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The focus of our research and development activities will be on new product feasibility assessment, production process and technology improvement and cost efficiency. We believe that our research and development efforts facilitate our ability to introduce technologically advanced new products and improve our production processes. We plan to invest in research and development through in-house research and development activities, joint development with reputable third-party research and development institutes, and strong incentives to employees.
To enhance research and development, and its core technologies and market competitiveness, China BlueChem has year-by-year gradually increased investment in R&D:

In 2003, the Company invested RMB 80,000 in research and feasibility studies of new projects;
In 2004, the Company invested RMB 1,500,000 in research and trial production of carbon dioxide products;
In 2005, the Company invested RMB 800,000 in research, feasibility study, safety and environmental protection
assessment of a methanol project.

Based on the 'Regulations for the Reward of Reasonable Suggestions and Technology Improvement ' promulgated by the State Council and also heeding the Company's practical situations, China BlueChem has compiled a set of 'Methods to Reward Reasonable Suggestions and Technology Improvement ' , which has been effective in motivating staff members to take part in the Company's research and development activities and technological innovation. Based on other related government regulations, the Company also compiled two sets of provisional rules for 'Staff Training Management' and 'Staff Recruitment and Appointment', with the aims of strengthening staff training and attracting more talents to the Company for building a professional team. These endeavors ensure the Company has the human resources to support its research and development work and pursuit of technological innovation.
 
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