Heli Electronics Dec 2010 Presentation

Investor Presentation December 2010

Guangzhou Heli Information Technology Co., Ltd.

Haier Brand AV Products Exclusive Marketing & Distribution Agency

Forward-Looking Statements

This presentation may contain “forward-looking statements” within the meaning of the “safe-harbor” provisions of the Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. Such statements involve known and unknown risks, uncertainties and other factors as well as assumptions that, if they do not fully materialize, or prove incorrect, could cause the actual results of Heli Electronics Corp. (the “Company” or “Heli”) to differ materially from the results expressed or implied by such statements. Accordingly, although the Company believes that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. The Company has no obligation to update the forward-looking information contained in this presentation.

Capital Market Summary

At a Glance

TICKER HELI 2009 Revenue, US$ $29.8 mil

EXCHANG OTCBB EST 2010 Sales, US$ $103 mil

FISCAL Dec 31Average Revenue Growth vs Prior Quarter (3Qs, 2010) 240.3%

SECTOR

Electronics and Electrical

AppliancesAverage Revenue Growth vs Last Quarter Sequential (3Qs, 2010) 31%

RECENT PRICE (12/31/10) $1.85 SHARES OUTSTANDING 5,440,000

MARKET CAP $mil $10.06mil FLOAT 2,554,400

2008 Revenue, US$ $0.82 mil INSIDER SHAREHOLDERS 2,885,600

Company Overview

• Guangzhou Heli Information Technology Co., Ltd was established in March 2008. It is the primary marketing, distribution and logistics agency of audio and visual (AV) products in Mainland China for Haier Group, a world leader in electronics and electrical appliances.

• The company’s headquarter is located in Baiyun District, Guangzhou, a major distribution hub of AV products in South China’s Pearl River Delta Region. The area of the headquarter is over 20,000 square meters, and is comprised of offices, warehouses and showrooms.

• The company officially became the marketing, sales and service agency of Haier in China in June 2008. It subsequently became responsible for the general distribution of Haier mini speakers, multimedia stereo systems, home theatres, and other AV products.

Main Product Series

Business Operations

Strengthen marketing and promotion efforts; Increase customers, and further expandand marketing

Strengthen marketing and promotion efforts; Increase customers, and further expandand marketing

Infiltrating into the existing massive sales network; Increase global distribution channels

Infiltrating into the existing massive sales network; Increase global distribution channels

Establish a logistics network, increase the investment in logistics facilities and finally create a logistics brand

Establish a logistics network, increase the investment in logistics facilities and finally create a logistics brand

Adhere to customer focus; Strengthen the building of E-commerce operation platforms and improve the service quality

Adhere to customer focus; Strengthen the building of E-commerce operation platforms and improve the service quality

Investment Highlights

Growth Strategy to Build Leadership Position Robust Revenue Growth Growing Profitability Aggressive, Professional Management Team

Strong OEM

Relationships

Strong OEM

RelationshipsSolid Business BaseSolid Business Base

Haier Brand & Market Advantage Sales Channel AdvantageService Advantage

Strong OEM

Relationships

Strong OEM

RelationshipsBrand and Market

Advantage

Brand and Market Advantage

China’s Rapid Economic Growth & Increased Consumption DemandGood Momentum of Sector DevelopmentNational Policy of “Home Appliances Going to the Countryside” Driving AV Market Growth

Strong OEM

Relationships

Strong OEM

RelationshipsEconomic Drivers and

Inner Potential

Economic Drivers and Inner Potential

Haier Brand & Market Advantage Haier – Highly Recognized Brand

• In 2009, the brand value of Haier amounted to US $11.8 billion. • Haier has topped the Most Valuable Brand list for seven consecutive years. • In March 2008, Haier was selected as one of "China's Top 10 Global Brands" by the Financial Times for the second time. • In June 2008, Haier ranked 13th and 1st among Chinese companies on the list of the world's "600 Most Reputable Companies," by Forbes. • In July 2008, Haier ranked first among Chinese mainland companies in the Wall Street Journal Asia's annual survey of "Asia's 200 Most Admired Companies" for the fifth time.

