Financial Performance - For the three months ended March 31, 2021, Nexion Technologies Limited reported revenue of $445,000, a decrease of 84.5% compared to $2,864,000 for the same period in 2020[5]. - Other income for the same period was $21,000, down 79% from $100,000 in the previous year[5]. - The cost of goods sold was $74,000, a reduction of 59.9% from $184,000 year-on-year[5]. - The total loss for the period was $578,000, an improvement of 45.3% compared to a loss of $1,059,000 in the prior year[5]. - Basic and diluted loss per share for the period was $0.08, compared to $0.14 in the same quarter of 2020[6]. - The total comprehensive loss for the period was $605,000, down 51.3% from $1,242,000 in the previous year[6]. - The adjusted EBITDA for the three months ended March 31, 2021, was $(166,000), improving from $(304,000) in the same period of 2020[22]. - The company reported a net loss of $(578,000) for the three months ended March 31, 2021, compared to a net loss of $(1,059,000) for the same period in 2020[22]. - The SaaS segment reported an adjusted EBITDA loss of approximately $80,000 for the three months ended March 31, 2021, an improvement from a loss of approximately $252,000 for the same period in 2020[37]. - The network infrastructure solutions segment reported an adjusted EBITDA loss of approximately $117,000, compared to a profit of approximately $31,000 for the same period in 2020[35]. Revenue Breakdown - The revenue breakdown for the three months ended March 31, 2021, included $148,000 from network infrastructure solutions, $40,000 from network security solutions, and $257,000 from SaaS[20]. - The geographical revenue distribution for the three months ended March 31, 2021, showed $257,000 from China, a significant decrease from $2,491,000 in the same period of 2020[25]. - For the three months ended March 31, 2021, total revenue from external customers was $445,000, a decrease of 84.5% compared to $2,864,000 for the same period in 2020[20]. - The total revenue for the three months ended March 31, 2021, was approximately $445,000, a significant decrease from approximately $2,864,000 for the same period in 2020[40]. Cost Management - The company incurred depreciation and amortization expenses of $220,000 for the three months ended March 31, 2021, down from $393,000 in the same period of 2020[22]. - The cost of goods sold decreased from approximately $184,000 for the three months ended March 31, 2020, to approximately $74,000 for the same period in 2021, primarily due to a reduction in hardware component purchases[41]. - Employee costs and related expenses decreased to approximately $164,000 for the three months ended March 31, 2021, from approximately $203,000 for the same period in 2020, mainly due to a reduction in the average number of higher-paid employees[42]. - General and administrative expenses decreased from approximately $511,000 for the three months ended March 31, 2020, to approximately $339,000 for the same period in 2021, mainly due to cost control measures[46]. Corporate Governance - The company has complied with the corporate governance code, except for the deviation regarding the separation of the roles of Chairman and CEO[66][67]. - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited consolidated financial statements for the three months ended March 31, 2021, and found them to comply with applicable accounting standards[73]. - The board of directors includes three executive directors and three independent non-executive directors, all of whom confirm the accuracy and completeness of the report[75]. Strategic Focus - The company continues to focus on providing network infrastructure solutions, cybersecurity solutions, and Software as a Service (SaaS)[10]. - The company has diversified its ICT services and is now a regional provider of network infrastructure and security solutions in Southeast Asia[32]. - The company has established an office in Shanghai, China, to focus on the rapidly growing SaaS business since 2019[32]. - The company is focusing on ensuring the continuity of ongoing projects and maintenance work in the network infrastructure and security solutions segments amid ongoing challenges[36]. Acquisitions and Investments - 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[33]. - The company completed the acquisition of 100% of Strom Front for a maximum consideration of SGD 3,500,000, with 50% paid in cash and 50% in shares, which represents approximately 2.75% of the existing issued share capital[58]. - The highest number of shares to be issued as consideration for the acquisition is 19,800,000, which will dilute the existing share capital by approximately 2.68%[58]. Shareholder Information - Major shareholders include Alpha Sense (BVI) holding 154,838,000 shares (21.51% of issued share capital) and XOX (Hong Kong) Limited holding 117,848,500 shares (16.37% of issued share capital)[63]. - As of March 31, 2021, the company had 23 employees, down from 25 employees as of March 31, 2020[57]. - As of March 31, 2021, the total employee cost was approximately $164,000, a decrease of about $39,000 compared to $203,000 for the same period in 2020[57]. Compliance and Regulatory - The company has not adopted any new or revised International Financial Reporting Standards that would have a significant impact on its financial performance for the current period[16]. - No significant events requiring disclosure occurred between March 31, 2021, and the report date[58]. - The company did not purchase, sell, or redeem any of its listed securities during the three months ended March 31, 2021[69]. - The company has no assets pledged as of March 31, 2021[55]. - There were no interests held by directors or major shareholders in any competing businesses as of March 31, 2021[68]. - The company has adopted a code of conduct for directors regarding securities trading, which complies with GEM Listing Rules[70]. - No stock options were granted, canceled, exercised, or expired under the stock option plan during the three months ended March 31, 2021[72].

