finished in implementation by the Company, shareholders, actual controller, acquirer, directors, supervisors, senior executives or other related parties in the reporting period and commitments unfinished in implementation at the end of the reporting period
√Applicable□Not applicable
||||||||
|-|-|-|-|-|-|-|
||||||Period||
|||||Time of||Fulfi|
||Commitment||||of||
|Commitment||Type|Contents|making||llme|
||maker||||comm||
|||||commitment||nt|
||||||itment||
|Commitment|||||||
|on share|No|No|No||No|No|
|reform|||||||
|Commitment|||||||
|in the|||||||
|acquisition|||||||
||No|No|No||No|No|
|report or the|||||||
|report on|||||||
|equity changes|||||||

Sino Great Wall Co., Ltd. The First Quarterly Report 2016
||||||||
|-|-|-|-|-|-|-|
||||Shares acquired by purchases of assets||||
||||through issuing shares: “I will not transfer the||||
||||new shares of Victor Onward Holdings||||
||||acquired through this restructuring, including||||
||||but not limited to the public transfer through||||
||||the stock market or by agreement, and I will||||
||||not entrust anybody else to manage my shares||||
||||of Victor Onward Holdings, within 36 months||||
||||from the date new shares list and before the||||
||||date I’ve carried out my obligations of||||
||||performance compensation under this||||
||||restructuring(subject to whatever is early,||||
||||hereinafter referred to as “lock-up periods”).||||
||||If the closing price of shares of Victor||||
||||Onward Holdings were lower than this issue||||
||||price for 20 continuous trading days in 6||||
||||months after the restructuring transaction has||||
||||been completed, or the final closing price||||
||||were lower than this issue price 6 months|||Strict|
|Commitments|||||36||
||Chen Lue, He|Share|after the transaction has been completed, the|March||perfo|
|in assets|||||month||
||Feiyan|lock|lock-up periods of my shares of Victor|19,2015||rmin|
|reorganization|||||s||
||||Onward Holdings are automatically prolonged|||g|
||||for 6 months. (The above-mentioned issue||||
||||price will be calculated according to the price||||
||||after the adjustment of ex-dividend, etc. if||||
||||ex-dividend behaviors of the company,||||
||||including distribution of dividends, giving||||
||||bonus, conversion of share capital, rationing||||
||||shares, and etc., were happened during the||||
||||above-mentioned periods.||||
||||If the restructuring transaction were||||
||||investigated by judicial authorities or China||||
||||Securities Regulatory Commission due to||||
||||false record, misleading statement or major||||
||||omission of the information provided or||||
||||disclosed, I will not transfer my shares of the||||
||||company before the conclusion of the case has||||
||||been made clear.||||
||||After the above-mentioned lock-up periods, I||||
||||will sell or transfer the new shares of the||||

Sino Great Wall Co., Ltd. The First Quarterly Report 2016
|||||||
|-|-|-|-|-|-|
|||company acquired from this restructuring||||
|||following relevant regulations of China||||
|||Securities Regulatory commission and||||
|||Shenzhen Stock Exchange.||||
|||Shares acquired by matching funds raised: “I||||
|||will not transfer the new shares of Victor||||
|||Onward Holdings acquired through this||||
|||issuing by any way, including but not limited|||Strict|
|||||36||
||Share|to the public transfer through the stock market|March||perf|
|Chen Lue||||month||
||lock|or by agreement, within 36 months from the|19,2015||orm|
|||||s||
|||date new shares list.|||ing|
|||If regulation rules or regulators have longer||||
|||requirements for lock-up periods, it should be||||
|||executed accordingly.||||
|||Up to the issue day of the letter, I and other||||
|||corporations controlled by me haven’t||||
|||possessed funds of Sino Great Wall; After the||||
|||transaction is completed, I and other||||
|||companies controlled by me (if any), except||||
|||for listed companies and their holding||||
|||subsidiaries, will not possess the funds of||||
|||listed companies or Sino Great Wall by any||||
|||way, including cash in advance, other||||
|||expenses, direct or indirect loans, assumption,||||
||There|||||
|||etc. and try our best to avoid fund intercourse|||Strict|
||is no|||||
|||with listed companies or Sino Great Wall,|September1|Long-|perfo|
|Chen Lue|funds|||||
|||which has nothing to do with normal|9,2015|term|rmin|
||occup|||||
|||operations. If Sino Great Wall got penalized|||g|
||ied|||||
|||by government administration departments||||
|||due to the money lending which was||||
|||happened before the transaction, I will bear||||
|||the total compensation for the company’s loss||||
|||resulting from it by cash in order to guarantee||||
|||Sino Great Wall won’t suffer any loss.||||
|||Meanwhile, I will actively urge Sino Great||||
|||Wall to establish complete inner control||||
|||system and funds management system within||||
|||lawful authority.||||
||Cash|In view of the fact that the houses rented by|||Strict|
||comp|Sino Great Wall and it’s son subsidiaries,|March|Long-|perfo|
|Chen Lue||||||
||ensati|subsidiaries, haven’t rental registration, I|19,2015|term|rmin|
||on|promise, if Sino Great Wall and its son|||g|

Sino Great Wall Co., Ltd. The First Quarterly Report 2016
|||||||
|-|-|-|-|-|-|
|||subsidiaries, subsidiaries, were penalized by||||
|||real estate management department or||||
|||suffered other losses resulting from it, I agree||||
|||to compensate the loss of the company by||||
|||cash.||||
|||During the reporting period, the project which||||
|||Sino Great Wall is involved in is the||||
|||decoration engineering construction project of||||
|||Libo Grand Hotel (hereinafter referred to as||||
|||“Libo project”) which the company contracted||||
|||before the bidding process. Sino Great Wall is||||
|||not involved in any other projects except for||||
|||Libo project before bidding process. As to the||||
|||violating issues existed in the Libo project, I||||
||Cash||||Strict|
|||promise as follows: if Sino Great Wall got||||
||comp||March|Long-|perfo|
|Chen Lue||penalized by government administration||||
||ensati||19,2015|term|rmin|
|||departments or suffered any economic loss||||
||on||||g|
|||resulted from it, I will compensate the||||
|||company by cash; Meanwhile, I, within||||
|||lawful authority, will also promise to urge the||||
|||company to undertake related construction||||
|||projects legally so as to avoid violating issues||||
|||happened before implementation of bidding||||
|||process, i.e., at the time for construction||||
|||again.||||
|||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||||
||Cash|Sino Great Wall needs to pay caused by the|||Strict|
||comp|final results of ligation and arbitration cases,|March|Long-|perfo|
|Chen Lue||||||
||ensati|exceed the amount of liabilities which|19,2015|term|rmin|
||on|recognized in the “Audit Report” made for|||g|
|||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||||

