(2017 Xinghang Machinery) Quality Credit Report

Preface

1. Report preparation standards

Fujian Xinghang Machinery Casting Co., Ltd. reviewed the concepts, systems, measures and achievements of Xinghang in terms of 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 2017 to December 2017

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. sincerely thanks all walks of life and users for their love, support and cooperation!

Xinghang people are never satisfied and are pioneering and enterprising. They have been committed to the revitalization and development of the foundry industry, constantly bringing forth new ideas and achieving remarkable results. We take "firmly establishing a sense of responsibility and implementing quality responsibility" as the starting point of quality work, establish a quality and safety responsibility system, and establish a post quality responsibility system in all aspects and processes from the top management to various professional management departments and production units, and implement the primary responsibility system of the main person in charge. We focus on learning and introducing advanced quality and safety management theories and methods, formulating quality strategies, determining quality and safety goals, implementing the three-standard management system of quality, environment, and occupational health and safety, standardizing work procedures, and providing guarantees for quality and safety. We have established a strict quality and safety responsibility assessment mechanism, and signed safety responsibility letters from senior executives to various management departments, production workshops and teams, and implemented a quality one-vote veto system. We have organized the establishment of an internal control risk management system for the enterprise, implemented comprehensive risk management, and checked the key links of various businesses at all levels to ensure quality and safety and prevent business risks. The development of Fujian Xinghang Foundry Machinery Co., Ltd. is inseparable from the unremitting efforts of all employees of the company, the attention and support of the country, the industry and associations, and the love and trust of all customers. We will continue to be realistic and innovative, and while providing high-quality products to the society, we will continue to improve our own strength and become an excellent enterprise with market competitiveness, social responsibility and modern management system. In the future, we will thoroughly implement the quality policy of "pursuing excellence, honesty and law-abiding, people-oriented, and harmonious development", focus on customers, adhere to "quality-based enterprise, standard-winning", improve product quality and industry standards through various technical research, and promote the common development of the building materials industry.

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

The company follows the policy of "trust first, quality first", takes brand building as a major event in the production and operation of the enterprise, and puts forward the working idea of "technology is the core of the brand, quality is the life of the brand, talent is the guarantee of the brand, culture is the soul of the brand, and innovation is the driving force of the brand".

2 Internal Quality Management

2.1 Employees’ Quality Management Awareness

Product quality is related to the life of an enterprise. Quality is the banner of an enterprise and the display of its strength. If an enterprise wants to seek development in the fierce competition, defeat strong opponents and gain a firm foothold, the most important weapon is product quality. For an enterprise, quality is actually a systematic project. It not only involves all functional departments of the enterprise, but also runs through various links such as scientific research, production, sales, and procurement, and also includes personnel awareness, quality system, production and operation behavior, and even hardware such as machinery and equipment. In order to make the quality system of an enterprise operate efficiently, optimize resource allocation, and thus produce high-quality products, it is necessary to first let all employees firmly establish the awareness of high quality and high quality in their minds. If this is ignored, no matter how good the equipment is or how sound the mechanism is, it will be difficult to play its due role. The establishment of this awareness naturally has its value. It will enable employees to consciously abide by the operating procedures in the process of production and operation, and will not give up their original duties due to the influence of external factors such as "no one supervises, no one sees, everyone does it this way". This is not just an objective requirement and constraint, but a higher level of pursuit than professional ethics. Quality awareness is the recognition and understanding of quality and quality work of an enterprise from the leadership decision-making level to every employee, which plays an extremely important role in influencing and restricting quality behavior. Quality awareness is reflected in the job of every employee and also concentrated in the job of the highest decision-making level of the enterprise. It is a willpower to consciously ensure the quality of hardware, software and process materials, work quality and service quality produced by the enterprise to meet customer needs. Quality awareness is established and influenced through enterprise quality management, quality education and quality responsibility, and is formed step by step and slowly through self-regulation of quality incentive mechanisms.

2.2 Quality Management System

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. After the company introduced the ISO9001 standard, the systematicness, coordination and effectiveness of the management system were improved. From the first day of engaging in polyester, General Manager Chen Yigui regarded product quality as the first priority. In the quality management work, he has a long-term vision and formulated quality policies and quality goals that are in line with the actual development of the enterprise.

3. Corporate quality integrity

3.1 Quality Integrity Management

The company adheres to the quality management policy of "product quality is the enterprise production line", pursues excellence in product quality and service quality, strictly manages the internal management of the enterprise, strictly implements comprehensive quality management in accordance with the requirements of ISO9001 quality system specifications, systematically trains professional quality management personnel, introduces and trains talents, and enriches the scientific and technological research and development team.

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 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 television, advertising, the Internet and other media, 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 product production, exchange and analyze information on 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 55 sets of advanced measurement and testing equipment and 16 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, command and dispatch are unimpeded, personnel, equipment, and materials can be in place in a timely manner, ensure that the company can promptly and effectively control accidents, protect the lives of employees, the environment, and national property safety, and minimize accident losses, in accordance with 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 other relevant regulations, 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 company's overall plan and procedural specifications for organizing, managing, commanding, and coordinating 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.

Conclusion

In the fierce market competition, if Xinghang Company wants to remain invincible, it depends to a large extent on the product quality of the enterprise, the core technology and independent innovation capabilities of the enterprise, and the cultivation and development of the brand. Further development of quality revitalization work is of great significance to our promotion of industrial structure optimization and upgrading and acceleration of economic growth. The road of quality revitalization must be continued.

Fujian Xinghang Machinery Casting Co., Ltd.

December 31, 2017