Appraisal SYSTEM

Submitted To
In
Partial Fulfillment Of The Requirement For The Award Of The
Degree

Under The Guidance of

Submitted By

(Faculty, M.B.A)

Roll no.

BLS INSTITUTE OF TECHNOLOGY MANAGEMENT

Acknowledgement
Every person who touches heights, reaches that level with the grand support, blessings of
his /her loved ones, guides, teachers, elders. He cant deny the fact that they are the
people behind his success. The research project titled Appraisal System. Shall be
incomplete without paying gratitude to those wo helped me in completing it. I would like
to express my sincere gratitude to all those who have shaped and enriched my
understanding by sharing their their insights and experiences with me.
I am very thankful to the people who provided me their help and support.
I owe my special thanks to. (Faculty, BBA department)
for his grand support, guidance, and for being a helping hand in every
possible way in this project
am very thankful to (HOD, MBA Department) for dvoting
his precious time and for leaving no stone unturned for the completion of this
project.

DECLARATION

I PRIYANKA here by declare that the research project

titled assigned to me for the requirements of partial fulfillment the award
of the BBA degree
It is the original work done by me & the information provided to
me in the study is authenticated to the best of my knowledge the study has
not been submitted to any other institute or university for any other degree.

David virmani
M.B.A. 4th Semester
Roll No: 1050
DVIET, Karnal.

Table of Contents

1) Acknowledgement

2) Declaration

3) Executive Summary

4) Introduction

4-13

5) Research Methodology

14-15

6) Objective of study

16

7) Finding, Analysis & Interpretation

17-40

8) Conclusions

41

9) Recommendations

42

10) Bibliography

43

CHAPTER 1
INTRODUCTION
Introduction
As a company grows, so does its need for more formal or structured management
systems. Managing the performance of people in the company becomes increasingly
important.
Appraisal:
- The act or an instance of appraising.
- An assessment of the worth or quality of a person
An appraisal (what ever it is called in your company) is a face-to-face (one to one)
discussion where an individuals work is discussed, reviewed, and appraised by another.
Usually the line manager following an agreed and understood common structure or
framework.
Usually, line managers conduct the appraisals of their staff. In some companies a peers
review is used.
Line managers are increasingly being appraised by their staff through the use of 360
degree appraisal. This is where feedback is obtained from the an individuals manager,
peers and direct reports.
Typically an appraisal process focuses on behaviours and performance results. The
process strives to improve motivation, individual growth, and performance of the
appraise.
appraisals system should be conducted at least once a year, although many argue that the
more regular (quarterly as a minimum) the easier and more value the process adds.
appraisal is a generic term that refers to the process of assessing, in a structured way, the

case for proceeding with a project or proposal. It often involves comparing various
options, using economic appraisal or some other decision analysis techniqueappraisal,
also known as employee appraisal, is a method by which the job performance of an
employee is evaluated (generally in terms of quality, quantity, cost and time).
Performance appraisal is a part of career development.
Performance appraisals are regular reviews of employee performance within
organizations
Generally, the aims of a performance appraisal are to:

Give feedback on performance to employees.

Identify employee training needs.

Document criteria used to allocate organizational rewards.

Form a basis for personnel decisions: salary increases, promotions, disciplinary

actions, etc.

Provide the opportunity for organizational diagnosis and development.

Facilitate communication between employee and administration

Validate selection techniques and human resource policies to meet federal Equal
Employment Opportunity requirements.

A common approach to assessing performance is to use a numerical or scalar rating

system whereby managers are asked to score an individual against a number of
objectives/attributes. In some companies, employees receive assessments from their
manager, peers, subordinates and customers while also performing a self assessment.
This is known as 360 appraisal. forms good communication patterns
The most popular methods that are being used as performance appraisal process are:

Management by objectives

360 degree appraisal

Behavioral Observation Scale

Behaviorally Anchored Rating Scale

Trait based systems, which rely on factors such as integrity and conscientiousness, are
also commonly used by businesses. The scientific literature on the subject provides
evidence that assessing employees on factors such as these should be avoided. The
reasons for this are two-fold:
1) Because trait based systems are by definition based on personality traits, they make it
difficult for a manager to provide feedback that can cause positive change in employee
performance. This is caused by the fact that personality dimensions are for the most part
static, and while an employee can change a specific behavior they cannot change their
personality. For example, a person who lacks integrity may stop lying to a manager
because they have been caught, but they still have low integrity and are likely to lie again
when the threat of being caught is gone.
2) Trait based systems, because they are vague, are more easily influenced by office
politics, causing them to be less reliable as a source of information on an employee's true
performance. The vagueness of these instruments allows managers to fill them out based
on who they want to/feel should get a raise, rather than basing scores on specific
behaviors employees should/should not be engaging in. These systems are also more
likely to leave a company open to discrimination claims because a manager can make
biased decisions without having to back them up with specific behavioral information.
In the PTF Report it was claimed that although annual Reports by ministries and
departments are obligatory, they are hardly ever prepared and submitted to government,
and where they, they are scanty and hardly confirms with any standards, either in terms of
contents or format. The recommendation was that there should be target setting by
ministries where concrete and measurable achievement can be inferred.
Objectives of Appraisal system
Appraisal can be done with following objectives in mind:
1. To maintain records in order to determine compensation packages, wage structure,
salaries raises, etc.

2. To identify the strengths and weaknesses of employees to place right men on right
job.
3. To maintain and assess the potential present in a person for further growth and
development.
4. To provide a feedback to employees regarding their performance and related
status.
5. To provide a feedback to employees regarding their performance and related
status.
6. It serves as a basis for influencing working habits of the employees.
7. To review and retain the promotional and other training programmes.
Advantages of Appraisal System
It is said that performance appraisal is an investment for the company which can be
justified by following advantages:
1. Promotion: Appraisal helps the supervisors to chalk out the promotion
programmes for efficient employees. In this regards, inefficient workers can be
dismissed or demoted in case.
2. Compensation: Appraisal helps in chalking out compensation packages for
employees. Merit rating is possible through performance appraisal. Performance
Appraisal tries to give worth to a performance . Compensation packages which
includes bonus, high salary rates, extra benefits, allowances and pre-requisites are
dependent on performance appraisal. The criteria should be merit rather than
seniority.
3. Employees Development: The systematic procedure of performance appraisal
helps the supervisors to frame training policies and programmes. It helps to
analyse strengths and weaknesses of employees so that new jobs can be designed
for efficient employees. It also helps in framing future development programmes.
4. Selection Validation: Appraisal helps the supervisors to understand the validity
and importance of the selection procedure. The supervisors come to know the
validity and thereby the strengths and weaknesses of selection procedure. Future
changes in selection methods can be made in this regard.

5. Communication: For an organization, effective communication between

employees and employers is very important. Through performance appraisal,
communication can be sought for in the following ways:
a. Through performance appraisal, the employers can understand and accept
skills of subordinates.
b. The subordinates can also understand and create a trust and confidence in
superiors.
c. It also helps in maintaining cordial and congenial labour management
relationship.
d. It develops the spirit of work and boosts the morale of employees.
All the above factors ensure effective communication.
Motivation: appraisal serves as a motivation tool. Through evaluating performance of
employees, a persons efficiency can be determined if the targets are achieved. This very
well motivates a person for better job and helps him to improve his performance in the
future.

Performance Management An Overview

Performance management is a systematic process by which a company involves its
employees with their line manager (and often members of a group), in the identification
and implementation of organisational effectiveness improvements in the accomplishment
of the objectives of the company.
Employee performance management typically includes:
* Planning work and setting performance and work standard expectations
* Continually monitoring and providing feedback on performance
* Developing the capacity to perform
* Regularly rating performance in a summary and agreed format
* Recognising and rewarding good performance.

Planning
In any highly effective company, much of the work is planned and scheduled in advance.
Planning means setting performance expectations and goals for teams and individuals to
focus their efforts toward achieving agreed company objectives.
Getting employees actively involved in the planning process will help them understand
and engage with the objectives of the company. This includes but is not limited to:
* What needs to be done
* Why it needs to be done
* How well it should be done
Monitoring
In any highly effective company, assignments and projects are monitored on a regular and
appropriate basis.
Effective monitoring means consistently measuring performance and providing
appropriate and ongoing feedback on progress toward reaching the agreed objectives.
Developing
In any highly effective coompany, the development needs of employees are evaluated and
addressed in a systematic yet individual way.
Developing in this context means increasing the capacity to perform through
developmental activities such as: training, giving assignments that introduce new skills or
higher levels of responsibility, improving work processes, or other methods.
Providing employees with effective training and developmental opportunities encourages
good performance, strengthens job-related skills and competencies, and helps employees
keep up with changes in the workplace, such as the introduction of new technology.
Rating
From time to time, most companys find it useful to summarise employee performance.

Using a consistent framework, this can be helpful for looking at and comparing
performance over time or among various employees.
Companys need to know who their best performers are.
Rewarding
Rewarding means recognising employees, individually and as members of teams, for
their performance and acknowledging their contributions to the companys objectives.
A fundamental principle of effective management is that all behaviour is controlled by its
consequences. Those consequences can and should be both formal and informal and both
positive and negative.
Making performance management easy
To be effective (and easy) performance appraisals should be an on going process rather
than a one a year barrier for all concerned.
For managers and team leaders that continuously feedback as part of their managerial
style, the annual performance appraisal becomes easy and an affirmation of a positive
working relationship. Instead of a drudgery merely to be tolerated to meet a departmental
goal of having them all completed.
Where performance appraisals are an annual event, they tend to create a great deal of
anxiety in both the line manager and individual.
Much of the emotion and reluctance concerning this event centres around a fear of the
unknown, usually on both sides of the desk.
Employees often feel uncomfortable because they believe they have not received much
feedback during the year or because they are unsure about the performance criteria on
which they are being reviewed.
Line managers, on the other hand, sometimes are equally reluctant with their role, the
subjectivity of the evaluation, or their employees possible reactions.

A combination of these triggers often leads to a less than satisfactory result for everyone
involved.
It is often said that performance appraisals are defined as an event at which managers get
no sleep the night before and employees get no sleep the night after.
So if performance appraisals so often are difficult, uncomfortable, and unsatisfactory,
what can be done about it?
When objectives are set on a 12-month timetable, people tend to agree to them and then
promptly get back to work.
This is natural. Routine activity always takes precedence over non routine activity, and
before anyone realises what happened, three months six months have gone by and no
one has thought about the annual objectives.
In fact, company priorities typically change so significantly in that period that those
annual objectives are not as relevant as when they were set.
A Solution?
Do it little and often. Its like the old saying How do you eat an elephant..? One bite at a
time.Set objectives which are real and relevant now (SMARTer objectives)
Having monthly one-to-ones with the big one just being a summary of the other
meetings. It is a lot less stressful and increases the opportunity of adding value to the
relationship as well as developing motivation and performance all round.
For performance appraisals to be effective they must be owned by the individual and the
line manager not a central HR department (although they may be responsible for
developing and maintaining a MINIMUM STANDARD)

Appraisal process system

We specialize in providing professional real estate valuation services. Appraisal reports

are prepared with the precision that the industry demands and cover all major property
types. All of our assignments comply with the Uniform Standards of Professional
Appraisal Practice. Consequently, we do not accept assignments with contingencies such
as:

The amount of the value opinion predetermined or minimum values.

The attainment of a stipulated result.

The occurrence of a subsequent event directly related to the appraisers opinions

and specific to the assignment results.

Any assignment condition that might encourage, or result in, unethical behavior
on the part of the appraiser or third parties.

appraisal systems are one of the paradoxes of human-resource management, according to

M. Susan Taylor, Kay B. Tracy, Monika K. Renard, J. Kline Harrison, and Stephen J.
Carroll, writing in the 1995 Administrative Science Quarterly (Vol. 40). They may
provide valuable performance information, but are a practical challenge and often a
disappointment to those who use them, and their contribution to organizational
effectiveness has not been fully realized. The authors point out a number of reasons they
believe this is the case: the proliferation of work settings where objective results are
difficult to measure, cognitive and motivational bias on the part of the rater, and the
application of inconsistent standards across the organization.
Taylor and colleagues propose a "due-process" performance appraisal as an alternative to
existing appraisal systems. The due-process appraisal requires organizations to provide
adequate notice, a fair hearing, and judgments based on evidence. Advocates believe that
procedural justice will increase both manager"and employee perception of control over
the process, motivation to correct weak performance and enhance self-worth and group
standing. To test the due-process appraisal system, the authors conducted a controlled
field experiment in a large government agency over a 3-month period, randomly
assigning employee-manager pairs to a due-process or the existing appraisal system.
To develop due-process components in the test required the following:

* Adequate notice involved training of both managers and employees to develop,

communicate, and negotiate standards, and formal meetings held at the beginning of the
3-month test t...

Use appraisals to manage performance

Setting up a appraisal system
There are four key elements in a good appraisal system:
1.

Set objectives - decide what you want from employees and agree these objectives
with them. If appropriate, set timescales for achieving them.

2.

Manage performance - give your employees the tools, resources and training
they need to perform well. If appropriate, set timescales for achieving objectives.

3.

Carry out the appraisal - monitor and assess your employees' performance,
discuss those assessments with them and agree on future objectives.

4.

Provide rewards/remedies - consider pay awards and/or promotion based on the

appraisal and decide how to tackle poor performance. However, there can be dangers
as well as benefits of linking rewards to performance.

How often should appraisals happen?

Many businesses carry out an appraisal after a set period for new employees or those who
have changed jobs within the company. After that, appraisals once or twice a year may be
enough.

Get it right from the start

A performance system will work only if you plan and implement it properly. Consider the
following points:

Make sure that you know what an employee's job involves. Written job
descriptions, conducting job evaluations, or analysing and grading jobs within your
company, might be useful.

Try to keep the appraisal system simple as this will save you time and money.

Design appraisal forms so that results are presented in writing in a standard

format.

Make sure all managers are committed to the system.

