On 18 January 2019, Datang International Power Generation Co., Ltd. ("Company") entered into the Coal and Materials Purchase and Sale Framework Agreement with China Datang Corporation Limited ("CDC"). The term of the agreement shall commence from the Effective Date and shall continue up to and including 31 March 2019. CDC Group agreed to provide products and services relating to (i) Procurement of Production and Infrastructure Materials and Relevant Auxiliary Services; and (ii) Coal Supply to the Group during the term of the Coal and Materials Purchase and Sale Framework Agreement. The Group agreed to provide products and services relating to Coal Supply and Coal Transportation to CDC Group during the term of the Coal and Materials Purchase and Sale Framework Agreement. In respect of the Procurement of Production and Infrastructure Materials and Relevant Auxiliary Services, the Group agreed to entrust CDC Group to carry out centralised purchase of production and infrastructure materials, the prices of which are to be determined through public tender. CDC Group will charge a certain management service fee in respect of its services which shall not exceed 6% of the purchase amount. The price for the entire package of service and equipment shall be calculated on the basis of the scope of actual services provided and the pricing standard of the entire package of relevant services and materials. Such service fee shall be determined through arm's length negotiations between both parties taking into account the amount of management service fees charged by other independent cooperative service providers when providing similar services. The relevant management service fee to be charged by CDC Group shall not be higher than the fee which would have been charged if the same type of services were to be provided to Independent Third Parties or the other companies of the CDC Group. The said management service fee of not more than 6% of the purchase amount is arrived at after considering the management service fee charged by Independent Third Parties providing similar services and it is ascertained that the service management fee charged by Independent Third Party is not more than 6% of the purchase amount of the production and infrastructure materials. Upon entering into specific procurement contract, the material management department of the Company will approve the management service fee to ensure that the rate of the management service fee is not higher than that stipulated by the Coal and Materials Purchase and Sale Framework Agreement. On the prerequisite that the market price of coal has been taken into account, the price of Coal Supply and Coal Transportation is to be determined on the basis of arm's length negotiations and such transactions shall be based on normal commercial terms and prevailing market conditions. Relevant factors such as purchase costs of coal, transportation costs of coal, trend of market change, changes in policies, historical transaction price, potential price fluctuations, etc. shall also be taken into account. The fuel management department of the Company is responsible for collecting the market prices of coal and coal transportation with reference to the trend of market change in the last three years as the basis of determining the consideration. The sales prices of fuel companies are to be determined according to the purchase costs of fuel companies, the coal consumption demands of subordinate power generation companies and the trend of price change in the Bohai Rim and the trend of international price change, upon negotiation with power generation enterprises, taking into account factors such as the transportation costs of coal of shipping companies, the transportation demands of coal of relevant enterprises, historical transaction price and potential price fluctuations. The price of market coal is to be formed upon determination of the price of electricity purchase and coal sale in mid-to-long term agreements and coal transportation prices through negotiation with power generation enterprises, coal mining enterprises, shipping companies and fuel companies respectively or through the bidding platform for coal procurement in the market.