AUDIT REPORT

Supplier Audit INSPECTION

CNAS IB0132
Report No.: H23092778HF-A1

AUDIT INFORMATION
Client Luis Fernando(Asia)
RD STRATEGY Echeverría
Ltda Cordova
Supplier Name Shanghai Lizhi Mechanical Equipment Service Co., Ltd
Supplier Address Building 25, Changbang Road, Songjiang District, Shanghai City, China
Contact Person Vivi Telephone -
Mobile Phone +86 15221826657 Fax. -
E-mail 249273987@qq.com Web: -
Date of Audit 09/09/2023 Auditor(s) Terry Wu
Audit Stage Initial Audit Follow-up Audit Re-Audit (Previous report No.: ________ )
Product Type Mechanical Equipment
Audit Regulation GWI-028-HQT

Participators from the supplier:

Name Department Position Name Department Position
Sales
Vivi Sales - - -
department

Supplier plant view

Doc No.: IRP-274-HQT V2.0 Page 1 of 9

General Comment:
Shanghai Lizhi Mechanical Equipment Service Co., Ltd was established in 2021, located in Building 25,
Changbang Road, Songjiang District, Shanghai City, China. There were a total of 65 employees. The main
1
products of company are used mechanical equipment and so on. The company covers an area of more
than 16000 m2.
Actually found the company address was “Building 25, Changbang Road, Songjiang District, Shanghai”
2 instead of “Building 1, No. 5601 Yanqian Road, Fengxian District, Shanghai” as stated on business
license.
The supplier could not provide some information and documents for verification because confidential
3
reason, such as bank statement for the account number and the customer information.
They had been in the market for nearly two years. The supplier claims that the company engineering
4 equipment export to Southeast Asia, Middle Asia, Africa, Middle East, South-America ,Australia, Europe
and other over 30 countries, annual turnover 30 million RMB.
This place is only the supplier's office and the cooperative factory is not located in this place, so this
audit does not cover the factory, and the partial information of the factory is only provided orally by the
5
supplier. The supplier could not provide the information of intended factory, because the main products of
supplier were used mechanical equipment which usually purchased from construction site.

R&D Supervisor:
Approved by HQTS

Date: 11/09/2023

Doc No.: IRP-274-HQT Page 2 of 9

 Part 1 Company Legal Information
Information of Business License

Registration No. 91310118MA7CPEB13H

Company name
Registered address
Date of establishment
Registered capital
Name of legal representative
Business scope
Comments
Shanghai Lizhi Mechanical Equipment Service Co., Ltd
Building 1, No. 5601 Yanqian Road, Fengxian District, Shanghai
29 Nov. 2021 Valid date Perpetual
1,000,000 CNY Type of Enterprise Private Company
Xu Yong Operation Status In operation
Permitted projects: construction works; Road transport of goods (excluding
dangerous goods).(According to the law to be approved by the project, by the
relevant departments before the approval of business activities, specific
business projects to the relevant departments of the approval documents or
license shall prevail) General project: general mechanical equipment installation
services; Technical service, technology development, technology consultation,
technology exchange, technology transfer, technology dissemination; Machinery
and equipment leasing; Special equipment repair; Project management services;
Planning and design management; Socio-economic advisory services; Graphic
design and production; Landscaping engineering construction; Earthwork
construction; Professional cleaning, cleaning, disinfection services; Domestic
freight forwarder; Machinery and equipment sales; Auto parts wholesale;
Building materials sales; Hardware products wholesale; Property management;
Import and export of goods; Technology import and export.(Except for projects
subject to approval according to law, independently carry out business activities
according to law with business licenses)
Actually found the company address was “Building 25, Changbang Road,
Songjiang District, Shanghai” instead of “Building 1, No. 5601 Yanqian Road,
Fengxian District, Shanghai” as stated on business license.

