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The Mengxi Energy coal-to-olefins upgrading demonstration project has officially received approval from the Development and Reform Commission of Inner Mongolia Autonomous Region (the former Sino-Electricity-Dow joint venture project). On August 15, entrusted by the **Development and Reform Commission, the Development and Reform Commission of Inner Mongolia Autonomous Region approved the Mengxi Energy coal-to-olefins project (also known as the “Sino-Electricity Coal-to-Olefins Upgrading Demonstration Project”), issuing approval document No. Nei Fa Gai Chan Ye Chan Zi [2016] 962. This signifies the successful completion of the preliminary work for the project, marking it as the first **coal-to-olefins upgrading demonstration project to receive official approval. The Mengxi Energy coal-to-olefins project has an annual production capacity of 880,000 tons (nominal 800,000 tons), and is designed as a modern coal chemical facility aimed at producing high-end polyolefin products that are currently dependent on imports. This project possesses strong market competitiveness and risk resistance. After numerous optimizations and specialized evaluations, its various indicators such as comprehensive energy consumption and water consumption meet and even exceed the **relevant requirements; it ranked first in the 2013 National Coal-to-Olefins Upgrading Demonstration Project evaluation. The project is located within the coal chemical industry park in Dalu Industrial Park, Zhungeer Banner, Ordos City, Inner Mongolia. All the necessary construction conditions, including land and water usage quotas as well as emission standards, have been met for this site. Since the preliminary work for the coal-to-olefins project was initiated in October 2009, under the correct leadership of the group company and with the strong support of various levels of authorities in Inner Mongolia Autonomous Region, Mengxi Energy has overcome numerous difficulties and steadily advanced all the preliminary tasks related to the project. On November 11, 2013, we received the approval from the National Development and Reform Commission to proceed with the preliminary work (Document No. FGWB Chanye [2013] 2774) ； On July 8, 2016, it officially received the environmental assessment approval from the Ministry of Environmental Protection (Document No. Huan Shen [2016] 96), becoming one of the earlier coal chemical upgrading demonstration projects in China to obtain such approval from the ministry. The coal-to-olefins project has been successfully approved in accordance with the established plan, laying a solid foundation for the implementation of the decision-making guidelines regarding related projects within the group company.