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......... that may be relevant in connection with CyanConnodes recent Licensing Agreement, with Beijing Instruments and Beijing Instruments connection to the State Grid Corporation of China. As mentioned in the RNS Licensing Agreement, dated 7th December, 2018.

From the RNS:-

" Beijing Instruments is a well-established meter manufacturer and since 1998, it has been a main supplier to the State Grid Corporation of China."

https://www.smart-energy.com/news/the-state-grid-corporation-of-china-to-dominate-the-deployment-of-smart-meters-ahead-of-other-utilities/

Interesting times, I feel.

LTI.

........ project announcements.

https://www.smart-energy.com/industry-sectors/smart-meters/tracker-reveals-new-ami-projects-announcements/

LTI.

Hello Bull.Bear,

Thank you for the information on the unique identifier. It is appreciated.

And I am sure, that working with the Chinese over the last few years, in one form or another and working in other global regions, with different clients, that the Company have taken adequate precautions to protect their products, in the global market place.

At least we hope so. But as John Cronin mentioned on Thursday, it is impossible to say that at some time your system will not be corrupted.

You get over the problem, when the problem occurs, while protecting your product, with the defences that are available.

Thanks again.

LTI.

Good evening Bull.Bear.

You may be correct. But I cannot comment on the " ...... I don't believe the IP is in the module or the unique identifier ..... , " as I have not heard the term " ..... unique identifier ..... " before today.

But as I understand it, the solutions, for want of a better term, are monitored by the Company through there IP, which has a number/identification code provided, per module/per batch, so that the Company can monitor production quantities and in turn, revenues.

I would think they have been using the same system, in connection with their Equipment Manufacturers/Meter Manufacturers for some time now, to monitor what was being manufactured, where it is being installed and who needs to pay any recurring/ongoing license fees.

Which brings us back to the Novotel Presentation, page 11, which I believe I mentioned on Friday, which sets out the " Current revenue model " and the " New revenue model, in addition to the above."

" Current revenue model " includes:-

- Perpetual licences - Module, Gateway, Software. One off payment plus 22% annual SMC.

- Term licences - Module, Gateway, Software over X years, recurring revenue per year.

- Support and maintenance contract - per device once installed, recurring revenue.

- NRE ( non-recurring engineering ) - rate card, per engineering day.

" New revenue model, in addition to the above " will include:-

- Royalty licensing - manufacture of hardware via reference design.

So there is plenty of choice the meter manufacturer/utility, to choose from, depending on which Business Model, they wish to follow.

LTI.

....... I also understand there is, as you say, a " ...... unique identifier ...... " connected with the CyanConnode solutions. I believe it to be the Intellectual Property ( IP.) I understand this is a tracking mechanism, whereby each license, or batch of licenses, is issued with a specific number, or batch of numbers/identification codes, so that they can be tracked by the Company on manufacture, when the code is activated.

This is how the Company controls/tracks the useage/implementation/production of the number of licenses for the solutions, that the Company sells.

LTI.

Hello Vas,

Apparently, there are different types on licensing revenue models. 3 types are mentioned on page 11 of the presentation document I posted earlier.

- Perpetual licenses - Module, Gateway, Software. One of payment plus 22% annual SMC.

- Term license - Module, Gateway, Software over X years, recurring revenue per year.

- Royalty license - manufacture of hardware via reference design.

Each, it would seem, with there own revenue time scale and contribution value, to be negotiated per client.

LTI.

..... document has been released on the CyanConnode website.

https://cyanconnode.com/wp-content/uploads/2019/02/CyanConnode-investor-presentation-Jan-2019-FINAL-full-length.pdf

LTI.

Hello Overfiend,

I understood from your 10:36 post, when you confirmed " ...... that I've asked the company a direct question about the number of meters under the agreement, or any restrictions regarding quantity of meters to be produced for those 4m USD ..... " that you had already asked the company a specific question.

But does it not clarify your particular point, except for the number of modules/meters involved, in the RNS, released on 7th December, 2018.

" This is CyanConnodes first Licensing Agreement and the terms of the contract, grant Beijing Instruments the right to use CyanConnode reference designs, to manufacture its AMI RF modules and gateways. Beijing Instruments will pay a licence fee each time a RF module/or gateway unit is manufactured, for a total number of modules and gateways, over a two year time frame, totaling USD 4m."

