Gmp qms验厂报告20170525 by Xi Fu plastic products co.,ltd

COSTCO WHOLESALE CORPORATION GMP Audit Summary Performance Overview Audit Details 10171111044 10171111045

BV Ref: Auditor:

MAGUS HUANG DEREK LIN

Audit Date:

May 25, 2017

Date of Previous Audit:

NIL

Previous Audit #:

NIL

Vendor Name:

PEACHTREE PLAYTHINGS (HK) LTD.

Factory Name:

DONGGUAN XIFU PLASTICS PRODUCTS CO LTD

Address:

Bldg. No.8, Nanshan Second Industrial Area, Yantian Village, Fenggang Town, Dongguan City, Guangdong Province, China

E-Mail Address:

LANGPINGLUO@163.COM

Tel:

(86)769-87564799

Country:

CHINA

Category:

Toys Summary Non Conformance(s)

Total Compliance Level to Standard 91.92%

Critical(s) 0

Major(s) 1

Minor(s) 17

Risk Level for Supply ORANGE

The factory identified above has undergone the referenced audits on behalf of Costco Wholesale. Detailed results are contained in the referenced reports provided separately. The vendor must submit a Corrective Action Plan to Bureau Veritas within 14 days from audit date. Pls upload this CAP directly to the Costco EFA BPM system (https://bpm.costco.com/ProcessPortal). Bureau Veritas will review the CAP, add the 'Objective Evidences Required' and communicate further with factory to arrive at a mutually agreed CAP. Bureau Veritas will then forward this Reviewed CAPA to Costco within 30 days from audit date. Upon receipt of the Reviewed CAP, Costco will determine the timing and nature of follow-up activities.

The above reflects our findings for the particular factory in concern on the date of our service only. This report does not certify, confirm or imply: a) compliance with any government, industry or association regulations or standards, unless stated otherwise; or, b) the quality of any specific products manufactured by the factory/sellers/suppliers; or, c the shipment of any specific products. This report does not discharge or release the factory/sellers/suppliers from their commercial, legal or contractual obligations with buyers in respect of products manufactured by the factory/sellers/suppliers. Our services, including reports and certificates, are subject to the General Conditions of Service of Bureau Veritas which have been sent to your company. They can be resent upon written request. This report cannot be partially copied. Any reader other that the party for which this report has been specifically issued is hereby informed that the General Conditions of Service of Bureau Veritas contain liability limitation provisions.

Page 1 of 1

QMS MODULE_V8_14APR2016 (COSTCO WHOLESALE CORPORATION) BUREAU VERITAS PROPRIETARY - copyright Bureau Veritas [2004] DO NOT DISCLOSE OUTSIDE YOUR ORGANISATION WITHOUT BUREAU VERITAS PRIOR WRITTEN CONSENT.

Performance Overview Audit Details BV Ref:

10171111044

Auditor:

MAGUS HUANG

Audit Date:

May 25, 2017

Date of Previous Audit:

NIL

Previous Audit #:

NIL

Vendor Name:

PEACHTREE PLAYTHINGS (HK) LTD.

Factory Name:

DONGGUAN XIFU PLASTICS PRODUCTS CO LTD

Address:

Bldg. No.8, Nanshan Second Industrial Area, Yantian Village, Fenggang Town, Dongguan City, Guangdong Province, China

E-Mail Address:

LANGPINGLUO@163.COM

Tel:

(86)769-87564799

Country:

CHINA

Fax: (86)769-87564598

Scope of Audit Injection Molding, Roto casting, Spraying Painting, Silkscreen Printing, Pad Printing, Manual coloring, Assembly and Packing of Plastic & Electronic Toys

Audit Category Plastic & Electronic Toys

Key Personnel Present at Audit (please tick 'X' below) Name

Job Title

Opening Meeting

On-site Audit

Mr. Luo Langping

QA Manager

Mr. Zhao Shuwu

Production Manager

Mrs. Wang Yanyan

Adminitration Clerk

Mr. He Shiming

General Manager

Documentation Review

Closing Meeting

Audit Results Non Conformance(s) Total Compliance Level to Standard

90.17%

Critical(s)

Major(s)

Minor(s)

Risk Level for Supply

YELLOW

Follow-up frequency 12 MONTHLY FOLLOW-UP

The above reflects our findings for the particular factory in concern on the date of our service only. This report does not certify, confirm or imply: a) compliance with any Page 1 of 6 government, industry or association regulations or standards, unless stated otherwise; or, b) the quality of any specific products manufactured by the factory/sellers/suppliers; or, c) the shipment of any specific products. This report does not discharge or release the factory/sellers/suppliers from their commercial, legal or contractual obligations with buyers in respect of products manufactured by the factory/sellers/suppliers. Our services, including reports and certificates, are subject to the General Conditions of Service of Bureau Veritas which have been sent to your company. They can be resent upon written request. This report cannot be partially copied. Any reader other that the party for which this report has been specifically issued is hereby informed that the General Conditions of Service of Bureau Veritas contain liability limitation provisions. BV Office Name: Bureau Veritas Shenzhen Company Limited Address: 4F, Block B, Min Li Da Industrial Bldg., 4th Area, Hong Hua Ling Industrial Area, Xi Li, Nan Shan District, Shenzhen City, Guangdong Province, China Country Name: China Tel: Fax: N/A E-mail: N/A

