Aussie IoT company wins fourth smart sensor contract in China

X2M Connect Limited announced that LianQing in China has placed a contract with X2M for water quality sensors and related accessories during the December 2021 holiday period.

The Australian Internet of Things (IoT) technology company expected the fully documented transaction to be completed by January 2022.

This is the fourth contract received from LianQing. Its value is equivalent to approximately $0.7 million for water quality sensor hardware and related accessories, following similar contracts secured in late 2020 and earlier in 2021.

With this contract, the revenues expected to be earned from China during FY22 now exceed $1.3 million compared with FY21 full year China revenues of $1.1 million.

According to data from Technavio research, the smart sensor market will see over 43 per cent of growth originating from APAC during the forecast period from 2022 to 2026, with China and Japan being the key markets. The market growth rate in APAC, however, will be slower than the growth of the market in other regions.

Continued progression of X2M's growth 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.

According to Mohan Jesudason, X2M CEO, this signifies another significant step for the local IoT'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 A$8.5 million compared to a full year FY21 revenue of A$5.7 million," Jesudason said.