China Shipbuilding Long March Heavy Industry Connecting Rod Material Procurement Demand Announcement Information

Requirement Information Number: DZZB-2025-001

China Shipbuilding Long March Heavy Industry Connecting Rod Material Procurement Announcement

1. Procurement Method: Competitive Bidding

2. Overview of Procurement Project

2.1 Name and Quantity of Procurement Project

2.2 Delivery or Implementation Time, Deadline, and Delivery Location

Delivery to be completed before January 20, 2025, delivered to Chongqing Long March Heavy Industry Co., Ltd.

2.3 Payment Method, Time, and Conditions

All materials must be delivered within the required time. After inspection and acceptance upon arrival, the supplier shall issue a full-amount VAT special invoice according to the contract amount. Otherwise, the purchaser has the right to refuse payment, and the payment will be made six months after the actual arrival of the goods.

3. Technical Requirements

*3.1 Technical Requirements: Follow the technical requirements for raw material procurement provided by the purchaser.

3.2 The supplier must provide a substantive response to the technical requirements in 3.1, especially the quality certification documents must be complete. Incomplete quality certification documents will be treated as unqualified by the purchaser, and the purchaser has the right to make price adjustments for unqualified products.

3.3 Implementation of our company's qualified supplier management: For qualified suppliers that are manufacturers, they can only provide products manufactured by themselves that are included in our company's directory; for qualified suppliers that are agents, they should provide products from the same agent manufacturer as listed in our company's qualified supplier directory. If the products provided are not included in our company's qualified supplier directory, it should be specially stated during the quotation. If a supplier that is not in our company's qualified supplier directory is selected as the intended successful bidder, they need to complete the relevant approval process for our company's qualified suppliers first. Only after approval can they become the successful bidder and sign the contract; otherwise, they cannot sign the contract.

4. Commercial Requirements

*4.1 Supplier Qualification Requirements: A copy of the business license with a fresh seal (except for our company's qualified suppliers);

*4.2 The supplier shall provide a legal representative's identity certificate or a power of attorney with a legal representative's identity certificate (except for our company's qualified suppliers);

*4.3 Joint ventures are not accepted for this procurement project;

4.4 Supplier Performance (not applicable this time);

4.5 Quotation and Response Document Validity Period: Valid for five days from the date of platform announcement;

4.6 Maximum Price Limit for the Procurement Project. Quotations and response documents exceeding the maximum price limit will be rejected (not applicable this time);

4.7 Non-qualified suppliers who win the bid need to provide samples. After the sample inspection is qualified, a small batch trial will be conducted. The trial quantity and settlement method will be determined through mutual agreement. After the trial is successful, the settlement will be made at the winning price. If it fails, the goods will be returned directly;

4.8 Bid Bond (not applicable this time);

4.9 Performance Bond (not applicable this time);

4.10 If the supplier engages in collusion, bribery, falsification, or uses forged or invalid qualification certificates, their quotations and response documents will be invalid, and they will not be allowed to participate in our company's procurement activities for 3 years from the date of discovery; in serious cases, they will not be allowed to participate in our company's procurement activities for 5 years from the date of discovery. If a supplier withdraws its quotation and response documents after the deadline for submitting quotations and response documents, it will not be allowed to participate in our company's procurement activities for 3 months from the date of withdrawal. If the supplier's above-mentioned actions cause losses to our company, our company has the right to legally request the government administrative supervision department to investigate and hold them accountable and bear the compensation liability.

4.11 Composition of Quotation and Response Documents: According to platform requirements;

4.12 Number and Sealing of Quotation and Response Documents (not applicable this time);

4.13 Deadline for Receiving Quotations and Response Documents: According to platform requirements.

5. Evaluation Method and Standard.

5.1 Evaluation Method (check): Lowest Bid Price Method R Comprehensive Scoring Method ☐

5.2 The lowest bid price method refers to the evaluation method where the supplier whose quotation and response documents meet all the substantive requirements of the procurement information and has the lowest quotation is the successful bidder for this procurement project;

5.3 The comprehensive scoring method refers to the evaluation method where the supplier whose quotation and response documents meet all the substantive requirements of the procurement information and has the highest score according to the quantitative indicators of the evaluation factors is the successful bidder for this procurement project. The evaluation standard for the comprehensive scoring method is detailed in Attachment 7.