Company Profile ~Factory established: January 6, 2014 (Shown on business license) ~Main manufacturing processes: Injection Molding, Roto casting, Spraying Painting, Silkscreen Printing, Pad Printing, Manual coloring, Assembly and Packing ~Product category: Plastic & Electronic Toys. ~Factory area: about 8,600 square meters ~Employee number: 130 employees ~Production capacity: About 300,000 pieces per month and the lead time was 45~60 days ~International certification: ISO9001:2008, Certified by Beijing Zhong-An-Zhi-Huan Certification Centre, Certification Number: 02815Q11409R0S, Valid Date: September 15, 2018; GSV, Certified by ITS, Certification Number: A14340-368659-R5, Valid Date: January 29, 2018; ICTI, Certified by BV, Certification Number: C003589, Expiry Date: Nov. 14 2017. ~Peak season: Not obviously ~Major market: Europe, US and ASIA ~Major customer: Costco(40%), Wal-Mart(30%), Disney(20%), etc. ~Working time: 2 shifts for injection molding and roto casting process (day shift 08:00~20:00, 20:00~ next 08:00); 1 shift per day for other processes (08:00-12:00, 13:30-17:30), 5 days per week, Monday to Friday, Saturday was regarded as overtime when need. ~Product liability insurance and product recall insurance were not purchased. Remark: 1. Audit Request# 201704-NFGMP-02395. 2. The factory used whole building 8 as production areas and warehouse, and used 1st~3rd floor of building 4 as warehouse and production areas, the building 8 and building 4 were in the same production zone.

The above reflects our findings for the particular factory in concern on the date of our service only. This report does not certify, confirm or imply: a) compliance with any Page 2 of 6 government, industry or association regulations or standards, unless stated otherwise; or, b) the quality of any specific products manufactured by the factory/sellers/suppliers; or, c) the shipment of any specific products. This report does not discharge or release the factory/sellers/suppliers from their commercial, legal or contractual obligations with buyers in respect of products manufactured by the factory/sellers/suppliers. Our services, including reports and certificates, are subject to the General Conditions of Service of Bureau Veritas which have been sent to your company. They can be resent upon written request. This report cannot be partially copied. Any reader other that the party for which this report has been specifically issued is hereby informed that the General Conditions of Service of Bureau Veritas contain liability limitation provisions. BV Office Name: Bureau Veritas Shenzhen Company Limited Address: 4F, Block B, Min Li Da Industrial Bldg., 4th Area, Hong Hua Ling Industrial Area, Xi Li, Nan Shan District, Shenzhen City, Guangdong Province, China Country Name: China Tel: Fax: N/A E-mail: N/A

Analysis of Site Compliance

89.2

90.2

TOTAL COMPLIANCE

76.7

7. PERSONNEL

100.0

6. PROCESS CONTROL

86.5

5. PRODUCT CONFORMITY ASSESSMENT

98.4

4. PRODUCT CONTROL

100.0

3. MANAGEMENT SYSTEM

87.6

2. SENIOR MANAGEMENT COMMITMENT AND CONTINUAL IMPROVEMENT

100 80 60 40 20 0

1. General Management Elements

Total Compliance Level to Standard (%)

Audit Score Overview

Section

NB: Total Compliance Color reflects "Risk level for supply"

The above reflects our findings for the particular factory in concern on the date of our service only. This report does not certify, confirm or imply: a) compliance with any Page 3 of 6 government, industry or association regulations or standards, unless stated otherwise; or, b) the quality of any specific products manufactured by the factory/sellers/suppliers; or, c) the shipment of any specific products. This report does not discharge or release the factory/sellers/suppliers from their commercial, legal or contractual obligations with buyers in respect of products manufactured by the factory/sellers/suppliers. Our services, including reports and certificates, are subject to the General Conditions of Service of Bureau Veritas which have been sent to your company. They can be resent upon written request. This report cannot be partially copied. Any reader other that the party for which this report has been specifically issued is hereby informed that the General Conditions of Service of Bureau Veritas contain liability limitation provisions. BV Office Name: Bureau Veritas Shenzhen Company Limited Address: 4F, Block B, Min Li Da Industrial Bldg., 4th Area, Hong Hua Ling Industrial Area, Xi Li, Nan Shan District, Shenzhen City, Guangdong Province, China Country Name: China Tel: Fax: N/A E-mail: N/A

Degree of compliance Overview (per section)

