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HKEx Stock Code: 02198 HK

Ethylene oxide production technology

We entered into license, process design and technical assistance services agreements with Scientific Design Company, Inc. ("SD Company"). SD Company is a U.S. company established in 1946 that licenses petrochemical process technology, provides process engineering services and develops, manufactures and sells catalysts worldwide. It is amongst a few dominant companies which possesses ethylene oxide production technologies and is one of the leading process technology companies that provide ethylene oxide production technologies to PRC ethylene oxide manufacturers.


Engineering design of surfactants production facilities

We contracted China BCEL International Engineering Co., Ltd. (中國中輕國際工程有限公司) ("BCEL"), a large-scale engineering consulting corporation in the PRC, for installation of the first phase of our surfactants production facilities with a designed annual production capacity of 100,000MT at our Jiaxing Production Plant. Under the aforesaid agreements entered into with BCEL, we are provided with, among other things, know-how and technical information relating to the production of surfactant and engineering design of our first and second production lines of surfactants in our Jiaxing Production Plant.


Technology Advancement

In addition to the technologies provided by the abovementioned technology and engineering companies, our technology team constantly seeks technology advancement to our production facilities with an aim to improve our production capacity and efficiency, as well as reduce costs. In 2007, we installed filler materials in the scrubber of our ethylene oxide production device, which enhanced ethylene oxide absorption, thereby increasing our production efficiency. Furthermore, in 2009, we made technology advancement in the cooling device for recycled water used in the production of ethylene oxide by replacing four electric cooling fans with hydro-turbine fans, which reduced our energy consumption in the production process.


Research and Development

We have a research and development center at our headquarters in Jiaxing, which has employed engineers and technicians as of the Latest Practicable Date. These engineers and technicians, apart from performing production and other operational functions, engage in research and development projects organized and decided by our research and development center. With our research and development team, we strive to enhance our manufacturing technologies, improve the quality of our existing products and develop new types of surfactants. We plan to explore opportunities to form collaboration and/or cooperation with universities in the PRC to upgrade our production technologies and reduce our production costs.