Preface

The quality integrity report issued by the company is prepared in accordance with relevant national quality laws, regulations, rules and relevant industrial quality standards and specifications. The report on the company's quality integrity and quality management is a true reflection of the company's current situation. The company is responsible for the objectivity of the report content and the authenticity and scientificity of relevant discussions and conclusions.

Report scope:

The organizational scope of this report is CITIC Valve Co., Ltd. This report describes the company's ideas, systems, measures and achievements in quality management, product quality responsibility and quality integrity management from January 1, 2021 to December 31, 2021.

Report release form:

The company regularly issues a quality credit report every year. The report is published on the company's network platform and Intranet in the form of electronic documents. Welcome to read and put forward valuable opinions.

General Manager Speech

Integrity is the basic criterion for an enterprise. CITIC Valve Co., Ltd. is committed to creating a fair, transparent and open environment and corporate culture for all participants in the company's value chain.

CITIC Valve Co., Ltd. was founded in 1984. The company specializes in the production of industrial valves for more than 30 years. The company is now a national high-tech enterprise and a member of China Valve Association. The company is people-oriented, with technology as the core, market-oriented, quality as the guarantee, and is committed to scientific and technological innovation. It has successively developed 13 categories of butterfly valves, butterfly valves, gate valves, globe valves, check valves, hydraulic control valves, open butterfly valves, special valves for special working conditions, and various special valves used in metallurgy, power stations, petrochemical and other industries, with a total of more than 4000 varieties and specifications. All technologies have reached the international advanced level. The products are widely used in petroleum, chemical industry, metallurgy, electric power and other industries, and are highly praised by users.

The company attaches great importance to the construction of quality management system, has established a perfect quality management system, and has passed the quality management system certification, which provides a reliable quality assurance for the company to further develop the market. The company has established a set of scientific and perfect quality control system, and its products meet the national standards in the industry and the standards of Zhejiang manufacturing group, which are widely recognized by customers at home and abroad. In addition, the company has successively established an environmental management system and an occupational health and safety management system, which have passed the certification.

In the modern economic society, integrity is not only a moral code, but also an important resource that can bring economic benefits to the enterprise. Quality integrity is the core element to win customers. The corporate culture requires all employees to speak of integrity, establish themselves with integrity, shape the integrity culture, improve the core competitiveness of the enterprise, and strive to build an excellent valve enterprise most popular with customers.

General manager of CITIC Valve Co., Ltd.: Yang xuanjian

Report body

1、Company profile

Zhejiang CITIC Valve Co., Ltd. is located in the Binhai Park of Wenzhou Economic and Technological Development Zone, the hometown of pumps and valves in China. Founded in 1984, the company has a registered capital of 118 million yuan, covers an area of 23000 square meters, a construction area of 16500 square meters, 153 sets of processing and testing equipment, and has 97 employees, including 27 engineering and technical personnel. The company specializes in the production of industrial valves for more than 30 years. The company is now a national high-tech enterprise and a member of China Valve Association.

The company has established advanced physical and chemical laboratories and advanced test and detection equipment; Two German portable spectrum analyzers, ultrasonic flaw detector, ultrasonic thickness gauge, screen display hydraulic universal material testing machine, low temperature impact testing machine, magnetic particle flaw detector, portable and desktop hardness tester and other testing equipment are imported.

The company has advanced processing equipment. All the main parts are precision mechanical equipment such as multi station machining center, CNC lathe and CNC boring machine. At the same time, the company also has a number of large-scale processing equipment, such as CNC vertical lathe with a diameter of 2.5m and 3.5m and various supporting equipment. The production of large-diameter valves is one of the advantages of the enterprise.

The company is people-oriented, with technology as the core, market-oriented, quality as the guarantee, and is committed to scientific and technological innovation. It has successively developed 13 categories of butterfly valves, butterfly valves, gate valves, globe valves, check valves, hydraulic control valves, open butterfly valves, special valves for special working conditions, and various special valves used in metallurgy, power stations, petrochemical and other industries, with a total of more than 4000 varieties and specifications. All technologies have reached the international advanced level. The products are widely used in petroleum, chemical industry, metallurgy, electric power and other industries, and are highly praised by users.

Leading the times and serving the society is our belief and obligation!

Excellence and perfection, endless, is our goal and pursuit!

2、Enterprise quality concept

Since its establishment, the company has been committed to product quality control. Always uphold that product quality is the cornerstone of the survival and development of the enterprise and the prerequisite for occupying the market and winning customers. Quality comes from my heart. The enterprise depends on the quality concept of customers, and constantly improve and improve the quality management level of the company. Since the company passed the quality management system certification, the company has always adhered to the principle of "survival by quality, development by science and technology, market-oriented, continuous improvement and customer protection".