Section 1. General Management Elements 2. Senior Management Commitment And Continual Improvement 3. Management System 4. Product Control 5. Product Conformity Assessment 6. Process Control 7. Personnel

OVERALL

Total Questions

Green

Yellow

Orange

Red

12 (60.00%)

4 (20.00%)

0 (0.00%)

4 (20.00%)

3 (100.00%)

0 (0.00%)

24 (96.00%)

1 (4.00%)

0 (0.00%)

13 (76.47%)

4 (23.53%)

0 (0.00%)

8 (88.89%)

0 (0.00%)

1 (11.11%)

3 (60.00%)

2 (40.00%)

0 (0.00%)

5 (83.33%)

1 (16.67%)

0 (0.00%)

68 (80.00%)

12 (14.12%)

0 (0.00%)

5 (5.88%)

85 (100%)

N/A

Audit Findings Summary Critical Non-conformance Section Clause No.

Clause Requirement

Levels of NonConformance

Audit Findings

NIL

Please submit a corrective action plan within 14 days after the audit for the nonconformanceâ&#x20AC;&#x2122;s mentioned in the above and underneath sections.

The above reflects our findings for the particular factory in concern on the date of our service only. This report does not certify, confirm or imply: a) compliance with any Page 4 of 6 government, industry or association regulations or standards, unless stated otherwise; or, b) the quality of any specific products manufactured by the factory/sellers/suppliers; or, c) the shipment of any specific products. This report does not discharge or release the factory/sellers/suppliers from their commercial, legal or contractual obligations with buyers in respect of products manufactured by the factory/sellers/suppliers. Our services, including reports and certificates, are subject to the General Conditions of Service of Bureau Veritas which have been sent to your company. They can be resent upon written request. This report cannot be partially copied. Any reader other that the party for which this report has been specifically issued is hereby informed that the General Conditions of Service of Bureau Veritas contain liability limitation provisions. BV Office Name: Bureau Veritas Shenzhen Company Limited Address: 4F, Block B, Min Li Da Industrial Bldg., 4th Area, Hong Hua Ling Industrial Area, Xi Li, Nan Shan District, Shenzhen City, Guangdong Province, China Country Name: China Tel: Fax: N/A E-mail: N/A

Audit Findings Summary Clause No.

Clause Requirement

Levels of NonConformance

Audit Findings

General Management Elements

1.1.1

Building exterior and interior shall be maintained in good conditions to prevent product contamination.

Minor ( YELLOW )

The company premises were well maintained in good condition in most places, but one cracked window was found in assembly and packing workshop during this audit.

1.3.1

Premises are sufficiently illuminated in order to permit effective cleaning, production, monitoring, and inspection.

Minor ( YELLOW )

The lighting in some areas was insufficient, such as 58 lux in plastic raw materials warehouse and 455 lux in pad printing area. For reference, the lighting was sufficient in some areas, such as 1129 lux in IQC inspection area and 357 lux in packing area. Remark: the lighting should be: 1. Inspection Areas: more than 750 Lux 2. Production Areas: more than 550 Lux 3. Carton Packaging Area: more than 300 Lux 4. Warehouse/Storage and Loading Areas: more than 150 Lux.

1.4.1

Cleaning practices shall be completed so as to minimise risk of contamination.

Minor ( YELLOW )

The factory had performed the cleaning practices daily, and the relevant records were provided for review, but per on-site observation, it was found some scrapped packaging materials were found in assembly area, and one piece food packaging was found on semi-finished products temporary storage area in assembly and packing workshop during this audit.

1.4.2

All cleaning equipment in all areas are located such that contamination of process, storage, packing, and flow areas is prevented.

Minor ( YELLOW )

No dedicated storage area was available to store cleaning equipment in production and warehouse areas. And by factory tour, cleaning tools were not segregated from materials in plastic raw materials warehouse.

MANAGEMENT SYSTEM

3.8.2

Raw materials (including packaging), work in progress and finished products shall be identified to ensure traceability.

Minor ( YELLOW )

The factory established documented materials and products identification and traceability procedure, and most materials and products were properly identified with tracing information, but it was found that some semi-finished products in assembly and packing workshop were not properly identified with PO/Lot number, production date, inspection status, etc. to ensure traceability.

PRODUCT CONTROL

4.1.2

Where exposed products or materials face a risk of broken glass contamination, glass windows shall be protected against breakage.

Minor ( YELLOW )

The factory established glass control procedure, most glass windows were properly protected, but one cracked window was found in assembly and packing workshop during this audit.

4.2.4

All chemicals are segregated during storage and separated from raw materials and finished products by a physical barrier.

Minor ( YELLOW )

The factory had designated area to store chemicals, and most container of chemicals were identified, but one container of chemicals in chemicals warehouse and one container of chemicals in assembly area were not identified.

4.3.1

Procedures shall be in place at storage and production areas to prevent cross contamination and misuse of raw materials, packaging and finished products.

