CH SUPPLY CHAIN (03708) announced that on December 29, 2025, the company entered into a "Beta Data Center Agreement" with Digital Dimension Technology Ltd. (Digital Dimension Technology).
This agreement is intended to implement the cooperative intent outlined in the Memorandum of Understanding signed by both parties on November 3, 2025, marking the project's entry into a substantive verification and construction phase.
According to the main terms of the agreement: (i) Project Objective: The company plans to invest in the construction of a limited-scale beta data center in Hong Kong through a wholly-owned subsidiary, based on Digital Dimension Technology's proprietary "Kodon Technology."
The core purpose of the beta data center is to objectively verify the operational performance, reliability, and potential commercial value of the technology in a real-world environment, providing a basis for decision-making regarding potential future large-scale deployment.
(ii) Cooperation Model: Digital Dimension Technology will act as the primary contractor and designer for the beta data center, providing a full suite of services from solution design to delivery.
Simultaneously, Digital Dimension Technology grants the company a non-transferable, Hong Kong-region exclusive technology license, to be used solely for the construction, testing, and evaluation of this beta data center.
(iii) Key Arrangements: i. Detailed Plan Formulation: Both parties agree to jointly formulate and sign a detailed "Beta Data Center Detailed Design Plan, Budget, and Construction Schedule" within 180 days from the agreement's signing date, to finalize technical specifications, budget, and timeline.
ii. Budget Principle: The total project budget must be finalized with reference to independent third-party market research, subject to the company's compliance with the Hong Kong Exchanges and Clearing Limited's Securities Listing Rules.
iii. Construction and Acceptance: Following the signing of the detailed plan, the total construction period is expected not to exceed 180 calendar days.
Upon project completion, an independent third-party institution mutually recognized by both parties will conduct inspections, with final acceptance based on the inspection results and agreed-upon standards.
The Board believes that collaborating with Digital Dimension Technology to build the beta data center is a significant strategic step for the company to further expand into the digital domain.
Kodon Technology claims the ability to significantly enhance data storage density and energy efficiency, aligning with the data center industry's trend towards greener and more efficient development.
Through this testing and verification initiative, the company can conduct an in-depth evaluation of the technology's actual performance and commercial feasibility at a controlled cost, laying the groundwork for seizing future market opportunities.
The Board is confident that the terms of the agreement are fair and reasonable, concluded on normal commercial terms, and in the overall interests of the company and its shareholders.