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].
威胜控股(03393) - 2020 - 年度财报