Sino Great Wall Co., Ltd. The First Quarterly Report 2016
|||||||
|-|-|-|-|-|-|
|||Great Wall won’t suffer any loss.||||
|||2. This commitment letter is irrevocable.||||
|||1. On condition that ownership defect exists||||
|||in the lease of house property of||||
|||parent-subsidiary companies of Sino Great||||
|||Wall and its subsidiary corporation, which||||
|||resulted in inability for parent-subsidiary||||
|||companies of Sino Great Wall and its||||
|||subsidiary corporation to continue leasing this||||
|||house property but having to relocate, or||||
|||parent-subsidiary companies of Sino Great||||
|||Wall and its subsidiary corporation can’t||||
|||timely find suitable workplace for lawful||||
|||operation in related area, I will undertake to||||
||Cash|compensate by cash for parent-subsidiary|||Strict|
||comp|companies of Sino Great Wall’s losses which|March|Long-|perfo|
|Chen Lue||||||
||ensati|are caused by operation and finance due to the|19,2015|term|rmin|
||on|above-mentioned matters.|||g|
|||2. I undertake to unconditionally bear the||||
|||relevant fines by cash for parent-subsidiary||||
|||companies of Sino Great Wall on condition||||
|||that the rental house property of||||
|||parent-subsidiary companies of Sino Great||||
|||Wall and its subsidiary corporation is in||||
|||absence of handling procedures for filing||||
|||house leasing ,which resulted in that||||
|||parent-subsidiary companies of Sino Great||||
|||Wall and its subsidiary corporation are fined||||
|||by property administrative department.||||
|||3.The commitment letter is irrevocable.||||
|||“In condition that parent-subsidiary||||
|||companies of Sino Great Wall or its son||||
|||subsidiary haven’t paid social security or||||
|||housing fund for staff according to law, which||||
|||resulted in any losses to Sino Great Wall ,||||
||Cash||||Strict|
|||including the competent authorities’||||
||comp||March|Long-|perfo|
|Chen Lue||requirement for Sino Great Wall or its||||
||ensati||19,2015|term|rmin|
|||subsidiary to make supplementary payment,||||
||on||||g|
|||to be punished and resourced, I will bear by||||
|||full-amount cash for the fee of supplemental||||
|||payment and the expense and fee for being||||
|||punished or resourced, which is to guarantee||||
|||Sino Great Wall and its subsidiary to avoid||||

Sino Great Wall Co., Ltd. The First Quarterly Report 2016
|||||||
|-|-|-|-|-|-|
|||suffering from any loss ”||||
|||“At present, Suzhou Lvbang has possessed||||
|||one state-own land use right, of which the||||
|||land certificate is Suzhou Guo Yong(2014)||||
|||No.Y2014086”, locates in Danan Village,||||
|||Dadian Town, Yongqiao District, Suzhou City||||
|||with 32,966 square meters of area and the||||
|||purpose for industry. Suzhou Lvbang||||
|||possesses its own factory with 9,843.87||||
|||square meters of area above-mentioned,||||
|||which is the building reserved on the former||||
|||selling land. Suzhou Lvbang is carrying out||||
|||refurnishing and reconstruction for this||||
|||factory and has acquired “License of||||
|||Construction Land Planning ”with||||
|||No.2014-08-001 approved and issued by||||
||Cash|Yongqiao District, Suzhou City’s housing and|||Strict|
||comp|rural construction bureau, of which other|March|Long-|perfo|
|Chen Lue||||||
||ensati|examination and approval procedures of|19,2015|term|rmin|
||on|construction are in the process of handling|||g|
|||“I undertake to actively supervise and urge||||
|||Suzhou Lvbang on handling procedures of the||||
|||approval process involved with factor||||
|||refurnishing and reconstruction, and which is||||
|||suffered from administrative punishment by||||
|||relevant competent authorities in reason of||||
|||claiming certificate of title, or in which any||||
|||dispute or controversy exist in construction||||
|||and ownership, which shall be my||||
|||responsibility to carry out solution, and I||||
|||undertake to compensate by cash for Suzhou||||
|||Lvbang’s losses which are due to this matter,||||
|||guaranteeing no losses occur to Sino Great||||
|||Wall and Suzhou Lvbang for this matter.||||
|||”||||
|||“According to the “Agreement of Significant||||
|||Asset Replacement and Issue of Share to Buy||||
||Cash|Asset”(hereinafter referred to as|||Strict|
||comp|“Agreement”) signed among Victor Onward|March|Long-|perfo|
|Chen Lue||||||
||ensati|Holdings, all shareholders of Sino Great Wall|19,2015|term|rmin|
||on|and Union Development Group Co., Ltd|||g|
|||(hereinafter referred to as“ Union Group”) on||||
|||October 13, 2014, all the creditor’s rights and||||

Sino Great Wall Co., Ltd. The First Quarterly Report 2016
|||||||
|-|-|-|-|-|-|
|||liabilities related to place-out asset before the||||
|||delivery date of Victor Onward Holdings shall||||
|||be Union Group’s responsibility to carry out||||
|||solution; After the asset delivery date, if any||||
|||losses occur to Victor Onward Holdings in||||
|||reason of the liability transfer of asset||||
|||delivery, personnel placement, unsettled||||
|||dispute or controversy and other||||
|||compensation related to place-out asset,||||
|||payment obligation and punishment, Union||||
|||Group or the specified third party shall||||
|||sufficiently compensate all losses for Victor||||
|||Onward Holdings for the above matters.||||
|||I undertake, if Union Group and the specified||||
|||third party refuse to compensate the losses||||
|||caused by the above mentioned matters for||||
|||Victor Onward Holdings according to||||
|||the“ Agreement”, I will compensate by cash||||
|||for the Victor Onward Company within 5||||
|||working day in advance. Meanwhile, I will||||
|||reserve the resource rights for Union Group||||
|||and the specified third party.||||
|||According to“ Agreement of Shenzhen||||
|||Victor Onward Textile Industrial Co., Ltd.,||||
|||Chen Lue and He Feiyan Concerning on||||
|||Performance Compensation” and its||||
|||supplemental agreement , Chen Lue’s||||
|||promised Sino Great Wall that the net profit||||
|||deducted by incidental losses and attributable||||
||Perfor||||Strict|
|Chen Lue, He||to the parent companies’ owners after audition||||
||mance||May 11,|Long-|perfo|
|Feiyan||of 2015, 2016 and 2017 shall be respectively||||
||comm||2015|term|rmin|
|||more than RMB 345.8 million, RMB 438.5||||
||itment||||g|
|||million and RMB 538.2 million. If the net||||
|||profit of Sino Great Wall is less than the||||
|||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.||||
|Chen Lue; He|Indep|1. This reorganization is planned to place in|||Strict|
|Feiyan, Wuxi|enden|asset. At present, complete separation has|September3|Long-|perfo|
|Hengtai Jiuding|ce,|existed between me or other enterprises under|0,2015|term|rmin|
|Assets|comp|my possession (if any) and the listed company|||g|

