China Merchants Group (the Group) has made major strategic investment and achieved rapid growth in 2005, surpassing the financial targets and key work set out at the beginning of the year, made new advancement based on the rapid growth and expansion of 2004, and made a solid step forward for the fulfillment of five-year plan. Our achievements are as follows: - The Group has maintained rapid profit growth, operating profit and net profit has respectively amounted to RMB 6 billion and RMB 4 billion. Gross profit has mounted to RMB 6.3 billion, and return on net assets reached 18.39%. - With respect to major financial targets, the Group has enhanced risk control, which reflects improvement in business operation and efficiency. - The Group has made great achievement in nurturing of core business sectors. The Group has made unprecedented investment of RMB 13.464 billion, focusing on core business sectors. Plus the undergoing investment project, the Group has made total investment of RMB 21.7 billion, all core business sectors have entered the stage of full scale construction. - Business restructuring has made great advancement and the Group has strategically withdrawn from the tourist sector. The achievement of 2005 has been hard-won. It signified the more balanced, healthy and sustainable growth model advocated by the Group. The year 2006 is a crucial year in achieving the Group’s development strategy. The Group will continually focus on expansion and efficiency, and will be faced with more changes in external environment and more hardship. The Group will stress restructuring, asset optimization and management upgrading. The top management and staffs of the Group are confident in achieving these goals. The Group’s development depends greatly on the support of all social circles. I would like to take this opportunity to express our thanks to everybody on behalf of the Group, and we look forward to more concern and support to China Merchants Group from all social circles.