1)The completion of main management target
    By the end of 2005, the total assets of the bank were RMB232.6b, up RMB23.8b or 11.4% compared to the end of last year. As such, the balance of Renminbi and foreign currencies deposit was RMB217.2b, up RMB28.3b or 15.0%; the all-year average daily deposit was RMB183.7b, up RMB29.4b or 19.1%; the balance of Renminbi and foreign currencies loan (include note discount) was RMB120b, up RMB10.4b or 9.5%; the whole year’s integrated benefit achieved RMB2.53b, up RMB0.23b or 10%.

2)The construction of finance computerizing
    Corporation financial business: Our bank always gives a high priority to clients. In the face of aggravating market competition and varying macro-environment, we stressed the key business in the extended trial work of payment business authorized by Beijing Municipal Bureau of Finance, successfully persuaded 638 Units representing 65% from 979 municipal-level budget Units to choose our bank as undertaker, and obtained the agent qualification of receiving the “non-taxable” income of Beijing Municipal Bureau of Finance through bidding. As the trial Unit of small enterprises loan extended by Beijing Municipality, we established marketing center for small and medium-sized enterprises, employed classified management and accounts-dividing and settlement, launched “Class Activity among Small and Medium-Sized Enterprises of Beijing Bank”, introduced such products as “Small-Sum Green Passage” etc, set up featured sub-branch specialized for small enterprises loan, and built a more complete marketing network for small and medium-sized enterprises.

    By the end of 2005, the balance of public deposit in Renminbi was RMB178.58b, an increase of RMB22.18b equaling to 14.2% over the same period of last year; the balance of public loan in Renminbi (without note financing and commission loan) was RMB89.79b, an increase of RMB15.39b equaling to 20.7%.

Individual financial business: serving Beijing people is always our market positioning. Continue to focus on clients and increase individual loan and individual record centers for centralized examination and approval of applications for individual loan, centralized registration for housing mortgage and centralized management for individual record. Enrich service means, develop a series of RMB financing products including following functions: terminable products, purchase in advance for VIP clients, mortgage loan, sales inquiry, financing income distribution and product information multi-protection, etc., which enhanced the competition of financing products; realize 24-hour oral loss reporting and providing the public with 24-hour non-counter service. Introduce medical insurance, covering another new 690,000 employees, issue 5,150,000 deposit books of medical insurance in total for Beijing people, put the reimbursement medical fee of retirees and the lump-sum subsidy for Non-agricultural people from agriculture into medical insurance account to provide Social Security Fund Management Center with online real time inquiry for special account of medical insurance, mail reimbursement details of medical fee and innovate medical insurance service.By the end of 2005, the savings deposit balance in RMB had been RMB34.75b, increased RMB9.58b or 38.1% over the end of last year. While individual loan balance was RMB12.06b.

International financial business: The important development trend. Taking advantage of firstly obtaining the qualification of doing derivative transactions among city commercial banks, our bank issued some dozens of foreign exchange financing products with high benefit and strong security in order to facilitate clients for investment. Another new 13 sub-branches for foreign exchange settlement and sale business, 6 sub-branches for foreign currency exchange business and 20 for foreign exchange sale for private use business extended the service area coverage. The introduction of big greenback instant remittance business got the expansion of service methods. In addition, the first import of advanced foreign fund exchange system and documents settlement system made business system direct-arrival, automatization and on-line processing.
By the end of 2005, the balance of foreign currency deposit had reached to US$1.03b, growing US$0.15b or 17% over the last same period. The balance of foreign currency loan was US$0.3b equaling to that of the last same period. The sum of foreign exchange settlement was US$3.08b, growing US$1.43b or 86.7% year-on-year.

Capital market business: strictly comply with the principle of “security, liquidity, efficiency”, actively develop capital business. Firstly obtaining the qualification of doing derivative transactions among city commercial banks made us provide a variety of product services to clients through financial derivative instruments such as swap and option, etc. In 2005, the underwriting value of bonds in primary market was RMB59.12b, of which, the national debt and central bank notes were RMB39.56b, financial bond RMB18.92b, short-term enterprise bond RMB0.64b; the trading volume of capital was RMB619.65b, of which, the cash volume RMB97.37b, repurchase volume RMB490.58b, credit loan volume RMB31.7b. Owed to substantive capital volume and zero error rate during transaction, our bank was awarded “Excellent Dealing Member Unit” and “Excellent Settlement Member Unit”.

