II. Establishment of Business
　　
The company is located at Changli County, Hebei Province, at the same 40 degrees north latitude with Bordeaux, France. On August 9, 1988, the company was formally established. Mr. Yan Shengjie, the first general manager, led all the employees to work hard on the 3-Nos (no water supply, no power and no roads) barren Liangjia Mountain day and night. However, after the main body of the workshop was just completed, the company encountered "Beijing June 4". In short of funds, some projects were forced to stop. General Manager Yan Shengjie led all employees to made concerted efforts, endured the hardships of an arduous journey. They work hard day and night. They finished installations of turning ferment tank, grape crusher and squeezing machine at the highest speed, and built 16 ferment tanks on their own. In the end, the winery was put into operation in the same year when it was built.
　　
For two years, the technical problem-tackling team and 28 employees of the company carried forward their spirits to endure hardships, insisted on high starting point despite of simple plant buildings and incomplete machines and implemented "0IV" International Standard in a determined manner. Through their unremitting efforts, they tackled problems one after another, applied internationally advance techniques in an innovative way and vinifyied Huaxia Great Wall Chixiazhu Claret, successfully finishing the "high-level claret" subject project assigned by the State Science and Technology Commission. In December 1989, they returned from France with the Special Award at the 29th France International Wine Appraisement Fair, winning for the Chinese nation unusual glory attracting the whole world's attention.

III. Development

(1) Unifying Strength and Vinifying Fine Wine
　　
After establishment of the company, it became a technology-oriented small-sized enterprise (28 employees, 2500M2 plant buildings and RMB 4 million fixed asset). Innovative and practical, employees made great efforts for development in the direction of international (single variety, vintage and origin) high-level claret. At first, they built a green demonstration zone around the Phoenix Mountain, fostering special producing areas of Chixiazhu A, B and E in Huaxia Vineyard. Meanwhile, they fostered high-quality raw materials bases around Liutian Village Lulong County, and set up one 3000-ton claret ferment station. They implemented professionalized internal management and give prominent attention to quality insurance. Their elaborately vinified Great Wall Claret topped all others in quality and won the Gold Prize at the 14th International Food Exposition in Paris in 1990. After that, Great Wall Claret made entries into European markets including UK, France and Germany. Exports to such markets grew at an annual rate over 40%, from 45 tons in 1991 to 725 tons in 1999, realizing profits and tax contribution of RMB 40 million and sales revenue of RMB 150 million. Huaxia became the first claret export-oriented enterprise in our country, and received titles as Hebei Province "Advanced Technology-oriented Enterprise" and "Hi-tech Enterprise", etc.

(2) Exploiting Market and Developing at High Speed
　　
The company initiated selling agency system. By right of quality advantages of export products, the company grasped opportunities in Guangdong market and drove rising of domestic claret markets. Their products were sold to all major cities throughout the country, and annual sales volume grew rapidly from 160,000 cases to 500,000 cases. To adapt to market demands, the company built up another ferment station and imported another 2500 bottles/hour bottling production line. All employees worked hard without taking any holidays for three successive years. And the two production lines ran all day long. In 1998, its claret production reached 6127 tons annually, 20 times as many as that in 1995. High-speed development made Huaxia Great Wall Claret leaping to become No. 4 in the same sector. In all previous quality appraisements, Huaxia Great Wall Claret topped all others with its excellent quality. It won national, provincial and city's "Famous Brand Product Prize", and became the only domestic "Export Brand". The enterprise was appraised as National Quality- and Benefit-oriented Enterprise and Hebei Province Top 10 Agriculture Industrialized Enterprises.

(3) 10000-ton Scale, Modernized Management
　　
To adapt to internationalization of market, and enhance core competence after our country's accession to WTO, the company expanded its production scale at a high speed. In 1998, the company invested RMB 41 million to carry out phase-II infrastructure expansion, building another 8000M2 underground wine cellar and bottling workshop, importing a set of 10000-bottle/hour bottling production line and 5000 oak wood barrels. And the company applied French vinifying technologies to produce high-level products and realized the annual production scale of 10000 tons. The company regarded human as the core and paid close attention to improvement of quality of employees, absorbing professional talents from national institutes of higher learning for several times. Today, professional technicians over junior college level in the company account for 51% of its total employees. With development globalize and integrated operation, the company realized management through computer network. In 1999, the output of claret reached 7251 tons. And the output in the first half of 2000 increased by 21% over the same period of the previous year. Its production of claret becomes No. 4 in the same sector. Huaxia Great Wall has developed into one of China's Top Three Wine Brands, and the company is going forward to a modern enterprise with its advantages in "6-Strong and 6-Special".