(2015 Xinghang Machinery) Quality Credit Report

Preface

1. Report preparation standards

Fujian Xinghang Machinery Casting Co., Ltd. reviewed Xinghang's concepts, systems, measures and achievements in quality management, product quality responsibility, quality integrity management, etc. The contents of this report are explained as follows:

1. Report Scope

Organization scope of the report: Fujian Xinghang Machinery Casting Co., Ltd.

Reporting period: January 2015 to December 2015

Report release cycle: This report is an annual report

1.1 Statement on the Objectivity of the Report Content

This report is written entirely based on the actual production and operation situation of the company. The content is objective and fair, and there is absolutely no false information. We are willing to be responsible for the authenticity of the content of this report.

1.2 Report Data Description

All contents of this report are based on the company's actual situation or data.

2. Speech by General Manager

Fujian Xinghang Machinery Casting Co., Ltd. is one of the most influential enterprises in the foundry industry. Over the years, with the great help of governments at all levels and relevant departments, and through the hard work of all colleagues in the company, we have fully utilized our own advantages and grown and developed together with other domestic foundry brand enterprises. We have always adhered to the business philosophy of "honesty and trustworthiness, legal operation, strict quality management, strengthening corporate self-discipline, actively fulfilling social responsibilities, and consciously accepting social supervision". At the same time, we insist on independent innovation, actively explore the core technology, research and development, standard setting, etc. of the enterprise, respect science, and have embarked on our own development path.

Xinghang's development is inseparable from the care and help from all walks of life, and the support from upstream and downstream peers. Therefore, we are willing to work together with colleagues in the industry, improve together, and make this cake better and bigger together. To realize the beautiful Chinese dream, we should make due contributions to our company.

3. Company Profile

Fujian Xinghang Machinery Casting Co., Ltd. is located in Changle Binhai Industrial Zone, Fuzhou City, Fujian Province. It was founded in 1993 and is a modern private enterprise specializing in casting production and mechanical processing. It was the first batch of foundry industry access certification by the Ministry of Industry and Information Technology. The company is a member of the China Foundry Association, a leading enterprise in China's foundry industry, a high-tech enterprise and a technology-based enterprise in Fujian Province. It has been awarded the honorary titles of "Expert Workstation", "Municipal Enterprise Technology Center" and "Intellectual Property Demonstration Enterprise" by the Fuzhou Municipal People's Government. The company has passed ISO9001 quality management, ISO14001 environmental management, OHSAS18001 occupational health and safety management system certification.

The company specializes in the production of large castings with a unit weight of up to 100 tons, with an annual production capacity of 50,000 tons of castings and 30,000 tons of machining. It covers high-end mold industry, bridge components, metallurgical equipment, construction machinery, wind power, hydropower, nuclear power, marine engineering and other national key projects high-end equipment manufacturing.

The company has accelerated the transformation and upgrading from "ordinary manufacturing" to "intelligent manufacturing", promoted green casting and scientific and technological innovation, and established long-term strategic cooperative relations with the Institute of Metal Research, Chinese Academy of Sciences, Fuzhou University, Fujian University of Technology, etc. by increasing independent innovation and research and development and taking the "production, education, research and application" development path. Many scientific research results projects have been implemented and achieved good results. The company owns more than 20 patents with independent intellectual property rights.

The company has strengthened the integration of information technology and industrialization, and promoted the organic integration of traditional industries with information technology and intelligentization. At the same time, it has played the role of the Internet, used computer simulation technology in the research and development of design products, promoted the visual casting process, and adopted the information technology of "smart workshop execution system" to achieve refined control of the process. In 2015, it was selected as a "pilot enterprise for the implementation of the management system of the integration of information technology and industrialization" by the Ministry of Industry and Information Technology of the People's Republic of China.

The company adheres to the strategic policy of "user orientation, quality improvement, data traceability, process standardization, technical support, and win-win value", gives full play to the advantages of the company's professional technology, professional management and advanced process equipment, and provides customers with high-quality products with the craftsman spirit of "keep improving and serve with heart".

In the fierce market competition, Xinghang is willing to go forward hand in hand with you, bear the wind and rain together, and create brilliance together!

Quality Credit Report

1. Corporate quality philosophy

Xinghang strictly adheres to the quality policy of "trust-based, quality-oriented" in quality management, follows the quality system requirements, and strictly examines every link from raw materials to finished products to ensure that the material quality, production process, and product quality meet the quality standards. The company strictly produces according to process requirements, and each batch of products can be traced back to every link of the production process. After the product is delivered to the customer, regular and irregular return visits are used to collect and organize customer feedback on product quality information, and control it in the subsequent production process to improve product quality.