Minor ( YELLOW )

Most materials, products were properly stored, but some packing materials were directly placed onto floor in packing area, which may cause contamination.

The above reflects our findings for the particular factory in concern on the date of our service only. This report does not certify, confirm or imply: a) compliance with any Page 5 of 6 government, industry or association regulations or standards, unless stated otherwise; or, b) the quality of any specific products manufactured by the factory/sellers/suppliers; or, c) the shipment of any specific products. This report does not discharge or release the factory/sellers/suppliers from their commercial, legal or contractual obligations with buyers in respect of products manufactured by the factory/sellers/suppliers. Our services, including reports and certificates, are subject to the General Conditions of Service of Bureau Veritas which have been sent to your company. They can be resent upon written request. This report cannot be partially copied. Any reader other that the party for which this report has been specifically issued is hereby informed that the General Conditions of Service of Bureau Veritas contain liability limitation provisions. BV Office Name: Bureau Veritas Shenzhen Company Limited Address: 4F, Block B, Min Li Da Industrial Bldg., 4th Area, Hong Hua Ling Industrial Area, Xi Li, Nan Shan District, Shenzhen City, Guangdong Province, China Country Name: China Tel: Fax: N/A E-mail: N/A

4.5.1

The company shall establish procedures for the identification, segregation, investigation and disposition of non-conforming raw materials (including packaging), work-in-progressand finished products. Disposition of finished products shall be per any applicable customer requirements.

Minor ( YELLOW )

The factory had designated area to store non-conforming materials and products, and most non-conforming products were stored and identified properly, but some non-conforming products in non-conforming products storage of manual coloring area were stored with good ones.

PROCESS CONTROL

6.2.1

Measuring and monitoring equipment used to verify conformance to specifications are routinely calibrated to recognized national standards.

Minor ( YELLOW )

The factory established equipment calibration procedure and periodically calibrated most testing equipment, but one set electronic balance was not calibrated in IQC inspection area.

6.2.2

Records of equipment calibration re-calibration are maintained.

and

Minor ( YELLOW )

The factory established equipment calibration procedure and periodically calibrated most testing equipments, but no records were available to prove that one set electronic balance in IQC inspection area was calibrated.

PERSONNEL

7.2.3

Designated areas for smoking and eating are available and located away from the production floor.

Minor ( YELLOW )

The factory had designated drinking area, most drinking containers were placed at the designated area, but one piece food packaging was found on semi-finished products temporary storage area in assembly and packing workshop.

The above reflects our findings for the particular factory in concern on the date of our service only. This report does not certify, confirm or imply: a) compliance with any Page 6 of 6 government, industry or association regulations or standards, unless stated otherwise; or, b) the quality of any specific products manufactured by the factory/sellers/suppliers; or, c) the shipment of any specific products. This report does not discharge or release the factory/sellers/suppliers from their commercial, legal or contractual obligations with buyers in respect of products manufactured by the factory/sellers/suppliers. Our services, including reports and certificates, are subject to the General Conditions of Service of Bureau Veritas which have been sent to your company. They can be resent upon written request. This report cannot be partially copied. Any reader other that the party for which this report has been specifically issued is hereby informed that the General Conditions of Service of Bureau Veritas contain liability limitation provisions. BV Office Name: Bureau Veritas Shenzhen Company Limited Address: 4F, Block B, Min Li Da Industrial Bldg., 4th Area, Hong Hua Ling Industrial Area, Xi Li, Nan Shan District, Shenzhen City, Guangdong Province, China Country Name: China Tel: Fax: N/A E-mail: N/A

Report No.: 10171111044 Factory name: Dongguan Xifu Plastics Products Co., Ltd. Audit date: May 25, 2017 Page 1 of 4 Digital Photo Records

Factory building 8 exterior view, and the factory used whole building

Factory name

Factory building 4 (the factory used 1st to 3rd floor of building)

Raw plastic materials warehouse

Raw materials warehouse

Finished products warehouse

Injection molding workshop

Roto casting area

Spray painting area

10) Silk-screen and pad printing area

11) Manual coloring area

12) Assembly and packing workshop

Report No.: 10171111044 Factory name: Dongguan Xifu Plastics Products Co., Ltd. Audit date: May 25, 2017 Page 2 of 4

13) Packing area

14) IQC inspection area

15) IPQC inspection area

16) Final inspection area

17) Testing room

18) Non-conforming storage area

19) Sharp tool was fastened

20) Chemical materials warehouse

21) Humidity and temperature controller

22) Working instruction on site

23) Approval sample on site

24) Sufficient lighting in packing area (357 lux)

25) One cracked window was found in assembly and packing

Sufficient lighting in IQC inspection area(1129 lux)

26) Insufficient lighting in plastic raw materials warehouse

Report No.: 10171111044 Factory name: Dongguan Xifu Plastics Products Co., Ltd. Audit date: May 25, 2017 Page 3 of 4 workshop area(58 lux)

27) Insufficient lighting in pad printing area (455 lux)

28) Some scrapped packaging materials were found in assembly area

29) Some semi-finished products in assembly and packing workshop were not properly identified with PO/Lot number, production date, inspection status, etc.

