Overview

We are a leading market player in the PRC focusing on the production of medium to large scale asphalt mixing plants. We specialise in the research and development, design, manufacturing and sale of asphalt mixing plants and we provide one-stop customised solutions to our customers in the PRC and abroad. Our products are mainly conventional hot-mix asphalt mixing plants and hot-mix asphalt mixing recycling plants. They are used for the production of asphalt mixtures, an essential material used in road pavements for asphalt road construction and maintenance projects. According to the report on the asphalt mixing plant manufacturing industry in the PRC prepared by the CCID Consulting Company Limited (hereafter refer to as the "CCID report"), a professional market research and consulting firm commissioned by the Company, in 2013, based on the sales volume of medium to large scale asphalt mixing plants manufactured in the PRC, we ranked second with a market share of approximately 13.8%. According to the CCID report, medium to large scale asphalt mixing plants are mainly used in the construction of new expressways, being the top-tier highways in the PRC.  In addition, medium scale asphalt mixing plants are also used in the construction of new first grade and second grade highways, the high-grade highways in the PRC, as well as the construction and maintenance of major urban roads.

Our products play an important role in expressway and highway construction and municipal road maintenance projects covering approximately 30 provinces, municipalities and autonomous regions in the PRC. Over the years, we have sold our products to customers or end-users located in 18 overseas countries. We were one of the suppliers of asphalt mixing plants in a number of major construction projects in the PRC, including the Beijing-Tibet Highway (京藏高速), Beijing-Hong Kong-Macau Highway (京港澳高速), Jiaozhou Bay Bridge (膠州灣大橋) and Hangzhou Bay Bridge (杭州灣大橋). Hangzhou Bay Bridge is one of the longest trans-oceanic bridges in the world. We operate mainly in the road construction and maintenance machinery industry in the PRC.

Our business primarily consists of the (i) design, manufacturing and sale of asphalt mixing plants; (ii) sale of spare parts and components and provision of equipment modification services; and (iii) leasing of our asphalt mixing plants by way of operating lease. Over the years, we have sold over 300 units of asphalt mixing plants to customers mainly in the PRC and some in overseas emerging markets and developed countries, including Australia, Russia, India and various countries in Africa.

We offer a broad range of products covering small to large scale asphalt mixing plants to cater to the needs of different customers. The asphalt mixtures produced by our asphalt mixing plants can be used in the construction or maintenance of all levels of roads and highways in the PRC. Our products can broadly be divided into two main categories:

  1. conventional hot-mix asphalt mixing plant (“Conventional Plant”) and;

  2. hot-mix asphalt mixing recycling plant (“Recycling Plant”).

Our Conventional Plants are able to produce regular asphalt mixtures which contain, among others, bitumen, aggregates and fillers. Our Recycling Plants are able to produce:

  • recycled asphalt mixtures which contain a mixture of reclaimed asphalt pavement (“RAP”) and new materials such as aggregates, fillers and bitumen; and
  • regular asphalt mixtures. We are able to convert a Conventional Plant into a Recycling Plant by installing components with hot-mix asphalt mixing recycling functions developed by us into the Conventional Plant to enable the plant to produce both regular and recycled asphalt mixtures.

The designed RAP added capacity of our Recycling Plants is between the range of 15% to 60%.

We are committed to developing and promoting our Recycling Plants as we expect this to be a major area of growth for the industry. According to the CCID report, it is estimated that hot-mix recycling technology will be adopted in a majority of roads maintenance projects in the PRC in the next three to five years, which is also the technology adopted by us in our Recycling Plants. In light of the PRC government’s policies encouraging the use of pavement recycling maintenance technologies, we expect that the demand for Recycling Plants will increase. We have been the first to develop and launch a number of Recycling Plants in the PRC.According to the CCID report, we were the first manufacturer to manufacture and launch Recycling Plants with 15% designed RAP added capacity and Double Drum Recycling Plants with 50% designed RAP added capacity in the PRC in 2003. We were also the first to manufacture and launch the Recycling Ring Recycling Plants in the PRC in 2009 and we developed the first Monoblock Recycling Plant in the PRC in 2014, according to the CCID report.