China's supply chain industry (03708) and Digital Technology signed a “Beta Data Center Agreement”

Zhitong Finance App News, China's supply chain industry (03708) issued an announcement. On December 29, 2025, the company and Digital Technology Co., Ltd. (Digital Technology) signed a “Beta Data Center Agreement” (the agreement).

The agreement aims to implement the cooperation intention of the two parties in the Memorandum of Understanding signed on November 3, 2025, and marks that the project has entered the stage of substantive verification and construction.

According to the main provisions of the agreement:

(i) Project goal: The Company plans to invest in the construction of a limited-scale beta data center (beta data center) in Hong Kong through a wholly-owned subsidiary based on Digital Technology's proprietary “Kodon technology”. The core purpose of the beta data center is to objectively verify the operational efficiency, reliability and potential commercial value of the technology in a real environment, and provide a basis for decision-making for possible future large-scale deployment;

(ii) Cooperation model: Digital Technology will act as the general contractor and designer of this beta data center to provide a full range of services from solution design to delivery. At the same time, Digital Technology granted the Company a non-transferable and exclusive technical license in Hong Kong, limited to the construction, testing and evaluation of this beta data center; and

(iii) Key Arrangements:

i. Detailed plan formulation: The two parties agree to jointly develop and sign the detailed “Beta Data Center Detailed Design Plan, Budget and Construction Period Plan” (Detailed Plan) within 180 days from the date of signing the agreement to determine the final technical specifications, budget and construction period;

ii. Budget principles: The total project budget shall be implemented with reference to independent third party market research on the premise that the Company complies with the Hong Kong Stock Exchange Limited securities listing rules; and

III. Construction and acceptance: After the detailed plan is signed, the total construction period of the project is expected to be no more than 180 calendar days. After completion of the project, the inspection will be carried out by an independent third party agency jointly approved by both parties, and final acceptance will be carried out based on the test results and agreed standards

The board of directors believes that cooperating with digital technology to build a beta data center is an important strategic step for the company to further expand into the digital field. Kodon technology claims that it can significantly improve data storage density and energy efficiency, and is in line with the trend of green and efficient development of the data center industry. Through this testing and verification, the company was able to thoroughly evaluate the actual performance and commercial viability of the technology at a manageable cost, laying the foundation for seizing future market opportunities. The Board of Directors believes that the terms of this agreement are fair and reasonable, and are based on general commercial terms, which conform to the overall interests of the Company and shareholders.