Wasion : Announces 2021 Annual Results - International business records significant growth of 87% through expanding overseas market presence

Wasion Holdings Limited Announces 2021 Annual Results International business records significant growth of 87% through expanding overseas market presence

28 March 2022

[Press release - For Immediate Release]

Announces 2021 Annual Results ***

International business records significant growth of 87% through

expanding overseas market presence

Continuous technological innovation strengthens competitive edge in three major business segments

Financial Highlights

• - Turnover of Power Advanced Metering Infrastructure ("Power AMI") business increased by

  5% YoY to RMB1,714 million

• - Turnover of Communication and Fluid Advanced Metering Infrastructure ("C&F AMI")

  business increased by 26% YoY to RMB1,719 million

• - Turnover of Advanced Distribution Operations ("ADO") business increased by 22% YoY to

  RMB1,157 million

• - Turnover of international markets was RMB712 million, representing a significant increase of 87% YoY

• - Net profit was RMB268 million, representing an increase of 16% YoY

• - Basic earnings per share amounted to RMB27.2 cents

• - The Board of Directors proposed a final dividend of HKD0.2 per share

(Hong Kong, 28 Mar 2022) Wasion Holdings Limited (the "Company", "Wasion" or the "Group";

stock code: 3393.HK), China's leading provider of energy measurement equipment and energy-saving solutions, today announced its audited consolidated annual results for the year ended 31 December 2021 ("the year under review").

During the year under review, the Group recorded a total turnover of RMB4,591 million (2020: RMB3,949 million), representing an increase of 16% YoY; gross profit was RMB1,499 million (2020: RMB1,247 million), representing a 20% increase over last year. During the year under review, the Group's overall gross profit margin was 33% (2020: 32%), representing an increase of 1 percentage point YoY, which was due to the ongoing cost-reduction measures undertaken by the Group in 2021 including continually increasing investment in research and development ("R&D") of smart-manufacturing platforms to improve efficiency and optimize product structure by increasing the proportion of high-margin products. Basic earnings per share was RMB27.2 cents (2020: RMB23.5cents). The Board of Directors proposed a final dividend of HKD0.2 per share.

Page 1 of 3

Wasion Holdings Limited Announces 2021 Annual Results International business records significant growth of 87% through expanding overseas market presence

28 March 2022

During the year under review, the Group performed satisfactorily across all business segments with its C&F AMI, ADO and international business significantly improving and posting double-digit growth in turnover. Power AMI business recorded a turnover of RMB1,714 million, representing a 5% increase YoY; Communication and Fluid AMI business recorded a turnover of RMB1,719 million, representing a 26% increase YoY; ADO business recorded a turnover of RMB1,157 million, representing a 22% increase YoY; and overseas business turnover was RMB712 million, representing an impressive 87% increase YoY.

For the Power AMI business, total contracts won from the State Grid Corporation of China ("State Grid")'s centralized tenders in 2021 were worth RMB637 million, the highest figure for the last five years. Of this, power grid business was the main source, with the growth in sales recorded mainly due to the repricing of products for State Grid and China Southern Power Grid Company Limited ("Southern Grid") based on the revised technical standards for products. For non-power grid business, the Group continued improving products such as NB-IoT and CAT1 which are being developed for the new infrastructure market, and won tenders from telecommunication operators in Hunan, Hainan, Jiangsu and Shanxi provinces.

In terms of its C&F AMI business during the year under review, the Group recorded healthy results for "Internet of Energy (IoE)" and "Digitally-intelligent City" construction. In terms of IoE, the Group was awarded CMMI-ML5 certification, the highest international maturity level for software, becoming one of the world's few enterprises that can provide high-quality software integration for the global market. In terms of digital-intelligent cities, the Group by taking an "IoT Platform" as the foundation, accessed intelligent equipment at the perception layer, and offered data-sharing to customers. Additionally, the Group partnered with Tencent to launch a joint solution for smart cities, and benefitted from Tencent's strategic investment to develop industrial Internet and

digitally-intelligent cities.

