Common use of Pricing Policy Clause in Contracts

Pricing Policy. The purchase price payable by us to Daoming Company under the Master Purchase Framework Agreement will be determined through a bidding process according to the internal rules and procedures of our Company. Our centralised procurement centre will send bidding documents to suppliers on our relevant approved supplier list and the procurement personnel of our Group will compare the purchase price offered by Daoming Company and other Independent Third Parties as well as accessing our business needs, the relevant qualifications/experience of the bidders in providing such chemical raw materials, and the quality of the chemical raw materials offered. The bidding process is monitored by our centralised procurement centre. The winning bidder and the purchase price for the transactions under the Master Purchase Framework Agreement will be approved by our centralised procurement centre and be valid for no more than one quarter. Where Daoming Company submits a bid but no other suppliers who are Independent Third Parties submit a bid in response to the bidding documents, our centralised procurement centre would compare the purchase price offered by Daoming Company to us and customers who are not connected to Daoming Company and, to the extent available, the prevailing market price of the relevant materials required by our Group. Our centralised procurement centre would then enter into arm’s length negotiations with Daoming Company based on the above information, historical purchase price for the materials under procurement, the types of the materials under procurement, and other factors which the centralised procurement centre considers appropriate. Any final price agreed with Daoming Company will be approved by our centralised procurement centre and be valid for no more than one quarter. The pricing terms under the Master Purchase Framework Agreement will be no less favourable to our Company than the terms offered by Independent Third Parties or the terms offered by Daoming Company to customers who are not connected thereto (as the case may be), and the purchase price will be in line with or lower than market rates and is in the best interests of our Company and our Shareholders as a whole.

Pricing Policy. The purchase price payable Charter and Related Fees shall be determined by us the parties at the time of placing the order with reference to Daoming Company the Charter and Related Fees charged by Independent Third Party freight services providers of comparable services. All expenses related to cargo terminal operations (“Cargo Terminal Expenses”) at departure and destination airport are to be paid by the Group, and in the event that the relevant cargo terminal requested such expenses to be directly settled by the relevant YTO Express Members, the relevant YTO Express Members will settle such amount on behalf of the Group and the Group will fully reimburse the relevant YTO Express Members for such expenses and pay a handling fee, which is equivalent to 5% of the Cargo Terminal Expenses to the relevant YTO Express Members. The relevant member of the Group which procure the services under the Master Purchase Framework Charter Agreement will be determined through shall settle by ways of telegraphic transfer the charter fee on a bidding process according to the internal rules and procedures of our Company. Our centralised procurement centre will send bidding documents to suppliers on our relevant approved supplier list and the procurement personnel of our Group will compare the purchase price offered by Daoming Company and other Independent Third Parties as well as accessing our business needs, the relevant qualifications/experience of the bidders in providing such chemical raw materialsweekly basis, and the quality of other related fees (including fuel surcharges) within five working days after the chemical raw materials offered. The bidding process is monitored by our centralised procurement centre. The winning bidder and the purchase price for the transactions under the Master Purchase Framework Agreement will be approved by our centralised procurement centre and be valid for no more than one quarter. Where Daoming Company submits a bid but no other suppliers who are Independent Third Parties submit a bid in response to the bidding documents, our centralised procurement centre would compare the purchase price offered by Daoming Company to us and customers who are not connected to Daoming Company and, to the extent available, the prevailing market price issuance of the relevant materials required by our electronic bill. Under the pricing policy of the Group. Our centralised procurement centre would then enter into arm’s length negotiations with Daoming Company based on the above information, historical purchase price for the materials under procurement, the types Group will obtain quotation from at least one (or such other number as shall be determined by the majority of the materials under procurement, independent non-executive Directors from time to time) Independent Third Party freight services providers and other factors which the centralised procurement centre considers appropriate. Any final price agreed compare it with Daoming Company will be approved by our centralised procurement centre and be valid for no more than one quarter. The pricing terms under the Master Purchase Framework Agreement will be no less favourable to our Company than the terms offered by Independent Third Parties or the relevant YTO Express Members for the provision of air freight charter services. The Group from time to time will assess the type of flight carrier needed including but not limited to model, size and maximum loading capacity of aircraft. Owning to the above prerequisites to fulfill the Group’s demand and need, there may be occasions whereby only one other air freight charter services provider offers the same air freight charter services as offered by the YTO Express Members for a particular route. As such, under such circumstances, the Group will at least obtain the quotation available in the market as comparison with the terms offered by Daoming Company to customers who are not connected thereto (the relevant YTO Express Members. For such exceptional circumstances, the Board is of the view that one quotation is sufficient in determining the Charter and Related Fees as such would be the case may be), and the purchase price will be in line with or lower than market rates and is only quotation available in the best interests market at the material time. Under the prerequisites mentioned above, where more than one air freight charter services provider is available for a particular route, the Group will generally obtain quotation from at least two to three Independent Third Party freight services providers for comparison. The Group will also compare the track record and reputation of our Company such Independent Third Party freight services provider against the relevant YTO Express Members’ track record and our Shareholders as a wholereputation. The Charter and Related Fees shall be determined by using the lower of (i) the Charter and Related Fees offered by the relevant YTO Express Members; and (ii) quotation from Independent Third Party freight services providers of comparable services.