Common use of Pricing Policy Clause in Contracts

Pricing Policy. During the term of the 2021 UCS Property Management Services Master Agreement, the Group shall from time to time enter into the Specific Agreements with the Ultimate Controlling Shareholders and their associates (excluding CIFI Group) for the provision of relevant property management services in accordance with the terms of the 2021 UCS Property Management Services Master Agreement. The Group adopts the following pricing policy to ensure that the terms offered to the Ultimate Controlling Shareholders and their associates (excluding CIFI Group) under the 2021 UCS Property Management Services Master Agreement are on normal commercial terms and shall not be less favourable to the Group than terms offered by the Group to Independent Third Parties as follows: (a) for all property management services except for those for unsold properties, car parking lots and the properties owned by the Ultimate Controlling Shareholders and their associates (excluding CIFI Group) under the 2021 UCS Property Management Services Master Agreement, the Group would charge the Ultimate Controlling Shareholders and their associates (excluding CIFI Group) at prices based on a standard price list prepared by the Group which is applicable to the Ultimate Controlling Shareholders and their associates (excluding CIFI Group) as well as Independent Third Parties after taking into account: (i) the Group’s other contemporaneous transactions of similar services (in terms of the scope and requirement of services, the location and condition of properties, and level of difficulty of management, etc.) carried out with Independent Third Parties; and (ii) prices charged by other property management companies in the PRC of comparable transactions with independent third parties (if available). The standard price list shall be compiled based on the above by obtaining at least three transactions for reference by relevant operating departments, and reviewed and approved semi-annually by the heads of relevant operating departments, the chief financial officer and president of the Group to ensure the price list maintained by the Group reflecting the prevailing market conditions. (b) for property management services for unsold properties, car parking lots and the properties owned by the Ultimate Controlling Shareholders and their associates (excluding CIFI Group), before determining the price for the provision of services, the Group would make reference to: (i) the Group’s other contemporaneous transactions of similar services (in terms of the scope and requirement of services, the location and condition of properties, and level of difficulty of management, etc.) carried out with Independent Third Parties; (ii) prices charged by other property management companies in the PRC of comparable transactions with independent third parties; and (iii) guidance prices issued by the government in this connection (if any) depending on the location of the property project. After the relevant information is collected, the marketing department of the Group would determine a price to be offered to the Ultimate Controlling Shareholders and their associates (excluding CIFI Group) which would not be less than the prices offered to Independent Third Parties by the Group. Relevant information together with the Specific Agreement will be submitted to the heads of the marketing department and the accounting department of the Group, and president of the Group for approval.

Pricing Policy. During The Charter and Related Fees shall be determined by the term parties at the time of placing the order with reference to 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 2021 UCS Property Management Services 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 AgreementCharter Agreement shall settle by ways of telegraphic transfer the charter fee on a weekly basis, and the other related fees (including fuel surcharges) within five working days after the issuance of the relevant electronic bill. Under the pricing policy of the Group, the Group will obtain quotation from at least one (or such other number as shall be determined by the majority of the independent non-executive Directors from time to time) Independent Third Party freight services providers and compare it with the terms offered by the relevant YTO Express Members for the provision of air freight charter services. The Group from time to time enter into will assess the Specific Agreements 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 Ultimate Controlling Shareholders and their associates (excluding CIFI Group) for the provision of relevant property management services in accordance with the terms of the 2021 UCS Property Management Services Master Agreement. The Group adopts the following pricing policy to ensure that the terms offered to the Ultimate Controlling Shareholders and their associates (excluding CIFI Group) under the 2021 UCS Property Management Services Master Agreement are on normal commercial terms and shall not be less favourable to the Group than terms offered by the Group to Independent Third Parties 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 follows: (a) such would be the only quotation available in the market at the material time. Under the prerequisites mentioned above, where more than one air freight charter services provider is available for all property management services except for those for unsold properties, car parking lots and the properties owned by the Ultimate Controlling Shareholders and their associates (excluding CIFI Group) under the 2021 UCS Property Management Services Master Agreementa particular route, the Group would charge the Ultimate Controlling Shareholders and their associates (excluding CIFI Group) will