The Existing Products Continuing Connected Transaction Agreements entered into by Maanshan Iron & Steel Company Limited and China Baowu and the Parent Group will expire on 31 December 2021. On 29 September 2021, the Company entered into the Sale and Purchase of Products Agreement with China Baowu, pursuant to which the Group agreed to continue to sell products to China Baowu Group and China Baowu Group agreed to continue to sell products to the Group during the period from 1 January 2022 to 31 December 2024. The Company agreed to sell products to China Baowu Group through itself and the Group, including steel, ingot, coke, iron oxide, metallurgical accessories and materials (stainless steel belt, cable, tools, etc.) and other product (labor insurance, office supplies, etc.); electricity, domestic water, industrial treated water, blast furnace gas, coke oven gas, converter gas, steam, compressed air, other gases and slag, etc. China Baowu itself agreed to sell products to the Company Group through itself and China Baowu Group, including ore, lime, scrap steel, steel billets, refractory materials, spare parts, complete equipment, non-standard spare parts and other commodities (coke, coal, alloy, oil, gas, etc.). Both parties agreed to adopt an appropriate, reasonable and fair pricing method in accordance with the principle of fairness in formulating the transactions under the Sale and Purchase of Products Agreement. The terms of the products (including but not limited to pricing and payment) to be sold by the Group to China Baowu Group shall not be more favourable than those to the independent third parties provided by the Group for similar categories of products. The terms of the products (including but not limited to pricing and payment) to be sold by China Baowu Group to the Group shall not be less favourable than those provided by the independent third parties to the Group for similar categories of products. During the term of the Sale and Purchase of Products Agreement, the Company has the right to decide whether to enter into transactions with any independent third parties in respect of the transactions contemplated under the Sale and Purchase of Products Agreement. The price shall be based on state-prescribed price, if any. In the absence of state-prescribed price, the pricing shall be based on the market price, which shall be determined through open tenders, price comparison, arm's length negotiations between the parties, and shall be based on normal commercial terms. The pricing regarding the products to be sold by the Group to China Baowu Group shall not be lower than the price of the same categories of products sold by the Group to independent third parties. The pricing regarding the products to be sold by China Baowu Group to the Group shall not be higher than the price of the same categories of products sold by the independent third parties to the Group.