Raw coal (Puyang coal, Luliang coal)

1. Quality requirements and conditions for quality responsibility

The product quality implements a penalty deduction system for exceeding standards. If the product quality provided by the supplier exceeds the specified requirements, settlement will be made by deducting from the unit price. The specific methods are as follows:

1. Puyang coal

(1) When 4000 kcal ≤ applied base low calorific value < 4200 kcal, a discounted purchase will be executed. The settlement price for this batch of products = contract unit price + 4200 X measured calorific value X 0.97; when 3800 kcal ≤ applied base low calorific value < 4000 kcal, the buyer has the right to refuse acceptance into storage and handle returns or exchanges. If the buyer agrees to accept, the settlement price = contract unit price + 4200 X measured calorific value X 0.87.

(2) When 22% < received total moisture ≤ 24%, a price reduction will be executed. The price reduction calculation method is: received total moisture exceeding the quality standard, reduction amount = contract unit price X (total moisture detection value - total moisture standard value). When the total moisture of incoming coal > 30%, the buyer has the right to refuse acceptance into storage and handle returns or exchanges. If already in storage, a price reduction will be executed, with the reduction amount = contract price X (total moisture detection value - total moisture standard value) X 2.

(3) When received total sulfur > 0.9%, returns or exchanges will be executed in principle. If already unloaded, a price reduction will be executed, with the calculation method: for every standard exceeded by dry basis total sulfur of 0.1% (if the exceeded part is less than 0.1%, it will still be counted as 0.1%), deduct 3 yuan/ton. When dry basis total sulfur content > 1.1%, the buyer has the right to refuse acceptance into storage and return goods. If already in storage, a price reduction will be executed, with the calculation method for the portion exceeding 1.1%: for every standard exceeded by dry basis total sulfur of 0.1% (if the exceeded part is less than 0.1%, it will still be counted as 0.1%), deduct 6 yuan/ton.

(4) When 28% ≤ volatile matter < 30%, this batch of products will be deducted by 5 yuan/ton.

(5) When 28% ≤ fixed carbon < 30%, this batch of products will be deducted by 5 yuan/ton.

(6) When ash content > 10%, this batch of products will be deducted by 5 yuan/ton.

2. Luliang coal

(1) When 3600 kcal ≤ applied base low calorific value < 3800 kcal, a discounted purchase will be executed. The settlement price for this batch of products = contract unit price + 3800 X measured calorific value X 0.97; when applied base low calorific value < 3600 kcal, the buyer refuses acceptance into storage. If the buyer agrees to accept, then settlement price = contract unit price + 3800 X measured calorific value X 0.87.

(2) When 28% < total moisture ≤ 30%, a price reduction will be executed. The price reduction calculation method is: received total moisture exceeding the standard amount, reduction amount = contract unit price X (total moisture detection value - total moisture standard value). When incoming coal total moisture >30%, the buyer has the right to refuse acceptance into storage and handle returns or exchanges. If already in storage, a price reduction will be executed, with the reduction amount = contract unit price (total moisture detection value - total moisture standard value) X2.

(3) When received total sulfur >0.5%, returns or exchanges will be executed in principle. If already unloaded, a price reduction will be executed, with calculation method: for every standard exceeded by dry basis total sulfur of 0.1% (if the exceeded part is less than 0.1%, it will still be counted as 0.1%), deduct 3 yuan/ton. When dry basis total sulfur content >0.7%, the buyer has the right to refuse acceptance into storage and return goods; if already in storage, a price reduction will be executed for the portion exceeding 0.7% with calculation method: for every standard exceeded by dry basis total sulfur of 0.1% (if the exceeded part is less than 0.1%, it will still be counted as 0.1%), deducts6 yuan/ton.

(4) When28%≤volatile matter<30%, this batch of products will be deducted by5 yuan/ton.

(5) When28%≤fixed carbon<30%, this batch of products will be deducted by5 yuan/ton.

(6) When ash content>12%, this batch of products will be deducted by5 yuan/ton.

2. Quotation and payment settlement

1. The validity period for this bidding quotation is from October26,2021 to November30,2021; during this validity period, prices cannot be adjusted or changed; bidding units should fully consider market risks.

2. From October26,2021 to November30,2021, delivery shall be made according to the delivery notice issued by the buyer; suppliers are responsible for transporting goods to our company's factory yard and unloading; unloading costs shall be borne by suppliers.

3. The settlement method for this tender procurement: The buyer settles based on the quantity and quality delivered by the supplier; suppliers shall issue a special VAT invoice (including a tax-inclusive special VAT invoice at13%) based on the settled amount to the buyer; payment shall be made within30 days from the date when the buyer receives that invoice.

3.Opening and evaluation

1.Opening time: November1,2021.

2.Evaluation method: Internal bidding discussion within two days from the bid submission deadline.

3.Bid notification: Within the validity period of bids, the bidder shall notify in writing to successful bidders (bid notification letter). This notification letter is an effective part of the contract.

4.Signing of contract agreement

1.After receiving the bid notification letter issued by the bidder, successful bidders shall sign a contract agreement at a time and place designated by the bidder.

2.If successful bidders cannot sign a contract agreement as required due to their own reasons, bidders shall cancel their qualification as successful bidders; in such cases, bidders have the right to sequentially select second successful bidders or alternative successful bidders.