Financial Performance - Total revenue for the fiscal year 2024 increased by approximately HKD 2,502,000 or 19.7% to about HKD 15,190,000, compared to HKD 12,688,000 in fiscal year 2023[12]. - 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, driven by strategic cybersecurity projects and growth in the VMS customer base[12]. - The group reported a significant increase in revenue from the cybersecurity solutions and IT software development segment, rising from approximately HKD 9,506,000 in FY2023 to HKD 13,252,000 in FY2024, representing a growth of 39.4%[37]. - The total revenue for the fiscal year 2024 was approximately HKD 15,190,000, an increase from HKD 12,688,000 in fiscal year 2023, with cybersecurity solutions and IT software development contributing approximately HKD 13,252,000 and SaaS business generating about HKD 1,938,000[48]. - 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[58]. Strategic Initiatives - The company plans to allocate more internal resources to develop cybersecurity solutions and IT software development, particularly in VMS and SCMC, to achieve positive operating performance[14]. - The company aims to explore synergistic development opportunities and adapt business strategies flexibly according to market conditions to promote growth and maximize shareholder value[14]. - The company is focused on expanding its market presence in Southeast Asia, leveraging the expertise of its board members[20]. - Future strategies may include exploring mergers and acquisitions to enhance growth opportunities in the technology sector[22]. - The company is committed to developing new products and technologies to stay competitive in the market[27]. Governance and Management - The company has appointed several independent non-executive directors with extensive backgrounds in finance and law, enhancing governance and oversight[29]. - The management team includes individuals with significant experience in technology, finance, and corporate governance, contributing to strategic decision-making[26]. - The board consists of five members, including one executive director, one non-executive director, and three independent non-executive directors, ensuring a balance of power and independence[146]. - The company has established various board committees with specific responsibilities outlined in the report, enhancing governance and oversight[148]. - The independent non-executive directors have confirmed their independence annually, in compliance with GEM listing rules[154]. Operational Performance - The adjusted EBITDA for the cybersecurity solutions and IT software development segment was a loss of approximately HKD 1,350,000 in FY2024, compared to a loss of HKD 4,446,000 in FY2023, indicating an improvement in performance[37]. - The SaaS segment reported an adjusted EBITDA loss of approximately HKD 7,291,000 in FY2024, a decline from a profit of HKD 1,186,000 in FY2023, primarily due to increased market competition and a reduction in service fees[43]. - The cost of goods sold increased from approximately HKD 5,074,000 in fiscal year 2023 to about HKD 6,736,000 in fiscal year 2024, primarily due to an increase in the number of hardware components purchased[49]. - Service costs rose significantly from approximately HKD 541,000 in fiscal year 2023 to about HKD 4,716,000 in fiscal year 2024, mainly due to increased subcontracting fees and hardware rental costs related to cybersecurity projects[50]. - Employee costs and related expenses increased to approximately HKD 6,838,000 in fiscal year 2024 from HKD 5,696,000 in fiscal year 2023, attributed to higher salaries for newly hired employees and existing staff[52]. Environmental, Social, and Governance (ESG) Initiatives - The company emphasizes its commitment to environmental, social, and governance (ESG) performance, aligning with GEM listing rules and focusing on sustainable development[80]. - The company has implemented energy-saving measures to reduce emissions from its operations in Malaysia, Singapore, and China, adhering to relevant environmental laws and regulations[86]. - Total greenhouse gas emissions for FY2024 are 4,572 kg, a reduction of 54.5% from 10,074 kg in FY2023[95]. - The company aims to enhance its operational efficiency and profitability through the adoption of advanced and environmentally friendly technologies[86]. - The company encourages stakeholder feedback on its ESG policies and performance, promoting transparency and engagement[84]. Employee and Training Metrics - The employee count as of December 31, 2024, is 16, down from 22 in 2023, indicating a reduction of approximately 27.3%[107]. - The employee turnover rate for the fiscal year 2024 is approximately 21%, an increase from 17% in 2023[111]. - The percentage of employees receiving training decreased to 42% in 2024 from 53% in 2023[116]. - Total training hours in 2024 were 102, significantly lower than 837 hours in 2023[116]. - The average training hours per employee dropped to 5 hours in 2024 from 38 hours in 2023[116]. Compliance and Risk Management - The company has adopted a zero-tolerance policy towards bribery, extortion, fraud, and money laundering, ensuring compliance with relevant anti-corruption laws[192]. - The board and audit committee have reviewed the effectiveness of the risk management and internal control systems for the fiscal year 2024, finding them to be effective and adequate[188]. - The independent internal control consultant has not identified any significant control deficiencies during the annual review of the internal control system[188]. - The company has established written guidelines to regulate employees or directors who may have access to insider information, ensuring proper handling and disclosure of such information[188]. - The company has implemented a code of conduct applicable to employees and directors to ensure compliance with legal and regulatory requirements[185].
NEXION TECH(08420) - 2024 - 年度财报