Business Impact and Challenges - The year 2020 posed unprecedented challenges for the company due to the COVID-19 pandemic, significantly impacting global economic activities and financial markets[17]. - The company's network infrastructure and cybersecurity solution businesses in Singapore experienced limited operational activities, leading to a substantial revenue impact[17]. - The company's SaaS business in China was relatively less affected by COVID-19, but it still faces long-term risks and challenges due to the pandemic and the US-China trade war[17]. - The military coup in Myanmar has impacted business operations, halting efforts to promote solutions to the overthrown government, but there is a significant demand for cybersecurity solutions as per the military government's requirements[22]. - Despite challenges from COVID-19, the Myanmar coup, and the US-China trade war, the company remains confident and competitive in the existing market due to its strengthened business strategies and developed infrastructure[22]. Strategic Initiatives and Developments - The company has shifted from being a principal to an agent in its SaaS business to reduce operational risks and provide greater flexibility to clients[17]. - The company enhanced its hardware and software capabilities, including internal R&D team improvements and technology acquisitions, to better respond to challenges and seize opportunities[18]. - The company implemented an engineer training program to improve certification levels and boost engineer morale[18]. - The company plans to explore business opportunities in Southeast Asia, particularly in the Philippines, Malaysia, and Thailand, while ensuring continuity in existing projects[22]. - NEXION plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share over the next two years[38]. - The management team highlighted a strategic focus on mergers and acquisitions, aiming to acquire at least two companies in the tech sector by the end of the fiscal year[38]. Financial Performance - NEXION TECHNOLOGIES LIMITED reported a significant increase in user data, with a growth rate of 25% year-over-year in active users[38]. - The company achieved a revenue of $50 million for the fiscal year, representing a 15% increase compared to the previous year[38]. - The company has set a performance guidance of 20% revenue growth for the next fiscal year, driven by new product launches and market expansion[38]. - NEXION's gross margin improved to 45%, up from 40% in the previous year, indicating better cost management and pricing strategies[38]. - The company reported a net profit of $7.5 million, reflecting a 10% increase from the prior year[38]. - The total revenue for the year ended December 31, 2020, was approximately $8,633,000, an increase from $5,815,000 in 2019, with SaaS business revenue rising to $7,504,000 from $2,452,000[66]. Operational Adjustments - The company is actively revising contract terms with clients to mitigate risks associated with COVID-19 and the US-China trade war, transitioning from a contractor to an agent role in its SaaS business[61]. - The company continues to engage with clients and explore infrastructure upgrade opportunities despite the challenges posed by the pandemic[60]. - The company has implemented an engineer training program to enhance certifications and boost morale among its engineers[60]. Governance and Compliance - The company has adopted the principles and code provisions of the GEM Listing Rules Appendix 15 to ensure good corporate governance practices[113]. - The board of directors consists of six members, including three executive directors and three independent non-executive directors, ensuring a balance of power and authority[121]. - The company has confirmed compliance with the required trading standards and code of conduct for all directors regarding securities transactions for the year ended December 31, 2020[118]. - The company has established a framework for assessing the suitability of candidates for board positions based on integrity, qualifications, and commitment[151]. - The company has adopted a dividend policy aimed at providing stable and sustainable returns to shareholders, taking into account financial conditions and future operational needs[158]. Risk Management - The company faces various risks, including strategic, personnel, legal, economic, political, and credit risks, and has implemented measures to mitigate these risks[187]. - Financial risk management policies, including credit risk, foreign exchange risk, and liquidity risk, are continuously executed by the board[189]. - The internal control system is designed to manage risks rather than eliminate them entirely[178]. Employee and Customer Relations - The company values its employees as key assets and provides competitive compensation, with regular performance evaluations and training programs to maintain a high-quality workforce[191]. - The company assesses customer feedback through various channels, utilizing business intelligence to understand customer preferences and needs, while ensuring competitive pricing to strengthen existing relationships[192]. - The company collaborates closely with suppliers to effectively meet customer demands, ensuring a fair and transparent bidding and procurement process[193].