30) One piece food packaging was found on semi-finished products temporary storage area in assembly and packing workshop

31) One container of chemicals in chemicals warehouse was not identified

32) Some packing materials were directly placed onto floor in packing area

33) Some non-conforming products in non-conforming products storage of manual coloring area were stored with good ones

34) One set electronic balance was not calibrated in IQC inspection area

35) Cleaning tools were not segregated from materials in plastic raw materials warehouse

36) Example products

Nil

37) Nil

38) Nil

Report No.: 10171111044 Factory name: Dongguan Xifu Plastics Products Co., Ltd. Audit date: May 25, 2017 Page 4 of 4 Business license

TOYS CAPABILITY AND CAPACITY PROTOCOL _V2.0 - 31MAY2016 (COSTCO WHOLESALE CORPORATION) BUREAU VERITAS PROPRIETARY - copyright Bureau Veritas [2004] DO NOT DISCLOSE OUTSIDE YOUR ORGANISATION WITHOUT BUREAU VERITAS PRIOR WRITTEN CONSENT.

Performance Overview Audit Details BV Ref:

10171111045

Auditor:

DEREK LIN

Audit Date:

May 25, 2017

Date of Previous Audit:

NIL

Previous Audit #:

NIL

Vendor Name:

PEACHTREE PLAYTHINGS (HK) LTD.

Factory Name:

DONGGUAN XIFU PLASTICS PRODUCTS CO LTD

Address:

Bldg. No.8, Nanshan Second Industrial Area, Yantian Village, Fenggang Town, Dongguan City, Guangdong Province, China

E-Mail Address:

LANGPINGLUO@163.COM

Tel:

(86)769-87564799

Country:

CHINA

Fax: (86)769-87564598

Scope of Audit Injection Molding, Roto casting, Spraying Painting, Silkscreen Printing, Pad Printing, Manual coloring, Assembly and Packing of Plastic & Electronic Toys

Audit Category Plastic & Electronic Toys

Key Personnel Present at Audit (please tick 'X' below) Name

Job Title

Opening Meeting

On-site Audit

Mr. Luo Langping

QA Manager

Mr. Zhao Shuwu

Production Manager

Mrs. Wang Yanyan

Adminitration Clerk

Mr. He Shiming

General Manager

Documentation Review

Closing Meeting

Audit Results Non Conformance(s) Total Compliance Level to Standard

93.67%

Critical(s)

Major(s)

Minor(s)

Risk Level for Supply

ORANGE

Follow-up frequency 12 MONTH FOLLOW-UP

The above reflects our findings for the particular factory in concern on the date of our service only. This report does not certify, confirm or imply: a) compliance with any Page 1 of 5 government, industry or association regulations or standards, unless stated otherwise; or, b) the quality of any specific products manufactured by the factory/sellers/suppliers; or, c) the shipment of any specific products. This report does not discharge or release the factory/sellers/suppliers from their commercial, legal or contractual obligations with buyers in respect of products manufactured by the factory/sellers/suppliers. Our services, including reports and certificates, are subject to the General Conditions of Service of Bureau Veritas which have been sent to your company. They can be resent upon written request. This report cannot be partially copied. Any reader other that the party for which this report has been specifically issued is hereby informed that the General Conditions of Service of Bureau Veritas contain liability limitation provisions. BV Office Name: Bureau Veritas Shenzhen Company Limited Address: 4F, Block B, Min Li Da Industrial Bldg., 4th Area, Hong Hua Ling Industrial Area, Xi Li, Nan Shan District, Shenzhen City, Guangdong Province, China Country Name: China Tel: Fax: N/A E-mail: N/A

The above reflects our findings for the particular factory in concern on the date of our service only. This report does not certify, confirm or imply: a) compliance with any Page 2 of 5 government, industry or association regulations or standards, unless stated otherwise; or, b) the quality of any specific products manufactured by the factory/sellers/suppliers; or, c) the shipment of any specific products. This report does not discharge or release the factory/sellers/suppliers from their commercial, legal or contractual obligations with buyers in respect of products manufactured by the factory/sellers/suppliers. Our services, including reports and certificates, are subject to the General Conditions of Service of Bureau Veritas which have been sent to your company. They can be resent upon written request. This report cannot be partially copied. Any reader other that the party for which this report has been specifically issued is hereby informed that the General Conditions of Service of Bureau Veritas contain liability limitation provisions. BV Office Name: Bureau Veritas Shenzhen Company Limited Address: 4F, Block B, Min Li Da Industrial Bldg., 4th Area, Hong Hua Ling Industrial Area, Xi Li, Nan Shan District, Shenzhen City, Guangdong Province, China Country Name: China Tel: Fax: N/A E-mail: N/A

