Raw coal (Puyang coal, Luliang coal)

I. Quality Requirements and Conditions for Assuming Responsibility for Quality

　　A penalty-for-exceedance pricing system shall be implemented for product quality: if the quality of products supplied by the supplier exceeds the specified performance indicators, settlement shall be made by deducting the unit price accordingly, as follows:

1. Puyang Coal

　　(1) When the net calorific value on an as-delivered basis is ≥4,000 kcal but <4,200 kcal, a discounted purchase shall be implemented, with the settlement price for that batch calculated as: Contract Unit Price + 4,200 × Actual Measured Calorific Value × 0.97. When the net calorific value on an as-delivered basis is ≥3,800 kcal but <4,000 kcal, the Buyer shall have the right to refuse acceptance and warehousing, and such goods shall be returned or exchanged, with all associated return and exchange costs borne by the Seller. If the Buyer agrees to accept the goods, the settlement price shall be calculated as: Contract Unit Price + 4,200 × Actual Measured Calorific Value × 0.87.

　　(2) When the received-basis total moisture content is greater than 22% but not more than 24%, a price reduction shall be applied upon purchase, calculated as follows: if the received-basis total moisture content exceeds the quality standard, the price reduction amount shall be equal to the contract unit price multiplied by the difference between the measured total moisture content and the standard total moisture content. If the total moisture content of coal delivered to the plant exceeds 2%, the buyer shall have the right to refuse acceptance and return or exchange the goods; if the goods have already been accepted and entered the warehouse, a price reduction shall be applied, with the reduction amount calculated as the contract price multiplied by the difference between the measured total moisture content and the standard total moisture content, multiplied by 2.

　　(3) In principle, upon receipt of coal with total sulfur content exceeding 0.9%, return or exchange shall be processed; if the coal has already been unloaded, a price reduction shall be applied, calculated as follows: for every 0.1 percentage point by which the dry-basis total sulfur content exceeds the standard (with any fraction less than 0.1 percentage point rounded up to 0.1), the price shall be reduced by RMB 3 per tonne. When the dry-basis total sulfur content exceeds 1.1%, the buyer shall have the right to refuse acceptance and return the shipment; if the shipment has already been received into storage, a price reduction shall be applied, calculated as follows: for every 0.1 percentage point by which the dry-basis total sulfur content exceeds the standard (with any fraction less than 0.1 percentage point rounded up to 0.1), the price shall be reduced by RMB 6 per tonne.

　　(4) When the volatile matter content is ≥28% and <30%, the batch of products shall be deducted by RMB 5 per ton.

　　(5) When the fixed carbon content is ≥28% and <30%, the batch of products shall be deducted by RMB 5 per ton.

　　(6) When the ash content exceeds 10%, the batch shall be subject to a deduction of RMB 5 per ton.

2. Luliang Coal

　　(1) When the net calorific value on an as-delivered basis is ≥3,600 kcal but <3,800 kcal, a discounted purchase shall be implemented, and the settlement price for this batch of products shall be: Contract Unit Price + 3,800 × Measured Calorific Value × 0.97. When the net calorific value on an as-delivered basis is <3,600 kcal, the buyer shall refuse to accept the goods into storage; however, if the buyer agrees to accept them, the settlement price shall be: Contract Unit Price + 3,800 × Measured Calorific Value × 0.87.

　　(2) When the total moisture content is greater than 28% but not more than 30%, a price reduction shall be applied in accordance with the following calculation: for each percentage point by which the measured total moisture exceeds the standard, the price reduction shall be equal to the contract unit price multiplied by the difference between the measured total moisture and the standard total moisture. If the total moisture of the coal delivered to the plant exceeds 30%, the buyer shall have the right to refuse acceptance and return the goods for replacement; if the goods have already been accepted and stored, a price reduction shall be applied, with the reduction amount calculated as twice the product of the contract unit price, the difference between the measured total moisture and the standard total moisture, and 2.

　　(3) In principle, upon receipt of a total sulfur content exceeding 0.5% on a dry basis, the goods shall be returned or exchanged; if the goods have already been unloaded, a price reduction shall be applied, calculated as follows: for every 0.1 percentage point by which the dry-basis total sulfur content exceeds the standard (with any fraction less than 0.1 percentage point rounded up to 0.1), the price shall be reduced by RMB 3 per ton. When the dry-basis total sulfur content exceeds 0.7%, the buyer shall have the right to refuse acceptance and return the goods; if the goods have already been received into storage, a price reduction shall be applied, calculated as follows: for every 0.1 percentage point by which the dry-basis total sulfur content exceeds the standard (with any fraction less than 0.1 percentage point rounded up to 0.1), the price shall be reduced by RMB 6 per ton.

　　(4) When the volatile matter content is ≥28% and <30%, a deduction of RMB 5 per ton shall be applied to this batch of products.

　　(5) When fixed carbon is ≥28% and <30%, the batch of products shall be deducted by RMB 5 per ton.

　　(6) When the ash content exceeds 12%, the batch of products shall be deducted at RMB 5 per ton.

II. Quotation and Payment Settlement

　　1. The validity period for bid quotations in this tender is from October 26, 2021, to November 30, 2021. During this period, prices shall not be adjusted or changed, and bidders shall fully take into account market risks.

　　2. From October 26, 2021, to November 30, 2021, delivery shall be made in accordance with the Buyer’s delivery notice. The Supplier shall be responsible for transporting the goods to the Company’s factory yard and for unloading them, with the unloading costs borne by the Supplier.

　　3. Settlement method for this tender procurement: The Buyer shall settle the payment based on the quantity and quality of goods delivered by the Supplier. The Supplier shall issue a special value-added tax invoice (including 13% VAT) to the Buyer in accordance with the settled amount, and the Buyer shall make payment to the Supplier within 30 days from the date of receipt of such invoice.

III. Bid Opening and Evaluation

　　1. Bid opening time: November 1, 2021.

　　2. Bid Evaluation Method: Within two days from the bid submission deadline, the tenderer shall conduct an internal bid evaluation.

　　3. Notice of Award: Within the validity period of the tender, the procuring entity shall notify the successful bidder in writing (Notice of Award). The Notice of Award shall constitute an integral part of the contract.

IV. Execution of the Contract Agreement

　　1. Upon receipt of the Notice of Award issued by the Employer, the Successful Bidder shall sign the Contract Agreement at the time and place specified by the Employer.

　　2. If the successful bidder fails to sign the contract agreement as required due to its own reasons, the tendering entity shall revoke the bidder’s qualification as the successful bidder. In such a case, the tendering entity shall be entitled to select, in order of ranking, the second-ranked successful bidder or an alternate successful bidder.