Introduction to the Report

Statement on the Objectivity of the Report:

　　This report contains accurate and reliable information, having been thoroughly reviewed and approved at a company meeting.

Report organization scope:

　　Qingdao Haitong Vehicle Bridge Co., Ltd.

Report time range:

　　From January 1, 2020, to December 31, 2020, certain sections extend beyond the aforementioned time frame to ensure consistency and readability of the report.
 

Report data explanation:

　　The data disclosed in this report are derived from the company's internal statistics, unless otherwise noted.

General Manager's Address

　　Qingdao Haitong Vehicle Axle Co., Ltd. adheres to the principle of "surviving through quality and fostering growth through credibility," firmly committing to fulfilling its primary responsibility for product quality. The company strictly complies with all relevant quality laws and regulations governing axle production, consistently upholding internal control standards that exceed national benchmarks. Additionally, it has established a robust product quality and service traceability system, ensuring full accountability for quality responsibilities and legally assuming liability for any resulting damages.
　　To ensure the effective operation of the quality integrity system, we will systematically standardize it through institutional frameworks, enforce accountability via rigorous assessment mechanisms, foster a robust quality culture, and continuously enhance and elevate our efforts by actively pursuing and implementing a renowned-brand strategy. This will help us vigorously cultivate and establish a strong atmosphere and framework for quality integrity, while consistently striving to improve the performance of non-national quality standards—and ultimately delivering exceptional value to our customers.
　　Quality is our foundation, and integrity is our core principle. Qingdao Haitong Axle will, as always, strive to fulfill our social responsibility by prioritizing quality and conducting business with honesty, continuously crafting premium axle products that deliver value through excellence—and ultimately, winning through quality.

General Manager: Wang Lifu
 

Company Profile

　　Qingdao Haitong Vehicle Bridge Co., Ltd. was established in 1994 with a registered capital of 20 million yuan and is located at No. 106 Jiefang Second Road, Jimo District, Qingdao City, Shandong Province. Over the years, the company has earned numerous prestigious accolades, including "China's Integrity Enterprise," "Nationally Recognized Laboratory," "High-Tech Enterprise," "Shandong Provincial Enterprise Technology Center," "Shandong Provincial Contract-Honoring and Trustworthy Enterprise," "Shandong Provincial Famous Trademark," "AAAAA-Level Quality and Credit Enterprise," and "AAA-Level Enterprise Credit Rating." Additionally, the company has successfully achieved certifications for multiple management systems, such as quality, environmental, occupational health and safety, and the integration of IT with industrialization.

　　The company has consistently adhered to the development direction of "specialization, excellence, uniqueness, and innovation," firmly committing to "innovation" in building its own national brand of vehicle components. Guided by the corporate philosophy of "people-oriented, scientific management, integrity and trustworthiness, customer first, lean production, quality supremacy, pioneering innovation, and mutual win-win harmony," the company is steadily advancing toward rapid, sustainable, healthy, and balanced growth.
　　The company has established a corporate vision: "We aim to become a world-class automotive components supplier that earns the trust of our users, inspires pride among our employees, fosters harmonious corporate relationships, and earns respect from society." Our corporate mission is to "dedicate ourselves to product innovation, quality assurance, and service excellence, thereby enhancing the international competitiveness of China's automotive industry and delivering greater value to customers worldwide." At the heart of our values lie principles such as "loyalty and integrity, inspiring passion, responsible resource management, courageous responsibility, collaborative teamwork, unwavering commitment to Zhengno standards, a relentless pursuit of learning and knowledge, and a deep dedication to professional excellence." Through this innovative approach, we are forging a new, technology-driven industrial model that strengthens our competitive edge and drives sustainable growth.