Sino Great Wall Co., Ltd. The First Quarterly Report 2016
||||
|-|-|-|
|Management|etition|in staff, asset, finance, institution and business|
|Centre|in the|of Sino Great Wall. Independence exists in|
|（LP）;Yantai|same|both staff, asset, finance, institution and|
|Zhaoxuan Yuantai|indust|business and no confusion exists.|
|Jiuding Venture|ry|2. I undertake, after this reorganization, to|
|Investment||ensure the continued complete separation|
|Centre||between me or other enterprises under my|
|（LP）;Suzhou||possession(if any) and the listed company in|
|Taiyao||staff, asset, finance, institution and business,|
|Zhongshan||sustaining the independence in the listed|
|Jiuding||company’s staff, asset, finance, institution and|
|Investment||business, as follows:|
|Centre|||
|||(1).The Ensurance of Independence for Listed|
|（LP）;Jiaxing|||
|||Company’s Personnel|
|Jiahe Jiuding|||
|||Ensure that the general manager, the|
|Investment|||
|||vice-general manger, the chief financial|
|Centre（LP）|||
|||officer, the board secretary and the senior|
|||executives of the Company only accept salary|
|||in listed company, including no holding of|
|||any post except director and supervisor in my|
|||enterprise or other enterprises under my|
|||possession.|
|||2.Ensure the complete independence exists|
|||among the listed company’s labor, personnel,|
|||and salary management and me.|
|||3. The director, supervisor, general manager|
|||and other senior executives recommended by|
|||me have all been through the legal|
|||procedures, and I will not intervene the|
|||company’s board and the shareholder’s|
|||decision for appointing and dismissing|
|||personnel by exercising official power.|
|||(2)The Ensurance of the Asset Independence|
|||of Listed Company|
|||1.Ensure that the listed company possesses|
|||business system related to operation and the|
|||relevant completely-independent asset.|
|||2.Ensure that no occupation of mine exists in|
|||capitals and assets of the listed company.|
|||3.The Ensurance of the Financial|
|||Independence of Listed Company|
|||1.Ensure that the independent finance|
|||department and the independent financial|

Sino Great Wall Co., Ltd. The First Quarterly Report 2016
||
|-|
|calculating system set up by the listed|
|company, which possess normative and|
|independent financial and accounting rules.|
|2. Ensure that the listed company|
|independently opens a bank account, not|
|sharing the same bank account with me.|
|3.Ensure that the financial staff of the listed|
|company holds no part-time post in my|
|enterprise and other enterprises under my|
|possession.|
|4. Ensure that the listed company pays taxes|
|according to law.|
|5. Ensure that the listed company makes the|
|financial decision-making independently, I|
|will not intervene the utilization of the listed|
|company’s capital.|
|(4)The Ensurance of the Institutional|
|Independence of Listed Company|
|1.Ensure that the listed company sets up|
|perfect governance structure for the share|
|company’s legal person, which possesses|
|independent and complete institutional|
|framework|
|2.Ensure that the shareholder’s meeting, the|
|board of director, the independent director, the|
|supervisor and the general managers exercise|
|official powers according to laws, regulations|
|and articles of incorporation|
|(5)The Ensurance of the Business|
|Independence of Listed Company|
|1. Ensure that the listed company possesses|
|the asset, staff, qualification and ability for|
|independently holding business activities,|
|which possesses the independent, autonomous|
|and sustain operation ability catering to the|
|market.|
|2. Ensure that I will not intervene the listed|
|company’s business activities except|
|exercising shareholder’s rights.|
|3.Ensure that I or other enterprises under my|
|possession will avoid working on the listed|
|company’s main business which possesses|
|substantial competition.|

Sino Great Wall Co., Ltd. The First Quarterly Report 2016
|||||||
|-|-|-|-|-|-|
|||4. Ensure to reduce the related transaction||||
|||between me and the listed company or||||
|||between other enterprises under my||||
|||possession and the listed company as much as||||
|||possible; When confirming necessary but||||
|||unavoidable related transaction, I will ensure||||
|||the fair operation according to the principle of||||
|||market culture and the fair price, and fulfill||||
|||the transaction procedures and the obligation||||
|||of disclosing information according to||||
|||relevant laws and regulations and normative||||
|||document.||||
|Wuxi Hengtai||||||
|Jiuding Assets||||||
|Management||||||
|||“Once I or our unit acquire the newly-added||||
|Centre（LP）;||||||
|||share of Victor Onward Company through||||
|Yantai Zhaoxuan||||||
|||this transaction, no transfers will occur in any||||
|Yuantai Jiuding||||||
|||way within 12 months from the listing date,||||
|Venture||||||
|||including but not limited to public transfer by||||
|Investment||||||
|||securities market or transfer by agreement,|||Strict|
|Centre||||12||
||Share|and no entrusting for others to manage my|March||perfo|
|（LP）;Suzhou||||month||
||lock|holding share of Victor Onward Holdings .|19,2015||rmin|
|Tianyao||||s||
|||Once the above-mentioned lockup period|||g|
|Zhongshan||||||
|||expires, I will implement the selling or||||
|Jiuding||||||
|||transferring of the newly-added share of||||
|Investment||||||
|||Victor Onward Holdings according to the||||
|Centre（LP）;||||||
|||relevant provision of CSRC and SZSE.||||
|Jiaxing Jiahe||||||
|Jiuding||||||
|Investment||||||
|Centre（LP）||||||
|Wuxi Hengtai||||||
|||“1.Before this reorganization, the fairness and||||
|Jiuding Assets||||||
|||reasonableness of pricing and the legitimacy||||
|Management||||||
|||and effectiveness of decision-making||||
|Centre（LP）;||||||
|||procedure exist in the transaction(if any)||||
|Yantai Zhaoxuan||||||
||Relate|between me or the enterprise under my|||Strict|
|Yuantai Jiuding||||||
||d|possession(if any) and Sino Great Wall which|March|Long-|perfo|
|Venture||||||
||transa|is planned to place asset in, no related|19,2015|term|rmin|
|Investment||||||
||ctions|transaction with obvious unfairness exists ;|||g|
|Centre||||||
|||2.After this reorganization, I or the||||
|（LP）;Suzhou||||||
|||enterprise under my possession will avoid and||||
|Tianyao||||||
|||reduce the related transaction with listed||||
|Zhongshan||||||
|||company as much as possible. As for any||||
|Jiuding||||||

