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Organization Structure
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The Group has four holding (equity participation) subsidiaries:

Shandong Hualu-Hengsheng Chemical Co., Ltd. (1)

    Shandong Hualu-Hengsheng Chemical Co., Ltd. (stock named ¡°Hualu-Hengsheng¡±, stock code 600426), a large-scale integrated enterprise mainly engaged in manufacturing chemical fertilizers and in chemical industry, is one of China¡¯s top 500 chemical industrial enterprises. Its products cover three series and more than ten varieties, such as carbamide, carbinol, formaldehyde, DMF, methylamine, oxygen, nitrogen, argon, hydrogen and carbon monoxide. It is one of the largest chemical fertilizer manufacturers nationwide and the largest DMF suppliers worldwide. Its leading product, ¡°Youyi¡± Brand carbamide, is named the China Top Brand and a national inspection-free product.

    It has obtained the ISO9001 Quality System Certificate, ISO14001 Environment System Certificate and OHSAS18001 Occupational Safety and Health System Certificate, and its various economic indicators rank in the forefront among Chinese enterprises of the same type. Since the time when it was listed, its economic benefit has increased over consecutive years. In 2006, it ranked No. 64 in comprehensive performance out of 1,400 Shanghai and Shenzhen A-share listed enterprises. It moved forward by 63 positions in four years and became one of the top 100 in comprehensive competitive strength. It recognized by the investors as one of the listed companies with the greatest growth.

    With strong technical strength and solid management foundation, the company has formed a mature management mode with distinct characteristics, built solid strategic partnerships, and won customers. It owns many national patents and some innovations have won the State Management Modernization Innovation Achievement Award and the Scientific & Technological Progress Award.

    In the next few years, Hualu-Hengsheng will strive to create a most dynamic workforce and a most competitive nitrogenous fertilizer enterprise, establish the position as the most competitive supplier of basic chemical industrial raw materials and become a large-scale coal chemical industrial base in China.

Dezhou Thermoelectricity Co., Ltd. of Shandong Hualu-Hengsheng Group (2)

    Dezhou Thermoelectricity Co., Ltd. of Shandong Hualu-Hengsheng Group, a large-scale state-controlled enterprise mainly engaged in thermal and electricity production, is an enterprise with the largest installed capacity and development scale and the central heating supply unit of Dezhou at present. It has made outstanding contributions to the economic and social development of Dezhou in the past years.

    With complete management systems for market development, design and construction, operation, maintenance, service and heat supply, the company has gained good economic and social benefits because of its stable heat source and excellent heat supply service. Facing increasingly sharp market competition, the company implements the scientific outlook of development, increases input in technical reform consistently and enhances its core competitive strength. In the next few years, based on its industrial, technical, management and market advantages, the company will continue to expand the scale of its main business and achieve the all-round development of heat supply, power generation and related industrial efforts.

Dezhou Dehua Equipment Engineering Co., Ltd. (3)

    Dezhou Dehua Equipment Engineering Co., Ltd. is a new joint-stock enterprise held by Hualu-Hengsheng Group with multi-investment, its main business including installation engineering for chemical and oil equipment and pipelines, design and manufacturing of industrial pressure vessels and heat exchangers, anti-corrosion and heat insulation engineering, anti-corrosive treatment of equipment, high-temperature curing process, fitting and processing of chemical industrial equipment, special maintenance of industrial equipment and hot spraying engineering, low-temperature zinc-plating, etc.

    The company boasts strong technical power, professional engineers and technical personnel in chemical industry, machinery, engineering, anti-corrosion, building and furnace-making, and a workforce with complete specialties, skilled techniques, rich experience and good quality. It has advanced equipment, complete inspection means, scientific management, as well as physics and chemistry laboratories, welding laboratories and flaw detection rooms. It also possesses over 200 main devices and equipment and over 30 inspection and test equipment. It is mainly engaged in manufacturing of pressure vessels, heat distribution pipelines for chemical and oil equipment, industrial pressure pipelines, various combination valves used in carbamide production, compressor fittings, Roots blower fittings, various compressors and blower rotors. It also provides special maintenance. All the processes are controlled in accordance with ISO9001:2000 Quality System Standard. The pressure vessels produced by the company fully meet the requirements of Pressure Vessels Safety and Technical Supervision Regulation and GB150. A pattern of diversified and large-scale production and operation has gradually taken shape. At present, the comprehensive strength of the company is dominating the industry in Dezhou.

    Based on its technical, management, asset, brand and market advantages, the company consistently increases input in product research and development and expands industry chains. The special heat exchanger independently developed by the company is in the leading position in China. With ¡°creating high-quality engineering and ensuring customer satisfaction¡± as the object and ¡°being pragmatic for perfection and improving persistently¡± as the quality policy, it will take an entirely new posture to meet the challenges of the market.

Dezhou Minxin Service Co., Ltd. (4)

    Dezhou Minxin Service Co., Ltd. is a special service company built on original service department of the Group, is mainly engaged in service such as estate and property management. In recent years, with marketization as the guidance and society-oriented, the company expands service and business such as commerce, trade, transportation, medical treatment, hotel service, catering and virescence, and its profitability is greatly improved.