Stockcode:000018，200018 StockID:SinoGreatWall，Sino-B AnnouncementNo.2019-047 SinoGreatWallCo.,Ltd. TheFirstQuarterlyReport2019 1ImportantNotice TheBoardofDirectors,SupervisoryCommittee,alldirectors,supervisorsandseniorexecutivesoftheCompanyherebyguaranteesthattherearenomisstatement,misleadingrepresentationorimportantomissionsinthisreportandshallassumejointandseveralliabilityfortheauthenticity,accuracyandcompletenessofthecontentshereof.OtherdirectorsattendingtheMeetingforannualreportdeliberationexceptforthefollowed: Nameofdirectorabsent Titleforabsentdirector Reasonsforabsent Attorney JiangChongguang Independentdirector Duetoworkreasons YuHaichun Mr.ChenLue,PersoninchargeoftheCompany,Ms.YangChunling,ChieffinancialofficerandtheMs.YangChunling,thepersoninchargeoftheaccountingdepartment(thepersoninchargeoftheaccounting)herebyconfirmtheauthenticityandcompletenessofthefinancialreportenclosedinthisQuarterlyReport. II.Basicinformationaboutthecompany I.Mainaccountingdataandfinancialindexes IndicatebytickmarkwhethertheCompanyneedstoretroactivelyrestateanyofitsaccountingdata. □Yes √No Changesofthisperiod Thisperiod Sameperiodoflastyear oversameperiodoflast year（％） Operatingincome（RMB） 152,514,127.64 923,442,740.92 -83.48% Netprofitattributabletotheshareholders ofthelistedcompany（RMB） -128,964,725.66 218,523,628.75 -159.02% Netprofitafterdeductingof non-recurringgain/lossattributableto -128,964,725.66 59,559,955.14 -316.53% theshareholdersoflistedcompany （RMB） Cashflowgeneratedbybusiness operation,net（RMB） 24,863,912.37 809,676,459.22 -96.93% Basicearningpershare(RMB/Share) -0.08 0.13 -161.54% Dilutedgainsper -0.08 0.13 -161.54% share(RMB/Share)(RMB/Share) WeightedaverageROE(%) -75.37% 9.69% -85.06% Changesofthis Endofthisperiod Endoflastperiod period-endoversame period-endoflastyear(%) Grossassets（RMB） 9,365,266,921.60 9,603,455,934.89 -2.48% Netassetsattributabletothe shareholdersofthelistedcompany 105,937,489.04 235,202,473.51 -54.96% （RMB） Itemsandamountofnon-currentgainsandlosses √Applicable□Notapplicable InRMB Changesofthisperiod-end Endofthisperiod Endoflastperiod oversameperiod-endoflast year(%) Total 0.00 -- FortheCompany’snon-recurringgain/lossitemsasdefinedintheExplanatoryAnnouncementNo.1on informationdisclosureforCompaniesOfferingtheirSecuritiestothePublic-Non-recurringGainsandLossesanditsnon-recurringgain/lossitemsasillustratedintheExplanatoryAnnouncementNo.1oninformationDisclosureforCompaniesofferingtheirsecuritiestothepublic-non-recurringGainsandlosseswhichhavebeendefinedasrecurringgainsandlosses,itisnecessarytoexplainthereason. □Applicable√Notapplicable NoneofNon-recurringgain/lossitemsrecognizedasrecurringgain/loss/itemsasdefinedbytheinformation disclosureexplanatoryAnnouncementNo.1-Non�Crecurringgain/lossinthereportperiod. II.TotalShareholdersandSharesHeldbyTopTenShareholdersattheEndoftheReportingPeriod 1.AboutTotalCommonShareholders,TotalPreferenceShareholderswiththeVotingPowerRecoveredandtheSharesHeldbyTopTenCommonShareholders Inshares Totalpreferenceshareholderswith Totalnumberofcommon 78,961thevotingpowerrecoveredatthe 0 shareholdersattheperiod-end endofthereportingperiod(ifany) Sharesheldbythetop10shareholders Amountof Pledgingorfreezing Propertiesof Share tradableshares Shareholdername Quantity Statusofthe shareholder proportion% withConditional Quantity shares held DomesticNatural Pledge 583,454,556 ChenLue 34.36% 583,454,556 437,590,917 person Freeze 583,454,462 STYLE-SUCCESForeignlegal 5.47% 92,970,910 0 SLIMITED person DomesticNon- UnionHoldings State-ownedlegal 5.18% 87,935,921 0 Co.,Ltd. person DomesticNatural HeFeiyan 3.23% 54,800,458 0Freeze 54,800,458 person JiutaiFund－ Bankof Communications －JiutaiHuitongOther 2.40% 40,696,772 0 No.2specific customerasset managementplan RichCrown Foreignlegal