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Le Welcome to ZX!

ZX Presentation. 20140110

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Le Welcome to ZX!

Content

*Factory Introduction & History

*Factory Facilities

* Product Introduction

*Certificates

*Sales Footprint

· Size of Manufacturing factories:

ZX Yuhuan Factory DP Pinghu Factory - 720 employees (inc stamping parts factory) 150 employees - factory land area: 19,980 m² - 27,300 m² - Construction area: 31,891 m²

• Capacity:

• Shocks and struts Loaded strut /Module ZX annual capacity: 4 million pcs 4 lines DP designed capacity: 2.5—3 million pcs 2 lines Total ZX & DP: 7 million pcs 600,000 pcs /1 shift

• ZX and DP Engineering Ability: - 80 employees in Engineering Dept. - 700 Annual New part numbers developed per customers’ demand. - Full PPAP process for new development parts. - Products and parts Standardization system; standardized valve system

· ZX and DP Quality Department: QC & QA, 60 employees 6 in Lab, 11 for Incoming Inspection 22 Inspectors in Process control 12 for final product inspection 9 in management inc. Supplier Audit &improvement

• System Management Department: Project Team for Continuous improvement : TPS, Lean production, ERP, Training

program, PLM etc..

Sales & Customers:

- Export to over 35 countries

- Major markets with Percentage to total export sales in 20131. .Latin America 26.73%2. Europe 26.49%3. North America 19.5%4. Australia 16.2%5. South East Asia 7.08%6. Africa 2.61%7. Middle East 1.38%

……

- 2013 Sales: 42 million USD

Export: 23 million USD Domestic A.M. 15 million USD Domestic O.E. 4 million USD

■ TS16949:2009 certified by DQS Germany

■ ISO14001:2004 certified

■ 6000 part numbers of shock absorbers covering worldwide major car models in 2012

■ 650 part numbers of suspension coil spring ■ Products applied to passenger cars, SUV/4WD,performance cars, commercial vehicles and specialties as Golf Cart, etc.

■ 60,000 km / 1-2 years product warranty

IntroductionRestore Your New Car Ride…

ZX HISTORY

• 1988 ZX shock absorber factory established

• 2000 ISO9001:2000 certified

• 2003 Start Independent export business

• 2004 Build up a pressing parts factory of design tooling and manufacture spring seat ,clevis and bracket for shock abs.

• 2004 Start Overseas OEM business for some Korean and Japanese cars

• 2005- Carry out TPS mode of manufacturing management, lean production

• 2006 Honored as Name Brand in China local market 2007 ISO/TS 16949:2002 Certified by DQS Germany 2008 Obtain two technology patents: Patent No:ZL2007 2 0110311.9 Improved Structure shock absorber Patent No:ZL2007 2 0110294.9 Damping force adjustment structure for adjustable shock absorber And another 5 patents in the year of 2009; 2010 honored by government as China High & New Technology enterprise 2011 ISO/TS 16949:2009 Certified by DQS Germany 2012 ISO 14001:2004 Environment Management System 2013 New factory DP started production TPS project implemented in production line design and workers training. 2013 Technology centre established

FACTORY FACILITIES

R&D Lab

Durability Test Prototype Assembly &Testing

INOVA (Germany) shock Abs.Performance Test Machine 3Inova machines for shock absorber testing &1 for top rubber mounting testing

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2012 NEW TESTING FACILITIES

- INOVA (Germany) Shock Abs Test Machine (4 machines)

Inova machine can imitate road comprehensive traffic for testing the performance of shocks in working condition, and offer the test reports of force value, oil leakage, friction force and so on for analysis.

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2012 NEW TESTING FACILITIES

- INOVA (Germany) Machine for Top Mounting& Rubber bush Performance Test

2012 NEW PRODUCTION FACILITIES

-- Welding Robot

Same welding machines used for Prototype workshop and mass production lines.

FACTORY FACILITIES

Physical & Chemical Lab

Raw Material Chemical Composition Analysis

Raw material micro structure analyzer

Shock absorber oil viscosity analysis

Salt Spray Test projector material roughness tester

FACTORY FACILITIES

Physical & Chemical Lab

Three-dimensional Scanner

High-Low Temperature Test

Coil spring load test

Ozone Rubber Fatigue Test Welding strength Destruction Test Video Measuring

FACTORY FACILITIES

Coil Spring Physical & Chemical Lab

Hardness Test Durability Test Coil Spring Load Test

Metallographic Analysis Fluorescent Magnetic Detector Chemical Composition Analysis

COIL SPRING PRODUCTION FACILITIES

Automatic Spring Coiling Machine Continuous Tempering Furnace Shot Peening

Hydraulic Pressing Machine Automatic Powder Spraying Line Load Sorting

1) Every batch Incoming parts to be inspected from Raw material to every single part randomly.

2) Process control to be carried out by Quality dept. through first pieces inspection, random inspection every hour and last piece inspection; meanwhile, operators have to do self-inspection and double checked by the next process. Final products to be inspected randomly before going to the stock. Every order should be again checked by Quality dept. before delivery.

3) Xbar-R Control Chart on critical process.

4) Poka-yoke method( Error & Mistake Proofing) carried out in process like welding ,performance testing and assembly workshop,.

5) 100% control in process of welding leaking testing, performance testing and final product visual check.

