, 2

Guangdong Kelon Electrical Holdings Co.,Ltd OO : 1

2003 12 31, 2

4 5 7 7 10 11 12 13 15 15 16 30 30 32 32 39 39 87 88 3

( ) GUANGDONG KELON ELECTRICAL HOLDINGS COMPANY LIMITED ( ) ( ) 8 (0757)28362570 (0757)28361055 E mail zhong.liang@kelon.com ( ) 8 528303 Http www.kelon.com ( ) Chinadaily Http //www.cninfo.com.cn ( ) A 000921 H 0921 2002 1 21 003092 440681190343548 4

222 30 ( ) 220,003,504 202,180,248 193,095,839 1,684,544,880 48,399,942 265,259,524-50,182,698 18,190 4,908,488 1,010,219,751 40,266,536 191,170,248 1. -11,010,000 10,402,787-5,494,299 18,190-216,831 4,374,562 5

9,084,409 ( ) 2003 2002 2001 6,168,109,963 4,878,257,017 4,381,616,368 202,180,248 101,276,990-1,475,892,124 9,432,791,214 7,656,539,329 6,509,847,794 2,808,730,941 2,575,000,833 2,470,316,183 0.20 0.10-1.49 2.83 2.60 2.49 2.64 2.40 2.27 1.02 0.50 0.15 % 7.20% 3.93% -59.75% 6.87% % 3.60% -57.33 % % / 59.98 62.3 1.70 1.70 9.44 9.81 0.27 0.27 6

7.20 7.48 0.20 0.20 6.87 7.14 0.19 0.19 992,006,563 2,452,995,887 229,161,802 114,580,901-1,213,744,320 2,575,000,833-28,816,125 - - 1,399,100,091 1,427,916,216-965,024,306 229,161,802 - - 1,194,186,108 992,006,563 1,516,787,706-114,580,901 185,355,771 2,808,730,941-1 + 1 337,915,755 337,915,755 7

337,915,755 337,915,755 2 3 4 337,915,755 337,915,755 1 194,501,000 194,501,000 2 3 459,589,808 459,589,808 4 654,090,808 654,090,808 992,006,563 992,006,563 2 8

1 2 3 1 68,996 2 0 204,775,755 20.64 +63,515,121 109,524,359 11.04 H 0 68,666,667 6.92 0 57,436,439 5.79 +30,869,000 45,109,000 4.55 H -15,328,000 33,884,000 3.42 H +31,179,000 31,319,000 3.16 H +21,971,200 29,326,000 2.96 H -3,938,000 26,999,000 2.72 H +5,331,312 23,294,684 2.35 H 9

3 2001 10 88 1,200,000,000 90% 10% 4 5 A B H 109,524,359 H 45,109,000 H 33,884,000 H 31,319,000 H 29,326,000 H 26,999,000 H 23,294,684 H 15,397,503 A 15,000,000 H 10

10,750,000 H 45 2001.12.23-2004.12.23 0 0 59 2001.12.23-2004.12.23 0 0 52 2001.12.23-2004.12.23 0 0 39 2001.12.23-2004.12.23 0 0 42 2001.12.23-2004.12.23 0 0 42 2001.12.23-2004.12.23 0 0 43 2001.12.23-2004.12.23 0 0 47 2002.12.29-2004.12.23 0 0 48 2003.05.18-2004.12.23 0 0 37 2002.06.18-2004.12.23 0 0 42 2002.12.29-2004.12.23 0 0 50 2002.06.18-2004.12.23 50,000 50,000 49 2002.09.02-2004.12.23 0 0 46 2002.09.09 0 0 : 2001 10 1 1996 5 25 11

2 2003 1,714 960 420 144 2003 0 1,000,000 2 1,000,001 2,000,000 3 2,000,001 6,000,000 1 0 1,000,000 4 0 1,000,000 3 0 1,000,000 1 1,000,001 2,000,000 3 3 2003 5 18 2002, 4 2003 12 31 6200 700 220 370 830 3830 15 383 1268 536 306 12

1 2 3 4 5 13

6 7 1 2 3 4 5 14

2002 2003 4 1 2003 5 18 2002 2003 5 18 2002 4 615,505,285 992,006,563 62.05% 1 2002 2 2002 3 2002 4 2002 5 6, 5 2003 5 20 2003 5 18 2002 15

1 61.68 26% 2.02 99.63% 0.20 (OEM) [ ] 27.31% 16

48.90% 43.46% 7.64% 70.18% OEM 146.4% 29.82% 9,432,791,214 2,808,730,941 2,120,038,297 6,033,869,860 2 OEM OEM OEM OEM 17

18

3.8 6.0 4.2 6.0 2.3 2.7 160% 120% 0.38 0.35 0.94 A++ BCD-209 19

A B ( ) 20.03% 500 1,300 2004 1,500 200 20

15 9 22% 21% 52.2% 28% 46% 102% 109% 76% 50% MBA 400 1,500 500 2003 12 700 ST 21

1 1 a % 4,328,787 4.8 1,839,323 146.4 6,168,110 26.4 b 22

% % 301,625 213,640 29.17-268,059 203,651 24.03-21,147 16,203 23.38-25,980 14,826 42.93-3 % 100 26,800.00 2,091,330 72,574 60 36,150.00 1,745,321 160,472 100 5,620.00 949,697 24,211 70 15,000.00 250,012 2,660 70 15,800.00 773,103 10,440 100 237,000.00 379,380 24,668 23

