The directors hereby present their report together with the audited accounts for the year ended 31st December 1999.

Principal Activities
  The Bank and its subsidiary companies are primarily engaged in general banking business.

Accounts
  The results of the group for the year ended 31st December 1999 and the Consolidated Balance Sheet as at 31st December 1999 are set out on page Financial Charts.. The board of directors has resolved to appropriate the group's consolidated profit after taxation for the year as follows: 1.Transfer HK$1,010,000 to staff bonus and welfare funds.
2.Distribute a divident of HK$54,485,000 to the shareholders as resolved at the directors' meeting.

Directors
  The names of the directors serving at the date of this report are set out on Board of Directors. In accordance with article 14 of the Articles of Association of the Bank, the Chairman, the Vice Chairman and all directors shall serve for a term of three years and may be reappointed.

Auditors
  The accounts have been audited by Fujian Huaxing Certified Public Accountants, who, after completion of this year's audit, offer themselves for reappointment.

On behalf of the Board

Li Li Hui
Chairman
12th May,2000