Chapter 1 General Provisions

Article 1 Rule Formulation

These rules are formulated in accordance with the Auction Law of the People's Republic of China and other relevant laws of the People's Republic of China, as well as the company's articles of association, with reference to common international practices.

Article 2 Definition of Terms

In each clause of these rules, the following terms have the following meanings:

(1) "This Company" refers to Zhejiang Derong Auction Co., Ltd.

(2) "This Company's Registered Address" refers to No. 499, Lianfeng Middle Road, Oulanqiao Village, Gaoqiao Town, Haishu District, Ningbo City, People's Republic of China, A2044-A2046, and any future changes to the business registration address.

(3) "Consignor" refers to a natural person, legal person, or other organization that entrusts this company to auction the auction items within the scope stipulated in these rules. In these rules, unless otherwise stated or as required by the specific meaning of the text, the consignor includes the consignor's agent.

(4) "Bidder" refers to a natural person, legal person, or other organization that participates in the auction activities held by this company, registers with this company and completes the necessary procedures, and has full civil capacity according to the laws of the People's Republic of China to participate in bidding for auction items. Where the law stipulates conditions or qualifications for the sale of auction items or for bidders, bidders must meet the stipulated conditions or qualifications. In these rules, unless otherwise stated or as required by the specific meaning of the text, the bidder includes the bidder's agent.

(5) "Purchaser" refers to the bidder who obtains the auction item with the highest bid in the auction activities held by this company. However, this excludes the situation where a state-owned cultural relic collection unit designated by the cultural relic administrative department successfully exercises the state's right of preemptive purchase within the time limit stipulated by relevant laws and this company; in this case, the state-owned cultural relic collection unit is the purchaser.

(6) "Auction Item" refers to items owned by the consignor or that can be disposed of by law and entrusted to this company for auction.

(7) "Auction Day" refers to the day officially announced by this company for the commencement of auction transactions in a particular auction activity. If the announced start date is inconsistent with the actual date of the auction activity, the actual start date of the auction activity shall prevail.

(8) "Auction Closing Date" refers to the date on which the auctioneer confirms the transaction of any auction item by gavel or other public means of acceptance in the auction activities held by this company.

(9) "Hammer Price" refers to the price at which the auctioneer determines the sale of the auction item to the purchaser by gavel or other public means of acceptance.

(10) "Proceeds of Sale" refers to the net amount payable to the consignor, which is the balance remaining after deducting the commission, taxes, various fees, and other payments due to this company from the hammer price calculated at the rate.

(11) "Purchase Price" refers to the total amount payable by the purchaser for the purchase of the auction item, including the hammer price, all commissions, and various fees payable by the purchaser.

(12) "Various Fees" refers to the fees charged by this company for insurance of the auction items, production of auction item catalogs and other forms of publicity materials, packaging, transportation, storage, custody, remittances, etc., as well as other fees charged in accordance with relevant laws or these rules.

(13) "Reserve Price" refers to the minimum selling price of the auction item determined by the consignor and this company in the auction consignment contract, or determined by the consignor authorizing this company.

(14) "Reference Price" refers to the estimated selling price of the auction item indicated in the auction item catalog or other descriptive text. The reference price is estimated earlier than the auction date, is not a confirmed selling price, and is not legally binding.

(15) "Storage Fee" refers to the storage fee payable to this company by the consignor and purchaser in accordance with these rules. The current charging standard is 0.003% of the reserve price (or the agreed insurance amount if there is no reserve price) per day.

(16) "Online Platform" refers to the online platform used by this company to hold online auction activities and provide synchronous auction services, including but not limited to this company's official website http://derongauction.cx01.com/ and APP platforms. The auctioneer can preside over the auction online on the online platform, or can preside over the auction through the preset auction procedures, text, language, or animation on the online platform.

(17) "Online Account" refers to the independent online account of the bidder generated by the username and password set by the bidder after registering on the online platform of this company.

(18) "Law" refers to the laws, administrative regulations, departmental rules and regulations, and normative documents formulated and amended from time to time by the competent authorities of the People's Republic of China.

Article 3 Scope of Application

According to the laws of the People's Republic of China, this company has legal qualifications as an auction operator. This company organizes and conducts auction activities within the scope permitted by the laws and policies of the People's Republic of China. All consignors, bidders, purchasers, and other relevant parties participating in the auction activities of cultural relics, artworks, and other collectibles organized and conducted by this company are deemed to agree to and shall abide by the contents of these rules.

This company has the right to decide to provide synchronous auction services for specific auction sessions or auction items. The consignor acknowledges the provisions of this company's Synchronous Auction Rules. Any bidder participating in the offline auction activities held by this company through this company's online platform must also abide by this company's current valid Synchronous Auction Rules.

Article 4 Special Notice

All consignors, bidders, and purchasers participating in the auction activities of this company should carefully read and abide by these rules and be responsible for their own actions in participating in the auction activities of this company. Any losses or liabilities arising from failure to carefully read these rules shall be borne by the actor. Due to weather or other reasons, this company has the right to postpone or cancel the auction at its own discretion without making any compensation to the bidders. In the auction activities held by this company, when the highest bid of the bidder is confirmed by the auctioneer's gavel or other public means of acceptance, it means that the bidder becomes the purchaser of the auction item. However, this excludes the situation where a state-owned cultural relic collection unit designated by the cultural relic administrative department successfully exercises the state's right of preemptive purchase within the time limit stipulated by relevant laws and this company; in this case, the state-owned cultural relic collection unit is the purchaser.

This company, the consignor, and the purchaser shall all acknowledge the fact that the auction item has been sold and transacted, and shall enjoy the rights and perform the obligations stipulated by law and these rules. Any party that fails to perform its obligations shall bear the corresponding legal liabilities.

Article 5 Defect Warranty

Our company specifically declares that it cannot guarantee the authenticity, quality, and value of the auction items and assumes no liability for defects in the auction items. All auction items are sold as is.

Bidders should personally inspect the original auction items and bear the legal responsibility for their bidding behavior. Any bidder participating in the auction organized by our company shall be deemed to have conducted a comprehensive inspection and evaluation of the authenticity, quality, and value of the auction items they bid on, and to be satisfied with the current status of the auction items in terms of authenticity, quality, and value, and to have a full understanding of and willingness to accept any defects (if any) in the auction items. The bidder's participation in the bidding indicates their willingness to assume any risks that may arise and their waiver of the right to object to the authenticity, quality, or value of the auction items.