2 Internal Quality Management

2.1 Quality Management Organization

The company's quality management and product safety work is personally led by the general manager, and the deputy general manager in charge of production technology serves as the company's chief quality officer. The general manager and the chief quality officer are fully responsible for the company's product quality and safety work, organize the formulation of the company's quality development strategy, annual quality work plan and quality safety assurance measures; establish and implement advanced quality management systems and management methods; organize and implement mass quality activities such as quality improvement and quality research; implement quality cost management, strengthen quality statistical analysis; carry out quality education and training; and build corporate quality culture.

The Quality Control Department is a specialized agency for the company's quality management and quality inspection. The Quality Control Director Responsibility System is implemented, and a team of high-quality and professional quality control personnel (all with bachelor's degrees or above and professional qualification certificates) is set up under it. It is responsible for the quality monitoring and inspection activities of the entire process from the entry of raw and auxiliary materials into the factory, production process monitoring, and final product inspection. At the same time, the company has established a key position responsibility system for quality and safety, and clearly stated that the main person in charge of the enterprise bears the primary responsibility for quality and safety, and the enterprise quality supervisor is directly responsible for quality and safety. Strictly implement the enterprise's job quality standards and quality assessment system, implement the "one-vote veto" for quality and safety, and insist on achieving a 100% qualified rate for the batch of products leaving the factory.

2.2 Quality Management System

Quality is the life of an enterprise. From the first day of production, General Manager Chen Yigui has regarded product quality as the top priority. He has a long-term vision in quality management and has formulated quality policies and quality goals that are in line with the actual development of the enterprise. The quality policy of "quality first, customer first, improving people's health and quality of life with high-quality products" fully reflects the focus on customers and the market.

3. Corporate quality integrity

3.1 Quality Integrity Management

Brand reflects the quality of the enterprise, product quality, responsibility and credibility to consumers, and is one of the intangible assets that reflect the value of the enterprise. Xinghang Company deeply realizes that product integrity is the key to enhancing the core competitiveness of the enterprise. It always adheres to integrity management as the core, implements a strong brand building investment strategy, creates a unique advantage of sustainable development, and has achieved good results in brand awareness and brand integrity.

The company adheres to the quality management policy of "product quality is the production line of the enterprise", pursues excellence in product quality and service quality, strictly manages the internal management of the enterprise, strictly follows the requirements of ISO9001 quality system specifications, implements comprehensive quality management, plans to train professional quality management personnel, introduce and train talents, and enrich the scientific and technological research and development team. The company currently has 30 full-time quality management personnel, 3 of whom have intermediate professional titles or above. The company has also improved its quality control capabilities by applying to join the China Product Quality Electronic Supervision Network and declaring a standardized good behavior enterprise.

The company has established after-sales service organizations in Beijing, Shanghai, Guangdong, Jiangsu, Zhejiang and other provinces and cities, implemented pre-sales, in-sales and after-sales consultation and services, established 24-hour quality tracking management and rapid response mechanism, provided customers with multiple complaint channels, and carefully recorded and handled complaints. According to the completion of the brand building and after-sales service plan in the previous year, the company comprehensively analyzed the information of the "Customer Satisfaction Survey Form" and the "Customer Complaint Handling Form", and deeply analyzed the company's shortcomings in product quality, defect rate, delivery timeliness, processing timeliness and customer satisfaction, and put forward evaluation and improvement suggestions and opinions on brand building and after-sales service, reported to the company's management, formulated a new annual plan and implemented it conscientiously. Over the years, the company's product complaint rate has been less than 2%, and there has been no litigation related to product quality.

The company has carried out advertising for the "Xinghang" trademark through media such as television, advertising, and the Internet, and has achieved good brand benefits. Every year, the company actively invites dealers and new and old customers from all over the country to visit the production site to understand the entire process of manufacturing technology, exchange and analyze information such as product market trends, and collect opinions and suggestions from domestic and foreign customers on products to further enhance brand awareness.

3.2 Quality Culture Construction

Quality culture is an important part of corporate culture, and is a comprehensive reflection of the purpose, concept and moral code of conduct that an enterprise pursues in terms of quality. The core competitiveness of modern enterprises is not products and services, but excellent corporate culture.

In the construction of quality culture, our company not only builds a quality safety system, strengthens its own technical strength, and improves its core competitiveness, but also attaches great importance to the education and training of employees. On the one hand, we strengthen technical training and improve the technical quality of employees, thus laying a solid foundation for improving product quality. At the same time, we strengthen the training of legal and regulatory knowledge and integrity awareness of employees. In particular, we regularly organize employees to study relevant laws, regulations and standards such as the "Product Quality Law". We improve the overall legal awareness and integrity awareness of employees, and truly make the company understand, know and abide by the law. And strictly implement relevant laws, regulations and standards in the actual production process.

4 Enterprise Quality Foundation

4.1 Enterprise product standards

Our company strictly abides by the safe operating procedures of each workshop process and conscientiously implements the quality management system, which effectively improves the company's management level and awareness of standards, making our company's standardization work more standardized and orderly.

