Financial Performance - For the fiscal year ending December 31, 2023, the company reported a revenue decrease of approximately $1,527,000 or 48.4%, totaling around $1,627,000 compared to $3,154,000 in 2022[12]. - Total revenue for the year ended December 31, 2023, was approximately $1,627,000, a decrease from $3,154,000 in 2022, with cybersecurity solutions generating $1,219,000 and SaaS business generating $408,000[45]. - The annual loss increased to approximately $1,720,000 in 2023 from $1,160,000 in 2022, primarily due to decreased performance in the cybersecurity solutions segment[57]. - The network infrastructure solutions segment reported an adjusted EBITDA profit of approximately $138,000 for the year ended December 31, 2023, compared to $36,000 in 2022, primarily due to higher-margin project completions and cost control[38]. - The network security solutions segment reported an adjusted EBITDA loss of approximately $570,000 for the year ended December 31, 2023, down from a profit of $17,000 in 2022, mainly due to inventory write-downs of about $414,000 and goodwill impairment losses of approximately $355,000 related to the acquisition of WerkDone[38]. - The SaaS segment maintained a stable adjusted EBITDA profit of approximately $152,000 for both the years ended December 31, 2023, and 2022[42]. Strategic Focus and Market Opportunities - The company is focusing on developing its cybersecurity solutions and expanding into the digital transformation and smart technology sectors, responding to the global trend of aging populations[11]. - The global cybersecurity market is projected to grow from approximately $173.5 billion in 2022 to about $266 billion by 2027, with a compound annual growth rate (CAGR) of 8.9%[13]. - The company plans to enhance its internal resources and investments in cybersecurity solutions to become a leader in the Southeast Asian market[13]. - The company aims to expand its digital transformation and smart technology market share in the elder care management system and smart healthcare system sectors, leveraging its visitor management system[39]. - The company plans to develop its visitor management system into a comprehensive elder care management system and smart healthcare system, addressing the growing demand in Singapore, one of the fastest aging populations globally[44]. - The company is committed to providing high-quality cybersecurity solutions to meet the evolving demands of the vibrant and growing technology environment in Southeast Asia[43]. Governance and Leadership - The company has appointed several independent non-executive directors with extensive backgrounds in finance and law, enhancing its governance structure[27][28]. - The management team includes professionals with significant experience in various sectors, including technology, finance, and law, contributing to strategic decision-making[30]. - The financial performance and strategic direction of the company are supported by a diverse and experienced leadership team[26][30]. - The board's composition reflects a commitment to strong corporate governance and accountability, with members holding key positions in various committees[28]. - The company emphasizes the importance of innovation and flexibility in its business strategies to achieve strong performance[15]. Environmental and Social Responsibility - The company emphasizes compliance with environmental laws in Malaysia, Singapore, and China, including the Environmental Protection Act and the Air Pollution Prevention and Control Law[90]. - The company aims to enhance its environmental performance by adopting standardized methods for calculating key performance indicators[83]. - The company is committed to sustainable development through its network infrastructure solutions, cybersecurity services, and SaaS offerings[89]. - Stakeholder engagement is prioritized to identify key environmental, social, and governance issues for continuous improvement[85]. - The company has implemented energy-saving measures to reduce emissions from its operations in Malaysia, Singapore, and China[89]. - The company encourages feedback from stakeholders regarding its environmental, social, and governance policies and performance[82]. Employee and Workplace Policies - The company has maintained a discrimination-free workplace, ensuring equal employment opportunities regardless of race, nationality, age, gender, religion, or disability[107]. - The company has a performance-based compensation policy, conducting annual performance evaluations for all employees[108]. - Employee turnover rate for the year ended December 31, 2023, is approximately 17%, down from 35% in 2022[119]. - Percentage of trained employees increased to 53% in 2023 from 43% in 2022[121]. - Total training hours increased significantly to 837 hours in 2023 from 190 hours in 2022[121]. - Average training hours per employee rose to 38 hours in 2023 from 17 hours in 2022[121]. Corporate Governance - The board of directors consists of five members, including one executive director, one non-executive director, and three independent non-executive directors, ensuring a balanced governance structure[161]. - The company held a total of eight board meetings during the fiscal year ending December 31, 2023, with full attendance from all directors[168]. - The company has adopted the GEM Listing Rules as its code of conduct for securities trading by directors, ensuring compliance with trading standards[160]. - The company did not separate the roles of Chairman and CEO, which is a deviation from the corporate governance code, but believes this arrangement serves the best interests of the group[155][156]. - The board reviews and updates corporate governance policies and practices annually to support the company's objectives[157]. - The company emphasizes the importance of ethical conduct, transparency, accountability, and integrity in all business operations[157].

