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 2019.

During the year under review, the Group recorded turnover of RMB3,656 million, representing an increase of 9% over last year. Net profit amounted to RMB281 million, representing an increase of 4% over last year. Earnings per share stood at RMB28 cents. The board of directors proposed to pay a final dividend of HK$0.20 per share.

During the year under review, the Group’s three principle business has developed in a healthy manner. Among these, the Power Advanced Metering Infrastructure (“Power AMI”) business realized revenue of RMB1.71 billion, representing a slight decrease of 1% over the same period last year; the Communication and Fluid Advanced Metering Infrastructure (“Communication and Fluid AMI”) business realized revenue of RMB1.17 billion, representing an increase of 26% over the same period last year; and the Advanced Distribution Operations (“ADO”) business realized revenue of RMB0.77 billion, representing an increase of 15% over the same period last year. Concerning customer structure, revenue from domestic power grid customers and domestic non-power grid customers increased by 18% and 15% respectively over the same period last year.

The outbreak of the Coronavirus Disease 2019 (COVID-19) in early 2020 had varied impacts on the development of each industry. Since the outbreak, the Group has focused on keeping its employees healthy and safe, paid close attention to the development of COVID-19 and strictly implemented epidemic prevention and controls, including measuring body temperature quickly and accurately in a distant place by using its independently developed thermoscreen infrared fever screening technology and implementing access controls with face recognition, a smart park technology, to ensure employee health throughout the Group and resume work and production in a reasonable and orderly manner with the support from governmental authorities at all levels.

In March 2020, the Standing Committee of the Political Bureau of the CPC pointed out to accelerate the construction of “new infrastructure” with focuses on the seven fields, including 5G base station, ultra-high voltage, inter-city high-speed rail and urban rail transit, new energy electric vehicle charging pile, big data center, artificial intelligence (“AI”) and industrial internet, under the three major frameworks, i.e. the internet of information represented by 5G, internet of transportation represented by rail transit and internet of energy represented by electricity. Lists of key construction projects have been launched by various provinces and cities, which is expected to generate a sizable market of over RMB30 trillion and provide a vast space for the development of the Group.

The first executive meeting of the State Council of China in 2020 proposed to step up efforts in advanced manufacturing industry and release corresponding supportive policies on the construction of information network and other new infrastructure, including smart power grid, ultra-high voltage and Internet of Things (“IoT”). Besides, the National Development and Reform Commission pointed out to speed up the market-oriented electricity transactions, gradually promote electricity spot market pilot projects and expand the pilot incremental power distribution business reform. Readiness of the two key power grid companies and the technological innovation driven by the rapid development of new infrastructure and electricity spot market will present new opportunities for the development of each segment of the Group.

As for the Power AMI business, the Group will closely follow the new policies unveiled by the State Grid, stick to technological innovation, continuously improve cost efficiency and product quality, collaborate with the State Grid, the Southern Grid and other local electricity companies in respect of key technologies, participate in the preparation of new technology standards and make early planning for the relevant technologies and products of the next-generation power meter and internet of energy to do its part for the smartization of power grid.

As for the Communication and Fluid AMI business, the Group will continue to focus on its IoT-based business planning and realize the synergetic development of its power grid and non-power grid business. In smart power grid sector, the Group will leverage on the existing perception layer products, focus on edge computing layer and integrate with the AI capabilities of Alibaba Cloud to expand into cloud applications and provide professional technologies, products and services to the rapidly-developed power IoT. In the smart city sector, the Group will build up its vertical application capabilities from smart government, smart park, smart security to smart water service and integrate with the IoT platform of Alibaba Cloud to jointly act as the “smart brain” of cities.

As for ADO business, the Group will capture the opportunities from the “New Infrastructure” investment and continue to consolidate its leading role in the power industry. In the meantime, the Group will allocate more resources to the gradually emerging non-power grid sector, including rail transit, 5G, data center, healthcare and new energy. On one hand, the Group will continue to identify customer needs to optimize the smart power distribution solutions, enhance the digitalization, smartization and informatization level and improve the overall operating efficiency of power grid. On the other hand, the Group will further expand the smart energy services including the “new energy+” and the smart operation & maintenance and expand the application in multiple scenarios of smart city, including smart campus and smart hospital.

In overseas market, taking the opportunities arising from the development of smart energy and smart city, the “Belt and Road” initiative and the “Guangdong-Hong Kong-Macao Greater Bay Area” development program, the Group will cooperate with internationally known enterprises to provide smart metering equipment and systematic solutions in the developed countries; establish joint ventures, build up marketing teams with more local advantages to secure more market shares in the developing countries; and actively seeks for pilot projects to make breakthroughs in market expansion.

Looking forward, the Group will adhere to the principle of “Aggressive with Keen Determination and Achieving Growth through Innovation” and focus on technological innovation to expand the application of the three principal businesses vertically. The Group will also be positioned to capture the opportunities in domestic and overseas market to provide products and services with high standards and high technologies to both domestic and overseas customers and further expand into additional new markets to improve its overall market share and fulfill its commitment to becoming an energy metering and energy saving expert in China and even in the world.


Yours faithfully,
Ji Wei
Chairman

Hong Kong, 28 April 2020

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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Ms. Cao Zhao Hui - 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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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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Mr. Kat Chit - Non-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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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. Cheng Shi Jie - Independent Non-Executive Directors

Mr. Cheng Shi Jie (程時杰), aged 74, is an independent non-executive Director. Mr. Cheng graduated from the Xi’an Jiaotong University with a bachelor degree in electronic engineering in 1967, the Huazhong University of Science and Technology with a master degree in electrical engineering in 1981 and the University of Calgary, Canada with a doctoral degree in philosophy in 1986, respectively. He has been a professor in the Huazhong University of Science and Technology since 1991 and a visiting professor in the Nanyang Technological University in 1995 and 1996. Mr. Cheng was granted the qualification of doctoral tutor by the Academic Degrees Committee of the State Council in 1993 and was elected as an academician of the Chinese Academy of Sciences and a fellow of the Institute of Electrical and Electronics Engineers (美國電子電氣工程師協會) in 2007 and 2010 respectively. Mr. Cheng was appointed as an independent nonexecutive Director of the Company on 12 August 2014.

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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