After the grinding of each other for 7 months, Xinghua office and Hangzhou Hesoms Architectural Design Company have been incorporated into one union on Jun. 27,2006 and held the first staff meeting on Oct.12. The main employees of Hesoms and all the workers of Xinghua attended this meeting. Mr.Cheng Niansheng, the general manage of Xinghua Design Institute addressed in the meeting. He summarized the future development plan and the present condition for Xingha Institution. The chairman of the board, Mr. Song Jianliang, gave an excellent speech themed on Liberating the Idea and to Seeking the Truth from Facts (attached). The speech mainly introduced the present development condition, development mode, enterprise culture of Hesoms and set a goal and way of development for Xinghua Office in the future. This meeting enhanced the connection between Xinghua Office and Hesoms. It has a profound meaning to the future development of our company.

Liberating the idea to develop in an all around way

7 months later, Xinghua has been a member of Hesoms on Jun.27,2006. In a short period, our company in Hangzhou has achieved a great accomplishment. Facing to the developing design market in Taizhou and Jiangsu, we prospected the situation on how to get used to the market and get the fastest development in the future for Xinghua Institution. I would like to share it with everyone of you.  

一. A. About Hesoms in Hangzhou
(1.) the achievement of Hesoms
Within less than 2 years since the registration of Hesoms, our design works have been appeared in more than 30 cities all over China. The total sum of all the contracts is 100,000,000 which 20,000
,000 has been finished. The production value is increasing by 100% by every passing year. During that period we were awarded several awards in architecture area.

(2) The reason of our success
We can get the above achievements in such a short period is because we have changed our opinions: We have realized the system of mastered by the program leader on the basis of self management by the designers.
1．We have found the new development mode for design enterprise
①Technology innovation
Hesoms relies on the technological innovation for its great achievements. The key point for our innovation is: design with your heart and design happily. We judge our work from the satisfaction of the consigner, ourselves and the society.

②Operation innovation
Operational innovation means how to let the whole society understand and agree more about the goal and dream of Hesoms. By our sincere and serious attitude in our work, we have had a lot of long term customers. Our influential design works make it possible for us to occupy the local market. With the target of forming a unique design idea and view, we are exploring and researching the rode for city development. At the same time, we also cooperate with a variety of academic groups and magazines to enhance our strength. Until today, our designs have been received more agreement so that we can choose customers by ourselves instead of bidding. Our works are receiving more and more awards.

③Management innovation
In order to ensure Hesoms’s sustainable development and realize our dream，we must keep on innovating in technology and operation. However, to get this, we must keep on innovating on management. Management means have a good habit to realize our dream. For Hesoms’s aim, we must innovate in management. Different from normal design associations, we learn from the experiences from successful foreign companies and combine with modern enterprise system to form our unique mode.   

2.We have formed our enterprise culture
In these years of managing the company, we have understood the importance of enterprise culture. In the process of building our enterprise culture, we concluded our experience and unified the goal and prospect in the future. I would like to introduce for you by this opportunity.
① Hesoms’s principle: To be frank in life and work
②The operation rules of Hesoms:

Communicate with smart people; ally with successful enterprise; make the most important and best design in the local area.
③Hesoms’s attitude to talents:

First, they are people with good charactors;
Second, they are people who are very active;
Third, they have good ability in learning;
We are welcome and respect talents with above merits.
④ Hesoms’s attitude to work: design happily with your heart.
VALUES
Herson’s value
Keep the promise, to be responsible for the results

Active
Today’s performance is the basic requirement of tomorrow

Passion
To be passionate to the customers, cooperators and new technologies

Innovation
To be brave in innovation and keep your inspiration

Nicety
To meet customers’ requirement as possible as you can and to be accurate in work

Encourage
Encourage others and ourselves, communicate openly and make mutual improvement

Simplicity
Try to make works simply and orderly and focus on key matters

B. About Xinghua Design Office
(1.) Our goal and position
Our position: transform from a simple technology enterprise of planned economy period to an integration management enterprise of market economy period
Our goal: to be the first brand in Jiangsu
Realize 50,000,000 out put by our design within 3 years
Keep the increase by 50-100% every year

(2.) The plan to reach our above goal
1. Strictly operate under the modern enterprise system of the board system which is represented by chief manage
2. Brake old opinions to re-recognize the direction of our development and operation
Our advantages
① relationship: keep good relationship with the local government is equal to win the support from it
② qualification: will be the first A level design association after finishing the application for A quality design association at the end of this year
③ asset: we have our own office building and able to investment operation
④ Brand of Hersons: Brand operation is possible to promote prices. Hersons has owned a very good brand 

Our disadvantages:
① design units come to Xinghua to form a competition atmosphere and brake the monopoly
② the talents loss disordering the market
③ land developers form other places come here with advanced ideas which is even more advanced than our designers  
3.  Build new money-earning mode by four points as below:
①change the talent training mode from technological talent training to comprehensive talent training ②transform design out put appraisals to profit appraisals
③transform from simple products making to asset comprehensive operation
④ integrate all kinds of resources and advantages
At last, let’s approve and comment the goal and dream we set today by our action and its results. Wish you every success with Hersons!

Chairman of the board: Song Jianliang
Oct.12, 2006