Chapter Two Provisions Concerning the Consignor

Article Six Consignment Procedure

When a consignor entrusts our company to auction their items, if the consignor is a natural person, they should present a valid ID card or passport or other valid ID document recognized by our company and sign a consignment auction contract with our company; if the consignor is a legal person or other organization, they should present valid registration documents, the legal representative's identity certificate, or a legal power of attorney, and sign a consignment auction contract with our company. If the consignor signs the consignment auction contract online, the consignor should fill in the identity information as required and upload the identity certificate materials recognized by our company.

The consignor shall be responsible for the authenticity of the information and materials provided to our company.

The relevant content of these rules is an important agreement on the rights and obligations between our company and the consignor, and constitutes an important part of the consignment auction contract signed between our company and the consignor. Matters not covered in the consignment auction contract shall be executed in accordance with these rules.

When a consignor entrusts our company to auction their items, they automatically authorize our company to independently exhibit, display, photograph, illustrate, catalog, or create other forms of image products and publicity materials for the items.

Article Seven Consignor's Agent

If the consignor's agent entrusts our company to auction items, they should provide our company with relevant power of attorney documents and provide legal identity certificates for the consignor and the agent, and sign a consignment auction contract with our company. If the consignor and agent are natural persons, they should present a valid ID card or passport or other valid ID document recognized by the government of the People's Republic of China; if they are legal persons or other organizations, they should present valid registration documents, the legal representative's identity certificate, or a legal power of attorney.

Our company has the right to verify the above-mentioned entrusted matters in a manner deemed reasonable by our company. Our company's verification of the above-mentioned documents or any other actions or inactions will not reduce, exempt, or affect the responsibilities or obligations of the consignor.

Article Eight Consignor's Guarantee

The consignor irrevocably guarantees to our company and the buyer the following regarding the auction items entrusted to our company for auction:

(1) They have complete ownership or disposal rights to the auction items, and the auction, exhibition, reproduction, online dissemination, and publicity of the auction items will not infringe on the legitimate rights and interests of any third party (including but not limited to ownership, copyright, privacy rights, reputation rights, inheritance rights, etc.), nor will it violate relevant laws and regulations;

(2) To the best of their knowledge, they have made a comprehensive and detailed disclosure and explanation to our company regarding the source and defects of the auction items, and there is no concealment or fabrication;

(3) If they violate the above guarantee, causing the actual owner of the auction items or any third party claiming rights to file a claim or lawsuit, resulting in losses to our company and/or the buyer, the consignor shall bear the relevant legal responsibility, including but not limited to compensating our company and/or the buyer for all losses suffered, and bearing all costs and expenses incurred as a result;

(4) After an insurance accident occurs for the auction items, if there is evidence showing that the auction items do not match the consignor's description, the compensation amount borne by our company and the insurer shall not exceed the actual market price of the auction items before damage as determined by the insurer, and the consignor shall compensate our company for all losses caused by the inconsistent description.

Article Nine Reserve Price

Except for those items that our company explicitly states or indicates have no reserve price, all auction items have a reserve price. The reserve price is determined after consultation between our company and the consignor, or by the consignor authorizing our company to determine it. Once the reserve price is determined by both parties, any changes must be agreed upon in writing in advance. Under no circumstances shall our company be liable for any auction item that fails to be sold below the reserve price at an auction held by our company.

Article Ten Our Company's Decision-Making Power Before the Auction

Our company has full decision-making power over the following matters:

(1) Revise the description of information such as the name of the auction items under the consignment auction contract (including notes, inscriptions, etc.), and make any descriptions and/or evaluations of any auction items through auction item catalogs and/or news media and/or other media;

(2) Whether to seek expert opinions;

(3) The order, position, page size, etc., of the illustrations of auction items in the catalog, the arrangement of catalog compilation, and the charging standards; the method of exhibition/display of auction items; the arrangements for auction items during the exhibition/display process and the standards for expenses to be paid;

(4) Unless otherwise agreed upon between our company and the consignor, our company has full decision-making power over whether an auction item is suitable for auction by our company (i.e., whether it will ultimately be auctioned), as well as the auction location, auction session, auction date, auction conditions, auction method, and bidding method;

(5) Our company may, depending on different auction conditions and methods, announce the conditions and procedures for bidders to obtain bidding numbers before the auction, including but not limited to setting qualification conditions for bidders to obtain bidding numbers.

Article Eleven Auction Items Not Auctioned

After the consignor signs a consignment auction contract with our company and delivers the auction items to our company, if for any reason our company deems that a certain auction item is unsuitable for auction by our company, the consignor shall retrieve the auction item within seven days from the date of receipt of the notice from our company. The consignor shall bear the costs of packaging and handling, and the consignment auction contract between our company and the consignor shall be terminated on the date the consignor retrieves the auction item. If the consignor fails to retrieve the auction item within the aforementioned period, the consignment auction contract between our company and the consignor shall be deemed terminated on the expiry of the aforementioned period. If the consignor still fails to retrieve the auction item within seven days after the termination of the consignment auction contract, the consignor shall pay our company storage fees from the eighth day after the termination of the consignment auction contract, in accordance with the provisions of Article 2, paragraph (15) of these Rules. If the consignor still fails to retrieve the auction item within fifteen days after the termination of the consignment auction contract, our company shall have the right to execute in accordance with the provisions of Article 30 of these Rules.

Article 12 Auction Suspension

If any of the following circumstances occur, our company shall have the right to decide to suspend the auction of any auction item at any time before the actual auction and during the auction:

(1) Our company has objections to the ownership or authenticity of the auction item;

(2) A third party has objections to the ownership or authenticity of the auction item and can provide relevant evidence materials that our company acknowledges, and simultaneously expresses in writing its willingness to bear full legal responsibility for the legal consequences and all losses caused by the suspension of the auction;

(3) Our company has objections to the statements made by the consignor or to the accuracy of the consignor's guarantees as described in Article 8 of these Rules;

(4) There is evidence that the consignor has violated or will violate any provision of these Rules;

(5) The auction item is involved in any judicial procedure of an organ with judicial coercive power (court, procuratorate, public security, etc.) (including, but not limited to, investigation, litigation, preservation, seizure, injunction, detention, freezing, and forced execution);

(6) Any other reasonable reason exists.