Financial Performance - For the nine months ended September 30, 2020, Nexion Technologies reported revenue of $8.281 million, a significant increase of 137.5% compared to $3.494 million in the same period of 2019[6] - The company incurred a loss before tax of $2.833 million for the nine months, compared to a loss of $559,000 in the same period last year, reflecting ongoing challenges[6] - The basic and diluted loss per share for the nine months was $0.37, compared to a loss of $0.09 in the same period of 2019[7] - Total comprehensive loss attributable to owners of the company for the nine months was $2.846 million, compared to a loss of $695,000 in the previous year[7] - For the nine months ended September 30, 2020, the company reported a total loss of $2.834 million, compared to a loss of $559,000 for the same period in 2019[20] - The adjusted EBITDA for the nine months ended September 30, 2020, was $(538,000), a significant decline from $1.377 million in the same period of 2019[22] - The group recorded a loss of approximately $2,834,000 for the nine months ended September 30, 2020, an increase from a loss of about $559,000 for the same period in 2019, primarily due to reduced adjusted EBITDA and increased depreciation and amortization from internal R&D efforts[51] Revenue Breakdown - Revenue from external customers for the nine months ended September 30, 2020, was $8.281 million, a decrease from $3.494 million in the same period of 2019[20] - The network infrastructure solutions segment generated revenue of $625,000 for the nine months ended September 30, 2020, down from $1.758 million in the same period of 2019[20] - The network security solutions segment reported revenue of $220,000 for the nine months ended September 30, 2020, compared to $1.736 million in the same period of 2019[20] - The SaaS segment generated revenue of $7.436 million for the nine months ended September 30, 2020, with no revenue reported for the same period in 2019[20] - The company reported a decrease in revenue from network infrastructure solutions to $363,000 for the nine months ended September 30, 2020, down from $1,457,000 in 2019[25] - The network infrastructure solutions division reported a loss of approximately $18,000 for the nine months ended September 30, 2020, compared to a profit of approximately $420,000 for the same period in 2019[38] - The network security solutions division reported a loss of approximately $396,000 for the nine months ended September 30, 2020, compared to a profit of approximately $957,000 for the same period in 2019[38] Cost Management - The cost of goods sold for the nine months was $348,000, down 59.7% from $862,000 in the previous year, indicating improved cost management[6] - The total employee costs and related expenses increased to $658,000, up 30.2% from $505,000 in the same period last year, indicating a rise in workforce or compensation[6] - The company incurred subcontracting costs of approximately $7,091,000 for the nine months ended September 30, 2020, significantly up from $364,000 for the same period in 2019, primarily due to the introduction of the SaaS business[47] - General and administrative expenses decreased to approximately $1,487,000 for the nine months ended September 30, 2020, down from $1,662,000 for the same period in 2019, due to cost control measures[50] Equity and Shareholder Information - The total equity attributable to owners of the company decreased to $5.752 million as of September 30, 2020, down from $6.311 million at the beginning of the year[9] - The company’s total equity attributable to equity holders decreased to $12.368 million as of September 30, 2020, from $15.145 million at the beginning of the year[10] - As of September 30, 2020, the company's issued share capital was approximately $923,000, divided into 720,000,000 shares with a par value of HK$0.01 each[52] - The company’s major shareholder, Mr. Fu, holds 272,686,500 shares, representing approximately 37.9% of the issued share capital[69] - As of September 30, 2020, Alpha Sense (BVI) holds 272,686,500 shares, representing approximately 37.9% of the issued share capital[72] Strategic Developments - The company established an office in Shanghai, China, to focus on its SaaS business, capitalizing on the rapid growth of the sharing economy in the region[35] - The company has diversified its ICT services and is now a provider of network infrastructure solutions in Southeast Asia[35] - The company has developed its capabilities in network security solutions and SaaS systems through its R&D efforts[35] - The company entered into a software copyright transfer agreement valued at $1,700,000 for the transfer of 15 software titles, which will support its network infrastructure and security solutions[41] - The company is actively reallocating internal resources to adapt to the partnership with XOX Bhd, aiming to enhance competitiveness and expand service offerings[36] - A temporary agreement was established on September 17, 2020, with XOX to strengthen competitive capabilities and expand service offerings[60] Governance and Compliance - The company has complied with the corporate governance code, except for the deviation from code provision A.2.1 regarding the separation of the roles of Chairman and CEO[75] - No interests in competing businesses were reported by the company's major shareholders, directors, or their associates as of September 30, 2020[76] - The company has adopted a code of conduct for securities trading by directors, with no known violations reported for the nine months ended September 30, 2020[79] - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited consolidated financial statements for the nine months ended September 30, 2020[83] - The board of directors confirmed that the report's information is accurate and complete, with no misleading or fraudulent elements[84] Dividend Policy - The company did not recommend any dividend payment for the nine months ended September 30, 2020, consistent with no dividends declared for the same period in 2019[32] - The board did not recommend the payment of dividends for the nine months ended September 30, 2020[66]

