Shanghai He Located in Xidu Industrial Zone in Fengxxian District, Shanghai, Hui Security Product Co, Ltd is a Sino-Canadian joint venture of motorcycle security helmet R&D, production and exporting trade. Founded in March 2002 and put into operation in September of the same year, He Hui has acquired the ISO 9001 certification in the same October. For two years all business has developed rapidly with the exporting foreign exchange amounting to 2.3 million US dollars in 2002 of 100,000 helmets’ export. And in 2003 the foreign exchange hit 12 million US dollars, 5.2 times of the previous year, and 5 times of the exporting helmets of 2002. For the first half of 2004 the figure reaches about 8 million US dollars and 450,000 exporting helmets, already a big increase of the same time last year. It is predicted that this year will hit a number of 20 million US dollars foreign exchange and 1 million exporting helmets, making He Hui become one of the biggest bases for motorcycle helmet production and exportation.

He Hui has huge achievements in its product authentication and brand building: He Hui acquired the European ECE Certification in 2002 and US DOT International High Standard Security Technology Certification in 2003, to be one o f the few helmet producers who acquire both European and American Certifications at the same time. In 2004, He Hui acquired US SNELL Certification that symbolizes the highest security technology level in helmet industry and Australia AS1698 Security Technology Certification, therefore He Hui becomes the producer as well as the exporter of most certifications in helmet industry in China. At the beginning stage of the operation, He Hui insisted on having its own brand while also doing the processing for others. So far its own brand names of “MAX”, “VCAN”,“SAFEBET”,”BAIDE” etc. have registered in America and other 40 countries in Europe and the world. Among which “MAX” and “VCAN” had a 9.2% share of helmet market in Europe, and 20% in France; “SAFEBET” is the No.1 brand in South America and Middle East, with the occupying rate of 28%; “BAIDE” is produced by its subsidiary of Hengfeng, Zhejiang as the No.1 brand in domestic market with the share of over 25%. No matter domestically or overseas He Hui has enjoyed a ever-more-popularity of its brands.

There are many factors for such great development in so short a period of time. China’s reform and opening up, along with the ever-globalization provide for He Hui a good “age”; while wise policies and scientific management of different governments of Shanghai promote the rapid economic development to prepare Shanghai as a modern municipality of diverse culture and international standard---which provide for the enterprise good investment “environment”; and also full support from friends all over the society and the efforts of the leaders as well as the whole staff together contribute to the ultimate development of the company as “Human Resource”. Ni Huajie, the CEO as well as the general manager of the company founded He Hui and is at the core of the company leaders. Besides the external factors for development, he summed up the internal drive for so rapid development of the company as follows:

Clear strategic thoughts

Strategies go before the development, which is the basic operation rule for enterprises. And the leaders of the company shall be quite familiar with this. At the beginning of the company, the leaders have already had clear conceptions and thoughtful designing for the direction of the company, and constantly prove the feasibility of the strategies during the process of development and make prompt adjustment to some impractical parts. He Hui has set up the complete strategy-making framework---- directorate committee. And the membership of the committee totally overthrows the convention to include not only shareholders but some highly-qualified professional managers of different specialty, all of whom have good decision-making capability to control the present and predict the future to ensure from different aspects the right direction of the company’s development. As He Hui attaches great importance to the study and control of the strategies from the very beginning with clear thoughts, it strengthen the solidarity and conformity of the internal staff to make every one in the same direction for advancing and thus avoiding many internal wastes and losses. Meanwhile no mistakes of direction or big decision-making has ever occurred since the foundation of the company and all of these promise the super-speed of its development.

Accurate market orientation

Through complete survey of the world helmet market, He Hui locates its major targets in Europe, America, Japan and some other developed countries and regions worldwide. The consumption level of these markets is relatively high with a shorter period and a bigger capacity of the market. At the same time, there are still some room and chances in spite of the fierce competitions there.He Hui makes advantage of the lower cost of production in China to design, develop and produce the high quality products of its own brand particularly for these markets and then sells to the markets of developed countries such as European and American and Japanese markets at a middle-or-low price. Due to the accurate orientation of the market and right choice of the entrance to the market, the sales volume increase year by year with the short of supply for the huge demand. At present the series of products of its own brand has been widely accepted all over the world and the sales network in European and American markets have reached nearly 1000, among which there are ten supermarkets from both continents. We have already set up long-term steady business partnership with over 100 clients and many other famous international groups from 32 countries such as America, Germany, France, Spain and Italy etc., for instance with Bach Group of Germany and long-term exporting order contracts with supermarkets of Walmart, Carrefour and LIDL etc.

