Thanks for the note taking and summary. Just a few points I find interesting during the Q&A session:
1. We have currently sold 235 MABR plants compared to our nearest competitor who has sold 12 plants.
2. There was a comment about motivation of spending on wastewater treatment plants. As in most countries, municipalities requires funding from a national budget and it can be a constrain. China is a unique case where there is direction from the top to put wastewater treatment as a priority and has the money funding it. We work with our 40 partners in China who are able to source that funding from those national budgets.
Other motivations are like in the Philippines, penalties are levied to their water treatment facilities who not meet the stricter discharge standards.
What I find encouraging is the approach the island resorts are shown that MABR helps to reduce their cost of water treatment by half, and in addition, the better quality effluent can be used for irrigations which will further save the clients money from using fresh water. A win win situation that we are able to extend into our WaaS for the recurring segment of our revenue. These also meets the IRR for the infrastructure funds who will be keen as financiers for the projects. Currently, Bahamas is a working example.
In the USA, as in your notes, 40% of US households are using septic tanks and many are breaking down, leaking to the environment, badly in need to replace/upgrade. I am not sure what would motivate the consumers to spend on wastewater treatment though, it would be still, a question of availability of public, private or a combination of both funding.
3. As China's previous 5 year plan had aimed to lift rural wastewater treatment from 10% to 75%, but it had only managed 25%. So it is still in force and carried forward to this current 5 year plan. He expect these first 2 years will be seeing more bulk orders coming in.
On the question of "how big" the order he is expecting, he coughed and choked a bit. (Not sure if he was from holding back his enthusiasm or he needed a drink). However, he took the reference from our partnership sale to iTest as an example of the numbers of plants in general and orders in each batch.
"Next few weeks and months"... just keep echoing in between my ears. Is that also a symptom of tinnitus?
Add to My Watchlist
What is My Watchlist?
