Report Number: SGS-QIP-201605260001

SGS Supplier Verification Report Report:

Supplier Name Xiangshan Rusing Plastic Products Co., Ltd.

象山县瑞鑫塑业有限公司

Supplier Address No.6, Huancheng North Road, Xizhou Town, Xiangshan County, Ningbo, China

Client Information Comex Holdings

Contact Name: Ms. Mandy He Title Manager

Telephone: 0086-574-55339703 Email 9047944@qq.com

Name of Assessor Natty Deng Reviewed by Gina Li

Audited date 26 May, 2016 Expiry date 25 May, 2017

Company size

Global turnover

USD range:

USD 2,434,058 Company size

Staff number:

1,867 square meters

52 employees

Yearly sales (EU): USD 730,217 Main Client (EU): J-P, Steffen Werch

Yearly sales (USA

& CANADA): USD 1,217,029

Main Client (USA &

CANADA): Vu Ho, Nadir

Yearly sales

(Asia): USD 438,130 Main Client (Asia): HOBBYING

Yearly sales

(Russia): N/A Main Client (Russia): N/A

GENERAL CONCLUSIONS / COMMENTS

PASS

(Total items of not conformed ≤5

& all critical items are conformed)

Pending

(5<Total items of not conformed ≤10

& all critical items are conformed)

FAIL

(Total items of not conformed >10

or any critical item is not conformed )

Xiangshan Rusing Plastic Products Co., Ltd. is a manufacturer with 52 employees; it was established in 2004, located in

No.6, Huancheng North Road, Xizhou Town, Xiangshan County, Ningbo, China. The workshops occupy an area of more

than 1,867 square meters.

Report Number: SGS-QIP-201605260001

Clause Requirement Conformance

Observations & objective evidence Y N N/A

1 Legal and authenticity

1.1 *Does the company have valid

business license?

√ Unified social credit code:

9133022576851931XL

Name of legal representative: Mr.

Hengzhi Xiao

Registered capital: RMB 500,000

Business term: 16 Dec., 2004 to 15

Dec., 2034

1.2 Does the company have valid tax

registration certification?

√ 1. Joining together of three

certificates(business license, tax

registration certification and

organization code certification)

2.Content is same as above

1.3 Does the company have valid

certification of organization of

People Public of China?

√ 1. Joining together of three

certificates(business license, tax

registration certification and

organization code certification)

2.Content is same as above

1.4 Does the company have the

special trade license if the

company need the special

industry? Such as ICP registration,

medical instrument business

enterprise registration, press and

publication business license.

√ None

1.5 Is there clear organization structure

for the company?

√ There was a complete organization

chart provided to review. Currently all

departments were divided by function.

1.6 *How many full-time staff in this

company? (if the company is a

limited company , at least 8

full-time staff is needed)

√ Refer to the wage list of Feb., 2016 and

staff roster; there were 52 full-time

employees in company.

Assessment Scope:

1. Legal & authenticity

2. Business capacity

3. Production capacity

4. Quality management

Report Number: SGS-QIP-201605260001

1.7 *Does the company have fixed and

stationary business place?

√ By checking the lease agreement; the

company land occupies an area of 1,867

square meters.

1.8 Does the company have

necessary office equipment?

√ Such as office, workshops, warehouse

toilets.

Report Number: SGS-QIP-201605260001

Clause Requirement Conformance

Observations & objective evidence Y N N/A

2 Business Capacity

2.1 *Does the company necessary

equipment to meet with the

requirement, such as office

facilities, computers, internet and

relevant software.

√ Office facilities Such as landlines,

computers with IE and word processing

software, printers, copiers, faxes and

network equipment.

2.2 Does the company have its own

website with on-line trading

capacity or promote business in

other B2B platform?

√ www.itec-network.com

2.3 Does the company have the

necessary support system to meet

with the working requirement?

Such as order system, supplier

control system.

√ The order control system are controlled

by GRASP II Top

2.4 Do the trade staffs have the

relevant experience and training?

√ By checking the staff list with resume

and ID card; the sales manager has

over 18 years working experience

2.5 Are there foreign trading staff if the

company have over sea business?