100 60,000.00 58,039 7,344 100 3,000.00 374,321-5,233 100 10,000.00 79,460-4,418 22.725 260,854 1,615,101-119,587 24,000.00 46.67 IT 19,229 144 20 10,000.00 39,713 2,270 3 13.3% 6 % ( ) 1 24

2 2002 235,020,540 19.21% 1 2002 2004 1 2 2002 9 3 2003 5 28 2410 70% 30% 4 2003 10 30 6000 70% 5 2003 7 3 2980 6 2003 9 30 1.5 7 2003 12 3 2998 75% 25% 25

1 : ( ) ( ) (%) 7656.54 9432.79 23.20 790.58 607.13-23.20 2575.00 2808.73 9.08 1025.45 1684.54 64.27 101.28 202.18 99.63 35.44 40.27 13.63 1 2 3 4 5 6 1 2003 3 28 2002 2002 2002 26

2002 2002 12 2 2003 5 18 2002 2003 4 3 2002 2002 2002 2002 2003 4 25 2003 2003 8 15 2003 2003 2003 5 2003 10 28 2003 2 2003 202,180,248 2003 27

1 Chinadaily 2 2003 12 31 2003 2004 4 19 (04) XX 2003 12 31 2003 2003 2003 2004 4 19 28

29

3 [2003]56 1 50% 2 50% 3 1038.76 22.725% 4571 1038.76 4 70% 1 2003 3 28 2002 2002 30

2002 2002 2 2003 4 3 2002 2002 2002 3 2003 4 25 2003 4 2003 8 15 2003 2003 5 2003 10 28 2003 1 2 2003 31

2003 3 4 ( ) ( ) ( ) ( ) 1 1038.76 22.725% 4571 1038.76 2 32

( ) ( ) 2002-12-28 495.00 2003-1-30 2004-1-25 2003-3-20 1,000.00 2003-3-20 2004-3-20 2002-12-28 497.00 2003-3-25 2004-3-24 2002-12-28 298.00 2003-4-2 2004-4-1 2002-12-28 199.00 2003-4-7 2004-4-6 2003-3-20 700.00 2003-4-16 2004-4-16 2002-12-28 497.00 2003-4-22 2004-4-21 2002-12-28 1,000.00 2003-6-5 2004-4-28 2002-12-28 497.00 2003-5-7 2004-5-6 2002-12-28 497.00 2003-5-12 2004-5-11 2002-12-28 995.00 2003-6-10 2004-5-17 2002-12-28 975.00 2003-6-12 2004-6-11 2003-3-7 2,000.00 2003-3-7 2003-9-7 2003-3-7 3,000.00 2003-3-7 2003-9-7 2003-4-1 700.00 2003-4-1 2003-10-1 2003-6-10 10,000.00 2003-6-10 2003-12-9 2003-7-24 8,000.00 2003-7-24 2003-12-19 33

2003-9-19 5,000.00 2003-9-19 2004-3-19 2003-7-10 6,000.00 2003-7-10 2004-7-10 2003-10-9 5,000.00 2003-10-9 2004-10-9 2003-5-15 4,000.00 2003-5-15 2004-5-15 2003-12-17 423.45 2003-12-17 2004-3-17 2003-12-17 6,642.55 2003-12-17 2004-6-15 2003-12-17 2,934.00 2003-12-17 2004-6-16 2003-12-19 8,000.00 2003-12-19 2004-6-18 69,350.00 38,000.00 0.00 69,350.00 0.00 13.53% 34

3 4 [2003]189 [2003]56 1 50% 2 1, 50%. 2 : 2003 10 31 264408, 86205 5160,.( ) 2003 12 1 35

A B C D E1 E2 F1 G1 F2 G2 F3 G3 F4 G4 F5 G5 H I J 000921 2003 2002-10-31-12-31 3400 3400 0 0 0 11731 11785 0 165 0 219 0 0 0 3500 0 3500 2245 0 2159 5 92 2 6 7 7319 0-17663 0 438773 0 413791 0 38337 0-3534 0 244652 0 202782 0 2136 1788 18328 0 17 0 1 0 30 0 15 5039 43400 0 44045 0 518 0 1163 0 8091 0 8059 0 96 0 64 0-8746 0-8711 0 69 0 104 0 36

KII -434 0-432 0 3 0 5 0-147 0-146 0 1 0 2 0-985 0-985 0 0 0 0 0 48924 0 64904 0 31876 0 47856 0 8969 0 7917 0 1052 0 0 0 16714 0 13779 0 2978 0 43 0 86205 0 86205 0 0 0 0 5160 0 5160 0 0 0 0-7109 0-9222 0 2253 0 140 0 10123 0-2617 0 26533 0 13792 0 7411 0 3555 0 7361 0 3504 0 6 83 3 0 0 0 7 0 3 0 2813 0-355 0 3398 0 230 0-1440 0-1479 0 40 0 0 0-2845 0-3309 0 464 0 0 0-500 0-500 0 0 0 0 0 37

-500 0-500 0 0 0 0 0-28 0 532 0 0 0 560 0 704 0 400 0 2306 0 2001 0 472 200 0 0 0 200 0 0 0 4920 0-80 0 5000 0 0 0 0-19545 0-9542 0 149510 0 159513 283936-19528 205865-9536 767838 149542 689767 159534 38

