SMART GLOBE (01481) subsidiary Tera Fleet and COSCO SHIPPING Africa have entered into a service agreement, officially implementing the proposed strategic cooperation as stipulated in the memorandum of understanding.

The announcement of SMART GLOBE (01481) contains information on acquisition matters, convertible bond subscription matters, and share subscription matters. As stated in the announcement, the group acquired the land with the intention of developing it into a logistics center in Zambia, serving as a operational hub for the group's logistics business south of the Sahara in Africa. Since the completion of the land acquisition on January 3, 2025, the land has been owned by Tera Logistics (an indirect non-wholly owned subsidiary of the company) and is intended to be developed into a logistics center with warehouse facilities, parking lots, and vehicle maintenance areas. The board of directors happily announced that some warehouse buildings within the logistics center on the land have been completed. Additionally, as disclosed in the announcement, Tera Logistics, Heng Qu, and COSCO SHIPPING Africa have entered into a memorandum of understanding on proposed strategic cooperation, providing logistics services for all goods stored in the warehouses and related facilities on the land. In this regard, the group has signed a service agreement to formalize the cooperation. On July 21, 2025, Tera Fleet Management DMCC (Tera Fleet, an indirect non-wholly owned subsidiary of the company) signed a service agreement with COSCO SHIPPING Africa, effectively implementing the proposed strategic cooperation outlined in the memorandum of understanding. As disclosed in the announcement, the group has established its own freight capacity to expand its business into the logistics field south of the Sahara in Africa, as part of its newly launched supply chain management services business. As of the date of this announcement, the group has further expanded its logistics capabilities and completed some warehouse buildings within the logistics center on the land to launch its supply chain management services business. Given that the logistics center is located in Zambia, adjacent to the Zambia-Democratic Republic of Congo border, a strategic location for cross-border logistics business, the group's logistics center can expedite customs clearance, reduce transportation costs, and improve transport efficiency. Therefore, COSCO SHIPPING Africa has entered into a service agreement to utilize the group's strategic advantages to store and transport products from multiple countries (including, but not limited to, the Republic of Zimbabwe, Zambia, and the Democratic Republic of Congo) to various locations in Africa. The directors believe that the service agreement will allow the parties to engage in commercial cooperation on the land. The directors believe that the strategic cooperation with COSCO SHIPPING Africa is an important milestone for the group to diversify its sources of income and establish local operations south of the Sahara in Africa. Furthermore, after signing the service agreement with COSCO SHIPPING Africa, it is expected that the group will be able to attract other international and local logistics companies to establish strategic partnerships to further strengthen its operations locally.