The Company has invested RMB 3.5 million, reorganized and further improved its physics & chemistry Inspection and Testing Laboratory, which can perfectly meet various physical and chemical inspections requirements from raw material stage to product stage for all automobile products, presently, our laboratory is managed following TS 17025 and it expects to be accepted by China National Accreditation Board for Laboratories by December 2009.  

Currently, the Company is ready to invest RMB above 3 million to set up a fatigue test laboratory, when it is completed, it will be able to do fatigue tests for front axle beams, crankshafts, connecting rods, steering knuckles, drive shafts, axle shafts, etc.  

1 Production Processes Quality Control 
During the production processes, the Company applies Statistical Process Control (SPC), which uses mathematical statistics method to collect, process and analyze data generated from production and manufacturing processes thus to understand, forecast and monitor the operation status and level of each process. It is a quality control method which puts prevention first. By applying this method, we can find then eliminate nonconforming product before it is produced, thus we can save cost, reduce the cost of rejects, as well as manufacture products of superior quality. 

2 The Integrity of Product Inspection Capability
2.1 Raw Material Inspection
> Conduct chemical composition inspection for raw material with direct-reading infrared spectrometer produced by Shimadzu Company of Japan, which is characterized by high analysis efficiency, high analysis precision and good repeatability;
> Conduct measurement and analysis for non-metallic elements of carbon and sulfur with infrared carbon sulfur analyzer which is of high efficiency and precision;
> Conduct end quenching hardenability inspection with automatic hardness checking device produced by Instron Company of US, which is of high checking precision and efficiency, and can avoid manual operating errors;
> Conduct metallurgical sample preparation with automatic cutting machine and grinding & polishing machine produced by Buehler Company of US that are characterized by maintaining the original condition and assuring of accurate result of inspection;
> Conduct metallurgical micro-analysis with Olympus metallurgical microscope of Japan. It can do band inspection, nonmetallic inclusions inspection, grain size and other inspections, it has automatic analyzing function; 
> Conduct mechanical performance inspection with electric universal testing machine and mechanical impact testing machine;
> Conduct macrostructure inspection with electrolytic etching device;
> Conduct hardenability testing with end quenching testing machine;
2.2 Forging parts lay-out inspection. 
The Company employs CMM to do lay-out inspection for forging parts and dies.
2.3 Performance inspection for forging parts
> Conduct internal structure inspection for forging parts with Olympus metallurgical microscope;
> Conduct micro-hardness checking with micro-hardness checking device;
> Conduct defect analysis with Olympus stereomicroscope;
> Conduct hardness checking and testing with automatic Brinell indentation measurement system produced by FOUNDRAX, it processes advantages of high precision and efficiency, can avoid measurement errors manually made too; 
> Conduct hardness checking with conventional Brinell and Rockwell hardness testers;
2.4 Nondestructive Inspection 
The Company has seven fluorescent MPI machines that can do nondestructive inspections for all types of products, such as crankshafts, front axle beams, connecting rods, steering knuckles, etc.

In a word, in the aspect of quality assurance capability, our company can produce products of higher quality than others by following customer-oriented quality management policy, as well as by employing raw material of superior quality, advanced inspection equipment and skilled inspection staff.