Production-oriented ----- commercial real estate-oriented ----- brand-based ----- diversification strategy ----- international strategy

　　Productive-type Strategy

　　The first step to starting a business - school-run factory

　　In November, 1982, inspired by the spirit of the Third Plenary Session of the Eleventh Central Committee of the Chinese Communist Party, Zhao Jianguo, a teacher of the Beijing No.40 Middle School, submitted his resignation and hoped to go into business. Later in May, 1984, Zhao Jianguo formally (launched Jianguo Wooden Vessel Factory) resigned and set up a factory.

　　Initial success – Jianguo Wooden Vessel Factory became the initial state of Jimei Group.

　　In June, 1984, Zhao Jianguo founded Jianguo Wooden Vessel Factory. In the very beginning, the conditions were unfavorable due to lack of funds and facilities, but Mr. Zhao and his intimates treated these as challenges which motivated them to work hard. This contributed to the formation of the initial enterprise culture. Once a teacher, Zhao Jianguo loves his country and attaches great importance to education. On the wall of Wooden Vessel Factory you can see the Great Wall and four Chinese characters “respect teachers and value education”.

　　By the end of 1984, supply of furniture fell short of demand. By seeing that, Mr. Zhao introduced a new type of mattress which became popular soon. Similarly, he introduced the artificial leather sofa from Guangdong that also sold well.

　　A similar problem occurred in the market in 1987. Once again Jimei people took this opportunity to increase market share by introducing European-style headboards, curved sofas and SYMBOL mattresses to the market. All of these made Jimei even more popular among customers.

　　In 1990 Zhao Jianguo started up Jinglian Jimei Furniture Factory in Wuqiao, Hebei province. Then Jimei Sofa Factory was established in November, 1992 in Beijing, afterwards, its name was changed to Jimei Furniture Company. After moving to Yufa Town of Daxing District in August 2000, Jimei Furniture Company built eight factory buildings, which became the biggest production base of furniture and sofa in North of China. Jimei came out top in Beijing furniture market, and its products were graded as A-level by Quality supervision and inspection department of the People’s Republic of China. “Small profits with quick turnover”, as Jimei’s business philosophy helps maintain an orderly market in Beijing.

　　Commercial Real Estate Business Strategy

　　Qualitative leap----Wukesong Jimei Furniture City realizes the change from productive-type to management-type.

　　In the eighties, Jimei go through the change from productive-type to management. In the nineties “showroom-sale” became a new business mode of Jimei, that is, Jimei had its own furniture marketplace and then rent showrooms to furniture dealers. In 1995 Wukesong Jimei Furniture City began to take shape, and after several years’ expansion, it became a large-scale furniture marketplace including 5 buildings(60000㎡).

　　At a time when the company rapidly expanded, because of the conversion of land during Olympics, the government issued an order to remove unconditionally Wukesong Jimei Furniture & Building Materials City before the beginning of 2001. Putting the interests of the country above everything else, Jimei, under the inspiring leadership of Zhao Jianguo, withstood this severe test under various pressures. Calling up actively Jimei’s staff and tenants, Jimei, intense but orderly, fulfilled the task in time. Although losing 40 million yuan, Jimei didn’t claim for compensation and voluntarily removed all construction wastes.

　　Keeping up in adverse current-----Dinghui Bridge Jimei Furniture & Building Materials City started all over again.

　　Two months after Wukesong Jimei removing, Jimei transformed Motor-Car Repair and Assembly Plant near Dinghui Bridge into Dinghui Bridge Jimei Furniture & Building Materials City that opened again on March 28th, 2001.

　　More than half of old tenants rent showrooms in new marketplace again; they said they are die-hard tenants of Jimei. New marketplace have six business buildings (nearly 70000㎡) including more than 700 showrooms and provide more than 2000 job opportunities. For several years, by means of good reputation, high-quality service and standard management, Jimei obtains more and more economical benefit and social benefit. That marks that Jimei smoothly transformed a productive-type enterprise into management-type enterprise.

　　Brand Strategy

　　Brand--- Dahongmen Jimei Furnishings boosts Jimei’s brand recognition

　　Responding the call of reforming state-owned enterprises, on January, 2004 Jimei Group contracted with Capital Strip Steel Factory to build the biggest furnishings & building materials trading center in Bejing. On October, 2004, Jimei Furnishings World, located at Dahongmen of Fengtai District, grandly opened for business. Only nine months, by rebuilding original solid and old workshops, a spacious and bright furniture & building materials marketplace appears in the south part of the city covering 80000 ㎡. To conform to the trend of the industry development and to increase competitiveness of the brand, Brand Flagship Alliance(70000㎡), Dahongmen second-stage construction, started operations on October, 30th, 2006. It was well integrated with Hall 3, which formed a brand flagship area with a total area of 100,000㎡. That’s a sign of great progress of brand strategy of Jimei. Soon after, International Building Materials Circulation Center also went into business formally in the summer of 2007. That means that Dahongmen Jimei Furnishings, a large-scale “one-stop” shopping platform covering 300,000㎡and specializing in Furniture, building materials, fitment and adornment was formed in the south part of the capital. Brand strategy of Jimei will develop better and better.

　　Diversification Strategy

　　To build a diversified Jimei--- the trend

　　Jimei Furnishings experienced changes and all you can feel is high standard services either in Wukesong Jimei Furnishings, Dinghui Bridge Jimei Furnishings or Dahongmen Jimei Furnishings, a large-scale furnishings mall. It has grown to be Beijing’s largest comprehensive furnishings mall and earned a good reputation as the leader in Beijing’s furnishings market. In 2005 and 2006 when companies such as IKEA and EASY HOME launched their expansion programs, Jimei was committed to upgrading its services at all levels from managing philosophy to talents training and corporate culture.

　　In December, 2007, Langfang Jimei Furnishings (50,000m2) was opened, marking Jimei’s first step to diversify itself. As Jimei’s first base in Langfang, soon it took the leading place in Langfang’s furnishings market, thus adding Jimei’s area to 40,000m2. In 2008, the economic crisis broke out. While many furnishings enterprise got strapped, Jimei started a series of expansions.

　　In Dahongmen Jimei Furnishings, Classical Mahogany House was opened in May, 2009, followed by Euro-American Furniture Hall in June, 2009 and Hong Kong Brand Hall was opened on August 8th, 2009. After that, Beiyuan Jimei Furnishings went into a soft operation during the National Holiday. Jimei impressed people by its speed of expansion. For example, it only took Jimei 45 days to prepare for the opening of Beiyuan Jimei Furnishings since it began selecting a location on August 16th, 2009. Meanwhile, people can get a glimpse of Jimei’s determination to offer first-class services.

　　Meanwhile, Jimei stepped up its expansion. In June, 2008, Jimei co-operated with Tianjin Jinlan Group and launched its Jimei Tianjin project--- a high-class furnishings mall (150,000m2) will be finished by the end of 2009 and the mall will officially go into operation in 2010. To look back, we can see that Jimei people experienced difficulties and successes.

　　International Strategy

　　Going global---leading Chinese enterprises to enter the international furnishings market

　　Moreover, Jimei regards the economic crisis as an opportunity to enter international market. Based on its long term research on European furnishings market, Jimei French project has achieved great progress by signing with a property company on August 25th, 2009. Jimei French project is located in Ile de France and is due in official operation in 2010. The project aims to be a furnishings & building materials base, radiating to the whole Europe. It is actually a channel connecting Chinese enterprises and international furnishings market and will surely facilitate domestic enterprises’ entry to the world.