If the auction is suspended due to the above circumstances, our company has the right to request the consignor to pay a penalty equivalent to 30% of the reserve price of the auction item (if there is no reserve price, the agreed insurance amount of the auction item) to compensate for our company's actual losses and expected profit losses due to the suspension of the auction.

Article 13 Consignor's Withdrawal of Auction Item

The consignor may withdraw its auction item at any time before the auction by issuing a written notice to our company stating the reasons. However, when withdrawing the auction item, the consignor shall pay our company a penalty equivalent to 30% of the reserve price of the auction item (if there is no reserve price, the agreed insurance amount of the auction item). If the penalty is insufficient to compensate for our company's losses, the consignor shall also compensate our company for all losses caused by its withdrawal of the auction item.

The consignor who withdraws the auction item shall retrieve the auction item within seven days from the date of receipt of the notice from our company. If the auction item is not retrieved within this period, the consignor shall pay our company storage fees from the day after the expiry of this period, in accordance with the provisions of Article 2, paragraph (15) of these Rules. If the consignor still fails to retrieve the auction item within ninety days after the expiry of this period, our company shall have the right to execute in accordance with the provisions of Article 30 of these Rules.

The consignor shall bear any disputes or claims arising from the consignor's withdrawal of the auction item; our company shall not be held responsible.

Article 14 Automatic Insurance Coverage

Unless otherwise instructed in writing by the consignor, upon the signing of the consignment auction contract between the consignor and our company and the delivery of the auction item to our company, all auction items shall be automatically insured under the insurance policy of our company. The insurance amount shall be based on the reserve price determined by our company and the consignor in the consignment auction contract (if there is no reserve price, the agreed insurance amount of the auction item shall be used; if the auction reserve price is adjusted, the adjusted reserve price of the auction item shall be used).

This insurance amount only applies to insurance coverage with the insurance company and claims to the insurance company after an insurance accident occurs. It is not a guarantee or warranty by our company of the value of the auction item, nor does it mean that the auction item can be sold by our company for an amount equal to the insurance amount.

Article 15 Insurance Premium

Unless otherwise agreed between the consignor and our company, the consignor shall pay the insurance premium to our company according to the following rules:

(1) If the auction item is not sold, an insurance premium equivalent to 1% of the reserve price (if there is no reserve price, the agreed insurance amount of the auction item; if the auction reserve price is adjusted, the adjusted reserve price of the auction item) shall be paid;

(2) If the auction item is sold, an insurance premium equivalent to 1% of the hammer price shall be paid.

Article 16 Insurance Period

The insurance period shall commence upon the signing of the consignment auction contract between the consignor and our company and the delivery of the auction item to our company.

If the auction item is sold, the insurance period shall end seven days from the date of the sale or the date the buyer receives the purchased auction item (whichever comes first); if the auction item is not sold or is not auctioned for any reason, the insurance period shall end on the date the consignor receives the auction item or seven days from the date the consignor receives the notice from our company informing it to retrieve the auction item (whichever comes first).

Article 17 Insurance Arranged by Consignor

If the consignor informs our company in writing that it does not need to insure its auction item, the risk shall be borne by the consignor, and the consignor shall bear the following responsibilities at all times (unless otherwise ruled by a court or arbitration institution):

(1) Compensate for any claims or lawsuits made against our company by any other right holder for damage or loss of the auction item;

(2) Bear the responsibility for compensation for all losses and expenses incurred by our company or any right holder due to damage or loss of the auction item for any reason;

(3) Notify any insurer of the auction item of the compensation provisions in this Article.

Article 18 Insurance Exclusions

The following matters are not covered by this company or insurance compensation:

(1) Due to any repair, restoration, refurbishment or similar work process; due to natural wear and tear, deterioration, inherent or latent defects, inherent defects, changes in the material itself (natural deformation), spontaneous combustion, self-heating, oxidation, rust, leakage, rat bites, insect damage, insect bites, insect pests, mildew, fungi, rot, sweat stains, water stains, atmospheric (climate or temperature) changes, humidity or temperature changes, normal water level changes or other gradual reasons; due to air pollution, land pollution, water pollution and other non-radioactive pollution, earthquakes, tsunamis; theft of auction items during fire or explosion; war, war-like acts, hostile acts, military operations, armed conflicts, terrorist activities, rebellion, coup d'état, strikes, riots, civil unrest, administrative or judicial acts, nuclear fission, nuclear fusion, nuclear weapons, nuclear materials, nuclear radiation, radioactive pollution;

(2) Damage or loss of book frames or glass, pouches, pads, brackets, mounting, inserts, shafts or similar accessories for any reason;

(3) Various indirect losses caused by any circumstances.

Article 19 Insurance Compensation

In the event of an incident covered by the insurance purchased by this company for the auction item, it shall be handled in accordance with the relevant insurance laws of the People's Republic of China. This company will then claim compensation from the insurance company, and after obtaining insurance compensation, the remaining amount after deducting this company's expenses (excluding commission) from the insurance compensation will be paid to the consignor as compensation.

Article 20 Bidding Prohibition

The consignor shall not bid on the items consigned to this company for auction, nor shall they entrust others to bid on their behalf. If this provision is violated, the consignor shall bear the corresponding legal liabilities and compensate this company for all losses caused thereby.

Article 21 Commission and Various Fees

Unless otherwise agreed between the consignor and this company, the consignor agrees that this company will deduct a commission of 10% of the hammer price and deduct various fees at the same time, and acknowledges that this company may collect a commission and various fees of 15% of the hammer price from the buyer in accordance with the provisions of Article 46 of these Rules.

Article 22 Un-transacted Handling Fee

If the bid price of an auction item is lower than the reserve price and the transaction fails, this company will not charge the consignor any fees other than insurance fees.

Article 23 Payment of Sales Proceeds

If the buyer has paid the full purchase price to this company in accordance with the provisions of Article 47 of these Rules, this company shall pay the sales proceeds to the consignor in the form of RMB within seven days from the end of the auction, and the remittance fees charged by the bank shall be borne by the consignor. If the consignor chooses to pay in a currency other than RMB, they shall bear the risk of exchange rate fluctuations themselves. All bank handling fees, commissions or other related fees incurred by this company in converting RMB into the foreign currency required by the consignor shall be borne by the consignor.

