Financial Performance - For the year ended December 31, 2022, the company's revenue decreased by approximately $1,521,000 or 21.9% to about $5,434,000 compared to $6,955,000 in 2021[13] - The company achieved a profit of approximately $205,000 for the year, an increase of $1,302,000 or 118.7% compared to a loss of approximately $1,097,000 in the previous year[13] - The annual loss reduced from approximately $3,080,000 for the year ended December 31, 2021, to about $1,160,000 for the year ended December 31, 2022, driven by improved performance in the network infrastructure, cybersecurity solutions, and SaaS segments[63] - Total revenue for the group was approximately $5,434,000 for the year ended December 31, 2022, down from approximately $6,955,000 in 2021, with network infrastructure solutions revenue decreasing to approximately $2,280,000 from $4,349,000[54] - The cost of goods sold decreased to approximately $3,726,000 for the year ended December 31, 2022, from approximately $4,642,000 in 2021, mainly due to reduced hardware purchases[55] - Employee costs and related expenses were approximately $1,263,000 for the year ended December 31, 2022, down from approximately $1,775,000 in 2021, attributed to reduced employee benefits and share-based payments[57] - General and administrative expenses decreased from approximately $1,450,000 for the year ended December 31, 2021, to about $981,000 for the year ended December 31, 2022, primarily due to cost control measures[62] Market Trends and Strategy - The global cybersecurity market is projected to grow from approximately $173.5 billion in 2022 to about $266.2 billion by 2027, with a compound annual growth rate (CAGR) of approximately 8.9%[14] - The company plans to strengthen its internal resources and investments in cybersecurity solutions in response to macro trends[14] - The company aims to continuously explore synergistic development opportunities and adapt its business strategies to enhance growth and maximize shareholder value[14] - The cybersecurity solutions business is expected to become a primary focus for the company in the coming years, driven by significant market opportunities in Southeast Asia, where cybersecurity spending is projected to grow from approximately $3.2 billion in 2021 to approximately $6.1 billion by 2026[50] - The company is actively monitoring risks related to rising interest rates, geopolitical tensions, and trade conflicts, while exploring synergistic development opportunities to enhance business growth[51] Leadership and Governance - Ong Gim Hai has been appointed as the CEO and Chairman since May 31, 2022, overseeing overall corporate strategy and daily operations[19] - The company has a diverse board with members holding significant experience in finance, law, and technology[26] - The board includes members with extensive backgrounds in accounting and tax consulting, enhancing financial oversight[29] - The company aims to leverage its board's diverse expertise to drive strategic growth and market expansion[26] - The board of directors consists of five members, including one executive director, one non-executive director, and three independent non-executive directors, ensuring a balanced governance structure[176] - The company has adopted the GEM Listing Rules and has confirmed compliance with the corporate governance code, except for a deviation regarding the separation of the roles of chairman and CEO[169][171] Employee and Workforce Management - The company emphasizes the importance of a harmonious work environment to retain capable employees and enhance morale through various employee activities[104] - Employee turnover rate for the year ended December 31, 2022, was approximately 35%, up from 25% in 2021[134] - The total number of suppliers decreased to 44 in 2022 from 68 in 2021, with significant reductions in Malaysia and Singapore[140] - The company had 23 employees as of December 31, 2022, down from 28 employees in 2021[89] - The gender distribution of employees in 2022 was 16 males and 7 females, compared to 12 males and 16 females in 2021[125] Environmental and Social Responsibility - The company has implemented various energy-saving measures to reduce emissions, including waste management and resource utilization strategies[107] - The total greenhouse gas emissions for the year ended December 31, 2022, amounted to 10,375 kg, an increase from 7,809 kg in 2021, primarily due to increased overseas travel as pandemic restrictions eased[113] - The company encourages employees to adopt environmentally friendly practices, such as double-sided printing and using biodegradable products[115] - The company has established a waste recycling program, significantly reducing paper usage and ensuring proper recycling of paper, aluminum cans, and plastic bottles[114] - The company actively engages in community investment and supports charitable organizations, reflecting its commitment to corporate social responsibility[150] Financial Commitments and Investments - Capital expenditure commitments amounted to approximately $4,332,000 as of December 31, 2022, an increase from about $1,569,000 in 2021[72] - The company completed the sale of Fortune Shoreline Limited for a total consideration of approximately $1,166,000 on May 18, 2022, allowing for the reallocation of financial resources to future investment opportunities[78] - The acquisition of Werkdone was completed with a maximum consideration of SGD 3,500,000 (approximately $2,628,000), with 50% paid in cash and 50% in shares, contingent on profit guarantees[73] Compliance and Risk Management - The company adopts a zero-tolerance policy towards bribery, extortion, fraud, and money laundering, ensuring compliance with relevant laws and internal policies[149] - The company has implemented a whistleblowing policy to encourage reporting of any suspected violations or misconduct[149] - The company has not been aware of any non-compliance with anti-corruption laws and regulations during the fiscal years ending December 31, 2022, and December 31, 2021[149]
NEXION TECH(08420) - 2022 - 年度财报