Financial Performance - For the fiscal year ending December 31, 2024, the total revenue of Nexion Technologies Limited increased by approximately HKD 2,502,000 or 19.7% to approximately HKD 15,190,000 compared to HKD 12,688,000 in the fiscal year 2023[15]. - Revenue from the cybersecurity solutions and IT software development segment improved significantly, rising by approximately HKD 3,746,000 or 39.4% to HKD 13,252,000 in fiscal year 2024 from approximately HKD 9,506,000 in fiscal year 2023[15]. - The group reported a significant revenue increase of approximately 39.4%, from about HKD 9,506,000 in FY2023 to HKD 13,252,000 in FY2024, primarily due to strategic network security projects and growth in the VMS customer base[40]. - In fiscal year 2024, the group reported total revenue of approximately HKD 15,190,000, an increase from HKD 12,688,000 in fiscal year 2023, driven primarily by network security solutions and IT software development business[51]. - The annual loss increased from approximately HKD 13,415,000 in FY2023 to about HKD 15,517,000 in FY2024, primarily due to a decrease in adjusted EBITDA from the SaaS segment and increased expenses in the cybersecurity solutions and IT software development segments[61]. Business Development and Strategy - The company successfully launched its first large-scale multi-center Senior Care Management System (SCMS) project during the fiscal year 2024, indicating growth in its community care and healthcare sector[15]. - The company has rebranded its business segment from "Cybersecurity Solutions" to "Cybersecurity Solutions and IT Software Development" to clarify the scope of services and align with its strategic focus[15]. - The customer base and market share are expected to expand due to the growth of the Visitor Management System (VMS) and the implementation of SCMS[15]. - Future resource allocation will prioritize the development of cybersecurity solutions and IT software, particularly VMS and SCMC, to achieve positive operational performance[17]. - The group aims to expand its operations into the Asia-Pacific region through digital transformation initiatives for Singapore clients[39]. Operational Performance - The adjusted EBITDA for the network security solutions and IT software development segments was a loss of approximately HKD 1,350,000 in FY2024, an improvement from a loss of HKD 4,446,000 in FY2023[40]. - The SaaS division recorded an adjusted EBITDA loss of approximately HKD 7,291,000 in fiscal year 2024, compared to a profit of approximately HKD 1,186,000 in fiscal year 2023, mainly due to intense market competition and a decrease in service fees[46]. - The cost of goods sold increased from approximately HKD 5,074,000 in fiscal year 2023 to approximately HKD 6,736,000 in fiscal year 2024, attributed to a higher volume of hardware component purchases[52]. - Employee costs and related expenses rose to approximately HKD 6,838,000 in fiscal year 2024 from approximately HKD 5,696,000 in fiscal year 2023, due to higher salaries for newly hired employees and existing staff[55]. Environmental, Social, and Governance (ESG) Initiatives - The group is actively working to ensure compliance with environmental, social, and governance standards as part of its commitment to sustainable development[37]. - The total greenhouse gas emissions for fiscal year 2024 were 4,572 kg, a decrease of 54.5% from 10,074 kg in fiscal year 2023[98]. - The company has implemented energy-saving measures to reduce emissions, including waste management and resource utilization strategies[93]. - The company emphasizes the importance of fulfilling its social responsibilities as part of its sustainable development goals[83]. - The company has established a transparent system and reporting channels to ensure fair labor practices[120]. Corporate Governance - The roles of the Chairman and CEO are not separated, which deviates from the corporate governance code, but the board believes this arrangement serves the best interests of the group[144]. - The company has adhered to the principles of the corporate governance code, with specific exceptions noted in the report[143]. - The board consists of five members, including one executive director, one non-executive director, and three independent non-executive directors, ensuring diverse governance[149]. - The company has established various board committees to oversee specific responsibilities, enhancing governance and operational efficiency[151]. - The independent non-executive directors have confirmed their independence annually, ensuring compliance with GEM listing rules[157]. Employee Management and Development - The employee turnover rate for the fiscal year 2024 is approximately 21%, compared to 17% in fiscal year 2023[114]. - The percentage of trained employees decreased to 42% in fiscal year 2024 from 53% in fiscal year 2023[119]. - Total training hours for fiscal year 2024 were 102 hours, significantly lower than 837 hours in fiscal year 2023[119]. - The company has implemented training policies to enhance employee knowledge and skills, with a focus on gender and employee type distribution in training participation[137]. - The company encourages continuous learning and participation in external seminars and training for employees[118]. Financial Position and Assets - As of December 31, 2024, the group had current assets of approximately HKD 19,989,000, down from HKD 32,926,000 in FY2023, with cash and bank balances of about HKD 10,613,000[62]. - The group has no bank borrowings or debts as of December 31, 2024, with total assets of approximately HKD 25,897,000 and total liabilities of about HKD 9,597,000[62]. - The group completed the sale of its subsidiary Netsis Group for a total consideration of approximately USD 250,000 (about HKD 1,950,000), with net proceeds expected to be around USD 247,500 (about HKD 1,911,000)[70]. - The group recognized an impairment loss of approximately HKD 3,859,000 for intangible assets in fiscal year 2024, compared to no impairment in fiscal year 2023[56]. - The company has not reported any violations of laws regarding child labor or forced labor in both the 2024 and 2023 fiscal years[120].
NEXION TECH(08420) - 2024 - 年度业绩