Pre-sales Quality Assurance

1. Quality Guarantee Period

1.1. The quality guarantee period for the contractual goods is 12 months starting from the date when the goods pass the acceptance inspection and are put into operation. If relevant laws, regulations, government rules, or national/industry standards specify a guarantee period longer than the aforementioned, the longer period will prevail.

1.2. If due to the buyer's reasons, the inspection and operation of the contractual goods are not completed within 10 months from the arrival of the last batch of goods at the delivery site, the quality guarantee period will be 18 months from the arrival of the last batch of goods.

1.3. If the goods fail the trial inspection during assembly due to major technical defects and only pass after rectification, the reasons and corrective measures must be documented in the factory files. The quality guarantee period will be extended by 12 months beyond the aforementioned timeframe.

2. Claims During the Quality Guarantee Period

If defects or non-compliance with contract specifications are found within the quality guarantee period, the buyer may file a claim. If the supplier disputes the claim, they must submit a written objection within 7 days of receiving the buyer's notice; otherwise, the claim is considered accepted. If the supplier does not dispute or if the dispute is invalid, the supplier must repair, replace, or compensate the buyer, as requested. The guarantee period will then be extended by one year. Any losses caused by the supplier's fault, including downtime for repairs or replacements, will be borne by the supplier.

3. Handling During the Guarantee Period

If defects requiring repair or replacement due to the supplier's fault result in downtime, the quality guarantee period will restart upon rectification. All resulting losses, including costs for inspections, tests, expert consultations, transportation, and installation, will be borne by the supplier. If defects in components are discovered but do not affect operation, t he quality guarantee period for replaced or repaired components will also restart.

4. Potential Defects Beyond the Guarantee Period

The expiration of the quality guarantee period does not exempt the supplier from liability for potential defects that may damage the goods. If such defects appear within 10 years after the guarantee period, the buyer may request free repairs or replacements for the defective goods or batch.

5. Operational Lifespan Commitment

The supplier guarantees proper functioning of the goods for at least 10 years under correct installation, operation, and maintenance. If potential defects or fundamental issues are identified during the lifespan, the supplier must notify the buyer in writing immediately.

6. Adoption of Mature Technology

The supplier must use proven, mature technologies and materials. Any new technologies, materials, or processes not previously used must have the buyer's prior approval. If untested new technologies or materials are used, the buyer has the right to return or demand replacements, holding the supplier accountable for breach of contract. Approval does not exempt the supplier from liability under the contract. The supplier is responsible for all quality issues of equipment and parts procured from subcontractors.

7. Consequences of Supplier Defects

If defects in goods or errors in technical documentation result in scrapping or rework, the supplier must immediately replace or compensate for the losses at no cost. All expenses, including replacement and delivery costs, will be borne by the supplier. Delays in completing repairs or replacements will be treated as late delivery under the contract.

8. Buyer Responsibility for Improper Use

If damages arise from incorrect installation, operation, or maintenance by the buyer, the buyer is responsible for repairs or replacements. However, the supplier must promptly provide necessary replacement parts, and emergency parts requested by the buyer must be shipped by the fastest means, with costs borne by the buyer.

9. Remedies for Defective Goods During Guarantee Period

If defects are found, the buyer may choose one or more of the following remedies:

9.1 Repair

The supplier must repair the defective goods to meet contract requirements at their expense. Repairs must be completed within 30 days unless the buyer agrees otherwise. Delays will incur penalties. Persistent defects allow the buyer to request replacements, purchase alternatives from third parties, or terminate the contract.

9.2 Replacement

The supplier must replace defective goods with compliant ones at their expense within 30 days unless the buyer agrees otherwise. Delays or repeated defects will allow the buyer to demand returns, purchase alternatives, or terminate the contract.

9.3 Return

The buyer may return defective goods, and the supplier must retrieve them from the installation site. The supplier must refund the payment and cover installation, dismantling, transport, and replacement costs within 30 days, failing which penalties apply.

9.4 Price Reduction

By mutual agreement, defective goods may be discounted. The supplier must refund the price difference within 30 days, failing which penalties apply.

9.5 Third-Party Procurement

The buyer may procure alternatives from third parties, with all associated costs borne by the supplier.

10. Choosing any of the above remedies does not exempt the supplier from liability for breaches or losses caused to the buyer.

11. Paint and Corrosion Guarantee

The supplier must ensure the goods' coating prevents corrosion for at least 5 years after acceptance. If defects such as peeling or rust occur, the supplier must rectify them free of charge.