5% 5% 2003 5 18 420 ( ) 2003 12 31 ( ) (04) P0685 2003 12 31 2 45 2003 12 31 2004 4 19 39

1 2 3 40

2003 12 31 6 2,120,038,297 1,595,877,944 1,417,085,462 1,065,118,299 7 734,877,589 548,232,619 622,627,806 613,597,439 8 731,120,036 261,438,092 381,535,897 275,661,469 9 133,664,884 1,652,631,976 1,057,874,066 2,107,281,156 11 165,879,789 20,599,915 89,011,737 36,549,630 12 187,704,983-164,994,765-13 1,945,617,637 961,962,539 1,123,325,956 679,131,994 14,966,645 13,870,001 6,412,719 5,136,444 6,033,869,860 5,054,613,086 4,862,868,408 4,782,476,431 14 172,383,399 1,458,354,550 198,173,987 1,223,334,010 15 3,694,855,619 1,427,389,640 3,635,836,132 1,420,958,597 15 1,802,715,334 584,404,702 1,586,467,593 509,851,837 1,892,140,285 842,984,938 2,049,368,539 911,106,760 15 61,471,947-61,375,205-15 1,830,668,338 842,984,938 1,987,993,334 911,106,760 16 117,845,210 33,015,098 11,323,062 7,550,688 1,948,513,548 876,000,036 1,999,316,396 918,657,448 17 1,073,068,727 953,917,703 318,011,667 198,209,350 18 170,955,680 43,368,194 192,565,963 66,644,180 44(5)(e) 34,000,000-85,602,908 51,602,908 1,278,024,407 997,285,897 596,180,538 316,456,438 9,432,791,214 8,386,253,569 7,656,539,329 7,240,924,327 41

( ) 2003 12 31 19 858,900,000 310,000,000 960,164,036 400,000,000 20 1,938,635,005 1,940,688,655 942,591,729 1,075,014,036 21 1,401,689,440 365,938,682 739,184,874 652,568,689 22 456,523,479 414,162,842 337,665,921 300,245,037 28,064,768 9,858,676 44,211,152 30,370,421 220,777-3,986,906 1,489,938 23 (32,821,459) (48,587,455) 39,849,854 62,552,141 5,833,042 230,783 2,944,393 2,029,317 24 406,206,061 649,808,149 616,790,396 519,065,990 25 221,235,587 191,113,522 211,076,574 185,670,788 26 89,556,581 89,556,581 105,031,134 105,031,134 27 405,517,722 400,000,000 65,233,515 60,000,000 5,779,561,003 4,322,770,435 4,068,730,484 3,394,037,491 28 544,353,852 525,000,000 714,766,571 690,000,000 29 62,778,960 57,986,314 75,822,128 70,126,659 14-335,383,123-494,015,291 607,132,812 918,369,437 790,588,699 1,254,141,950 6,386,693,815 5,241,139,872 4,859,319,183 4,648,179,441 42

( ) 2003 12 31 237,366,458-222,219,313-30 992,006,563 992,006,563 992,006,563 992,006,563 31 1,516,787,706 1,840,635,588 2,452,995,887 2,452,995,887 32 114,580,901 114,580,901 343,742,703 343,742,703 114,580,901 114,580,901 114,580,901 114,580,901 33 184,436,195 197,890,645 (1,211,930,161) (1,194,186,108) 919,576 - (1,814,159) (1,814,159) 2,808,730,941 3,145,113,697 2,575,000,833 2,592,744,886 9,432,791,214 8,386,253,569 7,656,539,329 7,240,924,327 2004 4 19 43

2003 12 31 34 6,168,109,963 5,338,472,342 4,878,257,017 4,069,394,196 34 4,483,202,710 4,321,611,797 3,852,539,111 3,209,655,362 362,373 306,774 265,104 214,873 1,684,544,880 1,016,553,771 1,025,452,802 859,523,961 35 48,399,942 5,345,511 16,612,542 (4,231,250) 1,002,390,964 832,122,148 791,497,880 764,887,134 364,897,076 91,675,644 59,899,332 (162,038,190) 36 100,397,258 37,616,150 75,536,164 54,012,477 265,259,524 60,485,340 115,131,968 198,431,290 37 (50,182,698) 132,529,717 (17,070,782) (107,961,019) 18,190 18,190 16,805 16,805 38 10,402,787 7,196,799 9,941,494 1,584,742 39 5,494,299 2,339,401 4,099,764 866,017 220,003,504 197,890,645 103,919,721 91,205,801 40 11,676,111-3,031,454-6,147,145 - (388,723) - 202,180,248 197,890,645 101,276,990 91,205,801 (1,211,930,161) (1,194,186,108) (1,313,207,151) (1,285,391,909) 31 965,024,306 965,024,306 - - 32 229,161,802 229,161,802 - - 184,436,195 197,890,645 (1,211,930,161) (1,194,186,108) - - - - - - - - 184,436,195 197,890,645 (1,211,930,161) (1,194,186,108) - - - - - - - - 184,436,195 197,890,645 (1,211,930,161) (1,194,186,108) 44