Discuss what is proposed with employees, or unions if appropriate, before you

implement an appraisal system.

If you have an information and consultation (I&C) agreement in place, you have a
duty to inform and consult employees or their representatives on - among other things
- substantial changes to work, organisation or contractual relations. This means that,
under the new agreement, you may have to inform and consult on the introduction of
a new appraisal system.

Once your performance system is in place, tell your employees about it in writing.
Include information about the appraisal system in any new starter information. See our
guide on getting new workers started.

Appraisal System
Appraisal system is designed to resolve most of the known difficulties and to facilitate
responsible and professional cooperation between ship and shore. It is also adapted so as
to facilitate fair, objective, consistent and balanced appraisals.
The system consists of appraisal forms and an instruction booklet. Each appraisal form
has space for relevant personal data, space for the appraisers written explanations or
other comments, comments about sobriety as well as 24 headings for appraisal. The
appraisal form can be individualized and adapted to any shipowners organizational
needs. It can be e-mailed in a coded form and also be supplied digitally.
The instruction booklet contains guidelines for scoring and definitions of the headings
and intended for the appraiser.

Some Examples from the Appraisal Form

The sobriety scale is used to establish an individuals drinking habits and has two
alternatives:
1. Acceptable and compliant with company policy.
2. Not acceptable and incompatible with company policy.

The other 24 headings are selected to illustrate personal traits, interpersonal style,
professional capacities, safety-mindedness, attitudes and knowledge.

The headings are:

Practical Skills
Planning
Safety Awareness
Judgement
Loyalty
Cooperation
Intercultural Skills
Leadership Skills
Energy
Initiative
Teachability
Self-Knowledge
Theoretical Knowledge
Sense of Order
Seriousness
Vigilance

Reliability
Sociability
Communicative Skills
Stress Tolerance
Motivation
Maturity
Receptivity
Personal Appearance
Each heading is followed by a 9-degree scale, the so-called Stanine Scale, chosen
because of its reference to the Normal Probability Distribution Scale.

The Normal Probability Distribution Scale

The Normal Probability Distribution Scale is widely used and scientifically accepted as a
tool in measuring human capacities. The scale is universal and used in the appraisal
system as a guidance for the appraiser. The scale and how it is calculated needs some

The Normal Probability Distribution Scale (the bell-shaped Gaussian curve) with the
normal distribution percentage and the corresponding 9-degree Stanine Scale
If any single human capacity were measured for a sufficient number of people, the
individuals would be distributed according to a Normal Probability Distribution Scale.
This "bell-shaped" or Gaussian curve (also displayed on top of the appraisal form)
indicates that most people will wind up in the middle where we find the level of the
measured capacity that might be called "average", whereas fewer people will end up in
the extremes at either end.

The configuration of the curve is equally valid when, for example, measuring the weight
of 30-year-old males as when measuring stress resistance or sociability among seafarers.
Most people have average or "normal" values and tend to cluster in the middle and those
who deviate tend to be fewer the further out at either end they are placed. According to
the scale, 54% of all people will fall into categories 4, 5 or 6, for almost anything
measured.
The Normal Distribution Probability Scale is used in the Marine Profile Appraisal System
as a calibration and guidance for the appraiser. The scale indicates what is common,
average and what is to be expected, as well as what is uncommonly bad or good in
comparison to an "average" professional of the same kind. If an appraiser wants to give a
9 to a particular individual, the appraiser is made aware that he is thereby placing the
appraised person among the best 4% in that category.

Standardized Appraisal
Using the Normal Distribution Probability Scale as a base for the scoring system also
makes it possible to compile appraisal forms from the same appraiser and to identify and
give feedback about his/her general scoring principles.
After a few appraisals it is possible to establish whether a particular appraiser is generally
too low or too high in his scoring. This could indicate either too positive or too negative
an attitude on the part of the appraiser. (An alternative explanation would of course
indicate on the positive end, that the appraiser has had the fortune to consistently manage
people who overperform or, in the negative end, the misfortune to repeatedly manage
those who underperform.) The appraisal system is therefore designed to facilitate
standardised and disciplined scoring practices and to safeguard against biased or
changing individual scoring principles.

Selected Indexes
The appraisal system is furthermore designed to allow for compilation of selected scores.
This makes it possible to create a number of indexes or "shortcuts" which highlight
important personal capacities. By combining scores with coefficients, it is possible to
compile a Professional Capacity Index, Leadership Capacity Index, Social Capacity
Index and Development Capacity Index.
The Development Capacity Index, for example, is calculated by combining such items as
Receptivity, Teachability, Self-Knowledge, Motivation and Professional Seriousness.
The Instruction Booklet
The Instruction Booklet covers explanations of each heading, what to look for, how to
identify a certain trait and how to score. Low, average and high scores are defined, as is
the Normal Distribution Probability Scale.
To give the reader an idea about how the appraiser is guided, here are some extracts from
the booklet:
Scoring Principles
Average score
An average score (5) means a sufficient and approved standard in level with reasonable
expectations towards a professional person according to his/her position and age. Average
is by definition fairly acceptable but implies that the appraised person does not stand out
in any particular sense. An average score means that the person or capacity is suitable for
and in line with expectations for the position in question.

About 20 percent of any appraised category of professionals have and should be given an
average score (5).
High score
A high score (above 5) means that the individual is better than the sufficient and approved
standard in a certain capacity in comparison with reasonable expectations towards a
professional person according to the position and age in question. High scores stand out
positively and are signs of superior achievement.
Very high score
A very high score denotes sustained outstanding performance or capacity, which is
clearly above what can be expected.
Only about 4 percent of any appraised category of professionals has, and should be given,
the highest score.
Low score
A low score (lower than 5) means a standard less than sufficient and approved according
to the position and age in question. Low score is by definition not positive. Low score
means that the individual is less than fully acceptable and needs improvement in the
particular area. A low score for a certain capacity means that the outcome or result causes
minor disturbances or need for corrective measures or monitoring now and then.

Very low score

A very low score denotes a marked shortcoming and an evident disadvantage which
causes frequent problems either for the individual him-/herself of for others around
him/her. Lower scoring than average is a result of various degrees of substandard quality
while very low is inadequate and constitutes a rare but serious shortcoming.
Only about 4 percent of any appraised category of professionals has, and should be given,
the lowest score.
Planning
Planning denotes an individuals capacity and willingness to plan his activities and to act
and work methodically, efficiently, structured and accurately. Planning also implies
capacity and willingness for preparation, economical efficiency, good timing as well as
anticipation and readiness for alternative measures. Capacity and willingness for planning
is an aid for controlling situations and avoiding surprising events. Planning is not
contradictory to flexibility.
A high capacity and willingness to Plan reveals itself in good anticipation, lack of
problems, lack of surprises, good time-keeping, lack of mistakes and ambiguity, good
administrative order, high safety margins, efficient utilisation of personnel and other
resources and as cost efficiency.
A low capacity or low willingness for Planning reveals itself in problems with
preparations, efficiency, time-keeping, safety, administrative matters, keeping of
promises, keeping costs, and utilisation of resources. Lack of planning also reveals itself
as a need for supervision and
checking by others and as problems with superiors and peers.

Sense of Order
Sense of Order denotes an individuals capacity for tidiness, order and thoroughness in
his work. It implies how well an individual accepts and carries out his duties. It has to do
with cleanliness, finding and returning tools and other equipment, the style of performing
administrative tasks, handling of money, maintenance, checking of equipment, giving
instructions, reporting back and making preparations.

A high Sense of Order reveals itself in an absence of mistakes, very high acceptance of
own duties and cleanliness. Individuals with a high sense of order often discover and
correct others mistakes and cover up for others shortcomings. They do not need
supervision or corrections and they are punctual. Orderly individuals have a low
tolerance of messiness and dirt.
A low Sense of Order shows in a high degree of mistakes, forgetfulness, incomplete
performance of tasks, high tolerance of dirty and messy situations, carelessness,
negligence, sloppiness or disorder. Individuals with a low sense of order often need
supervision and correction. They often try to cover up or blame others for their own
negligence and mistakes and are good at finding excuses. Others often complain and have
to cover up for them.
Safety Awareness
Safety Awareness denotes an individuals level of respect for safety issues and knowledge
about and adherence to safety regulations, instructions and good practice. An individuals
day-to-day perception of risks, exposure to and handling of risks as well as consequences
also denotes the level of safety awareness. So do the assessment of own resources vis-vis situational demands, participation, level of involvement, seriousness and accuracy in
exercises and drills, overall situational awareness, precautions, preventive measures and
avoidance of uncertainty.

High Safety Awareness is denoted by interest and knowledge in safety matters and strict
adherence to rules and instructions, and by a keen interest and high involvement in
exercises and drills, a high perception of situational demands, a readiness to involve
superiors at an early stage in ambiguous, uncertain, difficult and uncontrollable
situations, an overall readiness to involve others, to take advice and to work with high
safety margins. An individual with high Safety Awareness has respect for nature, the
unknown, dangerous forces, including gases and liquids and is particular in instructing
and monitoring others and in preparations and precautions. Such individuals are also
ready to spontaneously intervene and to instruct or correct others.

Low Safety Awareness is denoted by a lack of knowledge or adherence to instructions

and regulations, too high a perception of own resources or bad assessment of situational
demands. Repetitive occurrence of accidental situations and loss of situational control
may indicate low Safety Awareness as well as complacent behaviour, indifferent attitudes
or poor assessment
of consequences. Individuals with low Safety Awareness tend to have faith in others, in
chance or in luck, and place responsibilities elsewhere. They may also be reluctant to
engage themselves in exercises and drills. Another sign is a tendency to verbally diminish
risks, to overestimate their own experience and a need to impress others.
Vigilance
Vigilance has to do with perception, focus and concentration. The level of sharpsightedness, alertness, watchfulness and the capacity to read and understand a situation
are important characteristics of Vigilance. The quality of attitudes, i.e. a critical attitude,
is also often significant. Vigilance also appears in the ability for simultaneous perception,
monitoring and the capacity to detect new information.
A high level of Vigilance is evident when an individual is concentrated, focused, not
easily disturbed, very alert and is active in seeking and checking information from

available sources. A mild level of suspiciousness and a somewhat critical and sharp-eyed
attitude are also characteristic. Individuals with a high level of Vigilance usually have
things under control, possess low tolerance for ambiguity and are efficient in reading a
situation.
A low level of Vigilance is apparent when an individual is inattentive, fails to detect new
information and fails to seek relevant information. It is also evident in situations when an
individual is taken by surprise, acts late, lacks sufficient time and misses information.
People with a low level of Vigilance also tend to forget things, fail to detect mistakes and
might also be absent-minded, easily distraught, easily fatigued or easily influenced.
Loyalty
Loyalty shows in an individuals attitude towards the shipowner, the management, the
ship, the organization and also towards other individuals onboard. Loyalty often shows in
how an individual handles resources, cares about equipment, executes his duties and is
able to embrace and stick to social norms, as well as how an individual identifies himself
as being a company person or not.
High level of Loyalty is evident when an individual feels and behaves as a representative
of the shipowner or the company, when a person places him-/herself in a broader context
and is willing to make some individual sacrifices or go out of his/her way for the benefit
of the totality and to put the organization before him-/herself. High loyalty also appears
as readiness to carry out orders and to put things right, to care for equipment and as
respect and readiness to stand up for policies and the shipowner. An individual with a
high level of loyalty has durable and stable norms.
Low level of Loyalty shows when an individual places himself and his individual
interests first, when initiative is taken reluctantly, and when an individual readily accuses
others or the company for various reasons. It also shows when equipment is not cared for
or when an individual is indifferent to costs and savings or others comfort and well
being, and when an individual easily breaks rules, policies and social norms. An
individual with a low level of

Loyalty has weak standards and norms or has norms that are unstable and easily modified
depending on the situational context or individual aims.
The Training
When appraisers are requested to give their professional judgements, their appraisals
might be somewhat subjectively coloured and influenced by the quality of their
relationship with the person being appraised. A dose of subjectivity is probably inevitable
but can be kept under control and be counteracted by training. Therefore the personnel
responsible for making andreceiving appraisals shall have basic training in how to assess
important character and behavioural traits, how to use the appraisal form and how to
communicate and give feedback to the appraisee.

This training is preferably scheduled during an ordinary senior officers seminar and
takes less than a day. While onboard, the appraisers should be able to use the appraisal
forms according to the instructions in the instruction booklet and give feedback in line
with their training

Alternative performance reviews

The best performance reviews let managers and employees communicate -- share ideas,
opinions, and information. Unfortunately, most traditional reviews put managers into the
position of uncomfortable judges, ostensibly telling employees how their work either fit
the bill -- or didn't. Possibly because of this, most traditional reviews are no better than
the manager's off-the-cuff judgements, and some may be illegal.
Because of these problems, new types of reviews are coming into play. Most require that
evaluations be done not for raises, promotions, or bonusses, but for growth, development,
and communication. The most important aspect in every case is communication between
the employee and other people, instead of one-way communication, for higher
performance.

Problems with traditional systems

Michael Rigg, of Fluor Daniel, (quoted in Industrial Engineering, August 1992) said that
traditional evaluation methods damage teamwork because of the focus on supervisors
evaluating individuals; they may "strip people of their sense of control." Rigg also said
that evaluations should provide feedback to individuals so problems may be corrected
and higher performance can be rewarded.
In traditional reviews, the manager tells the employee how they measure up, assuming
that they both perceive the employee's job the same way. New forms of review may help
managers, employees, peers, and customers to gain a mutual understanding of what they
mean by "good performance." This may improve the work of everyone involved, while
clearing up disputes.
Most managers tend to rate their employees a bit higher than they would normally
deserve, leading some companies to use ranking systems - but ranking has its own
problems.
Generally, traditional reviews are good at sniffing out excellent and very poor employees,
but don't differentiate well among the vast middle ground. This is a problem when
reviews are used as the basis for salary adjustments and bonuses, unless only people at
the extremes are treated differently (e.g. everyone gets a 4% bonus except very poor
employees, who get nothing, and excellent employees, who get 6%).
With traditional reviews, employees are rated by a single person, who may be biased or
have an incomplete view of their work. Alternative methods provide a more balanced
view.
Other problems with traditional evaluation systems include rater carelessness; use of
appraisals for political or personal reasons; the halo effect, where an employee's strengths
in one area are spread to other areas; and leniency and strictness errors, where all
employees are rated either high or low. Newer systems avoid most of these problems.