Sino Great Wall Co., Ltd. The First Quarterly Report 2016
|||||||
|-|-|-|-|-|-|
|Investment||unavoidable or reasonable related transaction,||||
|Centre（LP）;||I or the enterprise under my possession will||||
|Jiaxing Jiahe||sign the agreement according to laws and||||
|Jiuding||fulfill the lawful procedure, and fulfill||||
|Investment||relevant approval procedure for internal||||
|Centre（LP）||decision-making and timely fulfill the||||
|||obligation of disclosing information according||||
|||to law, following relevant laws, regulations,||||
|||other normative documents and articles of||||
|||listed company, which is to guarantee the||||
|||fairness and reasonableness in related||||
|||transaction pricing, to guarantee the fairness||||
|||of transaction condition and to guarantee not||||
|||to utilize the related transaction to illegally||||
|||transfer the capital and profit of listed||||
|||company, and not to utilize this transaction to||||
|||engage in any behaviors which will cause any||||
|||losses to listed company or other||||
|||shareholder’s legitimate rights. Once I violate||||
|||the above promises and cause losses to the||||
|||listed company, I will compensate the listed||||
|||company for the losses caused by the this||||
|||matter.||||
|||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 as the expected||||
|||compensations concerning to the regaining of||||
|||plots planned as schools within the right of||||
|||land use of Nanyou Industrial Park of||||
||Incom||||Strict|
|Union||Nanshan District have not been recorded in||||
||e||March|Long-|perfo|
|Development||the assessment. Therefore, Union Group||||
||dispos||19,2015|term|rmin|
|Group Co., Ltd.||promises that after the reorganization, if||||
||al||||g|
|||Union or a third party appointed by Union||||
|||receives compensations or incomes related to||||
|||above-mentioned disposed assets which are||||
|||house property and land without property||||
|||certificate as well as regaining of plots||||
|||planned as schools, Union will return the||||
|||benefits to Victor Onward Holdings, in 10||||
|||working days since the collection. The actual||||
|||costs and fees during the possession of the||||

Sino Great Wall Co., Ltd. The First Quarterly Report 2016
|||||||
|-|-|-|-|-|-|
|||house property and land and the paid as well||||
|||as the unpaid but necessary costs and fees for||||
|||the reception of the above-mentioned benefits||||
|||for Union Group or its third party will be||||
|||deducted from the income. The specific||||
|||benefits and payable costs and fees should be||||
|||confirmed jointly by Union Group and Victor||||
|||Onward Holdings based on the actual||||
|||situations. （Notes:On June 25, 2015,All||||
|||shareholders of Victor Onward Holdings,||||
|||Union Group and Sino Great Wall Signed||||
|||supplementary agreement, and specified that||||
|||the land and houses without ownership||||
|||certificate of Victor Onward Holdings located||||
|||at the factory area of Kuixin community of||||
|||Kuichong Street office of Longgang District||||
|||(the land area is about 50,000 square meters,||||
|||the built-up area of houses is about 25,000||||
|||square meters, among them about 18,000||||
|||square meters of buildings at built-up area are||||
|||within the plan of removal and collection of||||
|||government，hereinafter referred as||||
|||“undocumented property) still belongs to||||
|||Victor Onward Holdings. And the benefits and||||
|||risks of the real estate without certificate are||||
|||enjoyed and assumed by Victor Onward||||
|||Holdings.||||
|||According to the Term 5.5.3 of Agreement on||||
|||Major Asset Replacement and Asset Purchase||||
|||Through Issuing Shares (hereinafter referred||||
|||to as Agreement) signed on October 13, 2014||||
|||by the company and all shareholders of Victor||||
||Cash||||Strict|
|||Onward Co. Ltd.. and Sino Great Wall, Victor||||
|Union||||||
||comp||March|Long-|perfo|
|Development||Onward Holdings should obtain the letter of||||
||ensati||19,2015|term|rmin|
|Group Co., Ltd.||||||
|||approval concerning the transferred debts of||||
||on||||g|
|||the disposed assets from the creditor||||
|||(including the guarantee, similarly||||
|||hereinafter) before the date of assets delivery.||||
|||In the situation of debts on Victor Onward||||
|||Holdings due to the absence of creditor’s||||

Sino Great Wall Co., Ltd. The First Quarterly Report 2016
||
|-|
|consent, the company or the third party|
|appointed by the company is in charge of|
|paying off debts or reaching agreement on the|
|solution with the creditor. When there are|
|losses caused by improper solutions of the|
|company or the third party appointed by the|
|company, the company or the third party|
|appointed by the company will fully|
|compensate for the caused losses of Victor|
|Onward Holdings in 5 working days after|
|receiving the notice.|
|According to the Term 5.5.4 of Agreement,|
|after the date of assets delivery, any|
|compensations, obligations of payment and|
|penalties caused by disposed assets as well as|
|unsettled disputes in Victor Onward Holdings|
|will be undertaken and solved by the|
|company or the third party appointed by the|
|company, and Victor Onward Holdings|
|assumes no responsibility. When there are|
|losses caused by it, the company or the third|
|party appointed by the company will fully|
|compensate for the caused losses of Victor|
|Onward Holdings in 5 working days after|
|receiving the notice.|
|According to the Term 5.6.1 of Agreement|
|and based on the principle of “staff|
|arrangement according to the assets”, the|
|labor relations, social insurance relations|
|including pension, medical treatment,|
|unemployment, working injury and maternity,|
|and other liable welfare and salary of all the|
|staff in Victor Onward Holdings. (including|
|but not limited to on-post employees,|
|employees awaiting job assignments, retired|
|employees, retained employees with suspend|
|salary, transferred employees, and temporary|

