Common use of INTERNAL CONTROL PROCEDURES Clause in Contracts

INTERNAL CONTROL PROCEDURES. The Company has adopted the following internal control measures to ensure that the Continuing Connected Transactions are in accordance with the respective pricing policies and the respective terms of the Industrial Waste Treatment Agreement and the Industrial Goods Procurement Agreement, and in compliance with the Listing Rules: (i) the finance department of the Company shall obtain and monitor all the quotations and/ or pricing records as reference prices of the Industrial Waste Treatment Agreement and the Industrial Goods Procurement Agreement to ensure that the prices of the Industrial Waste Treatment Services offered by the Weiqiao Xinxing Industrial Group to the Group are not higher than the prices offered by other independent third parties in proximity to the Weiqiao Xinxing Industrial Group to the Group for providing the same or comparable types of services, and to ensure that the prices of industrial goods supplied by the Weiqiao Xinxing Industrial Group to the Group are not higher than the prices at which such industrial goods are supplied by the Weiqiao Xinxing Industrial Group to other independent third parties in the PRC (in the case of electrolyte powder), or supplied by other independent third parties in proximity to the Weiqiao Xinxing Industrial Group (in the case of carbon powder); (ii) the finance department of the Company shall monitor and ensure that the Continuing Connected Transactions are conducted in accordance with the terms of the relevant agreements and the respective annual caps for the Continuing Connected Transactions are not exceeded; (iii) the Board will continue to periodically review the Company’s internal control systems and their effectiveness; and (iv) the independent non-executive Directors shall, and the Company shall engage its external auditors to, conduct annual review of the Continuing Connected Transactions and the respective annual caps for the Continuing Connected Transactions in accordance with the requirements of the Listing Rules.

INTERNAL CONTROL PROCEDURES. The Company has adopted the following internal control measures to ensure that the Continuing Connected Transactions are in accordance with the respective pricing policies and the respective terms of the Renewed Industrial Waste Treatment Service Agreement and the Industrial Goods Procurement Renewed Production Water Supply Agreement, and in compliance with the Listing Rules: (i) the finance department of the Company shall obtain and monitor all the quotations and/ or and/or pricing records as reference prices price of the Renewed Industrial Waste Treatment Service Agreement and the Industrial Goods Procurement Renewed Production Water Supply Agreement to ensure that the prices of the Industrial Waste Treatment Services industrial waste collection, transport, storage and disposal services offered by the Weiqiao Xinxing Industrial Group Beihai Solid Waste to the Group are not higher than the prices offered by other independent third parties in proximity to the Weiqiao Xinxing Industrial Group Beihai Solid Waste to the Group for providing the same or comparable types of services, and to ensure that the prices of industrial goods production water supplied by the Weiqiao Xinxing Industrial ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ Group to the Group ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ are not higher than the prices at which such industrial goods are supplied by the Weiqiao Xinxing Industrial Group to other independent third parties in the PRC (in the case of electrolyte powder), or production water is supplied by other independent third parties in proximity Zouping City and Weiqiao Town to the Weiqiao Xinxing Industrial Group (in the case of carbon powder)Group; (ii) the finance department of the Company shall monitor and ensure that the Continuing Connected Transactions are conducted in accordance with the terms of the relevant agreements and the respective annual caps for the Continuing Connected Transactions are not exceeded; (iii) the Board will continue to periodically review the Company’s internal control systems and their effectiveness; and (iv) the independent non-executive Directors shall, and the Company shall engage its external auditors to, conduct annual review of the Continuing Connected Transactions and the respective annual caps for the Continuing Connected Transactions in accordance with the requirements of the Listing Rules.

INTERNAL CONTROL PROCEDURES. The Company has adopted the following internal control measures to ensure that the Continuing Connected Transactions are in accordance with the respective pricing policies and the respective terms of the Industrial Waste Treatment Service Agreement and the Industrial Goods Procurement Production Water Supply Agreement, and in compliance with the Listing Rules: (i) the finance department of the Company shall obtain and monitor all the quotations and/ or and/or pricing records as reference prices price of the Industrial Waste Treatment Agreement and the Industrial Goods Procurement Agreement Continuing Connected Transactions to ensure that the prices of the Industrial Waste Treatment Services industrial waste collection, transport, storage and disposal services offered by the Weiqiao Xinxing Industrial Group Beihai Solid Waste to the Group are not higher than the prices offered by other independent third parties in proximity to the Weiqiao Xinxing Industrial Group PRC to the Group for providing the same or comparable types of services, and to ensure that the prices of industrial goods production water supplied by the Weiqiao Xinxing Industrial Chuangye Group to the Group ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ are not higher than the prices at which such industrial goods are supplied by the Weiqiao Xinxing Industrial Group to other independent third parties in the PRC (in the case of electrolyte powder), or water is supplied by other independent third parties in proximity Zouping City and Weiqiao Town to the Weiqiao Xinxing Industrial Group (in the case of carbon powder)Group; (ii) the finance department of the Company shall monitor and ensure that the Continuing Connected Transactions are conducted in accordance with the terms of the relevant agreements Industrial Waste Service Agreement and the respective Production Water Supply Agreement and the annual caps for the Continuing Connected Transactions are not exceeded; (iii) the Board will continue to periodically review the Company’s internal control systems and their effectiveness; and (iv) the independent non-executive Directors shall, and the Company shall engage its external auditors to, conduct annual review of the Continuing Connected Transactions and the respective annual caps for the Continuing Connected Transactions in accordance with the requirements of the Listing Rules.

INTERNAL CONTROL PROCEDURES. The Company has adopted the following internal control measures to ensure that the Continuing Connected Transactions are in accordance with the respective pricing policies and the respective terms of the Industrial Waste Treatment Service Agreement and the Industrial Goods Procurement Production Water Supply Agreement, and in compliance with the Listing Rules: (i) the finance department of the Company shall obtain and monitor all the quotations and/ or and/or pricing records as reference prices price of the Industrial Waste Treatment Service Agreement and the Industrial Goods Procurement Production Water Supply Agreement to ensure that the prices of the Industrial Waste Treatment Services industrial waste collection, transport, storage and disposal services offered by the Weiqiao Xinxing Industrial Group Beihai Solid Waste to the Group are not higher than the prices offered by other independent third parties in proximity to the Weiqiao Xinxing Industrial Group PRC to the Group for providing the same or comparable types of services, and to ensure that the prices of industrial goods production water supplied by the Weiqiao Xinxing Industrial ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ Group to the Group Shandong Hongqiao are not higher than the prices at which such industrial goods are supplied by the Weiqiao Xinxing Industrial Group to other independent third parties in the PRC (in the case of electrolyte powder), or water is supplied by other independent third parties in proximity Zouping City and Weiqiao Town to the Weiqiao Xinxing Industrial Group (in the case of carbon powder)Group; (ii) the finance department of the Company shall monitor and ensure that the Continuing Connected Transactions are conducted in accordance with the terms of the relevant agreements and the respective annual caps for the Continuing Connected Transactions are not exceeded; (iii) the Board will continue to periodically review the Company’s internal control systems and their effectiveness; and (iv) the independent non-executive Directors shall, and the Company shall engage its external auditors to, conduct annual review of the Continuing Connected Transactions and the respective annual caps for the Continuing Connected Transactions in accordance with the requirements of the Listing Rules.