4.2 Enterprise measurement level

The company has established a complete measurement and testing system. The company has a total of 50 sets of advanced measurement and testing equipment and 10 full-time and part-time measurement personnel, which can ensure the effectiveness and reliability of the company's measurement, testing and monitoring results.

5 Product Quality Responsibility

5.1 Product Quality Commitment

The company promises to strictly abide by the Product Quality Law and other laws and regulations related to product production, and fully fulfill the responsibility of the corporate legal person as the first person responsible for production safety.

The company solemnly promises to strictly implement the national safety standards of the "Product Quality Law" during production, and will never adulterate, counterfeit, pass off fake products as genuine ones, or pass off inferior products as good ones during the production process, and will not recycle raw materials for processing and production, etc. The company is determined to repay the consumers' love for Xinghang with high-quality products and sincere after-sales service.

5.2 Product recall

The company has formulated a complete set of rigorous and mature "Product Recall Control Procedures", which can effectively and quickly trace and recall products when there are quality and safety risks, ensuring that the relevant products with hidden dangers are recalled smoothly and accurately and effectively handled. In recent years, the company has never had an actual recall due to quality and safety accidents, and the company also uses regular and irregular return visits to collect and organize customer feedback on product quality information, and control it in the subsequent production process to improve product quality.

5.3 “Three Guarantees” Responsibilities

The company solemnly promises that if there are quality problems with the company's products, after a joint investigation by the company and relevant departments, it is confirmed that it is indeed the company's responsibility, the company will strictly implement the relevant laws and regulations such as the "Product Quality Law" and the "Consumer Rights Protection Law", and within the legal framework and in accordance with the wishes of consumers, the company's products will be refunded or replaced, and we will express our sincere apologies to consumers.

6 Quality Risk Management

6.1 Quality Complaint Handling

Casting is one of the basic processes of the modern machinery manufacturing industry. There may be various problems that need to be solved in all aspects of product sales, including after consumers purchase. Sales offices in various places are responsible for contacting consumers, solving problems based on customer complaints and suggestions, and registering the content of complaints and handling results. Each office reports the content of complaints and handling results to the after-sales service department in writing every day. The after-sales service department will summarize the opinions of consumers and put forward improvement suggestions, and then report them to the general manager's office meeting for approval and implementation. The marketing department conducts a customer satisfaction questionnaire survey on customers every year. The scope and content of the survey are updated and improved year by year, striving to achieve a wide sampling range and content closer to user needs. Data analysis is conducted on the sampling results, and opinions and suggestions are put forward to the company's leaders for decision-making.

6.2 Quality Risk Monitoring

The company has established the "Product Quality Risk Monitoring Information Collection System" in accordance with the "Product Quality Law of the People's Republic of China" and the "Regulations for the Implementation of the Product Quality Law" to collect product quality and safety risk monitoring information, timely discover potential product quality problems, and change the post-event "repair after the sheep have been lost" to pre-event prevention, that is, from "post-event supervision" to "pre-event prevention", so as to avoid the occurrence of product quality and safety accidents. Product safety risk monitoring information is mainly collected and sorted by the company's quality management department, the Quality Control Department, but all employees of the company have the responsibility and obligation to collect risk monitoring information. In order to ensure that product safety risk monitoring information related to our company's products can be collected in a timely and accurate manner, the company always pays attention to maintaining technical exchanges and cooperation with international and domestic counterparts.

6.3 Emergency Management

In order to improve the company's emergency response capabilities for emergencies and dangerous situations, ensure that when major and serious accidents occur, the command and dispatch are smooth, and personnel, equipment and materials can be in place in time, ensure that the company can control the accident in a timely and effective manner, protect the lives of employees, the environment and national property safety, and minimize the loss of accidents, in accordance with the relevant provisions of the "Work Safety Law of the People's Republic of China", "Emergency Response Law of the People's Republic of China", "Management Measures for Emergency Plans for Production Safety Accidents", and combined with the actual situation of our company, formulate an emergency plan for production safety accidents. The emergency plan for production safety accidents is divided into two levels: comprehensive emergency plan and special emergency plan. The comprehensive emergency plan is the overall plan and procedural specification for the company to organize, manage, command and coordinate relevant emergency resources and emergency actions. The special emergency plan is a component of the overall plan and is an action plan and guarantee plan for different emergencies. In order to achieve accurate and timely response to emergency rescue, the company regularly organizes employees to conduct emergency drills, and improves and perfects the problems in the drills to ensure that when an emergency occurs, the emergency plan can be activated to avoid risks and reduce harm.

Conclusion

Focusing on quality and building integrity, Xinghang Company will work harder in its future development to solidly build the first brand of building materials "Xinghang" and a good image, take health, safety and green as the main line, and provide consumers with genuine, healthy and safe products.

Fujian Xinghang Machinery Casting Co., Ltd.

December 31, 2015