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Total Services We at BEA always strive to surpass customer expectations, helping our clients achieve their financial goals in a rapidly changing world. BEA has developed extensive expertise and a diversified network of services to enhance customers' banking and financial experience. REPORT OF THE DIRECTORS REPORT OF THE DIRECTORS (continued) The Directors have pleasure in presenting their annual report During the year, 14,204,000 shares of HK$2.50 each were together with the audited accounts for the year ended 31st issued for cash of HK$217,003,000 on the exercise of options December, 2003. granted under the approved Staff Share Option Schemes. Principal Activities Convertible Bonds due 2003 The Bank and its subsidiaries (the “Group”) are engaged in the In July 2003, the Bank fully redeemed the Convertible provision of banking and related financial services, and business, Bonds due 2003 (the “Bonds”) at par in the amount of corporate and investor services. HK$119,621,000 (US$15,340,000) upon maturity pursuant to the terms and conditions of the Bonds. The Bonds were listed Profit on the Luxembourg Stock Exchange. The consolidated profit of the Group for the year ended 31st December, 2003, together with particulars of the appropriations Dealings in Listed Securities of the Bank which have been

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