InvestmentCo., 1.37% 23,235,313 0 person Ltd. QinghaiHeyi DomesticNon- Industry State-ownedlegal 0.79% 13,357,084 0Pledge 13,357,084 Development person Co.,Ltd. DomesticNatural HuangHuaian 0.67% 11,300,000 0 person ZhangXubao DomesticNatural 0.38% 6,503,220 0 person DomesticNatural ChenLihong 0.28% 4,775,760 0 person Shareholdingoftop10shareholdersofunrestrictedshares Quantityofunrestrictedsharesheldattheendofthe Sharetype Nameoftheshareholder reportingperiod Sharetype Quantity RMBCommon ChenLue 145,863,639 145,863,639 shares Foreignshares placedin STYLE-SUCCESSLIMITED 92,970,910 92,970,910 domestic exchange RMBCommon UnionHoldingsCo.,Ltd. 87,935,921 87,935,921 shares RMBCommon HeFeiyan 54,800,458 54,800,458 shares JiutaiFund－Bankof Communications－JiutaiHuitong RMBCommon 40,696,772 40,696,772 No.2specificcustomerasset shares managementplan Foreignshares placedin RichCrownInvestmentCo.,Ltd. 23,235,313 23,235,313 domestic exchange QinghaiHeyiIndustryDevelopment RMBCommon 13,357,084 13,357,084 Co.,Ltd. shares RMBCommon HuangHuaian 11,300,000 11,300,000 shares RMBCommon ZhangXubao 6,503,220 6,503,220 shares Foreignshares placedin ChenLihong 4,775,760 4,775,760 domestic exchange ThelargestshareholderofMr.ChenLueandtheFourthlargestshareholderofMs.HeFeiyan aforesaidarepersonsactinginconcernp;Thecontrollingshareholderoftheabove-mentioned Explanationonassociated thirdshareholderShenzhenUnionHoldingsCo.,Ltd.AndSixthshareholderRichCrown relationshiporconcertedactionof InvestmentCo.,Ltd..IsUnionDevelopmentGroupLtd.,Theothertradableshareholders theaboveshareholders neitherknewwhetherthereexistsassociatedrelationshipbetweenthem. Notetothetop10common stockholdersinvolvedinmargin Nil financing&securitieslending(If any) Whethertoptencommonshareholdersortoptencommonshareholderswithun-restrictsharesheldhavea buy-backagreementdealinginreportingperiod. □Yes√No Thetoptencommonshareholdersortoptencommonshareholderswithun-restrictsharesheldoftheCompanyhavenobuy�Cbackagreementdealinginreportingperiod. 2.Totalnumberofpreferredshareholdersandshareholdingoftop10preferredshareholdersbytheendofthereportperiod □Applicable√Notapplicable IIISignificantEvents I.Majorchangesofmainaccountingstatementitemsandfinancialindicatorsinthereportingperiod,aswellasreasonsforthechanges √Applicable□Notapplicable Sameperiodofthe Thisperiod/Year-end previous Items Changes% Remarksonthechange balance year/Year-beginning balance Long-termLoanss - 120000000.00 -100.00% Mainlyduetousethesamebankto borrowshort-termloanstorepay long-termloans. Operatingincome 152514127.64 923442740.92 -83.48% Mainlyforthenationalcredit tightening,thetightcapitalledtothe company'sbusinesscontraction,the projectprogressedslowly. Operatingcost 129968630.28 694723215.49 -81.29% Mainlyduetoreducedoperating income Administration 47113359.52 73133254.43 -35.58% Mainlyduetothedecreaseinoperating expenses shrinkagemanagementpersonnel Netprofit -128564725.66 218782564.96 -158.76% Mainlyduetoreducedoperating income 24863912.37 809676459.22 -96.93% Mainlyduetothereductionofprojects Netcashflowgenerated andtheslowprogressofprojectsunder byoperationactivities construction Netcashflowgenerated - -81805042.30 -100.00% Mainlyduetoreducedoperating byinvestmentactivities shrinkage Netcashflowgenerated -64236401.65 -624966136.18 -89.72% Mainlyduetothetighteningofnational byfinancingactivities creditandthedifficultyofloans II.Theprogressofsignificanteventsandinfluence,aswellastheanalysisandexplanationonresolvingproposal. √Applicable□Notapplicable 1.OnFebruary12,2018,theCompanyconvenedthetwenty-ninthmeetingoftheseventhBoardofDirectors,deliberatingandadoptingaProposalonAcquisitionofSharesofUPLLaosCo.,Ltd.,accordingtowhich,UPL(MALAYSIA)SDN.BHD.(hereinafterreferredtoasUPLMalaysia)transfered30%ofsharesofUPLLaosCo.,Ltd.