In 2010, the world economy has finally shaken off the impact of recession, and has started on the road of recovery. China has enjoyed a stable and rapid economic growth with its GDP overtaking that of Japan, making it the second largest economy in the world. Impacted by gradual exit from stimulus and enhanced inflation expectations, China’s stock market has been experiencing fluctuations all year through. The SSE Composite Index dropped from 3,277 at the year beginning to 2,808 at year end with the lowest point at 2,319 in the year. The average daily trading volume of stock and funds was RMB 229.2 billion, up 2.4% yoy; the total financing amount in A-share market was RMB 1,006.1 billion, up 95% yoy. Among which, the IPO financing amount was RMB 492.1 billion, up 143% yoy.

Under the leadership of the new management framework centered around the Executive Committee, the Company has overcome difficulties and capitalized on opportunities to advance the works in each area, and successively exceeded the annual operating targets over the year. For the year in review, the Company generated operating revenues of RMB 27.8 billion and net earnings of RMB 11.3 billion, boosting our net assets to RMB 70.4 billion, up 26.3%, 25.9%, and 14.3% respectively. Our ROE was 17.3%, registering a 1.9% increase. The Company ranked the first place in terms of both revenues and net earnings among all the securities houses in the country, accounting for 14.6% of the total revenues and net earnings in the industry respectively. CITIC Securities has also received the highest result - A Class AA Grade – for the third year in a row in the appraisal of securities companies.

In 2010, the traditional businesses of securities firms still featured heavy reliance on the market conditions and homogeneous competition. The traditional business model of securities companies is facing an ever challenging threat. By carefully developing and implementing the buy-side strategy, CITIC Securities has constantly been exploring the way out of the traditional business model. Through years of hard work, the Company has hammered out a new business model, which can be summarized as: accumulating resources from the sell-side, realizing revenues from the buy-side, and forming a cycle of mutual stimulation between the two.

In 2011, the Company will uphold the general guideline of "implementing the consensus; breaking the bottlenecks; exploring and practicing the new business model" and focus on the following six priorities: to further consolidate the strong footing we have in sell-side business; to aggressively promote the growth of our capital-intermediary buy-side business; to reinforce our conventional investment business; to proactively seek for alternative investment opportunities; to continue to strengthen our position in international business; and to make appropriate updates in our supporting lines so that they could provide our new business model with greater services.

As the verse goes, "the enemy is like a wall of iron, yet with firm strides, we are conquering its summit." Let's join our hands together to implement the "Our Principles", pushing the limits onward and guiding our company to take off once again with the new business model.