Company Profile

Wasion Holdings Limited is the leading total solution provider of advanced metering, advanced distribution and energy efficiency management in China, and is committed to becoming an “Energy Metering and Energy Saving Expert” in China and across the world. The Group was listed on the Main Board of the Stock Exchange of Hong Kong Limited in December 2005, which was the first professional syndicate engaged in energy metering and energy efficiency management in China listed overseas, as well as the first company in Hunan Province listed on the Main Board overseas. In 2017, Wasion Holdings recorded revenue of RMB2,928 million and total assets of RMB7,884 million.

Wasion Holdings has long been focusing on the research and development, production and sales of total solutions relating to energy metering and energy efficiency management, the products and services of which have been extensively applied in energy supply industries for electricity, water, gas and heat, and large energy-consuming units of large-scale public infrastructure, petroleum and chemical, transportation, machine manufacturing, metallurgical and chemical fields and residents.

The advanced smart metering business of the Group mainly comprises of comprehensive smart meters, smart water meters, smart gas meters and ultrasonic calorimeters; various meters and power quality monitoring devices; comprehensive energy data collection terminals, load management terminals and user management devices; measurement automation systems and various application systems, services and energy data mining. The Group, with more than 20% of the domestic market share of high-end metering products, has built up its leading position in China and is the only professional manufacturer in China which provides various advanced energy metering products, systems and services for electricity, water, gas and heat, as well as satisfies the demand of the whole process from energy production, transmission and distribution to consumers.

The advanced smart metering business of the Group mainly comprises of comprehensive smart meters, smart water meters, smart gas meters and ultrasonic calorimeters; various meters and power quality monitoring devices; comprehensive energy data collection terminals, load management terminals and user management devices; measurement automation systems and various application systems, services and energy data mining. The Group, with more than 20% of the domestic market share of high-end metering products, has built up its leading position in China and is the only professional manufacturer in China which provides various advanced energy metering products, systems and services for electricity, water, gas and heat, as well as satisfies the demand of the whole process from energy production, transmission and distribution to consumers.

The advanced distribution and energy efficiency management business of the Group comprises mainly of 40.5kV/12kV comprehensive high voltage switchgear; 12kV smart switchgear; 35kV/10kV comprehensive circuit breakers; 10kV power distribution automation terminals; electrical and electronic devices for power quality control and smooth connection with new energy; smart distribution systems, engineering and services; energy-saving services, etc. The Group is devoted to becoming the leading total solution provider for advanced distribution system in China.

Amidst the substantial changes in energy production and energy consumption mode in China and the world, the material social responsibility and development opportunities arisen from energy saving and carbon reduction as well as the new demand of smart power grids, Wasion Holdings will adhere to its corporate motto “Energy Metering and Energy Saving Expert” while upholding its core value “Perfect Work with Passion, and Success Achieved with Integrity” by continuous innovation and improvement in order to become the pioneer in smart power grids and smart metering in China, one of the major international smart power grids and smart metering provider and a well-known international brand.

In the future, every city, every enterprise and every family will be benefited from the use of the technology, products and services of Wasion.

Chairman’s Statement

TO ALL SHAREHOLDERS,

On behalf of the board of directors of Wasion Holdings Limited (the “Group”), I am pleased to present the operating results of the Group for the financial year ended 31 December 2021.

During the year under review, the Group recorded turnover of approximately RMB4.59 billion, representing an increase of 16.3% over last year. Net profit amounted to approximately RMB268 million, representing an increase of 16% year-on-year (“YoY”). Basic earnings per share stood at RMB0.272, representing an increase of 15.7% YoY. The board of directors proposed to pay a final dividend of HK$0.2 per share.

In 2021, guided by the 14th Five-Year Plan, increased investment was made in power grid to accelerate the transformation of new power systems. During the year under review, our Group recorded growth in revenue from all of the three main business segments. Specifically, revenue from Power AMI increased by 5% YoY, revenue from Communication and Fluid AMI increased by 26% YoY, with the value of signed contracts on hand reaching RMB1,770 million and revenue from ADO increased by 22% YoY. In terms of revenue by client category, revenue from power grid customers recorded an increase of 4.7% over last year, while revenue from non-power grid customers increased by 13.4% YoY. During the year under review, by seizing the opportunities arising from the economic recovery in overseas markets and proactively expanding international market, the Group was still able to record a revenue from overseas customers amounting to RMB712 million, representing a significant increase of 86.6% YoY, despite the uncertainties arising from the ongoing COVID-19 pandemic at a global scale.

