Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 3,225,682 thousand, representing an increase of 26.4% from RMB 2,552,743 thousand in 2022[8]. - Gross profit for the same period was RMB 1,176,729 thousand, up 35.5% from RMB 867,934 thousand in 2022[8]. - Operating profit increased to RMB 434,389 thousand, a rise of 31.3% compared to RMB 330,951 thousand in the previous year[8]. - Net profit attributable to shareholders was RMB 213,815 thousand, reflecting a growth of 49.0% from RMB 143,315 thousand in 2022[8]. - Total assets reached RMB 13,391,901 thousand, compared to RMB 12,665,854 thousand in 2022, indicating a growth of 5.7%[8]. - Equity attributable to shareholders increased to RMB 4,817,438 thousand from RMB 4,504,367 thousand, marking a rise of 6.9%[8]. - Basic and diluted earnings per share were both RMB 21.7, up from RMB 14.6 in the previous year[8]. - Profit before tax increased to RMB 371,972 thousand, representing a 33.3% rise from RMB 279,110 thousand in the previous year[81]. - Net profit for the period was RMB 315,143 thousand, a 32.7% increase compared to RMB 237,465 thousand in 2022[81]. - The company reported a total comprehensive income of RMB 334,192 thousand for the period, compared to RMB 217,274 thousand in 2022[83]. Market Position and Strategy - The company aims to become a leading supplier in the smart grid and energy measurement sectors, focusing on continuous innovation and market expansion[7]. - The company is committed to addressing the significant demand for energy efficiency and management solutions driven by carbon neutrality goals[7]. - The company has a market share of over 20% in high-end metering products in the domestic market, positioning itself as a leader in the industry[6]. - The group is focusing on expanding its market presence in the communication, high-energy consumption, and large property sectors, which are showing stable growth[38]. - National policies are expected to stimulate demand for metering products, benefiting the group's sales and business development[38]. - The group plans to leverage the "Belt and Road" initiative to enhance its international market presence and expand its product offerings[46]. - The group is focusing on the energy storage and renewable energy markets as key development areas for the second half of the year and beyond[51]. Operational Highlights - Operating expenses for the first half of 2023 were RMB 746.54 million, representing 23% of total revenue, consistent with the same period in 2022[13]. - Financing costs increased to RMB 62.42 million due to rising bank borrowing rates, compared to RMB 51.84 million in the previous year[14]. - The company’s debt ratio (total borrowings to total assets) improved to 22% from 24% in the previous year[17]. - The average number of employees decreased to 4,448 from 4,521 at the end of 2022, with total employee costs rising to RMB 413.87 million from RMB 296.70 million[19]. - The company entered into forward foreign exchange contracts valued at USD 105.85 million to mitigate currency risk from foreign currency transactions[18]. Research and Development - Research and development expenses for the six months ended June 30, 2023, amounted to RMB 274,769,000, compared to RMB 241,599,000 in 2022, reflecting an increase of about 13.7%[104]. - The company plans to enhance product R&D to align with the trends of energy digitalization and intelligence, targeting the development of 2 to 3 hot-selling products[51]. - The group achieved breakthroughs in smart cloud platform technology development, focusing on embedded software real-time operating systems and edge computing for new intelligent communication gateways[59]. International Expansion - The company is actively participating in overseas project bidding, successfully winning projects in Malaysia, marking the start of its international expansion[50]. - The overseas revenue amounted to RMB 771.86 million, a 50% increase from RMB 514.98 million in the same period last year[53]. - In the Asia market, the group maintained its position as a key supplier in Bangladesh and continued significant deliveries in Indonesia, with over USD 10 million in orders signed with China Electric Power Equipment Co., Ltd.[54]. - In Africa, the group delivered over RMB 100 million worth of electric meters in Tanzania and is expanding its business in East Africa, while also maintaining a stable supply in the Ivory Coast[54]. - The group achieved electric meter delivery amounts exceeding RMB 120 million in Brazil and RMB 15 million in Ecuador during the review period[55]. Shareholder Information - As of June 30, 2023, the major shareholder, Mr. Ji Wei, holds 533,266,888 shares, representing 53.55% of the company's issued share capital[69]. - The company declared a final dividend of HKD 0.23 per share for the six months ended June 30, 2023, compared to HKD 0.20 per share in the previous year, which is an increase of 15.0%[107]. - No interim dividend was declared for the six months ended June 30, 2023, consistent with the same period in 2022[67]. Compliance and Governance - The company has maintained compliance with the corporate governance code as per the Hong Kong Stock Exchange rules during the reporting period[73]. - The audit committee, composed entirely of independent non-executive directors, has reviewed the interim results for the six months ended June 30, 2023[72]. - The company confirmed adherence to the securities trading standard code throughout the reporting period[75]. Financial Position - Current liabilities were RMB 6,524,315 thousand, an increase from RMB 5,912,702 thousand at the end of 2022[85]. - Non-current liabilities decreased to RMB 545,491 thousand from RMB 984,877 thousand at the end of 2022[85]. - Cash and bank balances stood at RMB 2,077,253 thousand, slightly up from RMB 2,027,928 thousand at the end of 2022[84]. - The company incurred a net cash outflow from investing activities of RMB 304,032,000, compared to RMB 203,640,000 in the prior year[89]. - The company's cash and cash equivalents at the end of the period stood at RMB 1,677,253,000, slightly down from RMB 1,706,113,000 at the end of the previous year[89].

