Wasion : Announces 2021 Interim Results - Independent R&D of chips yields leading advantage, international business growth doubled

Wasion Holdings Limited Announces 2021 Interim Results Announcement Independent R&D of Chips yields leading advantage, International Business grew significantly 30 August 2021

[Press release - For Immediate Release]

Announces 2021 Interim Results

***

Independent R&D of chips yields leading advantage, international business growth doubled

IoT and smart energy businesses see continuous growth driven by

technological innovation

Financial Highlights

• Turnover increased by 22% YoY to RMB2,065.63 million
• Turnover of Power Advanced Metering Infrastructure ("Power AMI") business increased by 3% YoY to RMB731.33 million
• Turnover of Communication and Fluid Advanced Metering Infrastructure ("C&F AMI") business increased by 28% YoY to RMB814.54 million
• Turnover of Advanced Distribution Operations ("ADO") business increased by 53% YoY to RMB519.76 million
• Turnover of international markets was RMB248.10 million, representing a significant increase of 166% YoY
• Net profit was RMB123.14 million, representing an increase of 6% YoY
• Basic earnings per share amounted to RMB12.5 cents

(Hong Kong, 30 August 2021) Wasion Holdings Limited ( the "Company","Wasion Holdings" or the "Group", Stock Code: 3393.HK), the leading provider of energy equipment and energy saving solutions in China, is pleased to announce the interim results of the Group for the six months ended 30 June 2021 ("period under review").

During the period under review, the Group recorded a total turnover of RMB2,065.63 million (first half of 2020: RMB1,687.70 million), representing an increase of 22% YoY; gross profit was RMB678.21 million (first half of 2020: RMB542.69 million), representing an increase of 25% YoY. Due to the optimization of its product structure and the increase of the proportion of high-margin products, the Group's overall gross profit margin was 33% (first half of 2020: 32%), representing an increase of 1 percentage point YoY. Basic earnings per share for the period under review amounted to RMB12.5 cents (first half of 2020: RMB11.8 cents). During the period under review, the performance of C&M AMI, ADO and overseas business of the Group recorded a steady growth.

In terms of the Power AMI business, the Group won a contract worth RMB322 million in a centralized tender organized by State Grid, ranking highest among its peers in terms of total contracts. The Group also won a contract worth RMB80.84 million in a centralized tender from Southern Grid, ranking lead in the industry in terms of total contracts. Being well-performed in the

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Wasion Holdings Limited Announces 2021 Interim Results Announcement Independent R&D of Chips yields leading advantage, International Business grew significantly 30 August 2021

market competition of the two major power grid markets, it shows that the Group's energy- metering solutions are in a leading position within the industry. In terms of non-power grid business, the Group has gained decent progress in areas such as airport, rail transit, industrial and commercial parks, commercial complexes and telecommunication operators and currently the group has successfully won tenders from telecommunication operators based in Hunan and Hainan provinces. During the period under review, the Group's Power AMI business recorded a turnover of RMB731.33 million.

In terms of the Communication and Fluid AMI business, during the period under review, the Group has succeeded in areas of the construction of "Power Internet of Things (IoT)" and "Smart City IoT". In terms of power IoT, the Group has continuously optimised its product line, adhered to the development foundation of "technological innovation", continued pursuing independent research and development ("R&D") into chips, to provide efficient and reliable sensing and communication solutions for IoT networking. In terms of Smart City IoT, the Group provided a comprehensive solution for the energy Internet at every level, integrating hardware and software products into an overall solution for smart energy such as electricity, water, gas and heat, smart fire protection and other application fields, which was well recognized by the market. During the period under review, the Group's C&F AMI business recorded turnover of RMB814.54 million, representing an increase of 28% YoY.

