We are a leading innovator and producer of environmentally friendly and economically attractive alternatives to traditional petroleum-based plastics. With an annual manufacturing capacity of approximately *0,**0 metric tons, we are the second-largest manufacturer of starch-based bioplastics in the world and the largest in China in terms of production capacity, according to Fredonia. We believe our primary product, plastic starch material, or PSM, offers performance characteristics equivalent to or better than those of traditional petroleum-based plastics and other bioplastics, and is priced competitively to traditional petroleum-based plastics. Our proprietary technology and know-how, brand name and customer relationships uniquely position us to capitalize on the rapidly increasing demand for substitutes for traditional petroleum-based plastics.

We believe we enjoy a number of technological and cost advantages relative to our competitors in bioplastics. We possess proprietary technology and know-how across our value chain, including PSM development, end product development, equipment design and configuration, as well as manufacturing processes. Our state-of-the-art manufacturing plant is fully automated, pollution free and highly efficient, utilizing a flexible process that enables us to use multiple feedstocks and produce a broad range of products customized to specific customer requirements. We also have low capital costs, which will allow us to expand manufacturing capacity quickly. Finally, we plan to use our accumulated expertise in polymer science, organic chemistry and biological engineering to improve the properties and processing of our products and expand the market applications of PSM.