2003 12 31 7,541,307,010 6,208,775,706 4,599,555,916 4,340,024,516 100,603,053 18,190 - - 8,624,168 8,641,980 24,638,444 13,772,281 7,650,534,231 6,217,435,876 4,624,194,360 4,353,796,797 5,196,396,395 4,627,547,141 3,491,550,189 3,291,622,581 438,566,099 178,782,591 329,590,993 154,073,311 199,542,039 148,224,752 109,248,030 71,367,624 805,809,947 611,505,524 194,020,388 213,147,377 6,640,314,480 5,566,060,008 4,124,409,600 3,730,210,893 1,010,219,751 651,375,868 499,784,760 623,585,904 - - 56,909,418-10,616,021 11,720,563 48,769,648 282,277 22,122,290 18,795,238 204,537,039 204,537,039 32,738,311 30,515,801 310,216,105 204,819,316 349,838,222 87,899,447 264,510,507 43,113,074-88,666,950-147,763,896 41 662,686,299 555,675,410 603,452,809 598,051,003 1,012,524,521 732,241,807 867,963,316 788,927,973 (979,786,210) (701,726,006) (557,747,211) (584,108,657) 9,000,000 - - - 1,418,900,000 1,075,000,000 1,454,465,000 1,180,000,000 1,427,900,000 1,075,000,000 1,454,465,000 1,180,000,000 1,350,165,357 990,000,000 1,272,530,166 1,190,000,000 68,939,001 58,565,627 90,008,597 54,608,064 1,000,000 1,000,000 - - 1,420,104,358 1,049,565,627 1,362,538,763 1,244,608,064 7,795,642 25,434,373 91,926,237 (64,608,064) 2,037,353-1,477,790-40,266,536 (24,915,765) 35,441,576 (25,130,817) 45

( ) 2003 12 31 1 202,180,248 197,890,645 101,276,990 91,205,801 6,147,145 - (388,723) - 48,679,206 30,812,035 (246,564,161) (266,496,625) 238,967,996 79,753,505 245,868,462 100,635,167 31,115,320 25,088,249 13,547,960 8,218,113 123,984,537 23,090,855 179,347,229 28,566,834 ( ) (8,553,926) (8,733,557) (2,109,156) (4,060,193) ( ) 13,818,429 (6,866,548) (121,675,246) (164,648,219) ( ) 832,307 (1,160,844) 748,140 (63,386) 43,157,295 37,181,376 90,008,597 54,608,064 ( ) 42,344,814 (132,529,717) 17,070,782 107,961,019 ( ) (857,552,716) (313,642,580) 464,434,244 334,393,833 ( ) (324,509,072) 45,258,647 (629,736,039) (570,198,817) ( ) 1,448,608,168 674,233,802 387,955,681 903,464,313 1,000,000 1,000,000 - - 1,010,219,751 651,375,868 499,784,760 623,585,904 2 44(5)(e) 736,595,440 736,595,440 - - 3 42 726,904,676 331,312,254 686,638,140 356,228,019 42 686,638,140 356,228,019 651,196,564 381,358,836 40,266,536 (24,915,765) 35,441,576 (25,130,817) 46

2003 12 31 1 ( ) 1992 12 16 1996 7 23 459,589,808 H 1998 110,000,000 ( A ) 1999 7 13 2001 10 29 2002 3 5 ( ) ( 34.06%) 20.64% 204,775,755 2002 4 18 20.64% 13.42% 2002 4 15 68,666,667 ( 6.92%) 2002 4 26 7,036,894 ( 0.71%) 2002 4 30 57,436,439 ( 5.79%) 2 1 1 12 31 47

48 2003 12 31 2 ( ) ( ) ( ) (1) 12 31 ( ) 50% 96 2 (2)

2003 12 31 2 ( ) (1) (2) 49

2003 12 31 2 ( ) (1) - 10 [2003]10-10 [2003]10 - (2) 50

2003 12 31 2 ( ) 5% 20-50 1.9%-4.75% 5% 10 9.5% 5% 5 19.0% 5% 5 19.0% 3 51

2003 12 31 2 ( ) 10 ( ) ( ) 52

2003 12 31 2 ( ) 53

2003 12 31 3 [2003]10 [2003]10 2003 3 17 - - [2003]12 4 17%, 2003 6 ---- 15% 3 2003 18 54

55 2003 12 31 4 ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) 24% 3 27 ( ) ( ) 15% 3% 18% ( ) 15% ( ) 30% 3 33 ( ) ( ) 27% 12% 12 3 15% ) ( ) ( ) ( ) ( ) ( ) ( ) 30% 3 33 17.5% 5% 7%

2003 12 31 5 2003 12 31 400,000-100% ( ) 10,000-100% ( ) 15,800,000 45% 25% ( ) 5,000,000 100% - ( ) 15,000,000 40% 30% ( ) 26,800,000 70% 30% ( ) 36,150,000 60% - ( ) 1,100,000,000-100% ( 45% 25% ( ) 200,000,000 42% 36.79% ( ) 200,000,000 1-100% ( ) Kelon International Incorporation 50,000-100% @( KII ) ( 5,620,000 70% 30% ) 76% - ( ) 2,000,000 80% - ( ) 30,000,000 70% 30% ( ) 60,000,000-78% ( ) 5,000,000-78% ( ) 5,000,000 44% 56% ( ) 237,000,000 25% 75% ( ) 10,000,000 56

