China's supply chain industry (03708) signed a memorandum of understanding with Digital Technology to develop next-generation data centers in Hong Kong using Kodon technology

According to Zhitong Finance App, China's supply chain industry (03708) announced that on November 3, 2025, it has signed a memorandum of understanding with Digital Technology Co., Ltd. (Digital Technology). Digital Technology's main business is to provide storage, security and bandwidth solutions (including StreamBox edge systems), as well as compact, ultra-high-capacity data centers built using authorized Kodon technology.

The memorandum records the main intention for strategic cooperation. According to this, the company will establish a wholly-owned subsidiary in Hong Kong to fund, build and operate next-generation data centers using Kodon technology authorized or sub-licensed by Digital Technology. Kodon technology is described as a data representation technology that can compress files of various formats into a compact “Kodon” (character sequence). The target is to be compressed to less than 1% of the original file size, but is limited by technical parameters and verification results (collectively, the “technology”). This technology enables extremely high logical storage capacity within a limited physical space. The contracting parties intend to quickly conduct technical, legal and commercial due diligence and negotiate a final agreement to document the licensing, construction and operation of the data center.

According to the memorandum of understanding, the company plans to establish a wholly-owned subsidiary in Hong Kong to fund, construct and operate the relevant facilities, while Digital Technology plans to grant or arrange long-term use of the technology for the project, which can only be implemented after technical due diligence is completed and a final agreement is negotiated.

The partnership will unleash synergy by integrating core resources and strengths through a continuous cooperation framework and using this technology to develop next-generation data centers in Hong Kong. The technology aims to drastically reduce the data footprint while achieving extremely high logical storage capacity within a limited physical space. The move will promote the company and digital technology's leading position in the Hong Kong data center industry.