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On January 15, 2015, Changhong High-Tech issued a announcement regarding its overseas investment projects and the proposed signing of a supplementary agreement to the Project Investment Agreement for the Fully Biodegradable New Materials Industrial Park. The announcement states that the company plans to use **furan (THF)**, a by-product of the PBAT production process, for purification, and at the same time build production facilities for high-end fiber elastomers along with the necessary supporting infrastructure, with a designed annual production capacity of 50,000 tons per year ； PBAT black masterbatch production facility: A dual-furnace process is planned to be used, with the design based on 3 production lines – one with a capacity of 50,000 tons per year, one with 30,000 tons per year, and one with 20,000 tons per year – for a total capacity of 100,000 tons per year. In October 2020, Zhejiang Changhong Biomaterials Co., Ltd., a wholly-owned subsidiary of Changhong High-Tech, (hereinafter referred to as “Changhong Biomaterials”) signed an Investment Agreement for the Full Biodegradable New Materials Industrial Park Project with the People’s Government of Shengzhou City. The plan was to invest 5 billion yuan in building an industrial park for the production of fully biodegradable thermoplastics, with an annual production capacity of 600,000 tons. The first phase of this project involved constructing a production facility with an annual capacity of 120,000 tons; accompanying this were facilities for producing downstream products such as films, plastic bags, and disposable meal containers. The construction of the first-phase project was completed in September 2021. In 2023, Changhong Bio conducted technical upgrades to its facilities in order to reduce energy consumption during the production process and diversify its revenue streams; as a result, the black masterbatch and carbon black production units were successfully established. Changhong Bio is the first factory in China to produce black masterbatches and carbon black using rich aromatic oils as raw materials. It possesses unique processing technologies that enable the removal of all impurities from the raw materials, resulting in black masterbatches and carbon black of quality superior to that available on the market. Against this backdrop, and considering that the PBAT production process generates large amounts of THF as a by-product, Changhong Bio aims to further enhance synergies and improve profitability by carrying out further processing of THF products. It plans to invest in a project to produce 50,000 tons per year of high-end fiber elastomer materials, along with a corresponding facility for producing 100,000 tons per year of PBAT masterbatches.