According to the "Agenda of the Negotiation Meeting on Steam Supply Pricing for the Yinan Central Heating Project" dated March 9, 2016, as well as the "Steam Supply Pricing Plan of Huachuan Group" attached to it, Article 2 of the adjustment method: For every 30 yuan increase or decrease in the coal price per ton, the heating price will increase or decrease by 5 yuan per ton. If the increase or decrease is less than 30 yuan, no adjustment will be made.

Taking into account the heating costs including pipeline capacity and loss, as well as the heating conditions of the users, based on the benchmark price of about 810 yuan per ton (including tax) for 5000 kcal standard coal, the prices will be uniformly reduced by 5 yuan per ton on the basis of the price adjustment notice issued on November 7, 2025.

   The specific breakdown of prices is as follows (the total loss will be borne by Huachuan Group):

Note: 1. This price adjustment notice will come into effect at 8 a.m. on January 25, 2026.

2. All users of centralized heating are subject to the price scheme as outlined in the above table, and at the same time, adjustments are made according to the coal and gas linkage mechanism.

3. If the coal price is lower than the benchmark price of 500 yuan per ton, for the consumption volume of over 5,000 tons, the price difference for each tier will be changed from 4 yuan to 3 yuan.

4. Users of medium-pressure steam will have an additional charge of 37 yuan per ton on top of the base settlement price.

5. For the use of heat under the hot application method, if the total heat consumption per month is less than 15% of the declared amount, the fee will be calculated at 15%.

Warm reminder:

Our group company will publicly release the relevant price information on the company's website at http://www.huachuangroup.net. Please pay close attention in a timely manner.

Zhejiang Huachuan Industrial Group Co., Ltd.

January 6th, 2026