Phone: 0532-89061011
Address: No. 106, Jiefang 2nd Road, Jimo District, Qingdao City, Shandong Province

Table of Contents
Introduction to the Report
I. Corporate Quality Philosophy
II. Internal Quality Management
　2.1 Quality Management Structure
　2.2 Quality Management System
　2.3 Company Quality Management Measures
3. Corporate Quality Integrity
　3.1 Quality Integrity Management
　3.2 Quality Culture Development
4. Enterprise Quality Foundation
　4.1 Company Product Standards
　4.2 Enterprise Measurement Level
　4.3 Certification and Accreditation Status
5. Product Quality Liability
　5.1 Product Quality Commitment
　5.2 Product Recall Status
　5.3 Three-Guarantee Responsibility
6. Quality Risk Control
　6.1 Handling Quality Complaints
　6.2 Quality Risk Monitoring
　6.3 Emergency Management
Looking ahead to 2021

I. Company Quality Philosophy
　　The company has consistently adhered to the development direction of "specialization, excellence, uniqueness, and innovation," firmly committing to "innovation" in building its own national brand of vehicle components. Guided by the corporate philosophy of "people-oriented, scientific management, integrity and trustworthiness, customer first, lean production, quality supremacy, pioneering innovation, and mutual win-win harmony," the company is steadily advancing toward rapid, sustainable, healthy, and balanced growth.
　　The company has established a corporate vision: "We aim to become a world-class automotive components supplier that earns the trust of our users, inspires pride among our employees, fosters harmonious corporate relationships, and earns respect from society." Our corporate mission is to "dedicate ourselves to product innovation, quality assurance, and service excellence, thereby enhancing the international competitiveness of China's automotive industry and delivering greater value to customers worldwide." At the heart of our values lie principles such as "loyalty and integrity, inspiring passion, responsible resource management, courageous responsibility, collaborative teamwork, unwavering commitment to Zhengno standards, a relentless pursuit of learning and knowledge, and a deep dedication to professional excellence." Through this innovative approach, we are forging a new, technology-driven industrial model that strengthens our competitive edge and drives sustainable growth.
　　The company places economic efficiency at the core of its operations, with a strong emphasis on process quality control. We are committed to transforming our workshops into "green, intelligent, and digitally-driven" facilities. Through gradual, year-by-year technological upgrades and infrastructure development, we steadily uphold our mission: "delivering flawlessly performing, high-quality, and reliable products that consistently meet and exceed customer expectations." Additionally, we aim to build a renowned industry brand by leveraging cutting-edge manufacturing technologies and exceptional service, ensuring that we not only satisfy but also surpass the ever-evolving aspirations of our users. To achieve this, we integrate quality management principles into every aspect of our business—and foster a deep-rooted quality mindset that resonates with each and every employee.
　　Highly attentive to customer and market needs, expectations, and preferences, we consistently place the customer at the center of our focus, fostering "win-win" strategic partnerships. Through this approach, we continuously refine and enhance our production processes and management practices—ensuring that we earn the lasting trust and loyalty of both the market and our customers.
　　The company's future development strategy: Actively seize opportunities, diligently explore new markets, strengthen corporate management, and strive to enhance the company’s overall strength and core competitiveness. We are committed to continuously transforming the company into a "resource-efficient, environmentally friendly, and quality- and efficiency-driven" enterprise.
II. Internal Quality Management
2.1 Quality Management Organization
　　The company has established a quality management organization led by the General Manager, along with a dedicated Quality Assurance Department that meets all required standards. The quality management team includes full-time personnel specifically responsible for overseeing the company’s quality initiatives. Additionally, each department has set up its own dedicated quality management unit to manage quality-related tasks within their respective areas. Inside the Quality Assurance Department, there are specialized processes such as incoming material inspection, in-process inspection, and final product inspection to ensure rigorous quality control at every stage.
2.1.1 Quality Management Organizational Chart

 

