I. Quality Requirements and Conditions for Quality Responsibility

　　The product quality implements an over-standard deduction system. If the quality of the products provided by the supplier exceeds the indicator requirements, settlement will be made by deducting the unit price. The specific method is as follows:

1. Puyang Coal

　　(1) When the lower heating value on an as-received basis is between 4000 kcal and less than 4200 kcal, discounted purchase is applied. The settlement price for this batch of products = contract unit price + 4200 × measured calorific value × 0.97; when the lower heating value on an as-received basis is between 3800 kcal and less than 4000 kcal, the buyer has the right to refuse acceptance and storage, and return or exchange will be handled. The seller bears all costs of return or exchange. If the buyer agrees to accept, settlement is based on the price = contract unit price + 4200 × measured calorific value × 0.87.

　　(2) When the total moisture on an as-received basis is greater than 22% and less than or equal to 24%, discounted purchase is applied. The discount calculation method is: for total moisture exceeding the quality standard, the discount amount = contract unit price × (measured total moisture - total moisture standard). When the total moisture of incoming coal exceeds 24%, the buyer has the right to refuse acceptance and storage and handle return or exchange. If already stored, discounted treatment applies, with discount amount = contract price × (measured total moisture - total moisture standard) × 2.

　　(3) When the total sulfur on an as-received basis exceeds 0.9%, return or exchange is generally applied. If unloading has been completed, discounted treatment applies. The discount calculation method is: for every 0.1% (or part thereof) exceeding the dry basis total sulfur standard, deduct 3 yuan/ton. When dry basis total sulfur content exceeds 1.1%, the buyer has the right to refuse acceptance and return the goods. If already stored, discounted treatment applies. For the part exceeding 1.1%, the discount calculation method is: for every 0.1% (or part thereof) exceeding the dry basis total sulfur standard, deduct 6 yuan/ton.

　　(4) When volatile matter is between 28% and less than 30%, this batch of products will be deducted 5 yuan/ton.

　　(5) When fixed carbon is between 28% and less than 30%, this batch of products will be deducted 5 yuan/ton.

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

2. Luliang Coal

　　(1) When the lower heating value on an as-received basis is between 3600 kcal and less than 3800 kcal, discounted purchase is applied. The settlement price for this batch of products = contract unit price + 3800 × measured calorific value × 0.97; when the lower heating value on an as-received basis is less than 3600 kcal, the buyer refuses acceptance and storage. If the buyer agrees to accept, settlement is based on the price = contract unit price + 3800 × measured calorific value × 0.87.

　　(2) When total moisture is greater than 28% and less than or equal to 30%, discounted purchase is applied. The discount calculation method is: for each amount exceeding the total moisture standard, the discount amount = contract unit price × (measured total moisture - total moisture standard). When the total moisture of incoming coal exceeds 30%, the buyer has the right to refuse acceptance and storage and handle return or exchange. If already stored, discounted treatment applies, with discount amount = contract unit price × (measured total moisture - total moisture standard) × 2.

　　(3) When total sulfur on an as-received basis exceeds 0.5%, return or exchange is generally applied. If unloading has been completed, discounted treatment applies. The discount calculation method is: for every 0.1% (or part thereof) exceeding the dry basis total sulfur standard, deduct 3 yuan/ton. When dry basis total sulfur content exceeds 0.7%, the buyer has the right to refuse acceptance and return the goods. If already stored, discounted treatment applies. For the part exceeding 0.7%, the discount calculation method is: for every 0.1% (or part thereof) exceeding the dry basis total sulfur standard, deduct 6 yuan/ton.

　　(4) When volatile matter is between 28% and less than 30%, this batch of products will be deducted 5 yuan/ton.

　　(5) When fixed carbon is between 28% and less than 30%, this batch of products will be deducted 5 yuan/ton.

　　(6) When ash content exceeds 12%, this batch of products will be deducted 5 yuan/ton.

II. Quotation and Payment Settlement

　　1. The validity period of this bidding quotation is from October 26, 2021, to November 30, 2021. Prices shall not be adjusted or changed during the validity period. Bidders should fully consider market risks.

　　2. From October 26, 2021, to November 30, 2021, delivery shall 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 unloading. The unloading fee shall be borne by the supplier.

　　3. The settlement method for this bidding procurement: the buyer settles based on the quantity and quality of goods delivered by the supplier. The supplier issues a special VAT invoice (including 13% VAT) to the buyer based on the settled amount. The buyer shall pay the supplier within 30 days after receiving the invoice.

III. Bid Opening and Evaluation

　　1. Bid opening time: November 1, 2021.

　　2. Bid evaluation method: internal negotiation by the tenderer within 2 days after the bid deadline.

　　3. Winning notification: within the validity period of the bid, the tenderer will notify the winning bidder in writing (winning notification). The notification is an effective part of the contract.

IV. Signing of Contract Agreement

　　1. After receiving the winning notification issued by the tenderer, the winning bidder shall sign the contract agreement at the time and place designated by the tenderer.

　　2. If the winning bidder fails to 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 select the second winning bidder or an alternative winning bidder in order.