The industrialized demonstration project of 2X100 KTA polycarbonate (PC) under construction by the Company is a key construction project of Sichuan Province in 2016. Polycarbonate is produced by applying the state-of-art proprietary technology of non- phosgene melt poly-condensation owned by China Bluestar Chengrand Research Institute of Chemical Industry Co., Ltd. and Chengdu Organic Chemicals Co., Ltd. under Chinese Academy of Sciences through utilization of the excessive production capacity of existing plants under Lutianhua Group. This technology not only has broken the technical monopoly by foreign countries, but also has filled the domestic blank. Phase I project of 100 KTA PC under the Company was completed and put in operation in 2019. This is the first set of industrialized demonstration project of 100 KTA PC in China by applying the proprietary technology of non- phosgene melt poly-condensation with complete independent intellectual property rights (IPR).