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 (the “Stock Exchange”) 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.

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, 5G communication, 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 products and solutions of advanced distribution and energy efficiency management business of the Group cover new energy storage system solutions for comprehensive scenarios such as large energy storage, industrial and commercial energy storage, household photovoltaic-storage integration and mobile energy storage, high- and low-voltage complete equipment, primary and secondary integration complete equipment, smart low-voltage components, tower energy and communication products and services, EMS system application, hydrogen production, new energy connection, industrial automation, battery swap and preparation, sales of power and supply-side management, etc. The Group is devoted to becoming the leading total solution provider for advanced distribution system in China.

In January 2020, the Group’s “Communication and Fluid AMI” business — Willfar Information Technology Company Limited (Stock Code: 688100), a 58.59% owned subsidiary of the Group — received approval from the China Securities Regulatory Commission to become the first company in Hunan Province to list on the STAR Market, and was included in the “STAR 50 Index” in August 2020. The Communication and Fluid AMI business mainly focuses on reshaping the energy management methods of electricity, water, gas and heat with the IoT technology, and provides a full-level integrated solution for the IoT of energy from data perception, network transmission to application management, with communication technology from basic chip design, data perception and data acquisition to high-speed data transmission and stable connection, as well as the capability to provide users with such digital solutions as software management.

The goals of “Carbon Neutrality” and “CO2 Emission Peak” are driving substantial changes in energy production and energy consumption mode in China and even the world. Amidst the material social responsibility and development opportunities arisen from energy saving and carbon reduction as well as the substantial demand arisen from the transformation and upgrading of smart power grids to the internet of energy, 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 2022.

During the year under review, the Group recorded turnover of approximately RMB5.856 billion, representing an increase of 28% over last year. Net profit amounted to approximately RMB324 million, representing an increase of 21% year-on-year (“YoY”). Basic earnings per share stood at RMB0.329, representing an increase of 21% YoY. The board of directors proposed to pay a final dividend of HK$0.23 per share, representing an increase of 15% over last year.

In 2022, through optimizing its product portfolio by increasing the proportion of products with higher profit margin, formulating alternative solutions to cope with changes in the pandemic and the global environment and adopting effective cost control measures, the Group recorded growth in revenue from all the three main business segments during the year. Revenue from Power AMI increased by 20% YoY, revenue from Communication and Fluid AMI increased by 11% YoY and revenue from ADO increased by 64% over last year. During the year, despite the challenges from uncertainties in the global economy and shortage of chips, the Group has adopted effective cost control measures and increased productivity of overseas factories, and thus managed to record a significant increase in overseas business, with revenue significantly increased by 73% over last year.

Benefiting from the growth in demand for products tendered by power grid customers in China, during the year under review, amount of centralized tenders won by the Group increased significantly. The business from regional power companies also achieved steady growth, successfully winning contracts in several provinces for products such as storage equipment, testing equipment and gateway meters and maintaining a leading market share. The Group also recorded steady growth in the sectors including telecommunication operators, rail transport, commercial complexes and parks. In view of policies such as “Plan to Facilitate the Development of the Digital Economy in the 14th Five-Year Plan Period” and “Industrial Energy Efficiency Improvement Action Plan”, the Group continues to deeply develop its areas of strength and strengthen efforts in innovation and research and development as well as constantly optimizes its operating environment. To further expand its smart power grid business, the Group developed new-type chips and smart measurement switches to meet the application requirements of smart grids and power IoT. In addition, the Group continued to provide Siemens’ industrial chains and Tencent’s partners with solutions for different scenarios. The Group kept focusing on countries along the Belt and Road to actively expand its business in overseas markets and extend its global energy IoT coverage. As an advanced energy IoT solution provider, the Group leverages on its core competitiveness in “IoT + Digitalization + Industry” to develop various pioneer management terminals, platforms and systems in China, providing quality products for cities, parks and enterprises and facilitating urban security and efficient use of energy. Moreover, the Group’s successful bids and coverage of intelligent power distribution products for primary, secondary, and integrated primary and secondary distribution as well as intelligent power distribution solutions achieved growth during the year under review, ranking among the industry’s top players in terms of total market share.

