CyanConnode Holdings PLC First Licensing Agreement with Chinese Partner (8028J)
December 07 2018 - 4:07AM
UK Regulatory
TIDMCYAN
RNS Number : 8028J
CyanConnode Holdings PLC
07 December 2018
CyanConnode Holdings plc
("CyanConnode" or the "Company")
CyanConnode signs its first Licensing Agreement with Chinese
Partner
CyanConnode, a world leader in narrowband radio frequency ("RF")
Mesh Networks, is pleased to announce that it has signed a USD 4M
Licensing Agreement with Beijing Jingybeifang Instrument Co., Ltd
("Beijing Instruments"). The Licensing Agreement provides Beijing
Instruments with the right to use CyanConnode's reference designs
to manufacture Advanced Metering Infrastructure ("AMI") including
RF mesh network technologies, which Beijing Instruments hopes to
supply to its customers.
Beijing Instruments is a well-established meter manufacturer and
since 1998, it has been a main supplier to the State Grid
Corporation of China. CyanConnode and Beijing Instruments are also
pleased to announce that they have agreed to collaborate on sales
opportunities outside of China.
According to a report from analyst Navigant Research, China's
shipment of smart electric meters hit 130 million units in 2016.
They have also calculated that the compound annual growth rate
("CAGR") of shipments for the period 2017 to 2021, will be between
3% and 5%(1) .
This is CyanConnode's first Licensing Agreement and the terms of
the contract grant Beijing Instruments the right to use
CyanConnode's reference designs to manufacture its AMI RF modules
and gateways. Beijing Instruments will pay a license fee each time
a RF module and/or gateway unit is manufactured, for a total number
of modules and gateways over a two year time frame totalling USD
4m.
John Cronin, CyanConnode Executive Chairman, commented: "We are
very pleased to announce the Company's first Licensing Agreement
with a new Chinese Partner, Beijing Instruments. CyanConnode can
provide licensing packages that support partners' needs as well as
facilitating the localised manufacture of components. As there will
be little or no associated development or manufacturing costs, the
impact on our resources will be minimal. We look forward to a long
and successful collaborative partnership with Beijing
Instruments."
Mr Li Yi, Beijing Instruments General Manager, commented: "The
CyanConnode licensing package enables Beijing Instruments to offer
its customers next generation smart meters based on IPv6 standard
RF mesh network technologies that are self-forming and
self-healing. Beijing Instruments, a State-owned company, is well
positioned in the Chinese smart metering market. It is also looking
forward to working with CyanConnode in international markets."
The smart metering market is rapidly evolving and the size of
implementations increasing. CyanConnode offers licensing packages
that can deliver market-leading technology to support partners'
business models. These licensing packages can provide partners with
product that not only outperforms against large and well-known
brands, it is also highly reliable with a competitive total cost of
ownership.
This signed Licensing Agreement is the high margin license sale
opportunity expected in late in 2018, referred to in the Company's
previous announcement of 19 October 2018; the Company is currently
taking advice from its auditors regarding revenue recognition in
relation to this signed Licensing Agreement.
(1)
https://www.smart-energy.com/industry-sectors/smart-energy/china-smart-electric-meter-market/
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014.
Enquiries:
CyanConnode Holdings plc Tel: +44 (0) 1223 225
060
John Cronin, Executive Chairman www.cyanconnode.com
FinnCap Ltd (Nomad and Broker) Tel: +44 (0) 20 7220
Ed Frisby / Giles Rolls 0500
Arden Partners plc (Joint Broker) Tel: +44 (0) 20 7614
Paul Shackleton / Dan Gee-Summons (Corporate 5900
Finance)
Walbrook PR (Financial PR) Tel: +44(0) 20 7933 8780
Paul Cornelius / Nick Rome cyanconnode@walbrookpr.com
About CyanConnode
CyanConnode is a world leader in narrowband radio frequency (RF)
Mesh Networks that facilitate machine to machine (M2M)
communication. CyanConnode's innovative technology uses the
industrial, scientific, and medical radio band, (ISM), which is
optimised to give exceptional performance and competitive total
cost of ownership. Through global partnerships, CyanConnode
provides customers with a solution for the rapid deployment of
local or countrywide ISM RF Mesh Networks that provide reliable and
secure M2M communication.
For more information, please visit www.cyanconnode.com
About Beijing Jingyibeifang Instrument Co., Ltd.
Beijing Jingyibeifang Instrument Co., Ltd. ("Beijing
Instruments") was established in 1977 and was one of the first
manufactures of watt-hour meters to supply state-owned
enterprises.
Beijing Instruments is located in the Daxing Industrial
Development Area, where it has a 30,000 square meter facility with
around 400 employees; it also has a joint venture in
Bangladesh.
Beijing Instruments has been a main supplier to the State Grid
Corporation of China since 1998 and has won contracts in Beijing,
Henan Province, Hebei Province, Xinjiang Province, Gansu Province
and Hubei Province, as well as overseas contracts in Nepal,
Bangladesh, India, Indonesia and Sri Lanka.
The company pays special attention to Product Quality Management
(PQM) and has achieved: ISO9001 Quality Management System
Certificate, ISO14001 Environmental Management System Certificate,
OHSA18001 OHS Management System Certification, as well as being
awarded the "Beijing Model Collective" honorary title by the
Beijing municipal government.
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END
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