The following plans for the company are to further expand the production as well as the sales for middle-and-low end products, to enter the world hi-tech market and to build the brand image by all means of practical marketing methods to create world-known brand name of China. Therefore He Hui has already set up the sales branch in L.A. of America and the sales network to sell the products of its own brand names in order to expand the American market and markets in other countries in North America with a higher occupying rate in the regional market. In addition, He hui will establish sales branches in France, Germany, Spain, Italy and Japan to enhance the penetrating influence of its brands in the market to truly realize the internationalization and group operation. He Hui has input huge investment for the factory construction on a large scale to solve the discrepancy between production and sales. And meanwhile it has introduced advanced production equipment to further improve the craftsmanship and technology so as to substantially increase the productivity and quality. In July 2003, He Hui increased the investment to set up in Songjiang District Shanghai Weikai Sporting Goods Co., Ltd to further expand the production and the scale of exportation.

Constant creation of new products

With the big capacity of the market, the products must be with energy and good quality. Fierce competition comes along the huge capacity of the markets in developed countries, especially in Germany, Spain and Italy some longstanding supplier of helmets have great development as well as the huge influence of the brands. To compete with these international giants and thus have a part of share in the market will require strategy as well as good products. Since the foundation of the company, it has attracted many famous experts of the field and technicians with years of R&D experience in helmet products, to form a big team of R&D, which is oriented by clients to constantly design and develop the helmet products meeting the market’s needs. At present He Hui has completed designing and R&D work of two generations of products, and smoothly put into production lines and sales. And both of them receive welcome and praise form the market and the clients. The designing standard of V120,V130 and V550 has brought to both domestic and overseas clients the hope of self-designing ability of motorcycle helmet industry in China.

As a consumable for citizen, the market demand of helmet changes swiftly, which requires the company to continuously produce new products. Therefore, on one hand, He Hui has invested huge sum of money to introduce the international advanced lab equipment for development to build world-class labs, which will efficiently support the R&D of new products to develop toward higher-quality.On the other hand, He Hui set up technology R&D center in Europe and regularly send its staff to visit the exhibitions all over the world to keep up with the changes of international market, and get a good control of the development direction of the new products and technology. The company has also carried out technological communication and cooperation with famous companies both home and abroad by introducing the world-class designer as the technological consultant and introducing the advanced designing ideology of products to promote the development of the products with its appearance and comfort ability and security meeting the international standards and trends. He Hui will make full use of its R&D strength on new generation of motorcycle helmet designing and try to explore the sports related products such as skiing helmets, bicycle helmets and shields etc. to diversify the products range.

Excellent culture and team

Rigid rules and regulations are the guarantee of the development of a company, and excellent corporate culture is the background support. Since the establishment of the directorate committee, it has paid much attention to the construction of the corporate culture and tried its best to build a win-win stage for the staff to develop themselves with the development of the company. The ideology attracts many high-quality talents of ambition from home and abroad to formulate a team of passion, responsibility and power. Since 2003 He Hui has been devoted to building up a organization of study and the mutual prospect for company as well as the individual staff. He Hui not only encourage the staff’s self development but also provide good training inside and outside the company to constantly promote the level and skills of the staff from different sections. In the previous year, He Hui has put a sum of 800,000 for employment training. And since March 2004 the company has introduced corporate tutorship culture with its own newspaper published, in addition to the broadcast station, arts group and cultural center for colorful activities of culture and sports, which will help build the team spirit and the humane ideology.

He Hui also has sincere social responsibility besides the economic gains. It has a eye on the social development and the economic development, with passionate devotion to social welfare course, making active contribution to promote the regional economic development and bring about better social benefit. In April 2004, with the recommendation of Fengxian Government, CEO Ni Huajie was awarded as one of the “Ten top Entrepreneurs in Fengxian District”.

Looking back to the history we have had great achievements and looking forward into the future we have a long long way to go. For 2005 the goal of He Hui is to reach 35 million US dollars of its exporting foreign exchange of 2 million helmets, and to form a preliminary structure of group operation. Our long-tern target is to develop security products in sports, and try our best to build a win-win stage for a world-class helmet brand, and develop the company into a lasting enterprise based on group operation worldwide with the capital operation at its core. We also realize it is a long road to go in order to have a steady footing in the ever-heated competition while maintaing the speed and strength to advance. We will encounter many unexpected difficulties as well as challenges, however He Hui will keep its steps and strive for the best. We believe with the full support of local government and friends from all over the society, and under the leadership of the committee and with efforts of all staff together, we will develop steadily and rapidly!