Financial Performance - For the six months ended June 30, 2020, Nexion Technologies Limited reported revenue of $6,367,000, a significant increase of 542% compared to $992,000 for the same period in 2019[7]. - The company incurred a loss before tax of $2,146,000 for the six months ended June 30, 2020, compared to a loss of $868,000 for the same period in 2019, representing an increase in loss of 147%[7]. - Total comprehensive loss attributable to owners of the company for the six months ended June 30, 2020, was $2,250,000, compared to $942,000 for the same period in 2019, indicating an increase of 138%[9]. - The basic and diluted loss per share for the six months ended June 30, 2020, was $0.30, compared to $0.14 for the same period in 2019, indicating a worsening of 114%[9]. - For the six months ended June 30, 2020, the company reported a net loss of $2,181,000, compared to a loss of $868,000 for the same period in 2019, representing an increase in loss of approximately 151%[11]. - Adjusted EBITDA for the six months ended June 30, 2020, was $(521,000), compared to $310,000 for the same period in 2019, indicating a decline in performance[24]. - The company reported a loss before tax of $(2,146,000) for the six months ended June 30, 2020, compared to a loss of $(868,000) in the same period of 2019, reflecting a worsening financial position[24]. - The company reported a net loss attributable to owners of $(2,150,000) for the six months ended June 30, 2020, compared to $(868,000) in the same period of 2019, indicating increased financial challenges[35]. Assets and Liabilities - As of June 30, 2020, total assets amounted to $23,615,000, down from $26,736,000 as of December 31, 2019, reflecting a decrease of 12%[10]. - The company's cash and cash equivalents decreased to $5,054,000 as of June 30, 2020, from $6,191,000 as of December 31, 2019, a decline of 18%[10]. - Non-current assets decreased to $5,281,000 as of June 30, 2020, from $6,086,000 as of December 31, 2019, representing a decrease of 13%[10]. - The total liabilities increased to $2,509,000 as of June 30, 2020, compared to $2,447,000 as of December 31, 2019, an increase of 3%[10]. - The company’s equity attributable to equity holders decreased to $12,863,000 as of June 30, 2020, from $15,894,000 as of January 1, 2020, a decline of approximately 19%[11]. - The group’s total liabilities increased to $2,352,000 as of June 30, 2020, compared to $2,294,000 as of December 31, 2019, marking a rise of 2.5%[50]. - The group’s total assets remained stable at $2,352,000 as of June 30, 2020, compared to $2,294,000 as of December 31, 2019[50]. Cash Flow and Investments - Operating cash flow for the six months ended June 30, 2020, was $(1,206,000), compared to $(710,000) for the same period in 2019, indicating a 70% increase in cash used in operations[12]. - The company incurred a cash outflow of $(67,000) from investing activities for the six months ended June 30, 2020, compared to $(1,339,000) in the same period of 2019, indicating a significant reduction in cash used for investments[12]. - The company has not made any significant investments, acquisitions, or disposals during the six months ended June 30, 2020[81]. Revenue Segments - The company’s revenue segments include network infrastructure solutions, network security solutions, and Software as a Service (SaaS)[18]. - Revenue from external customers for the six months ended June 30, 2020, was $6,367,000, a significant increase from $992,000 in the same period of 2019, representing a growth of 541%[22]. - Revenue from SaaS solutions reached $5,708,000 for the six months ended June 30, 2020, with no revenue reported in the same period of 2019, highlighting successful market penetration[29]. Expenses - Employee costs and related expenses increased to approximately $436,000 for the six months ended June 30, 2020, compared to $318,000 for the same period in 2019, due to salary increases and a rise in employee numbers[69]. - The company recorded subcontracting expenses of approximately $5,402,000 for the six months ended June 30, 2020, a significant increase from $139,000 for the same period in 2019, mainly due to the introduction of SaaS business[70]. - Sales and marketing expenses surged to approximately $583,000 for the six months ended June 30, 2020, compared to $12,000 for the same period in 2019, reflecting advertising costs for promoting SaaS business in China[72]. - General and administrative expenses rose from approximately $765,000 for the six months ended June 30, 2019, to approximately $855,000 for the same period in 2020, driven by increased professional fees related to the development of SaaS business[73]. Future Outlook - The company plans to focus on expanding its market presence and developing new technologies to enhance its product offerings in the future[7]. - The company has not provided specific guidance for future performance but continues to focus on expanding its SaaS offerings and improving operational efficiency[24]. - The company continues to explore partnerships to diversify service types and customer base, ensuring the long-term stability of the SaaS division[65]. Corporate Governance - The company has complied with the corporate governance code, except for the deviation regarding the separation of the roles of Chairman and CEO[96]. - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited condensed consolidated financial statements for the six months ending June 30, 2020[103].

NEXION TECHNOLOGIES LIMITED 2020 第一季度業績報告 2020 First Quarterly Report NEXION TECHNOLOGIES LIMITED (Incorporated in the Cayman Islands with limited liability) Stock code: 8420 香港聯合交易所有限公司（「聯交所」）GEM之特色 GEM的定位，乃為中小型公司提供一個上市的市場，此等公司相比起其他在聯交所上市的 公司帶有較高投資風險。有意投資的人士應了解投資於該等公司的潛在風險，並應經過審慎 周詳的考慮後方作出投資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣的證券可能會較於主板買賣的證券承受 較大的市場波動風險，同時無法保證在GEM買賣的證券會有高流通量的市場。 本報告乃遵照聯交所GEM證 券 上 市 規 則（「GEM上 市 規 則」）之 規 定 提 供 有 關Nexion Technologies Limited（「本公司」）及其附屬公司（統稱「本集團」）之資料。本公司各董事（「董 事」）願對本報告所載資料共同及個別承擔全部責任。 ...