Analysis of Site Compliance

100

93.7

93.6

93.7

2. M

TO TA L

CO M PL

IA N

i fi Sp ec To y 3.

tS en an a

ge m

0 ys t

Total Compliance Level to Standard (%)

Audit Score Overview

Section

NB: Total Compliance Color reflects "Risk level for supply"

The above reflects our findings for the particular factory in concern on the date of our service only. This report does not certify, confirm or imply: a) compliance with any Page 3 of 5 government, industry or association regulations or standards, unless stated otherwise; or, b) the quality of any specific products manufactured by the factory/sellers/suppliers; or, c) the shipment of any specific products. This report does not discharge or release the factory/sellers/suppliers from their commercial, legal or contractual obligations with buyers in respect of products manufactured by the factory/sellers/suppliers. Our services, including reports and certificates, are subject to the General Conditions of Service of Bureau Veritas which have been sent to your company. They can be resent upon written request. This report cannot be partially copied. Any reader other that the party for which this report has been specifically issued is hereby informed that the General Conditions of Service of Bureau Veritas contain liability limitation provisions. BV Office Name: Bureau Veritas Shenzhen Company Limited Address: 4F, Block B, Min Li Da Industrial Bldg., 4th Area, Hong Hua Ling Industrial Area, Xi Li, Nan Shan District, Shenzhen City, Guangdong Province, China Country Name: China Tel: Fax: N/A E-mail: N/A

Degree of compliance Overview (per section)

Section 1. General Management Element 2. Management System 3. Toy Specific

OVERALL

Total Questions

Green

Yellow

Orange

Red

0 (0.00%)

19 (100.00%)

10 (83.33%)

2 (16.67%)

0 (0.00%)

47 (49.47%)

3 (3.16%)

1 (1.05%)

0 (0.00%)

44 (46.32%)

57 (45.24%)

5 (3.97%)

1 (0.79%)

0 (0.00%)

63 (50.00%)

126 (100%)

N/A

Audit Findings Summary Critical Non-conformance Section Clause No.

Clause Requirement

Levels of NonConformance

Audit Findings

NIL

Please submit a corrective action plan within 14 days after the audit for the nonconformanceâ&#x20AC;&#x2122;s mentioned in the above and underneath sections.

The above reflects our findings for the particular factory in concern on the date of our service only. This report does not certify, confirm or imply: a) compliance with any Page 4 of 5 government, industry or association regulations or standards, unless stated otherwise; or, b) the quality of any specific products manufactured by the factory/sellers/suppliers; or, c) the shipment of any specific products. This report does not discharge or release the factory/sellers/suppliers from their commercial, legal or contractual obligations with buyers in respect of products manufactured by the factory/sellers/suppliers. Our services, including reports and certificates, are subject to the General Conditions of Service of Bureau Veritas which have been sent to your company. They can be resent upon written request. This report cannot be partially copied. Any reader other that the party for which this report has been specifically issued is hereby informed that the General Conditions of Service of Bureau Veritas contain liability limitation provisions. BV Office Name: Bureau Veritas Shenzhen Company Limited Address: 4F, Block B, Min Li Da Industrial Bldg., 4th Area, Hong Hua Ling Industrial Area, Xi Li, Nan Shan District, Shenzhen City, Guangdong Province, China Country Name: China Tel: Fax: N/A E-mail: N/A

Audit Findings Summary Clause No.

Clause Requirement

Levels of NonConformance

Audit Findings

Management System

2.3.1.2

The company shall establish a maintenance program to ensure all equipment and production machinery are adequately maintained.

Minor ( YELLOW )

The factory had set up maintenance program, and maintenance records were maintained, but per on-site checking, it was noted that the maintenance records were not completed from May 08, 2017 for one mixing machine in the injection molding workshop.

2.4.2.1

Procedures shall be in place to ensure that all critical machine settings are adjusted, monitored, and used according to both equipment and product specifications.

Minor ( YELLOW )

Most parameters were identified and monitored in the factory, like parameters for Roto-casting machines, injection molding machines, but no parameters monitoring records for one ultra-sonic welding machine.

Toy Specific

3.3.12

The storage area shall protect the raw material from effects of weather, contamination and/or infestation.

Major ( ORANGE )

Per on-site checking, it was noted that some materials were not well stored to avoid risk, for example, some packaging materials were placed directly on the floor in packing area and raw materials warehouse.

3.12.2

Molding / Die Casting parameters (cycle time, temperature, pressure) shall be monitored.

Minor ( YELLOW )

The factory had defined and monitored parameter of injection molding , but per on-site checking, it was noted that the actually temperature was exceeded controlled limited.

3.13.1

All paint containers shall be sealed when not in use.

Minor ( YELLOW )

Per on-site checking, it was noted that one paint container in the spray painting area was not sealed when not in use.