Share Incentive Plan - The company granted a total of 1,200,000 shares to 4 selected participants under the share incentive plan as of December 31, 2022[2] - The fair value of the granted shares on the grant date was approximately HKD 2,460,000, calculated based on the closing price of HKD 2.05 per share[3] - The total number of shares available for issuance under the share incentive plan after the grant is 97,388,168 shares, representing about 9.78% of the total issued shares as of the report date[4]

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 3,225.68 million, an increase of 26% compared to RMB 2,552.74 million in the same period of 2022[3] - Net profit attributable to the company's owners increased by 49% to RMB 213.82 million, compared to RMB 143.32 million in the same period of 2022[3] - Basic earnings per share for the period were RMB 21.7 cents, up from RMB 14.6 cents in the same period of 2022[3] - Total comprehensive income for the period was RMB 334.19 million, compared to RMB 217.27 million in the same period of 2022[6] - The company reported an adjusted profit before tax of RMB 371,972,000 for the period, after accounting for interest income of RMB 40,493,000 and financing costs of RMB 62,076,000[15] - The company reported a pre-tax profit of RMB 279,110 thousand for the six months ended June 30, 2023, compared to RMB 298,445 thousand for the same period in 2022[21] - The total expenses amounted to RMB 69,455,000, an increase of 33.5% compared to RMB 52,067,000 for the same period in 2022[23] - The total tax expense for the current period was RMB 56,829,000, up from RMB 41,645,000 in the previous year, reflecting a year-on-year increase of 36.5%[23] Revenue Breakdown - AMI business revenue rose to RMB 1,133.61 million, up 22% year-on-year[3] - ADO business revenue increased to RMB 1,112.52 million, reflecting a significant growth of 53% compared to the same period last year[3] - The revenue breakdown includes RMB 1,133,613,000 from intelligent metering solutions, RMB 979,546,000 from communication and fluid metering solutions, and RMB 1,112,523,000 from system and solution offerings[15] - The group recorded a revenue of RMB 979.55 million in the communication and fluid AMI business, representing a 9% increase year-on-year, accounting for 30% of total revenue[46] Assets and Liabilities - Non-current assets increased to RMB 3,231.29 million as of June 30, 2023, compared to RMB 3,229.77 million as of December 31, 2022[7] - Current liabilities totaled RMB 6,524.32 million, an increase from RMB 5,912.70 million as of December 31, 2022[8] - The company's total equity as of June 30, 2023, was RMB 6,322.10 million, compared to RMB 6,128.48 million at the end of 2022[8] - The accounts receivable as of June 30, 2023, stood at RMB 4,819,806,000, an increase of 13.1% from RMB 4,258,163,000 at the end of 2022[27] - The total accounts payable as of June 30, 2023, was RMB 3,485,631,000, a decrease of 4.3% from RMB 3,641,627,000 at the end of 2022[31] Dividends - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2023[3] - The company declared a final dividend of HKD 0.23 per ordinary share for 2023, compared to HKD 0.20 per share in 2022, representing a 15% increase[24] Research and Development - Research and development expenses for the six months ended June 30, 2023, amounted to RMB 274,769 thousand, an increase from RMB 241,599 thousand in the previous year[21] - The company developed new generation environmentally friendly gas-insulated switchgear and smart transformers for medium voltage distribution networks[66] - The company launched a range of energy storage products, including 1000V and 1500V battery cabinets, applicable in various domestic and international projects[67] - The group is focusing on the development of new energy systems and smart management solutions, including comprehensive energy management systems and smart city applications[48] Market Expansion - The group is actively participating in the "Belt and Road" initiative, expanding its overseas sales network to cover Asia, Africa, and South America[49] - The group has successfully bid for projects in Malaysia, marking the beginning of its overseas expansion plans[55] - The overseas revenue for the review period reached RMB 771.86 million, a 50% increase compared to RMB 514.98 million in the same period last year[58] - The group aims to enhance the quality of its products and services while broadening the range of its overseas business and product offerings[50] Operational Efficiency - Operating expenses for the first half of 2023 were RMB 746.54 million, maintaining 23% of total revenue, consistent with the previous year[69] - Operating profit before financing costs and taxes increased by 31% to RMB 434.39 million from RMB 330.95 million in the same period last year[69] - The group has achieved the highest level ML5 certification in the global software capability maturity model (CMMI), providing technical support for overseas market expansion[65] Strategic Focus - The group is focusing on expanding its market presence in Southeast Asia, with Indonesia as the central hub, and plans to penetrate surrounding countries such as Malaysia, Singapore, Vietnam, Thailand, and the Philippines[61] - The group is actively exploring new market opportunities in North America, with its Mexican subsidiary completing meter deliveries exceeding RMB 450 million during the review period[59] - The group aims to enhance its market share in high-end meters by leveraging advanced product technology and brand recognition in the traditional complete set factory sector[44]

Company Overview - Wasion Holdings Limited is a leading provider of smart metering, smart power distribution, and energy efficiency management solutions in China, with over 20% market share in high-end metering products domestically[5]. - The company focuses on the development, production, and sales of energy metering and efficiency management solutions, applicable across various sectors including electricity, water, gas, and heat supply[5]. - Wasion's subsidiary, Wasion Information Technology Co., Ltd., became the first Hunan Province enterprise listed on the Sci-Tech Innovation Board in January 2020, holding a 59.51% stake[6]. - The company operates primarily in Hong Kong and has a registered office in the Cayman Islands, reflecting its international business strategy[4]. - Wasion Holdings Limited is a leading IoT solution provider in smart energy metering and efficiency management, listed on the Hong Kong Stock Exchange since 2005[79]. Financial Performance - The group's revenue for the fiscal year ended December 31, 2022, was approximately RMB 5.856 billion, representing a 28% increase year-on-year[17]. - Net profit for the year was approximately RMB 324 million, a year-on-year increase of 21%[17]. - The basic earnings per share were RMB 0.329, reflecting a 21% increase compared to the previous year[17]. - The company's revenue increased by 28% to RMB 5,855.84 million in 2022, compared to RMB 4,590.76 million in 2021[24]. - Gross profit rose by 29% to RMB 1,929.22 million in 2022, maintaining a gross margin of 33%[24]. - Profit attributable to equity holders increased by 21% to RMB 323.80 million in 2022, up from RMB 268.08 million in 2021[29]. - Total assets reached RMB 13,026.06 million in 2022, compared to RMB 12,672.14 million in 2021[20]. - The company's debt ratio decreased from 22% in 2021 to 20% in 2022[31]. - Operating expenses accounted for 22% of total revenue in 2022, down from 23% in 2021[26]. Business Growth and Strategy - The company aims to become a leading supplier in the smart grid and smart metering sectors, driven by the global shift towards carbon neutrality and energy efficiency[7]. - Wasion's future strategy includes expanding its market presence and enhancing its technological