2003 12 31 5 ( ) 20% 80% ( ) 3,000,000-100% ( ) 1,000,000 29,800,000 60% 40% ( ) - 70% ( ) 10,000,000 90% 10% ( ) 200,000,000 Kelon (USA) Inc. ( Kelon USA ) 100-100% 24,100,000 40% 30% ( ) 29,800,000 30% 70% ( ) - 100% ( ) 150,000,000-55% ( ) 20,000,000 29,980,000 75% 25% ( ) ( ) 2003 Kelon USA 96 2 57

2003 12 31 5 ( ) ( ) 260,854,000 ( ) 24,000,000 + ( + ) ( ) 10,000,000 ( ) 10,000,000 22.725% - 46.67% - 100-25% - 28% 20% - 6 - - 1,472,684 - - 3,282,856 30,000 1.0659 31,977 4,767 1.0614 5,059 8,330 8.2770 68,950 8,330 8.2770 68,950 - - 733 - - 730 - - 591,373,941 - - 626,665,594 14,957,296 8.2770 123,801,535 5,832,364 8.2770 48,274,480 4,831,904 1.0659 5,150,327 3,082,079 1.0614 3,271,319 39,731,673 0.0754 2,995,768 - - - 194,158 9.9106 1,924,219 - - - - - 84,542 - - 5,069,152 - - 1,378,127,084 - - 730,447,322 1,813,041 8.2770 15,006,537 - - - 2,120,038,297 1,417,085,462 58

2003 12 31 7-354,560,252 108,722,422-380,317,337 513,905,384 734,877,589 622,627,806 8 (%) 1 757,635,557 86 26,515,521 731,120,036 1 2 60,769,251 7 60,769,251-2 3 45,860,807 5 45,860,807-3 16,432,437 2 16,432,437-880,698,052 100 149,578,016 731,120,036 (%) 1 400,338,508 77 18,802,611 381,535,897 1 2 52,783,143 10 52,783,143-2 3 68,920,387 13 68,920,387-522,042,038 100 140,506,141 381,535,897 (%) 1 288,498,073 74 27,059,981 261,438,092 1 2 44,861,074 12 44,861,074-2 3 40,023,455 10 40,023,455-3 16,432,437 4 16,432,437-389,815,039 100 128,376,947 261,438,092 59

2003 12 31 8 ( ) (%) 1 289,576,625 72 13,915,156 275,661,469 1 2 45,749,772 11 45,749,772-2 3 68,712,019 17 68,712,019-404,038,416 100 128,376,947 275,661,469 % 71,300,982 8 5% 9 (%) 1 56,146,533 41 183,757 55,962,776 1 2 70,688,378 52-70,688,378 2 3 8,822,898 6 2,606,868 6,216,030 3 797,700 1-797,700 136,455,509 100 2,790,625 133,664,884 (%) 1 279,633,950 23-279,633,950 1 2 952,455,232 77 175,015,900 777,439,332 2 3 4,541,017-3,772,087 768,930 3 31,854 - - 31,854 1,236,662,053 100 178,787,987 1,057,874,066 60

2003 12 31 9 ( ) (%) 1 1,009,046,475 61-1,009,046,475 1 2 636,737,092 38-636,737,092 2 3 6,066,409 1-6,066,409 3 782,000 - - 782,000 1,652,631,976 100-1,652,631,976 (%) 1 1,422,288,624 62-1,422,288,624 1 2 857,401,565 38 172,409,033 684,992,532 2,279,690,189 100 172,409,033 2,107,281,156-684,992,532 2002 11 21 44(5)(e)(i) 5% 61

2003 12 31 10 140,506,141 9,674,351 - (602,476) 149,578,016 178,787,987 183,757 (172,409,033) (3,772,086) 2,790,625 319,294,128 9,858,108 (172,409,033) (4,374,562) 152,368,641 11 % % 1 165,879,789 100 89,011,737 100 5% 12 187,704,983 164,994,765 106,000,000 19(i) 13 727,298,933 38,461,291 688,837,642 102,903,931 172,000 102,731,931 1,219,334,489 65,286,425 1,154,048,064 2,049,537,353 103,919,716 1,945,617,637 62

2003 12 31 13 ( ) 419,342,800 50,997,459 368,345,341 70,404,891-70,404,891 770,305,251 85,729,527 684,575,724 1,260,052,942 136,726,986 1,123,325,956 26,000 50,997,459-85,729,527 136,726,986 2,598,000 172,000 32,491,035 35,261,035 (15,134,168) - (52,934,137) (68,068,305) 38,461,291 172,000 65,286,425 103,919,716 63

2003 12 31 14 134,358,604 136,626,984 7,249,050 10,419,066 109,814,270 122,328,578 251,421,924 269,374,628 79,038,525 71,200,641 172,383,399 198,173,987 1,235,651,509 986,639,998 130,319,332 132,390,025 7,249,050 7,248,851 144,516,300 158,250,936 - (1,814,159) 1,517,736,191 1,282,715,651 59,381,641 59,381,641 1,458,354,550 1,223,334,010 64