2.1.2 Responsibilities of the Quality Management Organization
(1) Develop quality management system documents tailored to this enterprise;
(2) Organize the development of the company’s quality policy and quality objectives;
(3) Responsible for ensuring and overseeing the effective operation of the company's quality management system;
(4) Establish a quality reward and punishment system, coordinate quality responsibilities across departments, and assess the quality of work performed.
(5) Conduct internal quality audits within the organization;
(6) Responsible for analyzing and handling major quality incidents;
(7) Oversee the use and management of the enterprise quality fund;
(8) Organize and carry out mass quality activities.
Responsibilities and Authorities of the Quality Assurance Department
(1) Quality Inspection
Inspect raw materials, semi-finished products, and finished goods according to relevant standards and regulations. Properly maintain quality records and labeling as required, promptly provide accurate and reliable inspection data, monitor quality trends, and ensure the traceability of product inspections.
(2) Quality Control
Based on product quality requirements, establish internal quality control indicators for raw materials, semi-finished products, and finished goods; organize and implement process quality control; employ statistical methods to analyze and understand quality variation patterns, continuously enhancing predictive capabilities and preventive measures. Additionally, promptly implement corrective and preventive actions to ensure that the entire production process remains under strict control.
(3) Factory-Produced Product Qualification Confirmation and Verification
Strictly adhere to relevant product standards to ensure that only qualified products leave the factory.
(4) Quality Statistics and Analysis
Utilize mathematical and statistical methods to promptly conduct quality statistics, and effectively carry out analysis and improvement efforts.
2.2 Quality Management System
　　In recent years, we have continuously optimized resource integration, revised and refined our company’s management processes, and established a robust quality management system tailored to our organization’s unique needs. This has enabled us to firmly and effectively implement all responsibilities and objectives within our management framework, ensuring the seamless operation of the quality management system and driving the company’s sustainable growth.
(1) The effectiveness of the company’s quality management system stems from the establishment of a rational, efficient, scientific, and standardized set of process management practices and documented procedures that systematically guide the entire production process, ensuring the smooth operation of the quality management system.
(2) Based on the company’s quality objectives, break down and distribute specific quality targets to each department, and regularly conduct inspections to ensure their implementation. For any issues identified during these checks, provide timely feedback. At the same time, prioritize the user experience—keeping customers at the center of our focus—and use customer satisfaction as the benchmark for measuring success. By delivering impeccable after-sales service, we aim to meet both user and societal needs, earning their trust and satisfaction while continuously improving our quality objectives.
(3) Quality Education and Internal Communication
　　To enhance quality awareness among frontline employees and strengthen their ability to prevent quality incidents and handle emergencies effectively, the company has established a quality management training system along with an annual training plan. Employees are regularly organized to participate in quality education and training, ensuring they acquire the necessary knowledge and skills to perform their jobs effectively.
　　To ensure all employees share a common understanding of quality management, the company fosters communication across different functions and levels through various types of activities, promoting mutual understanding, aligning actions, and ultimately guaranteeing the effective operation of the quality management system.
a. The General Manager defines the information communication requirements across all internal functions and levels, and delegates the management representative to plan, implement, and standardize the management process.
b. The management representative is responsible for communicating the company's quality policy and quality objectives, as well as coordinating and resolving any issues related to internal quality management within the organization.
c. To ensure the effective operation of the quality management system, the company facilitates management information exchange among its various functional departments and maintains robust internal communication through methods such as rationalization proposals, regular quality meetings, product inspections, and efficient information dissemination.
d. The company designates a "Quality Month" each year, during which it focuses on organizing quality training, technical workshops, quality improvement initiatives, and the selection of outstanding quality role models—activities aimed at reinforcing quality awareness across the entire workforce.
e. The company communicates internally with all employees through various channels, including documents, circulars, notifications, newspapers, bulletin boards, and Quality Month initiatives, to promote and reinforce the annual corporate guidelines and quality objectives, thereby enhancing everyone’s awareness of quality.
(4) Quality Accountability System
　　To clarify quality accountability, the company has established a Quality Accountability System that holds all levels and types of personnel responsible for any quality issues arising within their designated areas of responsibility, thereby enhancing both work processes and product quality.
2.3 Company Quality Management Approach
2.3.1 Quality System Development
2.3.1.1 Internal Quality Audit
　　The company has established an "Internal Quality Audit System" to continuously enhance its quality framework. By integrating feedback from external audits, the company meticulously plans internal audit activities to assess the operational effectiveness and controlled status of its quality system. This process helps identify areas for improvement, enabling ongoing refinement and ensuring the quality management system evolves in a steady, iterative manner.
