CH SUPPLY CHAIN (03708) surged 50% on heavy trading volume, reaching HK$0.033 by the time of writing, with a turnover of HK$11.13 million. The company announced on November 3 that it had signed a memorandum of understanding (MOU) with Digital Dimension Technology Co., Ltd. (Digital Dimension Tech).

Digital Dimension Tech specializes in storage, security, and bandwidth solutions, including its StreamBox edge system, as well as compact ultra-high-capacity data centers utilizing licensed Kodon technology. The MOU outlines a strategic collaboration framework under which CH SUPPLY CHAIN will establish a wholly-owned subsidiary in Hong Kong to fund, construct, and operate next-generation data centers leveraging Kodon technology licensed or sublicensed by Digital Dimension Tech.

Kodon technology is described as a data representation method capable of compressing files of various formats into a compact "Kodon" (character sequence), targeting compression to less than 1% of the original file size, subject to technical parameters and validation results (collectively referred to as "the Technology"). This technology enables extremely high logical storage capacity within limited physical space.

Both parties intend to promptly conduct technical, legal, and commercial due diligence and negotiate a definitive agreement covering licensing, construction, and operation of the data centers.