The increase in the net profit of the Group was mainly attributable to success in the acquisition of the headbox business in September 2017 which contributed additional revenue and profits to the Group; and success to diversify its business from purely manufacturers to comprehensive service providers. 

The businesses of project contracting service and supporting services are fast growing, as a result, revenue and profits of the Group were increased.

The Group has completed the acquisition of Hangzhou MCN Paper Tech Co., Ltd. and Hangzhou Haorong Technology Co., Ltd. in September 2017. The two companies own patents and know-how in headbox production. 

The acquisition was able to diversify the Group's products and grant the Group access to one of the core technologies of paper-making production equipment. Furthermore, in November 2017, the Group completed the acquisition of a logistics and warehousing business in benefits on promoting all-rounded services to papermaking enterprises.

Mr. Zhu Gen Rong, Chairman of Huazhang Technology Holding Limited, said, "The PRC paper-making industry is in the period of strategic restructuring. As a comprehensive service provider in paper-making industry, Huazhang leverages on the accumulated experience in the industry over the years to take the lead in the market. 

In the past year, we promoted our all-rounded services to papermaking enterprises continuously by various initiatives, including the acquisitions of headbox business as well as logistics and warehouse business. In future, we will export more complete-set equipment by seizing the national 'One Belt, One Road' opportunity, and deliver sustainable business growth for creating returns for shareholders and investors." (mor/roc).