On 1 April 2021, Anhui Conch Cement Company Limited entered into the Procurement of Cement Admixtures (Grinding Aids) Contract for procurement of cement grinding aids with Conch New Materials Company, with a validity period from the date of the Contract to 31 December 2022. The details of the Contract are as follows. Conch New Materials Company (Seller). The Group will purchase three types of cement grinding aids, namely the composite type, the production-increasing type and the enhanced type, from Conch New Materials Company. The purchase quantity shall be determined by the Company according to the actual needs for its cement production. Conch New Materials Company will be responsible for product transportation and the related expenses. The relevant subsidiaries of the Company shall make settlement payment within two months after receiving the invoices of each batch of products from Conch New Materials Company. The relevant subsidiaries of the Company will respectively enter into individual sub-contracts with Conch New Materials Company regarding the procurement of cement grinding aids. The major terms of these individual sub-contracts shall be in line with those of the Procurement of Cement Admixtures (Grinding Aids) Contract. Validity of the Contract: The Procurement of Cement Admixtures (Grinding Aids) Contract was entered into between the Company and Conch New Materials Company on 1 April 2021, and was approved by the Board of the Company to become effective on the same date. It is valid from 1 April 2021 to 31 December 2022. Contract Price, Annual Cap and Basis for its Determination: Contract Price and Annual Cap: According to the Group's cement production plan for the second to the fourth quarters of 2021 and for the year of 2022 and based on the grinding aids product unit price as prescribed in "Basis for determination of Contract Price" below, it is estimated that from the date of the Contract to 31 December 2022, the aggregate transaction amount for the Group's procurement of cement grinding aids from Conch New Materials Company will be not more than RMB 1,400,000,000, of which the maximum transaction amount for the period from 1 April 2021 to 31 December 2021 is RMB 600,000,000, and the annual cap amount for 2022 is RMB 800,000,000. Basis for determination of Contract Price: Taking into account the stability and adaptability of grinding aid products and the availability of secured supply, the Company conducted price inquiry and comparison of current top tier domestic suppliers of cement grinding aids through a comprehensive review of, among others, the financial and corporate performance, credit status, credibility of contract performance, financial status, production craftsmanship and technology, project management capabilities, overall strengths and price quotations of 3 suppliers (1 being Conch New Materials Company and the other 2 being independent third parties). Conch New Materials Company was finally selected as the Group's domestic supplier of cement grinding aid products in consideration of its optimal overall price-performance ratio and its reliability in terms of secured supply. The unit price of composite type cement grinding aid products under the Procurement of Cement Admixtures (Grinding Aids) Contract was determined based on the results of the price inquiry and comparison as described above, and upon further competitive negotiations between the Company and Conch New Materials Company (the price is lower than the unit price under the First Quarter Contract). The prices of the production-increasing type and the enhanced type grinding aid products are settled on the basis of the price of the composite type grinding aids products, with upward and downward adjustment of 3%. In addition, in order to protect the rights and interests of the Parties, during the validity period of the Contract, both Parties will adjust the purchase price quarterly according to the market price fluctuations (if there are major changes) of the key raw materials for the production of grinding aids.