Peer Reviews
A peer review program may be designed by a task force of three to six workers, to set the
goals, benefits, and objectives of the program; design a criteria-based performance
evaluation system; and conduct a pilot program (Training and Development, June 1992).
During the pilot program, people may be encouraged to provide feedback on the system
itself. Training and support should be available. Pilot programs are very important for any
new system, because they let people iron out the bugs without letting the program lose
credibility among other workers.
Peer reviews often have a high level of worker acceptance and involvement; they tend to
be stable, task-relevant, and accurate. By helping peers to understand each others' work
and by airing grievances in a non-threatening manner, peer reviews may also help people
to get along better. For the organization, this means higher performance. For the people,
this means a better place to work and less frustration; it may also help people to
concentrate less on politics or working around people, and to spend more time on their
work (or to put in less overtime).
Peer reviews may work best if all parties know that the reviews will notbe used for
setting pay, promotion possibilities, or disciplinary actions. However, a peer review
system with the power to give promotions, raises, or disciplinary actions might be
workable in some businesses, if the employees think it's a good idea.
Self-Reviews
Self-reviews are based on the idea that employees are most familiar with their work, and
that their involvement is essential. Employees rate themselves on a number of criteria,
usually with a formal survey form, and suggest improvements. They help to clarify their
own goals, and expose areas of weakness so they may be worked on. The manager may
be left out of the process, although an exchange of views between the worker and
manager may help their relationship, and boost the employee's own understanding.

Herbert H. Meyer (Academy of Management Executive, 1991) said that self-review

changes the role of the manager to counselor, rather than judge - a role from which the
manager can do more to support people. He wrote that self-review "...enhances the
subordinate's dignity and self respect." Involving the employee as an equal in the review
process is more likely (according to Meyer) to increase commitment to action plans,
making the entire process both more satisfying and more productive.
Self-reviews tend to have low halo error and result in little paperwork for managers.
However, people may not see their own deficiencies as others do, so self-reviews should
be used alongside other methods.
Upward Assessments
Upward assessments are used in a large number of organizations, running from Honda
and Chrysler to Motorola and NASA. These programs tend to be somewhat shocking to
managers at first, but, if designed well, they can result in strong improvements. The rated
managers become the program's biggest fans. Amoco's Bill Clover described this as the
"SARAH reaction: Shock, Anger, Rejection, Acceptance, Help" (Training, March 1993).
Most managers do not realize that what they say sometimes does not match up to what
they do. Upward assessments can help managers to keep their words and actions
consistent, while showing areas where managers can improve their performance. This can
greatly increase their credibility.
The process is more important than the survey form; it can't be successful unless both
raters and managers "open up." Managers must be helped to accept and deal with the
results of the assessment. Outside consultants may have experience, needed skills, and an
"objective outsider" image, so people can open up to them without fear of reprisal. If cost
is a major issue, it may be possible to hire an intern from a local doctoral program in
organizational or I/O psychology.

Upward assessments may only be run with managers who have three or more direct
reports. Someone other than the manager and ratees must assemble the completed survey
forms into a report for the manager; some survey publishers do this.
Many consultants recommend using upward assessments at least every two years. This
helps managers to check their progress and refreshes the findings of the past survey in
their minds; however, it doesn't make the cost unbearable. After the first assessment, the
program may be run in-house.
360 Degree Feedback (360 Degree Review)
360 degree feedback is the most comprehensive and costly type of appraisal. It includes
self ratings, peer review, and upward assessments; feedback is sought from everyone. It
gives people a chance to know how they are seen by others; to see their skills and style;
and may improve communications between people.
360 degree feedback helps by bringing out every aspect of an employee's life.
Cooperation with people outside their department, helpfulness towards customers and
vendors, etc. may not be rewarded by other types of appraisal. This system also helps
those who have conflicts with their manager.
360 degree feedback generally has high employee involvement and credibility; may have
the strongest impact on behavior and performance; and may greatly increase
communication and shared goals. It provides people with a good all-around perspective.
The Managing Individual Effectiveness (MIE) system at Bellcore is used for selfdevelopment. It gets feedback from peers, managers, subordinates, and the ratees
themselves. According to a Bellcore representative, the results are better working
relations; better communications; more information on management performance and
style; increased effectiveness and productivity of individuals and the organization as a
whole; knowledge of training needs; a better grasp of organizational priorities; and
greater employee input in designing self-development plans.

The Bellcore rep noted that, for success, expectations must be communicated clearly;
employees must be involved early; resources must be dedicated to the process, including
top management's time; confidentiality must be assured; and the organization, especially
top management, must be committed to the program. This system requires a third party,
such as a consultant, to begin the process, which may take months to start up.
360 degree feedback may be given directly to the employees, who have the option of
discussing them with their managers; or it may be given to the managers for use in a
feedback meeting. Whichever method is chosen, training for the managers and ratees is
necessary.
Some off-the-shelf survey forms include job analysis techniques designed to form KSAs
(knowledge, skills, and abilities required by a job) based on interviews, focus groups, and
questionnaires. These forms may help to kill two birds with one stone, by helping to
create valid job descriptions and then providing feedback on performance. The KSAs
required by a job may be determined using traditional job-analysis techniques;
competencies required by the job; strategic goals of the organization; development
theory; or personality theory (e.g. communication or leadership styles).
Recommendations
Most businesses would benefit from better communications and management. A good
review system could help to improve communications, while aiding people to increase
their own effectiveness and to clarify their own jobs and responsibilities. An innovative
system could not only increase the performance of the staff, but also help them to work
together, with common goals and fewer obstacles. It could help people to comment on
others' performance and perceived problems more freely.
Even for a small business, one with a single owner or manager and three or more
employees, 360 degree feedback, upward appraisals, and peer appraisals may be helpful.
They can bring out things which are normally never spoken, reducing tension, improving
communications, and most likely raising the employees' (or the manager's) performance
considerably.

Involve your employees in the process. If they design the new performance appraisal
system, they may be more dedicated to it--and both you and your employees can reap the
benefits.
What Toolpack Consulting can do
We can help you with your needs analysis and evaluations of current systems, including
brief, targeted, cost-effective surveys to find strengths and weaknesses. We also have a
Web-based peer-review (or upwards assessment) method which is custom-designed for
each client. We can offer an unusually reasonable price for smaller groups because the
setup costs are fairly low.

On 29 May 1997, Beijing Enterprises Holdings Limited ("Beijing Enterprises") was

formed upon eight units of premium assets in Beijing, and listed successfully in Hong
Kong. Beijing Enterprises became the ideal example for entities in Beijing to tap into
international capital market, and had opened up a new direction and had provided a new
channel for financing for the economic development of Beijing

Since its listing, with the enthusiasm and support of the Beijing Municipal Government
and various sectors in Hong Kong, Beijing Enterprises has successfully adhered to the
mission of maximizing shareholders' interests. Leveraging on Beijing's edges and through

the convergence of both the resources in Beijing and Hong Kong, we insist in a proactive
and steady direction of operation as well as prudent and focused investment strategies.
The scale of its businesses and assets are gradually expanding with improving operating
results. Our strength as a whole enhanced significantly.
Since 2004, Beijing Enterprises actively traces the changes of market orientation, reform
in the state-owned assets administration system, and the progress of market-oriented
operations for public utilities. We have established the market positioning of "an
integrated public utilities company with municipal energy services as the core business
segment" and created the overall strategic mission as "the major entity and the investment
and financing platform under the Beijing Municipal Government for the operation and
administration of infrastructure and public utilities". We have initiated the joint
reorganization of Beijing Gas Group, and divested non-core business segments at an
extensive scale. Through more than three years of uninterrupted dedication and devotion,

Beijing Enterprises preliminarily achieved the strategic transformation from a

conglomerate to a professional public utilities company.
The consolidated net assets of Beijing Enterprises after the transformation was
approximately HK$ 16.5 billion, which was increased by 5.7 times from that in 1997.
Our core business segments, which are focused in public utilities, cover municipal gas,
expressway and municipal water operations, and accounts for 62.3% of the total assets.
At the same time, we also own the consumer business segment, which is mainly Yanjing
Beer, and the high tech business segment.
By leveraging on the excellent profitability and growth prospects, experiences in
municipal gas administration and huge influence of Beijing Gas Group Company Ltd. in
the industry, Beijing Enterprises preliminarily established its position and influence in the
overall infrastructure and public utilities industry. The standard in management team was
effectively lifted in the municipal public utilities aspect. This in turn facilitated Beijing
Enterprises to benefit from the rapid development of municipal construction in Beijing.
We will explore pipeline gas market outside Beijing at a time appropriate, so as to derive
new driving force for growth successively.
Since its listing, Beijing Enterprises has persistently upheld the mission "booming in
Hong Kong with a foothold in Beijing". We have devoted to facilitate the building of
economy in Beijing and booming in Hong Kong. Since listing, more than RMB 5 billion
were raised overseas for the economic development and municipal construction of
Beijing. More than HK$6 billion were invested in Beijing, and cumulative investment in
Mainland amounted to RMB 18 billion. We have introduced capital, technologies and
management expertise for the economic construction of Beijing Municipality, and
performed the essential bridge and hub functions for the economic and trade cooperation
on the advantageous resources between Beijing and Hong Kong.

Executive Directors
WANG Dong (Chairman) is the Chairman of the Company and Beijing
Enterprises Group Company Limited. Mr. Wang graduated from
Mining Mechanical Engineering Faculty of Beijing Institute of Iron and
Steel in 1986, holds a mater degree in Public Administration from
People's University of China and the title of Senior Engineer. Mr. Wang has held various
senior positions in many sizeable state-owned enterprises. From 2001 to 2008, Mr. Wang
served as the Deputy General Manager, subsequently the Executive Deputy General
Manager and finally the Chairman of BBMG Group Company Limited. From 2008 to
2009, he served as Head of the State-owned Assets Supervision and Administration
Commission of People's Government of Beijing Municipality. Mr. Wang has extensive
experience in management, finance and state-owned assets supervision.
Mr. ZHANG Honghai is the Vice Chairman and Chief Executive Officer of the
Company. Mr. Zhang also serves as a Director of Beijing Enterprises Group Company
Limited, an Executive Director of Beijing Development (Hong Kong)
Limited (stock code: 154), the Chairman and Executive Director of
China Information Technology Development Limited (stock code:
8178) and Beijing Enterprises Water Group Limited (stock code: 371).
Mr. Zhang graduated from Peking University in 1982 and
subsequently completed a postgraduate programme at the International
Business School of Hunan University and was awarded a master degree and the title of
Senior Economist. Mr. Zhang also obtained an EMBA degree from Guanghua School of
Management, Peking University. Mr.
Zhang has worked for the Beijing Municipal Government for many years. Prior to joining
the Company, Mr. Zhang was the director of the Foreign Affairs Office of the People's
Government of Beijing Municipality and Hong Kong and Macao Affairs Office of the

People's Government of Beijing Municipality. He also served as Vice President of the

Beijing Chinese Overseas Friendship Association. Mr. Zhang initially worked as Deputy
General Manager and was then promoted to Vice Chairman and General Manager of
Beijing International Trust Investment Limited during the period from 1990 to 1998, and
has accumulated extensive experience in corporate management. Mr. Zhang joined the
Group in December 2003Wang joined the Group in August 2009.

.
LI Fucheng is the Vice Chairman of the Company. Since 1983, he has held
the posts of Deputy Secretary and Secretary of the Yanjing Brewing
Factory, and then the Chairman and General Manager of the Yanjing
Group. Mr. Li has many years of experience in the brewery industry. Mr.
Li joined the Group in April 1997.

BAI Jinrong is the Vice Chairman of the Company. He is also the Vice
Board Chairman and General Manager of Beijing Enterprises Group
Company Limited. Mr. Bai graduated from Beijing Normal University in
1985 and had worked as the Deputy Director and Director of the Policy
Research Office of Beijing Chemical Industry Group, the Deputy
Director of the Beijing Economic Structure Reforms Committee, the Executive Director
and Executive Vice President of the Company, the Deputy Director of Beijing
Stateowned Assets Supervision and Administration Commission. Mr. Bai has many years
of experience in economics, finance and enterprise management. Mr. Bai rejoined the
Group in June 2005.

ZHOU Si is the Vice Chairman of the Company. He is also the Director of

Beijing Enterprises Group Company Limited and the Chairman of Beijing
Gas Group Co., Ltd. Mr. Zhou graduated from Beijing Normal University
in 1978 and Tsinghua University in 1998. From 1984 to 2003, he was the
Chief Officer of the General Planning Division and subsequently the Head
and Deputy Director of the Planning Division of Beijing Municipal
Management Commission. He has extensive experience in economics, finance and
enterprise management. Mr. Zhou joined the Group in June 2005.

E Meng is the Executive Director and Executive Vice President of the

Company. Mr. E also serves as the Chief Financial Officer of Beijing
Enterprises Group Company Limited, the Chairman of Beijing
Development (Hong Kong) Limited (stock code: 154), the Executive
Director of Beijing Enterprises Water Group Limited (stock code:
371), and an Independent Non-executive Director of JLF Investment
Company Limited (stock code: 472). Mr. E graduated from China Science and
Technology University with a master's degree in engineering. He is a PRC senior
accountant with the qualifications of PRC certified accountant, asset appraiser, certified
real estate appraiser and tax appraiser. From 1988 to 1997, he was the Deputy Director of
Beijing New Technology Development Zone and concurrently acting as the Director of
the Department of Financial Auditing, the General Manager of Investment Operation
Company, the chief accountant of Beijing Tianping Accounting Firm and the Deputy
Director of the State-owned Assets Management Office of Beijing Haidian District. Mr. E
has extensive experience in economics, finance and enterprise management. Mr. E joined
the Group in November 1997.