Financial Performance - For the fiscal year ending December 31, 2023, Nexion Technologies Limited reported a revenue decrease of approximately $1,527,000 or 48.4%, totaling around $1,627,000 compared to $3,154,000 in 2022[15]. - The total revenue for the year ended December 31, 2023, was approximately $1,627,000, a decrease from $3,154,000 in 2022, primarily due to a reduction in revenue from the cybersecurity solutions segment, which generated about $1,219,000 compared to $2,551,000 in 2022[48]. - The annual loss increased from approximately $1,160,000 in 2022 to about $1,720,000 in 2023, primarily due to the decline in the reported performance of the cybersecurity solutions segment[60]. - The network infrastructure solutions segment reported an adjusted EBITDA profit of approximately $138,000 for the year ended December 31, 2023, compared to $36,000 in 2022, primarily due to the completion of higher-margin projects and cost control measures[41]. - The network security solutions segment reported an adjusted EBITDA loss of approximately $570,000 for the year ended December 31, 2023, down from a profit of $17,000 in 2022, mainly due to inventory write-downs of about $414,000 and goodwill impairment losses of approximately $355,000 related to the acquisition of WerkDone[41]. Business Strategy and Market Focus - The decline in revenue was attributed to project completion delays, delays in bid awards, and a focus on high-margin network security solution projects[15]. - The company is enhancing its hardware and software resources to increase the success rate of winning bids and is seeking new business opportunities in existing and new technology products[15]. - Nexion Technologies Limited is focusing on developing comprehensive elderly care management systems and smart healthcare systems to address the growing global trend of quality elderly care services[14]. - The company aims to expand its market presence in network security solutions, particularly in Malaysia and Singapore, while also venturing into the software as a service (SaaS) market in China[14]. - The company’s business strategy emphasizes the development of network security solutions and digital transformation for enterprises[14]. Compliance and Governance - Nexion Technologies Limited's annual report is compliant with the GEM listing rules and will be available on the Hong Kong Stock Exchange website and the company's website[2]. - The company is committed to providing accurate and complete information in its announcements, ensuring no misleading or fraudulent elements are present[3]. - The board of directors has confirmed the accuracy of the information provided in the annual report after reasonable inquiries[8]. - The company is committed to complying with GEM listing rules and corporate governance codes, ensuring transparency and accountability in its operations[170]. - The board consists of five members, including one executive director, one non-executive director, and three independent non-executive directors, ensuring a diverse governance structure[164]. Environmental and Social Responsibility - The company has implemented energy-saving measures to reduce emissions from its operations in Malaysia, Singapore, and China, focusing on waste management and resource utilization[92]. - The company is committed to using advanced and environmentally friendly technologies to protect the environment and optimize the use of natural resources[92]. - Total greenhouse gas emissions for the year ended 2023 were 10,074 kg, a decrease from 10,375 kg in 2022, representing a reduction of approximately 2.9%[101]. - The company has not reported any significant hazardous waste generation in 2023, maintaining a status of zero hazardous waste production[141]. - The company actively supports community investment and encourages employee participation in volunteer and charitable activities[138]. Employee Management and Training - Employee costs for the year totaled approximately $731,000, a decrease of about $417,000 from $1,148,000 in 2022, with a total of 22 employees as of December 31, 2023[78]. - The employee turnover rate for the year ended December 31, 2023, was approximately 17%, down from 35% in 2022[122]. - The percentage of employees receiving training increased to 53% in 2023 from 43% in 2022[124]. - Total training hours for employees rose significantly to 837 hours in 2023 from 190 hours in 2022[124]. - The company promotes a safe working environment, with no reported cases of employee injury or death in the past three fiscal years[121]. Risk Management and Future Outlook - The company will closely monitor potential impacts from future interest rates and geopolitical tensions while ensuring business continuity[16]. - The company aims to explore synergistic development opportunities and adapt its business strategies to strengthen growth and maximize shareholder value[16]. - The company plans to enhance its cybersecurity solution services and invest in innovation to become a leader in the Southeast Asian market[16]. - The company aims to enhance profitability and operational efficiency while minimizing potential adverse environmental impacts through regular reviews and upgrades of existing technologies[92]. - The company has identified and is addressing significant climate-related issues that may impact its operations[144].