Article 24 Delayed Payment

If the payment deadline stipulated in Article 47 of these Rules expires and this company has not yet received the full purchase price from the buyer, this company will pay the sales proceeds to the consignor within seven working days from the date on which the full purchase price is actually received from the buyer (but this time limit shall also be after 35 days from the end of the auction).

Article 25 Cancellation of Transaction

Within fifteen days from the date of the auction transaction, if the buyer has not yet paid the full purchase price to this company, from the sixteenth day onwards, after the consignor issues a written notice to this company and obtains the consent of this company, the consignor has the right to cancel the transaction. If the consignor applies to cancel the transaction, they shall return all the money received from the buyer to this company. If the consignor refuses to return or refuses to return the full amount on any grounds such as compensation for losses, this company has the right to refuse the consignor's application to cancel the transaction. This company will issue a notice of cancellation of the transaction to the buyer within seven working days from the date of the decision to agree to the consignor's cancellation of the transaction. If, at the time the consignor delivers the notice of cancellation of the transaction to this company, the buyer has already paid the full purchase price and/or has completed the delivery procedures, the consignor's notice of cancellation of the transaction shall be deemed automatically void, and the relevant transaction shall continue to be performed in accordance with the provisions of Article 24 of these Rules, and the consignor shall provide necessary cooperation and shall not raise any objections in this regard.

If the consignor cancels the transaction, the consignor shall retrieve the auction item within thirty days from the date of receipt of the collection notice from this company, and the consignor shall bear the packaging and handling fees. If this period is exceeded, the consignor shall pay storage fees to this company from the day after the expiration of this period in accordance with the provisions of Article 2, paragraph (15) of these Rules. If the consignor still has not retrieved the auction item within ninety days after the expiration of this period, this company has the right to execute in accordance with the provisions of Article 30 of these Rules.

Article 26 Collection on Behalf of

If the buyer fails to pay in full and on time as stipulated in these Rules, and the consignor requests this company to collect the overdue payment from the buyer, this company may, if it deems it practically feasible, take appropriate measures (including but not limited to resolving the matter through legal channels) to assist the consignor in collecting the overdue payment from the buyer, but the consignor shall advance the reasonable expenses that may be incurred due to the collection action (including but not limited to litigation fees, lawyer fees, travel expenses, etc.) to this company. This company has the right to determine the specific amount of reasonable expenses on its own, and after the actual amount of collection expenses incurred is determined, it will return the balance of the advanced expenses to the consignor or request the consignor to make up the collection expenses.

The above agreement does not exclude the consignor's right to personally or entrust any third party to collect the overdue payment from the buyer, nor does it lead to this company's obligation to collect the corresponding overdue payment from the buyer on behalf of the consignor under any circumstances. Under no circumstances shall this company be liable to the consignor for the buyer's failure to pay in full and on time.

Article 27 Taxes

The consignor shall perform their tax obligations in accordance with the provisions of the laws of the People's Republic of China. If the consignor's income is subject to tax to the government, and this company has the obligation to withhold and remit taxes on behalf of the consignor in accordance with the relevant laws of the People's Republic of China, this company will withhold and remit the taxes payable by the consignor in accordance with the law, and the consignor shall assist in handling all procedures. This company will deliver the tax certificate to the consignor after paying the taxes.

Article 28 Final Decision-Making Power of This Company

This company may independently decide the following matters based on the specific circumstances:

(1) Reduce or waive the deposit for bidders;

(2) Agree to pay the purchase price under special payment terms;

(3) Handling, storage, and insurance of the auction items that have been sold;

(4) Resolving claims made by the buyer or the consignor in accordance with the relevant provisions of these Rules;

(5) Settling with the buyer or taking other necessary measures to collect overdue payments from the buyer;

(6) Other matters that this company has the right to decide on its own as explicitly stated in these Rules.

Article 29 Failure of Auction Items to Be Sold

If the auction items fail to be sold, the consignor shall retrieve the auction items within seven days from the date of receipt of the notice from this company. The consignor shall bear the costs of packaging and handling. The consignment auction contract between this company and the consignor shall be terminated on the date the consignor retrieves the auction items. If the consignor fails to retrieve the auction items within the aforementioned period, the consignment auction contract between this company and the consignor shall be terminated upon the expiration of the aforementioned period, but these Rules shall remain effective for this company and the consignor. If the consignor still fails to retrieve the auction items within seven days after the termination of the consignment auction contract, the consignor shall pay storage fees to this company from the eighth day after the termination of the consignment auction contract, in accordance with the provisions of Article 2, paragraph (15) of these Rules. If the consignor still fails to retrieve the auction items within fifteen days after the termination of the consignment auction contract, this company shall have the right to execute in accordance with the provisions of Article 30 of these Rules.

Article 30 Delayed Retrieval of Auction Items

The consignor shall bear the responsibility for all risks and expenses incurred after the expiration of the period stipulated in these Rules due to the failure to retrieve their auction items within the stipulated period.

If the consignor fails to retrieve the auction items as stipulated in these Rules due to the auction items not being put up for auction, the consignor withdrawing the auction items, the auction items failing to be sold, or the consignor canceling the auction transaction, this company shall have the right to sell the auction items by public auction or other methods and conditions deemed appropriate by this company after the expiration of the period stipulated in these Rules. After deducting all losses and expenses incurred by this company (storage fees, insurance fees, handling fees, notarization fees, etc.) from the proceeds of the disposal, if there is any surplus, the surplus shall be retrieved by the consignor, and no interest shall be calculated on the surplus.

Regardless of whether the consignor delays the retrieval of the auction items, if the consignor requests this company to assist in returning their auction items, the risk and expenses of the return shall be borne by the consignor. Unless specifically indicated and insurance fees are paid, generally no insurance is provided during transportation.

Chapter 3 Provisions Concerning Bidders and Buyers

Article 31 Auction Item Catalog

In the auction activities held by this company, in order to facilitate the participation of bidders and consignors in the auction activities, this company will produce paper or electronic auction item catalogs to briefly describe the condition of the auction items in text and/or pictures. The text, reference price, pictures, and other forms of image products and promotional materials in the auction item catalog are for reference only for bidders and may be revised before the auction. They do not constitute a guarantee by this company regarding the authenticity, value, color, texture, or presence of defects of the auction items.

