On December 25, 2006, on behalf of BASF-YPC Company Limited and Luhe District government separately, Mr. Cheng Zhong, General Manager of Human Resources and Administration Division, and Mr. Jin Qiming, Vice Governor of Luhe District, signed an agreement to establish "BYC Hope Project Scholarship and Stipend". According to the agreement, the Company will annually donate RMB 98,000 to Luhe Education Bureau as the scholarship for 200 well-performing students and also stipend for another 200 students of poor families in Luhe district. The donation will last for 2 to 3 years.

Dr. Blumenberg, President of the Company, explained the Company's motivation to this donation, he said:" Education lays fundamental basis for the sustainable development of individuals and the whole society. Therefore, to support local education is not only the social responsibility of BASF-YPC Company Limited as a responsible corporate citizen, but also highly coherent to its concept and values of sustainable development." Mr. Li Jiping, Vice Party Secretary of Luhe district, appreciated the Company on behalf of local authorities, he said:" BASF-YPC Company Limited has made great contributions to the local economy and social development, especially in promoting local education development. This reflects the Company's great concern for the society and deep affections to the local communities". He also expressed his hope to further strengthen the cooperation between the government and the Company.

In June of 2004, the Company had donated computers and multi-media equipments worthy of RMB 200,000 to Dongwang Primary School in Luhe district, meanwhile, it also colleted more than RMB 120,000 from all the employees to aid poor students in four primary schools in Luhe district including Dongwang. The establishment of "BYC Hope Project Scholarship and Stipend" is not only the Company's continued efforts to support local education, but also its reassured commitment to contribute to the society as a responsible corporate citizen.