REMINDER: Our user survey closes on Friday, please submit your responses here.
Looks like CYAN are reading this board....John Cronin on recent announcement.
https://www.brrmedia.co.uk/broadcasts-embed/5df8da611727256b168b6bdc/cyanconnode-new-order-for-smart-metering-project-in-india?player_only=true
Many thanks Longterminvestor. Possibly my use of language was not entirely clear and my apologies. I used "JV vehicle" as a shorthand business term for a Joint Venture vehicle - a legal entity set up by one or more partners jointly for a specific business purpose.
I was not referring to vehicle in the conventional sense as being a mode of transport. But serendipity has led us to electric vehicle charging points in Punjab with EESL involvement...who would have anticipated that ?
Maybe the business tentacles of Intellismart are as fast growing, and as entrenched as Japanese knotweed !! (but in a positive way).
The roundtable discussion hosted by Intellismart JV appears to be an organised effort to bring coherence to the logisitical challenges of a 250m smart meter rollout. I imagine invites would have gone out to all the players in the industry, so I wouldn't read too much into the possible commercial significance at this stage.
However, I detect an important shift in business strategy and thinking for EESL, which as far as we know, has been an underperforming Indian government controlled entity. My take on the development of a JV vehicle is a tacit admission by the Govt that the current model and success of EESL has not delivered, but allowing the development of a JV vehicle gives them a politically acceptable, face saving solution. Once Intellismart picks up, EESL could be quietly wound down and disappear from public view.
This JV with NIIF with new branding as Intellismart could be the start of the development of an "arms length" commercial body, which may be able to operate and build business relatively free of government imposed constraints. It could become a profit centre in itself, whereas the old EESL may not have been given the political mandate to do so.
Also Intellismart brings the financial firepower of a National Infrastructure (NIIF) fund to quicken the pace, develop economies of scale and a more rapid rollout. I am sure that there will be "soft loans" and incentives available to partners/players to increase smart meter manufacture, software and hardware capacity etc.
If Intellismart can crack the Indian smart meter rollout and deliver even a smidgen of the projected savings, then it could potentially sell its project expertise to other parts of the developing world. PM Modi has talked about making India a $5 Trillion economy in the next several years (I think), so this may be a tiny part of a grand jigsaw.
A lot of speculation and horizon gazing on my part...but to be absolutely clear, we are a long way off any commercial benefit from the same, if at all. But good to know that we are at the forum today.
As per September RNS we should have some contract announcements by tomorrow.
This does not look likely - so whatever contract announcement(s) were deemed to be "in the bag" and ready for RNSing has have been delayed. The festival of lights/ Diwali holiday break in India is unlikely to have helped matters.
So my guess is that tomorrow, we may get a holding announcement / vague explanation as to the delay just to try and mitigate the expectations shock. I do hope the BoD see how detrimental these rowing back of expectations can be. If we don't get any RNS, then it would reflect very badly and the SP will take a further nosedive.
The least the Directors can do is to buy in volume from the market to bolster investor confidence. I would think that any individual Director buys below £15k would be tokenistic and pretty meaningless in the context of current market sentiment and credibility for the company Of course, they could wheel out "in a closed period" get out card...
Hi Vascular, thank you for sharing the JC interview link.
The content/information seems to date back to 2016 or thereabouts in my view...so not sure how Shares have a more recent date on it (as per your post) ?
Hello LTI,
Wonder if the EESL 5 million smart meter tender which you have highlighted, is a re- tender of the previous EESL that went belly up ? There was some discussion on this BB, as to how this would be politically managed without senior bureaucrats and Ministers losing face ?
My take is that this is a re-run of the failed EESL tender. If there is another Investor meeting, people can ask this question of the CYAN team.
Hi Vascular,
Based on published information below:
https://www.nsgm.gov.in/sites/default/files/SG-Projects-Status-September-2019.pdf
Could it be Jharkhand/Ranchi - a tender for about 360k meters - bid opened 05 July 2019 ?
Or Kochi , Kerala for 90k meters - sanction letter issued 28 Sep 2019
The question I pose is whether smart metering in Iran will be a priority or a must do, when there are many,challenges to overcome as a country ? They will have to use their dwindling foreign reserves very carefully and China could offer them various goods denominated in Yuan to bypass US dollar based banking completely.
I am not arguing that Chinese companies could offer the politically safest route to do business with Iran.
The news item is from 07 Jan 2012 unfortunately and the ground has shifted substantially in terms of Iranian current sanctions etc. Both Micromodje and Hexing find a mention, but wonder it smart metering will still be a pressing need for Iran in the midst of much more existential challenges for the Govt and the population ?
China of course won't take any notice of US sanctions or be bullied into submission by Trump - they will do precisely what is in their national interests and longer term. I recall from a fairly recent RNS that from CYAN point of view, Iran is not being factored into any revenue or project considerations at this time.