5.3.1 Total Score (100 points) = Score of Commercial Part (XX points) + Score of Technical Part (XX points)

6. Draft Contract Text

Material Procurement Contract

Purchaser: Chongqing Changzheng Heavy Industry Co., Ltd. (hereinafter referred to as Party A) Contract No.:

Signing Location: Dadukou District, Chongqing

Seller: *** (hereinafter referred to as Party B) Signing Date: 2024 Month Day

Based on the principles of voluntariness, equality, fairness, and good faith, and in accordance with the "Civil Code of the People's Republic of China" and relevant laws and regulations, both parties, after mutual consultation, have reached this contract regarding Party A's purchase of goods from Party B, for their mutual observance.

Article 1 Product name, quantity, and price purchased by Party A from Party B.

Article 2   Essential items and accessories with the product: 。

2.1 Party B Upon delivery of the product, should provide Party A with product-related product qualification certificates, product quality certificates or other quality certificates, product original material test reports or component inspection reports, etc. (Relevant documents should be originals or copies with the supplier's official seal).

2.2 Party B It must be ensured that the above-mentioned documents and related reports are issued by Party B employees with relevant qualifications.

Article 3   Quality standards and technical requirements, shall be implemented in accordance with item (4) below:

(1) Implemented according to national standards, Meeting the company's requirements for quality, size, and weight per bundle. If it is found that the requirements are not met during use, the company will not settle the payment for the used portion. ；

(2) In the absence of national standards but with industry standards, implement according to industry standards;

(3) In the absence of national and industry standards, implement according to enterprise standards;

(4) In the absence of the above standards, or if there are such standards but the purchaser has special requirements, implement according to the technical conditions, samples, or supplementary technical requirements agreed upon by both parties in the contract.

The products provided by Party B must fully meet the agreed quality standards and technical requirements, and the quality certificates must be complete and meet the product technical requirements; if the quality certificates are incomplete, Party A will treat them as unqualified, and Party A has the right to make a price reduction for unqualified products.

Article 4   The period and conditions for which Party B is responsible for product quality

Party B shall ensure that the effective service life of the above products is not less than five years (calculated from the date of acceptance by Party A), and Party B shall be responsible for product quality problems within the effective service life of the product.

Article 5   Product packaging requirements

5.1 Party B is responsible for selecting the packaging, transportation methods, and vehicles on its own, ensuring product quality and safety and complying with relevant national laws and regulations. The expenses shall be borne by Party B.

5.2 If the packaging needs to be recycled, the recycling and processing costs shall be borne by Party B.

Article 6   Payment

   6.1 After all materials are delivered within the required time and acceptance is completed, Party B shall issue a full-amount VAT special invoice according to the contract price. Otherwise, Party A has the right to refuse payment of the amount, and after being put on account, Party A will pay in full within six months by acceptance. If it is a group procurement by a shipping company, please note that the total price includes the group management service fee for cash payment.

6.2 If Party B fails to issue a VAT special invoice that can be used for tax deduction to Party A in a timely manner, resulting in Party A being unable to verify and deduct the invoice in a timely manner, Party B shall bear the liability for compensation to Party A, and the compensation scope includes, but is not limited to, directly deductible taxes, late payment fees, fines, and related direct losses.

Article 7   Delivery unit, delivery method, transportation method, and delivery location (including dedicated lines and wharves) of the product

    7.1 Delivery (pickup) date of goods: Delivery to be completed before February 11, 2025, delivered to Chongqing Changzheng Heavy Industry Co., Ltd.

    7.2 The delivery method shall be implemented in accordance with item (1) below.

(1) Delivery by Party B;

(2) Self-pickup and transportation by Party A;

(3) Transportation by Party B (Party B handles transportation, taking full account of Party A's requirements, and agreeing on the contract's transportation route and means of transportation).

  7.3 Regarding the confirmation of the quantity of goods: Party B shall provide a detailed delivery list, which shall be physically checked by Party A, and both parties shall sign and confirm on the delivery list.