During the year under review, in response to the national development strategy of new infrastructure, the Group continued to improve its NB-IoT, CAT1 and other products, successfully winning tenders from telecommunication operators in four provinces, namely Hunan, Hainan, Jiangsu and Shanxi. In terms of Internet of Things (“IoT”) development, the Group’s smart IoT power meter in line with the latest State Grid technical standards was the first to pass the inspection of the State Grid Metrology Center, and has completed delivery of the Shandong pilot project. Influenced by “Peak Emissions” and “Carbon Neutrality” policies, technologies, such as new energy, energy storage for microgrids, demand-side response and virtual power plants, have all progressed rapidly. In terms of power IoT, the Group is striving to make existing power-system infrastructure more efficient, and provide key technological support for power grid generation, transmission, transformation, distribution, and consumption. In terms of smart city, the Group provides full-level integrated solutions for the IoT of energy, being overall solutions that integrate hardware and software products at all levels to be applied in smart energy including power, water, gas and heat, smart fire protection and other fields, so as to provide customers with smart construction, operations and maintenance services, which has won high recognition. In December 2021, the Group officially entered into a strategic cooperation framework agreement with China Power and both parties will collaborate for projects in Ningxia, Hunan, Guangxi and other provinces.

Looking forward, State Grid and Southern Grid plan to invest a total amount of nearly RMB3 trillion during the “14th Five-Year Plan” period under the guidance of the “Peak Emissions” and “Carbon Neutrality” policies. Southern Grid proposed to list constructing distribution networks as a priority in its “14th Five-Year Plan”, in order to promote developing multi-energy and complementary smart energy. The National Development and Reform Commission launched a number of policies during the year, which propose that new energy storage in China will transform from the initial stage of commercialization to large-scale development, propose to construct a well-established and multilevel unified power market system, and propose to promote green and high quality development of data centers, 5G and other new infrastructure. In addition, State Grid’s continuous expansion of international markets in a steady manner will also bring more overseas development opportunities for domestic power equipment.

In terms of Power AMI business, by firmly sticking to power customers’ policies and product standards as well as focusing on the key target markets of new power systems and smart utilities, the Group will, on one hand, persist in technology innovation to constantly reduce the cost and improve the quality of our products, thus enhancing core competitiveness. On the other hand, in the non-power grid customers market, the Group will grasp the development opportunities in cooperation with the commercial complexes, industrial and commercial logistics parks, transportation, schools, communication and other key industrial customers.

For the Communication and Fluid AMI business, harnessing the industry development of power IoT, IoE and intelligent power distribution networks, the Group will intensify innovative research and development of its core products, while maintaining strategic cooperation with Tencent and other leading internet companies and increasing investment in the research and development and sales in overseas markets.

For ADO business, the Group firmly grasps the development opportunities for new power systems amid large-scale new energy connections to grids and large-scale electric and electronic devices connections to grids to focus on the development of intelligent power distribution. Meanwhile, by taking advantage of the opportunity of “Dual Carbon”, the Group proactively develops new energy + and energy-storage products and solutions, which have formed an integrated solution for energy sourcing, networking, loading and storage in different scenarios and sectors, thereby accelerating development.

For the international market, the Group is actively expanding in overseas markets. On one hand, the Group steadily builds local factories with subsidiaries centering on the core market and improves its local language abilities. On the other hand, the Group selects appropriate development strategies according to local market policies — selling components and providing technical guidance in countries with high barriers to build factories; and building factories in countries with high tariffs, in order to mitigate policy and tax risks.

Looking forward, the Group will consistently adhere to the principle of “Aggressive with Keen Determination and Achieving Growth through Innovation”. It will make innovation in market competitiveness by following the trends and keeping up with customer demand. With the gradual shift from satisfying demands to creating demands and leading the demands, the Group has made innovation in the market models actively and steadily. It will also make innovation in product competitiveness by focusing on the innovation and development of smart security, intelligent water conservation and hydrology, green energy transportation and other new businesses and strengthening intelligent use of electricity, chips, sensing, communication modules and other new development forces, enabling new sectors, new business forms and new models to catalyze further development and create greater value. Through all these efforts, the Group commits to becoming a world-class energy metering and energy saving expert throughout the world.


