Bank was the fifth largest commercial bank in the PRC based on total assets as of Dec 31, 2004. As of Dec 31, 2004, the Bank had a network of 92 branches, 2,413 sub-branches, 87 outlets, 1,486 self-service centers and 4,545 ATMs in 137 cities in the PRC. Through this network and other distribution channels, the Bank provides a broad range of financial products and services to its corporate and retail customers. For the year ended Dec 31, 2004, its operating profit before tax was RMB7,750 million. As of Dec 31, 2004, the Bank's total assets were RMB1,145,455 million, and its shareholders' equity was RMB53,553 million.

Bank's three principal lines of business are corporate banking, retail banking and treasury operations. Its corporate banking business provides a broad range of products and services to its corporate customers, such as loans, deposits, bill discounting, settlement, trade finance, fund custody and guarantees. The Bank's retail banking business provides a broad range of retail banking products and services to its retail customers, such as deposits, mortgage loans, car loans, debit cards, credit cards, wealth management and foreign exchange trading services. The Bank's treasury operations include, among others, inter-bank money market transactions, foreign exchange trading and government and finance bond trading and investment. The Bank is incorporated, and substantially all of its operations are located, in the PRC. In addition to its PRC operations, the Bank currently has branch offices in Hong Kong, New York, Tokyo and Singapore, and representative offices in London and Frankfurt. In addition to its branches and representative offices, the Bank also has 33 subsidiaries in the PRC and 16 subsidiaries in Hong Kong.

The net proceeds from the Global Offering of approx. HK$12,643 million will be used as follows: strengthen and expand its core corporate banking business; enhance its retail banking businesses; strengthen businesses that generate non-interest income; strengthen its distribution network; enhance its ability to provide, and marketing of, multiple products and services by leveraging our broad customer base; leverage its cooperation with HSBC to enhance its management and competitiveness; continue to improve its risk management and internal controls; and implement and optimize its cost control system.