Business Development and Strategy - The company successfully developed its own network infrastructure, the Netsis Security Hub in Hong Kong, expanding revenue sources despite challenges from political restrictions and emerging technologies[13]. - The company is focusing on accelerating the development of its Software as a Service (SaaS) platform to maintain competitiveness in the growing Chinese market, aiming to make SaaS a significant revenue growth driver[13]. - The company plans to diversify its customer base and complete a series of marketing and engineering appointments to seize opportunities in the network infrastructure and security solutions business[14]. - The company is considering investing in technology to supplement its existing capabilities due to rapidly changing customer demands[14]. - The company aims to enhance its corporate image and brand among existing and potential customers through its mature network infrastructure and strong R&D capabilities[14]. - The company is expanding its SaaS business in China, with a strategic focus on daily operations and overall development[26]. - The company is focused on expanding its market reach and exploring potential mergers and acquisitions to drive growth[26]. - The company is actively involved in developing new technologies and products in the cybersecurity space, which is critical for future growth[34]. - The company has established partnerships with suppliers to enhance its product offerings and market presence[40]. - The company is exploring potential mergers and acquisitions to accelerate growth and expand its service capabilities[36]. - The company has a strategic plan to enhance its data monitoring and collection services, which is essential for maintaining competitive advantage[35]. Financial Performance - The total revenue for the year ended December 31, 2019, was approximately $5,815,000, a decrease from $8,573,000 in 2018[53]. - The network infrastructure solutions segment generated approximately $1,308,000 in revenue, down from $4,313,000 in 2018, while the network security solutions segment generated approximately $2,055,000, down from $4,260,000 in 2018[53]. - The SaaS segment reported an adjusted EBITDA of approximately $496,000 for the year ended December 31, 2019, with significant developments in the SaaS system and joint ventures established[51]. - The cost of goods sold decreased from approximately $3,134,000 in 2018 to about $722,000 in 2019, primarily due to reduced hardware procurement for network infrastructure projects[54]. - Employee costs and related expenses decreased to approximately $1,243,000 in 2019 from $1,705,000 in 2018, attributed to a reduction in average employee numbers[56]. - Sales and marketing expenses increased significantly to approximately $1,679,000 in 2019 from about $21,000 in 2018, mainly due to advertising costs for promoting the SaaS business in China[58]. - General and administrative expenses rose to approximately $2,101,000 in 2019 from about $840,000 in 2018, influenced by losses from the sale of subsidiaries and costs associated with the expansion of the SaaS business[59]. - The group reported total assets of approximately $17,736,000 and total liabilities of approximately $2,591,000 as of December 31, 2019, compared to $17,941,000 and $2,047,000 in 2018, respectively[60]. - The company completed a placement of 120,000,000 new shares at a price of HKD 0.09 per share, raising approximately HKD 10,800,000 (about $1,385,000) to improve financial conditions and expand into the Chinese market[69]. - The net proceeds from the placement are intended for developing information and communication technology services in China and general working capital[70]. Corporate Governance - The company is committed to maintaining high standards of compliance and governance, as evidenced by its independent non-executive directors with legal and financial expertise[27][28]. - The board consists of six members, including three executive directors and three independent non-executive directors, ensuring a balanced governance structure[102]. - The board held a total of 16 meetings during the year ending December 31, 2019, with full attendance from most directors[109]. - Independent non-executive directors represent at least one-third of the board, providing independent judgment in decision-making processes[110]. - The company has established three committees: audit, remuneration, and nomination, each with clear written terms of reference[115]. - The audit committee is responsible for reviewing financial statements and internal control procedures, ensuring compliance with GEM listing rules[116]. - The remuneration committee reviews performance-based remuneration and ensures no director determines their own pay[117]. - The nomination committee evaluates the board's structure and recommends suitable candidates for board positions[122]. - The company confirmed that all directors received appropriate training throughout the year[114]. - The company has implemented a compliance officer role, with an executive director serving in this capacity[143]. Employee and Management - The company has over 30 years of experience in the information technology industry, with a focus on providing IT services to both private and government sectors[20]. - The Chief Technology Officer, Mr. Gonzales, has over 19 years of experience in the IT sector, overseeing marketing, sales, and product support[22]. - The management team includes professionals with extensive backgrounds in finance, law, and technology, enhancing the company's strategic capabilities[27][28][29]. - The R&D director has over 25 years of experience in network design and management, indicating a robust technical foundation for product development[34]. - The marketing director has a background in establishing and managing businesses in surveillance and communication products, enhancing market outreach capabilities[36]. - The finance director has over 10 years of experience in financial management, ensuring sound financial oversight for the company[41]. - The company has a strong emphasis on product and technology research and development, aiming to innovate and improve service offerings[32]. - The company has maintained a competitive compensation structure to attract and retain high-quality employees[163]. - The company plans to continue evaluating the need for hiring new engineers after three engineers resigned during the year[85]. - The company has outsourced part of its development and upgrade work to technology providers during the year[85]. Risk Management and Compliance - The company identified several key risks, including the recoverability of trade receivables, which may impact cash flow[158]. - The company has no internal audit unit, as the board believes it is not cost-effective given the current operational scale[151]. - The company’s risk management activities are ongoing, with a focus on identifying and managing operational risks[159]. - The company has established a rigorous internal policy to manage insider information and securities trading by employees and directors[151]. - The company is committed to environmental sustainability and regularly reviews its internal policies and employee feedback[162]. Shareholder Relations - The company expresses gratitude to shareholders and partners for their trust and support, emphasizing the commitment to optimizing corporate strategies for exceptional performance[17]. - The company aims to maintain effective communication with shareholders and potential investors through quarterly, interim, and annual reports[148]. - The company’s dividend policy aims to provide stable and sustainable returns to shareholders, considering various financial factors[131]. - The company did not recommend the payment of a final dividend for the year ended December 31, 2019, compared to no dividend in 2018[134]. - As of December 31, 2019, the company's share premium and capital reserves were approximately $10,851,000 and $3,922,000 respectively, available for distribution to shareholders[182].