The quality policy of "satisfaction" is implemented in strict accordance with the requirements of relevant laws and regulations, quality management system standards, quality manual and procedure documents, so that the enterprise's quality management system can be operated effectively, the product quality can be effectively guaranteed and continuously improved, and all quality objectives of the enterprise can be basically achieved. In order to fundamentally strengthen and improve the quality management and improve the operation quality of the company, the company takes the introduction of excellent performance mode as an opportunity to implement total quality management, and uses project management to constantly find improvement opportunities, improve quality management and gradually achieve excellent performance through internal audit, self-evaluation, second-party audit, third-party audit or evaluation, quality month and other activities. Since its establishment, the company has never had any major product quality complaints. In the sampling inspection by quality and technical supervision departments at all levels over the years, the qualified rate has reached 100%.

3、Enterprise quality management

（1） Quality management organization

A product is the output or result of a process. Product quality is determined by process quality, and process quality is determined by system quality. In order to ensure the quality of systems, processes and products, the company has identified the required processes and their interface relations and established the company's quality management structure by using the system and process methods of management according to the standard requirements of quality management system. Organization chart of the company's quality management system:

At the same time, the company has established a chief quality officer to determine the responsibilities and authorities of the chief quality officer, implement one vote veto on quality, and comprehensively establish the company's quality culture. Due to the importance attached to the quality and safety of products and services, the general manager of the company has performed the following duties:

1) Participate in the formulation, review and determination of quality strategy;

2) Convey to the organization the importance of meeting customer requirements and legal and regulatory requirements;

3) Formulate quality policy;

4) Ensure the formulation of quality objectives;

5) Conduct management review;

6) Ensure access to resources;

7) Personally participate in daily quality meeting and monthly quality meeting;

8) Participate in major product quality review and quality improvement activities;

9) Participate in quality recognition activities;

10) Establish a clear quality accident accountability and quality safety traceability system.

（2） Quality management system

1. Quality management system policies and objectives

The quality management system established and implemented by the company has formulated the quality policy of "quality first, customer first, based on the market and continuous improvement"; Based on: 1) annual survey, customer satisfaction ≥ 90%; 2) The qualified rate of finished products is 100%.

In order to continuously improve the company's quality management system, the company formulates plans every year and implements each step audit of the quality management system. Look for improvement opportunities through internal audit. At the same time, the company will also make full use of the opportunities of two-party audit and three-party audit to improve the effectiveness of the quality management system.

The introduction of excellent performance management mode and the implementation of total quality management have made the company's quality management system from continuous improvement to the pursuit of excellence, and established an integrated total quality management system with the company's strategy as the core and GB / T 19580 excellent performance mode as the framework. Meet the requirements of customers, employees, suppliers, society and partners, and establish corresponding strategic planning and quality objectives at all levels of the company. Based on the company's performance appraisal system, the quality appraisal KPI and quality accountability system have been established.

2. Quality education

In the process of system operation, based on PDCA system method, the company uses various scientific and effective tools to measure, analyze and improve the effectiveness of the quality management system and the performance of various departments and levels, and uses benchmarking comparison and learning to constantly revise individual work ideas and consciousness, so as to ensure the realization of individual and company overall objectives. Establish a trainer system within the company and carry out various education and training according to the specific situation of the company; Externally, actively communicate with customers, government functional departments and various training institutions, and timely invite experts to conduct special training for the company's employees. The company regularly carries out targeted quality education for employees at all levels in combination with system operation and actual quality performance, and carries out special management on quality control points to ensure the consistency of product quality in the manufacturing process.

In order to firmly establish the integrity awareness of all employees, the company formulates this year's quality integrity education and training plan at the beginning of each year. Implement three-level quality integrity education and training. The company shall organize first-class education. The person in charge of each department shall prepare the education and training plan and content according to the requirements of the company, and carefully organize and implement the education and training of subordinates. Each team leader is responsible for the integrity publicity and education of employees. The company communicates through websites and enterprise wechat groups, and implements quality integrity education for enterprise employees by means of morning meetings and other means. The company will give certain rewards to those who have made outstanding achievements in quality integrity education and training, and also give certain rewards to those who have taken the lead or made outstanding achievements in their posts after training. At the same time, the company will publicize and promote experience among employees. Employees who fail to participate in quality integrity education and training on time or fail to pass the training assessment shall be given certain punishment.

3. Quality regulations and responsibility system

By collecting laws and regulations and other standards and requirements, the company formulates internal relevant standards to make products meet the requirements of national laws and regulations and national and industrial standards (some product indicators are higher than the requirements of industrial standards), and practice social responsibility from product technology. At the same time, the company has formulated nonconforming product management system and abnormal quality reward and punishment management system to control product quality problems, punish or reward the corresponding responsible person, and follow the principle of not letting go of quality accidents.