7.4 Transportation method: Road transport.

7.5 Delivery location and receiving unit (or recipient): Within Party A's company.

If Party A requests a change in the delivery location or recipient, it shall notify Party B in writing six days before the delivery date stipulated in this contract; otherwise, Party B shall still deliver the goods to the location stipulated in this contract.

7.6 Product Weight: The delivery list or weighing slip provided by Party B with the goods shall be used as the basis for weight acceptance. In principle, Party A shall use weighing to verify the weight and determine the final received weight according to Party A's relevant acceptance system. If Party B has any objection to the weight confirmed by Party A, the weight weighed by a third-party unit with relevant qualifications can be used as the basis for acceptance calculation, and the third-party weighing fee shall be borne by Party B. Party A has the right to refuse acceptance or not settle the payment for the quantity exceeding 5% of the contract quantity.

Article 8   Ownership of Products

The ownership of this product shall be transferred to Party A in its entirety from the date of delivery to Party A.

Article 9   Risk of Damage or Loss of Products

The risk of damage or loss of products shall be borne by Party B before the products are delivered to Party A, and by Party A after the products are delivered to the designated location of Party A.

Article 10   Acceptance

Based on the acceptance standards signed by both parties. Party A shall conduct inspection according to the quality standards agreed by both parties and issue an inspection conclusion. If the quality meets the quality standards agreed by both parties, Party A shall confirm and handle the warehousing procedures; if the quality does not meet the quality standards agreed by both parties, Party A shall issue a conclusion that the quality does not meet the standards and notify Party B to return the goods or make other disposals.

Article 11   Warranty Clause  

11.1 Party B guarantees that the representative signing this contract is legal and has full authorization from Party B.

11.2 Party B guarantees that it has legal ownership and disposal rights over the products provided to Party A, and that there are no mortgages, liens, or other rights that will hinder Party A's use of the products.

11.3 Party B guarantees that the products it provides meet the legal regulations and the technical quality requirements agreed by both parties in terms of design, materials, and manufacturing processes, and guarantees that the products are safe, free from safety hazards, and will not cause personal injury or property damage during normal operation.

11.4 Party B guarantees that the products it provides are newly manufactured.

11.5 Party B guarantees that the products are suitable for usual standards and suitable for Party A's production purposes.

11.6 If Party A has special requirements for the brand and manufacturer of the products, Party B guarantees that the brand and manufacturer of the products meet Party A's requirements.

11.7 Party B guarantees that the delivered products meet the quality requirements of the relevant quality certificates submitted with the goods by Party B.

Article 12   Warranty Period

12.1 The warranty period for this product is five years, calculated from the date on which the product is delivered to Party A and accepted and confirmed as qualified by Party A.

12.2 During the warranty period, if the product malfunctions, Party B shall be responsible for free replacement. Party B shall replace the product within five days of receiving notification from Party A, including but not limited to telephone, fax, and email. If Party B fails to replace the product within the agreed time, Party A has the right to arrange for other personnel to repair or purchase the corresponding goods, and the expenses incurred and losses caused to Party A shall be borne by Party B.

Article 13   Deposit

13.1 To ensure the smooth operation of Party A's supply chain and avoid the arbitrariness of Party B's supply, including refusing to deliver goods, delaying delivery affecting Party A's production and shipment for reasons other than the force majeure clauses stipulated in the "Product Purchase Contract", or delivering goods in advance without prior notice; or unnecessary losses caused to Party A due to quality problems of the parts, raw materials, etc. supplied by Party B. Now, both parties agree that Party B shall pay Party A a deposit of RMB 100,000 (in capital letters: ONE HUNDRED THOUSAND) when signing the contract with Party A as a guarantee for supplying goods to Party A.

13.2 Once Party A and Party B terminate their cooperation, after both parties have confirmed and cleared all outstanding accounts and cooperation matters, Party A shall return the deposit paid by Party B within 30 working days of the confirmation of the effective termination agreement. The deposit paid by Party B to Party A is an interest-free amount for the entire period.

13.3 If Party B fails to supply goods to Party A or the goods do not meet Party A's technical drawing requirements after paying the deposit, Party A has the right to not return the deposit paid by Party B.

