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 quality of the products provided by the supplier exceeds the specified requirements, the 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. The seller bears all costs for returns and 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 moisture content ≤ 24%, a discounted purchase will be executed. The discount calculation method is: received moisture content exceeding the quality standard, discount amount = contract unit price X (moisture content detection value - moisture content standard value). When the moisture content of the coal entering the factory > 2, the buyer has the right to refuse acceptance into storage and handle returns or exchanges. If it has already been stored, a discount will be applied, with the discount amount = contract price X (moisture content detection value - moisture content standard value) X 2.

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

(4) When 28% ≤ volatile matter < 30%, a deduction of 5 yuan/ton will be applied to this batch of products.

(5) When 28% ≤ fixed carbon < 30%, a deduction of 5 yuan/ton will be applied to this batch of products.

(6) When ash content > 10%, a deduction of 5 yuan/ton will be applied to this batch of products.

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 the applied base low calorific value < 3600 kcal, the buyer will refuse acceptance into storage. If the buyer agrees to accept, the settlement price = contract unit price + 3800 X measured calorific value X 0.87.

(2) When 28% < total moisture ≤ 30%, a discounted purchase will be executed. The discount calculation method is: received total moisture exceeding the standard, discount amount = contract unit price X (moisture content detection value - moisture content standard value). When the moisture content of the coal entering the factory > 30%, the buyer has the right to refuse acceptance into storage and handle returns or exchanges. If it has already been stored, a discount will be applied, with the discount amount = contract unit price X (moisture content detection value - moisture content standard value) X 2.

(3) When received total sulfur > 0.5%, returns or exchanges will be executed in principle. If it has already been unloaded, a discount will be applied. The discount calculation method is: for every 0.1% exceeding the standard of dry basis total sulfur (if the excess is less than 0.1%, it will still be counted as 0.1%), a deduction of 3 yuan/ton will be made. When the dry basis total sulfur content > 0.7%, the buyer has the right to refuse acceptance into storage and return the goods. If it has already been stored, a discount will be applied. The discount calculation method for the portion exceeding 0.7% is: for every 0.1% exceeding the standard of dry basis total sulfur (if the excess is less than 0.1%, it will still be counted as 0.1%), a deduction of 6 yuan/ton will be made.

(4) When 28% ≤ volatile matter < 30%, a deduction of 5 yuan/ton will be applied to this batch of products.

(5) When 28% ≤ fixed carbon < 30%, a deduction of 5 yuan/ton will be applied to this batch of products.

(6) When ash content > 12%, a deduction of 5 yuan/ton will be applied to this batch of products.

2. Quotation and payment settlement

1. The validity period for this bidding quotation is from October 26, 2021, to November 30, 2021. During the validity period, the price cannot be adjusted or changed. Bidding units should fully consider market risks.

2. From October 26, 2021, to November 30, 2021, delivery will be made according to the delivery notice issued by the buyer. The supplier is responsible for transporting the goods to the company's factory yard and is responsible for unloading. The unloading fee will be borne by the supplier.

3. The settlement method for this bidding procurement: the buyer will settle based on the quantity and quality delivered by the supplier. The supplier will issue a special VAT invoice (including a 13% VAT special invoice) to the buyer based on the settled amount. The buyer will pay the supplier within 30 days from the date of receipt of the invoice.

3. Bid opening and evaluation

1. Bid opening time: November 1, 2021.

2. Evaluation method: internal bidding discussion by the tenderer within 2 days from the bid submission deadline.

3. Bid notification: within the validity period of the bid, the tenderer will notify the winning bidder in writing (bid notification letter). The notification letter is a valid part of the contract.

4. Signing of the contract agreement

1. The winning bidder shall sign the contract agreement at the time and place designated by the tenderer after receiving the bid notification letter issued by the tenderer.

2. If the winning bidder cannot sign the contract agreement as required due to their own reasons, the tenderer will cancel the winning qualification. In this case, the tenderer has the right to sequentially select the second winning bidder or an alternative winning bidder.