I. Quality Requirements and Conditions for Quality Responsibility

　　A deduction system will be implemented for products that exceed the specified quality standards. The supplier will be paid according to a reduced price for products exceeding the specified quality indicators. Specific methods are as follows:

1. Puyang Coal

　　(1) When the lower calorific value of the application base is between 4000 kcal and 4200 kcal, discounted acquisition will be implemented. The settlement price for this batch of products will be calculated as: Contract price + 4200 x Measured calorific value x 0.97; When the lower calorific value of the application base is between 3800 kcal and 4000 kcal, the buyer has the right to refuse acceptance and return or exchange the goods. The seller shall bear all costs for return or exchange. If the buyer agrees to accept, the settlement price will be calculated as: Contract price + 4200 x Measured calorific value x 0.87.

　　(2) When the total moisture content of the received base is between 22% and 24%, discounted acquisition will be implemented. The calculation method for the price reduction is: For the total moisture content exceeding the quality standard, the price reduction amount = Contract price x (Total moisture content test value - Total moisture content standard value). When the total moisture content of the coal entering the factory is >2, the buyer has the right to refuse acceptance and return or exchange the goods. If the goods have already been accepted, a price reduction will be implemented. The price reduction amount = Contract price x (Total moisture content test value - Total moisture content standard value) x 2.

　　(3) When the total sulfur content of the received base is >0.9%, the principle is to return or exchange the goods. If the goods have already been unloaded, a price reduction will be implemented. The calculation method for the price reduction is: For every 0.1% (or part thereof) of total sulfur exceeding the standard in the dry base, 3 yuan/ton will be deducted. When the total sulfur content in the dry base is >1.1%, the buyer has the right to refuse acceptance and return the goods. If the goods have already been accepted, a price reduction will be implemented. For the part exceeding 1.1%, the calculation method for the price reduction is: For every 0.1% (or part thereof) of total sulfur exceeding the standard in the dry base, 6 yuan/ton will be deducted.

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

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

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

2. Luliang Coal

　　(1) When the lower calorific value of the application base is between 3600 kcal and 3800 kcal, discounted acquisition will be implemented. The settlement price for this batch of products will be calculated as: Contract price + 3800 x Measured calorific value x 0.97; When the lower calorific value of the application base is <3600 kcal, the buyer will refuse acceptance. If the buyer agrees to accept, the settlement price will be calculated as: Contract price + 3800 x Measured calorific value x 0.87.

　　(2) When the total moisture content is between 28% and 30%, discounted acquisition will be implemented. The calculation method for the price reduction is: For each percentage point of total moisture content exceeding the standard, the price reduction amount = Contract price x (Total moisture content test value - Total moisture content standard value). When the total moisture content of the coal entering the factory is >30%, the buyer has the right to refuse acceptance and return or exchange the goods. If the goods have already been accepted, a price reduction will be implemented, the price reduction amount = Contract price x (Total moisture content test value - Total moisture content standard value) x 2.

　　(3) When the total sulfur content of the received base is >0.5%, the principle is to return or exchange the goods. If the goods have already been unloaded, a price reduction will be implemented. The calculation method for the price reduction is: For every 0.1% (or part thereof) of total sulfur exceeding the standard in the dry base, 3 yuan/ton will be deducted. When the total sulfur content in the dry base is >0.7%, the buyer has the right to refuse acceptance and return the goods. If the goods have already been accepted, a price reduction will be implemented. For the part exceeding 0.7%, the calculation method for the price reduction is: For every 0.1% (or part thereof) of total sulfur exceeding the standard in the dry base, 6 yuan/ton will be deducted.

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

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

　　(6) When the ash content is >12%, 5 yuan/ton will be deducted from the price of this batch of products.

II. Quotation and Payment Settlement

　　1. The validity period of the quotation for this tender is from October 26, 2021 to November 30, 2021. The price shall not be adjusted or changed during the validity period. Bidding units 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 shall be responsible for transporting the goods to the buyer's factory yard and for unloading. The unloading fee shall be borne by the supplier.

　　3. The settlement method for this tender is as follows: The buyer will settle accounts based on the quantity and quality of goods delivered by the supplier. The supplier shall issue a VAT special invoice (including 13% VAT special invoice) to the buyer according to the settled amount. The buyer shall pay the supplier within 30 days of receiving the invoice.

III. Bid Opening and Evaluation

　　1. Bid opening time: November 1, 2021.

　　2. Evaluation method: Internal bidding by the tenderer within 2 days from the closing of the bid.

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

IV. Signing of Contract Agreement

　　1. After receiving the Notice of Winning the Bid issued by the tenderer, the winning bidder shall sign the contract agreement at the time and place specified by the tenderer.

　　2. If the winning bidder fails to sign the contract agreement as stipulated, the tenderer will cancel the winning bid qualification. In this case, the tenderer has the right to sequentially select the second winning bidder or the reserve winning bidder.