SMART GLOBE (01481) subsidiary entered into a lease agreement with Harmony Prosper Zambia located in Zambia.

SMART GLOBE (01481) announces that on October 31, 2025, its indirectly non-wholly owned subsidiary Tera Logistics (as the lessor) entered into an agreement with the lessee (Harmony Prosper Zambia Limited) for the lease of the land located adjacent to the border between Zambia and the Democratic Republic of the Congo for a period of 4 years and 11 months, at a rent of $12,500 per month. According to the agreement, Tera Logistics has the option or obligation to acquire the buildings constructed and owned by the lessee, with a total construction cost not exceeding $6 million (equivalent to HK$46.8 million). The land consists of two parcels: (a) Kaniki Plot No. 7 (approximately 46.67 hectares) in Ndola, Copperbelt Province, Zambia; and (b) Zone F/2957 A (approximately 48.44 hectares). To address the increasing demand for logistics and warehousing services, and as part of the Group's expansion plan for its supply chain management services division, the Board believes that entering into this agreement will significantly enhance the Group's logistics and warehousing capabilities, and improve its overall financial position: Revenue generation and asset utilization: The agreement will generate stable rental income for the Group during the lease term. By leasing the area to a high-quality lessee, the Group can maximize the return on its land assets without significant capital outlay. Strategic partnership: The agreement establishes a long-term strategic partnership with the lessee, allowing the Group to expand its supply chain management services in Zambia. Under the agreement, the lessee commits to prioritize the use of the Group's transportation services under the same commercial terms, further enhancing the Group's comprehensive logistics service offerings. Risk mitigation: Contingent acquisition arrangements ensure that at the end or early termination of the lease term, the Group is obligated to acquire the buildings constructed by the lessee at their net book value (net of 6.5 years of amortization), allowing the Group to expand its warehouse and production facilities without bearing the upfront construction costs and risks. Market expansion: The agreement allows the Group to expand its business in the rapidly growing logistics market in sub-Saharan Africa. The factory and warehouse facilities to be constructed by the lessee will complement the Group's existing supply chain management infrastructure, enhancing the Group's ability to serve mining and commodity trading clients.