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Good morning Vas,

Thank you for the report. Very interesting.

And it is good to know that the inter-government partnership, between India and the UK, is getting recognition, for all the Companies mentioned. Especially one in particular that is being recognized for their smart metering technology and business potential, in India.

The " ....... providing millions of pounds of Foreign Direct Investment, into the country ....... " could be by CyanConnode linking/partnering with non Indian specific registered companies, to enter the India smart meter/smart grid/IoT markets.

The recent Licensing Agreement with Beijing Jingibeifang, may be potentially, one such agreement.

There may also be others, yet to be confirmed.

Thanks again for the report, Vas.

Good luck,

LTI.

Good morning Herbie,

Thank you for posting the information on John Cronin, in India. Interesting company John keeps.

Good luck.

LTI.

Good morning CB,

We know the value of the contract is USD4m and we know the 2 year time frame. What we do not know is the value attributed to each licence. So we do not know how long it will take to reach USD4m worth of licenses, but Beijing Instruments, have 2 years to do it.

LTI.

Good morning tonyj/CB,

From the Licensing RNS:-

" 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."

It does not sound like " .... unlimited production ...... " to me and it does not state that it is China specific.

LTI.

Hello Chem,

Thank you for the presentations information, concerning India. It is appreciated.

Concerning the presentation and the licensing agreement, as you have confirmed that John will definitely be there, it will not do any harm having that agreement already confirmed, for any interested parties that John, Anil and CyanConnode in general, may wish to negotiate with or at least to talk to them about.

And the same to you and yours, for the Festive Season and New Year, if we do not get chance to chat again, before then.

Good luck,

LTI.

Good morning Chem,

I agree with you, that it could be " ...... another route into India." But I believe a Licence Agreement, will only be issued to companies of a required quality of manufacture, that have the infrastructure and quality control to, manufacture, deliver, install and service, a meter with the CyanConnode solution.

There is a lot of responsibility on a Company that takes on any type of Licence Agreement, to manufacture another Company's product. As well as the responsibility of the host company to vet suitable manufacturers.

But having a Licence Agreement, with a Chinese meter manufacturer, will help CyanConnode in China initially, India probably and in Beijing Jingyibeifang's global market's, possibly.

Only time will tell.

It is good to hear from you again, Chem. I trust you are keeping well.

Good luck,

LTI.

......... are other countries, with companies that were visually referred too, in Anil's presentation video.

The YTL Corporation ( Malaysia.) Mitsubishi Electric ( Japan.) Bentec ( India.)

https://en.wikipedia.org/wiki/YTL_Corporation
https://www.mitsubishielectric.com/en/index.html
http://bentecindia.com/

Good luck,

LTI.

Sorry,

Ref. Wasion:- Please type in Wasion Group - China - and click on - About us.

LTI.

Good morning Vas and all,

If you go back 12 months, to Anil's Presentation video, from 23rd November, 2017, there are some slides that accompany that presentation, that reveal some new Companies that seem to be aligned to CyanConnode, under the heading of " Supporting Multiple Meters."

There are three Chinese companies within that group. I have mentioned them before in connection with Anil's video and one of them, I have mentioned separately. But considering the present climate, it may be worth mentioning them again. They are Wasion, is one I have mentioned before, Star Instrument and Clou.

http://www.wasion.com/EN/j.htm
https://en.szstar.com/
https://clouglobal.com/

So CyanConnode, it would seem, have been looking to develop Chinese Partners for some time.

Good luck,

LTI.

........ are participating in the Technology and Future Cities Mission, in New Delhi and Mumbai, between 10th and 14th December, 2018.

LTI.

Ooooops, sorry,

Please type-in:-

State owned Chinese power utilities and click-on:- Utility Companies in China / Industry News.

LTI.

You are welcome Londoner,

I remember 2 or 3 years ago, John Cronin did a presentation, in which he confirmed that there were " ... two state -owned electric utilities in China and we ( Cyan(Connode) ) are talking to them both."

They are the State Grid Corporation of China and China Southern Power Grid Company.

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

So maybe CyanConnode are able now, to start discussions with potential clients, a little further up the food chain, than when Cyan(Connode) first started out, in India.

https://infoseekchina.com/industries/utilities.html

So it looks like there has been some progress been made in China, over the last few years.

https://www.smart-energy.com/industry-sectors/smart-energy/china-smart-electric-meter-market/

As far as the deal is concerned, hopefully our competitors are as confused as we seem to be. But I do think there is probably more to this deal/arrangement, than at the moment can be made public.

Good luck,

LTI.

Good evening Londoner,

Sorry for the delay.

