Financial Performance - For the three months ended March 31, 2023, Nexion Technologies Limited reported revenue of $446,000, a decrease of 41% compared to $758,000 in the same period of 2022[6] - The cost of goods sold for the same period was $138,000, slightly down from $143,000 year-over-year[6] - Employee costs and related expenses decreased to $201,000 from $293,000, reflecting a reduction of 31.5%[6] - The company recorded a loss before tax of $205,000, compared to a loss of $190,000 in the prior year, indicating a 7.9% increase in losses[6] - Total comprehensive loss for the period was $180,000, compared to a loss of $172,000 in the same quarter of 2022, representing an increase of 4.7%[7] - Basic and diluted loss per share for the period was $0.03, unchanged from the same period last year[7] - Adjusted EBITDA for the three months ended March 31, 2023, was $92,000, down 33.8% from $139,000 in the same period of 2022[23] - The company incurred depreciation and amortization expenses of $167,000 for the three months ended March 31, 2023, compared to $214,000 in the same period of 2022[23] - The adjusted EBITDA for the SaaS segment was a profit of approximately $20,000, compared to a profit of about $105,000 for the same period last year, indicating a decrease of about 81.0%[47] - General and administrative expenses decreased significantly from approximately $342,000 to about $104,000, a reduction of about 69.6%[55] Revenue Breakdown - Revenue from the Network Infrastructure Solutions segment was $84,000, a decline of 49.1% from $165,000 in the previous year[21] - Revenue from the Cybersecurity Solutions segment was $245,000, down 43.1% from $431,000 in the same period of 2022[21] - Revenue from SaaS was $117,000, a decrease of 27.8% compared to $162,000 in the same period last year[21] - Revenue from Malaysia increased to $125,000 in Q1 2023 from $73,000 in Q1 2022, representing a growth of 71.2%[25] - Revenue from Singapore decreased significantly to $124,000 in Q1 2023 from $364,000 in Q1 2022, a decline of 65.9%[25] - For the three months ending March 31, 2023, the total revenue was approximately $446,000, a decrease of about 41.1% compared to $758,000 for the same period in 2022[49] - The revenue from the network infrastructure solutions business was approximately $84,000, down from $165,000, reflecting a decrease of about 49.1%[49] - The revenue from the cybersecurity solutions business was approximately $245,000, down from $431,000, representing a decrease of about 43.1%[49] - The SaaS business generated revenue of approximately $117,000, a decrease from $162,000, which is a decline of about 27.8%[49] Equity and Investments - As of March 31, 2023, total equity attributable to equity holders was $5,232,000, a decrease from $6,456,000 at the beginning of the year[9] - The acquisition of WerkDone Pte. Ltd. was completed for a maximum consideration of 3,500,000 SGD (approximately 2,628,000 USD), with 50% paid in cash and 50% in shares[36] - The first payment of 1,167,000 SGD (approximately 880,000 USD) was made in cash upon completion of the acquisition[37] - Performance-based payments totaling 2,333,000 SGD (approximately 1,723,000 USD) are contingent on achieving profit guarantees of at least 500,000 SGD (approximately 375,000 USD) for specified periods[39] - The company had no significant investments, acquisitions, or disposals during the reporting period[62] Corporate Governance - Alpha Sense Investments Limited holds 154,838,000 shares, representing 20.93% of the issued share capital[68] - XOX (Hong Kong) Limited owns 117,848,500 shares, accounting for 15.93% of the issued share capital[68] - UBS Group AG has a beneficial ownership of 39,465,000 shares, which is 5.33% of the issued share capital[68] - The company has complied with the applicable corporate governance code provisions, except for the deviation regarding the roles of Chairman and CEO[73] - No share options were granted, cancelled, exercised, or lapsed under the share option scheme during the three months ended March 31, 2023[78] - The audit committee, consisting of three independent non-executive directors, has reviewed the first quarter consolidated financial statements[81] - The company has not purchased, sold, or redeemed any of its listed securities during the three months ended March 31, 2023[75] - There are no known interests held by directors or major shareholders in any competing businesses as of March 31, 2023[74] - The company has adopted a code of conduct for securities trading by directors, with no known violations during the reporting period[77] Strategic Focus - Nexion Technologies Limited continues to focus on providing network infrastructure solutions and cybersecurity services, with operations in Singapore and China[11] - The company aims to focus on expanding its cybersecurity solutions business, which is expected to be a major area of growth in the coming years[43] - Southeast Asia's cybersecurity spending exceeded approximately 3.2 billion USD in 2021 and is projected to grow by about 14% to reach approximately 6.1 billion USD by 2026[43] - The company has reallocated internal resources and adjusted its business strategy to enhance its cybersecurity solutions and digital transformation services[43] - The company is committed to maintaining its accounting policies consistent with those used in the preparation of the 2022 audited financial statements[16]
NEXION TECH(08420) - 2023 Q1 - 季度财报