Financial Performance - For the nine months ended September 30, 2019, the total revenue was $3,494,000, a decrease of 50.3% compared to $7,032,000 for the same period in 2018[4] - The cost of goods sold for the nine months was $862,000, down 67.6% from $2,659,000 in the previous year[4] - The operating expenses for the nine months were $2,049,000, an increase of 53.3% compared to $1,336,000 in 2018[4] - The net loss attributable to owners for the nine months was $559,000, compared to a profit of $351,000 in the same period last year[6] - The basic and diluted loss per share for the nine months was $0.09, compared to earnings of $0.06 in the previous year[6] - The company reported a total comprehensive loss of $695,000 for the nine months, compared to a comprehensive income of $122,000 in 2018[10] - Adjusted EBITDA for the nine months ended September 30, 2019, was $1,377,000, down 56.2% from $3,142,000 in the same period of 2018[23] - The company reported a loss before tax of $559,000 for the nine months ended September 30, 2019, compared to a profit of $933,000 in the same period of 2018[23] - For the three months ended September 30, 2019, the company reported a loss attributable to owners of the company of $309,000 compared to a profit of $551,000 for the same period in 2018[30] Revenue Breakdown - Revenue from the Network Infrastructure Solutions segment for the nine months ended September 30, 2019, was $1,457,000, a decline of 60.7% from $3,707,000 in 2018[27] - Revenue from the Network Security Solutions segment for the nine months ended September 30, 2019, was $1,736,000, down 39.5% from $2,871,000 in the same period of 2018[27] - Revenue from external customers in Hong Kong increased significantly to $532,000 in 2019 from $10,000 in 2018[26] - Revenue from Malaysia decreased to $1,207,000 in 2019 from $2,078,000 in 2018, reflecting a decline of 41.9%[26] - Revenue from network infrastructure solutions was approximately $1,758,000, down from $4,161,000, representing a decline of about 57.7%[41] - Revenue from cybersecurity solutions was approximately $1,736,000, down from $2,871,000, a decrease of about 39.5%[41] Equity and Share Issuance - As of September 30, 2019, the total equity was $16,542,000, an increase from $15,575,000 at the beginning of the year[10] - The company issued 120,000,000 new shares at a price of HKD 0.09 per share, raising approximately $1,343,000[10] - The company raised approximately $1,385,000 from the placement of 120,000,000 new shares, intended for the development of ICT services in China and general working capital[51] Tax and Expenses - The company incurred a total income tax expense of $211,000 for the three months ended September 30, 2019, compared to $582,000 for the same period in 2018[6] - Total depreciation and amortization for the nine months ended September 30, 2019, was $762,000, an increase from $478,000 in the same period of 2018[21] - The company reported a depreciation expense of $524,000 for the nine months ended September 30, 2019, compared to $302,000 for the same period in 2018[5] - Employee costs and related expenses decreased from approximately $1,176,000 to $505,000, a decline of about 57.0%[43] - Total employee costs for the nine months ended September 30, 2019, were approximately $505,000, a decrease of about $671,000 compared to $1,176,000 for the same period in 2018[58] Corporate Governance and Compliance - The company did not recommend any dividend for the nine months ended September 30, 2019, consistent with the same period in 2018[32] - The company has complied with the applicable corporate governance code provisions, except for the separation of the roles of chairman and CEO[65] - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited condensed consolidated financial statements for the nine months ended September 30, 2019, confirming compliance with applicable accounting standards[73] - The board of directors, including three executive directors and three independent non-executive directors, collectively assumes responsibility for the accuracy and completeness of the report[74] Strategic Initiatives - The company has invested more resources in developing the Netsis Security Hub, launched in May 2019, to further diversify its revenue sources[35] - The company established a joint venture on September 24, 2019, to develop a SaaS platform aimed at providing comprehensive services to individual businesses and enterprises[36] - The company has focused on enhancing its R&D capabilities to continuously develop new products and improve existing services[36] - The company has established new entities in China to capitalize on the growing demand for SaaS solutions[36] Employment and Shareholding - As of September 30, 2019, the group had a total of 21 employees, a decrease from 27 employees in the previous year[58] - The chairman and CEO, Mr. Fu, holds 272,686,500 shares, representing 37.87% of the issued share capital[60] - Major shareholder Alpha Sense (BVI) also holds 272,686,500 shares, accounting for 37.87% of the issued share capital[62] - Power Ace Investments Limited holds 83,330,000 shares, which is 11.57% of the issued share capital[62] Other Information - The company did not anticipate any significant impact from the adoption of new or revised International Financial Reporting Standards on its financial statements[15] - There were no significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures during the nine months ended September 30, 2019[55] - There were no pledges of assets as of September 30, 2019, and December 31, 2018[56] - The company did not purchase, sell, or redeem any of its listed securities during the nine months ended September 30, 2019[68] - The stock option plan was adopted through a written resolution passed on May 31, 2017, with no options granted, canceled, exercised, or lapsed as of September 30, 2019[71]

Financial Performance - For the six months ended June 30, 2019, Nexion Technologies Limited reported total revenue of $992,000, a decrease of 79.1% compared to $4,754,000 for the same period in 2018[4]. - The company incurred a loss before tax of $868,000 for the six months, compared to a profit of $171,000 in the same period of 2018[4]. - Total comprehensive loss attributable to owners for the six months was $942,000, compared to a loss of $388,000 in the prior year[6]. - The adjusted EBITDA for the total reportable segments was $310,000, a sharp decline from $1,636,000 in the previous year[22]. - The company reported a net loss attributable to owners of the company of $868,000 for the six months ended June 30, 2019, compared to a loss of $200,000 for the same period in 2018[36]. - The net loss for the six months ended June 30, 2019, increased to approximately $868,000 from $200,000 in the prior period, primarily due to a decrease in reported segment performance[86]. Revenue Breakdown - Revenue from external customers for the network infrastructure solutions segment was $537,000, while the network security solutions segment generated $455,000, totaling $992,000 for the period[20]. - The geographical revenue breakdown shows that Singapore contributed $229,000, while Myanmar's revenue dropped significantly to $213,000 from $3,008,000 in the previous year[25]. - Revenue from network infrastructure solutions was about $537,000, down from $3,827,000 in the previous year, while revenue from network security solutions was approximately $455,000, down from $927,000[81]. Cost and Expenses - The cost of goods sold for the six months was $283,000, down 88.2% from $2,409,000 in the previous year[4]. - Employee costs and related expenses for the six months were $318,000, a decrease of 61.2% from $820,000 in the same period of 2018[4]. - Other operating expenses increased from approximately $645,000 to about $916,000, attributed to higher maintenance and professional fees related to the Security Hub[85]. Assets and Liabilities - As of June 30, 2019, total assets amounted to $15,102,000, a decrease from $16,044,000 as of December 31, 2018[8]. - The company's cash and cash equivalents decreased to $5,760,000 from $7,818,000 at the end of 2018, reflecting a decline of 26.3%[8]. - Trade receivables from third parties decreased to $2,156,000 as of June 30, 2019, from $3,136,000 as of December 31, 2018, indicating a decline of approximately 31%[47]. - Trade payables increased to $330,000 as of June 30, 2019, compared to $243,000 as of December 31, 2018, representing a growth of approximately 36%[54]. Cash Flow - For the six months ended June 30, 2019, Nexion Technologies Limited reported a net cash outflow from operating activities of $710,000, a significant decrease from a cash inflow of $3,432,000 in the same period of 2018[10]. - The company experienced a total cash outflow of $2,049,000, compared to a smaller outflow of $345,000 in the prior year[10]. Corporate Governance - The company has complied with the corporate governance code, except for the deviation regarding the separation of the roles of chairman and CEO, which is held by the same individual[105]. - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited condensed consolidated financial statements for the six months ending June 30, 2019, ensuring compliance with applicable accounting standards[113]. Future Outlook and Strategy - The company is currently negotiating multiple new projects with clients primarily in Southeast Asia, aiming to secure additional revenue in the second half of 2019[65]. - The company plans to reallocate internal resources to enhance its business development in China, seeking experienced partners in the ICT solutions sector[66]. - The company remains optimistic about the industry outlook and is confident in its future development due to its strong R&D capabilities and diversified customer base[66].

Financial Performance - For the three months ended March 31, 2019, Nexion Technologies Limited reported revenue of $275,000, a decrease of 88.8% compared to $2,445,000 in the same period of 2018[5]. - The company incurred a loss before tax of $504,000, compared to a loss of $343,000 in the prior year, reflecting a 46.9% increase in losses[5]. - Total comprehensive loss attributable to owners for the period was $518,000, slightly improved from $522,000 in the previous year[5]. - Basic and diluted loss per share for the period was $0.08, compared to $0.07 in the same period last year[5]. - Other income for the quarter was $63,000, down from $159,000, indicating a decline of 60.4% year-over-year[5]. - The company reported a loss before tax of $(504,000) for the three months ended March 31, 2019, compared to a loss of $(343,000) for the same period in 2018[18]. - The company's loss increased from approximately $397,000 for the three months ended March 31, 2018, to approximately $504,000 for the three months ended March 31, 2019, primarily due to a decrease in adjusted EBITDA[45]. Revenue Breakdown - For the three months ended March 31, 2019, revenue from external customers for the Network Infrastructure Solutions was $268,000, and for Network Security Solutions was $7,000, totaling $275,000[16]. - Revenue from external customers in the geographical segment for the three months ended March 31, 2019, included $120,000 from Singapore and $101,000 from Myanmar, while total revenue was $275,000[21]. - Revenue from the network infrastructure solutions business was approximately $268,000 for the three months ended March 31, 2019, compared to approximately $2,370,000 for the same period in 2018[40]. - The network security solutions business generated revenue of approximately $7,000 for the three months ended March 31, 2019, down from approximately $75,000 for the same period in 2018[40]. Cost Management - The cost of goods sold for the same period was $166,000, down from $1,663,000, indicating a significant reduction in inventory costs[5]. - Employee costs and related expenses decreased to $160,000 from $372,000, a reduction of 57.0%[5]. - Other operating expenses decreased from approximately $455,000 for the three months ended March 31, 2018, to approximately $325,000 for the same period in 2019[44]. - The total employee cost for the three months ended March 31, 2019, was approximately $160,000, a decrease of about $212,000 compared to approximately $372,000 for the same period in 2018[52]. - The company had a total of 22 employees as of March 31, 2019, down from 55 employees as of March 31, 2018, due to streamlining operations in China[52]. Investments and Developments - The company has successfully developed its own network infrastructure, Netsis Hybrid Converge Hub, expanding its revenue sources[36]. - The company is investing more resources in developing the Netsis Security Hub, expected to launch in 2019, further broadening its revenue sources[36]. - The company is exploring and expanding its business into new markets, including Europe, the Middle East, and Africa, to enhance its core competitiveness[37]. - There were no significant investments, acquisitions, or disposals during the three months ended March 31, 2019[50]. Financial Management and Governance - The company maintained a prudent financial management approach and a stable liquidity position throughout the reporting period[47]. - The company did not have any significant contingent liabilities as of March 31, 2019[49]. - The company has no foreign currency hedging policy but monitors foreign exchange rate fluctuations closely[48]. - The company complied with the corporate governance code, except for the separation of the roles of Chairman and CEO, which are held by the same individual[61]. - The company has adopted a code of conduct for directors regarding securities trading, which complies with GEM Listing Rules[65]. - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited consolidated financial statements for the three months ended March 31, 2019, and found them compliant with applicable accounting standards[69].

