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Constellation Technologies (ASX:CT1) signs first customer from China

Technology
ASX:CT1      MCAP $2.212M
17 June 2020 12:30 (AEST)

A Constellation Technologies (CT1) subsidiary has signed its first customer contract in China for approximately $480,000.

The company has been expanding its internet of things (IoT) platform in the water infrastructure and management industries in China.

The contract is with Beijing BHZQ Environmental Engineering Technology (BHZQ) to provide a new Operational Management Solution (OMS) for its ecological corridor construction in Beijing.

The OMS was designed by Constellation on its existing IoT architecture and expertise.

The technology will include personal and task scheduling, with data being received from senors at 33 drainage outlets. The outlets discharge into natural water bodies such as lakes and rivers within the Daxing district in Beijing.

Additionally, the OMS will have a mobile application that will help observe information from a further 80 drainage outlets, with sensors that could be added in future contracts.

The OMS web and mobile applications are set in both Chinese and English for worldwide use as both as Software as a Service (SaaS) and local installation.

“Under recent Chinese legislation, the Ministry of Ecology and Environment of China has tasked local governments to strictly regulate monitoring, testing, tracing and treatment controls for major rivers, basins and lakes covering millions of drainage discharge outlets around China,” the company explained.

Due to this new Chinese legislation, Constellation’s subsidiary is looking to explore further opportunities in the country.

The company said it is “encouraged by the strong pipeline of potential contracts in China”.

“The current contract pipeline of the Chinese subsidiary, excluding other group revenues, exceeds an estimated RMB$41.7 million (approximately A$8.5 million) of revenues to be potentially contracted over the next 12 months,” it added.

Constellation is up 16.2 per cent on the market this morning and is selling shares for 4.3 cents each at 11:59 am AEST.

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