Sino Great Wall Co., Ltd. The First Quarterly Report 2016
||||||
|-|-|-|-|-|
|||employees, etc) will be transferred to the|||
|||company or the third party appointed by the|||
|||company. Compensations or related matters|||
|||(if any) due to the termination of labor|||
|||relationship in advance with Victor Onward|||
|||Holdings, the company or the third party|||
|||appointed by the company will be in charge of|||
|||the payment. The company promises that for|||
|||the losses caused by matters such as the|||
|||above-mentioned debt transfers of disposed|||
|||assets, personnel arrangement, unsettled|||
|||disputes, potential debts, payment obligations|||
|||and penalties, the company or the third party|||
|||appointed by the company will fully|||
|||compensate for the losses of Victor Onward|||
|||Holdings due to the above-mentioned matters|||
|||based on the Agreement in cash.|||
|Commitments|||||
|make in initial|||||
||No|No|No|No|
|public offering|||||
|or re-financing|||||
|Equity|||||
|incentive|No|No|No|No|
|commitment|||||
|Other|||||
|commitments|||||
|for medium|No|No|No|No|
|and small|||||
|shareholders|||||
|Completed on|||||
||Yes||||
|time(Y/N)|||||
|If the|||||
|commitments|||||
|is not fulfilled|||||
|on time, shall|||||
||No||||
|explain the|||||
|specify reason|||||
|and the next|||||
|work plan|||||

Sino Great Wall Co., Ltd. The First Quarterly Report 2016IV．Prediction of Business performance for January- June 2016
Estimation of accumulative net profit from the beginning of the year to the end of next report period to be loss probably or the warning of its material change compared with the corresponding period of the last year and explanation of reason.
√ Applicable□ Not applicable
Forenotice of earnings: Turning loss to profit
Type of date filled for the prediction: Interval figures
|||||||
|-|-|-|-|-|-|
|||||Same period of the previous year||
||Year beginning to end of next report period|||||
|||||Before recombination|After recombination|
|Estimated amount of||||||
|accumulative net|19,000|--|22,000|-60.86|16,534.23|
|profit(RMB’0000)||||||
|Basic earnings per shares||||||
||0.42|--|0.49|-0.004|0.37|
|(Yuan/share)||||||
||In 2015, the company completed major assets restructuring. Wherein, on July 29, 2015, the|||||
||ownership of 100% of Sino Great Wall International Engineering Co., Ltd., namely, the underlying|||||
||assets of the major assets restructuring this time, was transferred to the company. On October 26,|||||
|Notes to forenotice of|2016, the fun raised fro the major assets restructuring was fully transferred into the company’s|||||
|earnings|account. In the later half year of 2015, the company completed the major assets restructuring. Since|||||
||so, the quality of assets and operating condition in the company had fundamentally improved if|||||
||compared with the past, while its profitability was greatly enhanced and the businesses in the|||||
||company maintained stable and on the rise.|||||

V Securities investments
□ Applicable√ Not applicable
No such cases in the Reporting Period
VI. Investment in derivatives
□ Applicable√Not applicable
No such cases in the Reporting Period
VII. The registration form of acceptance of investigation, communication and interview in the report period for future reference
√ Applicable□ Not applicable
|||||
|-|-|-|-|
|Reception time|Way of reception|Types of visitors|Basic index|
|January 20,2016|Onsite investigation|Organization|The interactive relation with the|

Sino Great Wall Co., Ltd. The First Quarterly Report 2016
|||||
|-|-|-|-|
||||investors on Shenzhen Stock|
||||Exchange platform about Sino Great|
||||Wall International Engineering Co.,|
||||Ltd: Record of the investors relations|
||||activities on January 20, 2016|
||||The interactive relation with the|
||||investors on Shenzhen Stock|
||||Exchange platform about Sino Great|
|February 1,2016|Onsite investigation|Organization||
||||Wall International Engineering Co.,|
||||Ltd: Record of the investors relations|
||||activities on February 1, 2016|
||||The interactive relation with the|
||||investors on Shenzhen Stock|
||||Exchange platform about Sino Great|
|March 3,2016|Onsite investigation|Organization||
||||Wall International Engineering Co.,|
||||Ltd: Record of the investors relations|
||||activities on March 3, 2016|
||||The interactive relation with the|
||||investors on Shenzhen Stock|
||||Exchange platform about Sino Great|
|March 11,2016|Onsite investigation|Organization||
||||Wall International Engineering Co.,|
||||Ltd: Record of the investors relations|
||||activities on March 11, 2016|

VIII. External guarantee get out of line
□ Applicable√Not applicable
The Company has no external guarantee get out of the line in the Period
IX. Controlling shareholder and its related parties occupying non-business capital of the listed company
□ Applicable√Not applicable
There are no controlling shareholder and its related parties occupying non-business capital of the listed company in Period
Sino Great Wall Co., Ltd. The First Quarterly Report 2016 IV. Financial Statement
I. Financial statement
1. Consolidated balance sheet
Preparedby：Sino Great Wall Co., Ltd.
March 31,2016
In RMB
||||
|-|-|-|
|Items|At the end of term|Beginning of term|
|Current asset：|||
|Monetary fund|821,348,742.05|695,384,561.31|
|Settlement provision|||
|Outgoing call loan|||
|Financial assets measured at fair|||
|value with variations accounted into|1,113,492.32|1,102,961.04|
|current income account|||
|Derivative financial assets|||
|Bill receivable|221,856,161.20|220,448,747.94|
|Account receivable|2,759,708,357.93|2,352,808,087.33|
|Prepayments|73,129,375.81|77,707,568.38|
|Insurance receivable|||
|Reinsurance receivable|||
|Provisions of Reinsurance contracts|||
|receivable|||
|Interest receivable|||
|Dividend receivable|||
|Other account receivable|257,897,479.34|239,952,886.10|
|Repurchasing of financial assets|||
|Inventories|79,374,208.07|168,133,668.91|
|Assets held for sales|||
|Non-current asset due in 1 year|14,498,260.05|15,717,270.60|
|Other current asset|12,891,321.58|14,138,411.87|