LIU Kai is the Executive Director and Vice President of the Company. Mr. Liu also
serves as an Executive Director of Beijing Enterprises Water Group Limited (stock code:

371). Mr. Liu is responsible for the general management of Beijing

Enterprises Holdings Investment Management Co., Ltd. He graduated
from the mechanical engineering faculty of Tsinghua University in 1979,
and later obtained postgraduate qualification in domestic economics,
management and legal professional studies from the State
Administration Institute. In 2007, Mr. Liu graduated from the EMBA
program of Tsinghua Universtiy. Prior to joining the Company, Mr. Liu served as a Senior
Executive of the Beijing Transportation Bureau and the Beijing Transportation
Corporation. Mr. Liu has many years of experience in economics and management. Mr.
Liu joined the Group in January 2001.

GUO Pujin is the Executive Director of the Company. He graduated

from the political education faculty of Capital Normal University in
1976 and later finished his postgraduate studies at Capital Trade and
Economics University. Mr. Guo was previously the Chief Executive
Officer of Da Xing District of Beijing and is currently the Chairman of
Beijing Capital Expressway Development Co., Ltd.. Mr. Guo has many years of
experience in government affairs and corporate management in China. Mr. Guo joined
the Group in April 2004.

LEI Zhengang, a PRC senior accountant, is the Executive Director of the

Company and also the Director and Vice General Manager of Beijing
Enterprises Group Company Limited. Mr. Lei obtained a postgraduate
qualification from the Capital University of Economics and Business and
has extensive experience of corporate finance and management. Mr. Lei
joined the Group in June 2006.

JIANG Xinhao is the Executive Director and Vice President of the Company. Mr. Jiang
also serves as the Chief Operational Officer of Beijing Enterprises Group Company
Limited and an Executive Director of Beijing Enterprises Water Group
Limited (stock code: 371). Mr. Jiang graduated from Fudan University

in

1987 with a bachelor's degree in law, and then in 1992 with a master's
degree in law. Mr. Jiang was a lecturer at Peking University between
1992 and 1994. From 1995 to 1997, Mr. Jiang was a Deputy General
Manager of Jingtai Finance Company in Hong Kong, and subsequently a Director and
Vice President of BHL Industrial Investment Company. From 1997 to February 2005, Mr.
Jiang was a Director and the Chief Executive Officer of Tramford International Limited,
a public company listed on Nasdaq. Mr. Jiang was a Manager of the investment
development department of Beijing Holdings Limited and a General Manager of Beijing
BHL

Since its listing, the Board of Directors and the Management endeavour to enhance our
corporate governance standard in accordance with the rules and regulations of Hong
Kong and international capital market. The administration structure was timely reengineered according to the change in business composition. We have optimized
management process flow, improved constitution system, standardized governance
structure and enhanced corporate governance standard. The building of balance score
card administration system was initiated and implemented in full force at the headquarter
and fellow subsidiaries during 2006. We have effectively enhanced strategic management
standards and strategic execution capabilities.
The Board of Directors has always emphasized its own structure. With our business
development, the composition and overall qualities of directors were further optimized.

The governance capabilities, professionalism and international aspect of the Board of

Directors were further enhanced.

MILSTONE

28 Jan BEHL announced it acquisition of Shang Hua Holdings Limited

03
Messrs. Lau Hon Chuen Ambrose, Lee Tung Hai Leo and Wang Xianzhang
Mar resigned, while Mr. Lam Hoi Ham was appointed as Independent Non-executive
Director.
07
Disposal of equity interests in Beijing Shunxing Wine Co., Ltd. and Beijing
Apr Fengshou Wine Co., Ltd. was complete.
08
2007 Annual Results were announced
Apr
11
Beijing Gas Group announced its investment in Inner Mongolia Datang
Apr International Keqi Coal-based Gas Company Limited.
06
Shang Hua Holdings Limited was renamed as Beijing Enterprises Water Group
May Limited
02 Jul Mr. Fu Tingmei was appointed as Independent Non-executive Director
02 Jul Yanjing Brewery's A shares private placing was approved by China Securities
Regulatory Commission
15 Jul Beijing Enterprises Water Group Limited announced its acquisition of Z.K.C.
Environmental Group Co., Ltd.
08
BEHL announced an estimated improvement in 2008 Interim Results
Aug
17
2008 Interim Results were announced.
Sep
21
Beijing Gas Group announced its acquisition of Natural Gas Pipelines in
Nov (Yizhuang) District of Beijing City Economic-technical Development Zone

Back to Top
05 Jan Mr. Zheng Wanhe resigned as executive director
01
Adjustment Mechanism for sales price imposed on Beijing residential users and
Apr upstream natural gas price was implemented.
03
2006 Annual Results were announced.
Apr
02
Middle and senior management formed an elite team to walk across Go Be Desert
May in an activity called "Follow Xuan Zhuang's Footprints"
10
IC cards of Smart Card System on public transport and subway were wildly used
May in Beijing.
17
Extraordinary General Meeting was held to approve the very substantial
May acquisition of Beijing Gas Group.
25
A ceremony was held in Beijing to celebrate BEHL's 10th anniversary of listing.
May
29
A ceremony was held in Hong Kong to celebrate BEHL's 10th anniversary of
May listing.
29
Mr. Zhao Changshan resigned, while Mr. Jiang Xinhao and Mr. Tam Chun Fai
May were appointed as executive directos.
21 JunAnnual General Meeting was held.
29 JunAcquisition of Beijing Gas Group was complete.
02
Agreement in Plant A of Beijing No. 10 Water Plant Treatment Plant was signed.
Aug
02
Mr. Zhou Si was appointed as Vice Chairman of the board of director; Mr. Li
Aug Yongcheng was appointed as Vice President.
16
Disposal of equity interest in Beijing Enterprises Ever Source Limited was
Aug complete
18
A letter of intent to construct expressway surrounding Beijing Capital Airport was
Sep signed with Beijing City Capital Highway Development Group Co., Ltd.
18
Interim Results were announced
Sep
20
Being the largest capitalization activity since its listing 10 years ago, BEHL issued
Sep 100 million new shares to raise HK$3.71 billion
28
A Foundation Stone Laying Ceremony was held for Haikou Baishamen Sewage
Dec Treatment Plant Phase II.
Back to Top
19 Jan On 19 January, the Year End Review Meeting of 2005 and Work Planning
Meeting for 2006 were convened.
25 Jan On 25 January, Beijing Enterprises Research Foundation was established.
27
On 27 February, 33,000,000 H Shares of Biosino Bio-Technology and Science
Feb Incorporation were placed by Beijing Enterprises and were successfully listed on
GEM of Hong Kong Stock Exchange.

23
Mar
27
Mar
31
Mar
31
Mar
11
Apr
10
May
29
May

On 23 March, more than 50 staff, including those from the subsidiaries,

participated the trail walk from Long Qing Xia to Yu Du Shan.
On 27 March, Beijing Yanjing Beer Company Limited issued indicative
announcement on its share reform plan. The shares and convertible bonds of
Yanjing Beer suspended trading from 27 March 2006.
On 31 March, Yanjing Beer published its share reform plan.
On 31 March, an agreement for the transfer of equity interests in Wangfujing
Department Store was entered into.
On 11 April, Beijing Enterprises published 2005 Annual Results in Hong Kong.

On 10 May, three key projects for Transportation Smart Card duly commenced
operation.
On 29 May, the function to celebrate the ninth anniversary of Beijing Enterprises
and a meeting of Beijing Enterprises Research Foundation was held at Changan
Social Club in Beijing.
27 JunOn 27 June, Jiao Changshan and Lei Zhen Gang were appointed by the Board of
Directors as the Executive Directors. Meanwhile, Guo Yingming resigned as the
Executive Director.
13 Jul On 13 July, the Review Meeting for the first half of 2006 and management
experience exchange seminar of Beijing Enterprises Holdings Limited were
convened at Yanjing Xuelu Company in Baotou.
16 Jul On 16 July, Capital Airport Expressway commenced overhaul of the road surface.
19
On 19 August, more than 40 staff from both Beijing and Hong Kong went to
Aug Guizhou and participated in cultural exchange activities.
01
On 1 September, after several rounds of negotiation with foreign investors,
Sep Beikang-Jingzhou Joint Venture and Mitsubishi - Anglian Joint Venture, the party
originally awarded with the tender of Beijing Water No. 10 Plant, entered into the
Master Restructuring Agreement and related agreements.
16
On 16 September, more than 50 staffs from the holding company and the
Sep subsidiaries participated outward bound.
22
On 22 November, a corporate evaluation seminar was held by Beijing Enterprises
Nov Holdings Limited in Beijing.
Back to Top
08 Jan On 8 January, Beijing Holdings (Group) Limited and Beijing Gas Group formed a
holding group in Beijing
10 Jan On 10 January, the agreement for the transfer of equity interests in Jianguo Hotel
was entered into.
12
On 12 April, Beijing Enterprises published 2004 Annual Results in Hong Kong.
Apr
23
On 23 April, the address of the registered office of the Company was changed to
Apr Room 4301, 43rd Floor, Central Plaza, 18 Harbour Road, Wanchai, Hong Kong.
27
On 27 May, a cocktail to celebrate the eighth anniversary of the listing was held in

May
29
May
30
May

Beijing.
On 29 May, a cocktail to celebrate the eighth anniversary of the listing was held at
Ritz Carlton in Hong Kong.
On 30 May, the first meeting of the Executive Board of Directors of Beijing
Enterprises Holdings Limited in 2005 was convened at Ritz Carlton in Hong
Kong.
17 JunOn 17 June, the Board of Directors appointed Mr. Bai Jingrong as an Executive
Director and the Deputy Chairman. Mr. Zhou Xi was also appointed as an
Executive Director, and Mr. E Ming, a vice president of the Company, was
transferred to become an Executive Director and Vice President.
06
On 6 September, the Company entered into an agreement for the transfer of equity
Sep interests in MAGLEV. The entire 63.75% stake in MAGLEV was transferred.
08
On 8 September, Beijing Enterprises published 2005 Interim Results in Hong
Sep Kong.
30
On 30 September, 40 million shares in Beijing Enterprises were placed by Beijing
Sep Holdings, and raised HK$512 million.
30
On 30 November, Beijing Holdings issued 60 million convertible bonds
Nov convertible into shares of Beijing Enterprises, and raised HK$917 million.
22
On 22 December, the second meeting for the Executive Board of Directors of
Dec Beijing Enterprises Holdings Limited in 2005 was convened at Plaza Conference
Centre, 35th Floor, Central Plaza in Hong Kong.
23
On 23 December, Mr. Li Man resigned as an Executive Director.
Dec
Back to Top
09 Jan On 9 January, Beijing Enterprises Holdings Limited and Siemens Company
Limited entered into an agreement for the disposal of 20% stake out of 40% stake
in Beijing International Switching Systems Company Limited.
29
On 29 March, the thirtieth meeting for the Executive Board of Directors of
Mar Beijing Enterprises Holdings Limited was held at Xiangshan Wofo Temple Hotel
in Beijing.
15
On 15 April, Beijing Enterprises published the 2003 Annual Results in Hong
Apr Kong.
20
On 20 April, Beijing Enterprises Holdings Limited acquired Xteam Software
Apr International Limited through Beijing Development (Hong Kong) Limited.
21
On 21 April, Fang Fang resigned as an independent non-executive director.
Apr
28
On 28 April, Wei Enhong and Bi Yuxi resigned as the Executive Directors.
Apr Meanwhile, Guo Pojin was appointed by the Board of Directors as an Executive
Director.
02 Jul On 2 July, Wu Jiesi and Robert A. Theleen were appointed as independent nonexecutive directors by the Board of Directors.
03
Between 3 and 4 August, the thirty-first meeting of the Executive Board of
Aug Directors of Beijing Enterprises Holdings Limited was held at the Hong Kong

to
04
Aug
07
Sep
03
Dec
29
Dec
29
Dec

Clubhouse of Bank of China.

On 7 September, Beijing Enterprises published 2004 Interim Results in Hong
Kong.
On 3 December, Beijing Enterprises Holdings Limited and Sanyuan Group and
Beijing Holdings Group entered into an agreement for the assignment of 55%
stake of Sanyuan Food held by Beijing Enterprises.
On 29 December, the thirty-two meeting of the Executive Board of Directors was
held by Beijing Enterprises Holdings Limited at Jianguo Hotel in Beijing.
On 29 December, Li Zhonggen and Bao Zhongye resigned as the Executive
Directors.
Back to Top

24
Mar
15
Apr
29
May

On 24 March, the twenty-sixth meeting for the Executive Board of Directors of

Beijing Enterprises Holdings Limited was convened at Jianguo Hotel in Beijing.
On 15 April, Beijing Enterprises published 2002 Annual Results in Hong Kong.