Haier Brand & Market Advantage Well-Developed Distribution Network

• Haier’s enormous sales network has spread throughout China, and maintains 58,800 sales outlets in over 160 countries.

• Haier has 42 trading companies in China. According to Zhongyikang, a marketing and consulting agency, Haier was China‘s largest home appliance manufacturer in 2007, with 25% total market share. The company also captured nearly 30% of the share in the high-end market.

• Heli can potentially sell products through all of Haier’s sales channels. Currently products have entered into over 25% of the channels in China mainland.

• Plan to enter more than 50% of Haier sales outlets in China by the end of 2011.

Branding and Marketing - Sales Channel Advantages

Advantage of Large Commercial

Retailers

Heli has cooperation agreements with the retail household appliance superstores such as Gome, retail IT product chain stores such as Huihai IT and other large-scale enterprises with long-term cooperation prospects.

Advantage ofInternet Sales

Heli has cooperated with professional internet sales enterprises, allowing forlarge volumes of sales of electrical appliances, these include the new emergingNaNaBuy. These powerful online marketing platforms allow consumers to buyHeli’s products anywhere and at anytime.

Advantage of TV Shopping

Heli cooperates with large shopping channels such as Enjoying Shopping, Easy Shopping, Hunan Joy, Guizhou Jiayou, Hubei Meijia, Sichuan Starry Sky, and Shanghai Hejia, among others.

Branding and Marketing - Service Advantages

(i) Advantage of Logistics Ensuring quality and high-level delivery system, the company currently possesses:

Large and medium-sized trucks and vansSufficient conditions for transportation network and other hardware resourcesProfessional personnel with substantial logistics management experienceScientific information management systemOptimized workflow and improved worker productivity and efficiency, reducing labor cost, and meeting customer needs promptly.

(ii) Advantage of Customer Service Heli’s service system is a coordinated overall information system. It continues to provide customers with comprehensive information support, and provide purposeful and proactive services according to the users’ needs. The entire sales process is meticulously followed, to ensure providing safe products and professional, convenient, fast and worriless services.

Branding and Marketing - Major Customers Electronics Chain Superstores: Gome – one of the leading domestic electronics

chain superstores; Huihai IT – an influential chain sales service enterprise in South China, mainly engaged in IT and digital products.

Commercial Business Websites: NaNaBuy – Shopping super website for purchasing electronics.

Integrated Sales platform: Goodaymart – A powerful shopping platform integrated with Chain stores, Catalogue sales, Online shopping mall and TV shopping.

Other Reliable Channels: Jiangsu Zhifu, Xinjiang Caixuan. Both are local leading traditional distribution and marketing agents that Heli has partnerships with to deliver goods to certain localities.

Investment Highlights

Growth Strategy to Expand Business Range Robust Revenue Growth Growing Profitability Aggressive, Professional Management Team

Strong OEM

Relationships

Strong OEM

RelationshipsSolid Business BaseSolid Business Base

China’s Rapid Economic Growth & Increased Consumption Demand

Good Momentum of Sector Development National Policy of “Home Appliances Going to the Countryside”

Driving AV Market Growth

Strong OEM

Relationships

Strong OEM

RelationshipsEconomic Drivers and

Inner Potential

Economic Drivers and Inner Potential

Haier Brand & Market Advantage Sales Channel AdvantageService Advantage

Strong OEM

Relationships

Strong OEM

RelationshipsBrand and Market

Advantage

Brand and Market Advantage

Growth Strategies to Expand Business Range

Develop the supply chain business, providing business

operation services, supporting and settlement, etc.

