Financial Performance - For the three months ended March 31, 2021, Nexion Technologies Limited reported revenue of $445,000, a decrease of 84.5% compared to $2,864,000 for the same period in 2020[5]. - Other income for the same period was $21,000, down 79% from $100,000 in the previous year[5]. - The cost of goods sold was $74,000, a reduction of 59.9% from $184,000 year-on-year[5]. - The total loss for the period was $578,000, an improvement of 45.3% compared to a loss of $1,059,000 in the prior year[5]. - Basic and diluted loss per share for the period was $0.08, compared to $0.14 in the same quarter of 2020[6]. - The total comprehensive loss for the period was $605,000, down 51.3% from $1,242,000 in the previous year[6]. - The adjusted EBITDA for the three months ended March 31, 2021, was $(166,000), improving from $(304,000) in the same period of 2020[22]. - The company reported a net loss of $(578,000) for the three months ended March 31, 2021, compared to a net loss of $(1,059,000) for the same period in 2020[22]. - The SaaS segment reported an adjusted EBITDA loss of approximately $80,000 for the three months ended March 31, 2021, an improvement from a loss of approximately $252,000 for the same period in 2020[37]. - The network infrastructure solutions segment reported an adjusted EBITDA loss of approximately $117,000, compared to a profit of approximately $31,000 for the same period in 2020[35]. Revenue Breakdown - The revenue breakdown for the three months ended March 31, 2021, included $148,000 from network infrastructure solutions, $40,000 from network security solutions, and $257,000 from SaaS[20]. - The geographical revenue distribution for the three months ended March 31, 2021, showed $257,000 from China, a significant decrease from $2,491,000 in the same period of 2020[25]. - For the three months ended March 31, 2021, total revenue from external customers was $445,000, a decrease of 84.5% compared to $2,864,000 for the same period in 2020[20]. - The total revenue for the three months ended March 31, 2021, was approximately $445,000, a significant decrease from approximately $2,864,000 for the same period in 2020[40]. Cost Management - The company incurred depreciation and amortization expenses of $220,000 for the three months ended March 31, 2021, down from $393,000 in the same period of 2020[22]. - The cost of goods sold decreased from approximately $184,000 for the three months ended March 31, 2020, to approximately $74,000 for the same period in 2021, primarily due to a reduction in hardware component purchases[41]. - Employee costs and related expenses decreased to approximately $164,000 for the three months ended March 31, 2021, from approximately $203,000 for the same period in 2020, mainly due to a reduction in the average number of higher-paid employees[42]. - General and administrative expenses decreased from approximately $511,000 for the three months ended March 31, 2020, to approximately $339,000 for the same period in 2021, mainly due to cost control measures[46]. 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[66][67]. - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited consolidated financial statements for the three months ended March 31, 2021, and found them to comply with applicable accounting standards[73]. - The board of directors includes three executive directors and three independent non-executive directors, all of whom confirm the accuracy and completeness of the report[75]. Strategic Focus - The company continues to focus on providing network infrastructure solutions, cybersecurity solutions, and Software as a Service (SaaS)[10]. - The company has diversified its ICT services and is now a regional provider of network infrastructure and security solutions in Southeast Asia[32]. - The company has established an office in Shanghai, China, to focus on the rapidly growing SaaS business since 2019[32]. - The company is focusing on ensuring the continuity of ongoing projects and maintenance work in the network infrastructure and security solutions segments amid ongoing challenges[36]. Acquisitions and Investments - The company completed the acquisition of Storm Front Pte. Ltd on May 5, 2021, which is expected to enhance its existing business segments and expand into the digital transformation and smart technology sectors[33]. - The company completed the acquisition of 100% of Strom Front for a maximum consideration of SGD 3,500,000, with 50% paid in cash and 50% in shares, which represents approximately 2.75% of the existing issued share capital[58]. - The highest number of shares to be issued as consideration for the acquisition is 19,800,000, which will dilute the existing share capital by approximately 2.68%[58]. Shareholder Information - Major shareholders include Alpha Sense (BVI) holding 154,838,000 shares (21.51% of issued share capital) and XOX (Hong Kong) Limited holding 117,848,500 shares (16.37% of issued share capital)[63]. - As of March 31, 2021, the company had 23 employees, down from 25 employees as of March 31, 2020[57]. - As of March 31, 2021, the total employee cost was approximately $164,000, a decrease of about $39,000 compared to $203,000 for the same period in 2020[57]. Compliance and Regulatory - The company has not adopted any new or revised International Financial Reporting Standards that would have a significant impact on its financial performance for the current period[16]. - No significant events requiring disclosure occurred between March 31, 2021, and the report date[58]. - The company did not purchase, sell, or redeem any of its listed securities during the three months ended March 31, 2021[69]. - The company has no assets pledged as of March 31, 2021[55]. - There were no interests held by directors or major shareholders in any competing businesses as of March 31, 2021[68]. - The company has adopted a code of conduct for directors regarding securities trading, which complies with GEM Listing Rules[70]. - No stock options were granted, canceled, exercised, or expired under the stock option plan during the three months ended March 31, 2021[72].
NEXION TECH(08420) - 2021 Q1 - 季度财报