In 2003, SYWG, persisting in the operating principle of "abiding by law, regulations and standards" and by vigorously exploring the way of "low operation cost and great-leap-forward development", pushed forward the development of all businesses and achieved good operating results. By the end of 2003, it had accomplished a total business volume of RMB704.4 billion, a business revenue of RMB1.061 billion, a total profit of RMB202 million, with a total assets of RMB30.782 billion and a net capital of RMB1.496 billion.

I. Vigorously pushed forward system reform and accelerated development of all businesses

In 2003, SYWG carried out further the reform in the administrative system and operating mechanism and clearly defined the duties of market business, technical support and comprehensive administration, forming three interrelating and coordinating lines.

In the investment banking business a framework of a modern investment bank organization was preliminarily formed. The business of underwriting securities witnessed obvious progress. SYWG was the lead underwriter of Xingma Automobile A shares, Tongdu Copper Industry convertible bonds, and Jiangnan High Fiber A shares, as well as the associate lead underwriter of the additional issue of Shanggong B shares, achieving a total underwriting volume of shares and convertible bonds of about RMB1.223 billion. Making a good start in the business of M&A, it signed 13 different business agreements with contract revenue of RMB11 million. Meanwhile, the business of fixed income rapidly increased. It underwrote a total of RMB9.28 billion of treasury bonds, RMB2.46 billion of financial bonds and RMB1.34 billion of corporate bonds, with the total underwriting volume amounting to RMB13.08 billion.

The brokerage business adapted on its own initiative to the clients' needs and market changes. It achieved positive results by strengthening value-added service and promoting off-the-spot transactions. Its amount of A share transactions of the whole year in Shanghai and Shenzhen accounted for 4.25% of the market, ranking the 4th in the country. The share of 6.80% in B share market ranked the 3rd in the country. The acting of share transfer continued to hold a leading position in the market and the share in the secondary market was 30%. It took efforts in reserving projects, studied and pushed forward the development of the function of share commission market. It had preliminarily established an open-end fund commission sale system and accomplished an accumulated sales amount of RMB560 million for 32 funds. It became one of the first 12 securities trading agents chosen by the National Social Security Fund.

The business in Hong Kong market made a steady progress. SYWG (Hong Kong) Group Co., Ltd. occupied 1.18% in the brokerage market. It participated in underwriting projects in 10 entities, financing a total amount of HK$190 million and accomplished 15 financial consultant projects.

In the aspect of financial innovation, SYWG also achieved breaking-through progress. In June 2003, it became the first domestic securities investment agent for QFII in the country. By the end of 2003, it has signed agreements of agency with two QFII clients UBS and Deutsche Bank for securities investment in the country, with a QFII trading volume of RMB2.7 billion under its agency. Besides, it had formed a working system for the design and development of product innovation, and strengthened the work in product innovation, accomplishing a reserve of 20 innovated products.

The joint venture SW BNP Paribas Asset Management Co., which was invested and established by SYWG and BNP Paribas Asset Management SAS, was approved in December 2003 by China Securities Regulatory Commission. Now, it has officially opened for business and has issued fund products, forming a new setup of fund business under the group framework.

II. Effectively strengthened guard against risks and raised standard of comprehensive administration

In 2003, SYWG set up the Risk Control Office and initially established a joint meeting system for control of risks and a risk control organizational system, including the five functions of auditing, risk control, internal examination, discipline inspection and supervision. In the meantime, it strictly executed the regulations of the China Securities Regulatory Commission, strengthened internal administration, and perfected different rules and regulations in order to effectively guard against all kinds of risks.

In 2003, in face of the severe test of SARS, SYWG, while guarding against SARS, emphasized on the work of internal administration and business development. It successfully protected the health and safety of investors and employees and steadily raised the comprehensive administrative standard. It continued to accomplish the overall administration of the budget, reduce operating cost, ensure the dynamic balance of funds and raise the administrative standard of funds; ensured the safe operation of computers and strengthened the support to technical innovation; organized the carrying out of standardization of basic administration of business branches, conducted 100% on-the-spot auditing for all the 109 business branches and raised the basic administrative standard of the business branches; vigorously put into effect the planning of qualified personnel and continued to push ahead the reform of personnel system so as to optimize the staff structure.

III. Further carried out Party construction and advocated building of cultural civilization

In 2003, SYWG further carried out activities of studying and implementing the important ideas of the "three represents" and the essence of the Party's 16th National Congress, aiming at the building of cohesiveness. It strengthened the construction of ideology, organization and style, increased the effective coverage of the Party organization, emphasized on supervision of Party member's behavior and honest performance of official duties, continually carried out a series of educational activities on Party member's behavior, Party spirit and Party discipline to ensure the company's successful reform and development.

SYWG continually improved the system of the employee congress and strengthened democratic administration and democratic supervision. It successfully completed the election and change of terms of leaders of the Labour Union and the Communist Youth League Committee. It carried out work contest and essay solicitation competition; vigorously conducted the building of the "model window" and the "model department", emphasizing on deep-going and actual effect. In 2003, in SYWG there appeared a number of outstanding collectives and individuals, among whom Comrade Zhuang Dongchen won the honor of " May 1st National Labor Medal" and Comrade Ying Beiyu was awarded Shanghai "March 8th Red Banner Holder".