Huazhang Technology Achieved Contracted Sales of RMB462.6 million in September Surged by 25 times y-o-y, Intended to Purchase Two Precision Screening Equipment Manufacturers to Enhance Services for the Entire Industry Chain

HONG KONG, CHINA - Media OutReach - 3 October 2017 - Huazhang Technology Holding Limited ("Huazhang Technology" and its subsidiaries, together, the "Group", stock code: 1673) pleased to announce that, in September 2017, the Group achieved contracted sales of RMB462.6 million, representing a year-on-year increase of 25.0 times. As at 30 September 2017, the Group has not yet completed the sales contract amounts of RMB988.2 million, such contracts are expected to be completed within the next 18 months. The Group also announced yesterday that it intended to purchase the 100% equity interest in Gu'an Anteng Precision Screening Equipment Manufacturing Co., Ltd. (固安安騰精密篩分設備製造有限公司) ("Anteng Precision Screening") and Gu'an Tengfei Screening Plates Co., Ltd. (固安騰飛篩板有限公司) ("Tengfei Screening Plates"). 

Anteng Precision Screening and Tengfei Screening Plates are leading manufacturers of precision screening equipment in the PRC. They are principally engaged in the R&D, manufacturing and sale of precision screening equipment, which is a core part of paper-making related production machineries for pressure screening, and exports to countries in Europe and Southeast Asia. The Group expected that, based on the demands on localized core parts from paper-making enterprises in the PRC, after this acquisition, the customers would be able to reduce imports of core parts from foreign countries and therefore have a better control on its purchase cost. This Proposed Acquisitions are in line with the Group's strategies "Continue Strategic Acquisition and Enhance Industry Chain Service", which was set earlier. The Group continues to seek proper acquisition opportunities to enhance services for the entire industry chain of the papermaking industry and provide professional, all-encompassing services. In May 2017, the Group also acquired two leading Chinese distributors of headbox. 

Mr. Zhu Gen Rong, the chairman of Huazhang Technology Holding Limited, said, "With the joint efforts of all staff, we have achieved remarkable result of contract sales in September. In the future, riding on the capabilities of the two manufacturers in the production of the core parts, the Group would be able to offer more comprehensive products to our customers by not only supplying the project contracting services and automation systems, but also supplying the core parts. As such core parts are consumables and require regular replacements, we will be able to maintain a more stable and closer customer relationship. At the same time, we can have an additional stable income stream." 

About Huazhang Technology Holding Limited 

Huazhang Technology Holding Limited is an integrated service provider in paper-making industry and its principal business includes project contracting service, research and development, manufacture and sale of industrial automation systems, sludge treatment products and headbox, and after-sales and maintenance related services. The Group has been in the paper-making industry for over 16 years. The Group's self-manufacturing system and equipment are custom-built in accordance with the specifications and requirements provided by the Group's customers, which include various papermaking enterprises in the PRC. The group strives to become a leading solution provider and comprehensive service provider for the papermaking industry in the PRC.