3.16.2

Procedures and controls shall be in place for gluing/welding/staking application on every product which include application method, time, pressure, temperature, frequency etc.

Minor ( YELLOW )

The factory had defined parameters for ultra-sonic welding, but no parameters monitoring records for one ultra welding machines.

The above reflects our findings for the particular factory in concern on the date of our service only. This report does not certify, confirm or imply: a) compliance with any Page 5 of 5 government, industry or association regulations or standards, unless stated otherwise; or, b) the quality of any specific products manufactured by the factory/sellers/suppliers; or, c) the shipment of any specific products. This report does not discharge or release the factory/sellers/suppliers from their commercial, legal or contractual obligations with buyers in respect of products manufactured by the factory/sellers/suppliers. Our services, including reports and certificates, are subject to the General Conditions of Service of Bureau Veritas which have been sent to your company. They can be resent upon written request. This report cannot be partially copied. Any reader other that the party for which this report has been specifically issued is hereby informed that the General Conditions of Service of Bureau Veritas contain liability limitation provisions. BV Office Name: Bureau Veritas Shenzhen Company Limited Address: 4F, Block B, Min Li Da Industrial Bldg., 4th Area, Hong Hua Ling Industrial Area, Xi Li, Nan Shan District, Shenzhen City, Guangdong Province, China Country Name: China Tel: Fax: N/A E-mail: N/A

Report No.: 10171111045 Factory name: Dongguan Xifu Plastics Products Co., Ltd. Audit date: May 25, 2017 Page 1 of 3 Digital Photo Records

1) Factory building 8 exterior view, and the factory used whole building

2) Factory name

3) Factory building 4 exterior view, and the factory used 1st~3rd floor

4) Raw materials warehouse

5) Raw plastic materials warehouse

6) Finished products warehouse

7) Injection molding workshop

8) Roto-casting workshop

9) Spray painting area

10) Silk-screen and Pad Printing

11) Manual coloring area

12) Assembly and packing workshop

Report No.: 10171111045 Factory name: Dongguan Xifu Plastics Products Co., Ltd. Audit date: May 25, 2017 Page 2 of 3

13) IQC inspection area

14) IPQC inspection area

15) FQC inspection area

16) Internal testing area

17) Working instructions

18) Reference sample with comment

19) MSDS

20) Parameter monitoring records for injection molding workshop

21) Packaging materials in the raw materials warehouse were placed on the floor directly Nil

22) Not sealed paints in the spray painting area

23) Example product

24) Nil

Report No.: 10171111045 Factory name: Dongguan Xifu Plastics Products Co., Ltd. Audit date: May 25, 2017 Page 3 of 3 Business license

Capability & Capacity FA Pre- Audit Questionnaire ( PAQ) Instruction: 1. Supplier/ Factory representatives must complete all the required fields( highlighted in yellow), put N/A if not applicable. 2. Supplier/Factory shall provide accurate informations to represent the factory to be audited. BV Auditor will verified during the audit. 3. Supplier/ Factory need to submit this completed PAQ to BV Coordinator at least 5 days before confirmed audit date.

Auditor Sources of Information

AUDITOR COMMENT (only when discrepancy is observed)

1. Factory Overview Factory Name Factory Address Factory Phone Number Factory Fax Number

Dongguan Xi Fu Plastics Products Co.,Ltd Bldg. No.8, Nanshan Second Industrial Area, YanTian Village, FengGang Town, DongGuan City, GuangDong Province, China 0769-87564799 0769-87564598

URL/Web Address Name of Contact E-mail address

He Shiming cdj-china@163.com

Year Established

Business License Business License Business Card Business Card Business Card and interview Business Card Business Card Business License Floor Plan Floor Plan Floor Plan

2014

Number of Buildings

3 2

Total Production Area M

3280

Warehouse Area M

3486

No URL/Web address was provided

2. Personnel 2.1 Key Staff General Manager Quality/Technical Manager Production Manager

heshiming luolangping zhaoshuwu

R & D Manager Health & Safety Officer Security Representative/Officer

N/A Ran Rongcheng Ran Rongcheng

87564799 87564799

Equipment Maintenance Others (please specify)

chenshuisheng

87564799

Year(s) in Position

Year(s) at

at Company 3 3 3

Company 3 3 3

E-mail cdj-china@163.com langpingluo@163.com swjhao@126.com

Tel 87564799 87564799 87564799

Name

langpingluo@163.com langpingluo@163.com

3 3

Factory management Factory management Factory management No RD manager in the factory, this was a OEM factory and sample would be approved by customer.