Apologies - Stand corrected re earlier post - "not spot" revenues
£3.60 activation one off fee
62.4p recurrent per meter / per year
Posted by multibagger on another thread - thanks:
multibagger17 May '19 - 09:40 - 553 of 758 Edit
0 1 0
I attended - If I may tightfist, 500k licences were pre-sold by Connode (quoted by Bjorn) - not 200k.
After a bit of discussion re "not spots", the figure quoted by Heather Pea**** was 62.4p per meter/year, after an one off £3.60 activation fee (quoted by John Cronin)
As of 10 May 2019 and SmartDCC website installed smart meters: 905,891 (from memory)
Good meeting !
My understanding is that 500k "not spot" solutions were pre-sold by Bjorn Lindblom during the Connode era and prior to us taking them over. The revenue from these have been recognised in prior years.
This is not the same as 500k "not spot" solution being activated - I am very clear about that.
For every activation of a "not spot" we get something like £3.60 as an "one off" activation fee and then something like 12.63p per year thereafter (recall reading this on the other thread around mid May 2019 time). There are financial safeguards against a random activation of installed smart meters to our solution - example a cyberattack that freezes the mobile network and in which case, one would expect that all our "not spots" installed solutions will be activated - but this is not the case.
So as stated ad nauseum, the revenues for CYAN from UK Smets 2 "not spots" is not likely to be material anytime soon. Probably 2020 at the earliest.
Nevertheless, good to see the SP creeping upwards.
You are spot on tonys.
No excuses as you say.
A perfect opportunity for "the business and everything worth knowing, know it alls" who post their questions and observations on this board day and day out, to actually pick up the phone and publicly demonstrate their superiority of their intellect and prove once and for all, why 99.99% investors here are perfect idiots and the senior management of CYAN are 100% incompetent.
But won't come as a surprise that they are too busy, can't be bothered, missed the 22nd July for submitting questions and further such excuses ad nauseum. It will be worth noting of the 7-8 of their ilk, how many actually make their appearance. They all can't be busy at the same time ? Nevertheless, they will be back in the morning and through the day to continue to post their drivel.
Awaiting with bated breath, the so far hidden / anonymous gems of British Investing to reveal themselves. They have been notified on the 19th July with a further reminder today - so no excuses that they were not informed or forgot either.
It is a free call - so they should be able to afford it !
Good morning Vascular
I think CYAN could be associated with this project in Tamil Nadu (hopefully)...the RF mesh solution is mentioned on the CSCL link that you have provided. On the other thread, there is a slide pack from the Investor Evening with mention of various tenders Cyan have bid for in India.
So on balance, I think we may have participated in this tender and should know the outcome in due course. Fingers crossed.
Tonyj,
Interestingly I recently read about Nikola Tesla "The Man who invented the 20th Century" by Robert Lomas - it appears that he was a purist/pure scientist and could not understand the shenanigans of the commercial world. I get the impression he was naïve and taken advantage of - not once, but several times by various backers.
A true visionary and probably far superior to Edison in scientific skill and intellect. Not given enough credit in scientific history or recognition.
Good evening LTI,
The market for CYAN and volumes have been quite low for a while. So L&G or anyone else would have struggled to offload without unduly affecting the share price. So drip feeding the market with multiple trades would have been the modus operandi. It is unlikely that they could have got away with 100k+ sells without unduly depressing the share price. Nevertheless, the duration of time L&G would have had to drip feed the market coupled with the news vacuum from Indian election saga could have led to the SP getting to where we were a couple of days ago.
Hopefully behind us now, but who knows for sure ?
Good Morning LongtermInvestor and all !
Good to see some Blue for a change. May be L&G have completed their offloading ? Regaining lost ground at the moment, but welcome nevertheless.
Good morning tonyj,
We are already working with local / in country partners as in the Phillipines, UAE, Thailand etc - who bid for contracts and then are involved in the implementation of the smart meters, whilst we will still hold the assymmetric key which will allow smart meters in those countries to connect to their own grids.
So effectively Cyan will know every time a smart meter is installed - without Cambridge HQ authorising the smart meter, it cannot connect up to the grid.The BI model is also based on this....but so far no international partner led contracts with this revenue stream have come to fruition. But confident they will in due course.
Good morning Vas,
I'm not expert in this issue either. But
if all Cyanconnode Pvt Ltd revenues etc are being reported in Cyan annual reports in the UK
India expenses are also being met from the overall cash pool
Indian accounts not being reported separately
Contracts won by India are being RNSed in the UK under Cyan
then it should logically follow that Cyanconnode India is a full and integral part of Cyanconnode, UK. I agree that Indian operations will be by far the crown jewels in the Cyan stable in my view.
So when Cyan is sold off (as it will be pretty certain) at a suitable price, then we should all reap the benefit of the success of the Indian operations.