Security	Conv. / exercise price	Date	Code	Shares	A/D	Exercisable	Expires	Underlying	Underlying shares	Owned after	D/I
Series D Jr. Convertible Preferred Stock, par value $0.0001^{F5,F1,F2,F3,F4,F6,F7,F8,F9}	$6.25	Jan 24, 2014	D	16,000,000	D	Jan 1, 2012	Sep 28, 2014	Common Stock	16,000,000	0	I
Series D Jr. Convertible Preferred Stock, par value $0.0001^{F5,F1,F2,F3,F4,F6,F7,F8,F9}	$6.25	Jan 24, 2014	A	16,000,000	A	—	Feb 4, 2019	Common Stock	16,000,000	16,000,000	I

Explanation of responses

F1This form is filed by (i) Morgan Stanley, a Delaware corporation ("MS Parent"), (ii) MS Holdings Incorporated, a Delaware corporation ("MS Holdings"), (iii) Morgan Stanley Private Equity Asia III, Inc., a Delaware corporation ("MS Inc"), (iv) Morgan Stanley Private Equity Asia III, L.L.C., a Delaware limited liability company ("MS LLC"), (v) Morgan Stanley Private Equity Asia III, L.P., a Cayman Islands limited partnership ("MS LP"), (vi) Morgan Stanley Private Equity Asia Employee Investors III, L.P., a Cayman Islands limited partnership ("MS Employee"), (vii) Morgan Stanley Private Equity Asia III Holdings (Cayman) Ltd, a Cayman Islands limited liability company ("MSPEA Holdings") and (viii) MSPEA Modified Plastics Holding Limited, a Cayman Islands limited liability company ("MSPEA") (collectively, the "Reporting Persons").
F2(cont'd from FN1) MS Holdings is a wholly owned subsidiary of MS Parent. MS Inc is a wholly owned subsidiary of MS Holdings and is the managing member of MS LLC. MS LLC is the general partner of both MS LP and MS Employee. MS LP holds 92.13% of MSPEA Holdings and MS Employee holds 7.87% of MSPEA Holdings. MSPEA Holdings owns 100% of MSPEA.
F3(cont'd from FN2) MSPEA is the record holder of 16,000,000 shares (the "Preferred Shares") of Series D Junior Convertible Preferred Stock (the "Series D Preferred Stock"), par value $0.0001 per share. MS Parent may be deemed to beneficially own the Preferred Shares beneficially owned by operating units (collectively, the "MS Reporting Units") of MS Parent, its subsidiaries and affiliates (collectively, "MS"). This filing does not reflect securities, if any, beneficially owned by any operating units of MS whose ownership of securities is disaggregated from that of the MS Reporting Units in accordance with the Securities and Exchange Commission Release No. 34-39538 (January 12, 1998).
F4(cont'd from FN3) Neither the filing of this Form 4 nor any of its contents shall be deemed to constitute an admission by any Reporting Person that it is the beneficial owner of any such Preferred Shares for purposes of Section 16 of the Securities Exchange Act of 1934, or for any other purpose, and each of the Reporting Persons expressly disclaims the beneficial ownership thereof except to the extent of its pecuniary interest therein, if any. MSPEA's nominees to the Issuer's board of directors, Mr. Homer Sun and Mr. Jun Xu, were two of the Issuer's directors on January 24, 2014. By virtue of Mr. Homer Sun and Mr. Jun Xu, being the Issuer's directors, each of the Reporting Persons was a director by deputization.
F5The two reported transactions involved an amendment of the terms of the outstanding Preferred Shares, resulting in a deemed cancellation of the "old" Preferred Shares and the issuance of replacement Preferred Shares. The Preferred Shares were originally issued on September 28, 2011. On September 28, 2011, MSPEA's nominees to the Issuer's board of directors, Mr. Eddy Huang and Mr. Jun Xu became two of the Issuer's directors. By virtue of Mr. Eddy Huang and Mr. Jun Xu being the Issuer's directors, each of the Reporting Persons was a director by deputization at the time of the issuance of the "old" Preferred Shares.
F6The Preferred Shares may be converted into Common Stock at any time at the election of either the Reporting Persons or the Issuer. The Preferred Shares that remain not converted will convert into Common Stock automatically on February 4, 2019.
F7The conversion price is $6.25 per share. The conversion price is subject to adjustments for any reorganization, recapitalization, consolidation or reclassification, stock dividend, stock split, reverse stock split, combination or other like changes in the Company's capital structure.
F8(cont'd from FN7) If the Issuer issues or sells any shares of Common Stock at a price ("New Issue Price") below the conversion price then in effect, MSPEA has the right to purchase from XD Engineering Plastics Company Limited ("XD") or Mr. Jie Han, another stockholder of the Issuer, certain number of shares of Common Stock to make MSPEA whole with respect to what it should have received from the Issuer if all outstanding shares of the Preferred Shares held by it are converted at the New Issue Price. XD granted a security interest to MSPEA in 16,000,000 shares of Common Stock of the Issuer that it owns. These shares of Common Stock serve as collateral for the obligations of XD and Mr. Jie Han to transfer shares of Common Stock to MSPEA, comply with restrictions on transfer of their shares of Common Stock, as well as perform their other obligations to MSPEA.
F9(cont'd from FN8) The maximum number of shares of Common Stock that MSPEA may receive upon, or in connection with, conversion of the Preferred Shares (including shares of Common Stock delivered by the Issuer and shares of Common Stock transferred by XD and Mr. Jie Han) may not exceed 33% of the shares of Common Stock outstanding as of September 28, 2011 on a fully-diluted basis. MSPEA has the right to require the Issuer to redeem the Preferred Shares upon specified triggering events at a redemption price that will provide MSPEA with an internal rate of return of 15% on its investment in the Preferred Shares.