Report Number: QIP-ASI125277 Audit Date : 25 May, 2012 Expiry Date : 24 May, 2013

This report is issued by Focus Technology Co., Ltd. (Made-in-China.com) and the supervising inspectorate (SGS-CSTC Standards Technical Services Co., Ltd.) to confirm that:

Company Name : Linyi Tancheng OSB Co., Ltd. 郯城县进超木业家具厂厂厂 Showroom : http://chinaosb.en.made-in-china.com/ Address : Head Factory: Lizhuang Town, Tancheng County, Linyi City, Shandong Province, China. Branch Factory: Zhubao Town, Lanshan District, Linyi City, Shandong Province, China. Product : OSB, Bed slat, Student bed. has been on site audited for the Following Scope of Activity

1. General Information 2. Quality Management System and Product Certification 3. Production Capacity & Quality Control 4. Photos

General Comments:

Linyi Tancheng OSB Co., Ltd. is a manufacturer; it was established in 2006, located in Lizhuang Town, Tancheng County, Linyi City, Shandong Province, China & Zhubao Town, Lanshan District, Linyi City, Shandong Province, China. The workshops occupy an area of about 3,500 square meters. Linyi Tancheng OSB Co., Ltd. obtained a CE certificate for oriented strand board in 2012.

Sign for and on behalf of SGS-CSTC Standards Technical Services Co., Ltd.

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SUPPLIER ASSESSMENT REPORT Audited Company Linyi Tancheng OSB Co., Ltd. 郯城县进超木业家具厂 Audited Site: Head Factory: Lizhuang Town, Tancheng County, Linyi City, Shandong Province, China. Branch Factory: Zhubao Town, Lanshan District, Linyi City, Shandong Province, China. Representative of Mr. Hao Li Audited Company:

Consigner of Assessment Made-in-China.com

Audit Type Initial Audit

Re-audit

Valid Date From 25 May, 2012 to 24 May, 2013 Verify Report www.sgs.com Auditor Dick Li Reviewed by Jacky Ren

CONTENTS Part A: General Information Section 1: Company Overview Section 2: Human Resources Part B: Foreign Trade Capacity Section 1: Export Overall Situation Section 2: Export Business Capacity Section 3: Supplier Management Section 4: After-sales Service Capacity Part C: Product Research & Development Capacity Section 1: Product Research & Development Capacity Part D: Quality Management System and Product Certification Section 1: Quality Management System(s) and Product Certification Part E: Production Capacity & Quality Control Section 1: Production Capacity Section Section 2: Production Process Control Section 3: Company Development / Expansion Plan Part F: Financial Position Section 1: Financial Data Section 2: Key Performance Indications Section 3: Banking Section 4: Product Insurance Part G: Working Environment & Energy Saving Section 1: Working Environment Section 2: Energy Savings and Emission Reduction Part H: Photos Section 1: Photos of Documents Section 2: Photos of Company

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Part A: General Information

Section 1: Company Overview

1.1 Legal Validity Does the company have a valid Yes No Others Registration 371322600080478 business license? Number Year of established 25 Oct., 2006 Valid Date 08 Dec., 2015 Xitangzhuang village, Lizhuang Town, Tancheng County, Linyi City, Shandong Registered address Province, China. Head Factory: Lizhuang Town, Tancheng County, Linyi City, Shandong Province, China. Actual address Branch Factory: Zhubao Town, Lanshan District, Linyi City, Shandong Province, China. Is the annual review done by local authority (Industrial & Commercial Yes: It was reviewed in the year of 2012. Bureau)? Registered capital Not marked on the business license. Name of legal representative Mr. Quancai Wang Manufacturing, processing and sales of artificial board, furniture, oriented structure Business scope board (Special items within above scopes need valid licensed certificate if required, The licensed certificate valid date till 01 Dec., 2012). 1.2 Basic Information

Contact person Mr. Steven Zhao Email [email protected] 0086-13165390007; Phone number Fax number 0086-539-6178586 0086-539-8026223 URL/Web address www.lyosb.com

Company type Manufacturer Foreign trader Type of ownership Limited Company Public Company Joint Venture

State-Owned Private Owner Wholly foreign-owned enterprises Subsidiary company No subsidiary company business license was provided. Products manufactured / sold OSB, Bed slat, Student bed. scope 1.3 Company Building Information According to: Land certificate Real estate certificate Lease agreement

The workshops occupy about 3,500 square meters.

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Section 2: Human Resources

2.1 Company Chart

A B

C D E F G

2.2 Explanation of Code and Employee Details Code Department Number of employees A General manager / B Office department / C Purchasing department / D Production department / E QC department / F Sales department / G Financial department / Number in total: Confidential 2.3 Key Staff Working experience for this trade / Title Full name Education total experience (Years)

The information

was not provided.

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Part D: Quality Management System and Product Certification

1.1 Quality Management System and Product Certification Has the company obtained a valid certificate for its quality management system? Such as ISO9001, QC080000 and etc. N/A

Is product certification done in terms of selling designation (UL for US, CCC for China, CE for Europe …) at the CE product certificates company? Issued by: Global Standard Testing Service Co., Ltd.; I) Product certification list? if any No.: GST120504120S; II) Sample of product certification, if any (at least one of key products)? Product: Oriented strand board (OSB); Models: OSB/2, OSB/3, OSB/4; III) Copy of product certification sample (1-5 key products, if any)? Issued Date: 04 May, 2012.

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Part E: Production Capacity & Quality Control

Section 1: Production Capacity

1.1 Production Workflow Chart - For OSB:

Raw materials Crushing Gluing

Hot pressing Edge cutting Finished product - For student bed:

Raw materials Cutting Welding

Painting Assembly Finished product

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1.2 Products Situation (Top three Product Categories) Product Category Capacity in Top Month Average Capacity Total in 2011 The information was not provided. 1.3 Main Facilities Picture Facility name Brand or Country/Region of origin Quantity

Crushed machine China 1 Pc

Gluing machine China 3 Pcs

Hot pressing machine China 1 Pc

Edge cutting machine China 2 Sets

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Section 2: Production Process Control

2.1 Production Process Control

Item Content Observations /Comments

Very tidy Are the environmental conditions, such as tidiness Normal 1 and cleanliness being controlled and suitable for the operation performed? Need to improve Very poor Work Instructions /procedures Workmanship standard /acceptance Are the necessary items /documents provided at 2 Golden sample /Approval sample appropriate location and under control? Product picture Verbal by workshop director

Are written instructions available for incoming Has instructions and uniformly followed 3 material inspections /testing? Has instruction but no written records Is the relevant record maintained? Materials checked by QC staff

Are written inspections /testing instructions Have instructions and uniformly followed 4 available for finished products? Have instruction but no written records Is the relevant record maintained? Finished product checked by packing staff Random inspection Visual inspection What type of inspection is used for finished Function inspection 5 products? 100% inspection Visual inspection Function inspection Marked and segregated Are non-conforming units clearly marked/ 6 Segregated but not marked clearly segregated to prevent accidental dispatch? Not found on site Repaired and re-inspection Picked out 7 How are the non-conforming units handled? Used under control Others

Section 3: Company Development / Expansion Plans

3.1 Company Development / Expansion Plans Item Company Development Action(s) Timeframe 1 N/A

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Part H: Photos Section 1: Photos of Documents 1.1 Photos of Documents Description: Business License Description: Land Certificate