Sino Great Wall Co., Ltd. The First Quarterly Report 2016
||||
|-|-|-|
|Total of current assets|4,241,817,398.35|3,785,394,163.48|
|Non-current assets：|||
|Loans and payment on other’s behalf|||
|disbursed|||
|Disposable financial asset|||
|Expired investment in possess|||
|Long-term receivable|||
|Long term share equity investment|||
|Property investment|||
|Fixed assets|42,651,966.95|43,846,215.63|
|Construction in progress|10,352,667.40|10,016,928.24|
|Engineering material|||
|Fixed asset disposal|||
|Production physical assets|||
|Gas & petrol|||
|Intangible assets|9,151,528.43|9,267,746.33|
|R & D petrol|||
|Goodwill|6,724,316.91|6,724,316.91|
|Long-germ expenses to be amortized|15,932,503.99|18,909,785.69|
|Deferred income tax asset|52,413,080.50|47,950,278.07|
|Other non-current asset|108,080,565.28|95,353,390.28|
|Total of non-current assets|245,306,629.46|232,068,661.15|
|Total of assets|4,487,124,027.81|4,017,462,824.63|
|Current liabilities|||
|Short-term loans|673,408,496.07|225,408,496.07|
|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|||
|Bill payable|135,767,417.39|143,410,167.17|
|Account payable|1,362,855,428.34|1,332,619,954.77|
|Advance payment|40,121,518.95|64,963,842.60|

Sino Great Wall Co., Ltd. The First Quarterly Report 2016
||||
|-|-|-|
|Selling of repurchased financial|||
|assets|||
|Fees and commissions receivable|||
|Employees’ wage payable|23,434,735.00|12,669,619.20|
|Tax payable|272,420,557.54|284,826,290.11|
|Interest payable|1,399,279.72|527,969.26|
|Dividend payable|||
|Other account payable|401,331,304.86|635,200,976.60|
|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|12,794,047.68|7,135,752.00|
|Other current liability|58,823,529.00||
|Total of current liability|2,982,356,314.55|2,706,763,067.78|
|Non-current liabilities：|||
|Long-term loan|145,669,124.50|30,140,649.14|
|Bond payable|||
|Including：preferred stock|||
|Sustainable debt|||
|Long-term payable|||
|Long-term payable employees’s|||
|remuneration|||
|Special payable|||
|Expected liabilities|||
|Deferred income|||
||17,023.85|15,444.16|
|Deferred income tax liability|||
|Other non-current liabilities|||
|Total non-current liabilities|145,686,148.35|30,156,093.30|
||3,128,042,462.90|2,736,919,161.08|
|Total of liability|||
|Owners’ equity|||
||446,906,582.00|446,906,582.00|
|Share capital|||
|Other equity instrument|||
|Including：preferred stock|||

Sino Great Wall Co., Ltd. The First Quarterly Report 2016
||||
|-|-|-|
|Sustainable debt|||
|Capital reserves|-50,367,862.22|-50,367,862.22|
|Less：Shares in stock|||
|Other comprehensive income|||
|Special reserves|48,573,554.79|46,014,941.54|
|Surplus reserves|92,986,069.52|84,394,441.23|
|Common risk provision|||
||823,304,290.89|755,308,636.19|
|Undistributed profit|||
|Total of owner’s equity belong to the|||
||1,361,402,634.98|1,282,256,738.74|
|parent company|||
|Minority shareholders’ equity|-2,321,070.07|-1,713,075.19|
|Total of owners’ equity|1,359,081,564.91|1,280,543,663.55|
|Total of liabilities and owners’ equity|4,487,124,027.81|4,017,462,824.63|

 Legal Representative:Chen Lue Person in charge ofaccounting：Cui Hongli Accounting Dept Leader:Cui Hongli
2.Parent Company Balance Sheet
In RMB
||||
|-|-|-|
|Items|At the end of term|Beginning of term|
|Current asset：|||
|Monetary fund|349,184,323.76|239,145,251.31|
|Financial assets measured at fair|||
|value with variations accounted into|||
|current income account|||
|Derivative financial assets|||
|Bill receivable|||
|Account receivable|7,040.00|29,083.30|
|Prepayments|30,000,000.00||
|Interest receivable|||
|Dividend receivable|||
|Other account receivable|351,215,958.44||
|Inventories|||
|Assets held for sales|||
|Non-current asset due in 1 year|||

Sino Great Wall Co., Ltd. The First Quarterly Report 2016
||||
|-|-|-|
|Other current asset|||
|Total of current assets|730,407,322.20|239,174,334.61|
|Non-current assets：|||
|Disposable financial asset|||
|Expired investment in possess|||
|Long-term receivable|||
|Long term share equity investment|3,079,451,536.66|3,079,451,536.66|
|Property investment|||
|Fixed assets|5,451.25||
|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|||
|Deferred income tax asset|382.68|382.68|
|Other non-current asset|||
|Total of non-current assets|3,079,457,370.59|3,079,451,919.34|
|Total of assets|3,809,864,692.79|3,318,626,253.95|
|Current liabilities|||
|Short-term loans|500,000,000.00||
|Financial liabilities measured at fair|||
|value with variations accounted into|||
|current income account|||
|Derivative financial liabilities|||
|Bill payable|||
|Account payable|||
|Advance payment|||
|Employees’ wage payable|428,275.54||
|Tax payable|97,953,522.86|98,150,372.30|
|Interest payable|1,090,083.33||
|Dividend payable|||

Sino Great Wall Co., Ltd. The First Quarterly Report 2016
||||
|-|-|-|
|Other account payable|49,268.86|803,339.56|
|Classified as held for sale debt|||
|Non-current liability due in 1|||
|year|||
|Other current liability|||
|Total of current liability|599,521,150.59|98,953,711.86|
|Non-current liabilities：|||
|Long-term loan|||
|Bond payable|||
|Including：preferred stock|||
|Sustainable debt|||
|Long-term payable|||
|Long-term payable to|||
|employees|||
|Special payable|||
|Expected liabilities|||
|Deferred income|||
|Deferred income tax liability|||
|Other non-current liabilities|||
|Total of Non-current liabilities|||
|Total of liability|599,521,150.59|98,953,711.86|
|Owners’ equity|||
|Share capital|446,906,582.00|446,906,582.00|
|Other equity instrument|||
|Including：preferred stock|||
|Sustainable debt|||
|Capital reserves|2,489,294,901.37|2,489,294,901.37|
|Less：Shares in stock|||
|Other comprehensive income|||
|Special reserves|||
|Surplus reserves|26,309,287.00|26,309,287.00|
|Undistributed profit|247,832,771.83|257,161,771.72|
|Total of owners’ equity|3,210,343,542.20|3,219,672,542.09|
|Total of liabilities and owners’ equity|3,809,864,692.79|3,318,626,253.95|