capabilities to meet the growing demand for energy management solutions[7]. - The group aims to develop new energy and energy storage products in line with carbon neutrality trends[18]. - The company plans to expand its international market presence and enhance product quality and service levels[18]. - The company plans to actively participate in the construction of the energy internet in "Belt and Road" countries, increasing overseas R&D and sales expenses[52]. - The company aims to establish a multi-energy, multi-level energy IoT platform, enhancing its capabilities across various sectors including water, electricity, gas, and heat[52]. Innovation and Technology - Wasion has received several awards, including the first-class award for technological progress from the China Instrument and Meter Society for its smart energy meter project[8]. - The group developed a new chip and smart measurement switch to meet the application needs of smart grids and the Internet of Things[17]. - The company is focusing on technological innovation, having developed a new power load management system that supports high-efficiency interactions between power sources and loads[67]. - The company has made significant breakthroughs in various sectors, including distributed photovoltaic systems and wastewater treatment plants[57]. - The company has established a professional team to develop industrial control chip security protection technology and a new software architecture for power measurement equipment[132]. Market Expansion - The company achieved over RMB 5 billion in new energy storage contracts during the year, marking a significant milestone[55]. - The company secured over RMB 200 million in contracts for smart AMI meters in Brazil, delivering over 2 million units during the year[63]. - In Mexico, the company produced and delivered over 1.8 million smart meters, achieving a revenue exceeding RMB 500 million, becoming the leading supplier in the high-end meter market[63]. - The company is expanding its market presence in Southeast Asia, focusing on Indonesia, Malaysia, Singapore, Vietnam, Thailand, and the Philippines[64]. - In Africa, the company is enhancing its operations in Tanzania and has completed bulk deliveries in Uganda, while maintaining its position as a major supplier in Egypt and West Africa[64]. Sustainability and ESG Initiatives - Wasion emphasizes sustainable development as a core principle, integrating social responsibility into its corporate culture to drive high-quality growth[80]. - The company is actively responding to China's dual carbon goals, aiming for carbon peak and neutrality, and has established clear green development objectives[84]. - The company has implemented various ISO standards, including ISO9001, ISO14001, and ISO45001, across its subsidiaries[88]. - The company has established energy-saving and emission reduction management goals for 2022, with a downward trend in energy consumption and emissions compared to the previous year[95]. - The company actively responds to the requirements of the Hong Kong Stock Exchange's ESG reporting guidelines, focusing on key performance indicators in environmental, social, and governance areas[94]. Employee Engagement and Welfare - The company has been recognized as a "Best Employer" for twelve consecutive years and received multiple honors for creating harmonious labor relations and maintaining legal compliance[166]. - The company has implemented various management systems to enhance employee satisfaction, including collective negotiation procedures and communication control procedures[168]. - The company emphasizes employee welfare, providing various benefits such as insurance, free meals, and transportation, enhancing employee satisfaction and sense of belonging[169]. - The company has established sports and recreational facilities, including a football field and gym, to promote employee health and well-being[171]. - The company has a systematic training mechanism for its technical service engineers, ensuring continuous knowledge updates and high-quality service delivery[157]. Leadership and Governance - The company was founded in 2000 and has since established a strong leadership team with extensive experience in various sectors[194]. - The current CEO, Mr. Ji Zhe, has been with the company since 2007 and has a background in capital markets, enhancing the company's strategic direction[194]. - The independent directors bring a wealth of experience in finance and engineering, ensuring strong oversight and governance[197]. - The company has been recognized as a leading enterprise in the electronics industry, reflecting its market position and operational success[195]. - The leadership team has been awarded numerous accolades, reinforcing the company's reputation as a leader in innovation and corporate responsibility[195]. Risk Management and Compliance - The management discussion and analysis section includes a discussion of major risks and uncertainties faced by the group, as well as future development forecasts[200]. - The company has established a risk control center to enhance prevention and monitoring of corruption and bribery[193]. - The company has implemented a zero-tolerance policy towards forced labor and child labor, with no incidents reported[191]. - The company has not encountered any corruption lawsuits against it or its employees[193]. - The company has established a mandatory provident fund scheme for employees in Hong Kong, ensuring compliance with local employment laws[32].

Financial Performance - Revenue for the year ended December 31, 2022, was RMB 5,855.84 million, an increase of 27.6% from RMB 4,590.76 million in 2021[2] - The AMI business revenue was RMB 2,059.25 million, up 20% compared to 2021[2] - The ADO business revenue increased by 64% to RMB 1,894.74 million from RMB 1,154.36 million in 2021[2] - Net profit attributable to shareholders increased by 21% to RMB 323.80 million from RMB 268.08 million in 2021[2] - Basic earnings per share for the year were RMB 32.9 cents, compared to RMB 27.2 cents in 2021[2] - The adjusted profit before tax for the group was RMB 582,434 thousand, reflecting a significant increase compared to RMB 472,733 thousand in the previous year[23] - Gross profit amounted to RMB 1,929.22 million, up 29% from RMB 1,498.77 million in 2021, maintaining a gross margin of 33%[42] - Profit attributable to equity holders increased by 21% to RMB 323.80 million, up from RMB 268.08 million in 2021[79] Dividends and Shareholder Returns - The board proposed a final dividend of RMB 0.23 per share, up from RMB 0.202 per share in the previous year[2] - The company proposed a final dividend of HKD 0.23 per share for the year ended December 31, 2022, compared to HKD 0.20 per share in 2021, totaling RMB 201,337,000[31] Assets and Liabilities - Total assets as of December 31, 2022, were RMB 9,796.28 million, compared to RMB 9,588.34 million in 2021[7] - Current liabilities increased to RMB 5,912.70 million from RMB 5,758.58 million in 2021[8] - Non-current liabilities totaled RMB 984.88 million, up from RMB 833.70 million in 2021[8] - The company's equity attributable to shareholders was RMB 4,655.90 million, compared to RMB 4,631.93 million in 2021[8] Research and Development - Research and development expenses for 2022 amounted to RMB 551,601, up 23.1% from RMB 448,371 in 2021, with capitalized development costs decreasing to RMB 123,760 from RMB 147,598[28] - The group is actively engaged in research and development related to source-network-load-storage interaction technologies, aligning with the dual carbon policy[50] - The group is committed to R&D-driven innovation, aligning with national dual carbon development policies and advancing smart city and new energy businesses[71] Market and Industry Trends - In 2022, China's GDP grew by 