Aijian Shares Annual Report

Aijian Shares? 600643 said that because the company’s former executive Liu Shunxin is under investigation for suspected economic crimes, the company plans to withdraw long-term investment from the possible losses caused by the company and its subsidiaries’ investment in Aijian Securities. Impairment provisions will have a greater impact on the company's financial data at the end of 2003, and the company expects a large loss in its 2003 annual report. The company also announced that preliminary calculations show that the company's net profit in the first quarter of 2004 will increase significantly compared with the same period last year - 11.6968 million yuan, and its operating results will be profitable. (Time of certification)

Temporary announcement of Shanghai Aijian Co., Ltd.

Shanghai Aijian Trust Investment Co., Ltd. (hereinafter referred to as Aijian Trust) controlled by our company in September 2005 The seventh board meeting of the second board of directors was held on the 22nd, and the proposal to implement special impairment provisions for Aijian Trust’s assets was reviewed and approved.

As of August 31, 2005, the total trust assets of Aijian Trust were 9.036 billion yuan, of which 4.954 billion yuan were single-generation classified trust assets, and the net assets were 729.01 million yuan. According to the provisions of the "Accounting System for Financial Enterprises" and the "Accounting Measures for Trust Business", Aijian Trust shall make necessary impairment provisions for the above-mentioned trust property with the corresponding principal as the accounting entity, and the trust property shall bear the corresponding losses. It will not affect the net assets of Aijian Trust. However, due to the fact that the main person in charge of the former management team of Aijian Trust violated management responsibilities and improperly managed trust affairs during the operation process, Aijian Trust may have to bear corresponding trust compensation liability, thus affecting the net assets of Aijian Trust. In accordance with the principle of prudence and in order to further consolidate the net assets of Aijian Trust, it is planned to make special provisions in the inherent assets, totaling 637.5 million yuan.

The specific composition is as follows:

1. Capital trust stock investment. Since February 2002, it has started investing in stocks with trust funds. As of August 31, 2005, the stock investment balance was 323.3138 million yuan. Calculated based on the market value at the end of the period, the floating loss was 191.7101 million yuan. It had previously realized a loss of 40.5785 million yuan, with a total loss of 232.2886 million yuan. It is planned to make a special provision of 232.2886 million yuan (floating by then The actual amount of loss accrual is calculated based on the closing price when the accrual occurred).

2. Jinxing is a trust fund loan. Since April 2002, the financial banking system (referring to Shanghai Jinhang Real Estate Development Industrial Co., Ltd., Shanghai Galaxy Investment Co., Ltd., Shanghai Zetian Investment Co., Ltd., and Shanghai Jinhang Asset Investment Co., Ltd.) has successively issued trust fund loans and pledged Products are stocks. As of August 31, 2005, the balance of trust fund loans from Jinhang was RMB 400.7 million, including RMB 90 million from Shanghai Jinhang Real Estate Development Industrial Co., Ltd., RMB 130 million from Shanghai Galaxy Investment Co., Ltd., and RMB 55.7 million from Shanghai Zetian Investment Co., Ltd. , a capital trust loan of RMB 125 million from Shanghai Jinhang Asset Investment Co., Ltd. On March 20, 2005, the financial company failed to pay the first quarter interest on time. At the same time, some extension contracts have also expired. Aijian Trust discovered on June 3, 2005 that the market value of pledged stocks had dropped significantly to the critical line. Due to the above abnormal situation, Aijian Trust obtained legal advice and hired a lawyer to assist in the investigation, and learned that the stock pledge may be false. Aijian Trust reported the case to the Economic Investigation Corps of the Shanghai Public Security Bureau on June 27, 2005. The police has accepted the case and is in the process of investigation. As of now, it is understood that the value of the assets involved in the case that have been seized is approximately 30 million yuan. In view of this, it is estimated that Jin Bank will suffer a loan loss of 370.7 million yuan, and plans to make a special provision of 370.7 million yuan.

3. Jin Sanyuan Capital Trust Loan. The fund trust loan amount of Jin Sanyuan Investment Co., Ltd. is 60 million yuan. The loan period is from December 11, 2003 to November 28, 2004. The company's shop on Donglu Road, Pudong is used as a mortgage guarantee. The appraised value is 160 million yuan. Yuan. As of August 31, 2005, the balance of the fund trust loan of Jin Sanyuan Investment Co., Ltd. was 60 million yuan. The company has now ceased operations. The above-mentioned mortgaged properties were seized by the Economic Investigation Corps of the Jiangsu Provincial Public Security Department due to economic cases involving individual shareholders. Although Aijian Trust has won the lawsuit, it cannot dispose of the collateral until Jiangsu Economic Investigation lifts the seizure. The loan assets face certain risks, and a special provision of 30 million yuan is planned.

4. Beiyi Company’s capital trust loan. As of August 31, 2005, the balance of the capital trust loan of Shanghai Beiyi Medical Equipment Co., Ltd. was 4.5 million yuan. The loan maturity date is April 14, 2003. The credit guarantee is provided by Shanghai Mingdong Hotel. Since the Mingdong Hotel closed down, Beiyi Company has been unable to repay the loan, and the company has filed a lawsuit. This loan has the risk of being unable to realize its creditor's rights due to losing the lawsuit or other reasons, and a special provision of RMB 4.5 million is planned.

The above-mentioned special provisions will have a significant impact on the profit and loss and net assets of Aijian Trust in 2005. The profit and loss is expected to be about 635 million yuan, and the net assets are expected to be reduced to about 90 million yuan.

The above special provisions will directly affect the net assets of the joint-stock company and this year's profit and loss. The company's board of directors will review it in a timely manner and make relevant resolutions.

The company was originally expected to achieve profitability in 2005, but if Aijian Trust makes impairment provisions for the above assets, it will have a significant impact on the company's net assets and profits this year. The company expects to invest in Aijian Trust The loss is about 635 million yuan, and the company's net assets will be reduced by about 635 million yuan.

Investors are advised to pay attention to investment risks. The newspapers and periodicals designated by our company for information disclosure are "China Securities Journal" and "Shanghai Securities News". The company will strictly comply with the provisions and requirements of relevant laws and regulations and conduct information disclosure in a timely manner.

This is an announcement.

Shanghai Aijian Co., Ltd.

September 23, 2005

Excerpted from "Shanghai Securities News" on September 26, 2005