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| Recycling Plants Captures the Opportunities Arising from the "One Belt One Road" Strategy |
HONG KONG, May 14, 2015 - (ACN Newswire) - medium-to-large scale asphalt mixing plant manufacturer and service provider D&G Technology Holding Company Limited, announced to offer 150,000,000 shares, 90% of which are for the International Offering and the remaining 10% for the Hong Kong Public Offer, at an offer price range of HK$1.82 to HK$2.40 per share to raise up to HK$360 million.
The Hong Kong Public Offer will begin today til next Tuesday (19 May), and its shares is expected to commence on 27 May with lots of 2,000 shares. Net proceeds will be used to finance the expansion of manufacturing facilities, research and development activities, the development of new businesses, the expansion of sales and distribution networks and for working capital and other general corporate purposes. BOCOM International and Guotai Junan Securities (Hong Kong) are the joint bookrunners and joint lead managers.
D&G Technology ranked second based on the sales volume of medium-to-large scale asphalt mixing plants manufactured in China in 2013 with a market share of 13.8%. The Group's core products include conventional plants and recycling plants. The Group also offers asphalt mixing plant customer services including sales of spare parts and components as well as leasing of asphalt mixing plants through operating leases. Benefited from "One Belt One Road", the launch of 4000 and 5000 model series conventional plants enhances the productivities.
The Group launched recycling plants like "Double Drum" recycling plants with a 50% designed RAP(reclaimed asphalt pavement) and the "Recycling Ring" recycling plants, in which makes a significant breakthrough of the industry. The Group has joined number of major construction projects in the PRC, including Beijing-Tibet Highway, Beijing-Hong Kong-Macau Highway, Jiaozhou Bay Bridge and Hangzhou Bay Bridge.
With headquarters in Hong Kong and a production base in Langfang, Hebei, the Group's products are sold to many municipalities and autonomous regions in China and 18 overseas countries. It has sold more than 300 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 recorded stable growth driven by the construction and maintenance of roads. The CAGR of total revenue between 2012 and 2014 was 10.4%. Thanks to the Group's efforts in promoting recycling plants, its sales has grown rapidly and the CAGR of the sales revenue of recycling asphalt mixing plants reached 88.1%, making it the main growth driver. The Group also boasted high operational efficiency with net profit achieving a CAGR of 29.3% between 2012 and 2014, and its net profit margin reached 18.7% in 2014.
D&G Technology introduced to the market the "DG Leap" automated control system, a real-time production management system which can automatically control the operation of the asphalt mixing plant, collect and analyze production data and provide maintenance recommendations to customers in a timely manner. And A remote monitoring system was subsequently developed and added to "DG Leap" in 2010. To date D&G Technology has 39 registered patents in PRC, of which 3 were invention patents and 36 were utility model patents, in addition to 22 software copyrights in the PRC.
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. The government's freeway development plan calls for the construction of 7 radial lines, 9 longitudinal lines and 18 transverse lines, with an available mileage of 108,000 kilometres. The total length of expressways, first grade highways and second grade highways to be repaired could reach approximately 120,000 km.
CEO of D&G Technology, Ms. Glendy CHOI said, "We will strive to expand annual production capacity and R&D capabilities, upgrade its factory to keep in line with market trends and demand, to increase the outsourcing of non-key parts or components to subcontractors, thereby enhancing production efficiency. The Group will also conduct research and development to introduce low-energy consumption products with environmentally friendly features and high mobility products. The Group will further expand overseas market and 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."
Topic: Press release summary
Source: D&G Technology Holding Co Ltd
Sectors: Daily Finance
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From the Asia Corporate News Network
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