Yours faithfully,
Ji Wei
Chairman

Hong Kong, 28 March 2022

Board of Directors

Mr. Ji Wei - Executive Directors

Mr. Ji Wei (吉為), aged 63, is an executive Director, the chairman of the Company and the founder of the Group. Mr. Ji is responsible for the Group’s overall strategic planning and the formulation of corporate policies. Prior to founding the Group in 2000, Mr. Ji was a business manager of Hunan Province Minerals Import and Export Company (湖南省五金礦 產進出口公司) between 1980 and 1985 and the import and export manager of Hunan International Economic Development (Group) Company (湖南省國際經濟開發(集團)公司) between 1985 and 1989. Mr. Ji was appointed as an executive Director of the Company with effect from 20 July 2004. Mr. Ji was consecutively appointed as a member of the 10th, 11th, and 12th Chinese People’s Political Consultative Conference of Hunan Province from 2007 to date. He is now a deputy chairman of the Hunan Federation of Industry and Commerce. He was awarded with several honourary titles such as “Most Socially Responsible Entrepreneur”, “The Sixth Top Ten Educational Entrepreneur Award in China”, “Most Caring Entrepreneur on Staff Development”, “National Machinery Industry Excellent Entrepreneur”, “Key Personnel for the Construction of Innovative Culture in Hunan Province”, “Special Recognition Award for Occupational Technology Creation in Hunan Province” and “Excellent Entrepreneur” at the 30th anniversary of Changsha Hi-Tech Zone.

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Mr. Kat Chit - Executive Directors

Mr. Kat Chit (吉喆), aged 36, is a non-executive Director. Mr. Kat graduated from the University of British Columbia of Canada with a bachelor degree in economics in 2007. From 2007 to 2011, he was an executive of the equity capital markets division of Macquarie Group Limited. Mr. Kat was appointed as a non-executive Director of the Company on 12 August 2014. He serves as the president of Willfar Information Technology Company Limited with effect from January 2017. Mr. Kat is the son of Mr. Ji Wei, the chairman, executive Director and controlling shareholder of the Company.

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Ms. Li Hong - Executive Directors

Ms. Li Hong (李鴻), aged 44, graduated from the Hunan University, majoring in law, and obtained an EMBA degree from the Renmin University of China. Ms. Li joined the Group in 2000 and held various management positions within the Group, including the director of personnel, and served as executive vice president, and directors of various subsidiaries of the Group. Ms. Li is also the director and general manager of Willfar Information Technology Company Limited, a non-wholly owned subsidiary of the Company listed on the Science and Technology Innovation Board of the Shanghai Stock Exchange. Ms. Li was awarded the ‘‘Excellent HR Manager in China’’ award by China Human Resources (中國人力資源) in 2007. Moreover, she was awarded with various honourary titles such as ‘‘Outstanding Person’’ in promotion of ideology in Changsha, ‘‘Representative of the New Social Class in Changsha’’, and Second Prize of the China Machinery Industry Science and Technology Award (中國機械工業科學技術獎二等獎). Ms. Li was appointed as an executive Director of the Company on 18 June 2020.

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Ms. Zheng Xiao Ping - Executive Directors

Ms. Zheng Xiao Ping (鄭小平), aged 56, is a senior engineer, a master of engineering in automation, an executive Director and chairman of Wasion Group Limited. Between 1987 and 1988, Ms. Zheng was a teaching assistant at the North China Institute of Technology. She lectured at the Taiyuan University of Technology between 1988 and 1993 and was the research director of Hunan Weisheng Electronics Co., Ltd. (湖南威勝電子有限公司) from 1993 to 2000 being responsible for the research and development work. She joined the Group in 2000 and was responsible for the research and development work of the Group. Ms. Zheng was appointed as an executive Director of the Company with effect from 1 September 2005. Ms. Zheng was also awarded with various honourary titles such as “The Seventh Group of Outstanding Experts in Changsha”, “Top Ten Women Entrepreneurs with Outstanding Achievement in Changsha City”, “National Labour Day Medal” and “National Top Ten Technological Worker in Electronic Devices and Meters Industry”.

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Mr. Tian Zhongping - Executive Directors

Mr. Tian Zhongping (田仲平), aged 40, is an executive Director and the president of Wasion Group Limited. Mr. Tian graduated from Xiangtan University (湘潭大學) with a bachelor degree in Engineering in 2002, and obtained a master degree in Control Engineering from Zhongnan University (中南大學) in 2008. Mr. Tian joined the Group in 2002 after graduation and had held positions as Development Engineer for firmware, Project Manager, Product Development Manager, Deputy Chief Engineer and General Manager of the Overseas Sales Department of the Group. During the period when he was a Development Engineer of the Group, Mr. Tian has obtained more than sixty patents for products and technology. Mr. Tian was appointed as an executive Director of the Company on 26 January 2017. He serves as the president of Wasion Group Limited from 2017 up to date. Mr. Tian was awarded with the honorary titles of Excellent Entrepreneur of Changsha Hi-Tech Zone and Excellent Manager in China in 2017, and Outstanding Entrepreneur by China Electronics Enterprises Association in 2018.