generally obtain quotation from at prices based on a standard price list prepared by the Group which is applicable least two to the Ultimate Controlling Shareholders and their associates (excluding CIFI Group) as well as three Independent Third Parties after taking into account: Party freight services providers for comparison. The Group will also compare the track record and reputation of such Independent Third Party freight services provider against the relevant YTO Express Members’ track record and reputation. The Charter and Related Fees shall be determined by using the lower of (i) the Group’s other contemporaneous transactions of similar services (in terms of Charter and Related Fees offered by the scope relevant YTO Express Members; and requirement of services, the location and condition of properties, and level of difficulty of management, etc.) carried out with Independent Third Parties; and (ii) prices charged by other property management companies in the PRC quotation from Independent Third Party freight services providers of comparable transactions with independent third parties (if available). The standard price list shall be compiled based on the above by obtaining at least three transactions for reference by relevant operating departments, and reviewed and approved semi-annually by the heads of relevant operating departments, the chief financial officer and president of the Group to ensure the price list maintained by the Group reflecting the prevailing market conditionsservices. (b) for property management services for unsold properties, car parking lots and the properties owned by the Ultimate Controlling Shareholders and their associates (excluding CIFI Group), before determining the price for the provision of services, the Group would make reference to: (i) the Group’s other contemporaneous transactions of similar services (in terms of the scope and requirement of services, the location and condition of properties, and level of difficulty of management, etc.) carried out with Independent Third Parties; (ii) prices charged by other property management companies in the PRC of comparable transactions with independent third parties; and (iii) guidance prices issued by the government in this connection (if any) depending on the location of the property project. After the relevant information is collected, the marketing department of the Group would determine a price to be offered to the Ultimate Controlling Shareholders and their associates (excluding CIFI Group) which would not be less than the prices offered to Independent Third Parties by the Group. Relevant information together with the Specific Agreement will be submitted to the heads of the marketing department and the accounting department of the Group, and president of the Group for approval.

Pricing Policy. During the term of the 2021 UCS Property Management Services Master Agreement, the Group shall from time to time enter into the Specific Agreements with the Ultimate Controlling Shareholders The pricing and their associates (excluding CIFI Group) for the provision of relevant property management services in accordance with the payment terms of the 2021 UCS Property Management Services Master Agreement. The Group adopts the following pricing policy to ensure that the terms offered to the Ultimate Controlling Shareholders and their associates (excluding CIFI Group) specific transactions under the 2021 UCS Property Management Services Master Strategic Cooperation Framework Agreement are shall be determined by arm’s length negotiations between Honghua Investment and its subsidiaries and ASIFL, and be determined based on normal commercial terms with reference to: (i) the prices of the same or similar equipment and products provided by Honghua Investment and its subsidiaries to Independent Third Parties over the same period for orders with comparable quantity and quality; (ii) where there are no such comparable orders, the prevailing market prices that are fair and reasonable for the same or similar equipment and products; and (iii) where there are neither comparable orders nor prevailing market prices mentioned above, the historical prices provided by Honghua Investment and its subsidiaries to Independent Third Parties for the same or similar equipment and products in the previous year. Honghua Investment and its subsidiaries will comply with its relevant internal pricing policies in the negotiation with ASIFL. In any event, the prices offered by Honghua Investment and its subsidiaries to ASIFL under the Strategic Cooperation Framework Agreement shall not be no less favourable to the Group than the prices offered by Honghua Investment and its subsidiaries to Independent Third Parties. Honghua Investment and its subsidiaries will take the following measures to reach this end: (i) in the pre-sales quotation stage, the sales staff will refer to all relevant contracts signed by Honghua Investment and its subsidiaries with Independent Third Parties in the previous year to determine the quotations to ASIFL; (ii) during the contract review process, the finance department, technology department, legal department and related business departments will strictly review the pricing to ensure compliance with the pricing policy of the Strategic Cooperation Framework Agreement; and (iii) the prices and payment terms offered to ASIFL by Honghua Investment and its subsidiaries will be monitored on regular basis through quarterly assessments of the average prices and payment terms offered by the Group Honghua Investment and its subsidiaries to Independent Third Parties as follows: (a) for all property management services except for those for unsold propertiesunder similar sales terms and conditions, car parking lots and the properties owned market prices