The year 2006 is a strategic year of our bank during which we strove to promote the coordinative development of quality, efficiency and speed. It was also an important year when our 2005-2007 development planning was executed. With the supervision and guidance of Jinan Committee of Communist Party and the local government, conforming to the relevant laws and regulations, we executed resolutions of the Shareholders
Meeting and protected the interests of shareholders wholeheartedly. Under the leadership of the Board of Directors, which is in charge of the overall development of the business and with the conscientious organization of senior mangement of the bank and the hard-working of our staff, great achievement was made in this year. Our achievement was attributed to the support and help of governments at all levels, regulatory authorities, shareholders, our customers and other sections of the whole society. My sincere gratitude goes to all of them. Over the past year, we strove to enhance the corporate governance and improve the business operation and management quality. Three great tasks were finished with great success: holding China City Commercial Banks Conference and the 7th Development Forum, organizing activities in celebration of the 10th anniversary of the bank, and settling in the newly-built head office. These events have promoted the image and made a notable impact considerably. The bank made a decision of strategic transform and made efforts to take a firm step of transforming a conventional development model into an intensive development model.

The year 2007 is a critical year of our three-year plan and also the first year of a new ten-year development. In the new year, we will adhere to the Scientific View of Development, establish a bank with comprehensive communication on learning, and create a harmonious atmosphere in our bank. Besides, we will put emphasis on strategic transform and development in management mentality, organization structure, marketing model and IT capability, aiming to promote our core competitiveness, and realizing great development so that we can make greater contribution to the local economy and requite to our shareholders and the society.

Party Secretary and Chairman of Board of Directors
Qiu Yunzhang