Wasion Information Reaches 2% Share Buyback Milestone, Signals Bet on Energy AI

Wasion Information (688100.SH) announced it has repurchased over 2% of its total share capital, signaling strong management confidence in its strategic direction amid the growing convergence of computing and power infrastructure.

According to a company filing on Aug. 31, Wasion has now cumulatively bought back 9.989 million shares, or 2.03% of its total equity. The company spent approximately RMB 104 million on buybacks in August alone. This is part of a larger, ongoing repurchase plan to use RMB 150 million to RMB 200 million of its own funds for shares intended for future equity incentive or employee stock ownership plans.

Strategic Pivot to 'Computing and Power'

The consistent share buybacks, the fourth round since the company's listing, are seen as a strong affirmation of Wasion's pivot towards the high-growth "energy AI" sector. The company is evolving its core technology from traditional communication for smart meters to integrated systems that combine communication, sensing, and edge computing.

This shift is backed by a significant increase in research and development. In the first half of the year, Wasion's R&D expenses reached RMB 109 million, representing 10.26% of its operating revenue, an increase of 2.71 percentage points year-over-year. The company is developing its WTI30, a system-on-chip (SoC) that integrates next-generation communication with multi-dimensional sensing and edge AI, targeting applications in smart monitoring, solar grid integration, and low-voltage grid management.

Diversifying Growth Drivers

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Beyond its core domestic smart grid business, Wasion is cultivating multiple avenues for future growth, focusing on AI applications and international expansion.

• AI & Data Infrastructure: The company has launched its Zhirong AI platform, which is already being deployed for grid monitoring tasks like fault location, ice detection, and wildfire risk analysis. Wasion is also expanding into data center infrastructure, developing optical modules and AI hardware to support intelligent energy management for high-demand computing facilities.
• Overseas Expansion: The international market has become a significant revenue source. In the first half of the year, overseas revenue reached RMB 263 million, accounting for 24.8% of the total. The company has secured key projects in the Middle East and Africa and is expanding its global footprint with a new subsidiary in Morocco and production facilities in Indonesia and Saudi Arabia.

Market Context

While domestic grid investment rationalizes, the focus is shifting from simple capacity expansion to digitalization and intelligence—Wasion's core strength. The increasing complexity of the power grid, driven by renewable energy sources and new loads like data centers, is creating sustained demand for advanced monitoring, control, and AI-driven optimization solutions.

The company's continued investment in share repurchases, especially amid what it termed short-term pressure on semi-annual results, reinforces its long-term outlook on the durability of these trends. Wasion's strategy positions its domestic grid business as a stable foundation, with AI, the computing-power convergence, and overseas markets poised to be key future growth engines.