Ann: Fluence Announces Key Orders In China and SE Asia, page-30

This is a very good point you had raise. US$4.6m order announced sounds immaterial to those who not follow FLC, what they might have missed is what this announcement leads to.

As you had mentioned, other SOEs, both provincial and national will take this as a validation of FLC's technology, and more importantly, a guide to their own projects on CAPEX and OPEX comparing to other alternatives, and how much they can budget for.

On our revenue side, this is a good start with 14 towns in 2 counties within Hunan. There are another 10 more provinces under this umbrella we can look forward to.

I think what I find most exciting in this announcement is the price point we can achieve in Aspiral Micro. Sale of 2 units for US$28,000 which means US$14,000 per unit. I believe this is only for trial for China Rail. The Micro only treats 5 m3/d which is suitable for 8 to 10 households. If we can recall the post by @nequalsone referring to the testing in Hangzhou where both the Aspiral MABR and Micros were featured in the video, the recommendation there was for the use of AAO and MABR for the northern flatter regions and a smaller distributed system for the southern hilly regions.

How many systems will they need in this case? If we assume for simplicity sake, that for a bulk discounted order, we are able to charge US$10k per unit of Micros, 100 units for 800 to 1000 households would be a US$1m order and I would expect more is needed. A check in Wikipedia that Hangzhou prefecture had a registered population of about 9m in 2015, and about 6.8m in the city's urban area, which means 2.2m in rural. If we assume 5% needs a Micro, that would be about 2,500 units.

Hangzhou will be the host for the 2022 Asian Game. There will be much urgency to get the ground water, irrigation, water reuse, water supply in premium condition to showcase to the rest of Asia.