Factory management interview Factory management Factory management Factory management interview

No e-mail address was provided

Employee List Employee List Employee List Employee List Employee List Employee List Employee List Employee List

Factory claimed no part time employee Factory claimed no part time Factory claimed no part time Factory claimed no part time Factory claimed no part time Factory claimed no part time Factory claimed no part time Factory claimed no part time

Employee List

Factory claimed no part time

2.2 Personnel / Headcount by Department Department

Full time

Part time

Sub Total

30 25 30 10 10 5 5 15

0 0 0 0 0 0 0 0 0

30 25 30 10 10 5 5 15 0 130

injection assemble painting rotate oven molding QC Engineer financial stuff Adminstrater stuff

Grand Total:

3. Export Markets Markets U.S. / North America E.U. Asia Others Domestic

% of Total Business Volume

40 25 20 15

Factory management Factory management Factory management Factory management Factory management

No sales reports were provided No sales reports were provided No sales reports were provided No sales reports were provided No sales reports were provided

Factory management Factory management Factory management Factory management

No sales reports were provided No sales reports were provided No sales reports were provided No sales reports were provided

Factory management interview Factory management interview

No sales reports were provided No sales reports were provided

4. Key Clients (past 12 months) Customers Costco walmart Disney Others

% Business 40 30 20 10

Type of Products plastic toy /vinyl products plastic toy /vinyl products plastic toy /vinyl products plastic toy /vinyl products

Market(s) USA E.U ASIA USA USA ASIA USA ASIA

5. Product Capabilities 5.1 What items the factory produced in past 12 months?

Product Category

Years of Experience Producing Product

plastic toy electronic toys

13 10

Actual Units Shipped 2 million pcs 1 million pcs

5.2 What are the current items being produced? Product Category DIY Coin bank night light plastic figures

Material

Client

Ship date

Quantity (units)

PVC ABS+PVC ABS/PVC/TPR

walmarl costco disney

2017/05/10 2017/06/15 2017/06/15

50,000 100,000 50,000

` Management review and onManagement review and onsite observation

6. Production Capabilities In case of power shortage, is back-up generator in place? If yes, how many and what is the capacity of each generator?

Yes 1X80KW

6.1 List of Major Machinery / Utilities Machinery

Production plan and on-site Production plan and on-site Production plan and on-site

Type

Quantity

Condition

injection molding machine

80T-300T

Roto casting machine Ultra welding machine blister packing machine pad painting machine silk screen pad

/ 15K-20K auto single-6C /

4 2 2 10 10

OK OK OK OK OK

Machinery List Machinery List Machinery List Machinery List Machinery List Machinery List

"BUREAU VERITAS PROPRIETARY- unpublished work, copyright [2013] Bureau Veritas - DO NOT DISCLOSE OUTSIDE YOUR ORGANISATION WITHOUT BUREAU VERITAS PRIOR WRITTEN CONSENT". Page 1 of 2 SD192_C_FA_PRE-AUDIT_QUESTIONNAIRE_REV01_13NOV15

Auditor Sources of Information

AUDITOR COMMENT (only when discrepancy is observed)

6.2 List of Process being subcontracted Process Subcontracted

No process was con-subtracted to Management review, on site observation and document review outside factory.

N/A

6.3 List of All Main Materials used in past 12 months Material Name

Imported (Y/N)

Country of Origin

ABS PVC PP SBS

N N Y N

Taiwan China GuangDong China Thailand GuangDong China

7. Management Systems and Accreditation Accreditation ISO 9001

Materials inspection and Materials inspection and Materials inspection and Materials inspection and

(please attach copies of each) Certifying Body Zhong-An-Zhi-Huan

Yes

Date 2015/12/2

Expiry 2018/9/15

Certification review and

Certification review and management interview No ISO 14001 certification

No BRC Standard - Consumer Products

Certification review and management interview

Others (please specify):

ICTI

ICTI, Certified by BV, Certification Certification review and Number: C003589, Expiry Date: management interview Nov. 14 2017.

GSV

GSV, Certified by ITS, Certification Number: A14340Certification review and 368659-R5, Valid Date: January management interview 29, 2018;

ISO 14001

Is product certification done in terms of selling destination (e.g., UL for US, CCC for China, CE for Europeâ&#x20AC;Ś) at the factory? if Yes, please specify

Certifying Body

Date

No BRC certification

Expiry

management interview

8. Quality Control Management Are QA/QC inspectors independent of production?

Organization Chart Organization Chart Employee list

Yes

Who does the QC/QA Manager/Supervisor report to?

luolangping

How many QA/QC in total?

Name & Signature of Supplier Representative/ Title

COMPANY CHOP

(mm/dd/yyyy) Date

Name & Signature of Factory Representative/Title

COMPANY CHOP

2016/4/25 Date

"BUREAU VERITAS PROPRIETARY- unpublished work, copyright [2013] Bureau Veritas - DO NOT DISCLOSE OUTSIDE YOUR ORGANISATION WITHOUT BUREAU VERITAS PRIOR WRITTEN CONSENT". Page 2 of 2 SD192_C_FA_PRE-AUDIT_QUESTIONNAIRE_REV01_13NOV15

BV COC Letter (English version for reference)

BV COC Letter (Chinese version)