We do not know the finite details of the overall contract. But we have been given, I would suggest, certain details within the Licensing Agreement RNS. I would think for financial, commercial and confidential reasons, there are details contained in the contract, that possibly cannot/should not, be made public.

John Cronin mentions towards the bottom of page 1, of the RNS:- " CyanConnode can provide licensing packages, that support partners needs, as well as facilitating the localised manufacture of components."

Different clients/partners, will have different " licensing packages," that may be structured differently and have different values, depending on a particular client/partners individual requirements, needs and timescales.

We have been told that the Licensing Agreement is for USD4m, over a 2 year period. Along with some other details, within the RNS. Whether there will be additions to that figure, I do not know. But I do not think it is an open-ended agreement. Which I think is what you meant by " To be specific, no matter how much our Chinese partners sell, cyan will only get 4M?"

I hope this is of some help, but realise that it probably does not answer all your questions. Or mine.

Good luck.

LTI.

Good morning Vas,

Thank you for the report. A very interesting insight from Cision. One observation about " The explosion in data traffic has given rise to an alternative communications technology, known as the narrowband RF mesh .......... " which I seem to remember John Cronin touched on the point, at one of his presentations in India, about the volume of data and how often it is provided.

CyanConnode can offer volumes of data at different time time periods. 15/30/60 minute intervals, or along those lines, was I seem to recall the time schedules he gave, as a potential for delivering data traffic. But if they have the data, at 15 minute intervals, which will cost more, will they/have they got the capacity or infrastructure, to handle that amount of data?

An interesting report, overall. Thank you.

Good luck,

LTI.

Good morning Londoner,

It is good to hear from you again.

You are correct. CyanConnode will receive USD4m from this deal. From what we have been told, according to the RNS, " ..........over a two year time frame ...... "

I also notice, from the RNS, that " Beijing Instruments will pay a licence fee each time a RF module/or gateway unit is manufactured ............. " So the licence fee is due when the module is manufactured, not when it is installed in the meter or delivered/installed on site. So it seems the reference point for payment, is the date of manufacture.

The RNS also mentions about " ...... for a total number of modules and gateways ......... " But the RNS does not say, from what I can see, how many licences are involved. So we do not know, how much each licence is valued at.

But it will be interesting to see, how long it takes, for Beijing Instrument to use up their quota, of licences.

I hope this helps.

Good luck.

LTI.

....... Beijing Instruments, reveals that it " .......... has been a main supplier to the State Grid Power Corporation of Corporation of China, since 1998 and has won contracts in Beijing, Henan Province, Hebei Province, Xinjiang Province, Gensu Province and Hubei Province, as well as overseas contracts in Nepal, Bangladesh, India, Indonesia and Sri Lanka."

Nepal smart meter program.

https://www.smart-energy.com/news/nepal-utility-smart-meters/
https://www.nepalitelecom.com/2018/09/nea-smart-meters-electricity-kathmandu.html

The NEA ( Nepal Electricity Authority ) and Nepali Telecom, seem to have combined RF and GSM/GPRS.

From the Nepali Telecom report:

" The smart meters enables the real-time data monitoring of the energy usage at each home/business. They can even connect or disconnect the electricity supply remotely. The smart meters are also called TOD meters ( Time of Day.) Which allows charging the electricity rate differently at the different time. They can perform meter readings remotely, without the need to send NEA employees to customers home. The data is collected to the central server of the system, through GSM/GPRS connectivity. The smart meters have an RF module to send the data to the server, at regular intervals."

LTI.

....... released today:-

" CyanConnode and Beijing Instruments are also pleased to announce that they have agreed to collaborate on sales opportunities outside of China."

Interesting.

LTI.

Good morning Overfiend/Kabaa,

There is also a reference in the FinnCap Company Note, also dated 19th October, 2018, that can be found on CyanConnode's website:-

Cash requirements.

( About the Placing.)

" That need has become more pressing: the Company reveals, that with ongoing operational and development costs, cash has fallen to GBP1.3m in Q3, from the GBP2.8 seen at the end of June. That will now be augmented by up to GBP5.6m , which management feel should provide the necessary working capital, to reach cashflow breakeven, under the current business plan."

Also taking into account that the " ....... management expects the monthly cash cost base should fall to GBP560k from January."

LTI.

Good morning CB,

I would think it means, that although this licencing deal was anticipated, it was not known exactly when it would arrive. As we did not get an early " Red Dot," I am thinking that it probably arrived late last night or early this morning. But as the Company did not want to risk the news leaking out, they released it at a later time. 09:07.

I would imagine that CyanConnode are looking for clarification from the auditors, on whether the revenue/some revenue, from this order, can be recognized before the end of the year.

LTI.

...Chinese Partner.

That is the first one, in the locker.

Good luck.

LTI.