In terms of its ADO business during the year under review, the Group maintained growth from power grid companies in terms of the scope, frequency and volume of successful bids, securing tenders in the five base markets of Beijing, Shandong, Jiangsu, Hunan and Guangdong.

Benefiting from steady growth in key industry sectors such as data centers, rail transit and medical care - and breakthroughs achieved in the green transportation market by innovations - it won contracts won the non-power grid market worth RMB1,112 million, representing a 77% increase YoY. In terms of the new energy market, the Group officially entered into a strategic cooperation framework agreement with China Power International Development Limited and both parties will collaborate in Ningxia, Hunan, Guangxi and other provinces to rapidly expand ADO's new energy market.

With the accelerated deployment of smart power meters, electricity consumption information collection and AMI systems in overseas markets, the Group has achieved significant growth in international markets thanks to its superior product quality and technical advantages. In Asia, the Group continued to be a leading supplier in Indonesia, Bangladesh and Malaysia. In the Middle East, the Group successfully renewed AMI contracts with Saudi Arabia for high-volume orders contract, expanding its core business. In Africa, the Group continued to be a major supplier in

Egypt's power metering market, successfully completing a smart AMI pilot project; In Tanzania, a

manufacturing plant owned by the Group's subsidiary commenced operations, enabling it to secure a stable market share while maintaining good relationships with Chinese SEOs and factories. In South America, the Group's Brazil subsidiary strengthened its operational and delivery capabilities, and won bids from multiple Brazilian power companies for power meter

Page 2 of 3

Wasion Holdings Limited Announces 2021 Annual Results International business records significant growth of 87% through expanding overseas market presence

28 March 2022

projects; in Mexico, the first phase of construction for a new factory was completed and Phase II of construction has commenced, becoming one of its primary suppliers of the Comisión Federal de Electricidad of Mexico. In North America, the Group signed a strategic cooperation agreement with Trilliant Networks, Inc., and plans to further expand its business in the US and Canadian markets over the next few years.

The Group is committed to pursuing the national development goals of peak emissions and carbon neutrality, and complying with the requirements of digital power grids and the large-scale use of new energy as the market transforms.To drive innovation, the Group invests substantially in R&D. During the year under review, the Group was granted 238 patents and authored 126 software copyrights, boosting the total number of valid patents and software copyrights to 1,494 and 1,351, respectively.

Looking forward, the total investment by power grid companies will amount to approximately RMB3 trillion, guided by China's 14th Five-Year Plan. Of this, State Grid plans to invest around RMB2.23 trillion to promote the transformation and upgrading of power grids, while Southern Grid plans to invest approximately RMB670 billion to accelerate the construction of digital power grids and modernize power grids, and promote the construction of new power systems based on new energy. The Group also actively responded to the promotion of the IoE through source-grid-load-storage integration and multi-energy complementation to explore demand-side response resources applied to different "New Energy+" scenarios.

Mr. Ji Wei, Chairman of the Group, said, "With the Dual Carbon goals and China's 14th Five-Year Plan leading the industry to transform to intellectualization and greening from different levels, the Group will remain committed to R&D in energy measurement equipment and energy-saving solutions to expand its range of core products, help achieve the industry development goal of domestic substitution and provide domestic and oversea customers with better products and services. At the same time, the Group will develop new markets relying on targeted expansion strategies and proactively seek effective cooperation opportunities to achieve sustainable development in all areas."

-Ends-

About Wasion Holdings Limited

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

Smart Distribution Devices (SDD), and Energy Efficiency Solutions (EES). The Group's current clients include power grid companies, water, gas and heat providers, and other major industrial and commercial users. Its products have major market share in the PRC and are exported worldwide including Asia, Africa, Europe and the United States. Its research centre and laboratory have been certified as national grade and international standards. Wasion's research and development capabilities in smart metering and energy-saving solutions are renowned within the industry.

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

Page 3 of 3