3% year-on-year, with a total value of RMB 1,210,207 billion, despite challenges from inflation and supply chain disruptions[39] - The number of new energy vehicles in China reached 13.1 million in 2022, marking a significant year-on-year growth of 67.13%[39] - The global smart meter market is projected to grow at a compound annual growth rate (CAGR) of 8.71% from 2022 to 2027, with the software and services segment expected to grow at a CAGR of 13.41%[64] International Expansion - The company is positioned to benefit from international cooperation under the Belt and Road Initiative, with over 200 cooperation documents signed with 149 countries[53] - The overseas revenue for the year reached RMB 1,234.69 million, a 73% increase compared to RMB 712.45 million in the previous year[65] - The group secured overseas orders amounting to approximately RMB 2,003.37 million, representing a 74% year-on-year growth[65] Operational Efficiency - Operating expenses amounted to RMB 1,306.01 million, representing 22% of total revenue, a decrease from 23% in the previous year[78] - The company has adhered to the corporate governance code, except for the absence of an independent non-executive director at the annual general meeting held on June 1, 2022[88] - The audit committee is responsible for evaluating the effectiveness of the group's financial reporting, internal controls, and risk management systems[89] Employee and Governance - The company employed 4,521 staff as of December 31, 2022, an increase from 3,578 in the previous year[84] - The board of directors includes both executive and independent non-executive members, ensuring a diverse governance structure[91] - The chairman of the board is Ji Wei, with a team of directors overseeing the company's operations and governance[91]

Market Position and Growth - The company achieved a market share of over 20% in the domestic high-end metering products sector, establishing itself as a leader in China[9]. - The company aims to become a leading supplier in the international smart grid and metering sectors, driven by the global shift towards energy efficiency and carbon neutrality[13]. - The company is actively expanding its international market presence by establishing local subsidiaries and factories to enhance localization capabilities[34]. - The company plans to focus on five major power generation groups in 2022, gradually achieving domestic substitution of electric meters in renewable energy and traditional power sectors[77]. - The group aims to expand its overseas market presence, particularly in emerging markets like Latin America and Africa, leveraging opportunities in energy infrastructure development[85]. Financial Performance - The company's revenue for the fiscal year ended December 31, 2021, was approximately RMB 4.59 billion, representing a year-on-year growth of 16.3%[30]. - Net profit for the same period was approximately RMB 268 million, an increase of 16% compared to the previous year[30]. - Basic earnings per share were RMB 0.272, reflecting a year-on-year growth of 15.7%[30]. - International market revenue reached RMB 712 million, marking a significant year-on-year increase of 86.6% despite ongoing global pandemic challenges[30]. - The group’s total revenue for 2021 was RMB 4,590.76 million, an increase of 16% compared to RMB 3,948.75 million in 2020[70]. Research and Development - The company’s R&D efforts include the development of the fifth-generation high-speed power line carrier chip WTZ13, which meets the technical requirements of the State Grid and Southern Grid[12]. - The company is committed to continuous innovation and aims to enhance its core competitiveness through independent chip development[12]. - The company has increased R&D investment in energy internet and smart city technologies, achieving CMMI-ML5 certification for high-quality software integration[84]. - The company has established a research and development center in Shenzhen for integrated operation management of charging and swapping products targeting delivery and logistics personnel[111]. - The company invests over 8% of its annual revenue in research and development and technological innovation to enhance value creation capabilities[191]. Strategic Partnerships and Contracts - The company signed a supply contract with the Federal Electricity Commission in Mexico worth over RMB 260 million, supplying over one million electric meters[26]. - The company has initiated strategic cooperation with China Power International Development to jointly develop new energy and photovoltaic agriculture projects[27]. - The group has signed a strategic cooperation framework agreement with China Power International Development to expand the ADO new energy market in several provinces[92]. - The company has successfully won contracts worth RMB 637 million in the unified bidding organized by the State Grid, marking a five-year high[74]. - The group secured overseas orders amounting to approximately RMB 1,149.72 million, representing a year-on-year growth of 10.6%[98]. Sustainability and Social Responsibility - Wasion Holdings Limited is a leading provider of smart metering, smart distribution, and energy efficiency management solutions in China, aiming to become a global expert in energy metering and efficiency management[119]. - The company emphasizes its commitment to sustainable development and has integrated social responsibility into its mid- to long-term development strategy, focusing on energy technology advancement as a key driver for achieving carbon neutrality[121]. - The company has established a social responsibility management mechanism driven by the board of directors, ensuring stakeholder participation and continuous improvement in social responsibility performance[129]. - The company actively engages in social welfare and volunteer activities, enhancing its community presence and brand reputation[150]. - The company focuses on ESG performance as a comprehensive indicator of its sustainable development capabilities in response to climate change and carbon neutrality goals[138]. Innovation and Technology - The company launched the first domestically produced power control chip "Fuxi," ensuring the independence of core intellectual property rights[69]. - The company has developed and produced energy storage battery containers with 1000V and 1500V specifications, focusing on lithium iron phosphate battery materials[111]. - The company’s new modular NB-IoT water meter with current monitoring capabilities was launched in 2021, enabling remote battery level prediction and circuit fault self-diagnosis[110]. - The group completed the development and promotion of a new platform for single and three-phase ANSI meters in the Mexican market, and launched a new smart meter AMI solution based on Wi-SUN technology in Brazil[113]. - The company is focused on developing smart energy solutions, including energy storage and microgrid systems, to contribute to carbon reduction and energy efficiency[173]. Operational Efficiency and Management - Operating expenses accounted for 23% of total revenue in 2021, up from 22% in 2020, totaling RMB 1,039.59 million[50]. - The company achieved a 30% increase in production efficiency through smart manufacturing upgrades, including the establishment of a data center and the application of MES systems[182]. - The company has implemented a comprehensive waste management system to enhance recycling and reduce material loss during operations[169]. - The company emphasizes quality management, implementing scientific inspection standards and regular quality training to ensure product quality throughout its lifecycle[196]. - The company has established a comprehensive management system based on ISO standards, enhancing its lean management capabilities and supporting the "dual carbon" policy[134].