12. Defective Batch Recall

If batch defects are identified, the supplier must initiate a recall.

13. Other Agreements

13.1. The supplier must maintain the goods throughout their lifespan, provide free software updates, and resolve fundamental issues at no cost.

13.2. The supplier's software must be compatible with various hardware. If current hardware becomes obsolete, the supplier guarantees compatibility with new hardware.

13.3. When the buyer purchases related equipment, the supplier must provide technical agreements to ensure system compatibility.

13.4. The supplier must provide spare parts within 5 working days post-guarantee, at the lower of contract or market prices.

13.5. Communication modules must meet national certification requirements.

Comprehensive Quality Management System

1. Overview and System

Huaihua Jiannan Machinery Factory Co., Ltd., a former electronics military enterprise, regards "craftsmanship" and "military-grade quality" as its foundational principles. The company adheres to the quality policy of “advancing enterprise development with technology and exceeding customer expectations with quality.”

Comprehensive quality control is implemented throughout product design, material procurement, manufacturing, production processes, and monitoring. The company has achieved certifications for the GB/T 19001:2016/ISO 9001:2015 Quality Management System and the GB/T 24001-2016/ISO 14001:2015 Environmental Management System. It has also adopted the Yonyou ERP management system for material control and cost reduction. To ensure effective production process control, a self-developed production management system is employed. This system enforces process compliance, preventing progression without adherence to defined procedures and enabling traceability for each product, thus guaranteeing quality control.

The Quality Management Department, comprising 62 members (2 with master's degrees, 5 with bachelor's degrees, and others with at least a high school education), oversees quality management. The department is subdivided into QE (Quality Engineering), QA (Quality Assurance), and QC (Quality Control) teams.

Applicable Standards:

· GB/T 2828.1-2012: Sampling inspection procedures

· GB/T 13384-2008: General technical conditions for the packaging of electromechanical products

· Various standards for electrical and multifunctional energy meters, including GB/T 17215 series and DL/T 614-2007, and communication protocols DL/T 645-2007

An optimized quality management process ensures that products meet customer requirements.

2. Quality Control Processes

2.1 Design and Development Quality Management

The company incorporates quality into the design and development phase, tracking and analyzing every stage. It employs tools like APQP (Advanced Product Quality Planning) and FMEA (Failure Mode and Effects Analysis) to prevent design defects and address potential quality risks, enhancing product reliability. Extensive reliability testing is conducted to ensure the product’s design lifespan exceeds national standards.

2.2 Supplier Selection

To ensure supplier qualifications and capabilities, suppliers are chosen based on a strict "inquiry, comparison, and negotiation" principle. Priority is given to suppliers with strong quality records and significant industry achievements. Material samples undergo rigorous testing, and only suppliers meeting these criteria are included in the approved supplier list.

2.3 Incoming Material Quality Control

The company maintains a robust material quality control system comprising supplier induction, certification, batch supply control, and quality assurance. Inspection Standards and Guidelines have been developed to ensure raw materials meet quality requirements. Defective materials are rejected, and suppliers must implement corrective measures verified during subsequent deliveries.

2.4 Production Quality Control

Each production step undergoes strict quality checks, with special attention to key processes. Material specifications are verified before production to prevent errors. Any quality issues during production require a 5D improvement report, and production can only resume once measures are confirmed effective by the Quality Management Department.

2.5 Incoming Material Inspection

Materials from suppliers are inspected following GB/T 2828.1-2012 standards. Non-conforming materials are returned, and suppliers must submit an 8D corrective action report. Follow-up inspections verify the effectiveness of corrective measures, forming a closed-loop process.

2.6 Process Quality Issue Handling

Defective processes exceeding control limits trigger feedback and a production halt to prevent batch defects. Issues are escalated per the quality control protocol, and temporary measures are implemented within 30 minutes to minimize production losses. Responsible departments are penalized based on downtime statistics.

2.7 Final Product Inspection

All finished products undergo full inspection and OQC (Outgoing Quality Control) sampling. Any issues identified during final inspection require corrective action and re-testing before shipment. Products with unresolved performance issues are prohibited from leaving the factory.

2.8 After-Sales Quality Complaint Handling

Customer complaints are addressed promptly. A quality task force is established upon receipt of a complaint, analyzing and identifying root causes. Customers receive a response within two hours, detailing the resolution plan and timelines for replacement or repair.

By establishing stringent quality control mechanisms, the company ensures its products meet and exceed customer expectations.