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].
NEXION TECH(08420) - 2019 - 中期财报