2003 12 31 14 ( ) (1) 11,200,000-100% (28,955,900) 76,807,848 88,007,848 155,552,426-70% 41,671,513 167,721,336 323,273,762 214,403,766-60% 159,308,508 (549,110,549) (334,706,783) 53,270,064-45% 15,031,123 75,104,477 128,374,541 90,000,000-45% 10,789,568 (4,695,849) 85,304,151 84,000,000-42% 707,495 (8,073,284) 75,926,716 49,860,000-40% 970,196 4,110,587 53,970,587 32,634,554-70% 16,496,677 39,306,039 71,940,593 24,000,000-80% (399,605) (5,990,961) 18,009,039 42,000,000-70% (21,573,088) (22,365,157) 19,634,843 1,520,000-76% 17,275 89,228 1,609,228 600,000-20% (1,054,835) (1,276,340) (676,340) 2,500,000-25% (1,104,451) (1,709,607) 790,393 104,280,000-44% 10,853,980 (92,446,476) 11,833,524 147,763,896-60% (3,238,705) 1,088,460 148,852,356-180,000,000 90% (20,543,022) (20,543,022) 159,456,978-24,000,000 40% - - 24,000,000-24,666,950 30% - - 24,666,950 1,013,584,706 228,666,950 178,976,729 (341,983,270) 900,268,386 (i) (214,403,766) (600,000) (158,253,673) 550,386,889 335,383,123 799,180,940 228,066,950 20,723,056 208,403,619 1,235,651,509 (i) 2003 12 31 65

2003 12 31 14 ( ) (2) ( ) % (i) 118,013,641-22.725 (2,340,875) 955,838-118,969,479 11,077,600 46.67 - (2,115,950) - 8,961,650 2,000,000-20.00 270,182 388,203-2,388,203 131,091,241 (2,070,693) (771,909) - 130,319,332 + 3,712,100-25.00 - - - 3,712,100 (ii) 200,000 (200,000) 12.00-16,831 (16,831) - 280,000-19.60 19,144 47,172-327,172 135,283,341 (200,000) (2,051,549) (707,906) (16,831) 134,358,604 (i) 2002, 29,903,001 27,562,126 (ii) ( 200,000 16,831 (3) ( ) 66,596,234 59,381,641-10 - 59,381,641 137,346,359 98,869,295-10 13,734,636 85,134,659 203,942,593 158,250,936-13,736,636 144,516,300 + 9,007,892 8,107,103-10 - 8,107,103 1,010,737 810,737-10 100,000 710,737 (88,611,120) (86,216,225) - 18.5 (4,789,791) (81,426,434) 2,744,027 2,629,693-10 - 2,629,693 34,694,631 33,538,143-10 3,469,463 30,068,680 5,434,634 5,208,191-10 - 5,208,191 168,223,394 122,328,578-12,514,308 109,814,270 ( ) 66

2003 12 31 14 ( ) (4) 59,381,641 - - 59,381,641 59,381,641 - - 59,381,641 + 11,819,000 - - 11,819,000-2,629,693-2,629,693-5,208,191-5,208,191 71,200,641 7,837,884-79,038,525 15 1,421,575,318 1,840,524,621 305,632,935 68,103,258 3,635,836,132 27,855,338 37,887,892 7,053,445 6,268,168 79,064,843 1,462,966 8,038,386 4,052,685-13,554,037 (8,220,774) (17,092,571) (5,249,597) (3,806,707) (34,369,649) 496,956 242,864 23,470 6,966 770,256 1,443,169,804 1,869,601,192 311,512,938 70,571,685 3,694,855,619 321,003,809 1,037,279,093 188,648,100 39,536,591 1,586,467,593 73,841,792 138,117,199 21,003,934 6,005,071 238,967,996 (1,539,515) (14,942,860) (3,146,250) (3,292,696) (22,921,321) 40,271 137,906 20,703 2,186 201,066 393,346,357 1,160,591,338 206,526,487 42,251,152 1,802,715,334 51,692,513 9,673,692 9,000-61,375,205 - - - - - 96,742 - - - 96,742 51,789,255 9,673,692 9,000-61,471,947 1,048,878,996 793,571,836 116,975,835 28,566,667 1,987,993,334 998,034,192 699,336,162 104,977,451 28,320,533 1,830,668,338 657,277,474 234,279,988 - - 891,557,462 28,427,553 - - - 28,427,553 67

2003 12 31 16 % 31,000,000 2,600,000 27,930,000-30,530,000 100 3,480,000 2,783,888 521,979 3,305,867-100 131,800,000-67,734,986-67,734,986 51 1,600,000 1,600,000-1,600,000-100 17,015,396-9,790,064-9,790,064 58 4,339,174 14,099,156 8,648,170 9,790,160 11,323,062 120,076,185 13,554,037 117,845,210 17-404,997,393 7,268,875 412,266,268 521,857,699 260,865,911 3,448,770 786,172,380 521,857,699 665,863,304 10,717,645 1,198,438,648-86,064,479 2,455,923 88,520,402 13,046,442 14,500,445 3,568,433 31,115,320 13,046,442 100,564,924 6,024,356 119,635,722-5,214,752 519,447 5,734,199-313,718,162 4,293,505 318,011,667 508,811,257 560,083,628 4,173,842 1,073,068,727-176,153,079-176,153.079 521,857,699 254,737,741 44 (5)(e)(i) 2003 10 10 69 ( ) 68

