HRB 2006 Raw Material Purchasement Conference

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Jan 19,2006

Morning Jan.12 2006, Harbin Bearing Group Corp.(HRB) had convened their "2006 Raw Material Purchasement Conference". During the course, Mr.Qin feng, manager of Supervisory Dept., summarized last years material purchasement work and set a 2006 target for that work. The focus of this conference is the 2006 target on purchasement, which can be generalized as transparent and cost effective purchasement. To hit the target, the company announced their detailed measures as following: 1. Building up sound Pubulic Bidding System and encouraging the application of public bidding in all forms of purchasement; 2. Granting more power to the company supervisory panel, so that they can keep an eye on every detail in the procedure of purchasement. Costly purchasement can't be fulfilled until being confirmed by supervisory panel; 3. Supervisory panel will organize spot-check of the raw material inventory every quarter, so as to avoid over-purchasing and nonsense purchasing; 4. Regularly collecting feedback from both suppliers and end-users, so as to purchase cost effective raw material and provide end-users with satisfactory products; 5. Disposing of the obsolete equipments and other tangible assets by auction, so as to minimize the equipments upgrading cost.

(cbcc)

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