Join our daily newsletter At The Bell to receive exclusive market insights
- X2M Connect (X2M) wins significant contracts in Baoding City in China’s Hebei province and Incheon City in South Korea
- The total value of the tender wins is approximately $2 million and brings the number of enterprise and government customers to 46
- The company confirms the contracts have well-positioned it for the new financial year
- Shares in X2M are up 5.56 per cent, trading at 9.5 cents at market close
Australian Internet of Things (IoT) technology company X2M Connect (X2M) has won significant contracts in Baoding City in China’s Hebei province and Incheon City in South Korea.
The total value of the tender wins is approximately $2 million and brings the number of enterprise and government customers to 46.
The new China contract, valued around $1.34 million, will see the deployment of approximately 22,000 water meters with valve control into the Qingyuan district of Baoding City.
This tender is part of a river water replacement project in the district as part of a bigger significant effort in China to improve water distribution and management from the source to the consumer.
The contract also broadens the company’s China customer base, representing another step towards the delivery of X2M’s clearly enunciated China market growth strategy.
This strategy involves an initial establishment of a business base through the sale of hardware and following up on these sales with connection of devices to the X2M IoT platform.
CEO Mohan Jesudason said the Chinese tender builds on the company’s success to date in the South Korea, Taiwan and Australia markets.
“We are thrilled with the growth that continues to be recorded by our Greater China business and we expect a portion of the revenue from this deal to add to our current year to date China revenues of $3.3 million, which is more than three times what we delivered in FY21,” he elaborated.
On a smaller scale, the new $660,000 million South Korean contract will deliver to 7777 households which demonstrates the continued penetration into existing customers following initial orders, the company said.
Delivery is anticipated to be completed in November 2022 and will make Incheon City the municipality with the second largest number of water metres in South Korea with more than 400,000.
The company confirmed the contracts have well-positioned it for the new financial year.
Shares in X2M were up 5.56 per cent, trading at 9.5 cents at market close.