Sino Great Wall Co., Ltd. The First Quarterly Report 2016 3.Consolidated Income statement
In RMB
||||
|-|-|-|
|Items|Amount in this period|Amount in last period|
|I. Income from the key business|924,667,155.55|825,262,582.68|
|Incl：Business income|924,667,155.55|825,262,582.68|
|Interest income|||
|Insurance fee earned|||
|Fee and commission received|||
|II. Total business cost|829,822,766.63|761,590,182.07|
|Incl：Business cost|725,086,112.57|685,216,235.95|
|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|15,324,842.63|24,352,158.65|
|Sales expense|2,429,168.94|2,631,851.19|
|Administrative expense|42,252,271.83|29,832,508.95|
|Financial expenses|14,979,885.12|6,352,212.68|
|Asset impairment loss|29,750,485.54|13,205,214.65|
|Add：Gains from change of fir value|||
||10,531.28|11,511.52|
|（“-”for loss）|||
|Investment gain（“-”for loss）|||
|Incl: investment gains from affiliates|||
|Gains from currency exchange（“-”for|||
|loss）|||
|III. Operational profit（“-”for loss）|94,854,920.20|63,683,912.13|
|Add ：Non-operational income||347,480.50|
|Including：Income from disposal of|||
|||4,455.00|
|non-current assets|||
|Less：Non business expenses||1,500.00|
|Incl：Loss from disposal of non-current|||

Sino Great Wall Co., Ltd. The First Quarterly Report 2016
||||
|-|-|-|
|assets|||
|IV.Total profit(“-”for loss)|94,854,920.20|64,029,892.63|
|Less：Income tax expenses|18,875,632.10|16,152,443.52|
|V. Net profit|75,979,288.10|47,877,449.11|
|Net profit attributable to the owners of|||
||76,587,282.98|47,877,449.11|
|parent company|||
|Minority shareholders’ equity|-607,994.88||
|VI. Other comprehensive income|||
|Net of profit of other comprehensive in|||
|come attributable to owners of the pare|||
|nt company.|||
|（I）Other comprehensive income|||
|items that will not be reclassified into|||
|gains/losses in the subsequent|||
|accounting period|||
|1.Re-measurement of defined benefit pl|||
|ans of changes in net debt or net assets|||
|2.Other comprehensive income under t|||
|he equity method investee can not be re|||
|classified into profit or loss.|||
|（II）|||
|Other comprehensive income that will|||
|be reclassified into profit or loss.|||
|1.Other comprehensive income under t|||
|he equity method investee can be reclas|||
|sified into profit or loss.|||
|2.Gains and losses from changes in fair|||
|value available for sale financial assets|||
|3.Held-to-maturity investments reclassi|||
|fied to gains and losses of available for|||
|sale financial assets|||
|4.The effective portion of cash flow he|||
|dges and losses|||
|5.Translation differences in currency fi|||
|nancial statements|||
|6.Other|||
|Net of profit of other comprehensive in|||
|come attributable to Minority|||

Sino Great Wall Co., Ltd. The First Quarterly Report 2016
||||
|-|-|-|
|shareholders’ equity|||
|VII. Total comprehensive income|75,979,288.10|47,877,449.11|
|Total comprehensive income|||
|attributable to the owner of the parent|76,587,282.98|47,877,449.11|
|company|||
|Total comprehensive income|||
||-607,994.88||
|attributable minority shareholders|||
|VIII. Earnings per share|||
|（I）Basic earnings per share|0.1714|0.1071|
|(II)Diluted earnings per share|0.1714|0.1071|

 If there are entities merged under common control, their net profit realized before the merger were totaled toRMB***. While it wasRMB*** previous period.
Legal Representative: Chen Lue Person in charge ofaccounting：Cui Hongli Accounting Dept Leader: Cui Hongli
4. Income statement of the Parent Company
In RMB
||||
|-|-|-|
|Items|Amount in this period|Amount in last period|
|I. Income from the key business|63,540.00|948,730.00|
|Less：Business cost|0.00|84,293.00|
|Business tax and surcharge||74,864.00|
|Sales expense|||
|Administrative expense|3,778,977.94|1,909,174.00|
|Financial expenses|5,615,092.65||
|Asset impairment loss|-1,530.70||
|Add：Gains from change of fir|||
|value （“-”for loss）|||
|Investment gain（“-”for loss）|||
|Incl: investment gains from|||
|affiliates|||
|II. Operational profit（“-”for loss）|-9,328,999.89|-677,137.00|
|Add ：Non-operational income|||
|Including：Income from disposal|||
|of non-current assets|||

Sino Great Wall Co., Ltd. The First Quarterly Report 2016
||||
|-|-|-|
|Less：Non business expenses|||
|Incl：Loss from disposal of|||
|non-current assets|||
|III.Total profit(“-”for loss)|-9,328,999.89|-677,137.00|
|Less：Income tax expenses|||
|IV. Net profit（“-”for net loss）|-9,328,999.89|-677,137.00|
|V.Net of profit of other comprehensiv|||
|||-203,899.00|
|e income|||
|（I）Other comprehensive income|||
|items that will not be reclassified into|||
|||-203,899.00|
|gains/losses in the subsequent|||
|accounting period|||
|1.Re-measurement of defined benefit|||
|plans of changes in net debt or net ass|||
|ets|||
|2.Other comprehensive income under|||
|the equity method investee can not b|||
|e reclassified into profit or loss.|||
|（ II ）|||
|Other comprehensive income that wil|||
|l be reclassified into profit or loss.|||
|1.Other comprehensive income under|||
|the equity method investee can be re|||
|classified into profit or loss.|||
|2.Gains and losses from changes in fa|||
|ir value available for sale financial as|||
|sets|||
|3.Held-to-maturity investments reclas|||
|sified to gains and losses of available|||
|for sale financial assets|||
|4.The effective portion of cash flow h|||
|edges and losses|||
|5.Translation differences in currency|||
|financial statements|||
|6.Other|||
|VI. Total comprehensive income|-9,328,999.89|-881,036.00|
|VII. Earnings per share：|||
|（I）Basic earnings per share|||

Sino Great Wall Co., Ltd. The First Quarterly Report 2016
||
|-|
|(II)Diluted earnings per share|