Develop logistics and distribution business,

including freight transport and express delivery

Expand import and export business

Expand sales channels for marketing Haier AV products, as a long-term core business

15

Robust Revenue Growth

$7,988

$18,841

$24,853

$32,066

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

Q3 2009 Q1 2010 Q2 2010 Q3 2010

RevenueRevenue

($ thousands)

2010 Q3 financial performance: Revenue up 301.4% or $24,078,201 over its Q3 2009 to $32.07 million

2010 Q3 financial performance: Revenue up 301.4% or $24,078,201 over its Q3 2009 to $32.07 million

16

Growing Profitability

Net Income and Income from OperationsNet Income and Income from Operations

($ thousands)

2010 Q3 financial performance: Net income up 290.2% or $1,708,736 over its Q3 2009 to $2.30 million

2010 Q3 financial performance: Net income up 290.2% or $1,708,736 over its Q3 2009 to $2.30 million

17

2010 Q3 financials highlights

[USD thousands]

Revenue $32,066

Gross Profit $3,969

Net Income $2,297

Cash and equivalents $1,121

Total Assets $22,135

Total Liabilities $13,529

Total shareholders’ equity $8,606

[Unaudited] The Company began to report to SEC from June 15, 2010 (see the SEC filings). The audited report will be released in the annual report of 2010.

Aggressive, Professional Management Team Name and Title Experience

Qiu XinPresident, CEO and Chairman of the Board

Founder of Guangzhou Heli in March 2008. Mr.Qiu has been engaged in domestic sales for more than 10 years and has rich marketing experience and ability to design effective plans and strategies. He is especially familiar with the marketing of household electrical appliances and computer peripheral equipments. He graduated from Nanchang University in July 1995, with a degree in Accounting.

Ao Guozhong Chief Operations Officer/ Director

Also General Manager of Guangzhou Xinde Electronics. Mr. Ao’s sound decision making in addition to his experience in the engineering field has molded him into an excellent COO. He Graduated from Hunan University of Science and Technology (Xiangtan, Hunan Province) in June 1999 with a degree in Mechatronics (Mechanics and Electronics Engineering).

Liu HongChief Financial Officer/ Corporate Secretary

Appointed CFO in June 2010. Prior to that, Ms. Liu held various senior accounting positions. Currently, her responsibilities include overseeing the finances of Heli as well as cost analyzing, budgeting, and developing financial plans. She received a bachelor’s degree in Finance from Jilin University of Finance and Economics (Changchun, Jilin Province, China) in June 2007.

Investment Highlights

Haier Brand & Market Advantage Sales Channel AdvantageService Advantage

Strong OEM

Relationships

Strong OEM

RelationshipsBrand and Market

Advantage

Brand and Market Advantage

Growth Strategy to Build Leadership Position Robust Revenue Growth Growing Profitability Aggressive, Professional Management Team

Strong OEM

Relationships

Strong OEM

RelationshipsSolid Business BaseSolid Business Base

China’s Rapid Economic Growth & Increased Consumption DemandGood Momentum of Sector DevelopmentNational Policy of “Home Appliances Going to the Countryside” Driving AV Market Growth

Strong OEM

Relationships

Strong OEM

RelationshipsEconomic Drivers and

Inner Potential

Economic Drivers and Inner Potential

20

GDP per Capita in China (nominal)GDP per Capita in China (nominal)

($ thousands)

2004 – 2009 CAGR: 20.9%

Source: International Monetary Fund World Economic Outlook Database 2009

China’s Rapid Economic Growth and Increased Consumption Demand

• Positive Trends– 2004-2008 GDP per Capita CAGR of 21%– 2008-2011 projected CAGR of 12%– By 2015, over 4 million households expected

to have annual income above RMB250,000(1)

– According to PRC Government statistics, household appliances and AV equipments grew 27% in May vs the prior year, and year to date demand is up almost 30% vs last year. This is validated by the 38% growth in real estate development and the two are inter related as new households are built consumers will acquire appliances and AV products. (See the table in next slide)

