Pan Asia Environmental Protection (00556.HK) announcement relating to (including) the company's business update to expand its Web 3.0 business. The company established a subsidiary Pan Asia USA in the US to develop Web3.0 business and AI business. Initially, it will focus on decentralized disaster recovery storage solutions.
The Board of Directors is pleased to announce that on May 31, 2024, Pan Asia USA, a non-wholly-owned subsidiary of the Company, and Power Meta entered into a business cooperation agreement for the development of the DR network (including). According to the business cooperation agreement, Pan Asia USA is responsible for providing Power Meta with a maximum of 1,820,000 Filecoin tokens (equivalent to approximately HK$81.8 million) to be used as collateral for the DR network.
DR Network is a Web3.0 decentralized disaster recovery storage network designed to provide data recovery solutions based on decentralized storage. Decentralized storage is a blockchain-based decentralized network storage solution that does not rely on a single centralized entity. Data is stored at different nodes in a decentralized network rather than a single server controlled by a single agency, which ensures data transmission and error prevention, thereby improving security and reliability.
DR networks are distributed and participatory networks where data and files are stored in multiple DR nodes to ensure reliability and security. According to the business cooperation agreement, up to 28 DR nodes will be built to support the DR network. Each DR node has a disaster recovery storage capacity of 1 PiB (1 PiB = approximately 1,125,899 gigabytes). By building 28 DR nodes, the DR network will create up to 28 PiB of storage capacity.
The DR network will utilize IPFS and FileCoin network technology. IPFS is a decentralized system for storing and accessing files, websites, applications, and data; the Filecoin network is a decentralized storage network that aims to turn cloud storage into an algorithm marketplace.
Considering that the application and importance of IPFS and FileCoin networks is on the rise, the directors (including independent non-executive directors) believe that although the transaction proposed in the business cooperation agreement is not carried out in the Group's daily and general business process, the transaction complies with normal commercial terms or better terms, is fair and reasonable, and conforms to the overall interests of the Group and shareholders.