Financial Performance - For the six months ended June 30, 2023, the company reported revenue of $1,156,000, a decrease of 72.9% compared to $4,261,000 for the same period in 2022[4]. - The company incurred a loss before tax of $480,000 for the six months ended June 30, 2023, compared to a loss of $458,000 for the same period in 2022, indicating a slight increase in losses[4]. - Total comprehensive loss for the six months ended June 30, 2023, was $565,000, compared to $374,000 for the same period in 2022, reflecting a 51.1% increase in losses[6]. - For the six months ended June 30, 2023, the company reported a net loss of $501,000, compared to a net loss of $482,000 for the same period in 2022, indicating a 4% increase in losses year-over-year[8]. - The company reported a basic and diluted loss per share of $0.07 for the six months ended June 30, 2023, unchanged from the same period in 2022[6]. Assets and Liabilities - As of June 30, 2023, the company's total assets amounted to $4,894,000, a decrease from $5,374,000 as of December 31, 2022, representing a decline of 8.9%[7]. - The company's net asset value as of June 30, 2023, was $4,882,000, down from $5,447,000 at the end of 2022, indicating a decrease of 10.4%[7]. - The company’s total liabilities as of June 30, 2023, were $1,518,000, down from $1,718,000 at the end of 2022, indicating an 11.6% reduction[7]. - The company’s inventory increased significantly to $707,000 as of June 30, 2023, compared to $30,000 at the end of 2022, representing a substantial increase of 2,256.7%[7]. Cash Flow and Investments - The company’s cash flow from operating activities was a net outflow of $48,000, significantly improved from a net outflow of $2,803,000 in the previous year, representing an 83% reduction in cash used[9]. - The company’s investment activities resulted in a net cash outflow of $73,000, contrasting with a net cash inflow of $1,126,000 in the same period last year[9]. - The company’s financing activities resulted in a net cash outflow of $34,000, slightly improved from a net outflow of $39,000 in the previous year[9]. Revenue Segmentation - Revenue from the Network Infrastructure segment was $382 million, down 81.6% from $2,073 million in the previous year[20]. - Revenue from the Cybersecurity segment was $555 million, a decrease of 71.5% compared to $1,945 million in the same period last year[20]. - The SaaS segment generated $219 million in revenue, down 9.9% from $243 million in the same period of 2022[20]. Operational Changes and Strategy - The company continues to focus on network infrastructure solutions, cybersecurity solutions, and Software as a Service (SaaS) offerings as part of its core business strategy[10]. - The company has identified a need for market expansion and new product development to address declining revenues in key segments[24]. - The company is exploring strategic acquisitions to enhance its market position and diversify its offerings[24]. - The company anticipates that the network security solutions business will become a major focus in the coming years, driven by the growing demand for digital transformation and smart technology solutions[68]. - The company has reallocated internal resources and adjusted its business strategy to focus on developing its network security solutions business and expanding into the enterprise digital transformation sector[68]. Governance and Compliance - The company has complied with the applicable corporate governance code provisions, except for the deviation from code provision C.2.1, which states that the roles of the chairman and CEO should be separated[105]. - The audit committee, consisting of three independent non-executive directors, has reviewed the interim consolidated financial statements and found them to comply with applicable accounting standards[112]. - The board of directors includes one executive director, one non-executive director, and three independent non-executive directors as of the report date[113].
NEXION TECH(08420) - 2023 - 中期财报