SMART GLOBE (01481) plans to acquire 102 tractor units and 102 40-foot three-axle drop-side semi-trailers for RMB 35.259 million.

SMART GLOBE (01481) announces that on 10 October 2026, the Company entered into a sales contract with the seller, XCMG Construction Machinery Group HK Limited (), pursuant to which the Company agreed to purchase and the seller agreed to sell the vehicles at a consideration of RMB 35.259 million (equivalent to approximately HK$41.094 million). The vehicles to be purchased comprise: (i) 102 tractor units; and (ii) 102 40-foot three-axle drop-side semi-trailers. The sustained strong demand for supply chain management services (in particular logistics services) from commodity traders, mining operators, pyrometallurgical smelters and hydrometallurgical smelters in sub-Saharan Africa has driven continued strong growth in the Group's supply chain management services segment, resulting in overall revenue growth for the Group for the six months ended 30 June 2026. In response to the growing demand for logistics services and as part of the Group's expansion plan to promote its trade and logistics integration strategy, the Board considers that the purchase of the vehicles will significantly enhance the Group's overall logistics capabilities and financial position: (i) Asset accumulation and balance sheet strengthening: the vehicles will be recorded as fixed assets of the Group, directly expanding the Group's asset base and demonstrating financial soundness; (ii) Operational flexibility: ownership confers full control over the assets, allowing the Company to flexibly modify the vehicles to meet specific logistics needs without obtaining the lessor's consent, and reducing reliance on local fleet lessors, which may not be able to fully satisfy the Group's fleet requirements from time to time, thereby mitigating operational risks; (iii) Full data ownership and operational intelligence: an owned fleet can be fully integrated into the Company's proprietary operational ecosystem, enabling unrestricted deployment of the Company's self-selected fleet management system, GPS tracking and fuel monitoring systems, and the Group can fully own the output data. Such data is crucial for optimising routes, enhancing driving safety and controlling fuel consumption; and (iv) Strengthening corporate brand image: a uniformly specified and well-maintained owned fleet will help the Group consolidate its local presence in the sub-Saharan African market. The Board also considers that the funding structure arrangement for the purchase is fair and in the interests of the Company. By financing 80% of the consideration, the Group is able to preserve financial flexibility to support the working capital requirements of its continuously expanding supply chain management business. This financing arrangement also enables the cash outflow for the purchase of the vehicles to match the future cash inflows expected to be generated from their operations, without the need to commit upfront capital at the time of purchase.