(hereinafterreferredtoasUPLLaos)totheCompanybysigninganAgreementofEquityCooperationonLaosVientianeDongphosySpecialEconomicZoneProject,UPLLaosenteredintoafranchiseagreementfor50+40yearswithLaosGovernmentbycashcontributionofUSD10millionandadvancepaymentofUSD20 millionforprojectconstructionputtogetherastheconsiderationofacquisitionandtookfullchargeofmattersofdevelopmentofDongphosyasthefranchiseetoDongphosySpecialEconomicZone(refertotheCompany'sAnnouncement2018-020and021).OnJune12,2018,theCompanyagreedwithUPLMalaysiaontransferof10%ofshares,hencetheCompany'sshareholdingratioroseto40%.WhereastheCompanyisexperiencingafinancialdifficultyatthemomentandhasfailedtoperformdutiesofadvancepaymentandconstructionintheequityagreementanddutiesintheloanagreement,theMalaysianshareholderUPLMalaysiasentalatterinrequestforareturnofequityandfiledanarbitrationtoHongKongInternationalArbitrationCentreonthedisputeofequityinMarch2019.Rightnow,theCompanyhashiredanarbitratordulyinresponsetothesuit. 2.TheCompanyconvenedthethirty-seventhmeetingoftheseventhBoardofDirectorsonSeptember2,2018,plannedtoinvestandfound"YinglonghuDevelopmentCo.,Ltd."(hereinafterreferredtoastheProjectCompany,whosefinalnameissubjecttothenameapprovedinindustrialandcommercialregistration)withChongqingCircum-YinglonghuIndustrialCo.,Ltd.(hereinafterreferredtoasPartyA)and7villagecommitteesconcernedattheprojectlocation(hereinafterreferredtoasPartyC).TheregisteredcapitaloftheProjectCompanywasRMB125million,whereinPartyAsubscribedcapitalbyearlierinputofphysicalassetsworthRMB23.75million(subjecttotheauditedamount)intheYinglongProject,accountingfor19%oftheregisteredcapital;SinoGreatWallcontributedRMB100millionbycurrency,accountingfor80%oftheregisteredcapital;PartyCsubscribedRMB1.25millionbycurrencyorcontributioninkind,accountingfor1%oftheregisteredcapital(refertotheCompany'sAnnouncement2018-104and105).Atthemoment,theProjectCompanyhasbeenregisteredandprojectplanninganddesignareunderway. 3.InJanuary2018,theCompany'swholly-ownedsubsidiarySinoGreatWallIntelligentRealEstate(Zhanjiang)Co.,Ltd.obtainedaReplytoSinoGreatWallonEIAReportforResidentialIndustrializationBaseConstructionProject,whichwasexpectedtospeedupconstructionoftheCompany'sfabricatedintelligentpropertyR&Dcenterandproductionbaseproject,facilitatetheCompanytogetinvolvedinthefabricatedintelligentpropertyconstructionarea,addanewprofitgrowthpointtotheCompanyandshowapositiveimpactonitsfutureoperationanddevelopment.Formoredetails,pleaserefertoAnnouncementofVoluntaryInformationDisclosureontheCompanyGettinganEIAReplytoFabricatedIntelligentPropertyR&DCenterandProductionBaseConstructionProjectdisclosedbytheCompanyonJanuary4,2018(refertotheCompany'sAnnouncement2018-003).DuetotheshortageofprojectfundsandthemortgageofproductionbaselandtoChinaBohaiBank,theprojectiscurrentlyatastandstill. 4.OnOctober18,2018,thecompanyreceivedthenoticeofinvestigationissuedbytheChinaSecuritiesRegulatoryCommission(No:JDCZiNo.18041).Asthecompanyissuspectedofviolatinglawsandregulationsininformationdisclosure,accordingtotherelevantprovisionsoftheSecuritiesLawofthePeople'sRepublicofChina,theCSRChasdecidedtoinitiateaninvestigationinthecompany.OnMarch6,2019,thecompanyreceivedtheShenzhenSecuritiesRegulatoryBureau'sDecisiononAdministrativeSupervisionMeasures(No2019]11,No.[2019]12,No.[2019]13,No.[2019]14,No.[2019]15,andNo.