2003 12 31 18 121,266,417 87,032,013 (89,353,985) 118,944,445 1 3 60,855,555 3,334,232 (21,705,086) 42,484,701 1 5 4,070,392 1,110,355 (2,233,343) 2,947,404 1 5 6,373,599 10,897,654 (10,692,123) 6,579,130 1 3 192,565,963 102,374,254 (123,984,537) 170,955,680 19 (i) - 58,900,000 11,500,000 (ii) - 90,000,000 254,000,000 (iii) - 370,000,000 290,000,000-340,000,000 404,664,036 858,900,000 960,164,036 4,779% 6.44% (i) (ii) 273,736,825 ( 15) (iii) 13,000 20 69 1,804,580,651 424,914,036 134,054,354 517,677,693 1,938,635,005 942,591,729

2003 12 31 21 5% 22 5% 23 4,722,147 149,452 (37,784,327) 39,369,749 240,721 330,653 (32,821,459) 39,849,854 24 5% 25 59,866,538 61,277,048-3,659,416 3,490,000 116,160 55,980,928 39,856,044 34,838,488 35,048,277 40,532,276 33,619,626 10,408,778 17,131,167 3,807,974 1,608,183 4,477,620 4,000,000 7,832,985 14,760,653 221,235,587 211,076,574 70

2003 12 31 26 3 5 27 ( 28) 405,517,722 65,233,515 28-23,333,871 24,871,574 28,264,637 30,000,086 4.875% - 680,000,000-460,000,000 4.23%-5.31% - - 165,000,000-220,000,000 5.04%-5.31% - - - - 70,000,000 5.04%-5.31% - - 80,000,000 - - 5.31% 949,871,574 780,000,086 405,517,722 65,233,515 544,353,852 714,766,571 78,928,861 513,698,326, 140,000,000 260,000,000 ( 13 15) 44(5)(d) 71

2003 12 31 29 54,142,638 67,682,983 8,636,322 8,139,145 62,778,960 75,822,128 - - 62,778,960 75,822,128 30 2003 ( ) ( ) ( ) 1. - 337,915,755-337,915,755 337,915,755-337,915,755 1. 194,501,000-194,501,000 2.459,589,808-459,589,808 654,090,808-654,090,808 992,006,563-992,006,563 1 72

2003 12 31 31 1 2002 12 31 2,433,526,092 17,696,745 1,773,050 2,452,995,887 ( 1) - - 28,816,125 28,816,125 ( 2) (965,024,306) - - (965,024,306) 1,468,501,786 17,696,745 30,589,175 1,516,787,706 2 2003 5 18 2002 229,161,802 965,024,306 2002 12 31 32 229,161,802-114,580,901 343,742,703 (229,161,802) - - (229,161,802) - - 114,580,901 114,580,901 2002 12 31 ( 2) 33 (1,211,930,161) (1,313,207,151) 1,194,186,108-202,180,248 101,276,990 184,436,195 (1,211,930,161) 2002 12 31 31( 2) 2004 4 19 2003 73

2003 12 31 34 3,016,246,698 2,136,399,147 2,252,045,608 1,648,537,574 2,680,590,406 2,036,509,978 2,337,240,642 1,980,182,294 211,466,513 162,028,726 103,978,964 93,159,219 259,806,346 148,264,859 184,991,803 130,660,024 6,168,109,963 4,483,202,710 4,878,257,017 3,852,539,111 2,580,243,005 1,963,294,790 2,038,620,012 1,464,305,926 2,645,180,411 2,265,336,031 2,016,706,478 1,732,176,247 61,117,640 55,675,926 14,067,706 13,173,189 51,931,286 37,305,050 - - 5,338,472,342 4,321,611,797 4,069,394,196 3,209,655,362 % 361,836,272 6 35 39,677,575 14,487,206 8,722,367 2,125,336 48,399,942 16,612,542 74

2003 12 31 36 122,187,067 90,008,597 22,122,290 14,680,145 ( ) (9,607,442) (1,952,321) 9,939,923 2,160,033 100,397,258 75,536,164 37 (216,831) - ( ) (29,613,675) (4,133,776) (12,514,308) (12,937,006) (7,837,884) - (50,182,698) (17,070,782) ( ) 175,897,172 (90,075,136) ( ) (29,632,819) (4,151,247) (13,734,636) (13,734,636) 132,529,717 (107,961,019) 38 1,796,809 58,547 5,749,171 781,874 1,144,156 1,323,593 1,712,651 7,777,480 10,402,787 9,941,494 75

2003 12 31 39 2,629,116 748,140 2,865,183 3,351,624 5,494,299 4,099,764 40 ( ) - - 11,676,111 3,031,454 11,676,111 3,031,454 41 662,686,299 603,452,809 662,686,299 603,452,809 42 ( 6) 2,120,038,297 1,417,085,462 ( 6) 1,393,133,621 730,447,322 726,904,676 686,638,140 1,595,877,944 1,065,118,299 1,264,565,690 708,890,280 331,312,254 356,228,019 76