Part 2 Bank Information

2.1 Information of Bank Opening License
Bank Opening License available Yes No N/A
Bank of Deposit. Zhejiang Tailong Commercial Bank, Shanghai Xinqiao Branch
Account No 31010210201000036683
Bank Statement of Recent 3 Months Yes No

Doc No.: IRP-274-HQT Page 3 of 9

2.2 Account Information to receipt payment for business: USD RMB Others:
Beneficiary’s Bank Name Citibank N.A., Hong Kong Branch

Beneficiary’s Bank Address 3 Garden Road, Central, Hong Kong

Beneficiary’s Name Shanghai Lizhi Mechanical Equipment Service Co., Ltd

Beneficiary’s Address Building 1, No. 5601 Yanqian Road, Fengxian District, Shanghai

Beneficiary’s Account Number 705540310

Remarks The company could not provide the bank statement for the account number because confidential
reason.

Doc No.: IRP-274-HQT Page 4 of 9

 Part 3 Human Resource
3.1 Supplier organization chart

Remarks The supplier could not provide the organizational chart.

3.2 Human resource

Staff Total number Percentage Staff Total number Percentage
Top management 3 4.6% General management 2 3.1%
Technical personnel 15 23.1% Sales 12 18.5%
Quality control 3 4.6% Full-time workers 30 46.1%
personnel
Temporary workers 0 0 Others 0 0
Total number of staff 65 100%
Remarks The roster or other supporting records are not provided by supplier, the supplier's oral introduction
was used as a reference.

3.3 Persons in charge of the business with the client

Manager’s Name: Xu Yong Mobile +86 13816012422
Telephone - Email 417282655@qq.com
Salesman’s Name Vivi Mobile +86 15221826657
Telephone - Email 249273987@qq.com

Remarks The general manager is also the boss.

Doc No.: IRP-274-HQT Page 5 of 9

 Part 4 Exportation Capability
4.1 Export License
Export License available Yes No Registration Number 91310118MA7CPEB13H
Acceptable quotation: FOB CIF Others:
Acceptable payment type: L/C T/T Others:
Port of shipment Shanghai Port
Assortment acceptable Yes No
Remarks Nil

4.2 Sales Capacity Per Year:

Product (Series) Annual Output Quantity Annual Output in USD
Mechanical Equipment About 350 pcs 4,000,000~5,000,000 USD

Main Customers:
The factory could not provide the customer information because confidential reason.
The information only claimed by company. The information verified by sales records.

Remarks Nil

Doc No.: IRP-274-HQT Page 6 of 9

 Part 5 Order Management
5.1 Information of intended factory
Intended factory name -

Intended factory address: -

Contact person with phone number of

-
intended factory
Co-operation with factory New partner For years, from
Same company with the factory Other:
Orders from the supplier in recent six Total orders Not yet
months (if supplier different from factory)
Remarks The supplier could not provide the information of intended factory, because the main products of
supplier were used mechanical equipment which usually purchased from construction site.
5.2 R&D/ Sampling capacity

Production design: Can R&D new product.

No R&D new product.

Sample making: Make sample according to client’s specification by them.

Make sample according to client’s specification by factory.
No sample making

Lead time of making sample: -

5.3 Quality control system:

Name of QC manager/supervisor: - Total number of QC 3
Is there in process quality control system? Yes No
Which quality control manners the company applied Information obtained
Material testing Company claimed only By files reviewed
Material inspection Company claimed only By files reviewed
In process quality control Company claimed only By files reviewed
Final inspection
Company claimed only By files reviewed
Sample level: AQL:
Product testing Company claimed only By files reviewed
Remarks The quality control system was not established by supplier.

Doc No.: IRP-274-HQT Page 7 of 9

 OTHER PHOTO ATTACHMENT

1 office building 2 factory name

3 office 4 persons in charge of the business with client

5 business license 6 business license verify on system

Doc No.: IRP-274-HQT Page 8 of 9

 7 export license 8 bank information

9 bank statement 10 USD bank information

***************************************************** End of Report ***************************************************

Doc No.: IRP-274-HQT Page 9 of 9