[2019]16)showingthattheShenzhenSecuritiesRegulatoryBureauhadcarriedouton-siteinspectionofthecompanysinceMay2018,andtheShenzhenSecuritiesRegulatoryBureauhadfiledacaseforinvestigationontheillegaldisclosureofrelevantinformationfoundintheinspection;Inaddition,throughinspection,itisalsofoundthatthecompanyhadthefollowingproblems"I.Theincomecostaccountingisnotstandardized,andexpensesarechargedthroughout-of-accountfundaccounts;II.Itdidnotdisclosethechangesinmajoritemsinatimelymanner,thepreparationofperformanceforecastsandperformancereportisnotprudent;III.Ithascapitalexchangesofnorealbusinessfoundationwithanumberofcompanies,andillegalforeignfinancialassistance;IV.Therelevantmanagementsystemforraisingfundsisnotperfect;V.Registrationmanagementforinformationinsiderisnotstandardized".TheShenzhenSecuritiesRegulatoryBureaudecidedtotakecorrectivemeasuresagainstthecompany,the company'srelevantdirectors,seniormanagementpersonnel,andissuewarningletterstoMr.ChenLue,Mr.TianWei,Mr.TangXianyong,Ms.CuiHongli,Ms.YangChunling(see2018-121,2019-022,2019-031)Inresponsetotherelevantproblemsfoundduringtheinspectionagainstthecompany,thecompanyhasmadeseriousrectificationinaccordancewiththemattersinvolvedintheDecisiononTakingCorrectiveMeasuresagainstSinoGreatWallCo.,Ltd.([2019]No.11).Inadditiontotheabovematters,ShenzhenSecuritiesRegulatoryBureaurequiresthecompanytoemployathirdpartyindependentagencytoconductspecialinspectionsontheproblemsofNPP-0057inXingang,Qatar,CambodiaRefineryandNAGACasinoPhaseIIprojectinCambodia. Asofthedisclosuredateofthisannouncement,thecompanyhasnotyetreceivedtheChinaSecuritiesRegulatoryCommission'sconcludingcommentsordecisionsonrelevantinvestigationmatters. 5.ThecompanyheldthesixthmeetingoftheeighthBoardofDirectorsonApril12,2019,deliberatedandpassedtheProposalonAdjustingtheCompany'sOrganizationalStructureandagreedtoadjusttheoperatingorganizationandbusinessstructureofthecompany'sheadquarters.Thecompanywillimplementadivisionsystembysectionsandsetupfouroperatingorganizations,includingthedomestictraditionalconstructionbusinesssector(division),infrastructurebusinesssector(division),overseasbusinesssector(division),smarthousingandmedicalcarebusinesssector(division).Afterthisadjustment,theorganizationalstructureofthecompany'sheadquartersisasfollows:eightfunctionaldepartmentsandoffices,includingthecomprehensiveoffice,thefinancedepartmentandthehumanresourcesdepartment,aswellastheabove-mentionedfouroperatinginstitutions(seethecompany'sannouncementNo2019-028fordetails). Descriptionofthewebsitefordisclosing Overviewofmaterialmatters Dateofdisclosing provisionalannouncements Progressintheimplementationofsharerepurchase □Applicable√Notapplicable Progressintheimplementationofthereductionoftherepurchasedsharesbymeansofcentralizedbidding □Applicable√Notapplicable III.CommitmentsfinishedinimplementationbytheCompany,shareholders,actualcontroller,acquirer,directors,supervisors,seniorexecutivesorotherrelatedpartiesinthereportingperiodandcommitmentsunfinishedinimplementationattheendofthereportingperiod □Applicable√Notapplicable Thecompanyhasnocommitmentscompletedinperiodandthosewithoutcompletedtilllendoftheperiodfromactualcontroller,shareholders,relatedparties,purchaserandcompanies. IV．PredictionofBusinessperformanceforJanuary-June2019 Estimationofaccumulativenetprofitfromthebeginningoftheyeartotheendofnextreportperiodtobelossprobablyorthewarningofitsmaterialchangecomparedwiththecorrespondingperiodofthelastyearandexplanationofreason. □Applicable√Notapplicable V.Investmentinsecurities □Applicable√Notapplicable Nosecuritiesinvestmentinperiod. VI.Investmentsinderivatives □Applicable√Notapplicable Thereisnoderivativeinvestmentduringthereportperiod. VII.Theregistrationformofacceptanceofinvestigation,communicationandinterviewinthereportperiodforfuturereference □Applicable√Notapplicable ThePeriodhasnoresearch,communicationandwritteninquiryfromtheinvestorsinthereportperiod. VIII.OutwardGuaranteeagainsttheRegulations □Applicable√Notapplicable TheCompanyhasnoexternalguaranteegetoutofthelineinthePeriod IX.Controllingshareholderanditsrelatedpartiesoccupyingnon-businesscapitalofthelistedcompany □Applicable√Notapplicable Therearenocontrollingshareholderanditsrelatedpartiesoccupyingnon-businesscapitalofthelistedcompanyinPeriod