Recently, Shouhang High-tech Energy Technology Co., Ltd. (hereinafter referred to as "the company" or "the contractor") and Inner Mongolia Dongyuan Science and Technology Group Co., Ltd. (hereinafter referred to as "the contractor") signed the "Inner Mongolia Dongyuan Science and Technology Group Co., Ltd. 2 × 350MW Low Calorific Value Coal Self-provided Power Plant EPC General Contract", the contract stipulates that the company will provide direct air cooling system equipment and EPC general contracting to the 2 × 350MW low calorific value coal self-provided power plant of Inner Mongolia Dongyuan Science and Technology Group 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.

Basic information of the parties to the 1. contract

1. Company Name: Inner Mongolia Dongyuan Technology Group Co., Ltd;

2. Legal Representative: Yu Haiming;

3. Domicile: Wuda Industrial Park, Wuhai Economic Development Zone;

4. Business scope: sales of special chemical products (excluding hazardous chemicals); sales of coal and products; sales of lime and gypsum; sales of building materials; heat production and supply; sales of chemical products (excluding licensed chemical products); solid waste treatment.

5, the contractor and the company does not have an associated relationship;

6. No similar business has occurred between the contractor and the Company in the most recent fiscal year;

7. Analysis of performance ability: The counterparty to this contract is a large integrated company with good reputation and good performance ability.

II. Main Contents of the Contract

1. Subject matter of the contract: EPC general contracting of indirect air cooling system;

2. Total contract amount (including tax): RMB 268 million (in words: RMB 21.5 million 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 20% of the total contract price;

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

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

The 3.5 acceptance payment is 10% 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:

In the course of the 6.1's performance of the contract, any of the following circumstances shall be a breach of contract by the Contractor:

(1) The design of the contractor, the contractor's documents, the implementation and completion of the project does not comply with the law and the contract;

(2) The contractor, in violation of the contract, privately transfers all or part of the rights under the contract to another person, or privately transfers all or part of the obligations under the contract to another person;

(3) The contractor, in violation of the contract, withdraws the construction equipment, temporary facilities or materials that have entered the construction site according to the contract without the approval of the supervisor;

(4) The contractor uses unqualified materials or engineering equipment in violation of the contract, and the quality of the project does not meet the standard requirements, and refuses to remove the unqualified project;

(5) The contractor fails to complete the work agreed in the contract in time according to the contract schedule, resulting in delay of the construction period;

(6) Failing to pass the completion test or the post-completion test due to the reasons of the Contractor;

(7) During the defects liability period, the Contractor fails to repair the contents of the defects list listed in the project acceptance certificate or the defects occurred during the defects liability period, and refuses to repair according to the instructions of the Supervisor;

(8) The Contractor is unable to continue to perform or clearly indicates that it will not perform or has substantially stopped performing the Contract;

(9) Other circumstances in which the Contractor fails to perform its obligations as agreed in the contract.

If one of the following circumstances occurs during the 6.2 performance of the contract, it is a breach of contract by the contractor:

(1) The contractor fails to pay the price as agreed in the contract, or delays or refuses to approve the payment application and payment vouchers, resulting in delay in payment;

(2) Work stoppage caused by the Employer;

(3) The Supervisor fails to issue instructions to resume work within the agreed period without justifiable reasons, resulting in the failure of the Contractor to resume work;

(4) The Employer is unable to continue to perform or clearly indicates that it will not perform or has substantially ceased to perform the contract;

(5) The contractor fails to perform other obligations stipulated in the contract.

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 amount of the contract including tax accounts for about 37.30 of the company's operating income of 718,536,068.30 yuan in 2021; the implementation of the contract will enhance the company's operating income and operating profit in 2023.

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, and there is a risk that the contract will not be performed due to the risk of force majeure and the risk that the fluctuation of raw material prices will affect the fluctuation of the company's operating gross profit margin;

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.

V. 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.

VI. Documents for Reference

1. Both parties sign the original contract.

It is hereby announced.

 

Shouhang Gaoke Energy Technology Co., Ltd.

Board of Directors

January 16, 2023