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].