5. Consolidated Cash flow statement
In RMB
||||
|-|-|-|
|Items|Amount in this period|Amount in last period|
|I.Cash flows from operatingactivities|||
|Cash received from sales of goods orrending of services|||
||520,278,123.47|476,713,459.34|
|Net increase of customer depositsand capital kept for brother company|||
|Net increase of loans from centralbank|||
|Net increase of inter-bank loans fromother financial bodies|||
|Cash received against originalinsurance contract|||
|Net cash received from reinsurancebusiness|||
|Net increase of client deposit andinvestment|||
|Net increase of the financial assetsthat are measured at fair value andwhose movement is counted to thecurrent gain and loss|||
|Cash received as interest, processingfee and commission|||
|Net increase of inter-bank fundreceived|||
|Net increase of repurchasingbusiness|||
|Tax returned|||
|Other cash received from businessoperation|||
||623,823,935.88|249,789,551.75|
|Sub-total of cash inflow|1,144,102,059.35|726,503,011.09|
|Cash paid for purchasing ofmerchandise and services|||
||556,084,798.41|338,006,945.73|

Sino Great Wall Co., Ltd. The First Quarterly Report 2016
||||
|-|-|-|
|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|48,399,981.65|37,341,995.96|
|Taxes paid|28,333,891.29|12,195,272.46|
|Other cash paid for business|||
||830,256,141.01|455,067,642.29|
|activities|||
|Sub-total of cash outflow from|||
||1,463,074,812.36|842,611,856.44|
|business activities|||
|Cash flow generated by business|||
||-318,972,753.01|-116,108,845.35|
|operation, net|||
|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||6,710,715.18|
|other long-term assets|||
|Cash paid as investment|||
|Net increase of loan against pledge|||
|Net cash received from subsidiaries|||
|and other operational units|||
|Other cash paid for investment|||

Sino Great Wall Co., Ltd. The First Quarterly Report 2016
||||
|-|-|-|
|activities|||
|Sub-total of cash outflow due to|||
|||6,710,715.18|
|investment activities|||
|Net cash flow generated by|||
|||-6,710,715.18|
|investment|||
|III.Cash flow generated by financing|||
|Cash received as investment|||
|Incl: Cash received as investment|||
|from minor shareholders|||
|Cash received as loans|744,000,000.00|91,000,000.00|
|Cash received from bond placing|||
|Other financing –related ash received||98,000,000.00|
|Sub-total of cash inflow from|||
||744,000,000.00|189,000,000.00|
|financing activities|||
|Cash to repay debts|181,766,458.58|90,276,762.40|
|Cash paid as dividend, profit, or|||
||11,329,317.49|6,151,142.58|
|interests|||
|Incl: Dividend and profit paid by|||
|subsidiaries to minor shareholders|||
|Other cash paid for financing|||
||144,808,136.00|9,952,145.00|
|activities|||
|Sub-total of cash outflow due to|||
||337,903,912.07|106,380,049.98|
|financing activities|||
|Net cash flow generated by financing|406,096,087.93|82,619,950.02|
|IV. Influence of exchange rate|||
|alternation on cash and cash||-162,583.65|
|equivalents|||
|V.Net increase of cash and cash|||
||87,123,334.92|-40,362,194.16|
|equivalents|||
|Add: balance of cash and cash|||
||582,745,756.81|243,759,954.90|
|equivalents at the beginning of term|||
|VI ..Balance of cash and cash|||
||669,869,091.73|203,397,760.74|
|equivalents at the end of term|||

6. Cash Flow Statement of the Parent Company
In RMB
Sino Great Wall Co., Ltd. The First Quarterly Report 2016
||||
|-|-|-|
|Items|Amount in this period|Amount in last period|
|I.Cash flows from operating|||
|activities|||
|Cash received from sales of goods or|||
||77,390.00|948,730.00|
|rending of services|||
|Tax returned|||
|Other cash received from business|||
||266,261,121.80|940,105.00|
|operation|||
|Sub-total of cash inflow|266,338,511.80|1,888,835.00|
|Cash paid for purchasing of|||
|merchandise and services|||
|Cash paid to staffs or paid for staffs||440,272.00|
|Taxes paid|258,400.59|395,215.00|
|Other cash paid for business|||
||652,575,425.78|873,515.00|
|activities|||
|Sub-total of cash outflow from|||
||652,833,826.37|1,709,002.00|
|business activities|||
|Cash flow generated by business|||
||-386,495,314.57|179,833.00|
|operation, net|||
|II.Cash flow generated by investing|||
|Cash received from investment|||
|retrieving|||
|Cash received as investment gains|||
|Net cash retrieved from disposal of|||
|fixed assets, intangible assets, and|||
|other long-term assets|||
|Net cash received from disposal of|||
|subsidiaries or other operational|||
|units|||
|Other investment-related cash|||
|received|||
|Sub-total of cash inflow due to|||
|investment activities|||
|Cash paid for construction of fixed|||
|assets, intangible assets|||
|and other long-term assets|||
|Cash paid as investment|||
|Net cash received from subsidiaries|||

Sino Great Wall Co., Ltd. The First Quarterly Report 2016
||||
|-|-|-|
|and other operational units|||
|Other cash paid for investment|||
|activities|||
|Sub-total of cash outflow due to|||
|investment activities|||
|Net cash flow generated by|||
|investment|||
|III.Cash flow generated by financing|||
|Cash received as investment|||
|Cash received as loans|500,000,000.00||
|Cash received from bond placing|||
|Other financing –related ash received|||
|Sub-total of cash inflow from|||
||500,000,000.00||
|financing activities|||
|Cash to repay debts|||
|Cash paid as dividend, profit, or|||
||3,465,612.98||
|interests|||
|Other cash paid for financing|||
|activities|||
|Sub-total of cash outflow due to|||
||3,465,612.98||
|financing activities|||
|Net cash flow generated by financing|496,534,387.02||
|IV. Influence of exchange rate|||
|alternation on cash and cash|||
|equivalents|||
|V.Net increase of cash and cash|||
||110,039,072.45|179,833.00|
|equivalents|||
|Add: balance of cash and cash|||
||239,145,251.31|23,480,977.00|
|equivalents at the beginning of term|||
|VI ..Balance of cash and cash|||
||349,184,323.76|23,660,810.00|
|equivalents at the end of term|||

II.Auditor’ report
Is the First Quarterly Report be audited?
□ Yes√No
The First Quarterly report is not audited.