2003 12 31 43 3,016,246,698 2,680,590,406 211,466,513 259,806,346-6,168,109,963 - - - 959,071,311 (959,071,311) - 3,016,246,698 2,680,590,406 211,466,513 1,218,877,657 (959,071,311) 6,168,109,963 2,136,399,147 2,036,509,978 162,028,726 148,264,859-4,483,202,710 - - - 959,071,311 (959,071,311) - 2,136,399,147 2,036,509,978 162,028,726 1,107,336,170 (959,011,311) 4,483,202,710 726,440,164 574,939,139 31,296,293 86,972,133-1,419,647,729 153,407,387 69,141,289 18,141,494 24,569,354-265,259,524 4,681,340,496 3,502,249,352 375,269,361 873,932,005-9,432,791,214 3,166,555,123 2,814,729,705 111,427,592 293,981,395-6,386,693,815 44 (1) 5 2002 4 18 2002 4 18 (2) (i) 1,200,000,000 - - 1,200,000,000 (ii) 5 77

2003 12 31 44 ( ) (3) (i) % % % % 204,775,755 20.64 - - - - 204,775,755 20,64 (ii) 5 (4) + ( ) ( ) ( ) ( ) ) ( ) ( ) ( ) 2002 78

2003 12 31 44 ( ) (5) (a) - - 38,449,879 - - 37,757,424 - - 3,684,850 - - 4,505,359-18,421,493 9,031,636 - - 53,944,503-69,783,858 33,212,615 88,205,351 180,586,266 - - 144,592,405 - - 55,376,180 - - 16,537,733-42,663,295 31,089,799 - - 27,005,385 - ( ) 144,495,833 41,221,345-5,043,682 - - 7,174,279-199,377,089 315,822,847 79

2003 12 31 44 ( ) (5) ( ) (b) - - 1,222,603 (a) (b) / (c) 2003 4 3 ( ) ( ) 2003 (d) - - 3,975,000 - - 40,000,000-295,000,000 540,000,000 295,000,000 580,000,000 ( ) - (ii) 1,985,940 2,599,000 - (iii) 1,575,000 - - - (350,414) - (iv) (5,639,691) (2,351,475) (2,078,751) (102,889) 80

2003 12 31 44 ( ) (5) ( ) (e) 2,890,959-1,542,818-4,433,777-19,000,000 - (i) - 684,992,532-3,026,780 19,000,000 688,019,312 (i) - 51,602,908 (ii) 34,000,000 34,000,000 34,000,000 85,602,908 ( ) 42,542,637 - (iii) 26,000 149,000 116,091 5,087,833 ( ) 31,395,113 20,739,314 31,537,204 25,976,147 533,940-902,485-1,436,425-81

82 2003 12 31 44 ( ) (5) ( ) (e) ( ) (i) 1996 7 6 (a) / (b) / (c) 2002 12 31 857,401,566 172,409,033 51,602,907 / 2002 11 21 (a) 644,000,000 (b) 213,397,093 (c) 50,436,632 ( ) (d) 51,602,907 2003 40,000,000

83 2003 12 31 44 ( ) (5) ( ) (e) ( ) (i) ( ) ( ) 2003 9 30 2003 9 30 2003 10 (ii) ( ) ( ) 34,000,000 9.504% ( ) 2003 1,985,940 (iii) 2003 1050 2002:198 1,575,000 (2002: ) 2003 12 31 26,000 (2002: 149,000 ) (iv) 2001 4%

2003 12 31 45 44(5)(d) - 3,975-35,270-39,245 46-105,210 37,910 47 2003 1 24 2003 1 28 Modern Treasure Limited ( MTL ) 25 MTL 3,500,000 20,000,000 MTL 2004 3 3 3,500,000 2004 3 3 + 2003 12 31 11,819,203 48 2002 2003 * * * * * * 84

2003 12 31 1 2003 202,180 2003 12 31 2,808,731 2003 2003 12 31 202,180 2,808,731 - (11,010) 2,135 191,170 2,810,866 2 2003 (%) ( ) 59.98 62.3 1.70 1.70 9.44 9.81 0.27 0.27 7.20 7.48 0.20 0.20 6.87 7.14 0.19 0.19 3 2003 202,180,248 10,402,787 (5,494,299) 18,190 (216,831) 4,374,562 193,095,839 85

2003 12 31 3 2003 12 31 2003 1 1 ( ) 2003 12 31 319,294,128 300,785,980 9,858,108-4,374,562-172,409,033 172,409,033 152,368,641 128,376,947 140,506,141 128,376,947 9,674,351-602,476 - - - 149,578,016 128,376,947 178,787,987 172,409,033 183,757-3,772,086-172,409,033 172,409,033 2,790,625 - - - - - - - - - - - - - - - - - - - - - 136,726,986 108,200,007 35,261,035 30,812,035 - - 68,068,305 52,009,814 103,919,716 87,002,228 85,729,527 77,749,219 32,491,035 30,812,035 - - 52,934,137 48,687,633 65,286,425 59,873,621 - - 172,000 - - - - - 172,000-50,997,459 30,450,788 2,598,000 - - - 15,134,168 3,322,181 38,461,291 27,128,607 61,375,205-96,742 - - - - - 61,471,947-51,692,513-96,742 - - - - - 51,789,255-9,673,692 - - - - - - - 9,673,692-9,000 - - - - - - - 9,000-71,200,641 59,381,641 7,837,884 - - - - - 79,038,525 59,381,641 71,200,641 59,381,641 7,837,884 - - - - - 79,038,525 59,381,641 - - - - - - - - - - 86

2003 12 31 4 30%( 30%) 5%( 5%) 10%( 10%) (1) (2) 87

( ) ( ) ( ) ( ) ( ) ( ) http: www.cninfo.com.cn 2003 88