So the value of the contract has been disclosed. The total number of modules and gateways has been agreed between the two companies - but not disclosed. The 2 year time-frame has been disclosed and agreed. The point of payment has been agreed, on manufacture, not on installation in the meter or delivery to site.

If Beijing Instruments do not meet the agreed number of units and I cannot think why not, as they have agreed to pay 4m USD.

Should Beijing Instruments, want to manufacture more modules than what has already been agreed within the 2 year time-frame, then I would suggest it is time for a contract extension or another contract.

That is the way I read that particular passage within the RNS.

I hope this helps.

LTI.

Good morning Overfiend,

I believe that CyanConnode want to give us, as shareholders, as much information as they can, but do not want to give too much information out, to CyanConnnodes competitors. That is why all the information is not released, on any one contract.

I have said this before, so not something I picked up on, yesterday.

Good luck,

LTI.

I agree tonyj, a very positive meeting.

LTI.

.... January 2019 edition, has been published.

http://www.indiasmartgrid.org/newsletter.php

LTI.

....... in 50 emerging markets - from the Northeast Group.

https://www.smart-energy.com/industry-sectors/smart-meters/new-report-explores-ami-rollout-50-emerging-markets/

For those that may be interested, some additional information on the Northeast Group client list:-

http://www.northeast-group.com/

LTI.

of smart prepaid meters from April 2019.

I believe it was you Vas, who posted a report over Christmas, 2018, that indicated that the time-scale for prepaid and smart meters had been moved to 2022. I have provided your link below.

https://www.financialexpress.com/economy/smart-power-meters-government-defers-deadline-to-fy22-end/1424125/

Also from December 2018, is a report that suggests that a smart prepaid electricity meter program, may be about to progress, from April 2019, as the Indian government " ....... looks to complete the transition over the next three years."

https://economictimes.indiatimes.com/industry/energy/power/power-ministry-mandates-use-of-smart-prepaid-meters-april-2019-onwards/articleshow/67233334.cms

Interesting times.

Good luck,

LTI.

............ at least for India, are covered Chem, in the recent Trading Update.

From the Trading Update:-

" In Q4, CyanConnodes local manufacturing partner increased module production, to 32,000 units per month.

" Furthermore, Indian Utilities continue to issue large " Requests for Proposals " and on 24 December, 2018. the Indian Government announced that it had mandated the use of smart prepaid electric meters. Consequently, CyanConnode has taken steps to ensure module production, by its local manufacturing partner, can be scaled up, to meet accelerating demand."

This may be part of what you are looking for.

Good luck,

LTI.

Good evening Chem,

Where about's in London is it? I do not think I am able to attend, but just generally interested.

Good luck,

LTI.

.......... UK Investor Magazine report.

https://ukinvestormagazine.co.uk/cyanconnode-revenue-jumps-significantly-on-nordic-and-indian-growth/

LTI.

Good morning Vas,

Encouraging SMETS2 confirmation of installation figures. It is appreciated.

Good luck,

LTI.

......... project, was an initiative I posted about last year.

https://www.smart-energy.com/industry-sectors/energy-grid-management/saudi-arabia-king-unveils-multi-billion-innovative-energy-park/

A couple of pieces of information contained in the report, I posted previously:-

" The city will be developed in partnership with global investment and technology firms."

" Phase one of the project, will result in USD1.6 billion in investments and will be completed by 2021."

On the recent " Events Page," it would seem that CyanConnode are attending an International Exhibition, in Riyadh, Saudi Arabia, as part of the Department of International Trades, British Pavilion, from 13th to 15th February, 2019.

https://cyanconnode.com/events/
https://saudiiot.com/

Interesting developments.

LTI.

........ Media Presentation, is on the website.

https://cyanconnode.com/presentations-and-videos/

LTI.

Good morning Overfiend,

From the RNS:-

" Furthermore, Indian Utilities continue to issue " Requests for Proposals " and on 24 December, 2018, the Indian Government announced that it had mandated the use smart prepaid electricity meters. Consequently, CyanConnode has taken steps to ensure module production, by its local manufacturing partner, can be scaled-up, to meet accelerating demand.

Although CyanConnode have a global interest in the smart meter/smart grid expansion, the Indian market will prove to be the most mature, of its expected growth markets. Despite the initially slow growth, over recent years.

Well done to all concerned.

LTI.