【Press release - For immediate release】
 

Wasion Group announced 2014 Annual Results
With sustainable growth in turnover and net profit

Financial Highlights

(Hong Kong, 23 March 2015) Wasion Group Holdings Limited ("Wasion" or "the Group", stock code: 3393.HK) is pleased to announce the annual results of the Group for the year ended 31 December 2014 (the ''reviewing year'').

In the reviewing year, Wasion Group's turnover was RMB2,811.87 million, an increase of 17% as compared with last year (2013: RMB2,412.34 million). Net profit recorded an increase of 20% to RMB482.44 million (2013: RMB401.13 million). Earnings per share was RMB51 cents (2013: RMB43 cents).

Chairman of the Group, Mr. Ji Wei was satisfied with the results, "To seize the market opportunities brought by the Chinese government's support on smart grid, smart power distribution and energy efficiency management, the Group reclassified its business segments into three categories, namely Advanced Metering Infrastructure ("AMI"), Smart Meter ("SM") and Advanced Distribution Operations ("ADO") in the first half of 2014. With the effort over the year, the Group not only successfully further consolidated its leadership in the smart metering market, but also achieved a breakthrough in the smart distribution market, which fully showed our brand name and strengths in the industry."

Business Review

In terms of Smart Meter business, the Group maintained its superior strengths in different aspects such as brand name, technology, market share, quality, business scale and management to be the major winner in the tenders organized by State Grid and Southern Grid. In the four tenders of State Grid, the Group successfully won a total contract value of RMB1201.94 million. The Group also outperformed in the only tender held by Southern Grid. In the reviewing year, the amount of signed contracts reached RMB140.47 million.

In the reviewing year, with its superior comprehensive strengths and rich experience, the Group maintained its leading position in the AMI power industry, and successfully penetrated into different markets. An overall turnover of RMB1677.04 million was recorded with an increase of 17% as compared to 2013. The gross profit margin was maintained at a high level of 41%. Benefiting from the government's policy in promoting water escalating pricing, the turnover from AMI water recorded a significant growth of 80% to RMB140.47 million. A stable growth was recorded in both AMI gas and heat segments.

Regarding international markets, the Group continued to put "Focus on Europe and US, Expand in Asia, Africa and Latin America" as its strategic development plan, leading to a continuous growth in revenue. More encouragingly, the Group successfully penetrated into its own developed markets, among which its performance in Indonesia, Bangladesh and Tanzania was impressive. The Group also started intensive cooperation with international leaders, such as Siemens and Huawai. The strategic cooperation with Siemens even brought a greater synergy in enhancing the Group's comprehensive strengths in AMI and ADO markets.

The Group has actively pushed forward the development of its ADO business in the reviewing year. By establishing an ADO development platform, Wasion Electric Limited, the Group consolidated internal resources and talents to establish a distribution automation department, a power electronics application technology department and a smart power distribution system integration and energy efficiency department to develop significant technological support and core competitive strengths for its ADO business. The Group also acquired Wuhan Smart Electrical Co., Ltd. and Hunan Switchgear Co., Ltd in May 2014 and June 2014 respectively, which helped to consolidate the Group's high quality client network and pushed forward the wide application of ADO. Together with the favorable government policies supporting the ADO related constructions, the Group's ADO business successfully recorded a revenue of RMB310.36 million, representing a 225% growth over 2013, and increasing its revenue contribution from 4% up to 11%.

The Group has strived to provide its clients with the best and most advanced systems and solutions, and spared no efforts in investing all sorts of research and developments. In the reviewing year, the Group received 83 patents for its new products and energy saving services and 72 patents for its software. Targeting AMI market, the Group successfully launched a several hi-tech products including the two-way interactive system and "Power, Water and Gas All-in-one Data Collection System". In terms of ADO, the Group launched various solutions, such as the multi-functional "Power Monitoring System Platform" and "High Efficiency and Energy Saving Monitoring Platform System", assisting corporate users to enhance energy measurement management and to kick-start energy saving. The Group also invented technology with higher adaptability to new energy, including "Brushless Doubly-fed Electric Motor" and "Liquid Metal Battery". In the reviewing year, the Group's outstanding performance in research and development was honored by receiving "National Technology Innovation Demonstration Enterprise" award.

Prospect

Looking ahead, Mr Ji Wei is full of confidence, "The government's intensive support toward the construction smart grid and smart power distribution, together with the coming policies on power reform, are very encouraging to the market. In order to achieve energy efficiency management, the government has also gradually introduced AMI and ADO reform and upgrade programs in public utilities and corporates. Upon the growing demand for AMI and ADO from various industries, the Group is confident in continuing to expand its AMI and ADO businesses and becoming the market leader. The Group is also determined to capture the business opportunities brought by technology upgrade and reform of smart meter by maintaining its outstanding performance in the tenders organized by grid companies."

To tap into the future development potential of power reform, the Group has formulated a series of strategies to seize the market opportunities, including actively exploring AMI customers to achieve a more diversified customer base, expanding its ADO business and to increase its weighing among overall business, exploring potential companies for merger and acquisition purposes in order to strength its product line consolidation and increase competitiveness for its products. By leveraging its market leading position and advantages across various business segments, together with the effective development strategies, the Group will adhere closely with its corporate vision of "Continual Innovation, Contributing to Wasion's Centennial History", to gradually build up its international leading position.

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About Wasion Group Holdings Limited
Wasion Group is the leading provider of energy measurement equipment and energy saving solutions in the PRC. Its products and services include Smart Meters (SM), Advanced Metering Infrastructure (AMI) systems and solutions as well as Advanced Distribution Operations (ADO) systems and solutions. The Group's current clients include power grid companies, water, gas and heat providers, and other major industrial and commercial users. Its products have major market share in the PRC and are exported worldwide including Asia, Africa, Europe and United States. The Group owned China's very first Energy Conservation and Environmental Protection Engineering Research Center. Its research center and laboratory have been certified as national grade and international standards. Wasion's research and development capabilities in smart metering and energy saving solutions are renowned within the industry.

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