Article 14   Intellectual Property Rights and Trade Secrets

14.1 Party B guarantees that Party A is exempt from lawsuits, arbitrations, or any claims from third parties for intellectual property rights (including but not limited to patent rights, trademark rights, copyrights, and non-patent technologies) when using all or part of the products. If the above events occur, Party B shall be responsible for handling them and bear all the resulting costs.

14.2 Any personnel involved in this project by either party shall keep confidential the other party's trade secrets and technical secrets learned through the performance of this contract, including but not limited to equipment technical parameters, configuration standards, equipment prices, and equipment specifications. Without the written consent of one party, the other party shall not disclose any information learned during the cooperation to a third party. Otherwise, it shall pay the party that has fulfilled its obligations a penalty of 30% of the value of the goods. If the amount of this penalty is insufficient to compensate the other party for the resulting losses, it shall also continue to compensate for the relevant losses.

Article 15   Breach of Contract and Contract Termination

15.1 Party B shall deliver the products as agreed in the contract. If the delivery is overdue, Party B shall pay Party A a penalty of 0.3% of the contract price for each day of overdue delivery. If the delivery is still not completed after more than 15 days overdue, Party A has the right to unilaterally terminate this contract, and Party B shall pay Party A a penalty of 10% of the contract price. If the penalty is insufficient to compensate Party A for the resulting losses, Party B shall also compensate Party A for the losses.

15.2 If the variety, specifications, quality, and brand of the products delivered by Party B do not meet the contract stipulations, if Party A agrees to use them, both parties shall renegotiate the price in writing based on the quality; if Party A disagrees or cannot use them, Party B shall be responsible for replacement, repair, or return as required by Party A, and bear the actual expenses paid for repair, replacement, or return. If Party B cannot repair or replace the products, it shall be treated as failure to deliver the goods. If Party A has already paid the advance payment, Party B shall return the full amount to Party A's account within seven working days of Party A's expression of disagreement or inability to use the products, and Party A has the right to terminate the contract and demand that Party B pay Party A a penalty of 30% of the value of the undelivered products.

15.3 If Party B fails to deliver the products in the quantity stipulated in the contract, Party A shall have the right to request Party B to make up for the shortfall; if Party A does not need the products, it may return them. Party B shall bear all losses incurred due to the return of goods.

15.4 If any personal injury or property damage to a third party is caused by the quality of the goods provided by Party B, Party B shall bear the relevant compensation liability, and Party A shall not be held responsible. If the quality of the goods delivered by Party B affects Party A's production schedule or causes quality, safety, or environmental accidents to Party A, Party B shall bear the corresponding compensation liability.

15.5 Party B shall not subcontract or assign any work under this contract to any third party without the written consent of Party A; otherwise, Party A shall have the right to terminate the contract and demand that Party B pay a penalty of 30% of the total contract amount.

15.6 Party A has the right to terminate the contract unilaterally based on its own production and operation conditions, combined with changes in product demand and product prices, if Party A and Party B cannot reach a consensus. Party B shall return all payments already made by Party A (including but not limited to performance bonds and advance payments).

15.7 If Party B refuses to perform the contract due to its own reasons, Party A has the right to terminate the contract and demand that Party B pay a penalty of 30% of the total contract amount.

Article Sixteen   Environment, Occupational Health and Safety

16.1 Party B shall ensure that the materials and manufacturing processes used in the production of the products comply with national standards and that the construction site complies with national laws and policies.

16.2 If Party A's inspectors need to conduct inspections at Party B's manufacturing site, Party B is responsible for providing Party A's inspectors with a safe working environment and informing them of potential hazards.

16.3 When Party B's staff provide services at Party A's construction site, they shall comply with Party A's construction site "Safety/Environmental Management Regulations" and follow the instructions of Party A's construction site safety engineer.

16.4 Party B shall ensure transportation safety, prevent accidents, and reduce or minimize personal injury and resource waste.

16.5 The packaging materials used by Party B for packaging goods shall be environmentally friendly packaging materials.

16.6 When Party B is responsible for goods transportation, it shall take practical measures to ensure that the transportation process complies with national laws and regulations, and ensure that it does not have an adverse impact on the environment along the route and Party A's construction site. Party B shall be responsible for the recycling of packaging materials. Party B shall bear the economic losses caused by Party B's negligence that has an adverse impact on the environment along the route and Party A's construction site.

