*ST Bit 2004 Semi-Annual Report

Company Overview

1. Company Name: BIT TECHNOLOGY HOLDING CO., LTD.
2. Legal Representative: Lü Bangbai
3. Secretary of the Board: Huang Yawen
   • Contact Address: Room 1702, Wisdom Plaza, No. 488 Wuning South Road, Shanghai
   • Phone: (021) 52957163 - 106
   • Fax: (021) 52987981
   • Email: huangyw@bittech.com.cn
4. Registered Address: No. 99 Qinjian Road, Shanghai
   • Office Address: Room 1702, Wisdom Plaza, No. 488 Wuning South Road, Shanghai
   • Postal Code: 200042
5. Company Website: http://www.bittech.com.cn
6. Announcement Newspaper: China Securities Journal
7. Stock Exchange: Shenzhen Stock Exchange
   • Stock Abbreviation: *ST Bit
   • Stock Code: 000621
8. Initial Registration Date: May 25, 1993
9. Last Registration Change Date: April 10, 2003
10. Accounting Firm: Shanghai Lixin Changjiang Certified Public Accountants LLP

Important Notice

The Board of Directors and its members guarantee that the information contained in this report is free from any false records, misleading statements, or significant omissions, and they bear individual and joint responsibility for the authenticity, accuracy, and completeness of its content. Directors Mr. Xie Tianjun and Mr. Zhou Yage were unable to attend the meeting due to work commitments and authorized Chairman Mr. Lü Bangbai and Director Mr. Zhang Lu to attend and exercise voting rights on their behalf. Independent Director Mr. Chen Zhanyun also authorized Independent Director Mr. Zhang Youli to attend and exercise voting rights on his behalf. Directors Mr. Zheng Yuguang and Independent Director Mr. Dai Xiaobing were unable to attend the meeting due to work commitments. Shanghai Lixin Changjiang Certified Public Accountants LLP issued an audit report with a qualified opinion and explanatory paragraph for the company. The Board of Directors and the Supervisory Board have provided detailed explanations regarding the relevant matters, and investors are advised to read carefully.

Table of Contents

1. Company Basic Information ------------------------------------------------------------------------------------- 3
2. Changes in Share Capital and Major Shareholders ------------------------------------------------------ 5
3. Directors, Supervisors, and Senior Management ----------------------------------------------------- 7
4. Management Discussion and Analysis --------------------------------------------------------------------- 8
5. Important Matters --------------------------------------------------------------------------------------------- 13
6. Financial Report ---------------------------------------------------------------------------------------------- 25
7. Documents for Inspection ----------------------------------------------------------------------------------- 46

Company Basic Information

(1) Company Basic Information

1. Legal Chinese Name: 比特科技控股股份有限公司 Legal English Name: BIT TECHNOLOGY HOLDING CO., LTD.
2. Legal Representative: Lü Bangbai
3. Secretary of the Board: Huang Yawen
   • Contact Address: Room 1702, Wisdom Plaza, No. 488 Wuning South Road, Shanghai
   • Phone: (021) 52957163 - 106
   • Fax: (021) 52987981
   • Email: huangyw@bittech.com.cn
4. Registered Address: No. 99 Qinjian Road, Shanghai
   • Office Address: Room 1702, Wisdom Plaza, No. 488 Wuning South Road, Shanghai
   • Postal Code: 200042
5. Company Website: http://www.bittech.com.cn
6. Announcement Newspaper: China Securities Journal
7. Stock Exchange: Shenzhen Stock Exchange
   • Stock Abbreviation: *ST Bit
   • Stock Code: 000621
8. Initial Registration Date: May 25, 1993
9. Last Registration Change Date: April 10, 2003
10. Accounting Firm: Shanghai Lixin Changjiang Certified Public Accountants LLP

(2) Major Financial Data and Indicators

Note: Excluding non-recurring gains and losses