The company has formulated the internal audit control procedure and management review control procedure, and trained the internal auditor team. In order to ensure the effectiveness and continuous improvement of system operation, internal audit, process audit and product audit shall be arranged. For the nonconformities found in the audit, the responsible department shall analyze the causes, formulate corrective or preventive measures, implement the rectification, verify the rectification effect, finally form an internal audit report, and put forward suggestions on the rectification of the system and the prevention of nonconformities, As an important input of management review, it shall be reported to the top management.

The company has formulated control procedure for nonconforming products and control procedure for corrective and preventive measures to strictly control nonconforming products. The company has formulated inspection standards, which shall be implemented in accordance with the inspection standards. Only after passing the inspection can it flow into the next process or leave the factory. Any unqualified products have clear requirements for identification, recording, isolation and treatment. All kinds of unqualified products must be re inspected and qualified before entering the next process, or scrapped directly.

At the same time, all nonconformities shall be recorded in detail, and after statistical analysis by a specially assigned person, the responsible unit shall formulate corrective measures and make rectification according to the control procedure for corrective and preventive measures. The problem items can be closed only after the corrective measures are evaluated to be effective.

In addition, the company carries out accountability and education for quality problems, emphasizes standardization in daily development and production operations, makes full use of PDCA cycle, continuously improves and pursues excellence.

（3） Quality and safety risk management

The company controls special processes. In the process, all processes from raw materials entering the factory to finished products leaving the factory shall be strictly controlled, and the product quality shall be strictly controlled. In the whole process, the incoming inspection, process inspection and final inspection are set up to check at all levels. And carry out quality management system audit, process audit, product audit, etc. as required.

In terms of quality management and control, the company has established a review and release system to prevent quality and safety risks. The company has formulated the quality and safety emergency plan and established an emergency leading group with the management representative as the team leader, the deputy general manager of technology and the deputy general manager of sales as the deputy team leader, and the procurement department, production department, quality management department, finance department and administration department as the team members. The responsibilities of the emergency leading group and relevant departments are defined.

In order to respond quickly and effectively reduce risks, the company has also established the management system of reward and punishment for abnormal quality to prevent and reduce quality and safety risks. The following figure is the risk management flow chart.

4、Quality integrity management

（1） Quality commitment

1) Integrity and law-abiding

The senior leaders followed the management concept of "operating according to law and operating in good faith", strictly followed the economic law, contract law, product quality law, production safety law, environmental protection law, labor law and relevant laws and regulations of the machinery industry, and established and implemented the quality, environment, occupational health and safety management system, which has passed the certification. We have implemented legal knowledge training for employees, cooperated with government departments to carry out law popularization education activities, encouraged and commended the "positive energy" of employees, and made the style of integrity and law-abiding penetrate into all employees of the company. The active default rate of the company's contract is zero, the company never defaults on bank loans, the overdue accounts receivable is reduced to a reasonable range, the company's senior and middle-level leaders have no record of violating laws and disciplines, and the number of employees breaking the law is zero. The company has established a good credit and moral image in customers, suppliers, employees and society. The company is a contract abiding and trustworthy enterprise of the State Council.

2) Meet customer needs

The company attaches great importance to technology research and development. Through independent research and development, the company has developed various types of metal hard seal butterfly valves to improve product quality and provide customers with high-level products with high cost performance. The company strengthens R & D investment, focuses on customer needs, actively listens to customers' opinions and suggestions on function, quality and cost, and carries out product improvement and innovation activities to meet customers' needs for products and delivery time. In terms of product quality, the company strictly implements the quality management system and ensures product quality and safety by carrying out technical research, quality improvement and other activities.

When consumers receive the products, they need to count the quantity and check the appearance of the products. If the valves are found to be invalid due to quality problems such as material defects, poor manufacturing and unreasonable design, the manufacturer shall promise to replace or repair the products free of charge within 18 months or 2 years after delivery.

Over the years, the company strictly abides by the confidentiality agreements signed with all relevant parties in the whole business activities, has won high praise from customers, and is often invited by customers to participate in the development of new projects.

（2）Operation management

1) Product design integrity management

The company's product design and R & D strictly follow the design control procedure, and control the whole process related to R & D from R & D project initiation, various activity records, R & D process summary and management evaluation. Respecting others' knowledge and participating in the practice of protecting intellectual property rights is one of the important contents of our design and development work.

2) Integrity management of raw materials or parts procurement.

The enterprise classifies materials according to their risk to product quality.