Project Name: 80,000 tons/year Polyformaldehyde Engineering Plastics Project

Construction Entity: Lihuayi (Lijin) Engineering Plastics Co., Ltd.

Construction Nature: New Construction

Project Investment: Total investment is 260,579 million yuan, of which environmental protection investment is 14,250 million yuan, accounting for 5.67% of the project investment.

Construction location and area: Southern section of the chemical industry park in Lijin Binhai New District, west of Gongjiagang Canal, between Li 8 Road and Li 9 Road, covering an area of 172,860 m².

Construction and scale of the project：8 million tons of ethylene/year of one unit of ethane processing plant, two units of one million tons per year ethane processing plant and one unit of 12 million tons per year ethane processing plant, with one unit of auxiliary engineering, storage engineering, and environmental engineering. The project uses ethane as raw material, using the pyrolysis method to produce ethylene, and then using the alumina plant to produce methanol through ethane and ethylene. The project outputs 37% of ethylene 8 million tons per year, 36 million tons of ethylene.

Labor manpower and work systems: Add 12 new labor manpower, four-shift three-rotational system, annual operating hours 8000; management personnel transferred from the group company.

Product Plan: This project involves the production of methanol (甲醛) from the methanol production process, and then uses methanol as raw material to produce poly methanol (聚甲醛). The project can be operated in two extreme production scenarios based on market demand.

The project involves the production of a full range of formaldehyde-based POM (Polyoxymethylene) products, with typical products including low-emission formaldehyde POM LV series, high-end base material MC90-44H, and high molecular weight products MC15-01. Below is a detailed list of the main product grades and their specifications: - Low Emission Formaldehyde POM LV Series - High-End Base Material Grade MC90-44H - High Molecular Weight Product MC15-01

Li Hua Yi (Lijin) Engineering Plastics Co., Ltd. was established in September 2024, located in the southern area of the chemical industry park in Lijin Binhai New Area. It is a wholly-owned subsidiary of Li Hua Yi Lijin Refining & Chemical Co., Ltd. Li Hua Yi Lijin Refining & Chemical Co., Ltd. (formerly known as Lijin Petrochemical Company Limited; hereinafter referred to as "Lijin Refining & Chemical") was founded in March 1994 and completed its name change on May 26, 2016. It is a subsidiary of Li Hua Yi Group.

Lihua Yi Group is a large-scale joint-stock enterprise group primarily focused on the petroleum and chemical industry, with diversified operations in pharmaceuticals, textiles and apparel, and import-export trade. It is ranked among China's top 500 enterprises, China's top 500 chemical companies, Shandong Province's top 100 enterprises, and the top 10 large and medium-sized industrial enterprises in the country in terms of independent innovation capability.