Used as an intermediate in organic synthesis, particularly in the preparation of pharmaceuticals and agrochemicals. Its functional groups allow for selective reactions, making it valuable in constructing complex molecules. The nitro group can be reduced to an amine, enabling further derivatization, while the malonate ester moiety supports carbon chain extension through alkylation or condensation reactions. Commonly employed in the development of active ingredients requiring nitroaromatic or carboxylic acid derivatives.