Business overview

On March 2018, the Company entered into a technological services agreement (the “Agreement”) with an independent third party (the “Service Provider”) in relation to the provision of technological development and services of blockchain by the Service Provider. Pursuant to the Agreement, the Service Provider shall undertake the technology development of both the underlying blockchain platform and the application level system for the intended “BlockChain Group Food Tracking Platform” (“BlockChain Food Tracking Platform”) for the Company. Blockchain technology development is expected to be completed by 30 May 2018 and will be rolled out around the world upon completion with provision of access mechanism.

The above technical development related to food tracking is only the first step for the group to explore the Blockchain industry.

After that BlockChain Research Centre Limited (“BRC”), a wholly-owned subsidiary of the Company and independent third party intend to establish a joint venture (“Joint Venture”) in Korea for the purposes of operating cryptocurrency calculation data centers globally and operating other BlockChain related projects.

The Company going to set up a new factory and production lines for cryptocurrency BlockChain computing equipment on the proposed leased site (the tenancy of which is currently under negotiation) in Gimpo City, Gyeonggi Province, South Korea.

At the same time the Company intends to sell to the global market the cryptocurrency computer (the “Product”) – a brand to be produced by subsidiaries of the Company, through the third party. This third party has a strong global presence as a sales agent of cryptocurrency computing products and components, with customers from various countries including the U.S.A, Australia, New Zealand, South Korea, Japan and Vietnam, etc.

The average sales volume via the sales channels of the third party was over 20,000 per month in global cryptocurrency computing products last year, which evidences its strength and reach in the BlockChain-related products sales market.

In the future, the Company will continue to actively look for more comprehensive trials of third-party related blockchain technologies to create a BlockChain industry ecosystem.

BLOCKCHAIN FOOD TRACKING TECHNOLOGY PLATFORM

As China’s current policy focused on food safety. The traditional food tracking process has been unable to track and identify food sources in real time and correctly, mainly because the supplier information management system is not compatible. It results in an inaccurate food tracking process because of the manual recording of food information by suppliers in the supply chain may also be incomplete and may be deliberately interfered., It is difficult for Chinese government agencies to exercise their regulatory functions base on the inability to track the root causes of food safety problems。

The group intends (BlockChain food tracking technology) to create a national priority food tracking platform using BlockChain technology combined with the IOT technology to achieve food tracking process modernization considering the growing public awareness of the issue of food safety, and that China has strengthened its oversight for this issue. BlockChain technology brings (including) information decentralization, as well as information security and invariant characteristics, thus solving the problem of incompatibility of information management system of supply chain. Key information of each supply chain will be automatically collected on the BlockChain and any potential and human errors will be minimized by the use of the technology. The goal of the food tracking platform is to accurately and efficiently track consumer food information throughout the supply chain. In the event of any food safety problems, the relevant regulators can obtain the key information to identify the source in real time through the food tracking platform. In addition, as all relevant information will be shared publicly on the food tracking platform, it will also enhance public confidence in food safety.

What is BlockChain food tracking technology?

The BlockChain food tracking technology is defined as a decentralized food traceability platform, which provides a series of solutions for enterprises, regulators, end consumers and developers. So that enterprises,individuals and regulators can realize food traceability and other operations through the platform.

The root causes of change

Because of the technical characteristics of BlockChain and intelligent contract, all the data can be public because of the decentralization application, so that the product information cannot be tampered artificially because of some objective reasons in the process of production and transportation.

Transformation

The redefinition of the role of decentralization model makes the product manufacturer more than a maker, but also a product traceability information provider, avoiding the enterprise being both a player and a referee. It ensures the product traceability information is truly traceable and credible.

Behavior is redefined in the process of product production. All the data are automatically collected and uploaded by IOT equipment. The enterprise does not need to intervene and the BlockChain platform can manage itself and realize the uniqueness and accuracy of the product traceability data information.

Basic capacity and services
  • Product safety trusted service is based on IOT equipment automatic collection and upload, combined with the BlockChain which cannot tamper the time, to provide food safety and trust services for enterprises, end consumers and improve the competitiveness of enterprise brands.
  • The supervision layer audit service provides an audit interface to the regulator to realize that all the product information in the platform is produced in accordance with the relevant laws and regulations.
  • All data on the anti-counterfeiting service BlockChain platform is open to the public, and end consumers can use the verification APP to trace the source of the purchased goods.
BlockChain food tracking technology network protocol:

BlockChain food tracking technology infrastructure is composed of many Internet of things elements and BlockChain fundamental technology. As part of the underlying architecture, each element and technology is an indispensable part of the platform, including three elements.

Internet of things data acquisition equipment:

The function of the device is to collect information about the products in the supply chain, such as time, place, pictures, products, etc.

Data Measurement:

The platform is mainly used to manage the distributed data set based on BlockChain. The intelligent contract records the flow information and characteristics of each key node in the supply chain. The intelligent contract has the characteristics of authenticity, openness, non-tampering, large block capacity and so on.

Mandatory smart contracts:

mandatory smart contracts are similar to ISO9001 quality certification and can only be traded after the product meets certain mandatory standards (the standard needs to open interfaces to relevant national departments in the platform to facilitate auditing by the relevant departments. Such as industry and commerce, food safety and other departments).