Looking forward, under the guidance of the “Dual Carbon “policies, State Grid and Southern Grid will be investing accumulatively a total of over RMB2.9 trillion during the “14th Five-Year Plan” period in power grid plans. The “14th Five-Year Plan on Modern Energy System Planning” issued by the National Development and Reform Commission and National Energy Administration will promote power grids’ active adaption to the development of large-scale centralized new energy and distributed energy of large quantity and wide range. “Guidelines on Further Promotion of Electrical Energy Replacement”, jointly issued by ten departments, mentioned the requirement to increase the proportion of electric energy in terminal energy consumption. It is expected that the demand for electrical energy metering products and equipment will keep increasing. In addition, power grid customers actively cooperate with surrounding countries. The Group is expecting new development opportunities to explore the global AMI and new energy market steadily.

In terms of Power AMI business, by closely adhering to new policies and investment trend of power grid customers, as well as focusing on the key target markets of new power systems and smart utilities, the Group will grasp the development opportunities brought by increase in demand for power metering products and equipment.

For the Communication and Fluid AMI business, the Group will insist to maintain its core competitiveness in “IoT + Digitalization + Industry”. The Group will continue to invest in research on source-network-load-storage interactive technology as well as research and development of core devices. We will leverage on AIoT products and technology to promote digitalization upgrades of utilities in cities, enterprises and parks, so as to facilitate digital transformation and in turn achieve the zero-carbon development goal.

For ADO business, to cope with the “Dual Carbon” development trend, the Group proactively develops new energy + energy-storage products and solutions, which have formed an integrated solution for energy sourcing, networking, loading and storage of various scale in different scenarios and sectors, achieving a leap in development. At the same time, the Group makes full effort in expanding overseas market with an aim to make business progress in power generation and user sides through channels and sales.

For the international market, the Group will steadily maintain its shares in key markets. The Group will better understand and satisfy customers’ needs in existing market, enhance product quality and service standards and actively explore new markets.

Looking forward, the Group will consistently adhere to the principle of “Aggressive with Keen Determination and Achieving Growth through Innovation”. It will constantly advance in research and development of technologies and enhance product quality to satisfy customers’ need. The Group will also continue to explore domestic and overseas markets to grasp market opportunities under the new norm by penetrating the existing market and expanding to more new markets, so as to maintain our leading position in the industry and meet our commitment to becoming a world-class energy metering and energy saving expert throughout the world.


Yours faithfully,
Ji Wei
Chairman

Hong Kong, 27 March 2023

Board of Directors

Mr. Ji Wei - Executive Directors

Mr. Ji Wei (吉為), aged 66, is the Executive Director, and is 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 was awarded with several honorary titles such as the “Most Socially Responsible Entrepreneur in China”, “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”, “Excellent Entrepreneur” at the 30th anniversary of Changsha Hi-Tech Zone and “Chinese Red Cross Dedication Medal”.

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Mr. Kat Chit - Executive Directors

