Raw coal (Puyang Coal, Luliang Coal)

I. Quality Requirements and Conditions for Assuming Responsibility for Quality

　　Product quality is governed by a system of deductions for exceeding standards: if the supplier delivers products that surpass the specified quality criteria, the settlement will be adjusted by reducing the unit price. The specific procedure is as follows:

1. Puyang Coal

　　(1) When the applied basis lower heating value is between 4,000 and 4,200 kcal/kg, a discounted purchase will be applied. In this case, the settlement price for the batch will be calculated as: Contracted unit price + (4,200 × Measured calorific value × 0.97). However, if the applied basis lower heating value falls between 3,800 and 4,000 kcal/kg, the buyer reserves the right to refuse acceptance into the warehouse, opting instead for either a return or an exchange of goods. In such cases, all return or exchange costs will be borne by the seller. If the buyer agrees to accept the goods, the settlement price will be calculated as: Contracted unit price + (4,200 × Measured calorific value × 0.87).

　　(2) When the received total moisture content is between 22% and 24% (inclusive), a price reduction will be applied. The reduction will be calculated as follows: Price Reduction Amount = Contract Unit Price × (Total Moisture Content at Delivery – Standard Total Moisture Content). However, if the total moisture content of coal delivered to the plant exceeds 2%, the buyer has the right to refuse acceptance and return the goods for replacement or refund. If the coal has already been accepted into the warehouse, a price reduction will still apply, calculated as: Price Reduction Amount = Contract Price × (Total Moisture Content at Delivery – Standard Total Moisture Content) × 2.

　　(3) When the total sulfur content on a dry basis exceeds 0.9%, returns or exchanges will generally be processed. However, if the goods have already been unloaded, a price reduction will apply instead. The reduction is calculated as follows: for every 0.1% by which the dry-basis total sulfur content surpasses the standard (even if the excess is less than 0.1%, it will still be rounded up to 0.1%), a deduction of 3 yuan per ton will be applied. If the dry-basis total sulfur content exceeds 1.1%, the buyer has the right to refuse acceptance into storage and demand a return. If the goods have already been stored, a further price reduction will be applied specifically for the portion exceeding 1.1%. In this case, the reduction is calculated as follows: for every 0.1% by which the dry-basis total sulfur content surpasses the 1.1% threshold (again, any shortfall below 0.1% will be rounded up to 0.1%), a deduction of 6 yuan per ton will be imposed.

　　(4) When the volatile matter content is between 28% and 30% (inclusive), this batch of product will be deducted by 5 yuan per ton.

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

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

2. Lu Liang Coal

　　(1) When the applied basis lower heating value is between 3,600 and 3,800 kcal/kg, a discounted purchase will be applied. In this case, the settlement price for the batch will be calculated as: Contract Unit Price + 3,800 × Measured Calorific Value × 0.97. However, if the applied basis lower heating value falls below 3,600 kcal/kg, the buyer will refuse to accept the product into storage. If the buyer agrees to receive the product despite this, the settlement price will be adjusted to: Contract Unit Price + 3,800 × Measured Calorific Value × 0.87.

　　(2) When the total moisture content is between 28% and 30% (inclusive), a price reduction will be applied for procurement. The reduction calculation method is as follows: for each percentage point of total moisture content exceeding the standard, the price reduction 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 has the right to refuse acceptance and storage, opting instead for return or exchange. However, if the coal has already been stored, a price reduction will still apply, calculated as: contract unit price multiplied by twice the difference between the actual total moisture content and the standard value.

　　(3) In principle, if the total sulfur content exceeds 0.5%, returns or exchanges will be processed. However, if the shipment has already been unloaded, a price reduction will apply instead. The reduction will be calculated as follows: for every 0.1% increase in total sulfur above the standard (even if the excess is less than 0.1%, it will still be rounded up to 0.1%), the buyer will receive a deduction of 3 yuan per ton. If the total sulfur content surpasses 0.7% on a dry basis, the buyer reserves the right to refuse acceptance and demand a return of the goods. If the shipment has already been received and stored, a further price reduction will be applied specifically for the portion exceeding 0.7%. This additional reduction will be calculated at 6 yuan per ton for each 0.1% increase beyond the 0.7% threshold (again, any fraction less than 0.1% will be rounded up to 0.1%).

　　(4) When the volatile matter content is between 28% and 30% (inclusive), this batch of products will be deducted by 5 yuan per ton.

　　(5) When fixed carbon content is between 28% and 30%, this 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 bid submission is from October 26, 2021, to November 30, 2021. During this period, prices must remain unchanged; bidders should carefully consider market risks.

　　2. From October 26, 2021, to November 30, 2021, deliveries will be made according to the delivery notice issued by the buyer. The supplier is responsible for transporting the goods to our company’s factory yard and handling the unloading, with the unloading costs borne by the supplier.

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

3. 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 will notify the successful bidder in writing (via the Letter of Award). The Letter of Award is an integral part of the contract.

4. Signing of the Contract Agreement

　　1. Upon receiving the Letter of Acceptance 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 will revoke the bid award. In this scenario, the tenderer reserves the right to sequentially select either the second-ranked bidder or an alternate winning bidder.