On 29 May, the twenty-seventh meeting for the Executive Board of Directors of

Beijing Enterprises Holdings Limited was convened at Beijing Yanjing Beer
Company Limited.
19
On 19 May, Hu Zhaoguang resigned as the Chairman of the Board of Directors.
May Xing Cunhua resigned as the Executive Director. Yi Xi Qun was appointed by the
Board of Directors as an Executive Director and the Chairman to the Board of
Director. Bao Zongye was appointed by the Board of Directors as an Executive
Director.
08
Between 8 and 9 August, the twenty-eight meeting for the Executive Board of
Aug Directors of Beijing Enterprises Holdings Limited was convened at Baidailing
to
Hot Spring Resort in Beijing.
09
Aug
09
On 9 September, Beijing Enterprises published 2003 Interim Results in Hong
Sep Kong.
18
On 18 September, Beijing Enterprises was transferred with 17.985% stake in
Sep Beijing Enterprises High-Tech Development Co., Ltd. held by Beijing Jingshi
High Tech Development Centre.
15
On 15 September, Beijing Sanyuan Food Company Limited of Beijing Enterprises
Sep Holdings Limited listed on Shanghai Stock Exchange.
15
On 15 October, Xiong Daixin resigned from the Board of Directors as an
Oct Executive Director, Executive Vice Chairman and President.
01
Between 1 and 2 December, the twenty-ninth meeting for the Executive Board of
Dec to Directors of Beijing Enterprises Holdings limited was convened in Hong Kong.
02
Dec

01
Dec

On 1 December, Zhang Hong Hai was appointed by the Board of Directors as an

Executive Director, Vice Chairman and President.
Back to Top

01
Mar
23
Mar
04
Apr
10
Apr
19
Apr

On 1 March, Jia Qinglin, the Secretary of the Executive Committee, Beijing, Du

Deyin, Member of the Executive Committee and the Secretary General, Liu
Jingmin, the Deputy Mayor, visited Beijing Enterprises and Beijing Enterprises
Teletron, Beijing Enterprises Xinsaier and Transportation Smart Card.
On 23 March, Zhai Hongxiang, the Deputy Mayor, visited Beijing Holdings and
Beijing Enterprises at their headquarters in Hong Kong.
On 4 April, the twenty-second meeting for the Executive Board of Directors of
Beijing Enterprises Holdings Limited was convened at Jianguo Hotel.
On 10 April, Beijing Enterprises published 2001 Annual Results in Hong Kong.

On 19 April, Beijing Enterprises and Zhonggei Holdings entered into an

acquisition agreement for the acquisition of 96.5% stake in Zhonggei Facilities
and its investment of 55% interest in Guanshunn Company.
24
On 24 May, Beijing Enterprises Holdings Limited held the celebration cocktail for
May its fifth anniversary at Beijing International Hotel.
29
On 29 May, Beijing Enterprises Holdings Limited held the celebration cocktail for
May its fifth anniversary at Grand Hyatt Hotel in Hong Kong.
30
On 30 May, Liu Haiyin, the Deputy Mayor of Beijing, visited the headquarter of
May Beijing Enterprises in Hong Kong.
31
On 31 May, the twenty-third meeting for the Executive Board of Directors of
May Beijing Enterprises Holdings Limited was convened at the headquarter.
13 JunOn 13 June, Long Xinmin, the Deputy Secretary to the Executive Committee of
Beijing, visited Beijing Enterprises in Hong Kong.
29 JunOn 29 June, BMEI Co., Ltd. was incorporated.
12
On 12 August, the twenty-forth meeting for the Executive Board of Directors of
Aug Beijing Enterprises Holdings Limited was convened at Crown Holiday Hotel in
Chengdu.
17
On 17 September, Beijing Enterprises published 2002 Interim Results in Hong
Sep Kong.
17
On 17 October, Beijing Tourism Development Co., Ltd. was incorporated in Hong
Oct Kong.
28
On 28 October, Zhang Mau, the Deputy Mayor of Beijing, Sun Anmin, the
Oct Deputy Chairman of Beijing Political Consultative Conference, Jiang Xiaoyu, the
Deputy Chairman of the Organizing Committee of Olympics Game visited the
headquarters of Beijing Holdings and Beijing Enterprises in Hong Kong.
23
On 23 December, the twenty-fifth meeting for the Executive Board of Directors of
Dec Beijing Enterprises Holdings Limited was convened at Jianguo Hotel in Beijing.
23
On 23 December, Bai Jingrong resigned as the Executive Director and Managing
Dec Vice President. Meanwhile, Guo Yingming was appointed by the Board of
Directors as the Executive Director.

Back to Top
15 Jan On 15 January, the eighteenth meeting for the Executive Board of Directors of
Beijing Enterprises Holdings Limited was convened at Huairou Kuangou Guest
House in Beijing.
15 Jan On 15 January, the Board of Directors appointed Liu Kai as an Executive
Director.
20
On 20 April, Beijing Enterprises published 2000 Results in Hong Kong.
Apr
10
On 10 May, the Fourth Session of the International Week for High Tech Industries
May in Beijing was held at Greatwall Hotel in Beijing. Beijing Enterprises Holdings
Limited and Beijing Ever Source Science & Technology Development Co., Ltd.
Aentered into a letter of consent for a joint venture of central liquid cool and heat
environment system.
31
Between 31 May and 1 June, the nineteenth meeting for the Executive Board of
May Directors of Beijing Enterprises Holdings Limited was convened at Beijing
to
Enterprises Holdings Limited.
01 Jun
13 JunOn 13 June, a signing ceremony for the syndicated loan was held by Beijing
Enterprises at Shangri-la Hotel in Hong Kong.
18 Jul On 18 July, Beijing Enterprises Holdings Limited and Xinsaier Group entered into
a cooperation agreement.
29
Between 29 and 30 August, the twentieth meeting for the Executive Board of
Aug Directors of Beijing Enterprises Holdings Limited was convened at Tongzhou
to
Yuelianghe Resort in Beijing.
30
Aug
30
On 30 August, Qiao Yu resigned as an Executive Director.
Aug
07
On 7 September, Beijing Enterprises published 2001 Interim Results in Hong
Sep Kong.
17
On 17 September, a signing ceremony was held for the spin-off of Beijing
Sep Enterprises Tourism at Greatwall Hotel in Beijing.
21
On 21 September, Dang Nan, the Deputy Minister of the Ministry of Science and
Sep Technology visited Beijing Enterprises.
03
On 3 December, Comrade Meng Xueyi, the Managing Deputy Mayor of Beijing,
Dec visited Beijing Enterprises.
13
Between 13 and 14 December, the twenty-first meeting for the Executive Board of
Dec to Directors of Beijing Enterprises Holdings Limited was convened in Kuala
14
Lumpur, Malaysia.
Dec
Back to Top

01
Mar

On 1 March, Xiong Daixin was appointed by the Board of Directors as an

Executive Director. Meanwhile, Guo Yingming resigned as the Executive
Director, Vice Chairman and President.
05
On 5 March, Beijing Enterprises Holdings Limited and Teletron entered into an
Mar agreement for the cooperation in aspects such as construction of electronic
network infrastructure, network operation and system integration.
31
On 31 March, an agreement for the joint construction of MAGLEV project at
Mar Baidailing was entered into with Baidailing Tourism Corporation and Baidailing
Tourism Development Company Limited.
31
On 31 March, the fifteen meeting for the Executive Board of Directors of Beijing
Mar Enterprises Holdings Limited was convened at Jianguo Hotel in Beijing.
01
On 1 April, the agreement for the cooperation with Beijing Public Transport
Apr Corporation, Beijing Underground Railway Corporation, Jingdongfong
Technology Development Co., Ltd., Beijing Huaxin Group, and Beijing Bus Co.,
Ltd. relating to the establishment of Beijing Transportation Smart Card Project
was entered into.
06
On 6 April, Wang Guangxi, the Deputy Mayor of Beijing, visited Beijing
Apr Enterprises.
20
On 20 April, Beijing Enterprises Holdings Limited published 1999 Results in
Apr Hong Kong.
30
On 30 May, Fang Fang resigned as Deputy President and was appointed by the
May Board of Directors as an independent non-executive director.
29
Between 29 and 30 May, the sixteen meeting of the Executive Board of Directors
May of Beijing Enterprises Holdings Limited was held at Beijing Enterprises Holdings
to
Limited.
30
May
25
On 25 August, Beijing Enterprises and National Defense Science University
Aug entered into a cooperation agreement for the joint development and application of
slow-to-medium speed MAGLEV technology, the construction of MAGLEV trial
line and Baidailing Showcase Line.
28
On 28 August, the seventeen meeting for the Executive Board of Directors of
Aug Beijing Enterprises Holdings Limited was convened at Jianguo Hotel in Beijing.
30
On 30 August, Qi Yu resigned as the Executive Director, and Li Man was
Aug appointed by the Board of Director as an Executive Director.
07
On 7 September, Beijing Enterprises published 2000 Interim Results in Hong
Sep Kong.
21
On 21 November, Comrade Zhang Fusen, the Deputy Secretary of the Executive
Nov Committee of Beijing, visited Beijing Enterprises.
Back to Top
16

On 16 March, Beijing Enterprises Holdings Limited and Beijing Weiming Group

Mar
29
Mar
20
Apr
04
May

entered into an agreement for the transfer of equity interests in Beidai Weixin.
On 29 March, the twelve meeting for the Executive Board of Directors was
convened at Qiran Hotel in Beijing.
On 20 April, Beijing Enterprises Holdings Limited published the 1998 Results in
Hong Kong.
On 4 May, Beijing Enterprises Holdings Limited and Luyang Digital Control
Company Limited entered into an agreement in Hong Kong. Beijing Enterprises
contributed RMB16,000,000 and accounted for 40% of shares in Luyang Digital
Control.
24
On 24 May, the inauguration ceremony of Beijing Enterprises High Tech
May Development Fund was held at the Banquet Room of Kempinski Hotel in Beijing.
28
On 28 May, a seminar on the development strategies of Beijing Enterprises was
May convened at the headquarter of Beijing Enterprises in Hong Kong.
31
On 31 May, the thirteen meeting of the Executive Board of Directors was
May convened at the headquarter of Beijing Enterprises in Hong Kong.
25 JunOn 25 June, the inauguration meeting of Beijing Enterprises High-Tech
Development Co., Ltd. together with a press conference was held at the
management committee of Zhongguancun Science Park.
29 JunOn 29 June, Beijing Holdings (Group) Limited reported to Meng Xueyi and Zhai
Hongxiang, the Deputy Mayors, at the Beijing Municipal Government, on the
assets and operations overview of Beijing Enterprises Holdings Limited.
01 Jul On 1 July, Beijing Holdings and Beijing Enterprises reported their status of work
to the Deputy Mayor, Zhai Hongxiang and discussed on issues for the progress of
injection into the Company.
27 Jul On 27 July, Beijing Holdings and Beijing Enterprises reported to the Deputy
Mayor, Meng Xueyi at the Beijing Municipal Government.
28
On 28 August, Cong Shije resigned as the Executive Director, and Bi Yuxi was
Aug appointed to the Board of Directors as an Executive Director.
07
On 7 September, Beijing Enterprises Holdings Limited published 1999 Interim
Sep Results in Hong Kong.
27
Between 27 and 28 December, the fourteenth meeting for the Executive Board of
Dec to Directors of Beijing Enterprises Holdings Limited was convened at Changping
28
Jundu Resort in Beijing.
Dec
Back to Top
07 Jan Between 7 and 8 January, the fifth meeting for the Executive Board of Directors
to
was convened at Baidailing Hot Spring Resort.
08 Jan
13 Jan On 13 January, the Beijing Municipal Government issued a letter to the Securities
Commission of the State Council, which was headed the Letter Concerning the
Adjustment of Participation by Beijing Enterprises Holdings Limited in the
Construction and Investment of Public Facilities in Beijing.
03
On 3 March, the sixth meeting for the Executive Board of Directors was convened

Mar
31
Mar
15
Apr
17
Apr
20
Apr
17
May

27
May
29
May

at the Beijing Management Company of Beijing Enterprises.

On 31 March, Beijing Enterprises BVI successfully issued US$175 million
convertible bonds convertible into shares of Beijing Enterprises in Hong Kong.
The arranging banks were CSFB and Goldman Sachs (Asia).
On 15 April, the China Securities Regulatory Commission issued a letter to
Beijing Enterprises Holdings Limited, which was headed the Reply Letter
Concerning Certain Issues on the Disclosure of Conditional Agreements.
On 17 April, the seventh meeting for the Executive Board of Directors was
convened at Beijing Management Company of Beijing Enterprises.
On 20 April, Beijing Enterprises Holdings Limited published the 1997 Results in
Hong Kong.
On 17 May, the office of the Beijing Municipal Government issued a letter to
Beijing Enterprises Holdings Limited, which was headed the Letter Concerning
the Consent to the Agreed Issues for the Coordination of Projects to be injected
into Beijing Enterprises Holdings Limited. It was agreed in principle that
concessions for Beijing Water Supply No. 9 Plant and toll Roads to Beijing would
be projects to be transferred and injected into Beijing Enterprises Holdings
Limited. (Jing Zheng Ban Han [1998] No. 78)
On 27 May, Liu Qi, the Deputy Mayor of the Beijing Municipality chaired and
convened a meeting, which discussed the issues related to the acquisition of
Beijing Water Supply No. 9 Plant by Beijing Enterprises Holdings Limited.
On 29 May, the cocktail to celebrate the first anniversary of the successful listing
of Beijing Enterprises Holdings Limited was held at Grand Hyatt Hotel in Hong
Kong.
Between 30 and 31 May, the eighth meeting for the Executive Board of Directors
was convened at the headquarter of Beijing Enterprises in Hong Kong.

30
May
to
31
May
16 JunOn 16 June, Hu Zhaoguang, the Chairman of the Board of Directors of Beijing
Enterprises sent a letter to the Liu Qi, the Managing Deputy Mayor and Jia
Qinglin, the Mayor for the issues relating to the transfer of concession rights in
phase 1 of Beijing Water Supply No. 9 Plant. It was commented by Liu Qi that
"the issues should be reviewed by Comrade Qinglin. There was difference
between both parties for the room of growth, which might require your
determination." It was then instructed by Comrade Qinglin that "Comrade Liu Qi
and Comrade Guang Xu should decide and should procure the successful
completion of the transaction."
26 JunOn 26 June, Beijing Water Company and Beijing Enterprises Holdings Limited
entered into the Memorandum of Understanding for Matters Concerning the Grant
of Concession for the production and processing of water and sales to defined
customers".
01 Jul On 1 July, Beijing Enterprises Holdings Limited entered into the cooperative
agreement with the respective parties for the establishment of joint ventures such
as Beijing Beikang Waterworks, Shun Xing Wine, Long Qing Xia Tourism and
Greencool at Jianguo Hotel in Beijing.