Market Position and Product Development - The company achieved a market share of over 20% in the domestic high-end metering products sector, establishing itself as a leader in energy measurement and efficiency management solutions [9]. - The subsidiary, Wasion Information Technology Co., Ltd., which holds 58.5% ownership, became the first Hunan Province enterprise to be listed on the Sci-Tech Innovation Board in January 2020 [11]. - The company developed a new generation of smart prepaid products based on the FM33A0 platform, successfully promoting them in markets such as South Africa, Ivory Coast, Madagascar, Uganda, Egypt, Nigeria, Uruguay, and Russia [13]. - The company is committed to independent chip research and development, enhancing its core competitiveness, and has passed the National Grid Measurement Center inspection for its fifth-generation high-speed power line carrier chip WTZ13 [13]. - The company aims to become a leading supplier in the international smart grid and smart metering sectors, driven by the goals of "carbon neutrality" and "carbon peak" in China and globally [14]. - The company focuses on providing comprehensive solutions for energy management using IoT technology, covering data perception, network transmission, and application management [11]. - The company has established a solid foundation for breakthroughs in anti-theft technology in future metering markets by developing enterprise functional specifications based on IEC62056 standards [13]. - The company emphasizes continuous innovation and aims to build the Wasion brand into a globally recognized name in the smart metering field [14]. - The company’s products and services are expected to benefit every city, enterprise, and household in the future [15]. - The company is dedicated to becoming a major supplier in the international smart grid and metering sectors, aligning with its mission as an "energy measurement and efficiency management expert" [14]. Financial Performance - The group's operating revenue for the fiscal year ended December 31, 2020, was RMB 3,949 million, an increase of 8.0% compared to the previous year [35]. - Net profit attributable to the parent company was RMB 231 million, a decrease of 17.6% year-on-year, with earnings per share at RMB 0.235 [35]. - The AMI business revenue declined by 4.7% year-on-year, with a significant drop of 27.9% in the first half, but a recovery of 26.8% in the second half [35]. - New contract value for communication and fluid AMI business increased by 14% year-on-year [35]. - The ADO business achieved a breakthrough in the Southern Power Grid market, with a contract value of approximately RMB 350 million, an increase of over 2.4 times compared to 2019 [35]. - International market expansion led to overseas revenue of RMB 381 million, a significant increase of 81.4% despite the global pandemic [35]. - Revenue increased by 8% to RMB 3,948.75 million in 2020, compared to RMB 3,655.65 million in 2019 [52]. - Gross profit rose by 9% to RMB 1,246.57 million in 2020, with a gross margin of 32%, up from 31% in 2019 [53]. - Profit attributable to equity holders decreased by 18% to RMB 231.19 million in 2020, down from RMB 280.57 million in 2019 [59]. - Operating expenses increased to RMB 864.86 million, accounting for 22% of total revenue, up from 21% in 2019 [56]. - Total assets grew to RMB 11,270.08 million in 2020, compared to RMB 10,096.77 million in 2019 [43]. - The current ratio improved to 1.69 in 2020, up from 1.54 in 2019 [44]. - The debt ratio decreased to 20% in 2020, down from 21% in 2019 [62]. - Other income increased to RMB 166.81 million in 2020, compared to RMB 130.55 million in 2019 [54]. Market Expansion and Strategic Initiatives - The company plans to expand into non-grid markets such as rail transportation and charging stations, focusing on technological innovation [39]. - The company aims to enhance its market share by developing high-standard, high-tech products for both domestic and international customers [40]. - The group launched a new generation of IoT smart energy meters, which is the first in the country to pass national standards and market supervision approvals [28]. - The group established a data center division to explore new industry opportunities driven by the demand from new infrastructure, including 5G and data centers [36]. - The group aims to develop "new energy +" solutions, integrating renewable energy with storage and electric transportation [36]. - The national grid plans to invest over USD 70 billion annually over the next five years to upgrade the grid towards an energy internet [37]. - The group is focusing on the development of new products such as NB-IoT metering solutions and smart sockets to capitalize on the new infrastructure market opportunities [80]. - The group plans to leverage its technological advantages in the power IoT sector to expand into smart city IoT solutions, providing integrated energy solutions across various industries [89]. - The group anticipates that investments in the power grid and related industries will exceed RMB 60 trillion during the 14th Five-Year Plan period [88]. - The group aims to maintain its leading market share in the State Grid and Southern Power Grid by enhancing its product structure and optimizing technology development [89]. International Business and Collaborations - The overseas business revenue reached RMB 381.97 million, an 81% year-on-year growth [101]. - The group secured overseas orders amounting to approximately RMB 1,040 million, reflecting a 93% year-on-year increase [103]. - The global smart meter market is projected to grow from USD 20.7 billion in 2020 to USD 28.6 billion by 2025, with a compound annual growth rate of 6.7% [100]. - The group successfully entered the Indonesian single-phase electricity meter supplier list and received procurement orders for three-phase industrial smart metering equipment [104]. - In the African market, the group achieved grid operation for its first power AMI project in Egypt and secured contracts for smart water meters, marking a breakthrough in the Egyptian water meter business [104]. - The group has established a strategic partnership with Trilliant to further develop the South American market, particularly in Ecuador, Colombia, Chile, and Peru [105]. - The group successfully delivered the second phase of the smart meter order for TNB in Malaysia, enhancing its position in the local market [104]. - The group is expanding its international market presence by establishing factories in Brazil and Mexico, targeting surrounding markets like Ecuador and Colombia [107]. - The group’s new anti-theft technology has achieved breakthroughs in the electricity meter markets of India and Indonesia, enhancing its competitive edge [113]. Initial Public Offering (IPO) and Financial Strategy - Wasion Technology Co., Ltd. completed its IPO on the STAR Market on January 21, 2020, issuing 50 million A-shares at a price of RMB 13.78 per share, raising approximately RMB 610.83 million after expenses [117]. - The net proceeds from the IPO are allocated to various projects, including RMB 60.29 million for IoT sensing layer monitoring equipment expansion and RMB 204.87 million for IoT network layer product expansion, with a total of RMB 610.83 million earmarked for these initiatives [117]. - Post-IPO, Wasion's ownership in Wasion Technology decreased to approximately 58.5%, allowing for better resource allocation and strategic planning across different business segments [115]. - The IPO is expected to enhance Wasion Technology's reputation and position in negotiations for new business, benefiting Wasion Holdings through equity growth [115]. - Wasion Technology aims to leverage its independent listing to access capital markets for equity and/or debt financing, facilitating operational expansion and improving financial performance [115]. - The total net proceeds from the IPO will be utilized for various projects, with RMB 417.71 million remaining after initial allocations [117]. Environmental, Social, and Governance (ESG) Commitment - The company emphasizes its commitment to environmental, social, and governance (ESG) responsibilities, integrating these into its long-term development strategy [129]. - The company has established a social responsibility management framework driven by the board, ensuring regular reporting and oversight of ESG-related matters [129]. - Continuous improvement in social responsibility practices is being pursued through regular internal supervision and third-party assessments [154]. - The company is committed to sustainable development by integrating stakeholder expectations into its mid-to-long-term strategic planning [160]. - The company has established key performance indicators for environmental, social, and governance (ESG) aspects in line with regulatory guidelines [157]. - The company aims to control hazardous waste emissions to below 0.003 tons per million revenue and non-hazardous waste to below 0.5 tons per million revenue [161]. - The target for greenhouse gas emissions is set to be below 4.2 tons per million revenue, while water usage is aimed to be controlled at 146 tons per million revenue [161]. - The company has committed to improving resource utilization and reducing energy consumption as part of its environmental management policy [165]. - No violations of environmental laws and regulations were reported during the reporting period [164]. - The company emphasizes the importance of stakeholder communication and has established diverse channels for engagement [153]. - The strategic focus includes low-carbon development, circular economy, and green development in response to post-pandemic challenges [162]. - The company has identified eight key stakeholders to enhance its strategic and business development [152]. Employee Development and Safety - Continuous improvement in employee well-being and talent management is a priority for the company, fostering a positive work environment [179]. - As of December 31, 2020, Wasion Holdings Limited had approximately 3,100 employees, with a turnover rate of 7.7% for male employees and 6.7% for female employees [185]. - The company reported zero work-related injuries and fatalities over the past three years, maintaining a strong focus on employee safety and health [188]. - In 2020, Wasion received 220 applications for various innovation funds, winning 196 awards, resulting in an award rate of 89% and a total fund disbursement of 1.141 million yuan [198]. - The average training hours for male employees were 163.3 hours, while female employees averaged 164.0 hours, indicating a strong commitment to employee development [191]. - The company has established a rigorous onboarding process to prevent child labor, ensuring compliance with relevant labor laws and regulations [184]. - Wasion has been awarded the title of "Top 100 Manufacturing Enterprises in Hunan Province" for 2020, highlighting its industry leadership [199]. - The company has implemented a comprehensive training system, with 76% of general employees and 82% of middle management participating in training programs [191].

Revenue and Profitability - Revenue for the six months ended June 30, 2020, was RMB 1,687,701 thousand, a decrease of 12.2% compared to RMB 1,923,930 thousand in 2019[9]. - Net profit attributable to shareholders was RMB 116,264 thousand, down 31.8% from RMB 170,294 thousand in 2019, with a net profit margin of 7%[9][10]. - Gross profit for the same period was RMB 542,686 thousand, resulting in a gross margin of 32%, up from 30% in 2019[10]. - Operating profit before financing costs and taxes decreased by 7% to RMB 258.99 million from RMB 278.44 million[16]. - Profit before tax decreased to RMB 209,556 thousand, a decline of 12.9% from RMB 240,436 thousand in the previous year[72]. - The group’s net profit attributable to shareholders was RMB 116.26 million, a decrease of 32% from RMB 170.29 million in the first half of 2019[29]. - The total comprehensive income for the period was RMB 151,039 thousand, a decrease of 30.3% from RMB 216,508 thousand in 2019[73]. Assets and Liabilities - Total assets increased to RMB 10,980,116 thousand from RMB 9,426,362 thousand in 2019, reflecting a growth of 16.5%[9]. - Current assets as of June 30, 2020, were approximately RMB 8,411.10 million, up from RMB 7,338.16 million at the end of 2019[18]. - Total liabilities increased to RMB 5,442,990 thousand from RMB 4,774,729 thousand, primarily due to an increase in interest-bearing bank and other borrowings[75]. - The company's equity attributable to shareholders rose to RMB 4,364,303 thousand, compared to RMB 4,175,213 thousand in 2019[9]. - The company's net asset value rose to RMB 5,377,327 thousand, compared to RMB 4,846,400 thousand at the end of 2019[75]. Cash Flow and Financing - Cash flow from financing activities resulted in a net inflow of RMB 722,301 million, including new bank loans of RMB 991,926 million and repayment of bank loans of (RMB 777,724) million[79]. - The group’s financial liabilities, including interest-bearing bank and other borrowings, amounted to RMB 2,346,981,000 as of June 30, 2020, compared to RMB 2,073,869,000 as of December 31, 2019, reflecting an increase of approximately 13.2%[130]. - The company reported cash and bank balances of RMB 1,488,927 million, with fixed deposits of RMB 171,003 million[79]. Operational Performance - The accounts receivable turnover period increased to 442 days from 331 days in 2019, indicating a longer collection period[10]. - Inventory turnover period increased to 92 days from 69 days in 2019, suggesting slower inventory movement[10]. - Operating expenses rose to RMB 361.12 million, accounting for 21% of total revenue, up from 18% in the previous year[14]. - The group secured new contracts worth approximately RMB 1,089.75 million during the period, reflecting a 4% year-on-year growth[37]. Market and Business Development - The company aims to continue innovating and expanding its market presence in the energy measurement and efficiency management sector[7][8]. - The group aims to enhance its market share in the power grid sector, driven by successful expansion in the southern power grid market and improved competitiveness in integrated products[45]. - The group is actively developing "new energy +" solutions, integrating renewable energy with storage, 5G, and other applications to enhance business value[45]. - The group has established a new division focused on 5G construction and applications to capitalize on emerging opportunities in the market[44]. Research and Development - Research and development costs for the period were RMB 126,967,000, an increase of 9.1% from RMB 115,920,000 in 2019[97]. - The group plans to continue developing its proprietary chips to enhance its core competitiveness in the IoT sector[37]. Corporate Governance and Shareholder Information - The company does not recommend an interim dividend for the six months ended June 30, 2020, compared to 6 HK cents per share for the same period in 2019[60]. - The major shareholder, Ji Wei, holds 530,286,888 shares, representing 53.25% of the issued share capital[63]. - Ernst & Young has been appointed as the auditor following the resignation of Deloitte due to a disagreement over audit fees[59]. International Operations - The group’s international market revenue was RMB 93.14 million, a decline of 53% year-on-year, primarily due to production halts caused by the pandemic[47]. - The group secured overseas orders amounting to approximately RMB 648.68 million, representing a year-on-year growth of 110%[48]. - The group achieved successful grid operation for its first AMI project in Egypt and obtained contracts for smart water meters, marking a breakthrough in the Egyptian market[48]. Financial Reporting and Compliance - The company has adopted revised Hong Kong Financial Reporting Standards, which did not impact its financial position or performance[81]. - The company has complied with the corporate governance code as per the listing rules, except for one instance regarding attendance at the annual general meeting[65].

