In order to respond to the requirements of the Group's meeting and achieve cost reduction and efficiency increase, in accordance with the current national laws and regulations, CK Steel Pipe implemented on-site bidding mode for spare parts procurement in the conference room on 29 May 2020.

The subject matter of the on-site bidding was polyester sling for steel pipe loading and unloading. Ltd., Jiangsu Zhongtai Sling Co., Ltd. and Yaguang Rigging Co., Ltd. The participants were Fan Jiangang, General Manager of Yangtze Steel Pipe, Xu Jianhua, Executive Vice President and Ding Huqun, Procurement Manager. The spare parts procurement used to adopt the telephone negotiation mode, although the process is simple, but because it cannot communicate in person, the competitive atmosphere between the bidders is not strong, there are certain defects. This mode adheres to the principles of "fairness, openness, impartiality and honesty and credit", and the competition between bidders is strong, which makes it easier for the bidders to obtain a lower purchase price.

Now the spare parts of the annual procurement volume of ≥ 500,000 yuan of Yangtze Steel Pipe can adopt the on-site open bidding mode, through quotation, bargaining, re-quotation, multiple rounds of bidding to the low price that the bidders can bear in their hearts, prompting the winning price of spare parts to drop, combined with the bidders' production capacity, corporate reputation, preferential deferred payment terms, to select the excellent supplier cooperation. It can avoid the production cost is not transparent part of the spare parts Mon suffer high price to pick enough, so as to achieve the company to reduce costs and increase efficiency purposes.

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