The Group considers that the prospect of the road maintenance industry is positive. China’s yearly highway maintenance cost is expected to reach RMB 400 billion during the “13th Five-Year Plan,” while “One Belt & One Road Initiative” will bring new opportunities to highway transport. The two companies intend to establish cooperation and seize new business opportunities to achieve a win-win situation in equipment sales, engineering projects and other services.
About Dagang Company
Dagang Company is a Shenzhen-listed high-tech enterprise specialized in research and development, manufacture and service of road construction and maintenance machinery and equipment, and general contracting of domestic and overseas projects.
About Freetech Road Recycling Technology
Freetech Road Recycling Technology is the asphalt pavement maintenance (“APM”) service provider renowned in the sector for its Road Doctor brand with patented Hot-in-Place Recycling Technology, as well as the manufacturer and seller of a wide range of APM equipment. As of 30 June, 2015, the Group owned 108 registered patents and had 6 pending patent applications in Hot-in-Place Recycling Technology and related equipment.