27 Jul On 27 July, the ninth meeting for the Executive Board of Directors was convened
at the Beijing Management Company of Beijing Enterprises.
20
On 20 August, the Foreign Economic and Trade Commission in Beijing issued a
Aug letter to the Beijing Municipal Public Utilities Bureau, which was headed the
Approval Concerning the Agreement on the Grant of Concession for the
production and processing of water and sales to defined customers entered into
between Beijing Water Company and Beijing Enterprises Holdings Limited. The
Agreement on the Grant of Concession for the production and processing of water
and sales to defined customers, the Agreement for the Supply of Water for
Processing and Acquisition of Processed Water, and the Agreement on the
Engagement for Operation and Maintenance entered into between Beijing Water
Company and Beijing Enterprises Holdings Limited were approved and became
effective.
04
On 4 September, the tenth meeting for the Executive Board of Directors was
Sep convened at the Beijing Management Company of Beijing Enterprises.
07
On 7 September, Beijing Enterprises Holdings Limited published 1998 Interim
Sep Results in Hong Kong.
17
On 17 September, the Planning Commission in Beijing issued a letter to the
Sep Planning Commission of Chaoyang District, which was headed the Approval
Concerning the Substitution of Feasibility Study with the Project Proposal for the
establishment of Beijing Beikang Waterworks Co., Ltd. It was agreed that Beijing
Enterprises Holdings Limited would establish a wholly-owned subsidiary, Beijing
Beikang Waterworks Co., Ltd. in Beijing.
24
On 24 September, the Foreign Trade and Economic Commission in Beijing issued
Sep a letter to the Foreign Trade and Economic Commission of Chaoyang District,
which was headed the Approval for the incorporation of a foreign-invested entity
named Beijing Beikang Waterworks Co., Ltd. It was agreed that Beijing
Enterprises Holdings Limited would incorporate a foreign-invested entity named
Beijing Beikang Waterworks Co., Ltd. in Beijing, and approved the articles of
association and the composition of board of directors of that company. (Jing Jing
Mao Zi Zhi [1998] No. 755).
05
On 5 October, the China Securities Regulatory Commission issued a letter to the
Oct Beijing Municipal Government, which was headed the Approval Concerning the
Holding of Interests Related to the Works in Phase 1 of Beijing Water Supply No.
9 Plant by Beijing Enterprises Holdings Limited. It was agreed that Beijing
Enterprises Holdings Limited would hold 75%, 51% and 51% interests in Beijing
Long Qing Xia Tourism Company Limited, Beijing Shun Xing Wine Company
Limited and Beijing Leigexi Wine Company Limited, and the concession rights
with respect to the production and processing of water and defined sales in the
works of Phase 1 in Beijing Water Supply No. 9 Plant for a term of 20 years
(Zheng Jian Guo Zhi [1998] No. 32).
07
Between 7 and 8 December, the eleventh meeting for the Executive Board of
Dec to Directors was held at Yishengyuan International Conference Centre in Beijing.
08
Dec

Back to Top
17 Jan On 17 January, the Municipal Government convened the coordination and
initiation meeting for the listing entities, authorities for approving the merger and
the intermediaries. This meeting gave the parties an unified understanding and
ensured the progress and success of the listing to a critical extent.
05
On 5 February, China Securities Regulatory commission wrote to Ministry of
Feb Foreign Trade and Economic Cooperation, which was headed as the Letter
Concerning Certain Issues on the Restructuring and Listing of Beijing Holdings
Limited in Hong Kong (Zheng Jian Han Guo 1997 No.1).
12
On 12 February, the Beijing Municipal Government issued a letter to the Ministry
Feb of Foreign Trade and Economic CooperationAwhich was headed as the Letter
Concerning the Injection of Certain Entities in Beijing by way of equity swap into
Beijing Holdings Limited for listing in Hong Kong (Jing Zheng Han 1997 No.8).
21
On 21 February, according to the requirement of Guo Fa [1992] No. 62, Beijing
Feb Foreign Trade and Economic Commission issued a letter to the Ministry of
Foreign Trade and Economic Cooperation, which was headed as the
Supplementary Illustration Concerning Certain Issues on the Incorporation of
Beijing Enterprises Holdings Limited in Hong Kong.
24
On 24 February, Beijing Real Estate and Land Administration, State Restructuring
Feb Commission, Beijing Municipal Planning Commission and Beijing Municipal
Finance Bureau jointly issued a letter to the Beijing Municipal Government,
which was headed as the Requests Concerning the Disposal of State-owned Land
Use Rights and Related Issues during the Course of Listing for Stocks with
Concepts about the Capital.
24
On 24 February, the State-owned Assets Administration Bureau issued a letter to
Feb Beijing State-owned Assets Administration Bureau, which was headed as the
Approval Concerning the Engagement of Appraisal Firm Outside China for the
Issue of Overseas Listed Foreign Shares by Beijing Holdings Limited.
24
On 24 February, the Ministry of Foreign Trade and Economic Cooperation duly
Feb published the approval concerning the incorporation of Beijing Holdings (Group)
Limited in Hong Kong.
04
On 4 March, the composition of executives and senior officers was submitted to
Mar the Hong Kong Stock Exchange.
05
On 5 March, the State-owned Assets Administration Bureau issued a letter to
Mar Beijing State-owned Assets Administration Bureau, which was headed as the
Endorsement and Approval of the Project Assets Appraisal Results for the Issue of
Overseas Listed Foreign Shares by Beijing Holdings Limited.
07
On 7 March, the Listing Application Form was submitted to the Hong Kong Stock
Mar Exchange.
10
On 10 March, the Ministry of Foreign Trade and Economic Cooperation duly
Mar issued a document to the Beijing Municipal Government, which was headed as
the Reply Letter for the Consent Concerning the Injection of Certain Entities in
Beijing by way of equity swap into Beijing Holdings Limited and the
incorporation of Beijing Enterprises Holdings Limited in Hong Kong ([1997] Wei

12
Mar

17
Mar
19
Mar
20
Mar

25
Mar
25
Mar
25
Mar
27
Mar
03
Apr
16
Apr
17
Apr
18
Apr

Jing Mao Hai Han Zi No. 507).

On 12 March, the Beijing Municipal Government incorporated the following
companies in British Virgin Islands: Beijing Enterprises (Motorway) Limited,
Beijing Enterprises (Dairy) Limited, Beijing Enterprises (Tourism) Limited,
Beijing Enterprises (Beer) Limited, Beijing Enterprises (Retail) Limited, Beijing
Enterprises (Food) Limited, and Beijing Enterprises (Technologies) Limited.
On 17 March, China Light Industries Association issued a letter to the Beijing
Municipal Government, which was headed as the Reply Letter Concerning the
Injection of Beijing Yanjing Beer Group Company by way of equity swap into
Beijing Holdings Limited for listing in Hong Kong (Qing Zong Shi 1997 No. 2).
On 19 March, Beijing Municipal Finance Bureau issued a letter to Beijing
Enterprises Holdings Limited, which was headed as the Letter Concerning Certain
Issues in Income Taxes Payable by Listed Entities with Concept of Capital.
On 20 March, the Office of the Beijing Municipal Government duly issued a letter
to the Beijing State-owned Assets Administration Bureau, which was headed as
the Notice Concerning the Change in Reporting Relationship of Beijing Jing Lian
Fa Investment Management Centre, and duly agreed to transfer Beijing Jing Lian
Fa Investment Management Centre under State-owned Assets Administration and
Operation Corporation to Beijing Holdings Limited.
On 25 March, the scheme of Beijing Holdings for listing in Hong Kong and
restructuring was confirmed.
On 25 March, the lists of strategic investment partners, lead underwriters and colead underwriters for listing in Hong Kong were confirmed.
On 25 March, the non-executive directors and receiving bank were confirmed.
On 27 March, Beijing Holdings was duly renamed as Beijing Holdings (Group)
Limited. The name of the listing company was confirmed as Beijing Enterprises
Holdings Limited.
On 3 April, the members of underwriting syndicate were confirmed.
On 16 April, the Beijing Municipal Government issued a letter of undertaking to
the Hong Kong Stock Exchange.
On 17 April, the hearing by the Hong Kong Stock Exchange was completed
successfully.
On 18 April, the Securities Commission of the State Council issued a letter to the
Beijing Municipal Government, which was headed as the Approval Concerning
the Consent to the Issue of Shares and Listing in Hong Kong by Beijing
Enterprises Holdings Limited (Zheng Wei Fa [1997] No. 20).
Between 25 April and 30 April, a reverse road show was held in Beijing.

25
Apr to
30
Apr
05
Between 5 May and 16 May, international road show was conducted.
May
to
16

May
15
May
19
May
19
May
20
May
23
May
12:00
P.M.
24
May
27
May
29
May

On 15 May, the issue price of the shares was determined as HK$12.48.

On 19 May, it was duly announced to the public that the Company would be listed
on the Hong Kong Stock Exchange on 29 May.
On 19 May, the press conference for listing was held in Hong Kong.
On 20 May, the offering was duly commenced in Hong Kong.
At 12:00p.m. on 23 May, the offering was closed.

On 24 May, the notice of listing was published.

On 27 May, the first meeting for the Executive Board of Directors was convened
at the headquarter of Beijing Enterprises in Hong Kong.
On 29 May, the first day the Company was listed on the Stock Exchange on Hong
Kong, the closing price of that day was HK$40.2, as compared to the issue price
of HK$12.48. 208,500,000 million shares were issued. The volume for that day
accounted for 15% of the total volume traded in Hong Kong on that day.
Moreover, the Company broke several records then for stocks in Hong Kong:
most proceeds raised from IPO (HK$2,750 million); highest P/E multiples (19.35
times), most over-subscribed (1,276 times in Hong Kong, 88 times overseas);
greatest number of application forms printed and re-collected (a total of 1,100,000
were printed and 320,000 were re-collected).
29
On 29 May, the cocktail to celebrate the successful listing of Beijing Enterprises
May and the incorporation of Beijing Holdings (Group) Limited was held in Hong
Kong.
05 JunOn 5 June, Beijing Holdings Limited issued a letter to the State Foreign Exchange
Administration, Beijing Branch, which was headed the Report Concerning the
Proceeds from the Listing of Beijing Enterprises in Hong Kong and the Status on
the Use of Proceeds.
09 JunOn 9 June, with the Preparation Team for Listing with Concept of Beijing issued a
letter to the Beijing Municipal Government, which was headed the Report
Concerning the Listing of Beijing Enterprises in Hong Kong, which concluded on
the listing of Beijing Enterprises, the experiences and the future plans.
16 Jun Between 16 and 17 June, the second meeting for the Executive Board of Directors
to
of Beijing Enterprises Holdings Limited was convened at Nankou Farm in
17 Jun Beijing.
10 Jul On 10 July, in accordance with the principles underlying Guo Zheng Fa [1997]
No. 20, the Beijing Municipal Government issued a letter to the Securities
Commission of the State Council, which was headed the Report on the Issue of
Shares in Hong Kong by Beijing Enterprises Holdings Limited, and concluded on
the listing of Beijing Enterprises in Hong Kong, the principal features and the
related issues (Jing Zheng Han [1997] No. 53)

22 Jul Between 22 and 23 July, the third meeting for the Executive Board of Directors of
to
Beijing Enterprises was convened at Guoman Road Hotel, Beijing.
23 Jul
30 Jul On 30 July, the Foreign Trade and Economic Commission in Beijing issued a
letter to Beijing Holdings Limited, which was headed the Approval Concerning
the Equity Joint Venture Contracts, Articles of Association and the Composition of
the Board of Directors of Beijing Enterprises Holdings Investment Management
Company Limited, and agreed to establish Beijing Enterprises Holdings
Investment Management Company Limited.
30
On 30 October, the Beijing Municipal Government issued a letter to the Securities
Oct Commission of the State Council, which was headed the Letter Concerning the
Application by Beijing Enterprises Holdings Limited to Participate in the
Construction and Investment of Public Utilities in Beijing.
11
Between 11 and 12 November, the fourth meeting for the Executive Board of
Nov Directors was convened at Daijue Temple in Beijing.
to
12
Nov
12
On 12 November, the inauguration ceremony for the new office for the
Nov Development Seminar of Beijing Enterprises Holdings Limited, Beijing Holdings
(Group) Limited and Beijing Enterprises Holdings Limited was conducted.
Dec In December, Beijing Enterprises Holdings Limited and Beijing Nanjiao Winery,
Beijing Cereal and Food Import and Export Company, Taiwan Dongshunxing
Company Limited entered into the Supplementary Agreement for the Transfer of
Equity Interests in Beijing Shun Xing Wine Company Limited, and acquired 51%
stake in Beijing Shun Xing.
Back to Top
29
On 29 May, Mr. Francis Leung Pak To, the Managing Director of the Peregrine
May Investment Group in Hong Kong wrote to Jin Renqing, the Managing Deputy
Mayor of the Beijing Municipality. It was suggested that the "Development of
Beijing" should be employed as a channel, and by fully leveraging on the position
of Hong Kong as a financial centre, Beijing would be able to raise funds for
constructions.
30
On 30 May, with the company of Guo Yingming, the Chairman of Beijing
May Holdings, Jin Renqing, the Managing Deputy Mayor, met Mr. Francis Leung Pak
To, the Managing Director of the Peregrine Investment Group in Hong Kong at
Jing Guang Centre in Beijing, and exchanged ideas about the development of
Beijing entities in Hong Kong.
15 Jul On 15 July, Mr. Francis Leung Pak To, the Managing Director of the Peregrine
Investment Group in Hong Kong, wrote to Jin Renqing, the Managing Deputy
Mayor of the Beijing MunicipalityAand gave further thoughts about employing
the "Development of Beijing" by the Beijing Municipal Government to raise
funds from Hong Kong and the international market.