Mr. Kat Chit (吉喆), aged 39, is the Executive Director. Mr. Kat graduated from the University of British Columbia of Canada with a bachelor’s 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, and was redesignated as an Executive Director of the Company and appointed as CEO of the Company with effect from 1 June 2022. Mr. Kat is also a director of Willfar Information Technology Company Limited (“Willfar Information Technology”), a non-wholly owned subsidiary of the Company, the shares of which are listed on the Science and Technology Innovation Board of the Shanghai Stock Exchange. On 17 January 2023, Mr. Kat was appointed as a member of the 13th Chinese People’s Political Consultative Conference of Hunan Province. 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 47, graduated from 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 positions within the Group and its various subsidiaries, including the director of personnel and the executive directors, respectively. Ms. Li is also a director and chairman (董事長) of Willfar Information Technology, a non-wholly owned subsidiary of the Company listed on the Science and Technology Innovation Board of the Shanghai Stock Exchange. In 2018, Ms. Li was awarded with several honorary titles such as the “National Innovative Entrepreneur in Electronic Industry”, and was recognized as the “High-level Talent in Changsha City”, the “Excellent Entrepreneur in Hunan Province 2020”, the “Excellent Entrepreneur in Software Industry in China 2020”, the “Top 100 New Economic Leaders Nationwide in China”, the “Excellent Entrepreneur by China Electronics Enterprises Association 2021 (二零二一年中國電子企業協會優秀企業家)” and the “Star of Honesty in Changsha City 2021 (二零二一年長沙市誠信之星)”. She also won the 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 59, 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 on 1 September 2005. Ms. Zheng was also awarded with various honorary titles such as “The Seventh Group of Outstanding Experts in Changsha”, “Top Ten Women Entrepreneurs with Outstanding Achievement in Changsha City”, “High-level Leading Talents in Changsha”, “Advanced Individual of Technological Innovation in Hunan Province”, “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 42, is a senior engineer, an Executive Director and the president of Wasion Group Limited. Mr. Tian graduated from Xiangtan University (湘潭大學) with a bachelor’s 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 has served as the president of Wasion International Co., Ltd. (威勝國際貿易有限公司) since the beginning of 2021. Mr. Tian was awarded with the honorary titles of Excellent Entrepreneur of Changsha Hi-Tech Zone and Excellent Manager in China in 2017, Outstanding Entrepreneur by China Electronics Enterprises Association in 2018 and Leading Figures in Business Startups and Innovation in Xiangjiang New District, Changsha City in 2020. In 2021, he was awarded the Top Ten Celebrities in the Software and Information Technology Service Industry in Hunan Province.

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Ms. Cao Zhao Hui - Non-Executive Directors

Ms. Cao Zhao Hui (曹朝輝), aged 55, is the non-executive Director, and is also the chairman of Wasion Energy Technology Co., Ltd. (威勝能源技術股份有限公司). Ms. Cao graduated from Hunan College of Finance and Economics (湖 南財經學院) with a bachelor’s 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 on 3 March 2005, and was redesignated as a non-executive Director of the Company with effect from 1 June 2022. Ms. Cao was successively awarded with several honorary titles such as the “Outstanding Builder of the Socialism with Chinese Characteristic in Changsha City”, the “Excellent Entrepreneur in Hunan Province” and the “Most Socially Responsible Entrepreneur in China 2017”. She was also awarded with the “Certificate of High-level Talent in Xiangtan City” in 2019, the “Certificate of Senior Management Engineer” in 2020 and the title of “Leading Talents for Science and Technology Entrepreneurship in Hunan Province 2022 (湖南省2022年科技創 業領軍人才)” in 2022.

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Mr. Chan Cheong Tat - Independent Non-Executive Directors

Mr. Chan Cheong Tat (陳昌達), aged 73, obtained his master’s degree in Financial Management from Central Queensland University. Mr. Chan is a fellow member of the 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 Chartered Governance Institute (formerly known as The Hong Kong Institute of Chartered Secretaries). He 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) and Ye Xing Group Holdings Limited (Stock Code: 1941), and a non-executive director of Alpha Financial Group Limited. Mr. Chan also acted as 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 on-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 58, is a doctor 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 smart power grids, advanced metering infrastructure, electricity load monitoring and data analysis, distributed energy resources integration and asset management etc. for more than 30 years. Mr. Luan is currently a professor of Tianjin University, founder 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 65, 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 Research Center for Visual Perception and Control Technology for Robots (機器人視覺感知與控制技術國家工程研究中心), 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 54, 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 32 years of experience in accounting, auditing and finance.

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Corporate Governance