Since its listing, with the enthusiasm and support of the Beijing Municipal Government and various sectors in Hong Kong, Beijing Enterprises has successfully adhered to the mission of maximizing shareholders' interests. Leveraging on Beijing's edges and through the convergence of both the resources in Beijing and Hong Kong, we insist in a proactive and steady direction of operation as well as prudent and focused investment strategies. The scale of its businesses and assets are gradually expanding with improving operating results. Our strength as a whole enhanced significantly.

Since 2004, Beijing Enterprises actively traces the changes of market orientation, reform in the state-owned assets administration system, and the progress of market-oriented operations for public utilities. We have established the market positioning of "an integrated public utilities company with municipal energy services as the core business segment" and created the overall strategic mission as "the major entity and the investment and financing platform under the Beijing Municipal Government for the operation and administration of infrastructure and public utilities". We have initiated the joint reorganization of Beijing Gas Group, and divested non-core business segments at an extensive scale. Through more than three years of uninterrupted dedication and devotion, Beijing Enterprises preliminarily achieved the strategic transformation from a conglomerate to a professional public utilities company.

The consolidated net assets of Beijing Enterprises after the transformation was approximately HK$ 16.5 billion, which was increased by 5.7 times from that in 1997. Our core business segments, which are focused in public utilities, cover municipal gas, expressway and municipal water operations, and accounts for 62.3% of the total assets. At the same time, we also own the consumer business segment, which is mainly Yanjing Beer, and the high tech business segment.

By leveraging on the excellent profitability and growth prospects, experiences in municipal gas administration and huge influence of Beijing Gas Group Company Ltd. in the industry, Beijing Enterprises preliminarily established its position and influence in the overall infrastructure and public utilities industry. The standard in management team was effectively lifted in the municipal public utilities aspect. This in turn facilitated Beijing Enterprises to benefit from the rapid development of municipal construction in Beijing. We will explore pipeline gas market outside Beijing at a time appropriate, so as to derive new driving force for growth successively.

Since its listing, Beijing Enterprises has persistently upheld the mission "booming in Hong Kong with a foothold in Beijing". We have devoted to facilitate the building of economy in Beijing and booming in Hong Kong. Since listing, more than HK$20 billion were raised overseas for the economic development and municipal construction of Beijing. More than HK$24 billion were invested in Beijing, and cumulative investment in Mainland amounted to RMB 25 billion. We have introduced capital, technologies and management expertise for the economic construction of Beijing Municipality, and performed the essential bridge and hub functions for the economic and trade cooperation on the advantageous resources between Beijing and Hong Kong.