Financial Performance - For the fiscal year ending December 31, 2023, the company reported a revenue decrease of approximately $1,527,000 or 48.4%, totaling around $1,627,000 compared to $3,154,000 in 2022[12]. - Total revenue for the year ended December 31, 2023, was approximately $1,627,000, a decrease from $3,154,000 in 2022, with cybersecurity solutions generating $1,219,000 and SaaS business generating $408,000[45]. - The annual loss increased to approximately $1,720,000 in 2023 from $1,160,000 in 2022, primarily due to decreased performance in the cybersecurity solutions segment[57]. - The network infrastructure solutions segment reported an adjusted EBITDA profit of approximately $138,000 for the year ended December 31, 2023, compared to $36,000 in 2022, primarily due to higher-margin project completions and cost control[38]. - The network security solutions segment reported an adjusted EBITDA loss of approximately $570,000 for the year ended December 31, 2023, down from a profit of $17,000 in 2022, mainly due to inventory write-downs of about $414,000 and goodwill impairment losses of approximately $355,000 related to the acquisition of WerkDone[38]. - The SaaS segment maintained a stable adjusted EBITDA profit of approximately $152,000 for both the years ended December 31, 2023, and 2022[42]. Strategic Focus and Market Opportunities - The company is focusing on developing its cybersecurity solutions and expanding into the digital transformation and smart technology sectors, responding to the global trend of aging populations[11]. - The global cybersecurity market is projected to grow from approximately $173.5 billion in 2022 to about $266 billion by 2027, with a compound annual growth rate (CAGR) of 8.9%[13]. - The company plans to enhance its internal resources and investments in cybersecurity solutions to become a leader in the Southeast Asian market[13]. - The company aims to expand its digital transformation and smart technology market share in the elder care management system and smart healthcare system sectors, leveraging its visitor management system[39]. - The company plans to develop its visitor management system into a comprehensive elder care management system and smart healthcare system, addressing the growing demand in Singapore, one of the fastest aging populations globally[44]. - The company is committed to providing high-quality cybersecurity solutions to meet the evolving demands of the vibrant and growing technology environment in Southeast Asia[43]. Governance and Leadership - The company has appointed several independent non-executive directors with extensive backgrounds in finance and law, enhancing its governance structure[27][28]. - The management team includes professionals with significant experience in various sectors, including technology, finance, and law, contributing to strategic decision-making[30]. - The financial performance and strategic direction of the company are supported by a diverse and experienced leadership team[26][30]. - The board's composition reflects a commitment to strong corporate governance and accountability, with members holding key positions in various committees[28]. - The company emphasizes the importance of innovation and flexibility in its business strategies to achieve strong performance[15]. Environmental and Social Responsibility - The company emphasizes compliance with environmental laws in Malaysia, Singapore, and China, including the Environmental Protection Act and the Air Pollution Prevention and Control Law[90]. - The company aims to enhance its environmental performance by adopting standardized methods for calculating key performance indicators[83]. - The company is committed to sustainable development through its network infrastructure solutions, cybersecurity services, and SaaS offerings[89]. - Stakeholder engagement is prioritized to identify key environmental, social, and governance issues for continuous improvement[85]. - The company has implemented energy-saving measures to reduce emissions from its operations in Malaysia, Singapore, and China[89]. - The company encourages feedback from stakeholders regarding its environmental, social, and governance policies and performance[82]. Employee and Workplace Policies - The company has maintained a discrimination-free workplace, ensuring equal employment opportunities regardless of race, nationality, age, gender, religion, or disability[107]. - The company has a performance-based compensation policy, conducting annual performance evaluations for all employees[108]. - Employee turnover rate for the year ended December 31, 2023, is approximately 17%, down from 35% in 2022[119]. - Percentage of trained employees increased to 53% in 2023 from 43% in 2022[121]. - Total training hours increased significantly to 837 hours in 2023 from 190 hours in 2022[121]. - Average training hours per employee rose to 38 hours in 2023 from 17 hours in 2022[121]. Corporate Governance - 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[161]. - The company held a total of eight board meetings during the fiscal year ending December 31, 2023, with full attendance from all directors[168]. - The company has adopted the GEM Listing Rules as its code of conduct for securities trading by directors, ensuring compliance with trading standards[160]. - The company did not separate the roles of Chairman and CEO, which is a deviation from the corporate governance code, but believes this arrangement serves the best interests of the group[155][156]. - The board reviews and updates corporate governance policies and practices annually to support the company's objectives[157]. - The company emphasizes the importance of ethical conduct, transparency, accountability, and integrity in all business operations[157].
NEXION TECH(08420) - 2023 - 年度财报