Market Position and Expansion - The company reported a market share of over 20% in the domestic high-end metering products sector[6]. - The company aims to become a leading supplier of smart power distribution and energy efficiency management solutions in China and globally[6]. - The company signed a project in Cambodia for low-voltage cabinets using its brand circuit breakers, indicating market expansion efforts[9]. - The group completed the acquisition of the Dowertech factory in Brazil, establishing a solid foundation for market expansion in South America[15]. - The group is actively pursuing pilot projects in developing regions to capture more market share and establish localized marketing teams[24]. - The company is expanding its presence in the water supply sector, successfully entering multiple cities for water supply projects, covering 14 towns[53]. - The company aims to expand its market share by establishing joint ventures in developing regions and providing localized marketing teams[61]. - The company has successfully launched the FM33A0 smart prepaid series products in international markets such as South Africa, Ivory Coast, Bangladesh, and Uganda[60]. Financial Performance - The group reported a revenue of RMB 3,656 million for the fiscal year ending December 31, 2019, representing a 9% increase year-over-year, with a net profit of RMB 281 million, up 4% from the previous year[22]. - Revenue increased by 9% to RMB 3,655.6 million in 2019, compared to RMB 3,340.3 million in 2018[37]. - Gross profit rose by 16% to RMB 1,147.63 million in 2019, with a gross margin of 31% compared to 30% in 2018[38]. - Profit attributable to equity holders increased by 3.6% to RMB 280.57 million in 2019, up from RMB 270.82 million in 2018[41]. - The company reported a revenue of RMB 3,655.6 million for the year, representing a 9% increase compared to RMB 3,340.3 million in the previous year[50]. - The smart electricity metering solutions business generated revenue of RMB 1.71 billion, a slight decrease of 1% compared to the previous year, while the communication and fluid metering solutions business saw a revenue increase of 26% to RMB 1.17 billion[22]. - The company secured contracts worth RMB 4.98 billion from the State Grid and RMB 2.49 billion from the Southern Grid during the year[52]. Innovation and Technology - The company has successfully passed various certifications, including the IDIS P2 DLM full functionality certification for smart meters, becoming the first domestic manufacturer to achieve this[9]. - The company is focused on continuous innovation and aims to establish itself as a major supplier in the international smart grid and metering sectors[6]. - The company has developed a project for IoT-based smart energy management, which was approved as a 2019 innovation and entrepreneurship technology investment project in Hunan Province[12]. - The company has developed a new generation of smart meters for the State Grid and Southern Grid, which began trial operations in January 2020[52]. - The company has developed a new generation of IoT smart energy management products, establishing a solid technical foundation for expanding into the smart distribution and energy market[60]. - The company is committed to continuous R&D investment to adapt to the rapidly changing industry landscape and improve product quality[64]. - The company plans to enhance its R&D efforts in NB-IoT smart water and gas meters to increase market penetration, which currently stands at only 20-30%[63]. Awards and Recognition - The company received the "2019 PLC-IoT Industry Innovation Award" and was recognized as a key enterprise in artificial intelligence in Changsha[10]. - The company achieved a quality management recognition as a "Benchmark Enterprise in Industrial Quality" in Hunan Province[11]. - The group received the "SIVACON 8PT Core Partner" award from Siemens, highlighting its recognized capabilities in intelligent manufacturing[15]. - The company was recognized with several awards, including the second prize for technological progress from China Southern Power Grid and being named a key enterprise in artificial intelligence in Changsha[153]. Social Responsibility and Sustainability - The company emphasizes the importance of social responsibility in its strategic development, integrating it with long-term business goals[81]. - The company has established a comprehensive social responsibility organizational structure to enhance stakeholder engagement and promote sustainable practices[83]. - The company is committed to sustainable development, focusing on resource conservation and environmental friendliness as core objectives[103]. - The company actively promotes the development of an international exchange platform for sustainable development in the smart grid sector[92]. - The company has implemented a multi-channel communication strategy to engage stakeholders in its social responsibility initiatives[89]. - The company has established a comprehensive social responsibility management system that integrates quality, environmental, and occupational health safety management[87]. - The company has made significant investments in technology innovation to enhance energy efficiency and reduce emissions[121]. Employee Engagement and Development - The company employed 3,460 staff in 2019, with total employee costs of RMB 335.38 million[42]. - The company conducted a satisfaction survey among employees to improve welfare and development platforms[90]. - The company organized an open day event for employees' families to showcase achievements in the smart energy sector[93]. - The company has established a talent development program to ensure employee welfare and work-life balance[176]. - The training participation rates were 95.9% for female employees and 96.5% for male employees, with an average training duration of 32.0 hours for females and 28.9 hours for males[145]. - The employee assistance fund distributed a total of 332,900 yuan in 2019, benefiting 85 employees, with a cumulative distribution of over 6.3 million yuan since its establishment[168]. Governance and Compliance - The company has a diverse board with members holding significant academic and professional credentials in finance, engineering, and public policy[182][183]. - The independent non-executive directors bring extensive experience from various prestigious institutions and organizations, enhancing the company's governance[182]. - The company has established service contracts for its directors, with terms of three years for executive directors and one year for non-executive directors[190]. - The company has complied with the relevant regulations regarding the disclosure of shareholdings and related party transactions[197]. - The company has not reported any violations related to child labor or forced labor laws during the reporting period[146]. - The company has not encountered any cases of corruption or bribery during the reporting period[166]. Environmental Impact - The total greenhouse gas emissions amounted to 14,976 tons, with an average emission of 4.1 tons per million RMB in revenue[112]. - The company discharged 308,000 tons of domestic wastewater, averaging 84.3 tons per million RMB in revenue[112]. - Solid waste generated included 236 tons of waste paper and plastic, with an average of 0.06 tons per million RMB in revenue[112]. - The total energy consumption was 21,681,840 kWh, averaging 5,931 kWh per million RMB in revenue[120]. - The company has implemented a green management strategy, focusing on reducing resource consumption and promoting green packaging[115]. - The company actively promotes waste classification and environmental education among employees[113].

