Financial Performance - For the nine months ended September 30, 2020, Nexion Technologies reported revenue of $8.281 million, a significant increase of 137.5% compared to $3.494 million in the same period of 2019[6] - The company incurred a loss before tax of $2.833 million for the nine months, compared to a loss of $559,000 in the same period last year, reflecting ongoing challenges[6] - The basic and diluted loss per share for the nine months was $0.37, compared to a loss of $0.09 in the same period of 2019[7] - Total comprehensive loss attributable to owners of the company for the nine months was $2.846 million, compared to a loss of $695,000 in the previous year[7] - For the nine months ended September 30, 2020, the company reported a total loss of $2.834 million, compared to a loss of $559,000 for the same period in 2019[20] - The adjusted EBITDA for the nine months ended September 30, 2020, was $(538,000), a significant decline from $1.377 million in the same period of 2019[22] - The group recorded a loss of approximately $2,834,000 for the nine months ended September 30, 2020, an increase from a loss of about $559,000 for the same period in 2019, primarily due to reduced adjusted EBITDA and increased depreciation and amortization from internal R&D efforts[51] Revenue Breakdown - Revenue from external customers for the nine months ended September 30, 2020, was $8.281 million, a decrease from $3.494 million in the same period of 2019[20] - The network infrastructure solutions segment generated revenue of $625,000 for the nine months ended September 30, 2020, down from $1.758 million in the same period of 2019[20] - The network security solutions segment reported revenue of $220,000 for the nine months ended September 30, 2020, compared to $1.736 million in the same period of 2019[20] - The SaaS segment generated revenue of $7.436 million for the nine months ended September 30, 2020, with no revenue reported for the same period in 2019[20] - The company reported a decrease in revenue from network infrastructure solutions to $363,000 for the nine months ended September 30, 2020, down from $1,457,000 in 2019[25] - The network infrastructure solutions division reported a loss of approximately $18,000 for the nine months ended September 30, 2020, compared to a profit of approximately $420,000 for the same period in 2019[38] - The network security solutions division reported a loss of approximately $396,000 for the nine months ended September 30, 2020, compared to a profit of approximately $957,000 for the same period in 2019[38] Cost Management - The cost of goods sold for the nine months was $348,000, down 59.7% from $862,000 in the previous year, indicating improved cost management[6] - The total employee costs and related expenses increased to $658,000, up 30.2% from $505,000 in the same period last year, indicating a rise in workforce or compensation[6] - The company incurred subcontracting costs of approximately $7,091,000 for the nine months ended September 30, 2020, significantly up from $364,000 for the same period in 2019, primarily due to the introduction of the SaaS business[47] - General and administrative expenses decreased to approximately $1,487,000 for the nine months ended September 30, 2020, down from $1,662,000 for the same period in 2019, due to cost control measures[50] Equity and Shareholder Information - The total equity attributable to owners of the company decreased to $5.752 million as of September 30, 2020, down from $6.311 million at the beginning of the year[9] - The company’s total equity attributable to equity holders decreased to $12.368 million as of September 30, 2020, from $15.145 million at the beginning of the year[10] - As of September 30, 2020, the company's issued share capital was approximately $923,000, divided into 720,000,000 shares with a par value of HK$0.01 each[52] - The company’s major shareholder, Mr. Fu, holds 272,686,500 shares, representing approximately 37.9% of the issued share capital[69] - As of September 30, 2020, Alpha Sense (BVI) holds 272,686,500 shares, representing approximately 37.9% of the issued share capital[72] Strategic Developments - The company established an office in Shanghai, China, to focus on its SaaS business, capitalizing on the rapid growth of the sharing economy in the region[35] - The company has diversified its ICT services and is now a provider of network infrastructure solutions in Southeast Asia[35] - The company has developed its capabilities in network security solutions and SaaS systems through its R&D efforts[35] - The company entered into a software copyright transfer agreement valued at $1,700,000 for the transfer of 15 software titles, which will support its network infrastructure and security solutions[41] - The company is actively reallocating internal resources to adapt to the partnership with XOX Bhd, aiming to enhance competitiveness and expand service offerings[36] - A temporary agreement was established on September 17, 2020, with XOX to strengthen competitive capabilities and expand service offerings[60] Governance and Compliance - The company has complied with the corporate governance code, except for the deviation from code provision A.2.1 regarding the separation of the roles of Chairman and CEO[75] - No interests in competing businesses were reported by the company's major shareholders, directors, or their associates as of September 30, 2020[76] - The company has adopted a code of conduct for securities trading by directors, with no known violations reported for the nine months ended September 30, 2020[79] - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited consolidated financial statements for the nine months ended September 30, 2020[83] - The board of directors confirmed that the report's information is accurate and complete, with no misleading or fraudulent elements[84] Dividend Policy - The company did not recommend any dividend payment for the nine months ended September 30, 2020, consistent with no dividends declared for the same period in 2019[32] - The board did not recommend the payment of dividends for the nine months ended September 30, 2020[66]
NEXION TECH(08420) - 2020 Q3 - 季度财报