Company Overview - Nexion Technologies Limited focuses on providing network infrastructure and cybersecurity solutions, establishing itself as a regional provider in Southeast Asia since its inception in 2002[10]. - The company has established itself as a regional provider of network infrastructure solutions in Southeast Asia since its founding in 2002[42]. - The company primarily engages in providing network infrastructure solutions and developing network security solutions[154]. Strategic Plans and Market Expansion - The company plans to invest significantly in its R&D team to develop new products and enhance existing services, aiming to strengthen its position as a comprehensive ICT solutions provider in the Asia-Pacific region[10]. - Nexion aims to explore and expand its business into new markets, including Europe, the Middle East, and Africa, to diversify its business risks and utilize internal resources effectively[11]. - The company plans to diversify its geographical coverage and customer base, exploring markets in Europe, the Middle East, and Africa[47]. Financial Performance - For the year ended December 31, 2018, the total revenue was approximately $8,573,000, a slight increase from $8,538,000 in 2017[49]. - The network infrastructure solutions segment reported an adjusted EBITDA of approximately $362,000, down from $2,202,000 in 2017, primarily due to operating losses in the Chinese subsidiary[49][44]. - The network security solutions segment reported an adjusted EBITDA of approximately $4,161,000, an increase from $2,168,000 in 2017, attributed to new customers in South Korea[49][45]. - Revenue from Southeast Asian external customers accounted for approximately 77% of total revenue, down from 80% in 2017[45]. - Employee costs and related expenses increased to approximately $1,705,000 from $1,195,000 in 2017, mainly due to higher salaries and bonuses[51]. - Other operating expenses rose to approximately $861,000 from $752,000 in 2017, driven by further business development and expansion[52]. - As of December 31, 2018, the group had current assets of approximately $13,889,000, down from $15,455,000 in 2017[55]. - The group had no bank borrowings or debts, with total assets of approximately $17,941,000 and total liabilities of approximately $2,047,000 as of December 31, 2018[55]. Research and Development - The company emphasizes its strong R&D capabilities and diverse customer base as key factors for establishing a better reputation and leadership in the network infrastructure and cybersecurity market[13]. - The company has a strong focus on product and technology research, design, and development, led by Chief Development Officer Tian Guoliang[29]. - The R&D Director, Chen Gaozhi, has over 25 years of experience in software engineering and programming, emphasizing network design and large-scale deployment[31]. - The company is committed to developing proprietary solutions, indicating a focus on innovation and market differentiation[29]. - The group maintains a strong R&D capability and is optimistic about benefiting from the growing demand for network infrastructure and security solutions globally[48]. Management and Governance - The management team includes professionals with extensive backgrounds in finance, law, and technology, enhancing the company's strategic capabilities[23][24][25]. - The management team has a diverse educational background, with degrees in computer engineering, law, and business, contributing to a well-rounded leadership[21][24][26]. - The leadership team is actively involved in the implementation of new technologies and solutions, ensuring alignment with market demands[29][31]. - The board of directors consists of five members, including three independent non-executive directors, ensuring a balance of power[91]. - The company emphasizes the importance of independent non-executive directors in its governance structure, with a majority of the Nomination Committee being independent[116]. - The company has conducted eight board meetings in the fiscal year, with full attendance from all directors[98]. Shareholder and Dividend Policy - The company did not recommend a final dividend for the year ended December 31, 2018, consistent with 2017[67]. - The company has adopted a dividend policy to provide stable and sustainable returns to shareholders[126]. - The company has established a series of channels to maintain effective communication with shareholders and potential investors, including regular disclosures of quarterly, interim, and annual reports[146]. Risks and Challenges - The company anticipates a slowdown in business development in China due to the ongoing trade tensions between the US and China, while expecting less impact on Southeast Asia's economy[11]. - The group has identified several major risks, including the recoverability of trade receivables which may impact cash flow[156]. - The group faces uncertainties in acquiring new contracts, which may affect future revenue streams[158]. Operational Developments - The company has established a strong foundation in network security solutions, which is critical for its growth strategy[30]. - The group completed the acquisition of two properties in Singapore on January 9 and February 14, 2018, following the fulfillment of all conditions outlined in the subscription letters[64]. - The group has established a regional office in Dubai to support market expansion in the Middle East and Africa[76]. - The group plans to recruit qualified senior technical sales engineers in Dubai following the completion of a feasibility study[76]. Employee and Labor Relations - The total employee cost for the year ended December 31, 2018, was approximately $1,705,000, an increase of about $510,000 compared to the previous year[70]. - The group had 20 employees as of December 31, 2018, down from 44 employees in 2017, primarily due to streamlining operations in China and the sale of subsidiaries[70]. - The group has not experienced any significant employment relationship issues or labor disputes affecting operations as of the report date[161].