X2M growth momentum continues with another significant contract win in China.
Australian Internet of Things (IoT) technology company X2M Connect Limited has announced that LianQing in China has placed a contract with X2M for water quality sensors and related accessories.
With this contract, the revenues expected to be earned from China during FY22 now exceed $1.3 million compared to FY21 full year China revenues of $1.1 million.
This is the fourth contract received from LianQing, following similar contracts secured in late 2020 and earlier in 2021. The contract value is equivalent to approximately $0.7 million for water quality sensor hardware and related accessories.
X2M’s strategy for China is to establish itself in the market initially through the sale of hardware with a goal of following these sales with connection of devices to the X2M IoT platform.
- Revenue is expected to be recognised within FY22;
- X2M’s FY22 revenue from China substantially exceeds its FY21 revenue; and
- X2M’s outstanding previously contracted revenues and business won in the FY22 year now stand at $8.5 million.
X2M expects that the fully documented transaction will be completed within the next week.
According to Mohan Jesudason, X2M CEO, this is another significant step for the company's China business.
"Securing a number of these repeat contracts from a mainstream customer will enhance our profile in China and augments the very good progress in Korea this year."
"This contract plus the Q1 and other contracted revenues for X2M as a whole, now total $8.5 million, compared to a full year FY21 revenue of $5.7 million," Jesudason said.