The laboratory in Nantong, Jiangsu, focuses on application development and innovations in polyurethane additives. It target innovations that address major technical challenges that hinder the industry's greening, high performance, and sustainable development. This enables us to meet the needs of customers across various industries and conduct diverse application research. Hengguang New Materials allocates 4.5%-5.5% of its annual sales revenue to R&D, with an average annual investment exceeding 7 million RMB in recent years. In 2019, the company spent 7.98 million RMB on R&D; in 2018, the R&D expenditure was 7.5 million RMB; and in 2017, it was 7.03 million RMB. Our commitment in R&D investment has become one of the key drivers behind the rapid and steady growth of Hengguang New Materials' business performance.

Hengguang New Materials shares its production base and R&D facility in Nantong, which collaborates to develop efficient and high-quality production processes, and produce a wide range of polyurethane raw materials. Through an efficient supply chain system and sales office in Suzhou, Hengguang New Materials is able to deliver high-quality products to customers worldwide quickly. By integrating R&D, production, and supply into a comprehensive system, Hengguang New Materials delivers products that meet customer needs through its global network.