The board of directors of D&G Technology Holding Company Limited informed the shareholders of the company and potential investors that, based on the information currently available to the Board and a preliminary assessment by the management of the Company with reference to the unaudited management accounts of the Group for the five months ended 31 May 2018, it is expected that the Group will incur a net loss for the six months ended 30 June 2018 as compared to a net profit of approximately RMB 14.1 million for the six months ended 30 June 2017. The expected loss was primarily attributable to the drop in revenue of the Group from the sales of and operating lease of asphalt mixing plants and an increase in provision for impairment loss on trade receivables. The Group expects the revenue for the six months ended 30 June 2018 to decrease by approximately 25% to 30% as compared with the last corresponding period. The decrease in revenue was mainly due to the delay in public-private partnership projects in China. The increasingly stringent environmental protection requirements in China affected the progress of the Group's customers in obtaining local government approval for jobsite construction and hence caused delay on the installation and commissioning of asphalt mixing plants. For the same reason, the collection of outstanding trade receivables from the customers of the Group remained slow during the period and the Group expects the provision for impairment loss on trade receivables to increase although the extent thereof is not yet known.