Recently, Shouhang High-tech Energy Technology Co., Ltd. (hereinafter referred to as "the company" or "the seller") received the "Mengtai Dongsheng Phase II 2 × 660000 kW Project Indirect Air Cooling System Equipment Sales Contract" signed with Ordos Beiyuan Thermal Power Co., Ltd. (hereinafter referred to as "Beiyuan Thermal Power" or "the buyer"). The contract stipulates that the company will provide indirect air-cooling system equipment to the 2 × 660000 kilowatt project of Mengtai Dongsheng Phase II of Ordos Beiyuan Thermal Power Co., Ltd. According to the Articles of Association, the contract was signed after consideration and approval by the General Manager's Office of the Company.

I. Introduction of the parties to the contract

1. Company Name: Erdos Beiyuan Thermal Power Co., Ltd;

2. Legal Representative: Wu Xiaosuo;

3. Registered capital: 600 million RMB;

4. Domicile: the courtyard of Mengtai Power Plant, No.35, North of Yili Road, Dongsheng District, Ordos City, Inner Mongolia Autonomous Region;

5. Business scope: production and sales of electric power and heat; heating operation; sales and maintenance of electric power equipment; sales and maintenance of heating equipment.

6. There is no relationship between Beiyuan Thermoelectric and the Company;

7. No similar business occurred between Beiyuan Thermoelectric and the Company in the most recent fiscal year;

8. Performance ability analysis: The counterparty to this contract is a large integrated company with good reputation and good performance ability.

Main contents of 2. contract

1. Subject matter of the contract: indirect air cooling system equipment;

2. Total contract amount (including tax): RMB 120.5 million (in words: RMB 12,050 million yuan only);

3, settlement method: phased according to the proportion of settlement, as follows:

3.1 advance payment is 10% of the total contract price;

The 3.2 feeding amount is 30% of the total contract price;

The 3.3 arrival payment is 30% of the total contract price;

The 3.4 commissioning payment is 20% of the total contract price;

The 3.6 warranty is 10% of the total contract price;

4. Conditions of entry into force: This contract shall take effect immediately after being signed by the legal representatives or authorized representatives of both parties and stamped with the special seal of the contract;

5, the contract performance period: from the effective date of the contract to the issuance of the last set of contract equipment "final acceptance certificate", and the buyer and seller of the debt relationship is settled.

6. Breach of Contract

6.1 During the execution of this contract, if the equipment provided by the actual party is defective and the technical information is wrong, or due to the seller's technical personnel guidance errors and negligence, the resulting project rework, scrap and other losses and costs shall be borne by the seller. If replacement is required, the seller shall bear all the costs arising from the replacement to the installation site, and the replacement or repair period shall meet the needs of the on-site installation, otherwise, it shall bear the liability for breach of contract as stipulated in the contract.

6.2 During the guarantee period, if the equipment is found to be defective and does not conform to the provisions of this contract, the buyer shall have the right to make a claim against the seller if it is the seller's responsibility. If the seller has any objection to this claim, it shall be handled in accordance with the contract. Otherwise, the seller shall repair, replace, pay or entrust the buyer to arrange major repairs immediately after receiving the buyer's claim. Including but not limited to the resulting installation site replacement costs, freight and insurance costs borne by the seller.

6.3 the installation or outage of the contract equipment is delayed due to the seller's responsibility to replace or repair defective equipment, the guarantee period of the contract equipment shall be extended accordingly according to the delay in actual repair or replacement.

6.4 If the seller fails to deliver the goods in accordance with the delivery time stipulated in this contract (except for force majeure), the buyer shall have the right to charge the seller a breach of contract in the following proportion:

1-4 weeks late, the amount of liquidated damages per week is 0.5 of the total contract price;

5-8 weeks late, the amount of liquidated damages per week is 1% of the total contract price;

For more than 9 weeks late, the amount of liquidated damages per week is 1.5 per cent of the total contract price. Less than one week is counted as one week.

The payment of late payment by the seller does not relieve the seller of its obligation to continue delivery in accordance with the contract.

The Buyer has the right to terminate part or all of the contract if the equipment that has a significant impact on the installation is late for more than 2 months.

III. Impact of contracts on listed companies

1, the company has the ability to perform the contract, capital, personnel, technology and production capacity can ensure the smooth performance of the contract;

2. After the contract comes into effect, the delivery equipment and the implementation of the project shall be arranged according to the schedule of the project, and the specific schedule shall be performed according to the time agreed in the contract and the technical agreement. The contract tax-free amount represents approximately 14.33 of the Company's operating income of $744,084,663.39 in 2019. The execution of the contract will enhance the Company's operating income and operating profit for 2020, 2021 and 2022;

3, the signing and performance of this contract does not affect the company's business independence. There is no reliance on the other party to the contract as a result of the performance of the contract.

4. Risk Alert

1, the contract performance cycle is long, there is a risk of force majeure risk resulting in the contract can not be performed;

2, the contract payment recovery in stages according to the proportion of implementation, due to the long performance cycle, there is a risk of slow payment recovery, please pay attention to the risk of investors.

5. Contract Review Procedure

The contract is not subject to review and approval by the Company's Board of Directors, nor is it subject to the comments of independent directors and lawyers.

6. Documents for Reference

1. Both parties sign the original contract.

It is hereby announced.

Shouhang Gaoke Energy Technology Co., Ltd.

Board of Directors

7 September 2020