Glonghui, May 23 | Marco Digital Technology (01942.HK) announced that on May 23, 2024, the company entered into an agreement with the seller. According to this, the seller conditionally agreed to sell and transfer or transfer, and the company conditionally agreed to purchase and accept the sale of shares (that is, the entire issued share capital of the target company Sky Trend Real Estates Limited) and shareholder loans at a total cost of HK$70 million.

The target company is a limited company incorporated under the laws of the British Virgin Islands. As of the date of this announcement, the target company is the legal and beneficial owner of the property.

This property refers to units 1-3, 5-10 on the 15th floor, 46 Tsun Yip Street, Kwun Tong, Kowloon, Hong Kong, workshop units 1-3, 5-9 on the 16th floor, and the roof. The property consists of 17 workshops and a rooftop area in a 14-story industrial building. The property is built of reinforced concrete and completed in 2020. It is mainly surrounded by other industrial and commercial buildings. The internal condition of the property is generally well-maintained, in line with the number of years it was built.

The Group's initial strategy includes providing colocation and hosting services, and establishing direct private connections to major public clouds. The move will enable cloud service providers to expand seamlessly in their key markets and enable enterprises to deploy their hybrid clouds close to famous public cloud interconnects. As the first stage of development, the Group plans to build its first self-owned data center. It is expected that the data center will be equipped with server hardware, data storage systems, cloud computing platforms, network infrastructure and monitoring systems, etc., and the Group will implement and upgrade from time to time after the acquisition is completed. After implementing the initial strategy described above, the Group will continue to review its business performance. In the next stage of development, the Group will further expand the scope of services and expand its business by adding data centers and facilities when appropriate. The Group believes that with the continuous development of the data center business, it is common to operate multiple data centers to meet increasing service demand, enhance service reliability, avoid service interruptions, and achieve disaster recovery, which is also in line with industry practices. Furthermore, as part of the data center business development plan, the Group expects to invest resources to recruit necessary personnel and/or hire third-party consultants to perform various functions such as systems engineering, network management, database management and compliance.

Group management usually looks for an address that can provide each data center building with at least 10,000 square meters of floor space and sufficient electricity to meet the needs of the customer base the group strives to serve at this facility. After a thorough site visit, the Group's management found the property to be ideal for conversion into a data center.