Article 32 Uncertainty of the Catalog

In cases where there are discrepancies in color, hue, layers, or shape between the auction items in the catalog and/or any other form of illustration, image product, or promotional material and the original items due to printing or photographic technical reasons, the original items shall prevail.

Any introduction or evaluation of any auction item made by this company, its staff, or its agents in writing or orally (including certificates, catalogs, condition descriptions/reports, slide projections, news media, online media, etc.) is for reference only and does not constitute any guarantee or commitment regarding the auction item. This company, its staff, or its agents shall not be liable for any inaccuracies or omissions in the aforementioned introduction or evaluation.

Any publication records cited in any description of auction items by this company, its staff, or its agents are for reference only for bidders. This company does not provide original copies or photocopies of publication materials and reserves the right to revise the cited descriptions.

Article 33 Bidder's Inspection Responsibility

This company specifically declares that it cannot guarantee the authenticity, quality, and value of the auction items and shall not bear any liability for defects in the auction items. Bidders and/or their agents are responsible for independently understanding the actual condition of the auction items and shall bear legal responsibility for their actions in bidding for a particular auction item.

This company strongly recommends that bidders personally inspect the original items of the auction items they intend to bid on before the auction date through appraisal or other means, and independently judge the authenticity, quality, and value of the auction items, rather than relying on the auction item catalog, condition description/report, and other forms of written or oral statements made by this company to make decisions.

Article 34 Bidder Registration

If the bidder is a natural person, they shall present a valid identity card or passport or other valid identity document recognized by this company, as well as other materials required by this company before the auction, and sign the registration document; if the bidder is a legal person or other organization, they shall present valid registration documents, the identity certificate of the legal representative, or a legal power of attorney, as well as other materials required by this company before the auction, and sign the registration document. They shall obtain and receive a bidding number plate according to the conditions and procedures for obtaining bidding number plates published by this company.

If the bidder meets the conditions for applying for an offline auction bidding number plate online as stipulated by this company, the bidder may register and apply for a bidding number plate through this company's online platform. The bidder shall fill in the identity information as required and upload the identity certificate materials recognized by this company.

Bidders shall be responsible for the authenticity of the information and materials provided to this company. This company has the right to request bidders to provide proof of financial status, guarantees, deposit certificates, and/or require bidders to provide other guarantees for the auction items they intend to bid on.

Article 35 Bidding Number Plate

This company may, depending on the different auction items, auction conditions, and auction methods, publish the conditions and procedures for obtaining bidding number plates before the auction, including but not limited to setting qualification conditions for bidders to obtain bidding number plates. For bidders who apply for offline auction number plates through this company's online platform, if the natural person collects the number plate in person, they shall present the original copy of the identity document uploaded to the online platform; if an agent collects the number plate, the agent shall present the original copy of their identity document, and the identity of the agent must match the authorization document submitted online by the bidder. This company does not guarantee that bidders will be able to successfully apply for offline auction bidding number plates through the online platform. If the system review fails, the bidder shall bear the consequences of being unable to participate in the bidding.

This company solemnly reminds you that the bidding number is the only proof for bidders to participate in the on-site bidding. Bidders should keep it properly and shall not lend it to others. In case of loss, the bidder should immediately report the loss in writing in a manner acceptable to this company.

Regardless of whether the bidder's commission is accepted, any bidding behavior conducted by the holder of the bidding number during the auction activity shall be deemed as the act of the registered person of the bidding number, and the registered person of the bidding number shall bear the legal responsibility for the behavior of the holder of the bidding number, unless the registered person of the bidding number has already reported the loss of the bidding number to this company in writing in a manner acceptable to this company, and the auctioneer has announced the invalidation of the bidding number on site.

Article 36 Security Deposit

The amount of the security deposit will be announced by this company before the auction. Before participating in the auction activities of this company, bidders should pay the full amount of the security deposit as announced by this company. This company has the right to reduce or waive the security deposit. The time when the security deposit paid by the bidder arrives at the account shall be subject to the actual arrival time at the bank where the auctioneer opens an account. This company shall not be liable for the bidder's inability to participate in the bidding due to the failure of the security deposit to arrive in time. This company has the right to only accept the security deposit paid from the bidder's own account. If the bidder purchases the auction item, this company has the right to convert the security deposit paid by the bidder (including all security deposits paid at different times through different methods) into the purchase price of the auction item.

If the bidder fails to purchase the auction item, or after part of the security deposit is converted into the purchase price or after settlement, there is still a balance of the security deposit, and the bidder does not have any auction items currently being bid on, and has no outstanding debts to this company, its parent company, subsidiaries, branches, offices (liaison offices), or affiliated companies, then the bidder may apply for a refund of the security deposit. This company has the right to review and make the final decision on the bidder's application for a refund of the security deposit. Unless the bidder applies, this company will not actively refund the security deposit.

If the bidder fails to apply for a refund of the security deposit for a long time after paying the security deposit, resulting in the inability to refund the security deposit through the original channel, upon the bidder's application and after verification by this company, the remaining security deposit will be remitted to the account newly provided by the bidder and approved by this company.

This company does not pay any interest or income when refunding any security deposit.

This company has the right to use all security deposits paid by the bidder through different methods to settle any payments owed by the bidder to this company, its parent company, subsidiaries, branches, offices (liaison offices), or affiliated companies. When the buyer purchases multiple auction items at the same time, this company has the right to decide the allocation method of the security deposit after it is converted into the purchase price.

Article 37 This Company's Options

This company has the right to refuse, at its discretion, any person from participating in the auction activities held by this company or entering the auction site, or taking photos, recording, or video recording at the auction site, and shall not bear any responsibility or loss that may arise therefrom.

Article 38 Handling of Abnormal Situations

When abnormal situations occur at the auction site that affect the normal progress of the auction activities, this company has the right to make corresponding arrangements according to the actual situation, including but not limited to: suspending the auction, continuing the auction, suspending a certain bidding method, deciding to re-auction the disputed auction item, organizing another auction activity, or canceling the auction activity. This company shall not bear any responsibility for any losses that may arise from abnormal situations or the above-mentioned handling methods of this company.