16
Sep

On 16 September, at the North Tower Conference Room of the Beijing Municipal

Government, Jin Renqing, the Managing Deputy Mayor of the Beijing
MunicipalityAconvened the working meeting for the listing of Beijing Holdings
based on the concept of the Capital. During this meeting, it was decided the listing
plan of Beijing Holdings would be based on the concept of the Capital. It was
confirmed that the joint sponsors of the listing and international placing would be
Peregrine and Morgan Stanley. It was also determined the directions for the
listing: proactive and proper, set to be successful, devote to resolve the difficulties
and mastermind behind the scene.
18
On 18 September, the Executive Committee of Beijing convened a meeting. Jin
Sep Renqing, the Managing Deputy Mayor of the Beijing MunicipalityAreported the
plan of Beijing entities listing in Hong Kong during the meeting. It was endorsed
in the meeting with major instruction being made by Wei Jianxing, the Secretary
of the Executive Committee.
19
On 19 September, at the North Tower Conference Room of the Beijing Municipal
Sep Government, Comrade Li Qiyan convened the 90th Meeting for the Executive
Committee of Beijing. Jin Renqing, the Managing Deputy Mayor of the Beijing
MunicipalityAreported the issue of Beijing entities listing in Hong Kong during
the meeting.
24
On 24 September, at the Main Conference Room of Beijing Holdings Limited in
Sep Hong Kong, the first working committee meeting for the listing of Beijing
Holdings was convened. The meeting marked the duly initiation of the preparation
for the listing.
18
On 18 November, Francis Leung Pak To of Peregrine and Xu Ziwang of Morgan
Nov Stanley jointly wrote to Jin Renqing, the Managing Deputy Mayor of the Beijing
MunicipalityAon the listing of Beijing Holdings in Hong Kong. The structure
and the restructuring of Beijing Holdings to list in Hong Kong was proposed.
02
On 2 December, Jia Qinglin, the Mayor, and Jin Renqing, the Managing Deputy
Dec MayorAwrote to Zhu Rongji, the Premier, and proposed the objectives of the
listing as "relying on the assets of the Beijing Municipal Government in Hong
Kong, and based on the infrastructure, tourism, light food industry and high tech",
"selecting a few entities with scale, efficiency and prospect" and "adopting the
model of Shanghai Industrial Holdings Limited to list in Hong Kong and issue red
chips". Premier Zhu instructed the proposal "to be reviewed by Comrade
Zhengqing". Comrade Zhou Zhengqing commented the proposal "to be further
initiated by Comrade Daojiong with Beijing Municipality for second submission".

Listed

on

The

Shanghai

Stock

Exchange

Listed on The Shenzhen Stock Exchange

Beijing Enterprises places a lot of emphasis in the establishment of corporate culture and
the cultivation of team spirit. We have broadly absorbed essences in different corporate
cultures, and have integrated features of corporate culture in both Beijing and Hong

Kong. We have devoted to the creation of corporate culture that is people-oriented,

healthy and positive, harmonious and relaxing. Hence, we wish to incubate an
atmosphere that is devoted, committed, united, sharing and caring.

Our vision
In our future course of development, Beijing Enterprises will continue to capitalize on the
tremendous business opportunities brought by the rapid development of economy in the
capital. We will insist in the maximization of shareholders'
interests and distinct the principles for the development of core
businesses. We will closely monitor the enhancement of our
intrinsic value, the change in market rules and business
environment as well as their respective development trend, the
cultivation of business ethics and creation of corporate culture.

Upon consolidating the return from the profitable operations, we will continue to enhance
the composition of core business segments with a focus in infrastructure and public

utilities in the form of gas, water and expressway. We will fully leverage on the unique
advantages in public utilities sector, and proceed with the acquisition of projects with
growth related to the core businesses pro-actively and prudently. We will continue to
expand the support and efforts in incubating brand businesses such as Yanjing Beer. This
will gradually shape Beijing Enterprises into an integrated energy service entity for the
provision and supply of infrastructure and public utilities products, and sufficiently
capitalize on the essential effect as the investment and financing platform for the public
utilities in Beijing overseas. Moreover, through the establishment of sustainable
production base in Beijing, we have laid a solid foundation for development in China,
which will achieve sustainable development of the entity and create more value for the
shareholders.

Water and environment-related services are a key component of the major public-utility
operations under Beijing Enterprises Holdings Ltd. These include investments, design,
construction and operational management as well as production of key equipment and
facilities and related overall engineering works. In wastewater treatment, the Group is
involved in projects across a diverse geographical region, including Sichuan, Shandong,
Guangdong, Hunan, Zhejiang and Hainan, where the cumulative scale of wastewater
treated exceeds 900,000 tons/ per day. In urban water supply services, the Group has
secured operational franchises for a number of projects both completed and underway,
including Beijing No. 9 Water Treatment Plant, Phase I of Phase I of Beijing No. 10
Water Treatment Plant and Phase I of Weifang Water Treatment Plant, with a total watersupply capacity of over 1 million tons per day. Related subsidiaries of the Group include
Beijing Enterprises Water Group Limited, Beijing Enterprises Water Treatment
Limited and Beijing Enterprises Holdings Environment Technology Co. Ltd.
Beijing Enterprises Water Group Limited is a company listed on the Hong Kong Stock
Exchange (stock code: 00371). As a flagship enterprise of Beijing Holdings in water
services, it is supported by a professional management team with a wealth of marketoriented operation experience; smooth capital-raising channels; a highly efficient
governance model and professional excellence as research and development expertise. Its
overall vision is to become an integrated investment and operational group equipped with
a spectrum of investment, operation, management and capital management expertise all

combined into one, coupled with active involvement in every part of the industrial chain.
As a large scale professional water treatment group of China, Z.K.C. Environmental
Group Co. Ltd has been made it to the list of Top Ten Influential Enterprises in Chinas
Water Industry for two consecutive years. Leveraging on patented technology developed
from its own R & D efforts, it has developed a presence in four major domestic markets,
including Southwestern China, Southern China, Central China and Northern China.
Presently, it ranks eighth in the country for its capacity in the design of wastewater
treatment facilities.
Beijing Enterprises Water Treatment Limited provides urban water supplies as its key
operation. As an enterprise specializing in water system operations, it provides an
integrated range of services including construction, operation, information consultancy
and technological backup. Under its flagship is the Beijing Enterprises Water
Treatment Limited, combined with special franchise projects including Beijing No. 9
Water Treatment Plant, Phase I of Beijing No. 10 Water Treatment Plant and Phase I of
Weifang Water Treatment Plant.
Beijing Enterprises Holdings Environment Technology Co., Ltd. is primarily engaged
in operations including investments, constructions and operations of environmental
projects such as wastewater treatment, industrial sewage treatment and municipal water
supply as well as urban waste disposal and disposal of hazardous solid waste. It
undertakes franchised operations of wastewater treatment at Baishamen of Haikou City,
with a treatment capacity of 250,000 tons daily, and landfill projects of Pingdu, Qingdao
City.

The toll road business is made up of three major highways, including the Beijing Capital
International Airport Expressway, Airport North Freeway and Shenzhen Guanshun Road.
Due to its unique geographical location, the Beijing Capital International Airport
Expressway has been dubbed the first road to the countrys gateway. As the main road
linking Beijing Capital International Airport with Beijing downtown, it is one of Chinas
busiest expressways. Becoming operational since 1993, this six-lane highway spans a
total distance of 18.7 km catering to a vehicular speed of 120 km per hour. Designed for a
traffic volume of 6,300 vehicles per hour, it is a modern transport management system
with informationized, systematized and smart features all rolled into one. The Airport
North Freeway is an important road connecting Beijing Capital International Airport
with Beijing downtown and northwestern area, via the Jingcheng Expressway. Spanning
about 11.3 km, it was completed and entered operations in 2006. It is designed for a
vehicular speed of 120 km per hour and a traffic volume of 55,000 vehicles per day.
Shenzhen Guanshun Road, which is located in Baoan District of Shenzhen City, was
completed in 1995 and became operational in the same year. Spanning 37.6 km, it is
designed for a vehicular speed of 80-100 km per hour and a traffic volume of 68,000
vehicles per day.

The beer business is an important revenue centre for Beijing Enterprises Holdings.
Beijing Yanjing Beer Corporation, its principal business unit, is one of the mainlands
largest beer brewery groups with a brand value of RMB2 billion and also the largest
brewery facility of Asia. Representative of the beer manufacturing sector of the Chinese
people, it has joined the ranks of the worlds top ten beer manufacturers. Presently,
Yanjing Beer Corporations market share in China exceeds 11%. In Beijing and Northern
China, its market dominance rates are respectively 85% and above 50%. Apart from
having a strong market presence in the core urban regions of Beijing, Guangxi, Fujian,
Hubei and Inner Mongolia, it has established 28 factory bases in 10 provinces and cities
across the entire nation. With annual sales exceeding 4 million tons, Yanjing Beer is the
nations best selling beer for 11 years in a row. With its sales volume expected to breach
the 5 million-ton mark in 2010, Beijing Yanjing Beer Corporation is a company listed on
the Shenzhen Stock Exchange (stock code: 000729

The technology business of Beijing Holdings is comprised of a combination of electronic

payment and information technology, with a portfolio of investments in solid waste
disposal, environment-related services and technology incubation. Representing its
interests in this business area are three subsidiaries of the Group, including Beijing
Development (Hong Kong) Limited, Beijing Enterprises Holdings High-Tech
Development Co., Ltd and BMEI Co., Ltd.
Beijing Development (Hong Kong) Limited, a company listed on the Hong Kong Stock
Exchange (stock code 00154), is operationally active in many areas, including rail
transportation, a smart card program of municipal transportation and education. Under its
flagship are three subsidiaries, including Beijing Municipal Administration and
Communications Card Co. Ltd, Beijing Enterprises Teletron Information
Technology Co., Ltd and China Information Technology Development Ltd.
Beijing Enterprises Holdings High-Tech Development Co., Ltd is involved in hightech investments including electronic information, opto-mechantronics, environment
protection, new energy (energy conservation) and new medical research.
BMEI Co., Ltd., which possesses the advantages of core technology and complete
engineering projects, invests substantially in hi-tech enterprises pertaining to large-scale

environmental facilities and high-end digitally controlled machine tools. Presently, it

claims over 50% share in the mainland market for hazardous waste disposal. It also holds
a market monopoly in disposal of hazardous chemical material. Large-scale projects it
has undertaken include collective disposal of Shanghai medical waste, large-scale
complete hazardous waste material in Xinjiang and overall disposal of everyday garbage
in Cte d'Ivoires economic capital Abidjan.

18 Aug
2009
30 Mar
2009
17 Sep
2008
08 Apr
2008
28 Jan
2008
18 Sep
2007

Mr. Wang Dong succeeds Mr. Yi Xiqun as Chairman of the Board

2008 Annual Results
2008 Interim Results
2007 Annual Results
Subscription for New Shares in Shang Hua Holdings Limited

Beijing Enterprises announces 2007 interim results - Revenue increased 15.4% to

HK$3.94 billion, Profit attributable to shareholders soared more than 40 times to
HK$638 million
07 Aug Appointment of Mr Zhou Si as Vice Chairman and Mr Li Yong Cheng as Vice
2007 President
02 Aug BEHL obtained franchise right in Plant A of Beijing No. 10 Water Treatment
2007 Plant
03 Apr 2006 Annual Results
2007
13 Sep 2006 Interim Results
2006
11 Apr 2005 Annual Results
2006
27 Feb BEHL Spin-off Biosin
2006
08 Sep 2005 Interim Results
2005
12 Apr 2004 Annual Results
2005
07 Sep 2004 Interim Results
2004
15 Apr 2003 Annual Results
2004
01 Dec Appointment of Mr. Zhang Hong Hai as Vice Chairman of Beijing Enterprises
2003 Holdings Limited
09 Sep 2003 Interim Results
2003
29 May Appointment of Mr. Yi Xi Qun as Chairman of Beijing Enterprises Holdings Ltd.

2003
15 Apr 2002 Annual Results
2003
17 Oct Beijing Tourism inaugurated today jointly established by Beijing Enterprises,
2002 Beijing Tourism Group & Hutchison China
17 Sep 2002 Interim Results - Beijing Enterprises records profit of HK$216 million in
2002 the first half of 2002
10 Apr 2001 Annual Results
2002
06 Sep 2001 Interim Results - Beijing Enterprises recorded "Double Digit" earning
2001 growth
10 Apr 2000 Annual Results - Based on Continued Growth of Its Businesses, Beijing
2001 Enterprises' 2000 Net Attibutable Operating Profit up 5.4%
16 Jan Strategic Acquisition of 85% equity interests in Beijing Kraft Food Corporation
2001 (BKFC)
05 Sep 2000 Interim Results - Beijing Enterprises reported 3% earnings growth in the
2000 first half of 2000
30 May Mr. Fang Fang Joins the Board of Beijing Enterprises Holdings Limited as Non2000 executive Director and Advisor to Chairman
06 Sep Beijing Enterprises reported 2% earnings growth in the first half - supported by
1999 profit rise of Yanjing Brewery and Capital Expressway
20 Apr Building On Strong Fundamentals, Beijing Enterprises' 1998 Net Attributable
1999 Operating Profit Up 18%
14 Oct Strategic Initiatives in High-Technology Sector
1998
07 Sep Beijing Enterprises Holdings Limited reported satisfactory interim results
1998
01 Jul Beijing Enterprises Holdings Limited Entered Into Agreements To Invest In
1998 Several Projects In Beijing
20 Apr Beijing Enterprises announces results for 1997
1998
27 May Beijing Enterprises Holdings Limited Announced Record Breaking Subscription
1997 Results
19 May Beijing Enterprises Holdings Limited to List on The Hong Kong Stock Exchange
1997

Gas Group and Miyun County Government Signed A Gas Framework Agreement
Beijing Public Transport IC Card Issue Volume has Exceeded 28 Million
BEHL's Coal Gas Project Funding Adjustments Approved
WPU Signed A Cooperative Agreement with BEIJING NEW DRUGS
PRODUCTION, LEARNING AND RESEARCH ALLIANCE
Beijing Gas Group Pinggu Branch Unveiled
Yanjing Brewery Awarded Title of "National Environment-Friendly Enterprise"
with 170-Million-RMB Investment in Sewage Treatment