Financial Performance - For the nine months ended September 30, 2023, the company reported total revenue of $1,627,000, a decrease of 66.8% compared to $4,898,000 for the same period in 2022[5]. - The cost of goods sold for the nine months was $636,000, down 79.7% from $3,133,000 in the previous year[5]. - The company incurred a loss before tax of $756,000 for the nine months, compared to a loss of $943,000 in the same period last year, representing a 19.8% improvement[5]. - The total comprehensive loss for the nine months was $837,000, a reduction of 22.0% from $1,073,000 in the prior year[6]. - Basic and diluted loss per share for the nine months was $0.11, an improvement from $0.14 in the same period of 2022[6]. - The company reported a net loss of $753,000 for the nine months ended September 30, 2023, compared to a net loss of $949,000 for the same period in 2022[24]. - For the nine months ended September 30, 2023, the company reported a loss attributable to owners of $801,000, compared to a loss of $1,015,000 for the same period in 2022, representing a 21% improvement[32]. - The net loss for the nine months ended September 30, 2023, was approximately $753,000, down from approximately $949,000 for the same period in 2022, reflecting improvements in the performance of reportable segments[59]. Revenue Breakdown - Revenue from the Network Infrastructure Solutions segment was $461,000, while the Network Security Solutions segment generated $813,000, and the SaaS segment contributed $353,000 for the nine months ended September 30, 2023[22]. - Revenue from Singapore decreased significantly to $477,000 in 2023 from $2,067,000 in 2022, reflecting a decline of 76.9%[26]. - The network infrastructure solutions segment generated revenue of approximately $461,000, down from $2,233,000 in the previous year, primarily due to a decrease in the scale of new projects completed[51]. - The network security solutions segment reported revenue of approximately $813,000, compared to $2,240,000 in the prior year, mainly due to project delays[51]. - The SaaS segment achieved a revenue of approximately $353,000, down from $425,000 in the same period last year, attributed to a general reduction in sales activities[51]. - The company generated $238,000 in revenue from Cyprus for the nine months ended September 30, 2023, which was not reported in the previous year[26]. Cost Management - The company continues to focus on cost management, with employee costs reduced to $603,000 from $1,085,000 year-over-year, a decrease of 44.4%[5]. - General and administrative expenses decreased from approximately $1,025,000 for the nine months ended September 30, 2022, to approximately $552,000 for the nine months ended September 30, 2023, attributed to cost control measures[57]. - Subcontracting costs for cybersecurity solutions and SaaS business were approximately $76,000 for the nine months ended September 30, 2023, down from approximately $122,000 for the same period in 2022[55]. - Sales and marketing expenses were approximately $23,000 for the nine months ended September 30, 2023, compared to approximately $27,000 for the same period in 2022, showing no significant fluctuation[56]. - The cost of goods sold decreased from approximately $3,133,000 for the nine months ended September 30, 2022, to approximately $636,000 for the nine months ended September 30, 2023, primarily due to a reduction in hardware component purchases[53]. Equity and Shareholder Information - As of September 30, 2023, total equity attributable to the company's equity holders was $4,560,000, down from $5,427,000 at the beginning of the year[10]. - The weighted average number of ordinary shares for the nine months ended September 30, 2023, was 739,800,000 shares, slightly up from 724,424,000 shares in the same period of 2022[32]. - The company did not recommend any dividend payment for the nine months ended September 30, 2023, consistent with the previous year[33]. - The company did not recommend the payment of dividends for the nine months ended September 30, 2023, consistent with the previous period[66]. Strategic Focus and Developments - The company has not disclosed any new product developments or market expansion strategies during the reporting period[5][6]. - There were no significant mergers or acquisitions reported in the current financial period[5][6]. - The company has identified significant market opportunities in Southeast Asia's cybersecurity sector, with spending expected to grow from approximately $3.2 billion in 2021 to about $6.1 billion by 2026, representing a growth rate of approximately 14%[45]. - The company plans to enhance its business and expand into the enterprise digital transformation and smart technology sectors following recent acquisitions[44]. - The company has developed a comprehensive elderly care management system, expanding its offerings beyond access management solutions, which is expected to increase its market share in the digital transformation and smart technology sectors[48]. Compliance and Governance - The company has complied with the applicable corporate governance code provisions, except for the deviation from code provision C.2.1, which states that the roles of Chairman and CEO should be separated[75]. - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited consolidated financial statements for the nine months ended September 30, 2023, and found them to comply with applicable accounting standards[81]. Taxation - The company has established tax exemptions for entities in the Cayman Islands and British Virgin Islands, resulting in no tax provisions for Hong Kong profits for the nine months ended September 30, 2023[30]. - The estimated corporate tax rate for Singapore is 17%, with certain exemptions applicable for the first SGD 10,000 of taxable income[31]. - The company reported no current tax expenses for the nine months ended September 30, 2023, in relation to its operations in China, Malaysia, and Singapore[30].

香港交易及結算所有限公司及香港聯合交易所有限公司（「聯交所」)對本公告的 內容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不對因本 公告全部或任何部分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 NEXION TECHNOLOGIES LIMITED （於開曼群島註冊成立的有限公司） （股份代號：8420） 截至二零二三年九月三十日止九個月之第三季度業績公告 Nexion Technologies Limited（「本公司」）董事會欣然宣佈本公司及其附屬公司截至 二零二三年九月三十日止九個月之未經審核簡明綜合財務業績。本公告載有本公 司二零二三年第三季度業績報告（「第三季度業績報告」）全文，符合聯交所GEM 證券上市規則（「GEM上市規則」）有關第三季度業績初步公告隨附資料之相關規 定。本公司第三季度業績報告的印刷版本將於適當時候寄發予本公司股東，並刊 登於聯交所網站www.hkexnews.hk及本公司網站http://nexion.com.hk供閱覽。 承董事會命 Nexion Technologies Limited 主席兼執行董事 Ong Gim Hai 香港，二零二三年十一 ...

