HONG KONG, CHINA - MediaOutReach - 21August2018 - Huazhang TechnologyHolding Limited ("Huazhang" and its subsidiaries, together, the"Group", stock code: 1673) ispleased to announce apositive profit alert. Thenet profit of the Group for the year ended 30 June 2018 is expected to increaseby at least 35% compared to that for the corresponding period of last year.

The increase in the net profit of the Group was mainly attributableto success in the acquisition of the headbox business in September 2017 which contributedadditional revenue and profits to the Group; and success to diversify itsbusiness from purely manufacturers to comprehensive service providers. The businesses of project contracting service andsupporting services are fast growing, as a result, revenue and profits of the Group were increased.

The Group has completed the acquisition of Hangzhou MCNPaper Tech Co., Ltd. and Hangzhou Haorong Technology Co., Ltd. in September2017. The two companies own patents and know-how in headbox production. Theacquisition was able to diversify theGroup's products and grant the Group access to one of the core technologies ofpaper-making production equipment.Furthermore, inNovember 2017, the Group completed the acquisition of a logistics andwarehousing business in benefits on promoting all-rounded services topapermaking enterprises.

Mr. Zhu Gen Rong, Chairman ofHuazhang Technology Holding Limited, said, "The PRC paper-making industry is in the periodof strategic restructuring. As acomprehensive service provider in paper-makingindustry, Huazhang leverages on the accumulated experiencein the industry over the years to take the lead in the market. In the pastyear, we promoted our all-roundedservices to papermaking enterprises continuously by various initiatives,including the acquisitions of headbox business as well as logistics andwarehouse business. In future, we will export more complete-set equipment byseizing the national 'One Belt, One Road' opportunity, anddeliver sustainable business growth for creating returns forshareholders and investors."

About HuazhangTechnology Holding Limited

Huazhang Technology Holding Limited is an integrated service provider in paper-making industry and itsprincipal business includes project contracting service, research anddevelopment, manufacture and sale of industrial automation systems, sludgetreatment products and headbox, and after-sales and add-valued services. The Group has been in the paper-making industry for over 17years. The Group's self-manufacturing system and equipment are custom-built inaccordance with the specifications and requirements provided by the Group'scustomers, which include various papermaking enterprises in the PRC. The groupstrives to become a leading solution provider and comprehensive serviceprovider for the papermaking industry in the PRC.