Financial Performance - For the six months ended June 30, 2020, Nexion Technologies Limited reported revenue of $6,367,000, a significant increase of 542% compared to $992,000 for the same period in 2019[7]. - The company incurred a loss before tax of $2,146,000 for the six months ended June 30, 2020, compared to a loss of $868,000 for the same period in 2019, representing an increase in loss of 147%[7]. - Total comprehensive loss attributable to owners of the company for the six months ended June 30, 2020, was $2,250,000, compared to $942,000 for the same period in 2019, indicating an increase of 138%[9]. - The basic and diluted loss per share for the six months ended June 30, 2020, was $0.30, compared to $0.14 for the same period in 2019, indicating a worsening of 114%[9]. - For the six months ended June 30, 2020, the company reported a net loss of $2,181,000, compared to a loss of $868,000 for the same period in 2019, representing an increase in loss of approximately 151%[11]. - Adjusted EBITDA for the six months ended June 30, 2020, was $(521,000), compared to $310,000 for the same period in 2019, indicating a decline in performance[24]. - The company reported a loss before tax of $(2,146,000) for the six months ended June 30, 2020, compared to a loss of $(868,000) in the same period of 2019, reflecting a worsening financial position[24]. - The company reported a net loss attributable to owners of $(2,150,000) for the six months ended June 30, 2020, compared to $(868,000) in the same period of 2019, indicating increased financial challenges[35]. Assets and Liabilities - As of June 30, 2020, total assets amounted to $23,615,000, down from $26,736,000 as of December 31, 2019, reflecting a decrease of 12%[10]. - The company's cash and cash equivalents decreased to $5,054,000 as of June 30, 2020, from $6,191,000 as of December 31, 2019, a decline of 18%[10]. - Non-current assets decreased to $5,281,000 as of June 30, 2020, from $6,086,000 as of December 31, 2019, representing a decrease of 13%[10]. - The total liabilities increased to $2,509,000 as of June 30, 2020, compared to $2,447,000 as of December 31, 2019, an increase of 3%[10]. - The company’s equity attributable to equity holders decreased to $12,863,000 as of June 30, 2020, from $15,894,000 as of January 1, 2020, a decline of approximately 19%[11]. - The group’s total liabilities increased to $2,352,000 as of June 30, 2020, compared to $2,294,000 as of December 31, 2019, marking a rise of 2.5%[50]. - The group’s total assets remained stable at $2,352,000 as of June 30, 2020, compared to $2,294,000 as of December 31, 2019[50]. Cash Flow and Investments - Operating cash flow for the six months ended June 30, 2020, was $(1,206,000), compared to $(710,000) for the same period in 2019, indicating a 70% increase in cash used in operations[12]. - The company incurred a cash outflow of $(67,000) from investing activities for the six months ended June 30, 2020, compared to $(1,339,000) in the same period of 2019, indicating a significant reduction in cash used for investments[12]. - The company has not made any significant investments, acquisitions, or disposals during the six months ended June 30, 2020[81]. Revenue Segments - The company’s revenue segments include network infrastructure solutions, network security solutions, and Software as a Service (SaaS)[18]. - Revenue from external customers for the six months ended June 30, 2020, was $6,367,000, a significant increase from $992,000 in the same period of 2019, representing a growth of 541%[22]. - Revenue from SaaS solutions reached $5,708,000 for the six months ended June 30, 2020, with no revenue reported in the same period of 2019, highlighting successful market penetration[29]. Expenses - Employee costs and related expenses increased to approximately $436,000 for the six months ended June 30, 2020, compared to $318,000 for the same period in 2019, due to salary increases and a rise in employee numbers[69]. - The company recorded subcontracting expenses of approximately $5,402,000 for the six months ended June 30, 2020, a significant increase from $139,000 for the same period in 2019, mainly due to the introduction of SaaS business[70]. - Sales and marketing expenses surged to approximately $583,000 for the six months ended June 30, 2020, compared to $12,000 for the same period in 2019, reflecting advertising costs for promoting SaaS business in China[72]. - General and administrative expenses rose from approximately $765,000 for the six months ended June 30, 2019, to approximately $855,000 for the same period in 2020, driven by increased professional fees related to the development of SaaS business[73]. Future Outlook - The company plans to focus on expanding its market presence and developing new technologies to enhance its product offerings in the future[7]. - The company has not provided specific guidance for future performance but continues to focus on expanding its SaaS offerings and improving operational efficiency[24]. - The company continues to explore partnerships to diversify service types and customer base, ensuring the long-term stability of the SaaS division[65]. 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[96]. - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited condensed consolidated financial statements for the six months ending June 30, 2020[103].
NEXION TECH(08420) - 2020 - 中期财报