Quality Control & Policy

PRODUCT INTRODUCTION

ADJUSTABLE SHOCKS AND STRUTS Selectable damping to suit the load, and your ride preferences. Highly effective Unlimited adjustment from soft to firm. Retrofitable. Robust. Remote Ready. ZX patent internal valving design

ELECTRONIC REMOTE CONTROL“On the fly”ride control adjustmentEasy installation on hyrad shocks and strutsNine steps of adjustment from soft to firmFront and rear are adjustment independentlyMemory stores ten pairs of settings for quick recaSystem monitors and maintaingsettingsError detection and reporting

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MONO-TUBE GAS-FILLED SHOCK ABSORBER

hard-chromed piston rod ----less friction,longer life

Single-lip oil seal---high pressure resistant

Du bush---less friction

Rebound-compression mono valve ass.---Sensitive response to forces in either direction

Floating piston---separate gas and oil completely

O-ring---fluorin rubber for less friction & high-temp.resistant

Pressurized n2 chamber

PRODUCT INTRODUCTION

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STEERING DAMPER

Optimum designed structure for horizontal

operating.

High endurance performance,even

under tough conditions assured by common

engineering concept with suspension shock

absorbers

PRODUCT INTRODUCTION

TWIN TUBE SHOCKS

All weather designed shock absorber oil remains nearly constant viscosity Oil is kept in and dirt out by a multi-lip seal, self-lubricant to prolong life time Less friction and longer life is the result of hard chromed, super finished piston rod Sintered rod guide to extend life of shocks Seamless cylinder to reduce possibility of splitting Sintered piston to add strength Wear resistant Teflon piston ring to reduce friction and leakage 3-stage compression valve to assure fast recovery 3-stage rebound valve to generate different damping upon different travel Bore sizes from16mm to 50mm

PRODUCT INTRODUCTION

Improved internal Design---No CAVITATION in hydraulic shocks!

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Lower Cost

Better Function

Higher Safety

STRUT MODULE FOR OEM & AFTER MARKET

PRODUCT INTRODUCTION

PRODUCT INTRODUCTION

shocks with spring seat

SUV/4WD Applications;Mini φ35mm bore size Double linear or 360 degree welding on end mounts

STRONG FOR OFF-ROAD PERFORMANCE!

Rebound cushion to prolong life Superior rod finish increased oil seal durability Multi-stage valving for precision control Pressurized N2 gas reduces foaming and aeration dramatically for better performance Patent sealing design to dramatically reduce possibility of oil leakage

PRODUCT INTRODUCTION

REPLACEMENT CARTRIDGE

STRUTS

PRODUCT INTRODUCTION

Rebound cushion to prolong life Superior rod finish increased oil seal durability Multi-stage valving for precision control Pressurized N2 gas reduces foaming and aeration dramatically for better performance Patent sealing design to dramatically reduce possibility of oil leakage

Piston Rod has to pass bending test in every batch!

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PRODUCT INTRODUCTION

Light-weighted design

■ Hollow Piston Rod ■ Aluminum Tube

ADJUSTABLE SUSPENSION SHOCK ABSORBER FOR PERFORMANCE CAR

The adjustable suspension shock absorber can

not only be individually adjusted to suit a wide variety

of different driving conditions, but also the adjusted

height can be changed again at any time.

PRODUCT INTRODUCTION

CERTIFICATES

TS 16949 : 2009 Certified by DQS Germany

ISO 14001:2004 Environment Management System

Patent No: ZL2007 2 0103111.9 Improved Structure shock absorber

Patent No: ZL2007 2 0110294.9 Damping force adjustment structure for adjustable shocks

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SALES FOOTPRINT

Competitive prices, fast delivery & honest service with technical support to our client in over 35 countries.

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Improved production design in DP Factory

ZX DP

Tube welding

lines

Traditional production

line modeLean production; U lines

Warehouse

Materials centralized

storage,material incoming

distance is long

Material warehouse inside each

main workshop, to improve

material preparation efficiency.

coatingTraditional painting,salt

spray 150hrs

Autophoretic line available.

Salt spray 450 hrs.

Damping test

machine in

production

lines

Mechanical transmission

typeServo

Valving

Assembly lines

Traditional manual

assemblyWith error-proof

Technology Center Introduction

Zhejiang Zhongxing Shock Absorber Manufacturing Co. and Zhejiang Depeng Machinery Co., Ltd. are professional R & D and manufacture of automotive shock absorbers medium-sized enterprises. The company's technology center as the group's R & D institutions, carrying the responsibility of creating and developing business. Founded over 25 years,coagulating several generations of shock absorber R & D personne's wisdom and emotional. And now she has become the largest trade of shock absorber product research, development, testing and inspection center in china.

Technology center is responsible fordeveloping all shock absorber, modular and related parts to achieve the important task of promoting the development of products basing on technology innovation and development. Set up four departments: design department, technology department, trial production department and engineer department, which own two tooling workshop, one prototype workshop, one performance test laboratory and one durability test laboratory.

. Covering product development, testing, technology and engineering complete organizational system.Product development using CAD, PRO / E software. Technology center own two engineers who have more than 30 years of professional shock absorbers and eight engineers who have more than ten years experience. All the engineering staff more than 80. Development and management basing on the advanced management system PDM and ERP systems, effective control of various development nodes. Technology center developed more than 6000 kinds of the world's currently mainstream models, and is growing at an annual rate of 600 kinds of supplement and update. Company own more than 20 national invention and utility model patents.