According to Article 2 of the "Huachuan Group's Gas Supply Pricing Plan" attached to the "Minutes of the Consultative Meeting on Gas Supply Pricing of Yinan Central Heating Project" on March 9, 2016, the price adjustment method: for every 30 yuan/ton increase or decrease in coal price, the heating price will increase or decrease 5 yuan/ton accordingly, and no adjustment will be made for less than 30 yuan.

Comprehensive consideration of pipeline capacity and loss and other heating costs, with the factory price of 5,000 kcal standard coal price 750 yuan/ton (including tax) in November 2016 as the basis, and according to the size of the monthly gas consumption of steam units divided into seven pricing.

The specific price situation is as follows (the total loss is borne by Huachuan Group) :

Note:

1. Since January 1, 2017, all centralized steam supply users have implemented the price plan in the above table, and adjusted according to the coal steam action mechanism.

2. In order to promote the balanced use of steam during the peak and valley period, the price of peak and valley steam with the difference of 45 yuan is implemented:

3. For customers who retire boilers according to the government plan, the government discount of 10 yuan/ton from December 25, 2016 to January 1, 2017 will be recharged by our company on January 5, 2017.

4. Customers who have a holiday during the Spring Festival must submit an application report for stopping steam supply to our company before January 10, 2017, and our company will exclude 15% of the minimum gas consumption during the application report.

Warm reminder:

I group company will price information on the http://www.huachuangroup.net website for the public release, please timely attention.

Zhejiang Huachuan Industrial Group Co., Ltd.

December 12, 2016