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Aussie Small Cap X2M Scores South Korea Tender Wins

X2M Scores South Korea Tender Wins

Fresh from its recent successful ASX listing, the Australian Internet of Things (IOT) company X2M Connect Limited (ASX:X2M) has won two significant tenders in the APAC region. This is in addition to the five orders worth $0.75m disclosed in September. It was announced yesterday that the Korean Water Resources Corporation (K Water) has selected X2M’s wholly owned South Korean subsidiary as the winning bidder for two remote water monitoring tenders. K Water is the principal government agency for management of water resources in South Korea.

Aggregate tender value is 1.3b Korean Won (approx. AUD$1.49m)

  • Contracting party is Korea Water Resources Corporation (K Water)
  • Time allowed for completing the deployment is 360 days from executing contract
  • Municipalities involved: Cheonan, Dangjin, Taean for a total of 9,377 households
  • Total Addressable Market: 109,744 households across the three municipalities
  • Estimated AUD$10m plus for possible future contracts across remaining households

The Melbourne tech firm is disrupting traditional business service models in APAC utilities markets which represent millions of households. The win marks X2M’s continued success over local, established and well credentialed suppliers and operators in South Korea which is currently X2M’s largest market with 18 municipalities on the X2M IoT platform. These new wins reinforce the position for the Aussie company which continues to achieve success in selling its globally leading IOT technology to gas, water and electricity utilities across the APAC region.

“It’s an excellent result for our Korean subsidiary on a number of fronts.” said Mohan Jesudason, CEO, X2M Connect. “Winning our first major mandate with K Water delivers a strong signal of strength and capability setting us up to consolidate and strengthen our leadership position in this market. In addition, replacing existing suppliers shows our competitiveness whilst installing our platform in these municipalities augers well for the future of our SaaS business and opportunities to secure future revenues”.

The tenders include the X2M IoT platform, devices and 12 months of remote meter monitoring fees. Total households now covered by X2M in these three municipalities equals a penetration of 13.7%. Importantly, the X2M IoT platform has been adopted as the standard for remote water monitoring in Dangjin and it is anticipated all future deployments will need to connect to the X2M IoT platform. Further, X2M’s strong position in this market attractively positions the Company to secure the remaining households in these three municipalities in future opportunities.

“Whilst X2M’s technology can be taken into any virtual market, its current business is focused on digitising utilities in APAC” said the Hon. Alan Stockdale AO, Non-Executive Chairman. “The region is exciting for X2M because it’s the largest population cluster in the world, the fastest growing and with a history of rapid adoption of new technologies. X2M’s strategy is to invest in growth and scale the business internationally.”

Whilst X2M previously had a small deployment of 200 households with K Water, this is the first significant contract win with the organisation and follows the granting of a Performance Excellence Certificate by the South Korean Ministry of SMEs and Startups to X2M’s subsidiary in September. This Certificate enhances the ability of X2M to tender for business with Korean Government and semi-Government agencies. Securing these tenders takes the total number of Enterprise and Government customers across the X2M group to 39 with an addressable market of in excess of 25 million households.

The X2M Board has thanked the X2M team that worked to secure these important gains. They are important, not only in themselves but, also, as they tend to confirm X2M’s leading position in this field of IOT business. For more information visit https://x2mconnect.com/


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