We have adopted a comprehensive set of stringent quality control procedures at all stages of our production process to ensure product quality. Our quality control system ensures that our polyester filament yarns comply with the various standards set by us as well as industrial standards. Our quality control systems have been evaluated and certified by China United Certification Center and we have received ISO9001:2008 certification for our quality management system for the design, production and

service of polyester filament yarns.

Our polyester filament yarns comply with the requirements set out in the national product standards. Our DTY products comply with the national standard GB/T14460-2008, our FDY products comply with the national standard GB/T8060-2008, our POY products comply with the industrial standard FZ/T54003-2004 and our PET chip products comply with the national standard GB/T14189-2008.

In addition, we were granted with the authorization to use Oeko-Tex mark on our FDY, DTY and POY products, which certifies that our polyester filament yarns passed the test for harmful substances based on the results of inspection made according to Oeko-Tex Standard 100, product class I for baby articles.

We conduct chemical and physical testing on the raw materials we receive from our suppliers to ensure that they meet our quality requirements for use in our production. Our quality control team tests PTA and MEG samples at our testing laboratories to determine their chemical composition and purity.

During the Track Record Period, we did not experience any material quality defects for PTA and MEG purchased from our suppliers. Our quality control procedures require inspections by our quality control team at various stages of our different production processes and on our finished products to ensure that our finished products conform to the relevant requirements. In particular, our quality control team inspects the appearance and color of our polyester filament yarns and conducts tests on the chemical compositions and physical properties of our polyester filament yarns at various stages throughout the production process.

We had a team for quality control , including chemical laboratory technicians, physics laboratory technicians,  quality inspectors of accessory materials,  color matching inspectors and  appearance inspectors. In addition, we conduct regular training sessions and administer regular assessments for our quality control team in order for them to stay current in their testing knowledge and skills. We purchase various advanced testing machines, such as heated stretch devices, Uster stretch testers, Uster evenness testers, spin finish analyzers and various other testing devices, many of which were imported from Switzerland, United States, Germany and Japan. These testing devices allow our quality control team to test the chemical compositions and physical properties of our polyester filament yarns, and to detect any defects in our polyester filament yarns. We configure and maintain our testing equipment and instruments regularly to ensure the accuracy of our quality testing.

We believe that our research and development efforts are crucial to our competitiveness and market share. We focus our research and development efforts on the development of new differentiated polyester filament yarns and on production process improvements. With the expansion of our offerings of differentiated polyester products, the reinforcement of our production process, and the acquisition of

high-technology manufacturing and testing devices, we believe we may further increase our market share by providing high-quality and high technology products to our customers.

We are subject to certain PRC laws on occupational health and safety, including the Work Safety Law of the PRC. Our managers in the production departments oversee our compliance with relevant laws, conduct regular safety performance reviews, identify safety risks, implement accident prevention measures and ensure our compliance with safety performance requirements.