D&G TECH Sales Volume of Asphalt Mixing Plants Ranked Second with A Market Share of Approximately 13.8% in China

Date: 2015-09-17

The history of the Company can be tracked back to 1999 when Beijing D&G was founded by Choi Family Founders to manufacture and sell asphalt mixing plants in China. In 2003, the Company established Shenzhen D&G to better and more efficiently serve customers in Southern China. Later in 2006, as the Company鈥焥 Beijing and Shenzhen manufacturing facilities were heavily utilised, in order to meet the increasing market demand for asphalt mixing plants the Company set up Langfang D&G in Hebei and then gradually transferred various manufacturing and R&D activities from both Beijing and Shenzhen to Langfang D&G, aiming to take advantage of the economies of scale in manufacturing and to streamline its corporate structure for more efficient and centralised management. In 2010, Tianjin D&G was established to engage in the leasing business of the Company鈥焥 asphalt mixing plants and later the interests of Tianjin D&G was transferred to Langfang D&G and became the wholly owned by the latter. The Company currently manufactures its products at the manufacturing facilities in Langfang with a total area of approximately 131,856 square meters and the annual production capacity of the Company鈥焥 manufacturing facilities was 50 units per year in 2014.

The Company is a leading provider of medium to large asphalt mixing plants in China. It specialises in R&D, designing, manufacturing and selling of asphalt mixing plants and also provides one-stop customised solutions to customers. Products of the Company are used for the production of asphalt mixtures, an essential material used in road pavements for asphalt road construction and maintenance projects. In 2013, the Company’s sales volume of medium to large scale asphalt mixing plants ranked second with a market share of approximately 13.8% in China.

The Company has positioned itself as an innovative enterprise with great emphasis on technological innovation and research and development. It has been the first to develop and launch a number of recycling plants in China and is one of a few manufacturers in are capable of manufacturing on a mass production scale 5000 model series asphalt mixing plants (currently the largest asphalt mixing plant by production capacity). The Company also strives to manufacture asphalt mixing plants with environmental-friendly and energy saving features. It helps to reduce the level of energy consumption and emission of dust, smoke and noise. Asphalt mixing plants manufactured by the Company are able to maintain their dust emission level at approximately 70 mg/Nm3 or less, which is lower than the requirement under the PRC national standard of 100 mg/Nm3. In addition, the asphalt mixing plants are able to maintain fume blackness level at Ringelmann level 1 and the noise in the control room (NCC) is generally lower than 70 dB and these standards are amongst the highest in terms of environmental protection in China.

The Company鈥檚 business primarily consists of three parts: (i) manufacturing and sale of asphalt mixing plants; (ii) provision of equipment modification services and sale of machinery components and parts for asphalt mixing plants; and (iii) leasing of asphalt mixing plants by way of operating lease. The cornerstone business was selling asphalt mixing plants, which accounted for 86.8% of the total revenue as at 31 Dec 2014. 


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