(1) Source: China Statistical Yearbook(1) Source: China Statistical Yearbook

21

China’s Rapid Economic Growth and Increased Consumption Demand

National Bureau of Statistics of China- Main Statistical Data in May

Indicators

May Jan-May

Absolute Magnitude

Increased YoY (%)

Absolute Magnitude

Increased YoY (%)

Investment in Fixed Assets in the Whole Country (100 million yuan) … … 67,358 25.9

Of which: State-owned and State Holding … … 28,064 21.7

Of which: Real Estate Development … … 13,917 38.2

Total Retail Sales of Consumer Goods (100 million yuan) 12,455 18.7 60,339 18.2

Household Appliances and AV Equipment 394 27.1 1,581 29.8

Source: http://www.stats.gov.cn/english/newsandcomingevents/t20100611_402649308.htm

22

Consumer Electronics - a Growth Industry

• In 2012, the global consumer electronics market is forecast to reach $261 billion, an increase of 30.6% from 2007(1).• China ’s consumer electronics market increased at a CAGR of 11.71% during 2002-2006 and is expected to grow at a CAGR of 12% during the forecasted period (2007-2011)(2).• Among the E7 developing countries, China is ranked as the most attractive consumer electronics market from investment point of view (2).

(1) Consumer Electronics: Global Industry Guide by Data monitor(2) Research and Markets, 2008

In summary, the strong economic growth in China should continue and per capita income willincrease accordingly. As consumers gain income they will be purchasers of consumer goodsincluding the types of products sold by the Company.

Good Momentum of Sector Development

23

– “Home appliances going to the countryside" program started back in December 2007. Under the program, farmers who purchased home appliances which were included on the subsidy list received partial financial subsidies.

– According to China's Ministry of Commerce, a total of 2.7 million units of "home appliances going to the countryside" have been sold in the first quarter of 2009 for 4 billion yuan. Of these 2.7 million units, 1.485 million units were sold in March for 2.24 billion yuan, representing an increase of 70 percent and 72 percent year-on-year, respectively.

– Li Yizhong, Minister of Industry and Information Technology of China, said that, "Facts prove that if the "home appliances going to the countryside" program continues to last for one year, two years or three years, it is likely to produce very noticeable effects in improving the development of the electronics industry and electronic manufacturing industry.” *

– The policy do have driven increased sales of home appliances in the countryside, audio-visual appliances are becoming more and more popular with residents in smaller towns and wealthy farmers. There is enormous spending potential in the vast central and western rural areas and small towns. It is estimated that AV product sales will explode in the next few years.

“Home Appliances Going to the Countryside”

* Source: http://english.peopledaily.com.cn/90001/90778/90857/90860/6653223.html* Source: http://english.peopledaily.com.cn/90001/90778/90857/90860/6653223.html

Investment Rationale Summary

• Major distributor for A/V products of Haier Electronics Group (Hong Kong: 1169, Shanghai: 600690), a $11.8 billion brand of a broad product line of appliances.

• Well-developed sales network of Haier group is quite advantageous for Heli’s sales expansion.

• Multiple distribution channels: retail stores, large appliance supermarkets, internet, TV shopping.

• Product line (multimedia stereo speakers, home theatre system and similar) are popular electronic consumer goods with young/middle aged consumers.

• Explosive growth history: 2010 first 9 months revenue of $75.8million vs 12 months revenue of $29.8million in 2009 vs $0.82 million in 2008.

• Aggressive and professional management team.• Positioned to be a professional leading marketing and promotion agency in China; as well as

a comprehensive service provider in electrical industry through expanding business range.• Domestic economy and consumption growth keeps driving sales of AV products; good

momentum of customer electronics industry.• Benefit from Government subsidy for rural residents to purchase household appliances

http://english.peopledaily.com.cn/90001/90778/90857/90860/6653223.html Appliance sales are up 510% in the first four months of 2010 compared to last year.