If any dispute arises at the auction site, this company has the right to coordinate and resolve it.

Article 39 Bidding as a Party

Unless a bidder provides written proof to this company before the auction and obtains written approval from this company, stating that his/her identity is the agent of a bidder, each bidder shall be deemed to be the bidder himself/herself.

Article 40 Entrusted Bidding

Bidders should attend the auction in person. If they cannot attend, they can entrust this company to bid on their behalf in writing or through this company's online platform. This company has the right to decide whether to accept the above entrustment. Bidders should complete the entrustment procedures within the specified time (no later than 24 hours before the auction), provide this company with a written entrusted bidding authorization letter, and pay the security deposit in accordance with the provisions of Article 36 of these rules.

Bidders should accurately fill in the instant communication method and tool in the entrusted bidding authorization letter. During the period of this company's entrusted bidding, the bidding information conveyed through the instant communication tool (regardless of whether it is conveyed by the bidder himself/herself) shall be deemed as the act of the bidder himself/herself, and the bidder shall bear all legal responsibilities. The bidder should use the instant communication tool in person. Once the instant communication tool is lost or uncontrollable, the bidder should immediately notify this company in writing in a manner acceptable to this company and change the instant communication method filled in the entrusted bidding authorization letter. Once the bidder confirms a certain instant communication method and tool in writing, it shall be deemed that the bidder acknowledges the security of the instant communication method and tool, the authenticity and objectivity of the communication content, and shall not raise any objections afterwards.

If a bidder who entrusts this company to bid needs to cancel the entrusted authorization, he/she should notify this company in writing no later than 24 hours before the auction. If the bidder entrusts this company to bid on his/her behalf, the bidder shall bear the responsibility for the bidding result and related legal liabilities.

Article 41 Disclaimer of Entrusted Bidding

Given that entrusted bidding is a free service provided by this company to bidders for conveying bidding information, this company and its staff shall not bear any responsibility for unsuccessful bidding, negligence, fault, or inability to bid during the agency bidding process.

Article 42 Principle of Prior Entrustment

If two or more bidders who entrust this company to bid offer the same bid price for the same auction item in writing, and the auction item is finally sold at that price, the bidder who first delivers the entrusted bidding authorization letter to this company shall be the buyer of the auction item.

Article 43 Auctioneer's Decision-Making Power

The auctioneer has absolute decision-making power over the following matters:

(1) Rejecting or accepting any bid (if the bidder successfully bids through the online platform, it is deemed that the auctioneer has accepted the bid);

(2) In case of abnormal situations or disputes, whether during or after the auction of an auction item, the auctioneer has the right to decide the highest bidder, whether to suspend the auction, continue the auction, cancel the auction, or re-auction the disputed auction item, and whether to recognize the validity of the original bid during the re-auction;

(3) Starting the bidding with the bidding increment that he/she deems appropriate, and has the right to increase or decrease the bidding increment;

(4) For auction items without a reserve price, unless there has been a bid, the auctioneer has the right to decide the starting price at his/her discretion.

(5) Take any other actions it deems appropriate at the auction site.

Article 44 Image Display Boards and Currency Exchange Display Boards

For the convenience of bidders, the Company may use image projection or other forms of display boards during the auction. The content shown is for reference only. The amounts, auction lot numbers, auction lot pictures, or reference foreign exchange amounts shown on the image projection or other forms of display boards may have errors, delays, or may not be displayed at all. The Company shall not be liable for any losses caused thereby.

Article 45 Auction Completion

When the highest bid of a bidder is confirmed by the auctioneer's fall of the hammer or other public indication of acceptance, that bidder's bid is successful, indicating that the bidder has no objection to the auction process and undertakes responsibility for its bidding behavior. That bidder becomes the buyer of the auction lot. The buyer shall sign the transaction confirmation form/auction record. If the buyer fails to sign the transaction confirmation form/auction record, it does not affect the legal liabilities that the buyer should bear. If the buyer fails to fulfill the payment obligation, the Company has the right to require the buyer to compensate the Company for all losses caused thereby and has the right to pursue legal liability against the buyer in accordance with Article 54 of these Rules.

After the bid is successful, if the buyer does not personally sign the transaction confirmation form/auction record, but instead has another person (including but not limited to the holder of the bidding paddle) sign on their behalf at the site, then regardless of whether the signatory has provided the Company with a power of attorney from the buyer, or whether the signature on the transaction confirmation form/auction record is the buyer's own name, it is deemed that the buyer has authorized such person to sign on their behalf, unless the buyer raises an objection at the auction site, in which case the legal consequences of all actions of the signatory shall be borne by the buyer.

Article 46 Commission and Various Fees

After a bidder's bid is successful, the bidder becomes the buyer of the auction lot. The buyer shall pay the Company a commission equivalent to 10% of the hammer price, and shall also pay various fees, and acknowledges that the Company may collect commissions and various fees from the principal in accordance with Article 21 of these Rules.

Article 47 Payment Requirements

After the auction is completed, the buyer shall pay the purchase price in full to the Company within seven days of the auction completion date and collect the auction lot. If packaging and handling fees, transportation insurance fees, and other fees are involved, the buyer shall pay them together. The Company reserves the right to refuse payment from any third party other than the buyer. If the buyer purchases multiple auction lots but has not paid the full purchase price, and has not specified in writing which auction lot's purchase price is being paid when paying the purchase price, the Company has the right to decide on its own how the purchase price is allocated.

Article 48 Currency of Payment

All payments shall be made in the currency specified by the Company. If the buyer pays in a currency other than that specified by the Company, the payment shall be converted at the exchange rate agreed upon between the buyer and the Company, or at the exchange rate between the RMB and that currency announced by the People's Bank of China on the business day before the buyer's payment date. All bank handling fees, commissions, or other related expenses incurred by the Company in converting the buyer's payment of such foreign currency into RMB shall be borne by the buyer.

Article 49 Transfer of Ownership

After the buyer has paid the purchase price in full, the buyer obtains ownership of the auction lot.

Article 50 Transfer of Risk

After the bid is successful, the risk of the auction lot shall be borne by the buyer upon the occurrence of any of the following circumstances (the earlier date shall prevail):

(1) The buyer collects the purchased auction lot; or

(2) The buyer pays the Company the full purchase price for the auction lot;

(3) Seven days from the auction completion date have elapsed.

