Company Profile

Wasion Holdings Limited (“Wasion Holdings” or the “Group”) 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 2023.

During the year under review, the Group recorded revenue of approximately RMB7,252 million, representing an increase of 24% over last year. Net profit attributed to the owners of the parent amounted to approximately RMB521 million, representing an increase of 61% year-on-year (“YoY”). Basic earnings per share stood at RMB0.527, representing an increase of 60% YoY. The board of directors proposed to pay a final dividend of HK$0.28 per share, representing an increase of 22% over last year.

Last year, the Group continued to optimise its product mix by increasing the proportion of high-margin products and adopted effective cost efficiency measures. Together with a sustained increase in sales revenue, the Group recorded growth in revenue from all three major business segments during the year: revenue from the Power AMI business increased by 29% YOY; revenue from the Communication and Fluid AMI business increased by 11% YOY; and revenue from the ADO business increased by 31% YOY. Although the industry was affected by the domestic and international economic cycles, the Group’s overseas business maintained high growth, with overseas revenue up by 30% YOY during the year.

Under the continuous guidance of national policies, State Grid stated in its 2024 working conference that it would continue to increase its investment in grid network construction to over RMB500 billion this year in a bid to maintain the boom period of power grid investment. Last year, many documents were issued successively by various state organisations to promote the construction of new power systems, new energy systems and new energy storage systems. The support of the relevant policies is likely to enable the Group to develop clearer development directions and market expansion strategies.

Looking forward, in respect of the Power AMI business, the Group expects the demand for power meters from State Grid and Southern Grid to be stable this year as compared to last year, as the market is currently undergoing a wide-range assessment of the condition of power meters. Demand for IoT power meters in the market is expected to further increase in 2024, driven by the construction of new power systems. Following a transitional period for the purchase and use of metering products with new technical standards in 2023, local power companies are expected to focus on the new- standard meters to meet their needs this year. In the non-power grid market, with the gradual opening up of the power market and the continuous energy restructuring, the market demand tends to be more diversified and personalised, and the power metering products to be provided by the Group to its customers will gradually evolve from being function- oriented to intelligent, customised products and integrated solutions.

In respect of the Communication and Fluid AMI business, the government underscores the need to deepen the reform of the power system. In line with the policy, the Group will focus on the power distribution network and the load side, and provide customers with integrated solutions applicable for various scenarios through the combined application of various technologies, including IoT for energy, chip design and communication, and artificial intelligence. The intelligent construction of IoT for energy is becoming the key direction of development and investment in various countries, and the integration of green energy and digital transformation emerges as a new opportunity for the sustainable development of the Group. In addition, economies along the “Belt and Road” now involve 70 countries, with strategic investments primarily focusing on energy and electricity, which, as a whole, accounts for 46%. The Group will seize the opportunity to actively participate in the construction of IoT for power in overseas regions, such as Latin America, the Middle East, Africa and other countries along the “Belt and Road” that have a high demand for infrastructure investments.

In respect of the ADO business, which is based on the integrated application of energy sourcing, networking, loading and storage for clean energy, smart grids, electric transportation and energy storage industrialization, in 2024, the Group will expand business both horizontally and vertically on the basis of regular power distribution products to ensure the sustainable performance growth of integrated primary and secondary switch, high and low-voltage switchgear, cubicle- type transformer substation and low-voltage circuit breakers. For customers in key industries, the Group will broaden its sales pipeline around key provinces such as Guangdong, Hunan, Jiangsu and Zhejiang, while identifying the needs of customers in key industries such as lithium battery, water, water conservancy and hydropower, chemical industry and rail transport to develop industrial solutions with distinct brand characteristics. In the area of new energy, the Group will forge closer ties with central and state-owned enterprises and actively promote the micro-grid applications in industrial parks and areas without power supply or facing power shortage on the user-side to facilitate the integrated application of energy sourcing, networking, loading and storage of “new energy + energy storage” at varied levels. In addition, the Group will further consolidate the electric mobility business, aiming to become one of the top three service providers in the industry by EV charging and switching equipment supply.

In the international market, the Group will maintain its focus on core markets and adopt an expansion strategy that improves localisation and extends to neighbouring markets, with a view to steadily developing existing markets and actively exploring new markets. As the global demand for smart power grids and power distribution networks continues to rise, the Group will keep an eye on market trends and policy changes, and adjust development strategies as appropriate.

The Group will keep abreast of the new policies and investment trends of power grid customers to research and develop high-quality products that meet the needs of the industry and provide flexible and competitive solutions. In addition to power grid customers, the Group will also seize the development opportunities of domestic and overseas customers in key industries, and strive to play to its strengths as an industry leader in the areas of product research and development, distribution channels and strategies, and customer development.

Last but not least, adhering to the principle of “Aggressive with Keen Determination and Achieving Growth through Innovation”, the Group will capitalise on market opportunities arising in the new business environment by tapping into existing markets and expanding into new ones to maintain our leading position in the industry, as an expression of our commitment to becoming a first-class energy metering and energy saving expert in China and even the world.


Yours faithfully,
Ji Wei
Chairman

Hong Kong, 15 March 2024

Board of Directors

Mr. Ji Wei - Executive Directors

Mr. Ji Wei (吉為), aged 67, 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 2022. 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 40, 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. 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 48, 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 chairman (董事長) of Willfar Information Technology Co., Ltd., 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 “Leading Talents in Science and Technology Innovation 2023 (二零二三年科技創新領軍人才)”. 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 Xiaoping (鄭小平), aged 60, is a senior engineer, a master of engineering in automation, an executive Director of Wasion Holdings Limited, dean of the research institute 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”, “National Top Ten Technological Worker in Electronic Devices and Meters Industry” and “Outstanding Contributor to the Standardization Work of the Fifth Committee of National Standardization Technical Committee of Devices and Meters (全國儀器儀表標準化技術委員會第五屆委員會標準化工作突出貢獻者)”.

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Mr. Tian Zhongping - Executive Directors

Mr. Tian Zhongping (田仲平), aged 43, 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’s 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 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 Zhaohui (曹朝輝), aged 56, 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 Hunan University (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 “Mayor Quality Award and Quality Innovation Award (市長質量獎質量創新獎)”, the “Excellent Entrepreneur in Hunan Province”, the “Excellent Entrepreneur in China”, the “Most Socially Responsible Entrepreneur in China 2017” and the “Excellent Entrepreneur in Changsha County and Changsha Economic Development Zone”. 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 74, 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, the 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: 00938) 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 59, is an independent Non-Executive Director and 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 66, 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 55, 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 33 years of experience in accounting, auditing and finance.

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Corporate Governance