X2M Connect Limited (ASX:X2M), an Internet of Things (IoT) technology company, is set to expand its presence in Asia and South Korea. On a significant note, the company secured a tender in China and South Korea.
The upbeat market update triggered a surge in X2M stock price today. At the time of writing (MON JUNE 20 2:18 PM AEST), shares of X2M were trading at AU$0.095, up 5.555%.
Customer building in China
The new contract in China is worth 1.34 million Australian dollars. Additionally, the agreement expands the customer base in China, implying a further step towards the market growth strategy explicitly articulated by X2M in China. The company initially established a business base in China by selling hardware and then connecting devices to the X2M platform.
Under the contract, X2M will deploy approximately 22,000 water meters with control valve in Qingyuan District of Baoding City, which has a population of over 620,000. It is part of a river water replacement project in the district. Significant efforts have been made in China to improve the distribution and management of water from source to consumers.
Persistent penetration into South Korea
In South Korea, the tender is for 0.66 million Australian dollars, under which X2M will serve 7,777 households in the city of Incheon, the municipality with the second largest number of electricity meters. water in South Korea. Securing the tender follows an initial contract in Incheon for nearly 600 homes, and delivery will be completed by November 2022. This reflects X2M’s continued penetration among existing customers in South Korea.
X2M CEO Mohan Jesudason commented:
“These new tenders expand our customer base in China and build on our success to date in South Korea, Taiwan and Australian markets. We are delighted with the growth that continues to be seen by our business in Greater China and expect a portion of the revenue from this deal to add to our China revenue of $3.3 million since the beginning of the current year, more than three times what we have delivered. in Exercise 21.
He added that FY22 was a very successful year for X2M in terms of key metrics including revenue growth, customer acquisition and device deployments. These put the company in a good position for FY2023 with substantial contracts underway for delivery in FY23.
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