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 made 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: Settlement Unit Price = 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 for the price reduction is as follows: Price Reduction Amount = Contract Unit Price × (Total Moisture Content Detected - Standard Total Moisture Content). If the total moisture content of coal delivered to the plant exceeds 2%, the Buyer reserves the right to refuse acceptance and storage, opting instead for return or exchange. If the coal has already been stored, a price reduction will be implemented, calculated as: Price Reduction Amount = Contract Price × (Total Moisture Content Detected - Standard Total Moisture Content) × 2.

　　(3) Upon receiving coal with total sulfur content exceeding 0.9%, return or exchange shall be executed in principle. If unloading has already taken place, 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 made. Should the total sulfur content exceed 1.1% on a dry basis, the buyer reserves the right to refuse acceptance and return the goods. If the coal has already been delivered into storage, a price reduction will be applied accordingly: for each 0.1% excess beyond the 1.1% threshold (with any fractional amount still counted as 0.1%), a deduction of RMB 6 per ton will be made.

　　(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% (inclusive), this batch of products will be deducted by 5 yuan per ton.

　　(6) When the ash content exceeds 10%, this batch of products will be deducted by 5 yuan/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 is greater than 28% but not more than 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 exceeding 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 exchange. If the coal has already been stored, a price reduction will be applied accordingly, with the reduction amount calculated as follows: Contract Unit Price multiplied by twice the difference between the actual total moisture content and the standard value.

　　(3) Upon receiving a total sulfur content exceeding 0.5%, 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 method for the price reduction is as follows: For every 0.1% increase in total sulfur content above the standard (with any fractional portion exceeding 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. In cases where the goods have already been received into the warehouse, a price reduction will be implemented. Specifically, for each 0.1% increase in total sulfur content above the 0.7% threshold (with any fractional portion exceeding 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 for 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, to 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). 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 Date: 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 validity period of the bid, the tenderer will notify the successful bidder in writing (Award Notification). The Award Notification shall constitute an integral part of the contract.

IV. Execution of the Contract Agreement

　　1. Upon receiving the Letter 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.