CyanConnode (LON:CYAN) on Friday said it had signed its first licensing deal with a Chinese firm after inking a US$4mln agreement with Beijing Jingybeifang Instrument Co, sending its shares soaring.
The narrowband radio network specialist said the deal provides Beijing Instruments with the right to use its designs to manufacture advanced metering infrastructure (AMI) including RF mesh network technologies, which Beijing Instruments hopes to supply to its customers.
According to a report from analysts at Navigant Research, China's shipment of smart electric meters hit 130mln units in 2016. They have also calculated that the compound annual growth rate of shipments for the period 2017 to 2021, will be between 3% and 5%1.
“CyanConnode can provide licensing packages that support partners’ needs as well as facilitating the localised manufacture of components,” John Cronin, CyanConnode’s executive chairman said in a statement.
“As there will be little or no associated development or manufacturing costs, the impact on our resources will be minimal. We look forward to a long and successful collaborative partnership with Beijing Instruments,” he added.
Shares in CyanConnode were 30% up at 12.35p in late morning trade.