2.3.1.2 Management Review
　　The company has established and maintains a "Management Review Procedure," holding regular management review and internal audit meetings to assess whether the organization's quality management system—including its quality policy and objectives—requires adjustments or improvements. This ensures the system remains consistently relevant, adequate, and effective, culminating in the preparation of a Management Review Report.
2.3.2 Lean Quality
　　To enhance enterprise productivity and create high-quality products, the company has collaborated with world-class international brands in recent years. Through these partnerships, it has adopted Japan’s meticulous approach to refinement and successfully implemented the JIE Lean Production model.
3. Corporate Quality Integrity
3.1 Quality Integrity Management
　　To ensure the effective operation of the quality integrity system, we uphold the philosophy of "being honest in character and diligent in action," helping employees truly understand the critical role integrity plays in corporate development—and embedding this principle deeply into the company’s core business philosophy.
3.2 Quality Culture Development
　　Guided by the philosophy of prioritizing customer needs and dedicating ourselves to serving our customers, we are steadily advancing our brand strategy to create high-quality axle products. We firmly emphasize "cultivating a commitment to excellence and safeguarding our brand advantages" as a key component of our company's quality culture, continuously enhancing the performance and reliability of our products.
(1) Enhance management and advance the development of a quality culture
　　By effectively implementing management improvement initiatives, we have strengthened the sense of responsibility across all management levels, seamlessly integrating quality awareness into both process management and daily operations. Combined with comprehensive system-wide communication and training programs, these efforts have deepened employees' understanding of the critical link between quality, business growth, and organizational success—or failure. As a result, top-level leadership has genuinely committed to fostering a robust quality culture, while middle management has demonstrated strong, efficient execution of quality initiatives in front of their teams. This dynamic approach has passionately inspired employees at all levels to actively engage in quality-building activities, significantly advancing the company's overall commitment to cultivating a culture of excellence.
(2) Built on foundations, yet focused on innovation
　　Following the inherent principles of quality culture development, we remain committed to combining tradition with innovation, continuously injecting fresh vitality. By both preserving our core values and embracing creative breakthroughs, we empower every employee to unleash their innovative potential, strengthening and enhancing the organization’s overall capacity for quality management and innovation. Through a wide range of dynamic, hands-on initiatives, we are building a unique quality culture that reflects our distinct identity.
(3) Encourage excellence and strengthen guidance
　　By recognizing and encouraging employees' contributions through feedback and incentives, we can address their emotional needs, unlock their inner motivation, and help them develop a sense of belonging, self-esteem, and accomplishment. This, in turn, enables them to fully realize their immense potential, take proactive ownership of quality responsibilities, and ultimately set an example for achieving quality control across the entire organization.
4. Enterprise Quality Foundation
4.1 Company Product Standards
　　Haitong is known in the industry as a master craftsman of axle bridges, diligently implementing national, industry, and local laws, regulations, and standards related to standardization. The company places great emphasis on studying and keeping pace with international standards, ensuring that all its products comply with the latest applicable national and industry standards. Moreover, Haitong actively promotes the advancement of industry-wide standardization efforts—and has never experienced a major quality-related incident.
4.2 Enterprise Measurement Level
(1) Emphasize metrology management and ensure a well-structured organization
　　The company strictly adheres to regulations such as the "People's Republic of China Metrology Law" and the "Shandong Province Metrology Management Regulations," diligently implementing the goals, tasks, and requirements set forth by the provincial bureau. To this end, we have established and refined a robust "Metrology Management System," continuously optimizing our management framework. The Technical Management Center is tasked with overseeing all aspects of the company’s metrology equipment, including management, allocation, and regular calibration of in-use instruments. Additionally, the company has strengthened professional training for metrology personnel, promptly sending staff to participate in various specialized courses organized by higher-level authorities, thereby providing strong support for standardizing and systematizing the company’s metrology practices.
(2) Metrology equipment management standards: regular verification and calibration
　　To ensure product quality, strict process control is implemented throughout the axle production process. In accordance with the company's metrology management system and the self-inspection and calibration management system for quality control measurement equipment, we enhance metrological management of raw materials and components used in the production process, guaranteeing the proper functioning of measuring devices and maintaining accurate measurements.
4.3 Certification and Accreditation Status
　　The company has successively obtained certifications for various management systems, including quality, environmental, occupational health and safety, and the integration of IT with industrialization. In terms of quality control, we implement comprehensive oversight—from raw materials to production processes and finally to finished products. Leveraging a nationally accredited laboratory equipped with cutting-edge testing equipment, we conduct rigorous trials and inspections on all our products.

