Financial Performance - For the nine months ended September 30, 2023, the company reported total revenue of $1,627,000, a decrease of 66.8% compared to $4,898,000 for the same period in 2022[5]. - The cost of goods sold for the nine months was $636,000, down 79.7% from $3,133,000 in the previous year[5]. - The company incurred a loss before tax of $756,000 for the nine months, compared to a loss of $943,000 in the same period last year, representing a 19.8% improvement[5]. - The total comprehensive loss for the nine months was $837,000, a reduction of 22.0% from $1,073,000 in the prior year[6]. - Basic and diluted loss per share for the nine months was $0.11, an improvement from $0.14 in the same period of 2022[6]. - The company reported a net loss of $753,000 for the nine months ended September 30, 2023, compared to a net loss of $949,000 for the same period in 2022[24]. - For the nine months ended September 30, 2023, the company reported a loss attributable to owners of $801,000, compared to a loss of $1,015,000 for the same period in 2022, representing a 21% improvement[32]. - The net loss for the nine months ended September 30, 2023, was approximately $753,000, down from approximately $949,000 for the same period in 2022, reflecting improvements in the performance of reportable segments[59]. Revenue Breakdown - Revenue from the Network Infrastructure Solutions segment was $461,000, while the Network Security Solutions segment generated $813,000, and the SaaS segment contributed $353,000 for the nine months ended September 30, 2023[22]. - Revenue from Singapore decreased significantly to $477,000 in 2023 from $2,067,000 in 2022, reflecting a decline of 76.9%[26]. - The network infrastructure solutions segment generated revenue of approximately $461,000, down from $2,233,000 in the previous year, primarily due to a decrease in the scale of new projects completed[51]. - The network security solutions segment reported revenue of approximately $813,000, compared to $2,240,000 in the prior year, mainly due to project delays[51]. - The SaaS segment achieved a revenue of approximately $353,000, down from $425,000 in the same period last year, attributed to a general reduction in sales activities[51]. - The company generated $238,000 in revenue from Cyprus for the nine months ended September 30, 2023, which was not reported in the previous year[26]. Cost Management - The company continues to focus on cost management, with employee costs reduced to $603,000 from $1,085,000 year-over-year, a decrease of 44.4%[5]. - General and administrative expenses decreased from approximately $1,025,000 for the nine months ended September 30, 2022, to approximately $552,000 for the nine months ended September 30, 2023, attributed to cost control measures[57]. - Subcontracting costs for cybersecurity solutions and SaaS business were approximately $76,000 for the nine months ended September 30, 2023, down from approximately $122,000 for the same period in 2022[55]. - Sales and marketing expenses were approximately $23,000 for the nine months ended September 30, 2023, compared to approximately $27,000 for the same period in 2022, showing no significant fluctuation[56]. - The cost of goods sold decreased from approximately $3,133,000 for the nine months ended September 30, 2022, to approximately $636,000 for the nine months ended September 30, 2023, primarily due to a reduction in hardware component purchases[53]. Equity and Shareholder Information - As of September 30, 2023, total equity attributable to the company's equity holders was $4,560,000, down from $5,427,000 at the beginning of the year[10]. - The weighted average number of ordinary shares for the nine months ended September 30, 2023, was 739,800,000 shares, slightly up from 724,424,000 shares in the same period of 2022[32]. - The company did not recommend any dividend payment for the nine months ended September 30, 2023, consistent with the previous year[33]. - The company did not recommend the payment of dividends for the nine months ended September 30, 2023, consistent with the previous period[66]. Strategic Focus and Developments - The company has not disclosed any new product developments or market expansion strategies during the reporting period[5][6]. - There were no significant mergers or acquisitions reported in the current financial period[5][6]. - The company has identified significant market opportunities in Southeast Asia's cybersecurity sector, with spending expected to grow from approximately $3.2 billion in 2021 to about $6.1 billion by 2026, representing a growth rate of approximately 14%[45]. - The company plans to enhance its business and expand into the enterprise digital transformation and smart technology sectors following recent acquisitions[44]. - The company has developed a comprehensive elderly care management system, expanding its offerings beyond access management solutions, which is expected to increase its market share in the digital transformation and smart technology sectors[48]. Compliance and Governance - 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 Chairman and CEO should be separated[75]. - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited consolidated financial statements for the nine months ended September 30, 2023, and found them to comply with applicable accounting standards[81]. Taxation - The company has established tax exemptions for entities in the Cayman Islands and British Virgin Islands, resulting in no tax provisions for Hong Kong profits for the nine months ended September 30, 2023[30]. - The estimated corporate tax rate for Singapore is 17%, with certain exemptions applicable for the first SGD 10,000 of taxable income[31]. - The company reported no current tax expenses for the nine months ended September 30, 2023, in relation to its operations in China, Malaysia, and Singapore[30].
NEXION TECH(08420) - 2023 Q3 - 季度财报