BEWG Project Forum Held in Guang'an

Beijing Gas Group Set up Regional Branches to Provide Integrated Services
Wang Dong, Former Director of Beijing SASAC, Takes up Post as President of
BEHL
Insurance Giants Continue to Increase their Holdings in Yanjing Brewery
A Maglev Train Developed by BEHMTD will Run on Beijing's First Maglev Rail
in 2015
BEIJING GUOAO INVESTMENT DEVELOPMENT CO. LTD. Announced the
Official Launch of Olympic Village Projects in Chengdu
"Rushan - Wendeng - Rongcheng" Natural Gas Project, Invested by Beijing Gas
Group's Shandong Branch, Started Construction
Yanjing Brewery's Board of Directors and Supervisory Committee Plans to Make
the Term-Change Election
The Value-Added Tax Paid by Yanjing Brewery and other Enterprises Hit Record
High
Yanjing Brewery Recognized as Beijing High-Tech Enterprises in 2009
BEWG Acquired Jinzhou Sewage & Renewable Water Projects
Yanjing Brewery Posts First-Half Net Profit of RMB 318 Million
Merrill Lynch Maintains a "Buy" Rating on BEHL
Yanjing Brewery Strives to be Ranked in the World's Eighth Largest Beer Maker
800,000 Tons Production Line of Yanjing Liquan Brewery Completed and Put
into Operation
Beijing Gas Group Actively Promotes the Process of Weihai Gas Pipeline Project
Yanjing Hunan Brewery Reversed a 10-Year Losing Streak
Yanjing Beer's Sales Volume Hits A New High
BEWG Increased its Capital Contribution to Shenzhen Bei Kong by RMB 86.9
Million
YANJING BEER (BAOTOU SNOW DEER) CO., LTD Adheres to the Faith of
Developing National Beer Industry
Ordinary Yanjing Beer is out of Stock this Summer
Li Fucheng, Board Chairman of Yanjing Beer Group, Elected Vice-President of
BEIJING ALCOHOL CIRCULATION TRADE ASSOCIATION
Yanjing Brewery Maintains Position as Industry Pacesetter
BEIJING MUNICIPAL ADMINISTRATION & COMMUNICATIONS CARD
CO., LTD. Launched "NBA HERO" Cards
Beijing Gas Group's Shandong Branch Signed a Franchise Agreement with
WENDENG CITY CONSTRUCTION BUREAU
YANJING BEER (BAOTOU SNOW DEER) CO., LTD Fulfills the Promise of
Resource-Conservation
BEHL Plans to Invest RMB 2 Billion in Sewage Treatment and Solid Waste
Disposal Businesses this Year
Beijing Gas Company Industrial Plaza Became a Bright Spot in Project Signing
Ceremony
OCN.COM: Yanjing Brewery Took a Lead in Output and Sales Volume
The First Homemade Mid-to-Low Speed Maglev Train Developed by BEHMTD
Rolled off the Production Line

Old Building Gas Supply Projects (Involving 100,000 Households) in Beijing

Entered the Implementation Phase
JP MORGAN CHASECO Raised BEHL's Target Price to 42.80 Hong Kong
Dollars
Shunyi District Yanjing Beer Festival Opened, with Total Investment Hitting
RMB 10 Billion
100,000-Ton Production Line of Yanjing Tongliao Brewery Phase I Project was
Completed and Put into Production

Contact us
Company: Beijing Enterprises Holdings Limited
Address: Room 4301, 43/F Central Plaza, 18 Harbour Road, Wanchai, Hong Kong
Tel:
(852) 2915 2898
Fax:
(852) 2857 5084
Email:
mailbox@behl.com.hk

RESEARCH METHODOLOGY
2.1 Objectives of the study
This study is aimed at appraising the performance launched by corporates ,banks and
company in India. More specificially, the study has been designed to achieve the
following objectives:
1. To evaluate the of appraising different schemes in term of their returns and risks
by applying Sharpe, Treynors and Jensen indicies.
2. To carry out the funds sensitivity to the market movements by calculating Beta.
3. To carry out a comparative analysis of the performance of mutual fund schemes
and that of market portfolio, i.e. NSE NIFTY ,so as to bring out whether mutual
fund shemes are outperforming or underperforming the benchmark (NSE
NIFTY).
.
2.3 Assumptions under the Study:

Rate of risk less ret

Secondary data sources are assumed to be true.

2. 4METHOD
To achieve the objective we make by use of filed research method.

Filed research methods:

Mass observation through questionnaire.

Personal interview

2.5 RESEARCH DESIGN

A research design is the overall plan on programme of research. It includes an outline of

what the investigator will do from writing the hypothesis and their operational
implications to the final analysis of data.
The objective of the exploratory research is to seek new ideas and to discover new
relationship between different set factors in a way that will permit of specific hypothesis.
To find out there hypothesis, study of secondary sources of information, survey of
knowledge persons on case studies are conducted Conclusive research provides
information which helps in decision making; such research requires identifying cause and
effecting relationships. This can be done by case study and experimentation
Overall the research which was used as a prototype for his market research analysis is:i.

Define research problem.

ii.

Review concepts and theories.

iii.

Formulate hypothesis.

iv.

Design research.

v.

Collection of data .

vi.

Analysis of data.

Interpret and reports.

2.6 COLLECTION OF DATA THROUGH QUESTIONNAIRES
This method of data collection is quite popular, particularly incase of big inquiries. It is
being adopted private researchers, and workers, and private and public organizations and

even government. In this method a questionnaire is sent (usually by post) to the persons
concerned with a request to answer the question and return the questionnaire.
The method of collecting data wise mailing the questionnaires to respondents is the most
extensively employed in various economy and business surveys. The merits claimed on
behalf of this method are as follows:
1.

There is low cost even when the universe is large and is widely spread
geographically.

2.

It is free from the bias of the interviewer; answers are in respondents own
words.

3.

Respondents have adequate time to give well thought out answers.

4.

Respondents, who are not easily approachable, can also be reached

conveniently.

5.

Large samples can be made use of and thus the results can be made more
dependable and reliable

The main demerits of this system can be listed here:

1. Low rate of return of the duly filled in questionnaires; bias due to no response is
often indeterminate.
2. It can be used only when respondents are educated and cooperating.
3. The control over questionnaire may be lost once it is sent.
4. There is built in flexibility because of the difficulty of amending the approach
once questionnaires have been dispatched.
5. There is also possibility of ambiguous replies or omissions are difficult.
6. It is difficult to know whether willing respondents are truly representative.
7. This method is likely to be slowest of all.
2.7 DATA COLLECTION
2.7.1 DATA COLLECTION INSTRUMENTS:The instruments used to collected are as follows:1. Questionnaire
2. Oral Discussion
2.8 DATA TYPE

Two types of data have been collected for analysis.

2.8.1 PRIMARY DATA
It has been collected with the helps of structured non-disguised questionnaire which were
personally administered to respondent. Both closed and open ended questions were used
to get the designed information. Questionnaires were designed for both consumers and
retailers. Important scales and ranking methods were used for collecting the primary data.

2.8.2 SECONDARY DATA

It has been collected with the help of Internet and oral discussion. It is used for a brief
history of liquid milk industry
.
SAMPLING DESIGN
It was a non-probability convenience sampling.

CHAPTER 4
MAJOR FINDINGS AND CONCLUSIONS
Now, in the end I shall recapitulate some of the major important points emerging from the
performance appraisal of the mutual funds carried out in this work. A summary of the
research methodology appraisal of the mutual funds carried out in this study forms the
subject matter of first section of this chapter. A summary of the major findings pertaining
to the appraisal of selected open ended equity schemes is given in second chapter.

SECTION 1
The study seeks to achieve the following objectives:
1. To evaluate the performance of different mutual fund schemes in term of their
returns and risks by applying Sharpe, Treyners and Jensen indexes.
2. To carry out the funds sensitivity to the market movements by calculating Beta.
3. To carry out a comparative analysis of the performance of mutual fund schemes
and that of market portfolio, i.e. NSE NIFTY, so as to bring out whether mutual
fund schemes are outperforming or underperforming the benchmark (NSE
NIFTY).

The reference period of the study for collecting data regarding daily NAVs, which forms
the very basis of the appraisal, i.e. 1,April,2005 to 31,march,2006.
The secondary data of NAVs and stock market index data is collected from different
internet websites, monthly reports issued by different mutual funds, newspapers and
magazines.

Due to large number of mutual fund schemes in existence, it is not feasible to analyse all
the schemes. Therefore, the analysis of mutual fund schemes is restricted to 24 schemes
including 4 of SBI, 4 of HDFC, 4 of Canbank, 4 of Birla Sunlife, 4 of Tata and 4 of
Tempelton. These schemes were selected on the basis of judgement and convenience
basis. To carry out return and risk analysis and evaluate risk adjusted performance of
mutual funds, farly large samples comprising of open ended equity schemes have been
taken on judgement basis.
The analysis has been carried out on the following dimensions:
1. Return analysis
2. Risk analysis
3. Risk adjusted performance measures

SECTION 2
This section gives a summary of the main points emerging from the appraisal of open
ended schemes.
The performance of open ended equity schemes has been satisfactory in terms of NAV
based returns. All the selected open- ended equity schemes have succeeded in producing
positive returns.
Regarding returns of open-ended schemes the study shows that Magnum Multiplier
performed better among all schemes launced by banks. While Tata Select Equity Fund is
best amona schemes launched by corporates. Magnum Multilpier perfor better in case of
overall comparison.
Considering all the open-ended equity schemes launched by banks, the risk level is found
at the lowest level in case of Canindex. While Tata Life Science and Technology shows
the lowest risk among all schemes launched by corporates. In case of overall comparison,
Tata Life Science and Technology shows the lowest risk.

In case of open-ended equity schemes launched by banks, the average Beta value
Canexpo is lowest. While on the other hand,

Birla Sunlife Buy India Fund shows the lowest

average Beta among open-ended schemes launched by corporates. In case of overall

comparison, Canexpo has produced the lowest average Beta.
According to Sharpes measure of risk-adjusted performance, the open-ended equity
schemes a very discouraging performance. For instance out of 24 schemes 15 schemes
show that they are underperforming. The number of outperforming schemes is limited to
9.
The percentage of outperforming schemes as per Treynors measure is lower than that
found on the application of Sharpe index. The number of outperforming schemes is
limited to 7.
Jensens Alpha has been found positive values in case of majority of the schemes. Except
Canequity-Taxsaver, Hdfc Capital Builder, Magnum Emerging Business Fund,
Franklin India Prima Plus, and Birla Sunlife Midcap Fund, there is no such scheme as has
underperformed.
A summary of top schemes on the basis of different variables are shown with help of
following tables.
TOP THREE SCHEMES ON THE BASIS OF THEIR AVERAGE DAILY
RETURN
Sr.
Schemes
Sponsor
Average Return
Rank
No.
1
Magnum Multiplier Plus
SBI
0.002725
1
2
Tata Select Equity Fund.
TATA
0.002604
2
3
Tata Equity Opportunities
Fund.

TATA
Table 4.1

0.002578

TOP THREE SCHEMES ON THE BASIS OF THEIR TOTAL RISK

Sr.
No.
1
2
3

Schemes

Sponsor

Total Risk

Rank

Tata Life Science and Technology

Tata Equity Opportunities Fund.
Franklin India Growth Fund

TATA
TATA
TEMPELTON

0.009007
0.010267
0.009785

1
3
2

Table 4.2

TOP THREE SCHEMES ON THE BASIS OF THEIR BETA

Sr.
No.
1
2
3

Schemes
Canexpo
Birla Sunlife Buy India Fund
Franklin Pharma Fund

Sponsor

Beta

Rank

CANARA
BIRLA
TEMPELTON

0.352256
0.489496
0.548723

1
2
3

Table 4.3

TOP THREE SCHEMES ON THE BASIS OF SHARPES INDEX

Sr.
No.
1
2
3

Schemes

Sponsor

SI - BMS

Magnum Multiplier Plus

Tata Equity Opportunities Fund.
Tata Life Science and Technology

SBI
TATA
TATA

0.058853995
0.050565327
0.048474607

Table 4.4

TOP THREE SCHEMES ON THE BASIS OF TREYNORS INDEX

Sr.
No.
1
2
3

Schemes

Sponsor

TI - BMS

Magnum Multiplier Plus

Birla Sunlife Midcap Fund
Canexpo

SBI
BIRLA
CANARA

0.000486073
0.000477504
0.000282167

Table 4.5

TOP THREE SCHEMES ON THE BASIS OS JENSENS MEASURE

Sr.
No.
1
2
3

Schemes

Sponsor

ALPHA

Tata Equity Opportunities Fund.

Tata Equity Opportunities Fund.
Tata Life Science and Technology

TATA
TATA
TATA

0.000820699
0.000820699
0.000746298

Table 4.6
In the last, I want to say that the importance of research and analysis in the mutual fund
industry can hardly be over emphasized; many Indian mutual funds are still devoid of
such culture. It is unquestionable that continuous research on any subject makes it attain
maturity and takes it from developing stage to developed stage. In developed countries of
the world none can think of operating in the capital market without the intelligent support
of the standard research.
The performance of mutual fund depends largely on the caliber of the fund managers in
structuring investment portfolio, portfolio diversification skills and the extent to which
market risk is reduced.

BIBLIOGRAPHY
Books Referred
Sharpe, William F, Investments, EEE Publication.

 Turan & Bodla, Performance Appraisal of Mutual Funds, Excel Books.

Gupta, S.P., Statistics, Sultan Chand & Sons.

Newspapers
The economic times
Financial express
Business standard

Websites
www.google.co.in
www.investmentmart.com
www.amfiindia.com
www.nseindia.com
www.valueresearchonline.com