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].
NEXION TECH(08420) - 2019 Q1 - 季度财报