√ There are 2 foreign trading staffs.

2.6 Do the foreign trading staff have

necessary skill to meet with the

working requirement? Such as

foreign language, working

experience.

√ By checking the staff resume;

the export manager has around 18

years working experience. She had got

bachelor's degree. Based on interview

with export manager, her English level

of reading, writing and speaking is good.

2.7 Does the trading staff clearly know

the responsibilities of trading jobs

√ They have clear division and in close

cooperation.

2.8 Does the trading staff clearly know

the product and relevant technical

information?

√ They know the basic information of

product and relevant technical.

2.9 *Does the company have

successful trading experience? (at

least 3 successful trading case

provided)

√ By checking relevant order contract; the

company had successful foreign trading

experience in Europe, North America

and Southeast etc.

2.10 *Does the company have trading

experiences and competent staff?

√ The company has trading experience

and competent staffs.

Report Number: SGS-QIP-201605260001

Clause Requirement Conformance

Observations & objective evidence Y N N/A

3 Production Capacity

3.1 *Are the infrastructure and its

maintenance suitable to achieve

product conformity? Such as

workshop, warehouse and office.

√ The office building, workshop and

warehouse were using concrete

structural.

3.2 Is the work environment managed

to achieve product conformity?

√ Based on site observation; the work

environment is suitable for the operation

performed.

3.3 *Does the company have the

appropriate machines to produce

the products claimed by them?

√ Main facilities as below: injection

molding machine, production line,

drilling machine, crusher

3.4 Are the machines clean and

looking in good conditions?

√ Based on site observation and checking

the equipment maintains records; the

machines are in good conditions.

3.5 Does the factory have the proper

testing equipment available to

perform all required Q.C. testing?

√ Measuring tools such as: dynamic

balancing tester, performance tester,

static balancing tester

3.6 Is the testing equipment in good

operating condition?

√ By checking verification mark and

calibration reports, the testing

equipments are in good operating

condition.

3.7 Are packed master cartons well

stored in a covered area or a good

shelter from weather conditions?

√ Based on site observation; all packing

material and products are placed in

suitable area.

3.8 Are working instructions available

at each work station? If available,

do workers strictly follow the

instructions?

√ Based on site observation; there are

working instructions on work station,

and it’s effective and controlled.

3.9 Are in-stock, finished products and

in-process materials properly

identified and controlled?

√ Base on-site observation; worker can

operation according working instructions

and drawings.

Report Number: SGS-QIP-201605260001

Clause Requirement Conformance

Observations & objective evidence Y N N/A

4 Quality Control

&Management

4.1 *Is the company operating a formal

quality management system on its

products?

√ Refer to relevant document; they have

operate a simple quality management

system on their products.

4.2 Has the company appointed a

management representative who

has responsibility and authority for

ensuring that a quality

management system has been

implemented and maintained?

√ Mr. Lu Zhang has been appointed

management representative in 01 Apr.,

2016.

4.3 Is there a system that identifies

training requirements for all

personnel affecting the quality of

the product?

√ By checking annual training plan of 2016

and relevant training records, the

system is suitable.

4.4 Are the training records

maintained?

√ Training records are kept well.

4.5 Does the company clearly define

quality police and objectives? If

does, do employees fully

understand the company’s quality

policy and quality management

system?

√ Based on site observation; Company’s

quality policy and quality management

system are promoted in workshop by

slogan.

4.6 Is there a system that verifies

compliance with quality objectives,

customer/process requirements?

√ By interview with Ms. He; all quality

objectives, customer/process

requirements would be verified at

annual management review, but no

records.

4.7 Have the contracts been reviewed

by sales and customers before

production?

√ By sampling checking the sales

contracts; contracts would be reviewed

before production.

4.8 Does the company communicate

effectively with client on

production/product related

matters?

√ Sales are responsible for

communicating with clients and

technical staff provide technical support

4.9 Do these procedures ensure that

all obsolete documents are

promptly removed from all points of

issue or use?

√ Admin. Dept. is responsible for removed

all obsolete documents and updated

relevant recycling list, and established

the procedure documents.

Report Number: SGS-QIP-201605260001

4.10 Is there a specified requirement of

traceability, do individual products

or batches have a unique

identification?

