For the purpose of saving financial cost, making the daily working capital arrangement more efficient under the financial crisis and keeping close connection with the IPS II financing, after a full communication with both parent companies and getting their approval, BASF-YPC Company Limited (BYC) conducted a negotiation with Jinling Petrochemical Company Limited (JPCL), one of the maim raw material suppliers, and Sinopec Finance Company Limited Nanjing Branch to execute a new business model named as Entrusted Bill Discount. Having had friendly consultation with the two above-mentioned parties, BYC successfully transferred the payment method for naphtha purchase from cash to entrusted bill discount. The three parties signed the cooperation agreement of entrusted bill discount business on January 15 with a total circle amount of RMB 2 billion. Then on March 12 the first business of this sort was successfully carried out. This not only opens up a new financing channel but also saves the financial cost for the Company.