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Ms. Cao Zhao Hui - Non-Executive Directors

Ms. Cao Zhao Hui (曹朝輝), aged 52, is an executive Director, the Chief Executive Officer and the chairman of Wasion Electric Limited. Ms. Cao graduated from Hunan University of Technology and Business with a bachelor degree in Economics. She also obtained a degree in executive master of business administration (EMBA) from the University of Hunan (湖南大學). Ms. Cao joined the Group in 2000 and was appointed as an executive Director of the Company with effect from 3 March 2005.

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Mr. Chan Cheong Tat - Independent Non-Executive Directors

Mr. Chan Cheong Tat (陳昌達), aged 70, obtained his master’s degree in Financial Management from Central Queensland University. Mr. Chan is a fellow member of Hong Kong Institute of Certified Public Accountants, Association of Chartered Certified Accountants and CPA Australia. He is also an associate member of The Chartered Governance Institute (formerly known as The Institute of Chartered Secretaries and Administrators) of London, the United Kingdom and The Hong Kong Institute of Chartered Secretaries. Mr. Chan served in the Inland Revenue Department of the Hong Kong Government for more than 30 years and retired in early 2005. Mr. Chan is currently a director of a tax consultancy company. He also acts as an independent non-executive director of Hyfusin Group Holdings Limited (Stock Code: 8512), Medicskin Holdings Limited (Stock Code: 8307), Chong Fai Jewellery Group Holdings Company Limited (Stock Code: 8537), Accel Group Holdings Limited (Stock Code: 1283), Guangdong Tannery Limited (Stock Code: 1058) and Ye Xing Group Holdings Limited (Stock Code: 1941), and a non-executive director of Alpha Financial Group Limited. Mr. Chan was also an independent non-executive director of Man Sang International Limited (Stock Code: 938) from January 2015 to November 2016. Mr. Chan was appointed as an independent non-executive Director of the Company on 18 June 2020.

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Mr. Luan Wenpeng - Independent Non-Executive Directors

Mr. Luan Wenpeng (欒文鵬), aged 55, was an independent non-executive Director with doctor’s degree in electrical engineering. Mr. Luan is a PEng in British Columbia, Canada, a senior member of IEEE and an individual member of CIGRE. He has been engaged in the works as well as the research of systematic planning of the electrical power system, smart power grids, smart metering infrastructure, distribution automation, data analysis, distributed energy resources integration, asset management etc. for more than 20 years. As a distinguished expert of state level in China, Mr. Luan is currently a professor of Tianjin University, general secretary of the Technical Board of IEC distributed electric energy system (SC8B), the chairman of the IEEE expert working group for microgrids planning and design (IEEE P2030.9 WG) and the vice chairman of IEEE expert working group for smart distribution terminal (IEEE P2815 WG). Mr. Luan was appointed as an independent non-executive Director of the Company on 16 May 2016.

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Mr. Wang Yaonan - Independent Non-Executive Directors

Mr. Wang Yaonan (王耀南), aged 62, graduated from East China University of Technology with a bachelor’s degree in computer science in 1981, and obtained his master’s degree and doctorate degree in industrial automation from Hunan University in 1992 and 1995, respectively. Mr. Wang is currently a professor and doctoral tutor at the College of Electrical and Information Engineering of Hunan University, a director of the National Engineering Laboratory for Visual Perception and Control Technology for Robots (機器人視覺感知與控制技術國家工程實驗室), a fellow of the China Automation Association (中國自動化學會), a fellow of the China Computer Federation (中國計算機學會), a supervisor of the China Artificial Intelligence Association (中國人工智能學會) and an academician of the Chinese Academy of Engineering. Mr. Wang was appointed as an independent non-executive Director of the Company on 17 July 2020.

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Mr. Choi Wai Lung Edward - Senior Management

Mr. Choi Wai Lung Edward (蔡偉龍), aged 51, is the chief financial officer and company secretary of the Company. Mr. Choi is a fellow member of the Hong Kong Institute of Certified Public Accountants and the Association of Chartered Certified Accountants with over 29 years of experience in accounting, auditing and finance.

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Corporate Governance