Intermediary business: speed up the development of the intermediary business and continuously improve income structure. The income of procedure fee from intermediary business was RMB165.97m, up 80.1%. There was 1437 RMB guarantee handled in total, up 12.3%, with the value of RMB1.42b, up 25.6%, while foreign currency guarantee totaled 114, with the value US$22.18m. Straight discount balance and inter-bank discount balance were RMB1.39b and RMB14.38b respectively. Ten charge services for settlement was introduced, adding to three insurance agency companies of ING Capital Life Insurance Company Limited, Union Life Insurance Co., Ltd. and AXA-Minmetals Assurance Co., Ltd. In order to cater for the trend of charging on bank cards, we have a try for charging on Jing cards, implementing the projects of annual fee of double-currency international card and charge on ATM draw for Jing card in different places outside Beijing.

Electronic banking business: make efforts to expand electronic banking business. Our bank launches some new products including VISA platinum card, VIP double-currency debit card of gold card series and jingmei co-branded card, except for issuing 3,200,000 Jing cards, an increase of 640,000 over the end of last year. The total issuance transactions for Jing card is 9,860,000, and value at RMB17.6b, respectively rising by 39% and 71% over last year, while that of collection order is 9,460,000 and RMB8.3b, up 24% and 51% respectively. Among 17 Beijing issuing banks, our bank ranks 5th and 6th respectively for turnover of trans-bank card issuance and collection order. 24-hour self-service fee-paying terminals now totaled 430 after another 300 being established, 37 self-service banks now in total after another new 6 opened, 305 ATM machines now after 20 new added, 977 POS machines now after 293 new increased. Continue to develop the functions of self-service fee-paying terminals, adding new businesses to the Jing card, such as telephone calls, pay property management fee and water fee and purchase gas with IC gas card. In addition, risk test system for double-currency international card was developed to further improve risk management. There are 3,215 online bank enterprise clients, increasing 1,373 over last year end; the transaction volume is 93,000, increasing 54,000 or 1.4 times more than that of last year end; the transaction value is RMB28.5b, increasing RMB20.2b or 2.4 times.
“96169” telephone banking system is well improved as some new functions are available now, such as repay the annual fee of international card, VIP service, foreign currency notice deposit and RMB seven-day finance notice deposit, etc. within the report period, 280,000 telephone banking transactions achieved, with the value of RMB34.21m.

3、The construction of finance computerizing
Pay attention to support operation & management and push all kinds of work through information technology. During the report period, we laid stress on the development of business operation system and management information system, and complete the development and run of the edition of 2.2 internet banking of “New e Generation”, TI and OPICS systems of international business, payment password system, anti-money laundering system and modernization micro-payment system, etc. 236 new development projects approved and initiated and the projects of product function improvement in the whole year greatly enhanced the work efficiency.

4、The construction of enterprise culture
Thoroughly study the spirit of the 5th Plenary Session of the 16th Central Committee of the Communist Party of China, extensively launch the educational activity of “Keep Advancement of Communist Party Member”, continuously develop the theme activities of Probity and Self-discipline education, warning education and pre-work education, strengthen the supervision to bank staff out of work hours (8 hours), and effectively raise the awareness of all levels of management to keep government functionaries honest and industrious.
By launching sport meetings and art festivals to elevate the cohesion of cadre ranks and stimulate employees work passion. During the commending meeting on the work of national spiritual civilization construction held by Spiritual Civilization Steering Committee of the Communist Party of China's Central Committee, our bank was awarded the title “Advanced Unit on the Work of National Spiritual Civilization Construction”. Our project of “system design and implementation of full cost management project” was awarded the second prize on innovation achievement of 20th Beijing enterprise management modernization. In the essay competition for commemorating 10th anniversary of the Promulgation of the “Two laws” held by business management departments of the People's Bank of China, our two employees were award as first and second prize winner respectively.

5、Foreign intercourse and cooperation
Actively develop foreign intercourse and cooperation. Our bank signed Agreement of Inter-bank Financial Business with Shanghai Branch of ING Bank N.V. in order to develop substantive cooperation in the area of RMB business. In addition, we entered into Agreement for Assignment of Credit Assets with Beijing International Trust & Investment Co.，Ltd. For the purpose of developing cooperation in capital business area, we also signed Inter-bank Cooperation Agreement with Volkswagen Finance (China) Co., Ltd.

6、The status among inter-banks
In July 2005, Among the list of 1000 global banks publicized by Britain magazine of “The Bankers”, our bank ranks 431th according to tier 1 capital standard, 13th among domestic commercial banks and 1st among city commercial banks; our total assets ranks 284th. Our bank, among the list of China's top 500 enterprises in 2005 publicized by China Enterprise Confederation, ranks 299th; 111th among the list of top 500 enterprises of service industry and 25th among the list of Beijing’s top 100 enterprises in 2005 jointly publicized by Beijing Enterprise Confederation and Beijing Enterprise Directors Association.