Financial Performance - For the six months ended June 30, 2023, the company reported revenue of $1,156,000, a decrease of 72.9% compared to $4,261,000 for the same period in 2022[4]. - The company incurred a loss before tax of $480,000 for the six months ended June 30, 2023, compared to a loss of $458,000 for the same period in 2022, indicating a slight increase in losses[4]. - Total comprehensive loss for the six months ended June 30, 2023, was $565,000, compared to $374,000 for the same period in 2022, reflecting a 51.1% increase in losses[6]. - For the six months ended June 30, 2023, the company reported a net loss of $501,000, compared to a net loss of $482,000 for the same period in 2022, indicating a 4% increase in losses year-over-year[8]. - The company reported a basic and diluted loss per share of $0.07 for the six months ended June 30, 2023, unchanged from the same period in 2022[6]. Assets and Liabilities - As of June 30, 2023, the company's total assets amounted to $4,894,000, a decrease from $5,374,000 as of December 31, 2022, representing a decline of 8.9%[7]. - The company's net asset value as of June 30, 2023, was $4,882,000, down from $5,447,000 at the end of 2022, indicating a decrease of 10.4%[7]. - The company’s total liabilities as of June 30, 2023, were $1,518,000, down from $1,718,000 at the end of 2022, indicating an 11.6% reduction[7]. - The company’s inventory increased significantly to $707,000 as of June 30, 2023, compared to $30,000 at the end of 2022, representing a substantial increase of 2,256.7%[7]. Cash Flow and Investments - The company’s cash flow from operating activities was a net outflow of $48,000, significantly improved from a net outflow of $2,803,000 in the previous year, representing an 83% reduction in cash used[9]. - The company’s investment activities resulted in a net cash outflow of $73,000, contrasting with a net cash inflow of $1,126,000 in the same period last year[9]. - The company’s financing activities resulted in a net cash outflow of $34,000, slightly improved from a net outflow of $39,000 in the previous year[9]. Revenue Segmentation - Revenue from the Network Infrastructure segment was $382 million, down 81.6% from $2,073 million in the previous year[20]. - Revenue from the Cybersecurity segment was $555 million, a decrease of 71.5% compared to $1,945 million in the same period last year[20]. - The SaaS segment generated $219 million in revenue, down 9.9% from $243 million in the same period of 2022[20]. Operational Changes and Strategy - The company continues to focus on network infrastructure solutions, cybersecurity solutions, and Software as a Service (SaaS) offerings as part of its core business strategy[10]. - The company has identified a need for market expansion and new product development to address declining revenues in key segments[24]. - The company is exploring strategic acquisitions to enhance its market position and diversify its offerings[24]. - The company anticipates that the network security solutions business will become a major focus in the coming years, driven by the growing demand for digital transformation and smart technology solutions[68]. - The company has reallocated internal resources and adjusted its business strategy to focus on developing its network security solutions business and expanding into the enterprise digital transformation sector[68]. Governance and Compliance - The company has complied with the applicable corporate governance code provisions, except for the deviation from code provision C.2.1, which states that the roles of the chairman and CEO should be separated[105]. - The audit committee, consisting of three independent non-executive directors, has reviewed the interim consolidated financial statements and found them to comply with applicable accounting standards[112]. - The board of directors includes one executive director, one non-executive director, and three independent non-executive directors as of the report date[113].

香港交易及結算所有限公司及香港聯合交易所有限公司（「聯交所」)對本公告的 內容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不對因本 公告全部或任何部分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 NEXION TECHNOLOGIES LIMITED （於開曼群島註冊成立的有限公司） （股份代號：8420） 截至二零二三年六月三十日止六個月之中期業績公告 Nexion Technologies Limited（「本公司」）董事會欣然宣佈本公司及其附屬公司截 至二零二三年六月三十日止六個月之未經審核簡明綜合財務業績。本公告載有本 公司二零二三年中期業績報告（「中期業績報告」）全文，符合聯交所GEM證券上 市規則（「GEM上市規則」）有關中期業績初步公告隨附資料之相關規定。本公司 中期業績報告的印刷版本將於適當時候寄發予本公司股東，並刊登於聯交所網站 www.hkexnews.hk及本公司網站http://nexion.com.hk供閱覽。 承董事會命 Nexion Technologies Limited 主席兼執行董事 Ong Gim Hai 香港，二零二三年八月八日 於本公告日期， ...

