DALIPAL HLDG (01921) announced that its wholly-owned subsidiary, DALIPAL Hong Kong Limited (DALIPAL Hong Kong), has decided to establish a sales office in Oman and recently entered into a service agreement with Passion Logistics Services (FZC) LLC (Passion Logistics). Under this agreement, Passion Logistics will provide the group with customized bonded warehousing and comprehensive logistics services at the Suhar Free Zone in Oman.

As one of the key markets in the Middle East region, Oman represents a strategic territory where the group has been deeply cultivating and continuously increasing resource investment for the long term.

The board of directors believes that establishing a direct sales warehouse at this exclusive logistics hub in Oman's bonded zone holds the following important strategic significance for the group:

Strengthening Regional Operational Capabilities in the Middle East: Through establishing a direct sales warehouse and sales office in Oman's Suhar Free Zone, the group can more efficiently coordinate sales and delivery operations across the Middle East region, significantly improving response speed and service flexibility to customers, providing strong support for key projects including those in Saudi Arabia.

Enhancing Supply Chain Resilience and Efficiency: Leveraging bonded warehousing and professional logistics management, the group can achieve regional inventory optimization and rapid allocation, reducing delivery time uncertainties and enhancing supply chain controllability in the Middle East and North Africa regions.

Deepening Cost Benefits and Operational Synergy: The agreement locks in long-term service rates, helping the group effectively manage and forecast logistics costs in the Middle East region, while further optimizing tariff and cash flow structures through bonded policies.

Establishing Foundation for Future Business Expansion: This strategic layout establishes a solid foundation for the group to further develop the Middle East and North Africa markets, supporting subsequent efforts to secure large-scale projects and expand regional market share.