Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 6,946,000, an increase of 15% compared to HKD 6,039,000 for the same period in 2023[2]. - Other income increased to HKD 154,000, up from HKD 92,000, representing a 67.4% increase year-over-year[2]. - Loss before tax from continuing operations was HKD 3,431,000, compared to a loss of HKD 1,959,000 in the previous year, indicating an increase in losses of 75.2%[2]. - Total comprehensive loss for the period was HKD 4,339,000, slightly improved from HKD 4,398,000 in the same period last year[3]. - Basic and diluted loss per share from continuing operations was HKD 0.37, compared to HKD 0.29 in the previous year, reflecting a 27.6% increase in loss per share[10]. - The net loss for the six months ended June 30, 2024, was HKD 4,057,000, compared to a net loss of HKD 3,902,000 for the same period in 2023, indicating a 4% increase in losses[21]. - The company reported a total comprehensive loss of HKD 4,468,000 for the six months ended June 30, 2024, compared to a total comprehensive loss of HKD 3,712,000 for the same period in 2023[21]. - The group recorded a loss of approximately HKD 3,785,000 for the six months ended June 30, 2024, compared to a loss of approximately HKD 3,712,000 for the same period in 2023, primarily due to reduced performance in the cybersecurity solutions and SaaS segments[72]. Assets and Liabilities - Current assets totaled HKD 28,308,000, a decrease from HKD 32,926,000 as of December 31, 2023[19]. - Total liabilities related to current assets were HKD 8,453,000, compared to HKD 8,422,000 in the previous year, indicating a slight increase[20]. - The company reported a net asset value of HKD 19,855,000, down from HKD 24,504,000 in the previous year[20]. - As of June 30, 2024, the company's total equity amounted to HKD 28,047,000, a decrease of 13.5% from HKD 32,386,000 as of January 1, 2023[21]. - The company's cash and cash equivalents decreased by HKD 3,681,000 during the reporting period, compared to a decrease of HKD 1,208,000 in the previous year[23]. - As of June 30, 2024, the company reported trade payables of HKD 1,040 million, an increase from HKD 949 million as of December 31, 2023, reflecting a growth of approximately 9.6%[60]. - As of June 30, 2024, trade and other payables increased to HKD 7,388 million from HKD 6,450 million as of December 31, 2023, representing a growth of approximately 14.6%[60]. Cash Flow - Cash used in operating activities for the six months ended June 30, 2024, was HKD 3,698,000, significantly higher than HKD 374,000 in the same period of 2023[22]. - The company reported a net cash inflow of HKD 858,000 from the sale of a subsidiary during the reporting period[22]. - The company incurred a total cash outflow of approximately HKD 19,000 for lease liabilities related to office properties for the six months ended June 30, 2024, compared to approximately HKD 257,000 in 2023[48]. - The net cash used in operating activities from discontinued operations was HKD 475,000 for the six months ended June 30, 2024, compared to a cash outflow of HKD 518,000 in the same period of 2023[58]. Operational Changes - The company has ceased operations in network infrastructure solutions as of February 29, 2024, focusing on cybersecurity solutions and Software as a Service (SaaS)[24]. - The company relocated its main operating location from Singapore to Malaysia on March 1, 2024[24]. - The company has shifted its focus from network infrastructure solutions to cybersecurity solutions, capitalizing on the growing market opportunities in Southeast Asia[64]. - The company has reallocated internal resources to enhance its cybersecurity service offerings and digital transformation initiatives[64]. Revenue Segments - Total revenue from external customers for the six months ended June 30, 2024, was HKD 7,040 million, compared to HKD 9,017 million for the same period in 2023, representing a decrease of approximately 22%[29]. - Revenue from Malaysia increased to HKD 3,936 million in the first half of 2024, up from HKD 1,654 million in the same period of 2023, showing a growth of approximately 138%[34]. - The adjusted EBITDA for the SaaS segment was HKD 1,138 million for the six months ended June 30, 2024, compared to HKD 364 million for the same period in 2023, reflecting a substantial increase[29]. - The adjusted EBITDA for the network security solutions segment was HKD (74) million for the six months ended June 30, 2024, compared to HKD 875 million for the same period in 2023, indicating a significant decline[29]. Employee and Operational Costs - Employee costs and related expenses were approximately HKD 3,398,000 for the six months ended June 30, 2024, reflecting higher compensation for newly hired IT professionals[69]. - Sales and marketing expenses rose to approximately HKD 845,000 for the six months ended June 30, 2024, compared to approximately HKD 86,000 for the same period in 2023, due to increased sales commissions from new customer projects[70]. - General and administrative expenses decreased from approximately HKD 2,195,000 for the six months ended June 30, 2023, to approximately HKD 1,958,000 for the same period in 2024, due to cost control measures[71]. - The total employee cost for the six months ending June 30, 2024, was approximately HKD 3,398,000, an increase of about HKD 668,000 compared to HKD 2,730,000 for the same period in 2023[82]. Shareholder Information - Major shareholders include Alpha Sense Investments Limited and XOX (Hong Kong) Limited, holding 17.44% and 13.27% of the shares, respectively[85]. - The company’s issued share capital increased to HKD 8,878 million as of June 30, 2024, following the completion of a placement of 147,960,000 shares[62]. - The net proceeds from a placement of 147,960,000 shares at HKD 0.024 per share amounted to approximately HKD 3,434,000, with HKD 1,420,000 utilized for general working capital by June 30, 2024[82]. - The unutilized net proceeds from the placement were approximately HKD 2,014,000, which the company plans to use for general working capital by June 30, 2025[82]. Governance and Compliance - The company has complied with the corporate governance code, except for the separation of the roles of Chairman and CEO, which it believes is in the best interest of the group[87]. - The audit committee, consisting of three independent non-executive directors, has reviewed the interim consolidated financial statements and confirmed compliance with applicable accounting standards[93]. - The company has adopted a code of conduct for directors regarding securities trading, with no known violations during the six months ending June 30, 2024[90].
NEXION TECH(08420) - 2024 - 中期财报