Financial Performance - For the three months ended March 31, 2023, Nexion Technologies Limited reported revenue of $446,000, a decrease of 41% compared to $758,000 in the same period of 2022[6] - The cost of goods sold for the same period was $138,000, slightly down from $143,000 year-over-year[6] - Employee costs and related expenses decreased to $201,000 from $293,000, reflecting a reduction of 31.5%[6] - The company recorded a loss before tax of $205,000, compared to a loss of $190,000 in the prior year, indicating a 7.9% increase in losses[6] - Total comprehensive loss for the period was $180,000, compared to a loss of $172,000 in the same quarter of 2022, representing an increase of 4.7%[7] - Basic and diluted loss per share for the period was $0.03, unchanged from the same period last year[7] - Adjusted EBITDA for the three months ended March 31, 2023, was $92,000, down 33.8% from $139,000 in the same period of 2022[23] - The company incurred depreciation and amortization expenses of $167,000 for the three months ended March 31, 2023, compared to $214,000 in the same period of 2022[23] - The adjusted EBITDA for the SaaS segment was a profit of approximately $20,000, compared to a profit of about $105,000 for the same period last year, indicating a decrease of about 81.0%[47] - General and administrative expenses decreased significantly from approximately $342,000 to about $104,000, a reduction of about 69.6%[55] Revenue Breakdown - Revenue from the Network Infrastructure Solutions segment was $84,000, a decline of 49.1% from $165,000 in the previous year[21] - Revenue from the Cybersecurity Solutions segment was $245,000, down 43.1% from $431,000 in the same period of 2022[21] - Revenue from SaaS was $117,000, a decrease of 27.8% compared to $162,000 in the same period last year[21] - Revenue from Malaysia increased to $125,000 in Q1 2023 from $73,000 in Q1 2022, representing a growth of 71.2%[25] - Revenue from Singapore decreased significantly to $124,000 in Q1 2023 from $364,000 in Q1 2022, a decline of 65.9%[25] - For the three months ending March 31, 2023, the total revenue was approximately $446,000, a decrease of about 41.1% compared to $758,000 for the same period in 2022[49] - The revenue from the network infrastructure solutions business was approximately $84,000, down from $165,000, reflecting a decrease of about 49.1%[49] - The revenue from the cybersecurity solutions business was approximately $245,000, down from $431,000, representing a decrease of about 43.1%[49] - The SaaS business generated revenue of approximately $117,000, a decrease from $162,000, which is a decline of about 27.8%[49] Equity and Investments - As of March 31, 2023, total equity attributable to equity holders was $5,232,000, a decrease from $6,456,000 at the beginning of the year[9] - The acquisition of WerkDone Pte. Ltd. was completed for a maximum consideration of 3,500,000 SGD (approximately 2,628,000 USD), with 50% paid in cash and 50% in shares[36] - The first payment of 1,167,000 SGD (approximately 880,000 USD) was made in cash upon completion of the acquisition[37] - Performance-based payments totaling 2,333,000 SGD (approximately 1,723,000 USD) are contingent on achieving profit guarantees of at least 500,000 SGD (approximately 375,000 USD) for specified periods[39] - The company had no significant investments, acquisitions, or disposals during the reporting period[62] Corporate Governance - Alpha Sense Investments Limited holds 154,838,000 shares, representing 20.93% of the issued share capital[68] - XOX (Hong Kong) Limited owns 117,848,500 shares, accounting for 15.93% of the issued share capital[68] - UBS Group AG has a beneficial ownership of 39,465,000 shares, which is 5.33% of the issued share capital[68] - The company has complied with the applicable corporate governance code provisions, except for the deviation regarding the roles of Chairman and CEO[73] - No share options were granted, cancelled, exercised, or lapsed under the share option scheme during the three months ended March 31, 2023[78] - The audit committee, consisting of three independent non-executive directors, has reviewed the first quarter consolidated financial statements[81] - The company has not purchased, sold, or redeemed any of its listed securities during the three months ended March 31, 2023[75] - There are no known interests held by directors or major shareholders in any competing businesses as of March 31, 2023[74] - The company has adopted a code of conduct for securities trading by directors, with no known violations during the reporting period[77] Strategic Focus - Nexion Technologies Limited continues to focus on providing network infrastructure solutions and cybersecurity services, with operations in Singapore and China[11] - The company aims to focus on expanding its cybersecurity solutions business, which is expected to be a major area of growth in the coming years[43] - Southeast Asia's cybersecurity spending exceeded approximately 3.2 billion USD in 2021 and is projected to grow by about 14% to reach approximately 6.1 billion USD by 2026[43] - The company has reallocated internal resources and adjusted its business strategy to enhance its cybersecurity solutions and digital transformation services[43] - The company is committed to maintaining its accounting policies consistent with those used in the preparation of the 2022 audited financial statements[16]

