D&G Technology Expanded its R&D Team in Guangzhou to facilitate Green Development in Greater Bay Area;
CEO Glendy Choi Appointed as Vice President of the GBA Carbon Neutrality Association

Meanwhile, D&G Technology has become the founding organization of the GBA Carbon Neutrality Association (“GBACNA"), with Ms. Choi Kwan Li, Glendy, the Executive Director and Chief Executive Officer of D&G Technology being appointed as the Vice President of the GBACNA, to leverage on D&G Technology’s technical competitive advantages and the digitalized systems to achieve carbon reduction in the industry. She said, “It’s my great honor to be part of the GBACNA and join hands with the industry experts from the political and business circles to facilitate the green development in the GBA and respond to the national’s “Double Carbon” initiatives.”

D&G Technology Cooperated with Tsinghua University
to Jointly Develop Low-NOx Burner Technology
for Promoting Low-Carbon Development

(23 December 2021 – Hong Kong) D&G Technology Holding Company Limited (Stock Code: 1301.HK), the “China’s Top 50 Construction Machinery Manufacturer” for 8 consecutive years and the “World Top 100 (Plus 50) Construction Machinery Manufacturer” for 5 consecutive years, is pleased to announce that the Group has signed a Letter of Intent with Department of Energy and Power Engineering, Tsinghua University to collaborate on boosting the marketing and applications of ultra-low NOx burner technology in China, with the aim of helping enterprises to carry out the green transformation with advanced technology and actively participating in the China’s national policy on the air pollution prevention and control.

D&G Technology and Tsinghua University has carried out pilot studies on developing the ultra-low NOx burner technology and yielded good results with positive feedbacks from the users. After signing the recent Letter of Intent, both parties will further study the market prospects and policy requirements for ultra-low NOx burners and related technologies in China, and leverage on existing resources to commercialize the research outcomes from industries, universities and R&D institutes. Both parties will also consider about forming a joint-venture company to carry out long-term works with technical research directions and roadmap.

Ms. Choi Kwan Li, Glendy, the Executive Director & Chief Executive Officer of D&G Technology, commented, “In response to the national policy on air pollution prevention and carbon neutrality, D&G Technology has been working with national elite from Tsinghua University to develop an ultra-low NOx burner. D&G Technology always places great emphasis on promoting green applications. We developed environment-friendly asphalt mixing equipment and recycling asphalt mixing plants, among which burner is the core component of D&G Technology’s product. Through this collaboration, D&G Technology will leverage its extensive industry experience and advanced technology to further develop products with improving functions of emission reduction and energy saving. We shall also seek to expand our product portfolio and continuously contribute to achieve the national goal of carbon peaking and carbon neutrality.”

D&G Technology Signed a Strategic Partnership Framework Agreement with China Resources Cement
to explore Southern and South-western China with establishment of
Commercialised Asphalt Mixture Production Sites

([-]November 2021 – Hong Kong) D&G Technology Holding Company Limited (Stock Code: 1301.HK, together with its subsidiaries, collectively “the Group”), which was awarded the “China’s Top 30 Construction Machinery Manufacturer” for 8 consecutive years, is pleased to announce that the Group has signed a strategic partnership framework agreement with China Resources Cement Holdings Limited (Stock Code: 1313.HK, “China Resources Cement” or “CRC”), to explore collaborations in certain fields including the design and manufacturing of equipment, commercialisation of asphalt mixture, equipment intelligence, and scientific research and development and technical talent cultivation in Hong Kong. On 22 October, both parties participated in the strategic partnership framework agreement signing ceremony and held the first working meeting in Shenzhen. The strategic partnership with CRC is the Group’s second collaboration with a large-scale enterprise following the strategic partnership with another SOE LiuGong Wuxi Road Equipment Company Limited in June 2021. The Group has once again demonstrated its well-recognised experience and technical edges in the operation of high-end equipment, undoubtedly leading to a win-win situation in the businesses that the Group and CRC have synergies.

According to the strategic partnership framework agreement, both parties will work together to establish stationary green asphalt mixture production bases in southern and south-western China by leveraging the Group’s expertise and technical know-how capabilities in the manufacturing and operation of high-end recycling asphalt mixing plants and the support of CRC’s excellent distribution channels and leading industry position in the region. In addition, both parties will explore further collaborations in regard to cement equipment digitalization, large equipment design and manufacturing technologies, as well as scientific research and development and technical talent cultivation in Hong Kong.

Ms. Choi Kwan Li, Glendy, the Executive Director & Chief Executive Officer of D&G Technology, commented, “The collaboration with the leading construction materials enterprise China Resources Cement has once again showcased our well-recognised capabilities in the high-end environment-friendly asphalt mixing plant field. Through this strategic partnership, both parties will jointly establish the stationary green asphalt mixture production bases in southern China, where CRC has a leading market position in the supply of cement and concrete. This amplifies the Group’s business at the same time, achieves greater economic benefit and secures a mid to long-term development, and eventually generates more returns to the shareholders.”

In June 2021, D&G Technology announced its strategic partnership with LiuGong Wuxi Road Equipment Co., Ltd. The Group would design and manufacture a new series of asphalt mixing plants for the local and overseas sale of LiuGong Road Equipment. Guangxi LiuGong Group Co., Ltd. is a state-owned enterprise that primarily engages in construction machinery (including road machinery), agricultural machinery, and modern services.

