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]
NEXION TECH(08420) - 2019 Q3 - 季度财报