 
5. Production and Quality Responsibility
5.1 Product Quality Commitment
　　To build a market environment characterized by integrity and fair competition, strengthen the quality and integrity system, ensure product quality effectively, safeguard customers' legitimate rights and interests, and promote the initiative of "quality-driven enterprises," we hereby make the following commitments:
1) Firmly establish the principle of "quality first," and continuously strengthen quality awareness and social responsibility.
Awareness, ensuring and improving product quality, fulfilling the primary responsibility of enterprises for quality, and boosting consumer confidence in their purchases.
2) Strengthen quality management across all personnel, throughout the entire process, and from every possible angle; promote advanced quality management practices.
The law strengthens the metrology assurance system, standardization system, and quality assurance system, while rigorously controlling quality at every stage—from raw materials and production processes to product release, storage, transportation, and sales.
3) Establish a proactive reporting system for quality and safety incidents, rigorously enforce the accountability system for quality and safety responsibilities, enhance the product quality traceability system, promptly address consumer quality complaints, and voluntarily fulfill service commitments such as product recalls and the "Three Guarantees."
Quality and After-Sales Service Commitment Letter
　　To fulfill our commitment to quality, continuously deliver premium axle products, and genuinely serve our customers, our company hereby solemnly pledges the following to society and our valued customers:
1. Maintain the effective operation of the quality management system and ensure its continuous improvement;
2. First-pass yield of finished products ≥ 99.6%.
3. The product pass rate at the factory is 100%.
4. Customer satisfaction ≥ 92%.
5. Provide customers with excellent service and strive for zero complaints regarding product quality.
5.2 Product Recall Status
　　The company strictly adheres to the provisions of China’s relevant laws and regulations, including the *Product Quality Law* and the *Measurement Law*, while actively committing to serving customers by establishing a robust after-sales service system. Additionally, the company has progressively refined its *Defective Product Recall System*. To ensure that all axle assemblies leaving the factory meet stringent quality standards, the company implements rigorous, multi-layered quality controls at every stage of production—enforcing proactive measures from the very beginning, starting with meticulous management of incoming raw materials. At the same time, the company has intensified efforts to promptly address defective or non-conforming products at each process step, developing effective procedures and methodologies to maintain consistent product quality.
5.3 Three-Guarantee Responsibility
　　To proactively fulfill our corporate responsibility for quality and prioritize the protection of customer interests, the company has diligently implemented comprehensive pre-sales, in-sales, and after-sales services. For component products identified as having quality issues through arbitration by a third-party inspection agency, we voluntarily assume full responsibility, including "guaranteed returns and exchanges."
6. Quality Risk Control
6.1 Handling Quality Complaints
　　The company has launched an after-sales service hotline, providing customers with a convenient channel for inquiries, complaints, and suggestions. Additionally, it has established comprehensive customer complaint management guidelines to ensure swift communication of customer feedback and prompt, effective resolution of issues. To gauge customer satisfaction, the company has set annual "User Satisfaction" performance targets and regularly reviews the types and frequency of customer complaints. Through structured quality meetings and other forums, the company analyzes these complaints, assigns accountability to relevant departments, and continuously refines its processes to enhance overall customer satisfaction.
The company has designated the Customer Service Department of the Quality Center as the primary entity responsible for after-sales product services. This department handles all customer complaints—whether pre-sale, in-sale, or post-sale—and coordinates and ensures the timely resolution of each issue, while also overseeing and managing the process. Meanwhile, the Quality Assurance Department is tasked with addressing customer inquiries and handling quality-related complaints. Responsibilities for customer grievances and complaints have been clearly assigned to specific teams. Additionally, the company conducts an annual customer satisfaction survey to identify potential areas of dissatisfaction, analyzes these findings, and ensures that corrective actions are implemented effectively by the relevant departments.
6.2 Quality Risk Monitoring
　　The company has established corporate quality profiles and a comprehensive database for comparing production quality, continuously refining and strengthening quality risk monitoring. It regularly reviews and analyzes the current quality status at each stage, implementing targeted solutions to systematically optimize and enhance quality management approaches and focus areas. Additionally, the company conducts periodic assessments of quality conditions, carrying out safety and quality risk monitoring, analysis, and evaluation—ensuring a robust system that consistently delivers homogeneous, stable, and high-quality products while effectively mitigating safety and quality risks across the board.
6.3 Emergency Management
　　The Quality Assurance Department formally notifies the responsible department in writing via a "Major Quality Incident Notification Form," accompanied by the "Major Quality Incident Investigation Report." The company then organizes relevant departments to thoroughly analyze the incident, identify its root causes, and implement corrective and preventive measures. Additionally, accountability and disciplinary actions are taken to ensure that such incidents do not recur. The responsible parties must promptly provide feedback to the Quality Assurance Department regarding the incident’s root cause and the proposed remediation plan. The Quality Assurance Department will verify the outcomes and submit them for approval by the company’s senior management. Meanwhile, a written inspection report is prepared and submitted to the higher-level supervisory authority, and any involved leaders or individuals found accountable will face rigorous disciplinary action.

