First, HEADING signed strategic cooperation agreement with the shopping mall business unit of the Brilliance Group.
On October 19, 2004, HEADING and the shopping mall business unit of the Brilliance Group signed the strategic cooperation agreement, which means HEADING will service the system development of all the shopping malls of the Brilliance Group. This agreement not only confirms their good cooperation in the past, but also shows a new future for them.
Brilliance Group is the biggest Group in Chinese distribution industry. Its total assets reached RMB28.4 billion, with the net value assets valued at RMB8.4 billion. Shopping mall business unit is one of the eight business units of Brilliance Group. Shopping malls in Brilliance Group include No. 1 Babaibai shopping mall, Nanfang Friendship shopping mall, Xijiao shopping mall, Brilliance Youyi shopping mall, No. 1 Department Store, and Brilliance Shimao International Building. These shopping malls locate individually in the east, west, north, south, and mid of shanghai, cover almost all of the shanghai market. Among them, Shimao International Building is the new typical building on the Nanjing Road. By now, HEADING has provided high quality information system, service and support for Brilliance Group shopping malls, including Nanfang Friendship shopping mall, Xijiao shopping mall, Brilliance Shimao International Building, and Brilliance Tianfu shopping mall in chengdu.

Second, based on its' information system, HEADING helped shanghai Jiubai Building in setting up a new fashion mark.
Shanghai Jiubai Building, invested by SOGO and Shanghai No. 9 Department Store, is the first shopping mall that SOGO manages directly in Chinese mainland. It is a Japanese style shopping mall, has hundreds of high level brand, and is a new and fashion mark on West Nanjing road with high position and advanced management mode.
At the beginning, Jiubai has some choices. Finally, they chose heading, not for heading's powerful information system, but also for heading's serious working attitude during its' bidding period and implementation period. Shanghai Jiubai Building began trial opening in May 2004, and finally came into formal opening on September, 2004.

Third, Lianhua and Huashang succeeded in their integration, under HEADING's help.
When the last standard supermarket store began to use the new system at midnight, on December 24, 2004, Zhenjiang Lianhua had successfully finished their system switch. News from the information department of Huashang said the success meant that they could end the more than one year integration work since 2003, and they got a very steady basis for their business management, and the new system will bring them to a new period.
The success also means that HEADING begin to service all stores of Zhejiang Lianhua, including 78 big supermarket and 74 standard supermarket. The big supermarkets are named Shiji Lianhua, including all Jiayou Stores and all new big stores in the future. The standard supermarket are named Lianhua supermarket, including Wanjiafu Stores, Hangzhou Jiebai Fresh supermarket, and Linan Jiadeli supermarket.

Forth, HEADING developed system for Shanghai United Assets and Equity Exchange.
In June, 2004, HEADING reached agreement with Shanghai United Assets and Equity Exchange in developing system for the latter, including floor bidding system, trading system, custody center management system. This system has the following characters, such as high level platform, advanced technology, excellent extension ability, and good support for Shanghai United Assets and Equity Exchange's long-term development. Officials of Shanghai government had visited Shanghai United Assets and Equity Exchange several times, especially the floor bidding system.
Shanghai United Assets and Equity Exchange (SUAEE), approved by Shanghai Municipal Government, is a comprehensive platform for assets and equity transaction. SUAEE is an integrated market platform for all property rights in the society, which cover asset rights, creditor's rights, stock rights and IPR. Based in Shanghai and serving the whole country and the world, it is a specialized equity-capital market which provides the entrance and exit route for all kinds of investors.

Fifth, Bsteel project: high level application of technology.
In October, 2004, HEADING began cooperation with Bsteel to develop "The Ningbo Baoxin Ebusiness distribution platform" and provided technology training about Intershop Enfinity Multisite. Invested by the Baosteel Group, Bsteel provided the following services for the steel industry and other related industry, they are synergetic ecommerce based integration solution, internet technology and management, service support to firms' ebusiness strategy.
Bsteel determined to cooperate with HEADING, not only because HEADING is one of the first companies that had integrated the Intershop and the ARIS process platform, but also because HEADING has cumulated 10 years experience in the distribution field and has owned several successful cases. So heading could provide total J2EE based B2B solution.

