Financial Performance - For the six months ended June 30, 2021, the company reported revenue of $1,054,000, a decrease of 83.5% compared to $6,367,000 for the same period in 2020[5] - The company incurred a loss before tax of $1,081,000 for the six months ended June 30, 2021, compared to a loss of $2,146,000 for the same period in 2020, representing a 49.7% improvement[5] - Total comprehensive loss attributable to owners of the company for the six months ended June 30, 2021, was $1,101,000, a decrease of 51.1% from $2,250,000 in the same period of 2020[7] - The net loss attributable to owners for the six months ended June 30, 2021, was $(1,086,000), compared to $(2,150,000) for the same period in 2020, representing a 49.6% improvement[36] - The company reported a significant decline in revenue from China, which fell to $531,000 in 2021 from $5,708,000 in 2020, representing a decrease of 93.7%[27] - Total revenue for the six months ended June 30, 2021, was approximately $1,054,000, a significant decrease from $6,367,000 for the same period in 2020[79] Assets and Liabilities - As of June 30, 2021, the company's total assets amounted to $9,489,000, a slight decrease from $9,723,000 as of December 31, 2020[9] - The company's cash and cash equivalents decreased to $4,453,000 as of June 30, 2021, down from $5,191,000 at the end of 2020[9] - The company reported a net asset value of $8,271,000 as of June 30, 2021, compared to $9,372,000 at the end of 2020, reflecting a decline of 11.7%[9] - The company’s trade receivables as of June 30, 2021, amounted to $626,000, down 53.8% from $1,354,000 as of December 31, 2020[43] - The company’s inventory as of June 30, 2021, was $90,000, a significant increase from $1,000 at the end of 2020[9] - The company has committed to short-term lease agreements totaling $72,000 as of June 30, 2021, compared to $10,000 in December 2020[65] Cash Flow and Investments - For the six months ended June 30, 2021, the company reported a net cash inflow from operating activities of $175,000, compared to a cash outflow of $1,206,000 for the same period in 2020[12] - The company incurred a total loss before tax of $(1,081,000) for the six months ended June 30, 2021, compared to a loss of $(2,146,000) in the same period of 2020, indicating a 49.6% reduction in losses[24] - The company’s investment activities resulted in a net cash outflow of $(872,000) for the six months ended June 30, 2021, compared to $(67,000) in the same period of 2020[12] - The company reported a net cash outflow of $836,000 from the acquisition of Storm Front after accounting for cash acquired[68] Expenses - The company’s employee costs and related expenses for the six months ended June 30, 2021, were $388,000, down from $436,000 in the same period of 2020, indicating a reduction of 11.0%[5] - The company’s marketing expenses for the six months ended June 30, 2021, were $422,000, a decrease of 27.6% compared to $583,000 in the same period of 2020[5] - The company’s total depreciation and amortization expenses for the six months ended June 30, 2021, were $432,000, a decrease from $795,000 in the same period of 2020[24] - General and administrative expenses decreased from approximately $855,000 to about $709,000, mainly due to cost control measures reducing professional fees[85] Acquisitions and Goodwill - The acquisition of Storm Front Pte. Ltd. was completed on May 5, 2021, for a maximum consideration of SGD 3.5 million, with 50% paid in cash and 50% in shares[66] - The company reported a total of $2,455,000 in goodwill as of June 30, 2021, following the acquisition of a subsidiary[40] - The total consideration for the acquisition of Storm Front was $2.628 million, with $880,000 paid in cash and $1.748 million as contingent consideration[68] Corporate Governance and Shareholder Information - The board did not recommend the payment of an interim dividend for the six months ending June 30, 2021[96] - Major shareholders included Alpha Sense (BVI) with a 21.51% stake and XOX (Hong Kong) Limited with a 16.37% stake[106] - The company has complied with the applicable corporate governance code provisions, except for the deviation from code provision A.2.1, which states that the roles of chairman and CEO should be separated[109] Employee Information - The total employee cost for the six months ending June 30, 2021, was approximately $388,000, a decrease of about $48,000 compared to the same period in 2020[97] - The group had a total of 34 employees as of June 30, 2021, compared to 26 employees as of June 30, 2020[97] Market and Strategic Developments - The company plans to expand its cybersecurity services into Malaysia, with operations expected to commence in Q3 2021[73] - The company has restructured its internal resources to enhance its SaaS business development in China, reflecting a strategic pivot towards the growing domestic shared economy[70]
NEXION TECH(08420) - 2021 - 中期财报