1. The handling of mechanical equipment can be based on quality and price according to its newness and technical status. When there is a price difference between the income from the price change of machinery and equipment and the book value, it should be handled in accordance with financial regulations. All income from price changes should be reserved for renovation funds.

2. Due to long-term use of mechanical equipment, serious wear and tear; or due to accidents that cause serious damage to mechanical equipment, which cannot be repaired and have no value for transformation; or because the technical life or economic life has expired; it can be treated as scrapped.

3. Conditions for scrapping mechanical equipment:

(1) The wear and tear is serious, the basic parts have been damaged, and further major repairs can no longer meet the use and safety requirements.

(2) The technical performance is backward, the energy consumption is high, and there is no renovation value;

(3) The repair cost is high, and it is not as economically as economical as updating;

4. For those who meet the above conditions, the machinery user unit will organize a technical appraisal team to conduct technical appraisal of the mechanical equipment applied for scrapping and fill in the equipment scrapping application form.

5. The company's machinery management department will organize relevant personnel to conduct inspections based on the scrapping appraisal form applied by the user unit. If it is confirmed that it meets the scrapping conditions, it will be approved by the company's competent department and reported to the financial department for write-off.

6． If the depreciation of the mechanical equipment applied for scrapping has not been fully increased, the depreciation should be fully increased in accordance with financial regulations.

7. Mechanical equipment that has been approved for scrap shall not be transferred or continued to be used, and the residual value shall be recovered. Except for automobile boilers, other scrapped mechanical equipment shall be kept in a centralized manner and dismantled. The parts and assemblies that can still be used shall be used as much as possible. And evaluate it as income from residual value change. For mechanical equipment that has not been approved for scrapping, parts and components must not be disassembled at will.

8． Regardless of whether the mechanical equipment is to be disposed of at a price change or scrapped, financial matters should be handled in a timely manner after the physical cleaning or handover procedures are completed.

9. If mechanical equipment is lost due to natural disasters or other reasons that cannot be restored by human resources, the user unit should carefully check it. If the situation is true, it should be reported to the financial department. The equipment management department will handle it according to regulations. If it is lost due to poor storage, the responsible person should be responsible. Compensation for part or all of the loss shall not be treated as scrap.