The board of directors of D&G Technology Holding Company Ltd. announced that based on the preliminary review of the Group's unaudited consolidated management accounts for the year ended 31 December 2015, the Group expects to record a decrease in turnover as compared to that for the year ended 31 December 2014. It will result in the decrease in profit attributable to the equity shareholders of the company, excluding listing expenses, of approximately 15%, whereas the decrease in the profit attributable to the equity shareholders of the company is expected to be approximately 30% as compared to that for the year ended 31 December 2014. Based on the information currently available to the Group and the preliminary assessment made by the management of the Group, the decrease in the unaudited profit attributable to the equity shareholders of the company on a year-on-year basis is mainly attributable to the fact that although China has continued its plan to increase the investment in infrastructure projects, the funds for such infrastructure projects have not been available as planned in recent months, resulting in the decrease in turnover of the Group from the sales of asphalt mixing plants, spare parts and components and the provision of equipment modification services in China in the fourth quarter of 2015 and the recognition of listing expenses.

As the funds for the infrastructure projects have not been available as planned in recent months, the Group has noted that the capital and cash flow in the road construction and maintenance industry has become tighter and slower than expected. Therefore, the collection of outstanding trade receivables from the customers of the Group has been slower than that for the year ended 31 December 2014. As a result, the Group may have to increase the amount of the non-cash accounting provision for impairment losses of trade receivables according to its provision policy which may result in a decrease in the profit attributable to the equity shareholders of the company for the year ended 31 December 2015 of more than 30% mentioned above.