Financial Performance - Revenue increased by 16% to RMB 1,923.93 million for the six months ended June 30, 2019, compared to RMB 1,654.93 million in the same period of 2018[20]. - Gross profit rose by 17% to RMB 581.27 million, maintaining a gross margin of 30% for both periods[20]. - Operating profit increased to RMB 282.27 million, with an operating margin of 15%, up from 13% in the previous year[19]. - Net profit attributable to shareholders was RMB 170.29 million, compared to RMB 137.41 million in the same period of 2018[18]. - Other income amounted to RMB 61.24 million, primarily from interest income, government subsidies, and VAT refunds[21]. - Operating expenses were RMB 352.50 million, representing 18% of total revenue, a decrease from 20% in the previous year[23]. - Earnings per share (basic) were RMB 17.0, up from RMB 13.8 in the same period of 2018[18]. - The total comprehensive income for the period was RMB 216,508,000, indicating a strong overall financial position[68]. - The company reported a pre-tax profit of RMB 240,436,000 for the six months ended June 30, 2019, compared to RMB 183,448,000 for the same period in 2018, reflecting a growth of about 31.1%[110][111]. Assets and Liabilities - Total assets reached RMB 9,426.36 million, up from RMB 8,288.48 million in 2018[18]. - As of June 30, 2019, current assets were approximately RMB 6,530.98 million, an increase from RMB 5,779.53 million as of December 31, 2018[27]. - Current liabilities rose to RMB 4,257,022 thousand, compared to RMB 3,498,996 thousand in the previous year, indicating an increase of about 21.7%[70]. - The company's equity attributable to owners decreased slightly to RMB 4,175,213 thousand from RMB 4,186,660 thousand, a decline of approximately 0.3%[71]. - The company’s non-current liabilities increased to RMB 399,257 thousand from RMB 367,015 thousand, reflecting a rise of approximately 8.8%[71]. - The company reported a total of RMB 3,958,129 thousand in accounts receivable and other receivables, up from RMB 3,303,877 thousand, representing a growth of about 19.8%[70]. Debt and Financing - The company’s debt ratio increased to 20%, compared to 17% in the previous year[19]. - The financing cost for the six months ended June 30, 2019, was RMB 38.00 million, an increase from RMB 24.31 million in the same period of 2018, attributed to higher bank borrowings and interest rates[24]. - New borrowings amounted to RMB 825,248 thousand, while loan repayments totaled RMB (380,469) thousand[80]. - Interest expenses for borrowings increased to RMB 37,836,000 in the first half of 2019, compared to RMB 24,308,000 in the same period of 2018, representing a 55.8% increase[112]. Market and Segment Performance - The electric AMI business generated revenue of RMB 986.30 million, a 10% increase from RMB 893.55 million in the same period last year, accounting for 51% of total revenue[38]. - The communication and fluid AMI business achieved revenue of RMB 584.94 million, a 16% increase from RMB 503.22 million, representing 31% of total revenue[39]. - The ADO business recorded revenue of RMB 352.69 million, a 37% increase from RMB 258.15 million, accounting for 18% of total revenue[41]. - The international market revenue reached RMB 199.57 million, representing a 12% increase compared to RMB 177.64 million in the same period last year[43]. Research and Development - The company plans to invest heavily in R&D to enhance its technological competitiveness in the next-generation power measurement technology standards[47]. - The group is focusing on reducing costs for smart meter AM solutions and developing a series of products for energy measurement and efficiency management[46]. Corporate Governance and Shareholder Information - A mid-term dividend of HKD 0.06 per share has been declared, compared to no dividend in the same period last year[50]. - As of June 30, 2019, the major shareholder, Ji Wei, holds 53.00% of the issued share capital, amounting to 529,986,888 shares[56]. - The audit committee is responsible for evaluating the effectiveness of the financial reporting process and internal controls[57]. - The company has complied with the corporate governance code, except for one specific provision regarding attendance at the annual general meeting[58]. Innovations and Strategic Initiatives - The group is collaborating with Alibaba Cloud to develop IoT terminal products based on LoRaWAN technology, with plans for commercial certification and market launch in the second half of the year[40]. - The group has expanded its market presence in Bangladesh, Indonesia, South Africa, and Tanzania, indicating a strategic focus on international growth[40]. - The group is committed to innovation in business models to create new value for customers, particularly in the context of the digital grid and pervasive power IoT[46]. Compliance and Accounting Standards - The company applies HKFRS 16, which resulted in significant changes in accounting policies related to leases[98]. - The company has adopted HKFRS 15, which allocates the consideration in contracts to lease and non-lease components, with no significant impact on the financial statements as of January 1, 2019[104][106].