In terms of ADO business, during the period under review, the Group achieved satisfactory results in the State Grid market by winning contracts with a combined value of more than RMB406.5 million. In responding to power distribution demands from the new power system, the Group continues to launch intelligent power distribution, and primary and secondary integrated products for power systems, as well as comprehensive solutions for intelligent power distribution. In terms of key customer industries, the Group achieved major breakthroughs with significant growth in overall performance in subsegment markets such as data centres and rail transit business. Responding to large-scale developments in renewable energy, the Group focused on overall smart energy solutions, with the integration of source-network-load-storage in smart parks, power storage system, and green travel as the core businesses and main tracks. During the period under review, the Group's ADO business recorded a turnover of RMB519.76 million, representing an increase of 53% YoY.

With the demand for smart power meters on the rise in different parts of the world, the Group has recorded significant growth in the international markets with its outstanding product quality and technical advantages. In Asian markets, being one of the domestic suppliers, the Group recorded stable business growth in Indonesia, Malaysia and Bangladesh. In Africa, the Group has maintained stable development, continued to be a major supplier in electricity metering market. The Group has also actively explored the Ugandan and Kenyan markets, receiving bulk orders from Uganda. In South America, the Group won a major order for power meter projects from five power authorities in Ecuador, further expanding its market share. In Europe, the Group continued partnering with Siemens in Austria, successfully completed the delivery of smart power meters and won new orders for next-generation smart power meters. During the period under review, overseas business turnover was RMB248.10 million, representing an remarkable increase of 166% YoY.

To drive innovation, the Group invests substantially in R&D, closely complying with national policies and industry transformation trends, developing in step with the energy Internet, building new power systems and smart cities, satisfying customer needs, and actively promoting its own technological innovations. During the period under review, the Group was granted 75 patents and authored 38 software copyrights, boosting the total number of valid patents and software copyrights to 1,405 and 1,252, respectively.

Looking forward, guided by the dual-carbon policy and 14th Five-Year Plan, State Grid strives to reach the initial goal of forming an energy Internet industry ecosystem by 2025. And Southern

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Wasion Holdings Limited Announces 2021 Interim Results Announcement Independent R&D of Chips yields leading advantage, International Business grew significantly 30 August 2021

Grid is also actively promoting the construction of the new power system, addressing new requirements of the construction of Digital Power Grid and respective stages of power distribution. Meanwhile, the country is vigorously reforming spot electricity trading and renewable electricity generation, which will further boost demand for high-end products. These would create massive market opportunities for the Group. The Group will closely follow the industry transformation trends, adhere to the development foundation of "technological innovation", actively broaden the diverse application scenarios in its three main business segments, provide services for domestic and international customers with advanced R&D and product quality, and increase the overall market share of the Group.

Mr. Ji Wei, Chairman of the Group, said, "With the continuous promotion of the construction of new power system, the transformation of energy market driven by the dual-carbon economy and the expansion of application scenarios of the smart city, all these provided new opportunities of development and growth for the Group's power grid and non-power grid businesses. The Group will consistently adhere to the principle of "Aggressive with Keen Determination and Achieving Growth through Innovation", continuously excel in R&D and product quality and satisfy customers' needs, while continuously expand the domestic and international markets, seize market opportunities, explore existing markets in-depth while entering new markets, to maintain a leading position within the industry and give back to all shareholders with better business performance."

-Ends-

About Wasion Holdings Limited

Wasion Holdings is the leading provider of energy measurement equipment and energy saving solutions in the PRC. Its products and services include Power Advanced Metering Infrastructure (Power AMI), Communication and Fluid Advanced Metering Infrastructure (Communication and Fluid AMI), and Advanced Distribution Operations (ADO) (Smart Distribution Solutions (SDS), Smart Distribution Devices (SDD), and Energy Efficiency Solutions (EES). 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. Its research centre 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.

For media inquiries, please feel free to contact LBS Communications Consulting Limited

Joanne Chan	(852) 3679 3671	[e-mail]
Anita Tan	(852) 3752 2675	[e-mail]
Fax：[phone]

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