Raw coal (Puyang coal, Luliang coal)

I. Quality Requirements and Conditions for Assuming Responsibility for Quality

　　A penalty‑based pricing system is implemented for product quality: if the quality of the goods supplied exceeds the specified standards, settlement will be based on a deduction from the unit price. The specific procedures are as follows:

1. Puyang Coal

　　(1) When the applicable lower heating value is ≥ 4,000 kcal and < 4,200 kcal, a discounted purchase shall apply; the settlement price for this batch shall be: Contract unit price + 4,200 × measured calorific value × 0.97. When the applicable lower heating value is ≥ 3,800 kcal and < 4,000 kcal, the buyer has the right to refuse acceptance and warehousing, and shall arrange for return or exchange; the seller shall bear all costs associated with such return or exchange. If the buyer agrees to accept, the settlement unit price shall be: Contract unit price + 4,200 × measured calorific value × 0.87.

　　(2) When the received‑basis total moisture is greater than 22% but not more than 24%, a price reduction shall be applied. The price reduction shall be calculated as follows: if the received‑basis total moisture exceeds the quality standard, the reduction amount equals the contract unit price multiplied by the difference between the measured total moisture and the standard total moisture. If the total moisture of coal delivered to the plant exceeds 2%, the buyer reserves the right to refuse acceptance and return the goods for replacement; if the goods have already been accepted, a price reduction shall be imposed, with the reduction amount equal to the contract price multiplied by the difference between the measured total moisture and the standard total moisture, and then further multiplied by 2.

　　(3) Upon receipt of a total sulfur content exceeding 0.9% on a dry basis, returns or exchanges shall, in principle, be processed. If the material has already been unloaded, a price reduction shall be applied, calculated as follows: for every 0.1 percentage point by which the total sulfur content on a dry basis exceeds the standard (with any fraction less than 0.1% rounded up to 0.1%), a deduction of RMB 3 per tonne shall be made. When the total sulfur content on a dry basis exceeds 1.1%, the buyer shall have the right to refuse acceptance into storage and to return the goods; if the goods have already been stored, a price reduction shall be applied, with the excess portion above 1.1% subject to a deduction of RMB 6 per tonne for each 0.1 percentage point by which it exceeds the standard (with any fraction less than 0.1% rounded up to 0.1%).

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

　　(5) When fixed carbon is ≥28% and <30%, the batch shall be subject to a deduction of 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 lower heating value on an as‑received basis is ≥ 3,600 kcal and < 3,800 kcal, a discounted purchase shall apply, with the settlement price for that batch calculated as: Contract unit price + 3,800 × measured calorific value × 0.97. If the lower heating value on an as‑received 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 calculated as: 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. The price reduction shall be calculated as follows: for each percentage point by which the measured total moisture exceeds the standard, the reduction amount equals the contract unit price multiplied by the difference between the measured total moisture and the standard value. If the total moisture of the coal delivered to the plant exceeds 30%, the buyer has the right to refuse acceptance and arrange for return or exchange; if the coal has already been accepted, a price reduction shall be applied, with the reduction amount equal to the contract unit price multiplied by twice the difference between the measured total moisture and the standard value.

　　(3) Upon receipt, if the total sulfur content exceeds 0.5%, return or exchange shall be processed in principle; if unloading has already taken place, a price reduction shall be applied, calculated as follows: for every 0.1% by dry basis that the total sulfur content exceeds the standard (with any fraction less than 0.1% rounded up to 0.1%), a deduction of RMB 3 per ton shall be made. If the total sulfur content by dry basis exceeds 0.7%, the buyer shall have the right to refuse acceptance into storage and to return the goods; if the goods have already been stored, a price reduction shall be applied, with the excess portion above 0.7% subject to a deduction of RMB 6 per ton, calculated in the same manner as above.

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

　　(5) When fixed carbon is ≥28% and <30%, the batch shall be subject to a deduction of RMB 5 per ton.

　　(6) When the ash content exceeds 12%, the batch shall be subject to a deduction of RMB 5 per ton.

II. Quotation and Payment Settlement

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

　　2. From October 26, 2021, to November 30, 2021, delivery shall be made in accordance with the buyer’s delivery notice. The supplier shall arrange for the goods to be transported to the company’s factory yard and shall be responsible for unloading; the unloading costs shall be borne by the supplier.

　　3. Payment terms for this 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 value-added tax invoice to the buyer (including 13% VAT). The buyer shall remit the full payment to the supplier within 30 days of receipt of such invoice.

III. Bid Opening and Evaluation

　　1. Bid opening date: 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 bid, the procuring entity shall notify the successful bidder in writing (by means of a 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 Letter of Award issued by the Employer, the successful bidder shall sign the Contract Agreement at the time and place designated by the Employer.

　　2. If the successful bidder fails to sign the contract in accordance with the prescribed procedures due to its own reasons, the procuring entity shall revoke its award of contract. In such a case, the procuring entity shall be entitled to select, in order, the second-ranked bidder or an alternate bidder.