D G Technology announces positive profit alert

HONG KONG, CHINA - Media OutReach - 27 July 2017 - D&G Technology Holding Company Limited ("D&G Technology" or the "Group"; HKSE: 1301.HK), a leading medium-to-large scale asphalt mixing plant manufacturer and service provider in China, is pleased to announce that the Group expects its profit attributable to the equity shareholders of the Company for the six months ended 30 June 2017 to increase by approximately 53% as compared to the same period last year.

The increase is mainly due to the increase in revenue by approximately 46% and partly offset by the increase in distribution costs and research and development expenses. The increase in revenue was primarily attributable to the increase in demand of asphalt mixing plants resulting from the increase in road construction projects both in China and overseas countries. In particular, the demand for recycling asphalt mixing plants in China increased significantly, due to the advocacy of the national environmental protection policies in China.

Ms. Glendy Choi, CEO and Executive Director of the Group, said, "Investment in infrastructure is one of the key drivers of economic growth and we are glad to see the increase in road construction projects not only in China but also along the One Belt One Road countries. With the advocacy of environmental protection policies in China, we expect there shall be a continuous growth in demand of recycling and high environmental protection configuration asphalt plants. The Group will also carry onto grasp the opportunities in the "One Belt One Road" region to develop its business and explore potential overseas markets. With unceasing technological innovation and investments in research and development, the Group is confident to remain as a leading player in the market and will use our best endeavors to bring better returns to the shareholders of the Company."

About D&G Technology Holding Company Limited

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 and hot-mix asphalt mixing recycling plants. Asphalt mixtures produced by these plants are used in 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. With headquarters in Hong Kong and a production base in Langfang, Hebei, D&G Technology is certified as a high-technology enterprise in Hebei and enjoys a preferential enterprise income tax rate of 15%. Its products are sold to most provinces, municipalities and autonomous regions in China. The Group has asphalt mixing plants projects in a total of 23 countries, including Australia, Russia, India, Thailand and Brunei, etc. For more details, please refer to: www.dgtechnology.com.