· Starting from RMB300

In September of 1982, inspirited by Mr. Li Wenman, together with Mr. Wan Anbao and Zhao Guanglin, they raised the RMB300 to set up a factory to manufacture potassium pyrophosphate in the Village of Duan, a suburb of Xinxiang City. It was during a time when money was hard to come by. Li Wenman managed to pocket more than RMB100 by selling over 600 kg of wheat of his own, and Wan Anbao picked his share of more than RMB100 from his wife's dowry money. They borrowed an operating license from the Village of Duan Chemical Factory and rent 3 abandoned sheds which were used for feeding cows and horses, and thrilled by their persistent spirit and enthusiasm for hard work, They reached the remarkable revenue figure of RMB 230,000 by the end of 1984.

· Xinxiang Zhongsheng Chemical Factory

At end of 1984, they invested all of the RMB 230,000 revenue and an additional RMB20,000 from investors to establish the first enterprise for Huanyu The Xinxiang Zhongsheng Chemical factory, mainly manufacturing pyrophosphoric potassium and ammonium citrate for the electroplating industry. Later the same year they put into production a production line for the manufacture of nickel sulfate, the material used for rechargeable battery manufacture.

By upgrading in both scale and administration, corresponding adjustments and reforms were carried out continually in enterprise orientation and strategy.

· Xinxiang Suburb Oil Additive Factory

In 1985, another RMB 650,000 was invested in the Zhongsheng Chemical Factory to form Xinxiang Suburb Oil Additive Factory, which was engaged in development, production and sales of slopping agents for derricks and chemical products.

· Xinxiang Eighth Chemical Factory

The total industrial GDP for the enterprises run by the first generation of Huanyu Group had totaled RMB 2 million up to 1987, during which time a total of RMB 2.15 million was raised (with fixed assets of RMB 650,000 and cash flow of RMB 1.5 million) and the assets, business of Xinxiang Zhongsheng Chemical Factory, Xinxiang Oil Additive Factory were incorporated to register and found the Xinxiang Eighth Chemical Factory, which dealt with the production and business of mineral salt, slopping agent, inorganic chemical material, electroplating of nickel to steel sheet, and chemical agents (inclusive of dangerous chemicals). With insight and entering the market with the right product at the right time, The Company increased its industrial GDP to RMB 6 million that year and rapidly grew into a manufacturer of active material for nickel-cadmium alkali batteries, with the greatest variety of products, the best quality and the largest production capacity across the country.

· Xinxiang Suburb Chemical Science Research Center

Demand by the high tech needs of the rechargeable battery industry for chemical material for manufacture which the company had stepped into, the Eight Chemical Factory became first to set up a research institute within an enterprise Witnessed in March 1991 the birth of the Xinxiang Suburb Chemical Science Research Center, which by offering the payment of high salaries attracted specialists from professional colleges and scientific research organizations to devote their research and development. The center greatly promoted product quality and competitiveness, laid the basis of original accumulation for the enterprise and also gave birth to the tradition of the Huanyu Group that enterprise expansion should rely on scientific and technological advancement. By paying more attention to new product development and by cooperation with professional colleges and scientific research institutes.

· Xinxiang Huanyu Power Source Factory

By 1992, the battery material manufactured by Xinxiang Eighth Chemical Factory has taken 90% of the domestic Ni-Cd battery material market, In addition sub-nickel battery material developed by Eighth Chemical Factory had reached the same level as that of rival international products and was patented by the government. During that same year, the company ventured into the field of manufacture of rechargeable batteries and the Xinxiang Huanyu Power Source Factory came into being, steering into the field of production of cylindrical sealed Ni-Cd batteries.

· Huanyu Power Source Factory of Xinxiang County

Due to the timely market orientation and clear cut decision-making by the first generation of Huanyu Group The rechargeable battery product manufactured by Xinxiang Huanyu Electrical Power Factory won the favor of the market with its excellent quality and flexible business operation and demand soon outstripped its supply capacity.

To meet with market demand and expand and increase the economic profit of the company, Huanyu Electrical Power Factory enlarged its production scale by constructing a production line for rechargeable batteries at its original premises. Upon request from the Industry and Business Administration Bureau, the new production line was registered as Huanyu Power Source Factory of Xinxiang County because it was located across Xinxiang County.

· Xinxiang Huanyu Plastic Component Factory

After more than 5 years of development, the enterprise took the leading position in its domestic field by the excellent quality and professional technical support. In order to ensure the quality for the key components for batteries, an investment of RMB 2 million was made to establish Xinxiang Huanyu Plastic Component Factory to produce and sell battery components such as punched components, polarity grid materials and cover and plastic components.

· Henan Huanyu Power Source Co., Ltd

During 1995, Huanyu ranked first for sales income and foreign currency income in the domestic rechargeable battery industry and ranked in the leading position amongst the 4 big suppliers in the Ni-Cd alkali battery industry. Henan Huanyu Power Source Co., Ltd was founded in 1996 to formulate a modern enterprise system, step up profit and unite brand impression.

Huanyu Power Source Co., Ltd is a divisional company made up by Xinxiang Eighth Chemical Factory, Xinxiang Huanyu Power Source Factory, Xinxiang Huanyu Plastic Component Factory and Xinxiang Suburb Chemical Science Research Center. Due to the company keeping its leading position in the Ni-Cd battery industry, the second generation rechargeable battery, the environmentally friendly Ni-Cd battery, was presented to the consumer market the same year and put into mass production, resulting in an increase of employee numbers totaling 1500 and a sales value of RMB 168 million and foreign currency income to RMB 6.8 million. The corporation became one of the biggest manufacturers of Ni-Cd, Ni-Mh alkali battery in China.

· Henan Huanyu Group

After twenty years of development, the enterprises under the Huanyu flag, through coordination and cooperation internally, not only withstood market competition and held its position, but also hastened its rapid growth into a famous enterprise both domestically and internationally in the rechargeable battery industry. It has assets exceeding RMB 700 million, annual sales capacity of RMB 800 million, foreign currency income of up to USD 20 million, total profit and tax from main business of USD40 million. It is running the only vertically integrated chain industry for rechargeable battery and related fields, taking a leading position in Ni-Cd, Ni-Mh rechargeable industry domestically.

To meet the reform and development of the market economy system, investors and operators from Huanyu, in the light of the requirement for enterprise's development and for formulating a modern enterprise system, optimized the economic resource under its control, incorporated the industries and organizations structure extensively, and set up the Henan Huanyu Group, a system of headquarters and branches tied up through capital to form a basis in organization structure for separating property and business operation and for efficiently promoting a modern enterprise system in Huanyu Industries.

The sole company in China to operate a vertically integrated chain of industries in rechargeable battery, Huanyu has now been formed into a high tech group by a cluster of enterprises that is taking a series of Ni-Cd, Ni-H, lithium ion, and lead-acid batteries as its dominant product and at the same time integrated active materials for battery anode, cathode, material for isolators, material for all kinds of additives, grid materials, components for battery plastics and manufacture of battery-related machinery and electrical components.