Financial Performance - For the year ended December 31, 2022, the company's revenue decreased by approximately $1,521,000 or 21.9% to about $5,434,000 compared to $6,955,000 in 2021[13] - The company achieved a profit of approximately $205,000 for the year, an increase of $1,302,000 or 118.7% compared to a loss of approximately $1,097,000 in the previous year[13] - The annual loss reduced from approximately $3,080,000 for the year ended December 31, 2021, to about $1,160,000 for the year ended December 31, 2022, driven by improved performance in the network infrastructure, cybersecurity solutions, and SaaS segments[63] - Total revenue for the group was approximately $5,434,000 for the year ended December 31, 2022, down from approximately $6,955,000 in 2021, with network infrastructure solutions revenue decreasing to approximately $2,280,000 from $4,349,000[54] - The cost of goods sold decreased to approximately $3,726,000 for the year ended December 31, 2022, from approximately $4,642,000 in 2021, mainly due to reduced hardware purchases[55] - Employee costs and related expenses were approximately $1,263,000 for the year ended December 31, 2022, down from approximately $1,775,000 in 2021, attributed to reduced employee benefits and share-based payments[57] - General and administrative expenses decreased from approximately $1,450,000 for the year ended December 31, 2021, to about $981,000 for the year ended December 31, 2022, primarily due to cost control measures[62] Market Trends and Strategy - The global cybersecurity market is projected to grow from approximately $173.5 billion in 2022 to about $266.2 billion by 2027, with a compound annual growth rate (CAGR) of approximately 8.9%[14] - The company plans to strengthen its internal resources and investments in cybersecurity solutions in response to macro trends[14] - The company aims to continuously explore synergistic development opportunities and adapt its business strategies to enhance growth and maximize shareholder value[14] - The cybersecurity solutions business is expected to become a primary focus for the company in the coming years, driven by significant market opportunities in Southeast Asia, where cybersecurity spending is projected to grow from approximately $3.2 billion in 2021 to approximately $6.1 billion by 2026[50] - The company is actively monitoring risks related to rising interest rates, geopolitical tensions, and trade conflicts, while exploring synergistic development opportunities to enhance business growth[51] Leadership and Governance - Ong Gim Hai has been appointed as the CEO and Chairman since May 31, 2022, overseeing overall corporate strategy and daily operations[19] - The company has a diverse board with members holding significant experience in finance, law, and technology[26] - The board includes members with extensive backgrounds in accounting and tax consulting, enhancing financial oversight[29] - The company aims to leverage its board's diverse expertise to drive strategic growth and market expansion[26] - The board of directors consists of five members, including one executive director, one non-executive director, and three independent non-executive directors, ensuring a balanced governance structure[176] - The company has adopted the GEM Listing Rules and has confirmed compliance with the corporate governance code, except for a deviation regarding the separation of the roles of chairman and CEO[169][171] Employee and Workforce Management - The company emphasizes the importance of a harmonious work environment to retain capable employees and enhance morale through various employee activities[104] - Employee turnover rate for the year ended December 31, 2022, was approximately 35%, up from 25% in 2021[134] - The total number of suppliers decreased to 44 in 2022 from 68 in 2021, with significant reductions in Malaysia and Singapore[140] - The company had 23 employees as of December 31, 2022, down from 28 employees in 2021[89] - The gender distribution of employees in 2022 was 16 males and 7 females, compared to 12 males and 16 females in 2021[125] Environmental and Social Responsibility - The company has implemented various energy-saving measures to reduce emissions, including waste management and resource utilization strategies[107] - The total greenhouse gas emissions for the year ended December 31, 2022, amounted to 10,375 kg, an increase from 7,809 kg in 2021, primarily due to increased overseas travel as pandemic restrictions eased[113] - The company encourages employees to adopt environmentally friendly practices, such as double-sided printing and using biodegradable products[115] - The company has established a waste recycling program, significantly reducing paper usage and ensuring proper recycling of paper, aluminum cans, and plastic bottles[114] - The company actively engages in community investment and supports charitable organizations, reflecting its commitment to corporate social responsibility[150] Financial Commitments and Investments - Capital expenditure commitments amounted to approximately $4,332,000 as of December 31, 2022, an increase from about $1,569,000 in 2021[72] - The company completed the sale of Fortune Shoreline Limited for a total consideration of approximately $1,166,000 on May 18, 2022, allowing for the reallocation of financial resources to future investment opportunities[78] - The acquisition of Werkdone was completed with a maximum consideration of SGD 3,500,000 (approximately $2,628,000), with 50% paid in cash and 50% in shares, contingent on profit guarantees[73] Compliance and Risk Management - The company adopts a zero-tolerance policy towards bribery, extortion, fraud, and money laundering, ensuring compliance with relevant laws and internal policies[149] - The company has implemented a whistleblowing policy to encourage reporting of any suspected violations or misconduct[149] - The company has not been aware of any non-compliance with anti-corruption laws and regulations during the fiscal years ending December 31, 2022, and December 31, 2021[149]

