NEW MATERIAL:An azulene derivative shown by formula I (R is alkyl; X is Br or cyano).

EXAMPLE: 2-Acetoxy-6-bromazulene.

USE: A liquid crystal element of liquid crystal composition. The liquid crystal composition containing the azulene derivative has characteristics of showing negative dichroism or low dichroism approximately zero. By using hue collection of guest host type mode, liquid crystal element having more increased display effects can be developed.

PREPARATION: A compound shown by formula III is obtained from a compound shown by formula II and then reacted with a compound shown by the formula (RCO)2O or a compound shown by the formula RCOCl to give a compound shown by formula I' wherein X is Br in a compound shown by formula I. Further the compound shown by formula I' is reacted with cuprous cyanide to give a compound shown by formula I'' wherein X is cyano in the compound shown by formula I.