Quality Policies and Quality Objectives

3.1 Quality Policies of the Company

Quality policies: “excelsior product quality, wonderful services and continuous innovation”

1. Connotation of “excelsior product quality” is as follows:

Our company’s production and sales of various products, including men and women stockings, knitted underwear, clothes, necktie and cosmetics, etc., strictly execute national standards, industrial standards, enterprise inner control standards and requirements of contracts with customers (or requirements of foreign standards provided by customers). As for quality, style, appearance, color and technological performance, we ensure to conform to customers’ requirements and applicable laws and regulations. “Excelsior product quality” requires all employees with excelsior working quality to produce excelsior product quality.

2. Connotation of “wonderful services” is as follows:

All employees are required to be enthusiastic and honest to provide sound and excellent services for the whole process from purchase of raw materials, production, processing, manufacturing until delivery of products and after-sales services. It emphasizes the previous procedure serves the following procedure. Our company’s thought of services for customers and customer satisfaction is our final objective.

3. Connotation of “continuous innovation” is as follows:

(1) Ensure continuous satisfaction of customers’ present needs and expectations and their potential needs and expectations;

(2) Realize continuous customer satisfaction;

(3) Make continuous product improvement and product innovation;

(4) Make continuous improvement on quality management system and realize process innovation and optimization.

(5) All employees participate in technological innovation and management methods upgrading.

3.2 Quality Objectives of the Company

According to requirements of quality objectives, the company shall achieve the following quality objectives in three years:

1) Customer satisfaction reaches 95%, an increase of 1% gradually year by year;

2) Qualification rate of once inspection on various work procedures reaches 98% at the end of 2006, 98.5% at the end of 2007 and 99% at the end of 2008;

3) Qualification rate of sampling inspection reaches 99.8% at the end of 2006, 99.9% at the end of 2007 and 100% at the end of 2008;

4) Langsha Brand keeps the China Famous Brand, the China Branding Business and the National Products Exemption from Quality Surveillance Inspection

5) The company executes management in strict accordance with ISO9001 Quality Management System Certification.

3.3 Quality Measures

Strengthen quality education and improve consciousness of customer requirements;

Value educational training and continuously improve quality of employees;

Insist on technological progress and continuously improve technological devices;

Restrict quality control and ensure effective operation of systems;

Create beautiful environment and build up civilized enterprise image;

Provide wonderful services and ensure customer satisfaction.