Sixth, HEADING has begun to research on RFID, one of the most advanced technologies in the world at present.
Shanghai RFID demonstration center, located in Shanghai Modern Logistics Information Park, opened on December 10, 2004. Shanghai science and technology committee supervises the center; Shanghai Jiaotong University and Shanghai Modern Logistics Information Park undertake the major research work, while HEADING, SAP, Auto-ID lab. of Fudan University, Micro Electronics institute of Fudan University, Huashen Chip Card, and Yibao Logistics are cooperating institutes and companies.
Shanghai RFID demonstration center has realized automatic picking, automatic recognizing, automatic warehouse logistics center, intelligent storage racks, and future store. The future store demonstrated at the Shanghai International Industry Fair last November appealed social attention successfully. In a word, it covers the whole logistics chain from the suppliers to the final customers.
HEADING's system has integrated with RFID technology, helps the Shanghai RFID demonstration center to achieve the first goal of the SHRFID, and become one important part of the park.

Seventh, HEADING has successfully improved ARIS development in China.
HEADING became one agent of ARIS software in March, 2004. Later, HEADING held many activities to promote ARIS in Chinese market. On May, 2004, the seminar of IT methodology was held in shanghai. It contained four topics, such as IT methodology by Professor Dingyuzhang, business process management by Mr. Jiangzhiqing, method and tools in business process management by Doctor Ho Nan Choon, case analysis of firms' IT development by Professor Hanyongsheng.
Doctor Ho Nan Choon, presendent of IDS subsidiary company in Singapore, gave the first 5-day training of ARIS for Chinese users. Trainees came from Tongji University, Shanghai Commercial School, Shanghai Kedi, Bsteel, IDS subsidiary in china, and HEADING. Among them, Tongji University and Shanghai Commercial School have improved their teaching work with ARIS. Doctor Ho Nan Choon and Doctor Lilin also gave exellence lecture at heading's fifth user conference about business strategy and process management.
HEADING also launched the ARIS Club BBS for all ARIS users and potential users. Original ARIS learning book written in Chinese is firstly published in it. Many users are very interested in the BBS and have been members of the BBS. If you use ARIS as key word to search related information in www.baidu.com or www.google.com, you can see the ARIS Club BBS on the first page of the results. It shows the clubs' great impact on the public internet platform.
For ARIS further application in distribution field, HEADING has cumulated successful consulting experience. ARIS based process consulting and excellent IT solution will help customers of HEADING to improve their management greatly, and lead the industry development.

Eighth, Professor Dingyuzhang got the Special Award of Shanghai commerce chain industry.
Professor Dingyuzhang got the Award, not only for his contribution to leading his customers' practice, but also for his contribution to leading the theoretical research in this field. His theories about IT and management is unique and experience based, and gives great help to his customers, for example, shanghai KEDI, and other users in this filed.

Ninth, HEADING got the national innovation fund for the third time.
Innovation Fund for Technology Based Firms was set up by the state council in 1999, in order to support technological innovation of STFs in the form of appropriation, loan interest subsidy and equity investment. As a policy guide fund, the Innofund facilitates and encourages the innovation activities of STFs and the transformation of research achievements by ways of financing. In the meantime, it works to bring along and allure investment from the whole society so as to promote the establishment of a new investment mechanism conforming to the objective laws of market economy for technological innovations of STFs. Without aiming at profit-making for itself, the lnnofound is to contribute to the national economic structure adjustment and the growth of economy, taking revenue increase and job creations as the reward.
HEADING got the fund in 1999, 2002, 2004, respectively for the following project: commerce automation management system, automatic commerce management software based on Internet, and heading synergetic based ebusiness management system in distribution field.

Tenth, heading R&D building will finish soon.
Heading R&D building will finish soon. It shows our way in the past decade, and is going to spark our dream tomorrow.
Heading R&D building located in the National 863 Software Incubator Base in Shanghai Pujiang Town, covers 10 thousands square meters. The building has two floors, and its' building area reaches 6 thousands.