Looking ahead to 2021

　　Quality management is a company’s soft power, while credibility serves as its foundation—and also stands as one of the key factors limiting its growth. There’s no such thing as “perfect quality” once and for all; instead, only a continuously improving quality management system can sustain excellence. Strong creditworthiness, in turn, relies on outstanding product quality and is maintained through exceptional customer service. Looking ahead, our company will steadfastly advance quality management with a profound sense of responsibility and a strong mission-driven mindset, ensuring that our corporate credibility remains rock-solid. We’ll seize market opportunities by delivering products of unparalleled quality, while nurturing lasting customer loyalty through unwavering trust and reliability. To achieve this, we’ll relentlessly refine and optimize our quality management systems, driving them toward seamless, high-performance operations. At the same time, we’ll foster a robust quality awareness across every team member, reinforcing the brand’s esteemed image and ensuring that each employee embodies the core principles: "Quality is life," and "Credit is the foundation." By putting these philosophies into action—both internally and externally—we’ll translate our commitment to quality into tangible results. Through ongoing initiatives aimed at cost reduction, efficiency enhancement, and operational improvements, we’ll embed the essence of the *Quality Development Blueprint* into every stage of our production process. This includes strengthening rigorous quality oversight throughout the entire workflow. Ultimately, our goal is to consistently deliver superior products and services that exceed customer expectations, earning their trust and loyalty. Above all, we remain firmly committed to upholding our enterprise’s primary responsibility for quality, building upon quality as the cornerstone and credit as the bedrock of our success. By prioritizing quality and integrity, we’ll not only secure sustainable growth but also achieve true excellence in both business performance and market leadership.