Business Impact and Challenges - The year 2020 posed unprecedented challenges for the company due to the COVID-19 pandemic, significantly impacting global economic activities and financial markets[17]. - The company's network infrastructure and cybersecurity solution businesses in Singapore experienced limited operational activities, leading to a substantial revenue impact[17]. - The company's SaaS business in China was relatively less affected by COVID-19, but it still faces long-term risks and challenges due to the pandemic and the US-China trade war[17]. - The military coup in Myanmar has impacted business operations, halting efforts to promote solutions to the overthrown government, but there is a significant demand for cybersecurity solutions as per the military government's requirements[22]. - Despite challenges from COVID-19, the Myanmar coup, and the US-China trade war, the company remains confident and competitive in the existing market due to its strengthened business strategies and developed infrastructure[22]. Strategic Initiatives and Developments - The company has shifted from being a principal to an agent in its SaaS business to reduce operational risks and provide greater flexibility to clients[17]. - The company enhanced its hardware and software capabilities, including internal R&D team improvements and technology acquisitions, to better respond to challenges and seize opportunities[18]. - The company implemented an engineer training program to improve certification levels and boost engineer morale[18]. - The company plans to explore business opportunities in Southeast Asia, particularly in the Philippines, Malaysia, and Thailand, while ensuring continuity in existing projects[22]. - NEXION plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share over the next two years[38]. - The management team highlighted a strategic focus on mergers and acquisitions, aiming to acquire at least two companies in the tech sector by the end of the fiscal year[38]. Financial Performance - NEXION TECHNOLOGIES LIMITED reported a significant increase in user data, with a growth rate of 25% year-over-year in active users[38]. - The company achieved a revenue of $50 million for the fiscal year, representing a 15% increase compared to the previous year[38]. - The company has set a performance guidance of 20% revenue growth for the next fiscal year, driven by new product launches and market expansion[38]. - NEXION's gross margin improved to 45%, up from 40% in the previous year, indicating better cost management and pricing strategies[38]. - The company reported a net profit of $7.5 million, reflecting a 10% increase from the prior year[38]. - The total revenue for the year ended December 31, 2020, was approximately $8,633,000, an increase from $5,815,000 in 2019, with SaaS business revenue rising to $7,504,000 from $2,452,000[66]. Operational Adjustments - The company is actively revising contract terms with clients to mitigate risks associated with COVID-19 and the US-China trade war, transitioning from a contractor to an agent role in its SaaS business[61]. - The company continues to engage with clients and explore infrastructure upgrade opportunities despite the challenges posed by the pandemic[60]. - The company has implemented an engineer training program to enhance certifications and boost morale among its engineers[60]. Governance and Compliance - The company has adopted the principles and code provisions of the GEM Listing Rules Appendix 15 to ensure good corporate governance practices[113]. - The board of directors consists of six members, including three executive directors and three independent non-executive directors, ensuring a balance of power and authority[121]. - The company has confirmed compliance with the required trading standards and code of conduct for all directors regarding securities transactions for the year ended December 31, 2020[118]. - The company has established a framework for assessing the suitability of candidates for board positions based on integrity, qualifications, and commitment[151]. - The company has adopted a dividend policy aimed at providing stable and sustainable returns to shareholders, taking into account financial conditions and future operational needs[158]. Risk Management - The company faces various risks, including strategic, personnel, legal, economic, political, and credit risks, and has implemented measures to mitigate these risks[187]. - Financial risk management policies, including credit risk, foreign exchange risk, and liquidity risk, are continuously executed by the board[189]. - The internal control system is designed to manage risks rather than eliminate them entirely[178]. Employee and Customer Relations - The company values its employees as key assets and provides competitive compensation, with regular performance evaluations and training programs to maintain a high-quality workforce[191]. - The company assesses customer feedback through various channels, utilizing business intelligence to understand customer preferences and needs, while ensuring competitive pricing to strengthen existing relationships[192]. - The company collaborates closely with suppliers to effectively meet customer demands, ensuring a fair and transparent bidding and procurement process[193].
NEXION TECH(08420) - 2020 - 年度财报