On 23 January 2018, Sanjiang Chemical and Sanjiang New Material entered into the Renewed Supply Agreements with Jiahua Energy Chemical Co for a period of approximately three years from 23 January 2018 to 31 December 2020 to regulate the supplier and customer relationships of the transactions contemplated under the Renewed Supply Agreements. Jiahua Energy Chemical Co agreed to supply low pressure steam (0.8Mpa and 1.3Mpa) and medium pressure steam (3.4Mpa) to Sanjiang Chemical on an ongoing basis. Jiahua Energy Chemical Co shall set the prices regarding low pressure steam products (0.8Mpa) in accordance with the quarterly released notices regarding price recommendation issued by Jiaxing Economy Development Bureau, which is operated by Jiaxing Commodities Price Bureau. Jiahua Energy Chemical Co would follow the Bureau Price when setting its own prices to its customers, including the Group and independent third parties. The finance department of the Group will obtain the Bureau Price and the monthly average price of low pressure steam stipulated by Jiaxing Commodities Price Bureau and compare the same with the low pressure steam price that Jiahua Energy Chemical Co charges Sanjiang Chemical. By comparing the Recommended Price and the Bureau Price with low pressure steam prices that Jiahua Energy Chemical Co charges Sanjiang Chemical, the Group ensures the purchase price being offered to the Group by Jiahua Energy Chemical Co should not be less favourable than the price offered to independent third parties by Jiahua Energy Chemical Co.