The Group is committed to the development of asphalt related business along the supply chain with an aim to broaden income sources and raise profits. In order to leverage the synergies of local expertise, the Group has been seeking potential strategic partners to develop the production and sale of asphalt mixtures business.

In July 2018, the Group’s subsidiary Langfang De Feng New Materials Technology Limited (“Langfang De Feng”) and Sichuan Xin De Yuan Trading Limited (“Sichuan Xin De Yuan “) jointly established Sichuan Rui Tong De Long New Materials Technology Limited (“Sichuan RTDL”). The Group expected that with the leverage of local expertise of Sichuan Xin De Yuan, the establishment of Sichuan RTDL would push forward the application of asphalt mixing plant station with local government in Sichuan. However, the progress of development of asphalt mixing plant station remained slow since the joint venture was formed. On 30 May 2021, Langfang De Feng entered into a share transfer agreement with Sichuan Xin De Yuan to transfer 50% of equity interest in Sichuan RTDL to its joint venture partner for a consideration of approximately RMB2.4 million. Upon the completion of the share transfer, Sichuan RTDL will no longer be a joint venture of the Group. The Group’s management considered that the share transfer offers an opportunity for the Group to realise its investment at a profit and can provide funds to cater for other new suitable investment opportunities with more growth potential in the development of production and sales of asphalt mixture plant business.

In May 2021, the Group has entered into an agreement with LiuGong Road Equipment to become the exclusive supplier of asphalt mixing plant for LiuGong Road Equipment. The Group will research and develop, design and manufacture products under the label of “LiuGong”. The Group expects this strategic partnership will further penetrate the mid-end asphalt mixing plant market to win more orders and expand its revenue stream. Furthermore, the collaboration enables LiuGong Road Equipment to enrich and improve its one-stop road construction equipment solution to achieve a win-win situation.

The Group expects that the local demand for asphalt mixing plants in the second half of 2021 shall gradually increase as the PRC government would inject more funds into domestic infrastructure projects to stimulate the local economy. Management also expects the customers shall accelerate the settlements going forward as more road construction projects and funding shall be in place in China. With its established overseas network and high-technology asphalt mixing plants, the Group is prepared to grasp the opportunities of upgrading asphalt mixing plant technology and equipment in countries in South Asia and in the ASEAN region. To utilise the Group’s wide clientele base of over 600 asphalt plants spreading across the PRC and 35 nations overseas, the Group is also exploring business opportunities in developing business upstream into the road construction and maintenance materials equipment and downstream into the asphalt mixture provision. The Group will however manage its business development strategies cautiously due to the relatively volatile international economic and political conditions.

Ms. Choi Kwan Li, Glendy, the Executive Director & Chief Executive Officer of D&G Technology said: “In view of the ongoing US-China trade war and COVID-19, we believe the PRC government will continue adopting policies to stimulate the local economy and increase the fixed asset investment. Besides, in light of growing awareness on environmental protection issues during the asphalt mixture production among the road construction and maintenance companies and the PRC government’s emphasis on reducing pollution from industrial sector, the demand for our recycling and environmentally-friendly products continue to grow in the long run. There will be increasing demand for the recycling asphalt plants as well as the modification services of adding recycling and environmental protection functions to existing plants. The Group will further promote green technology innovation and continue to improve its competitive advantage so as to reinforce its leading position in the market. Looking ahead, the Group is prepared to grasp the business opportunities arising from the “Belt and Road” construction projects and bring substantial returns to our shareholders.”

Become the Exclusive Supplier of Asphalt Mixture Mixing Equipment
Tap into Domestic and Overseas Markets Together

26 May 2021 - D&G Technology Holding Company Limited (Stock Code: 1301.HK, together with its subsidiaries, collectively the “Group”), which was awarded the “China’s Top 30 Construction Machinery Manufacturer” for 8 consecutive years, is pleased to announce that the Group has reached a strategic partnership with LiuGong Wuxi Road Equipment Co., Ltd. (“LiuGong Road Equipment”), to achieve complementary advantages and a win-win result. The Group will design and manufacture a new series of asphalt mixing plants for LiuGong Road Equipment, which will be distributed and sold in domestic and overseas markets.

According to the agreement, the Group will become the exclusive supplier of asphalt mixing equipment for LiuGong Road Equipment. The Group will research & develop, design and manufacture products under the label of “LiuGong”, by leveraging its technical strength, as well as LiuGong’s well-established distribution network and strong financial services capabilities, to sell the products to domestic and overseas markets. The Group expects this strategic partnership will further penetrate the mid-end asphalt mixing plant market to win more orders and expand its revenue stream. Furthermore, the collaboration enables LiuGong Road Equipment to enrich and improve its one-stop road construction equipment solution to achieve a win-win situation.

Ms. Choi Kwan Li, Glendy, Executive Director & Chief Executive Officer said, “As a leading manufacturer and service provider of medium to large-scale high-end asphalt mixing plants in China, D&G has strived to develop its business in all directions and further penetrate the road construction market in China, as well as the countries along the "Belt and Road Initiative". By partnering with LiuGong Road Equipment, the world's leading construction machinery manufacturer, it is expected to generate magnificent synergies and promote our business development in mid-end asphalt mixing plant market. Looking forward, we will pay close attention to co-seize the potential opportunities in global market, as well as the business opportunities brought by the "Belt and Road Initiative", in order to generate synergies between businesses and bring greater returns to our shareholders.”