Ladies and gentlemen,

    In 2003, Shandong Construction Engineering Group carried out spirit seriously of Sixteenth National Congress, Third Plenary Session, and “3 representatives”, made concerted efforts and struggled toughly, and thus resulted in that every economic technique target realized historic breakthrough. We realized enterprise total production value of ￥2,900,000,000yuan, construction production value of ￥2,200,000,000yuan, which increased 45% and 47% respectively than last year; we also realized profit & tax of ￥166,000,000yuan, including profit of ￥91,160,000yuan, which increased 20% than last year; the accumulated construction area in building of all the year reached 3,600,000m2, which increased 32.25% than last year; the high-quality rate of projects is keeping above 80% for 5 constant years, which takes the leading position among Ji’nan construction industries; the average personal income reached ￥41,900yuan, which increased 50.2% than last year and realized target of creating no specially poor staff enterprise 3 months in advance. The Group was honored as China Advanced Enterprise on Quality & Benefit, China Quality & Credit Guarantee Enterprise, China Model Enterprise on Spreading Lubuge Experience, Shandong AAA Enterprise of Special Class Capital-credit, and also granted as one of the first enterprise culture construction demonstration unit of Shandong Province and Ji’nan City, etc.
    Achievement can only stand for the past. In 2004, the Group held stockholder conference and staff representative conference successfully. In these conferences, the general project of enterprise’s further reform, layout of quality upgrading, scientific development strategy and talent strategy were discussed and passed, and the new year’s great blue print was put forward: the planned enterprise general production value of ￥3,500,000,000yuan, including construction production value of  ￥2,500,000,00yuan and attached production value of ￥1,000,000,000yuan, profit of ￥120,000,000yuan, and average personal income of ￥50,000yuan. The whole staff of the Group will go on carrying forward enterprise spirit of “Working hard and perseveringly, struggle with great efforts, strive for actual effects, and try best to create first-class enterprise”, and regard spirit of Third Plenary Session of Sixteenth National Congress as supervision, forward with time and work with efforts. At the same time that we fulfill every economic technique target of 2004 entirely and create SCEG as “aircraft carrier” of Shandong construction industry, we also promise to the society earnestly that we, Shandong Construction Engineering Group, will be your sincere friend for ever, and wish to provide top-class construction projects and fine service, and will welcome and hope the friendly cooperation with you.

           Thank you very much!
                                                                                           Mr. Li Xianzhi 
                                                                                           Board Chairman & Secretary of PPR Committee of SCEG
                                                                                           June 2004