Article 51 Collection of Auction Lots

The buyer must go to the Company's registered address or other place designated by the Company to collect the purchased auction lot within seven days of the auction completion date. If the buyer fails to collect the auction lot within seven days of the auction completion date, the buyer shall bear all costs related to the custody, handling, and insurance of the auction lot after the expiration of the period, and the buyer shall bear full responsibility for the purchased auction lot. Even if the auction lot is still kept by the Company or other agents, the Company, its staff, or its agents shall not bear any responsibility for the damage or loss of the auction lot caused by any reason.

If the buyer has auction lots that are currently being bid on, or owes the Company, the Company's parent company, subsidiaries, branches, offices (liaison offices), or affiliated companies other payments, the buyer may not collect any auction lots.

Article 52 Packaging and Handling

The Company's staff shall, at the buyer's request, assist in packaging and handling the purchased auction lot. This is only considered assistance provided by the Company to the buyer. The Company may decide whether to provide this assistance at its discretion. If any loss occurs, it shall be borne by the buyer. Under no circumstances shall the Company be liable for damage to glass or frames, cases, pads, stands, mounting, inserts, shafts, or similar accessories caused by any reason. In addition, the Company shall not be liable for any errors, omissions, damage, or loss caused by packaging companies and shipping companies recommended by the Company to the buyer.

Article 53 Export and Import of Auction Lots

Any auction lot may be subject to export laws of the country of auction and import and export laws of other countries or regions. Buyers must seek professional advice before bidding to ensure that the auction lot meets the legal requirements for import and export. If cultural relics are to be transported out of the country, the buyer must independently handle the procedures for the export review of cultural relics in accordance with the law. For auction lots under the supervision of the customs of the People's Republic of China or in bonded areas, after the auction is completed, the buyer shall independently handle the import procedures in accordance with the relevant regulations of the People's Republic of China, and shall bear the corresponding taxes and fees. The buyer may not use the failure to obtain any license or relevant document as a reason to cancel the transaction or request a delay in payment.

Article 54 Remedial Measures for Non-Payment

The Company has no obligation to investigate the payment ability of bidders or buyers. If the buyer fails to make payment in full and on time as stipulated in these Rules, the Company has the right to take one or more of the following measures:

(1) After the auction is concluded, if the buyer fails to pay the purchase price within the time limit stipulated in these rules, the deposit will not be refunded, and the buyer shall also bear the corresponding responsibilities as stipulated in these rules; if the buyer purchases multiple auction items at the same time, and fails to pay the purchase price for any of the auction items within the stipulated time after the auction is concluded, it shall be deemed that the buyer has constituted a material breach of contract, and all deposits will not be refunded, and the buyer shall also bear other liabilities for breach of contract as stipulated in these rules. Our company has the right to prioritize the use of the aforementioned non-refundable deposit to compensate our company's commission income and various expenses, and the remaining part will be retained by our company to compensate the consignor's losses. If multiple consignors suffer losses, our company may decide on the allocation method of the deposit without consulting the buyer;

(2) Within seven days from the date of the auction conclusion, if the buyer fails to pay the full purchase price to our company, our company has the right (but not the obligation) to entrust a third-party institution to collect all or part of the outstanding purchase price from the buyer;

(3) Within seven days from the date of the auction conclusion, if the buyer fails to pay the full purchase price to our company, our company has the right to charge interest at a daily rate of 3/10,000 on the unpaid portion from the eighth day after the auction conclusion until the buyer pays the full amount, unless otherwise agreed between the buyer and our company; unless otherwise agreed between the consignor and our company, our company has the right to retain the interest;

(4) To sue the buyer and claim compensation for all losses caused by the buyer's breach of contract, including interest losses caused by the buyer's late payment or refusal to pay, all commission income and various expenses, compensation, reasonable expenses incurred in litigation (including but not limited to litigation fees, lawyer fees, travel expenses, etc.) and other related expenses;

(5) To use the buyer's said item or any other auction item auctioned by our company, and any other property or property rights of the buyer possessed by our company for any reason, as collateral. All expenses and/or risks incurred during the pledge period shall be borne by the buyer. If the buyer fails to fulfill all its relevant obligations within the time limit specified by our company, or fails to pay our company all losses and compensation, our company has the right to dispose of the pledged property in accordance with the relevant laws of the People's Republic of China. If the proceeds from the disposal of the pledged property are insufficient to offset all the amounts owed by the buyer to our company, our company has the right to make further claims;

(6) Within ninety days from the date of the auction conclusion, if the buyer still fails to pay the full purchase price to our company, our company has the right to cancel or agree with the consignor to cancel the transaction of the said item or any other auction item sold to the same buyer in the same or any other auction from the ninety-first day after the auction conclusion, depending on the specific circumstances, and reserves the right to claim all losses suffered by our company due to the cancellation of this or any other transaction;

(7) With the consent of the consignor, our company may re-auction or sell the auction item in other ways as stipulated in these rules. In addition to the commissions and various expenses that the buyer and the consignor should pay in the first auction and the expenses of re-selling the auction item in other ways, if the proceeds from the re-auction or sale of the auction item in other ways are lower than the original auction price, the original buyer shall make up the difference;

(8) To offset any amounts owed by our company, our company's parent company, subsidiaries, branches, offices (liaison offices), and affiliated companies to the buyer in any other transaction against any amounts owed by the buyer to our company; to use any payments made by the buyer to settle any amounts owed by the buyer to our company, our company's parent company, subsidiaries, branches, offices (liaison offices), and affiliated companies, regardless of whether the buyer instructs the payment to be used to settle the said amount.

Article 55 Remedial Measures for Delayed Collection of Auction Items

If the buyer fails to collect the purchased auction item within the time limit stipulated in Article 51 of these rules, our company has the right to take one or more of the following measures:

(1) To store the auction item at our company or other places, and all expenses (including but not limited to storage fees charged from the eighth day after the auction conclusion in accordance with the provisions of Article 2, paragraph (15) of these rules, etc.) and/or risks incurred shall be borne by the buyer. The auction item can only be collected after the buyer has paid the full purchase price in full, and the buyer shall bear all expenses such as packaging and handling fees, transportation insurance fees, etc.;

(2) The buyer shall bear all risks and expenses incurred after the expiration of the time limit for collecting the relevant auction items due to failure to collect them within the time limit stipulated in these rules. If the buyer still fails to collect the auction item within fifteen days from the date of the conclusion of the transaction, our company has the right to sell the auction item through public auction or other methods and conditions deemed appropriate by our company. After deducting all losses and expenses incurred by our company (packaging and handling fees, transportation insurance fees, storage fees, notarization fees, etc.) from the proceeds of the disposal, if there is any surplus, the buyer shall collect it by themselves, and no interest shall be calculated on the surplus.

