D&G Technology Holding Company Limited (01301.HK)

The history of the business can be traced back to 1999 when Beijing D&G Machinery Company Limited was established to manufacture and sell asphalt mixing plants in the PRC, conduct research and development, and provide various ancillary services.

In order to better and more efficiently serve the customers in Southern China, the Company established the second manufacturing facility in Shenzhen in 2003. In 2006, in view of (i) the increasing market demand for asphalt mixing plants, (ii) the strategic plan to further expand the business; and (iii) the fact that the Beijing and Shenzhen manufacturing facilities were already heavily utilised at that time, the Company established the third manufacturing facility, which was larger than the Beijing facility and the Shenzhen facility combined in terms of floor space, in Langfang, Hebei Province. The Company then gradually transferred the various manufacturing and research and development activities from Beijing D&G Machinery Company Limited to Langfang D&G Machinery Technology Company Limited. In order to take advantage of the economies of scale in manufacturing and to streamline the corporate structure for more efficient and centralised management, the Company also gradually transferred the business in Shenzhen D&G Machinery Company Limited back to Langfang D&G Machinery Technology Company Limited...