1 Factory Inspection Report

Auditor (s): Australian importing club Date of Audit: Dec.04. 2011 Supplier Name: Hairishen Non Woven Products Ltd. Factory Name: Same as the supplier

1. Supplier General Information

Factory Name: Xiamen Hairishen Non Woven Products Ltd. Factory Address: Floor 2, No. 236, Yecuoli, Qiaoying St., , Xiamen, , China (Mainland)

Country: CHINA Contact (General): Mr. Shengping Wei Contact (QA/QC): Mr. Shengping Wei Telephone: 86-592-6069539 Fax: 86-592-6150549 Email: [email protected] Website: http://hrsxm.en.alibaba.com/ Formally Established date: 2009 Parent Company: Hairishen Years of Production: About 5-6 years Factory Approval: N/A Factory Ownership Private

Factory Area (m² or ft²) 2300 m² No. of Assembly Lines: 4 No. of Supervisors N/A No. of QC Personnel 8 No. of R&D personnel 2 No. of sales 3 No. of Factory Personnel 120 Annual Turnover US$ 5-8 million

Note: Small to Medium Sized Factory; formally established in May 2009, namely 1 and half years’ history and previously 4 years simply acted as a sub contracting factory without official business registration. The real turnover is hard to judge.

 Product Manufactured

Product Type Capacity/Month Backpack Few in number Bag 10000pcs Shopping bags 300000-400000pcs Others 8000-10000pcs

Note: In terms of product categories, we didn’t see the abundant variety as offered at Alibaba. And we are wondering if they sub contracted to other smaller factories, especially for the backpack range. The overall product R&D capability is limited.

2 Factory Inspection Report

Around 80% of the productions are made to the clients’ designs with only 10% -20% are self-designed; The product we found on production includes travelling bag, cooler bag, and computer bag; The showroom is not available on the date we visited.

 Customer Base

Major Customers (%): Germany: 50%, British 20%; Major Markets (%): Europe

Note: Bulk export to Europe with small volume to USA. Clients’ name are undisclosed.

 Manufacturing Process

Design sketch YES Assembly YES Fabric YES Finishing YES Cutting YES Packaging YES Bartack YES

Note: No independent QC department with 2 QC people each line;

 Equipment level

Equipment Excellent Good Marginal Poor Line 1 YES YES

Line 3 YES

Line 4 YES

Note: Equipment is in good condition.

 Certification

Approval Approval Co. Date approved Approval expiry date ISO9001 N/A N/A N/A ISO14001 N/A N/A N/A

Note: Factory Management is in disorder; ISO is not applicable; No other certifications are available.

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2. Factory Pictures:

1). Factory Area

2).Exit & Fire Hydrants

3). Production Line 1

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4).Production Line 2

5). Production Line 3 & 4

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6).Bartack & Stitching & Zipper

7).Rivets

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8.Inspection & Packaging & Cutting Bed

9). design

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10). Other information

Warehouse 11).Other Credentials

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