China Supply Chain Industry signs a memorandum of understanding with Shuwei Technology to develop a new generation data center in Hong Kong using Kodon technology
China Supply Chain Industry has signed a memorandum of understanding with Shuwei Technology to develop a new generation data center in Hong Kong. The center will utilize Shuwei Technology's Kodon technology, aiming to significantly reduce data storage space and enhance storage capacity. Both parties will conduct technical, legal, and commercial due diligence and negotiate a final agreement to promote the project's implementation. This collaboration will integrate resources and strengthen leadership in the data center industry in Hong Kong
Zhitong Finance APP news, China Supply Chain Industry (03708) announced that on November 3, 2025, it has signed a memorandum of understanding with Shuwei Technology Co., Ltd. (Shuwei Technology). The main business of Shuwei Technology is to provide storage, security, and bandwidth solutions (including StreamBox edge systems), as well as compact ultra-large capacity data centers built using licensed Kodon technology.
The memorandum records the main intentions of strategic cooperation. Accordingly, the company will establish a wholly-owned subsidiary in Hong Kong to fund, construct, and operate a new generation of data centers using the Kodon technology licensed or sublicensed by Shuwei Technology. Kodon technology is described as a data representation technology that can compress various file formats into a compact "Kodon" (character sequence), aiming to compress to less than 1% of the original file size, but limited by technical parameters and verification results (collectively referred to as "the technology"). This technology can achieve extremely high logical storage capacity within limited physical space. The contracting parties intend to quickly carry out technical, legal, and commercial due diligence and negotiate the final agreement to document the authorization, construction, and operation of the data center.
According to the memorandum, the company plans to establish a wholly-owned subsidiary in Hong Kong to fund, construct, and operate the relevant facilities, while Shuwei Technology intends to grant or arrange long-term rights to use the technology for the project, but this will only be realized after the completion of technical due diligence and negotiation of the final agreement.
This partnership will integrate core resources and advantages through a continuous cooperation framework, utilizing the technology to develop a new generation of data centers in Hong Kong, thereby releasing synergy effects. The technology aims to significantly reduce data storage space while achieving extremely high logical storage capacity within limited physical space. This move will enhance the company's and Shuwei Technology's leadership position in the Hong Kong data center industry