Financial Performance - For the nine months ended September 30, 2021, the company reported total revenue of $2,046,000, a decrease of 75.7% compared to $8,281,000 for the same period in 2020[4] - The cost of goods sold for the nine months was $643,000, which increased by 84.8% from $348,000 in the previous year[4] - The company incurred a loss before tax of $1,220,000 for the nine months, improving by 57.1% from a loss of $2,833,000 in the same period of 2020[4] - The net loss for the nine months was $1,225,000, a reduction of 56.7% compared to $2,834,000 in the prior year[4] - Basic and diluted loss per share for the nine months was $0.18, compared to $0.37 for the same period in 2020[6] - The company reported other income of $201,000 for the nine months, down from $246,000 in the previous year, reflecting a decrease of 18.3%[4] - Employee costs and related expenses totaled $639,000 for the nine months, a slight decrease of 2.9% from $658,000 in 2020[4] - The company’s total comprehensive loss for the nine months was $1,235,000, compared to $2,846,000 in the same period last year, indicating a 56.6% improvement[6] - The adjusted EBITDA for the nine months ended September 30, 2021, was $(37,000), an improvement from $(538,000) in the same period of 2020[23] - The company reported a basic and diluted loss per share of $0.02 for the three months ended September 30, 2021, compared to a loss of $0.07 for the same period in 2020[31] - For the nine months ended September 30, 2021, the company incurred a loss of $1,270,000, an improvement from a loss of $2,679,000 in the same period of 2020[31] - The company recorded a loss of approximately $1,225,000 for the nine months ended September 30, 2021, a decrease from approximately $2,834,000 for the same period in 2020[54] Revenue Segmentation - Revenue from the network infrastructure solutions segment was $476,000, down 23.9% from $625,000 in the previous year[21] - The network security solutions segment generated revenue of $852,000, an increase of 287.3% compared to $220,000 in the same period last year[21] - SaaS revenue for the nine months ended September 30, 2021, was $718,000, a significant decrease from $7,436,000 in the same period of 2020[21] - Geographic revenue breakdown shows that revenue from China dropped to $718,000 from $7,436,000 year-over-year[26] - Revenue from the network infrastructure solutions segment was approximately $476,000, down from approximately $625,000 in the prior year[46] - Revenue from the network security solutions segment increased to approximately $852,000, compared to approximately $220,000 in the same period last year[46] Expenses and Cost Management - The company incurred depreciation and amortization expenses of $628,000 for the nine months ended September 30, 2021, down from $1,193,000 in the same period of 2020[23] - Interest income for the nine months ended September 30, 2021, was $15,000, a decrease from $58,000 in the previous year[23] - General and administrative expenses decreased from approximately $1,487,000 for the nine months ended September 30, 2020, to approximately $1,020,000 for the same period in 2021, mainly due to cost control measures[52] - Cost of goods sold increased from approximately $348,000 for the nine months ended September 30, 2020, to approximately $643,000 for the same period in 2021, primarily due to increased hardware component purchases[48] Strategic Initiatives - The company continues to focus on providing network infrastructure solutions and software as a service (SaaS) as part of its core business strategy[12] - The company completed the acquisition of Storm Front Pte. Ltd. on May 5, 2021, which is expected to enhance its existing business segments and expand into the digital transformation and smart technology sectors[38] - The company plans to expand its network security solutions services to Malaysia, with operations expected to commence in the fourth quarter of 2021[40] - The company has established a wholly-owned subsidiary in Malaysia to support its operations and is reallocating internal resources to expand its services[40] - The company is actively exploring opportunities to promote business growth and enhance shareholder value amid ongoing challenges from the COVID-19 pandemic and political instability in Myanmar[42] - The company anticipates continued challenges in the coming months but is focused on ensuring the maintenance of ongoing projects in its network infrastructure and security solutions segments[42] Corporate Governance and Compliance - The company has complied with the corporate governance code, except for the deviation regarding the separation of the roles of Chairman and CEO[73] - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited financial statements for the nine months ended September 30, 2021[81] - The financial statements have been deemed to comply with applicable accounting standards and adequately disclosed[81] - The company has established a code of conduct for directors regarding securities trading, with no known violations during the reporting period[77] - There were no known interests held by major shareholders or directors in any competing businesses as of September 30, 2021[74] - No share options were granted, cancelled, exercised, or lapsed under the share option scheme as of September 30, 2021[78] - The company did not purchase, sell, or redeem any of its listed securities during the nine months ended September 30, 2021[75] Share Capital and Ownership - As of September 30, 2021, the company had a statutory share capital of HKD 60,000,000 (approximately $7,692,000) and issued share capital of HKD 7,200,000 (approximately $923,000)[55] - As of September 30, 2021, Alpha Sense (BVI) holds 154,838,000 shares, representing 21.51% of the issued share capital[69] - XOX (Hong Kong) Limited and XOX Bhd each hold 117,848,500 shares, accounting for 16.37% of the issued share capital[69] - UBS Group AG holds 99,160,000 shares, which is 13.77% of the issued share capital[69]

