Zhengchang Forging Presentation 2012 Eng F-verison [

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2 PRESENTATION OF ZHENGCHANG FORGING

3 30 minutes from shanghai by Air 3 hours from Hangzhou by bullet train 2 hours from Ningbo by bullet train Beijing hangzhou Shanghai Ningbo Rui`an

Basic Information Location: Rui`an, China Founded: 1988 Registration capital:20 million RMB Employee: 500 people Landing:50000 m2 Product:auto parts,electric

4 Basic Information Location: Rui`an, China Founded: 1988 Registration capital:20 million RMB Employee: 500 people Landing:50000 m2 Product:auto parts,electric parts Process:Forging,Machining Output: Forging Tons Machined 5million pcs QMS: ISO/TS:16949 EMS: ISO:14001 Market:Automotive industry Electric industry

5 Company Logo

6 Development history 1988, establishment of Rui`an Qianjin Forging factory 1995, supplier to Shanghai Gear General Factory 1998, establishment of Rui`an Zhengchang Forging Co.,ltd 2000, supplier to Eaton truck parts (shanghai) Applied ISO:9001 Quality management system 2002,T2 supplier to China First Auto Workshop. (FAW Changchun) 2003,supplier the largest heavy duty truck Gearbox manufacturer Shanxi Fast Gear group and World 500,Electic Giant Schneider Electric. 2006, supplier to Great wall motor the first Chinese auto company who successfully sell autos to Europe market. 2006, T2 supplier to Beijing HYUNDAI. 2007, Applied ISO/TS:16949 quality management system. 2008, Applied ISO:14001 Environmental Protection system 2009, supplier to the most fast growing autos company--byd motors. 2010, supplier to Hangzhou HAVECO Automotive Transmission Co., Ltd supplier to Vibracoustic (Yantai) 2011,supplier to SANY Group

7 Employee deployment (Total 500 people) Operator, 400 employee Administor R&D QC people Operator Administor, 35 QC people, 45 R&D, 20

8 3. Employee Employee Y 2005Y 2006Y 2007Y 2008Y 2009Y 2010Y 2011Y

9 Sales value Amount (million)

10 Main business field 35% 5% 60% automotive electric other machinery

11 Fuller,Eaton, series gear shift fork shifter arm Company Logo

12 Commercial Vehicle and passenger vehicle parts

13 Commercial Vehicle and passenger vehicle parts

14 Forged Gear Blank

15 Railway industry

16 Other processed parts Other machinery products

17 Electric parts

18 Main customers

19 Honors and certificates 2007 ISO/TS:16949 certified by TUV 2008 ISO:14001 certified by Head of NQA 2008 Zhejiang Famous brand certificate 2009 High and New Tech Enterprise of Zhejiang

20 Main material supplier SN Supplier Name Material duration Quality data 1 上钢五厂 baosteel 8620H 45# 15 years Good 2 东北特钢 Dongbei Special Steel 8620RH 40Cr 12 years Good 3 大冶特钢 Daye Special Steel 60# 45# 12 years Good 4 江阴兴澄特钢 XingCheng Steel (CPS) 42CrMo 40Cr 20CrMnTi 12 years Good 5 石家庄钢厂 shijiazhuang steel 40Cr 60# 45# 10years Good

21 Forging Simulation

22 Tooling Manufacturing equipments

23 Medium -frequency induction heating machine

24 Digital control screw press Tonnage: 250T T

25 Cold coining hydraulic press Tonnage: 120T T

26 Numerical Control Lathe QTY: 21 sets

27 CNC Machining center QTY: 10 sets

28 Main machining equipment Name Type QTY Name Type QTY NC milling machine BM-2040CNC 2 台 Honing machine HM 台 XK7145A 21 台 CD6140A 2 台 Turning machine Normal milling X5032A 11 台 C 台 Vertical drill Z5140B 11 台 Flat grinding 7132M 2 台 NC turning CJK6150H 21 台 Universal grinding 1432A 1 台 Drill plus mill X54242A 1 台 Bench drill Z 台 Horizontal mill X 台 Tool grinder MA 台 CNC CMV 台 peripheral milling MA1420A 1 台

29 magnetic particle inspection Inspection equipments Profile inspect machine metallurgical analysis apparatus tensile testing machine Hardness tester Roughness tester

30 Direct read spectrometer Inspection equipments CMM Micro hardness tester horizontal metallurgical microscope Layer thickness tester

31 Zhejiang Zhengchang Daosen Group Co.,Ltd Basic Data: Capital:120 Million RMB Founded : 2008 subsidies: 32 companies Landing area: 25 acres Target: 800 million RMB

32 制造设备 Equipment New factory in Rui`an economic development zone

33 发展规划 Investment plan 我司二期厂房已经进入工程设计阶段, 建成后的新厂房位于市经济开发区阁巷新区 15 号, 占地 35 亩, 集研发生产生产销售于一体销售于一体计划投入 2.2 亿元人民币, 引进世界先进的自动化生产和检测设备, 主要生产汽车配件火车机车配件火车机车配件矿山机械矿山机械有色金属等系列产品, 专门为汽车主机厂及输配电行业配套从原材料进厂到成品, 工艺设计引进三维有限元锻造分析, 整个生产过程采用计算机条型码管理和生产信息化管理, 打造国内一流的锻造热处理及机加工生产企业目前, 厂房已经进入设计评审阶段, 整个进程正按计划时间顺利进行, 预计两年后可投入生产 The second factory of Zhengchang is located at Rui`an Economical development zone, about 20 minutes` driving away from current factory. The total landing area of the new factory is about 24,000.0 m2 with a investment proximately about 220 millions RMB. Facilitated by advanced automatic manufacturing and inspection equipment, the new factory will continually focused on auto industry, railway industry and non-ferrous metal parts industry, Provide OEM service for local Chinese big OEMS and oversea market. Bar code system and information management system will be applied through the whole manufacturing process from raw material, forging to finished parts. Three-dimensional finite element method will introduced for the forging design process. The final mission is to establish an advanced, first-class, modern production lines combined with forging, machining, heat treatment. The new factory currently is under designing process and will be put into use in two years according to the project schedule.

34 New equipment plan for tool Plan: End of High speed milling center 2.NC Electric sparking machining equipment

35 Plan:2011~2012 buy ton hot die forging machine

Plan: End of 2011~2012 1 箱式气体渗碳淬火生产线 box type gas carburizing and quenching

36 Plan: End of 2011~ 箱式气体渗碳淬火生产线 box type gas carburizing and quenching line 2 网带淬火炉 Belt Carburizing Quenching Furnace 3 自动通过式清洗机 automatic cleaning line

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