Raw Coal (Puyang Coal, Luliang Coal)

I. Quality Requirements and Conditions for Assuming Responsibility for Quality

　　Product quality is subject to an over-standard deduction system. If the product quality provided by the supplier exceeds the specified requirements, the settlement will be conducted by deducting from the unit price according to the following detailed procedures:

1. Puyang Coal

　　(1) When the applied basis lower heating value is ≥ 4,000 kcal but < 4,200 kcal, a discounted purchase shall be implemented. In this case, the settlement price for the batch of products = Contract Unit Price + 4,200 × Measured Calorific Value × 0.97. When the applied basis lower heating value is ≥ 3,800 kcal but < 4,000 kcal, the Buyer reserves the right to refuse acceptance and storage of the goods, opting instead for return or exchange. All costs associated with returns or exchanges shall be borne by the Seller. However, if the Buyer agrees to accept the goods, the settlement price shall be calculated as: Contract Unit Price + 4,200 × Measured Calorific Value × 0.87.

　　(2) When the received basis total moisture content is between 22% and 24%, a price reduction will be applied. The calculation method for the price reduction is as follows: Price Reduction Amount = Contract Unit Price × (Total Moisture Content Measured - Total Moisture Content Standard). If the total moisture content of coal delivered to the plant exceeds 2%, the Buyer reserves the right to refuse acceptance into storage and may request return or replacement of the goods. If the coal has already been accepted into storage, a price reduction will be implemented instead, calculated as: Price Reduction Amount = Contract Price × (Total Moisture Content Measured - Total Moisture Content Standard) × 2.

　　(3) Upon receiving a total sulfur content exceeding 0.9%, return or exchange of goods shall be executed in principle. If the shipment has already been unloaded, a price reduction will apply instead. The calculation for the price reduction is as follows: for every 0.1% increase in total sulfur content above the standard (with any fraction less than 0.1% rounded up to 0.1%), a deduction of RMB 3 per ton will be applied. However, if the total sulfur content exceeds 1.1% on a dry basis, the buyer reserves the right to refuse acceptance and return the goods. In cases where the goods have already been received into the warehouse, a price reduction will be implemented. For the portion exceeding 1.1%, the price reduction will be calculated as follows: for every 0.1% increase in total sulfur content above the standard (with any fraction less than 0.1% rounded up to 0.1%), a deduction of RMB 6 per ton will be applied.

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

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

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

2. Lu Liang Coal

　　(1) When the applied basis lower heating value is ≥ 3,600 kcal but < 3,800 kcal, a discounted purchase shall be implemented. In this case, the settlement price for the batch of products will be calculated as: Contract Unit Price + [3,800 × Measured Calorific Value × 0.97]. If the applied basis lower heating value is < 3,600 kcal, the buyer shall refuse to accept the goods into the warehouse. However, if the buyer agrees to receive the goods, the settlement price will be determined as: Contract Unit Price + [3,800 × Measured Calorific Value × 0.87].

　　(2) When the total moisture content exceeds 28% but is ≤30%, a price reduction will be applied. The calculation method for the price reduction is as follows: for each percentage point of total moisture content above the standard, the price reduction amount equals the contract unit price multiplied by the difference between the actual total moisture content and the standard value. If the total moisture content of coal delivered to the plant exceeds 30%, the buyer reserves the right to refuse acceptance and storage, opting instead for return or replacement. If the coal has already been stored, a price reduction will be applied, calculated as follows: the price reduction amount equals the contract unit price multiplied by twice the difference between the actual total moisture content and the standard value.

　　(3) Upon receiving coal with total sulfur content exceeding 0.5%, return or exchange shall be executed in principle. If the coal has already been unloaded, a price reduction will apply, calculated as follows: for every 0.1% increase in total sulfur content above the standard (with any fraction of 0.1% rounded up to 0.1%), a deduction of RMB 3 per ton will be applied. If the total sulfur content exceeds 0.7% on a dry basis, the buyer reserves the right to refuse acceptance and return the goods. Should the coal have already been delivered into storage, a price reduction will be implemented, with the calculation method as follows: for every 0.1% increase in total sulfur content above the standard (with any fraction of 0.1% rounded up to 0.1%), a deduction of RMB 6 per ton will be applied.

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

　　(5) When fixed carbon content is between 28% and 30%, the batch of products will be deducted by 5 yuan per ton.

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

II. Quotation and Payment Settlement

　　1. The validity period of this bidding quotation is from October 26, 2021, to November 30, 2021. During this period, the quoted price shall remain unchanged; bidders are advised to carefully consider market risks.

　　2. From October 26, 2021, until November 30, 2021, deliveries shall be made according to the delivery notice issued by the Buyer. The Supplier shall be responsible for transporting the goods to the company’s factory yard and unloading them at the site, with the unloading costs borne by the Supplier.

　　3. The payment method for this procurement tender: The buyer shall settle the payment based on the quantity and quality of goods delivered by the supplier. Upon settlement, the supplier shall issue a special VAT invoice to the buyer (including a 13% VAT special invoice). The buyer shall remit payment to the supplier within 30 days from the date of receiving the invoice.

III. Bid Opening and Evaluation

　　1. Bid Opening Time: November 1, 2021

　　2. Bid Evaluation Method: Internal bid evaluation will be conducted by the tenderer within 2 days from the bid submission deadline.

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

IV. Execution of the Contract Agreement

　　1. Upon receiving the Notice of Award issued by the Employer, the successful bidder shall sign the contract agreement at the time and location specified by the Employer.

　　2. If the successful bidder fails to sign the contract agreement as required due to their own reasons, the tenderer shall revoke the bid-winning qualification. In such a case, the tenderer reserves the right to sequentially select the second-ranked bidder or an alternate winning bidder.