NEXION TECHNOLOGIES LIMITED 2022 第三季度業績報告 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。有意投資者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。董事在作出一切合理查詢後，確認就彼等 所深知及確信，本報告所載資料在各重要方面均屬準確及完備，沒有誤導或欺詐成分，且並無 遺漏任何其他事項致使本報告或其所載任何陳述產生誤導。 業績 本公司董事會（「董事會」）特此宣佈本集團截至二零二二年九月三十日止九個 ...

NEXION TECHNOLOGIES LIMITED 2022 中期報告 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。有意投資者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。 香港交易及結算所有限公司及聯交所對本報告之內容概不負責，對其準確性或完整性亦不發表 任何聲明，並明確表示概不就因本報告全部或任何部份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。 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。各董事在作出一切合理查詢後，確認就彼 等所深知及確信，本報告所載資料 ...

NEXION TECHNOLOGIES LIMITED 2022 第一季度業績報告 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。董事在作出一切合理查詢後，確認就彼等 所深知及確信，本報告所載資料在各重要方面均屬準確及完備，沒有誤導或欺詐成分，且並無 遺漏任何其他事項致使本報告或其所載任何陳述產生誤導。 CONSOLIDATED STATEMENT OF FINANCIAL ...

NEXION TECHNOLOGIES LIMITED 2021年 報 目錄 | 香港聯合交易所有限公司GEM 之特色 | 2 | | --- | --- | | 公司資料 | 3 | | 主席報告 | 4 | | 董事及高級管理層履歷 | 5 | | 管理層討論及分析 | 9 | | 環境、社會及管治報告 | 17 | | 企業管治報告 | 36 | | 董事會報告 | 50 | | 獨立核數師報告書 | 63 | | 綜合損益及其他全面收益表 | 71 | | 綜合財務狀況表 | 72 | | 綜合權益變動表 | 73 | | 綜合現金流量表 | 75 | | 綜合財務報表附註 | 76 | | 財務概要 | 139 | 1 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之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 ...

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]

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].