√ The identification mark is order number.

4.11 Are in-stock and in-process

materials properly identified and

controlled?

√ All material can be identified by qualified

certification which provided by supplier.

4.12 Are quality documents (e.g.,

QC-flow/work instructions) revision

controlled and approved by

authorized personnel prior to

issue?

√ Relevant documents have been

authorized by Mr. Hengzhi Xiao

4.13 Does the company establish and

implement an effective suppliers/

sub-contractors assessment

procedure?

√ Refer to relevant documents; The

company has established relevant

supplier assessment procedure and

records on site.

4.14 Does the company retain an

updated list of approved suppliers?

√ The latest list of approved suppliers was

reviewed at 2016.

4.15 Does incoming inspection check

incoming shipments to the

requirements of the purchase

order, specifications, and

applicable drawings?

√ Based on site observation and compare

with standard which is according to

product standards, the incoming

material inspection is available.

4.16 Do incoming inspection records

indicate acceptance or rejection of

incoming material?

√ All incoming inspection records are

including the judgement results.

4.17 Are incoming goods properly

labeled, stored, and traceable?

√ The actual situation is available.

4.18 Do the company’s inspectors

perform any internal final

inspection on merchandise prior to

warehousing or shipping?

√ There is a procedure to conduct random

product inspection after final packaging

in place.

4.19 Are inspection and test results

recorded and maintained?

√ The records are complete and easy to

identify.

4.20 Are there documented procedures

for control of inspection, measuring

and test equipment?

√ Relevant documents have been

authorized by Mr. Hengzhi Xiao

4.21 Are non-conforming units clearly

marked/ segregated to prevent

accidental dispatch?

√ Based on site observation, all

non-conforming units are segregated.

Report Number: SGS-QIP-201605260001

4.22 Are corrective & preventive actions

mechanism established and

implemented effectively (including

the suppliers/ sub-contractors

control, incoming inspection,

process control, final inspection

and customer complaint)?

√ Relevant written procedure and records

are kept well.

4.23 Are the raw materials controlled for

hazardous substances, such as

RoHS, REACH?

√ 1. The company have no obtained

products test report of the third party

for their products., but their raw

materials supplies will provide the

test report of material.

2. They provide the test report of raw

materials on site.

4.24 Are there test reports or products

certificates meet the standard of

European Union for this company,

such as CE, GS?

√ The company have no obtained

products certificates for their products.

Raw Material Test Report (Supplier) N/A

N/A

Report Number: SGS-QIP-201605260001

Attachment 1 : Company Chart

1. Company Chart

2. Explanation of Code and Employee Details

Code Department Number of employees

A General Manager 1

B Management Representative 1

C Admin. Dept. 1

D Tech. Dept. 1

E Purchase Dept. 1

F Quality Dept. 2

G Production Dept. 43

H Sales Dept. 2

Number in total: 52

D

A

E F G C H

B

Report Number: SGS-QIP-201605260001

Attachment 2 : Production Flow Chart

1.Product: Propeller , Blade Cover, Motor, Electronic Speed Controller, Barrier Door

1. Raw Material 2. Injection Molding Processing 3. Trimming

4. Function Test 5. Packing 6. Packed Products

Report Number: SGS-QIP-201605260001

Attachment 3 : Photos

1. Photos of Document and Certificate

Business License Organization Code Certificate

Training Plan and Records for Quality Inspection WI

Inspection WI Equipment Maintenance Record

Report Number: SGS-QIP-201605260001

Inspection WI Corrective and Preventive Actions

Inspection Records Wage List

Report Number: SGS-QIP-201605260001

2 Photos of Company and Product Sample

Company Gate Office Area

Workshop Workshop

Mould Storage Area Equipment WI

Report Number: SGS-QIP-201605260001

Equipment Check List Semi-finished Products Storage Area

Warehouse Inspection WI in workshop

Non-conforming Units Area Inspection Area

Report Number: SGS-QIP-201605260001

Test Instrument Test Instrument

Product samples Product samples

Product samples Product samples

Report Number: SGS-QIP-201605260001

Product samples Product samples

-- End of the Report --