Chapter 4 Other

Article 56 State Preemptive Purchase Right

When relevant government departments exercise the state preemptive purchase right over the auction items, they shall be executed in accordance with national laws and relevant government decisions, and all relevant parties shall accept and cooperate as necessary.

Documents concerning the state preemptive purchase right issued by the cultural relics administrative department to our company do not constitute any guarantee or appraisal opinion on the authenticity, quality, and value of the auction items.

Article 57 Confidentiality and Data Collection

Our company is obligated to keep confidential information for consignors, bidders, and buyers (except as otherwise provided by the laws of the People's Republic of China and these rules, or when disclosure is required by public authorities). In case of breach of contract by the consignor or buyer, our company has the right to decide, at its own discretion, to disclose the identity information (including but not limited to name/name, address, identity information) of the other party to the consignor or buyer, so that the damaged party can obtain compensation through legal proceedings or other legal means; our company has the right to disclose or report the identity information of the breaching party to judicial organs, industry organizations, and credit reporting agencies.

Our company may record audio, video, and records of any auction process, and needs to collect personal information from bidders or collect information about bidders from third parties (e.g., requesting credit checks from banks). This information will be processed and kept confidential by our company, and the information may only be provided to our company, our company's parent company, subsidiaries, branches, offices (liaison offices), and affiliated companies for the purpose of these rules, to assist our company in providing perfect services to bidders, conducting customer analysis, or to provide services that meet the requirements of bidders. For the benefit of bidders, our company may also need to provide some personal information of bidders to third-party service providers (e.g., transportation companies or warehousing companies). By participating in our company's auctions, bidders agree to the above and our company's "Privacy Policy" published on the online platform.

Article 58 Appraisal Right

Our company may appraise the auction items when deemed necessary. If the appraisal conclusion does not match the condition of the auction items stated in the consignment auction contract, our company has the right to change or terminate the consignment auction contract.

Article 59 Copyright

The consignor irrevocably authorizes our company to produce photographs, illustrations, catalogs, or other forms of image products and publicity materials for any items consigned to our company for auction. Our company legally owns the copyright to the aforementioned photographs, illustrations, catalogs, or other forms of image products and publicity materials and has the right to use them legally. Our company also has the right to use the photographs, pictures, and text materials provided by the consignor relating to the auction items for auction purposes. If this causes claims from the right holders of the photographs, pictures, and text materials, the consignor shall be responsible for properly resolving the issue and ensuring that our company does not bear any compensation liability.

Article 60 Liability for Compensation in Case of Invalid Auction

If the auction transaction is invalid due to reasons attributable to the relevant party, the relevant party shall bear the liability for compensation to make up for all losses of our company. The compensation standard shall be based on the benefits our company could have obtained if the auction transaction were valid and all expenses paid to recover such benefits.

Article 61 Notice

Both bidders and consignors shall inform our company of their fixed and valid mailing address and contact information through the bidding registration documents, consignment auction contract, or other methods approved by our company. If there are any changes, they should immediately inform our company in writing. Any adverse legal consequences resulting from failure to provide written notice of changes shall be borne by the bidder or buyer. Notices mentioned in these rules and any notices related to our company's auction business include oral notices in the form of telephone calls and written notices issued in the form of letters, faxes, emails, instant messaging, and online platform push notifications. For telephone notifications, as long as our company calls the number filled in by the bidder and consignor when signing documents or registering online accounts, regardless of whether the actual recipient is the bidder, buyer, or consignor himself, it is deemed that the person has received the oral notification. If sent by mail, once our company delivers the notice to the postal unit, it is deemed that our company has sent the notice, and it is also deemed that the recipient has received the notice according to the normal mailing procedure. If sent by other written methods, the date of sending is the date the recipient receives the notice. Our company shall not be liable for the failure of bidders, buyers, or consignors to receive notices from our company due to reasons not attributable to our company.

Article 62 Severability

If any provision or part of these rules is deemed invalid, illegal, or unenforceable by a competent authority for any reason, the other provisions or parts of these rules shall remain valid, and the relevant parties shall abide by and execute them.

Article 63 Dispute Resolution

Any disputes arising from or relating to participation in our company's auction activities in accordance with these rules shall be brought before the people's court in the location of our company's domicile. The governing law for resolving such disputes shall be the laws of the People's Republic of China.

Article 64 Language Text

These rules are in Chinese as the standard text, and the English text is for reference only. In case of any inconsistency between the Chinese and English texts, the Chinese text shall prevail.

Article 65 Copyright of Rules

These rules are formulated and amended by our company in accordance with the law, and the corresponding copyrights belong to our company. Without the prior written permission of our company, no one may use these rules to obtain commercial benefits in any way or means, nor may they copy, transmit, or store any part of these rules in a retrievable system.

Article 66 Singular and Plural Terms

In the clauses of these rules, according to the context, singular terms also include plural terms, and vice versa.

Article 67 Amendment Right

The right to amend these rules belongs to our company. Our company has the right to amend these rules in accordance with the law at any time according to the actual situation, and these rules shall automatically apply the amended version from the date of amendment. If these rules are amended, our company will promptly publicize them in a manner deemed appropriate by our company in accordance with the law. Relevant parties should pay attention to this themselves, and our company has the right not to provide separate notification.

Article 68 Text Applicability

Unless otherwise agreed by our company, the consignment auction contract mentioned in Article 6 and the cancellation transaction notice mentioned in Article 25 and other related texts shall apply to the texts formulated by our company. The content of such related texts formulated by our company and these rules together constitute an inseparable whole.

Article 69 Effective Date

These rules shall come into effect on February 1, 2023.

Article 70 Interpretation Right

Our company is responsible for interpreting these rules.