Corporate Profile

Company Introduction

D&G Technology is a leading medium-to-large-scale asphalt mixing plant manufacturer and service provider in China. The Group’s core products include conventional hot-mix asphalt mixing plants (“conventional plants”) and hot-mix asphalt mixing recycling plants (“recycling plants”). Asphalt mixtures produced by D&G Technology’s plants are used in road construction and maintenance projects, including the construction and maintenance of all grades of roads and highways. The Group also offers asphalt mixing plant customer services including sales of spare parts and components and provision of equipment modification services and leasing of asphalt mixing plants through operating leases.

Established in 1999, with headquarters in Hong Kong and a production base in Langfang, Hebei, D&G Machinery, the subsidiary of D&G Technology, was certified as a high-technology enterprise and enjoys preferential enterprise income tax rate of 15%. The Group’s products are sold to many municipalities and autonomous regions in China and 20 overseas countries. It has sold nearly 400 units of asphalt mixing plants to customers in China and overseas emerging markets and developed countries including Australia, Russia, Southeast Asia, Middle East, India and countries in Africa. The Group is also one of the suppliers of asphalt mixing plants in a number of major construction projects in the PRC, including Beijing-Tibet Highway, Beijing-Hong Kong-Macau Highway, Jiaozhou Bay Bridge and Hangzhou Bay Bridge.

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Business Overview

Since 2003, through the development and launch of the 4000 model series of asphalt mixing plants and the “Double Drum” recycling plants with a 50% designed RAP(reclaimed asphalt pavement) added capacity, we have led the industry in China, achieving many “firsts” in the past 13 years. In 2004, the successful development of the “DG Leap” automated control system enabled the Group to build close relationships with customers over the years. We are one of the few companies that can supply one-stop asphalt mixing plants. In 2009, we were the first to launch the 5000 model series conventional plants and the “Recycling Ring” recycling plants. In 2014, we led the industry through the launch of the first “Monoblock” recycling plant in China.

To date D&G Technology has 41 registered patents in PRC, of which 3 were invention patents and 38 were utility model patents, in addition to 22 software copyrights in the PRC. D&G Technology has a strong in-house professional R&D team and innovative capability. The Group has also cooperated with research institutions and universities in China, including the Research Institute of Highways, the Ministry of Transport and the Institute of Tsinghua University, Hebei. In 2012, we began our collaboration with the Institute of Tsinghua University, Hebei to establish the “Resources Recycling Intelligent Equipment Technology Institute, the Institute of Tsinghua University, Hebei and D&G” (河北清華發展研究院德基資源循環利用智能裝備技術研究所). We entered into a proposal regarding the project on the establishment of the “Hebei Asphalt Pavement Intelligent Equipment Technology Research Centre” (河北省瀝青路面智能裝備工程技術研究中心) jointly with The Research Institute of Highway, the Ministry of Transport and the Institute of Tsinghua University, Hebei in 2014. The project researched on areas including new Recycling Plants, RAP recycling and warm mix process, new mixing plants with recycling and environment friendly features and new multifunctional mixing plants.

D&G Technology’s products are efficient, reliable, safe and environmental-friendly and won high praise. We were the first asphalt mixing plant manufacturers in the PRC that have acquired the CE mark, a certification which is recognized worldwide. We are the council member of China Construction Machinery Association (中國工程機械工業協會), the Vice President of China Construction Machinery Association Road Machine Chapter (中國工程機械工業協會筑路機械分會) and the Vice President of the China Highway Construction Machine Branch (中國公路學會筑路機械分會). Our “D&G” brand is recognized as a “Well-known Trademark of Hebei Province”. In addition, the company’s high-quality products and services are appraised by the government. We as an equipment supplier have participated at a number of major infrastructure projects and we have collaborated with Research Institute of Highways, the Ministry of Transport, to jointly launch the national technology support program. In 2015, the company’s technology center was assessed and certified as Provincial Enterprise Technology Center, and this will further increase the involvement and role of technological innovation of our technology center. We have also been awarded by the World Construction Machinery Industry (全球工程機械產業大會) the “China Top 50 Construction Machinery Manufacturers” for five consecutive years.

Future Development

The Group is poised to capture the development opportunities presented by recently launched favourable Chinese government policies. Since the second half of 2014, the National Development Reform Council has approved infrastructure projects involving investment of more than RMB1 trillion. In addition, the PRC government is to contribute US$40 billion to set up a Silk Road Fund to provide investment and financing support to carry out infrastructure, resources, industrial cooperation, financial cooperation and other projects related to closer connections across Asia. This policy directive provides significant potential for further growth in asphalt mixing plants with recycling features. D&G Technology will participate at the interconnection construction of “One Belt One Road”, to develop the sustainable green products with energy-saving, environmental-friendly, recycling and efficient features, so that our customers can enjoy our Chinese national brand with superior quality and service.

In addition, the Ministry of Transport proposed to concentrate and accelerate the "four traffic" development. This "four traffic" refers to integrated traffic, intelligent traffic, green traffic, safe traffic. Among which the core development of green traffic is based with resources and environment carrying capacity. The goals include resource conservation, energy efficiency enhancement, emissions control and environmental protection, as well as accelerating the construction of green recycling low carbon transportation infrastructure. D&G’s environmental-friendly recycling equipment can effectively play a strong positive role in highway construction, renovation and maintenance processes. The reuse of RAP is in line with the general direction of the country towards "green traffic" and environmental-friendly recycling economy. It is also very effective for users to reduce overall costs and seek the support of national policies.

To tap the enormous market opportunities, the Group will strive to expand annual production capacity and upgrade its factory to enhancing production efficiency. The Group will also conduct research and development to introduce low-energy consumption products with environmentally friendly features in line with market trends and demand and high mobility products suitable for shipping to overseas countries that address the needs of the local and overseas markets. The Group will also expand its technology research centre currently located in the manufacturing facilities in Langfang, Hebei, as well as strengthen relationships with organisations including the university research institute. These measures will improve overall research and development capabilities and the technological standard, thereby helping the Group to maintain its leading position in the asphalt mixing plant industry.

It is expected that the market demand for recycling plants will grow driven by the positive impact of the various national policies. We also expect the increase of production capacity of our recycling plants and introduction of new asphalt mixing plants with recycling features would enable us to capitalise on market opportunities. We are focusing on creating products with cutting-edge technology and the research and production of key parts and components. We are also developing new asphalt mixing plants with low energy consumption which are more environmentally friendly. Meanwhile, we are continuing to promote our equipment and systems modification services, particularly services improving energy-saving capability and the addition of recycling functions to conventional plants. At the same time, we are increasing the sales proportion of equipment modification services and equipment leasing in order to boost our profitability. Moreover, we also plan to extend our value chain upstream and downstream including industrialisation of key components and engaging in commodity asphalt mixture sales with our own asphalt mixing plants, aiming to create a stable revenue source and facilitate the Group’s development into a leading one-stop asphalt mixing plant service provider in China over the long term.