With the widespread application of power Internet of Things (IoT), the edge IoT agents are often threatened by various attacks, among which the white-box attack is the most serious. The white-box implementation of the cryptography algorithm can hide key information even in the white-box attack context by means of obfuscation. However, under the specially designed attack, there is still a risk of the information being recovered within a certain time complexity. In this paper, by introducing pseudo states, a new white-box implementation of SM4 algorithm is proposed. The encryption and decryption processes are implemented in the form of matrices and lookup tables, which are obfuscated by scrambling encodings. The introduction of pseudo states could complicate the obfuscation, leading to the great improvement in the security. The number of pseudo states can be changed according to the requirements of security. Through several quantitative indicators, including diversity, ambiguity, the time complexity required to extract the key and the value space of the key and external encodings, it is proved that the security of the proposed implementation could been enhanced significantly, compared with the existing schemes under similar memory occupation.