Hafei Aviation Industry Co., Ltd. is a China-based company primarily engaged in development, manufacture and sale of aerospace products. The Company’s main products include Z9 helicopter series, Y12 multi-purpose light aircraft series, H425 helicopter series, HC120 helicopter series, EC120 helicopter frames, aero spare parts and accessories of compound materials, as well as aero large parts, among others. The Company operates its businesses primarily in Beijing and Northeast China. As of December 31, 2008, the Company had one major subsidiary/affiliate, which involved in manufacture, sale and services of planes.