of the same or similar equipment and products. The following table sets out the relevant historical amount of the purchase made by ASIFL from Honghua Investment and its subsidiaries during the Ultimate Controlling Shareholders three years ended 31 December 2019 and their associates (excluding CIFI Group) the three months ended 31 March 2020: Unit: RMB10,000 For the year ended 31 December For the year ended31 December For the year ended 31 December For the three months ended 31 March Equipment and products 29,922 60,000 0 0 Annual Caps Proposed annual caps for the three years ending 31 December 2022 Unit: RMB10,000 For the year ending 31 December 2020 For the year ending 31 December 2021 For the year ending 31 December 2022 Equipment and products 40,000 30,000 30,000 The annual caps under the 2021 UCS Property Management Services Master Agreement, the Group would charge the Ultimate Controlling Shareholders Strategic Cooperation Framework Agreement were determined by arm’s length negotiations between Honghua Investment and their associates (excluding CIFI Group) at prices ASIFL based on a standard price list prepared by the Group which is applicable to amount of historical transactions, and the Ultimate Controlling Shareholders Group’s operation and their associates (excluding CIFI Group) as well as Independent Third Parties after taking into account: business needs, analysis of market demand, and business opportunities under discussion and project progress, which, in particular, include: (i) the Group’s other contemporaneous transactions of similar services (in terms an overall analysis of the scope demand for drilling and requirement exploiting equipment in the oil and gas industry under the current international oil price trends, domestic and international economic environment and the guidance of services, the location and condition of properties, and level of difficulty of management, etc.) carried out with Independent Third Partiesdomestic shale gas development policies; and (ii) prices charged by other property management companies in the PRC of comparable transactions with independent third parties (if available). The standard price list shall be compiled overall planning ideas and implementation plan based on the above by obtaining at least three transactions for reference by relevant operating departments, current and reviewed future principal business development of the Group; and approved semi-annually by (iii) the heads of relevant operating departments, the chief financial officer business development status and president opportunities under discussion of the Group and ASIFL and ASIFL’s demands, etc. In the year ended 31 December 2017, ASIFL purchased equipment and products of RMB299.22 million from Honghua Investment and its subsidiaries. In the year ended 31 December 2018, ASIFL purchased equipment and products of RMB600 million from Honghua Investment and its subsidiaries. In the year ended 31 December 2019, considering its investment in the oil and gas industry, capital planning, rhythm control and other factors, ASIFL did not launch oil and gas industry-related projects and did not purchase equipment or products from Honghua Investment and its subsidiaries. Commencing from the year ending 31 December 2020, ASIFL will resume its purchase from Honghua Investment and its subsidiaries. The proposed annual cap for the year ending 31 December 2020 is based on the equipment needs of the end users of ASIFL with which ASIFL is under current or potential negotiations, Honghua Investment’s and its subsidiaries’ negotiation with ASIFL, ASIFL’s business plan with regard to ensure the price list maintained by the Group reflecting the prevailing market conditions. (b) for property management services for unsold propertiesoil and gas industry, car parking lots and the properties owned amount of intentional transactions between Honghua Investment and its subsidiaries as the sellers and ASIFL as the purchaser, being approximately RMB382.5 million. In the two years ending 31 December 2022, taking into account the favourable national policy for shale gas development, the market demands for drilling and exploiting equipment in the oil and gas industry are expected to be relatively stable. Due to the nature of its business and to control the potential risks arising from concentration on oil and gas industry, ASIFL plans to reduce the amount of its purchase from Honghua Investment and its subsidiaries in the two years ending 31 December 2022 by the Ultimate Controlling Shareholders and their associates (excluding CIFI Group), before determining the price approximately 25%. The proposed annual caps for the provision of services, the Group would make reference to: (i) the Group’s other contemporaneous transactions of similar services (in terms of the scope and requirement of services, the location and condition of properties, and level of difficulty of management, etctwo years ending 31 December 2022 were determined accordingly.) carried out with Independent Third Parties; (ii) prices charged by other property management companies in the PRC of comparable transactions with independent third parties; and (iii) guidance prices issued by the government in this connection (if any) depending on the location of the property project. After the relevant information is collected, the marketing department of the Group would determine a price to be offered to the Ultimate Controlling Shareholders and their associates (excluding CIFI Group) which would not be less than the prices offered to Independent Third Parties by the Group. Relevant information together with the Specific Agreement will be submitted to the heads of the marketing department and the accounting department of the Group, and president of the Group for approval.