16.7 When Party A determines that Party B is an important stakeholder related to safety and environmental protection, Party A shall sign a safety and environmental protection agreement with Party B, clarifying the safety and environmental protection responsibilities and obligations of both parties, and Party B shall cooperate unconditionally in signing the agreement.

Article Seventeen   Force Majeure and Dispute Resolution

If either party to the product purchase and sale contract is unable to perform the contract due to force majeure, it shall promptly notify the other party of the reasons for its inability to perform or fully perform the contract. After obtaining relevant proof, it is permitted to postpone performance, partially perform, or not perform the contract, and may be partially or wholly exempted from liability for breach of contract depending on the circumstances.

For any disputes arising from the signing or performance of this contract, both parties shall first resolve them through consultation. If consultation fails,   Party A   either party may file a lawsuit with the people's court of its location.

Article Eighteen   Integrity Clause

18.1 To strengthen fair competition, increase transparency in the contract performance process, and safeguard the common interests of both parties, it is strictly prohibited for Party B to provide Party A personnel with cash or physical rebates, free services, etc., in any way. Once verified, Party A shall have the right to unilaterally terminate this contract, and Party A reserves the right to claim corresponding compensation from Party B for any losses suffered by Party A (including direct losses and reasonably expected indirect losses).

18.2 Party B promises to strengthen the integrity education of its employees. If Party A personnel actively and directly or indirectly imply a request for the benefits prohibited in Article 18.1, Party B may report it to Party A's disciplinary inspection department. Party A will keep the reporter's name confidential. If the evidence is conclusive and the situation is true, Party A will seriously deal with the relevant personnel or supervisors according to the company's relevant reward and punishment measures.

Article Nineteen   Supplementary Provisions

19.1 If there are any matters not covered in this contract during its performance, both parties may negotiate and sign a supplementary agreement, which shall be an annex to this contract and shall have the same legal effect as this contract.

19.2 This contract is made in triplicate, with Party A holding two copies and Party B holding one copy, all of which have the same legal effect.

19.3 This contract shall come into effect from the date of signing and sealing by both parties.

19.4 The validity period of this contract is from xx month xx, 2024 to xx month xx, 2029, or the end of the product service period or warranty period, whichever is later, and this contract shall automatically expire.

19.5 Party B is fully aware of the rights, obligations, liabilities for breach of contract, and penalties stipulated in this contract for Party B, and voluntarily agrees to abide by the terms of this contract.

19.6 In case of breach of contract by Party B, in addition to the liabilities for breach of contract stipulated in this contract, Party B shall also bear the relevant expenses incurred by Party A in protecting its own rights and interests. These expenses include, but are not limited to, possible lawyer fees, litigation fees, travel expenses, and communication expenses.

  (No further text on this page, this is the contract signature page)

Party A: Chongqing Changzheng Heavy Industry Co., Ltd.   (Seal)          Party B: (Seal)

Address: Funiuxi, Dadukou District, Chongqing                       Address:

Legal representative or authorized agent (signature):                  Legal representative or authorized agent (signature):

Contact number: 023-62733238 Contact number:                  

Signing date: 2025   Month    Day                       Signing date: 2025   Month    Day

7. Contact Information

7.1 Contact person and telephone number

7.2 Purchasing Department Contact Address: Chongqing Changzheng Heavy Industry Co., Ltd., Funvxi, Dadukou District, Chongqing Postcode: 400083

7.3 Quotation and Submission of Quotation Documents

7.3.1 Sealed Written Documents: Collected by the contact person of the purchasing department;

7.3.2 E-commerce Platform Quotation: Suppliers log in to the China Shipbuilding Procurement Management E-commerce Platform, website www.ebuy.csemc.com, register according to the platform requirements, and quote or upload relevant attachments according to the e-commerce platform rules.

7.4 Please continue to pay attention to our company's website www.cssccq.com. Our company will promptly publish clarification and modification information of this procurement project on this website. This website also publishes other procurement needs information of our company.

Note: Clauses marked with a "*" symbol are substantive requirements and conditions that are not allowed to deviate. Response documents that do not meet the clauses marked with "*" will be rejected by our company.

Chongqing Changzheng Heavy Industry Co., Ltd.

January 2, 2025