In accordance with the requirements of Tieling County's Huanfa (2020) No. 11 document, "Notice on the Upgrading and Transformation Plan for Pollution Control Facilities of Coal-fired Boilers in Tieling County (Implementing Special Emission Limits)", and to further strengthen air pollution control efforts, implementing the spirit of the "Notice of the People's Government of Liaoning Province on Issuing the Three-Year Action Plan for Winning the Blue Sky Protection War in Liaoning Province (2018-2020)", coal-fired boilers with a capacity of 20 tons of steam per hour (14 MW) or more in Tieling County that are included in key pollutant discharge monitoring are required to implement special emission limits for air pollutants from November 1, 2020. The execution standards before and after emission are shown in Table 1.

Table 1 Comparison of Emission Limits of Air Pollutants Before and After Emission Limits Unit: (mg/m³)

Based on the above situation, after discussion and decision by our company's Party Committee and General Manager's Office, we will upgrade and transform the existing boilers and environmental protection facilities. We are now publicly bidding for the boiler and environmental protection facility upgrade and transformation project. The specific content is as follows:

I. Bidding Time and Location:

Time: September 16, 2020, 1:30 PM

Location: No. 12, Shatuozi Second Street, Yaobao Town, Tieling County, Liaoning Jihua 3523 Special Equipment Co., Ltd. factory area, general assembly workshop office area, third-floor small meeting room.

II. Bidding Requirements for Boiler and Environmental Protection Equipment Upgrade and Transformation:

(1) General Contract Scope:

The contractor is responsible for all investment in the upgrade and transformation of boilers and environmental protection equipment. After the project is completed, it must meet the environmental protection requirements of our company's location.

1.Environmental Protection Equipment Transformation Plan (Budget):

1. Dust Removal Tower Technical Parameters (must not be lower than these parameter requirements)

2. Desulfurization Tower Technical Parameters (must not be lower than these parameter requirements)

II. Project Schedule Requirements: Completion within 45 days after signing the construction contract.

III. Procedures for Participating in the Bidding Process:

(I)Security Deposit: Bidders must submit a security deposit of 20,000 yuan before bidding. The deposit will be returned to the bidder within 5 days after the bidding concludes.

(II)Bidders must prepare business licenses and the ID cards of the legal representative or authorized agent (if the bidder is an individual, an ID card can be provided).

(III)Proof of work experience;

IV. Other Matters Requiring Announcement:

(I) Payment of Contract Fees: Within 5 days of signing the construction contract, the principal will pay the contractor 30% of the total repair cost for the purchase and manufacture of boiler and environmental protection equipment and facility materials. 30% of the total amount will be paid at the commencement of construction as construction costs. After the completion of construction and after the joint acceptance by both parties confirms that there are no quality issues, the principal will pay the contractor 35% of the total amount within 7 days. The remaining 5% of the total amount will be kept as a quality assurance deposit. After the warranty period of one heating season, deducting repair costs due to quality issues, the remaining quality assurance deposit will be returned in full to the contractor.

(II) Construction Safety Requirements: After winning the bid, a construction agreement and a safety construction agreement will be signed simultaneously. The contractor is required to pay attention to the safety of construction personnel during the upgrading and transformation of the boiler and environmental protection facilities. If any safety accident occurs due to the contractor, the contractor will bear the responsibility;

(III) Invoice Issuance: The contractor is required to issue a special VAT invoice;

(IV) Contract Amendment and Termination

During the performance of this contract, if force majeure (Force majeure mainly includes the following situations:1. Natural disasters, such as typhoons, floods, hail; 2. Government actions, such as requisition, expropriation; 3. Abnormal social events, such as strikes, riots.) makes it difficult to perform this contract, this contract may be amended or terminated, and neither party will bear any responsibility.

(V) Liability for Breach of Contract

During the performance of the contract, any party that violates the provisions of the contract shall be deemed to be in breach of contract. The breaching party shall pay the other party a penalty of 10% of the contract amount agreed in the contract and compensate the other party for the actual losses caused by the breach of contract.

Liaoning Ji Hua 3523 Special Equipment Co., Ltd.

September 10, 2020