Financial Performance - For the six months ended June 30, 2021, the company reported revenue of $1,054,000, a decrease of 83.5% compared to $6,367,000 for the same period in 2020[5] - The company incurred a loss before tax of $1,081,000 for the six months ended June 30, 2021, compared to a loss of $2,146,000 for the same period in 2020, representing a 49.7% improvement[5] - Total comprehensive loss attributable to owners of the company for the six months ended June 30, 2021, was $1,101,000, a decrease of 51.1% from $2,250,000 in the same period of 2020[7] - The net loss attributable to owners for the six months ended June 30, 2021, was $(1,086,000), compared to $(2,150,000) for the same period in 2020, representing a 49.6% improvement[36] - The company reported a significant decline in revenue from China, which fell to $531,000 in 2021 from $5,708,000 in 2020, representing a decrease of 93.7%[27] - Total revenue for the six months ended June 30, 2021, was approximately $1,054,000, a significant decrease from $6,367,000 for the same period in 2020[79] Assets and Liabilities - As of June 30, 2021, the company's total assets amounted to $9,489,000, a slight decrease from $9,723,000 as of December 31, 2020[9] - The company's cash and cash equivalents decreased to $4,453,000 as of June 30, 2021, down from $5,191,000 at the end of 2020[9] - The company reported a net asset value of $8,271,000 as of June 30, 2021, compared to $9,372,000 at the end of 2020, reflecting a decline of 11.7%[9] - The company’s trade receivables as of June 30, 2021, amounted to $626,000, down 53.8% from $1,354,000 as of December 31, 2020[43] - The company’s inventory as of June 30, 2021, was $90,000, a significant increase from $1,000 at the end of 2020[9] - The company has committed to short-term lease agreements totaling $72,000 as of June 30, 2021, compared to $10,000 in December 2020[65] Cash Flow and Investments - For the six months ended June 30, 2021, the company reported a net cash inflow from operating activities of $175,000, compared to a cash outflow of $1,206,000 for the same period in 2020[12] - The company incurred a total loss before tax of $(1,081,000) for the six months ended June 30, 2021, compared to a loss of $(2,146,000) in the same period of 2020, indicating a 49.6% reduction in losses[24] - The company’s investment activities resulted in a net cash outflow of $(872,000) for the six months ended June 30, 2021, compared to $(67,000) in the same period of 2020[12] - The company reported a net cash outflow of $836,000 from the acquisition of Storm Front after accounting for cash acquired[68] Expenses - The company’s employee costs and related expenses for the six months ended June 30, 2021, were $388,000, down from $436,000 in the same period of 2020, indicating a reduction of 11.0%[5] - The company’s marketing expenses for the six months ended June 30, 2021, were $422,000, a decrease of 27.6% compared to $583,000 in the same period of 2020[5] - The company’s total depreciation and amortization expenses for the six months ended June 30, 2021, were $432,000, a decrease from $795,000 in the same period of 2020[24] - General and administrative expenses decreased from approximately $855,000 to about $709,000, mainly due to cost control measures reducing professional fees[85] Acquisitions and Goodwill - The acquisition of Storm Front Pte. Ltd. was completed on May 5, 2021, for a maximum consideration of SGD 3.5 million, with 50% paid in cash and 50% in shares[66] - The company reported a total of $2,455,000 in goodwill as of June 30, 2021, following the acquisition of a subsidiary[40] - The total consideration for the acquisition of Storm Front was $2.628 million, with $880,000 paid in cash and $1.748 million as contingent consideration[68] Corporate Governance and Shareholder Information - The board did not recommend the payment of an interim dividend for the six months ending June 30, 2021[96] - Major shareholders included Alpha Sense (BVI) with a 21.51% stake and XOX (Hong Kong) Limited with a 16.37% stake[106] - The company has complied with the applicable corporate governance code provisions, except for the deviation from code provision A.2.1, which states that the roles of chairman and CEO should be separated[109] Employee Information - The total employee cost for the six months ending June 30, 2021, was approximately $388,000, a decrease of about $48,000 compared to the same period in 2020[97] - The group had a total of 34 employees as of June 30, 2021, compared to 26 employees as of June 30, 2020[97] Market and Strategic Developments - The company plans to expand its cybersecurity services into Malaysia, with operations expected to commence in Q3 2021[73] - The company has restructured its internal resources to enhance its SaaS business development in China, reflecting a strategic pivot towards the growing domestic shared economy[70]