Core Insights - China Supply Chain Industry (03708) has signed a memorandum of understanding with Shuwei Technology Co., Ltd. to establish a wholly-owned subsidiary in Hong Kong for funding, constructing, and operating a new generation data center utilizing Shuwei's authorized Kodon technology [1][2] Group 1 - The memorandum outlines the strategic intent for collaboration, focusing on the development of a new generation data center in Hong Kong using Kodon technology, which compresses various file formats to less than 1% of their original size [1] - The partnership aims to integrate core resources and advantages through a continuous cooperation framework, enhancing the leadership position of both companies in the Hong Kong data center industry [2] - The technology allows for high logical storage capacity within limited physical space, significantly reducing data footprint [2]

Core Points - The company has signed a memorandum of understanding with Shuwei Technology Co., Ltd. to establish a wholly-owned subsidiary in Hong Kong for funding, constructing, and operating a new generation data center using the licensed Kodon technology [1][2] - Kodon technology is designed to compress various file formats into a compact "Kodon" sequence, aiming to reduce original file sizes to below 1% of their original size, thereby achieving high logical storage capacity in limited physical space [1][2] - The partnership aims to integrate core resources and advantages through ongoing collaboration, enhancing the company's leadership position in the Hong Kong data center industry [2] Company Plans - The company plans to conduct technical, legal, and commercial due diligence promptly and negotiate a final agreement regarding the authorization, construction, and operation of the data center [1] - The project will involve granting or arranging long-term rights to use the Kodon technology, contingent upon the completion of due diligence and final agreement negotiations [1] Industry Impact - The collaboration is expected to release synergies by utilizing the Kodon technology to develop new generation data centers in Hong Kong, significantly reducing data storage space requirements [2] - This initiative is anticipated to strengthen the company's and Shuwei Technology's leadership in the data center sector in Hong Kong [2]