Performance

The investment banking business grew steadily in 2003. Particularly, breakthroughs and unique characteristics had been attained in the primary industries such as coal, electric power, harbor service materials, non-ferrous metals.

During 2003, we were the lead managers for one IPO and two secondary offerings. Totally 120 million shares were underwritten and RMB 928 million of funds was raised, ranking the 20th and 23rd in the league table. Three additional IPO projects, were subject to the approval of CSRC. Among them, the over RMB 1-billion-worth offering of Kailuan Coal, so far the largest IPO case in capital raising we have involved, address a milestone in our engagement in Coal sector. In the field of Corporate Bonds underwriting, we have lead-managed 4 billion RMB corporate bonds issuance for China Huaneng Group and jointly lead-managed 5 corporate bonds for Suzhou Hi-tech Industrial Park, Suzhou Hi-tech Development District, Jiangsu Transportation, China Power Investment and National Power Grid.

In addition, we provided advisory services in the Zhongyuan Project for Huaneng International. This was the first time we had coordinated with international bulge brackets such as J.P. Morgan and Merrill Lynch on a large financial advisory project. Its successful completion marked a significant progress for our financial advising capability.