About HUICHENG INTL H Company

We are a rapidly growing company engaged in clothing design, production, marketing and sales in China, focusing on menswear. We operate a number of internationally renowned brands, focusing on providing a variety of men's casual clothing, including men's casual, outdoor leisure, casual wear and accessories to middle- and high-income consumers. We design, manufacture and sell products from brands such as Barbour (Barbour), JEEP (Jeep), Maxim's (Maxim), and Santa Barbara Polo & Racquet Club (St. Paul's) under a license. We obtained intellectual property rights for clothing products from London Fog, Zoo York, and Artful Dodger brands in Greater China in 2009 and 2012, respectively. In addition to our authorized and own brands, we also operate Henry Cotton's, LINCS (LINCS), Manhattan (Manhattan), and MCS (formerly Marlboro) brands in China through the establishment of joint ventures with joint venture partners. In terms of total retail sales, the two brands JEEP and São Paulo are leading brands in high-end casual menswear in China. We sell our products through a vast sales network comprised of retail outlets operated by self-operated and third-party retailers in 244 cities across 31 provinces, autonomous regions and municipalities in China. As of June 30, 2014, our sales network has a total of 587 self-operated retail outlets (mainly including self-operated counters and specialty stores) in major Chinese cities such as Beijing, Shanghai, Chengdu and Shenzhen, and 705 retail outlets operated by third-party retailers in other Chinese cities such as Hohhot, Urumqi, and Zhengzhou. We believe that our sales and retail model, which combines a balanced combination of our own retail outlets and retail outlets operated by third party retailers, has enabled us to rapidly develop and enter the huge Chinese menswear market. We launched our e-commerce program in 2013 to reduce the inventory of seasonal products through online discount platforms, online third-party retailers, and online retail stores. We seek to differentiate ourselves from our many competitors through multiple menswear brands, each with a unique style, conveying a unique philosophy and targeting a specific customer base. From a strategic point of view, we choose authorized brands that have established a reputation, believing that this will attract male customers in the middle and upper income classes in China. The authorized brand's established market popularity and goodwill enable us to quickly enter the Chinese market for men's and gentlemen's leisure, outdoor leisure and casual wear. We attach great importance to the design and style of our products. In addition to exploring design concepts through typical channels (including checking fashion publications, attending fashion shows, and analyzing data on consumer behavior), the design team also collaborated with the world's top designer Mr. Zhu Qinqi, senior Barbour designer who has served the British royal family for many years, the talented MCS Italian design team and fashionistas, including Mr. Tse Tingfeng, to keep up with the latest trends and new design trends. Therefore, we believe that the Group's design team has an in-depth understanding of the trends in the men's casual, outdoor leisure and casual wear market. Our supply chain model is to outsource most production in order to keep production costs to a minimum. We believe the outsourcing arrangement allows us to focus on our core strengths in brand selection, design, and sales management to minimize the need to invest in large-scale production facilities and avoid the cost of maintaining personnel during off-peak production periods. We have our own production facility in Dezhou, Shandong, which is mainly used to produce pants — one of our main products.