Our products have received the following awards or certifications from relevant authorities in the PRC as set out below:-

Product	Awards	Certification authority	Date of Certification
Low energy detonating cord	State New Product Award 国家级新产品	Ministry of Science and Technology of PRC	May 1995
Low energy detonating cord	Technology Improvement First Degree Award of Science, Technology and Industry for National Defense of Shandong Province 山东省国防科技进步一等奖	Shandong Commission of Science and Technology	Aug 1996
Low energy detonating cord	Excellent New Product Award of Shandong Province 山东省优秀新产品	Shandong Economy Committee	Jul 1997
Tube charge	State New Product Award 国家级新产品	Ministry of Science and Technology of Shandong	May 1995
Tube charge	Xin Huo Plan Second Degree Award of Shandong Province 山东省星火计划二等奖	The Office of Science and Technology of Shandong	Apr 1995
Tube charge	Excellent New Product Award of Shandong Province 山东省优秀新产品	Shandong Economy Committee	Jul 1997
Booster	State Important New Product Award 国家级重点新产品	Ministry of Science and Technology of PRC	Aug 1999
Booster	Technology Improvement First Degree Award of Mechanical Industry of Shandong Province 山东省机械工业科技进步一等奖	The Department of Mechanical Industry of Shandong	Aug 2001
Double High Strength Nonel Tube	Technology Improvement Second Degree Award of the Office of China Nonferrous Metals Industry 国家有色金属工业局科技进步二等奖	The Office of China Nonferrous Metals Industry	Jul 1999
Double High Strength Nonel Tube	State Important New Product Award 国家级重点新产品	Ministry of Science and Technology of PRC	Aug 1999
Double High Strength Nonel Tube	Technology Improvement Second Degree Award of Mechanical Industry of Shandong Province 山东省机械工业科技进步二等奖	The Department of Mechanical Industry of Shandong	Aug 2001

In February 2004, we received ISO9001:2000 certification for quality management system, ISO14001:1996 certification for environmental management system and OHSAS18001:1999 certification for occupational health and safety management system issued by the China Certification Centre for Quality Marks. These certifications are testament to our quality management system, environmental management system and occupational health and safety management system. Our production facilities adopt a total quality management system in accordance with standards required under the certifications in order to maintain high quality standards relating to our production process and consistency in the quality of our products. Our boosters are also tested and certified by UTEC, an authorised inspection institute for initiating explosive devices based in the USA. Based on the results of UTEC’s tests, our Directors believe that the quality of our boosters are comparable to international brands. We are also a member of the CEMTA (China Explosive Material Trade Association)(中国民爆器材行业协会), a national trade association in the PRC that carries out research and studies, promotes and provides services to the various members in the commercial explosive material products industry.

There have been no rejections of our products by our customers or any major incidences of economic losses or human casualties attributable to our defective products for the last three financial years ended 31 March 2005 and up to the Latest Practicable Date. We have not experienced any accident in our production of explosives since we commenced operations.